BlackLine (BL) 7 May 242024 Q1 Earnings call transcript

Good afternoon, and thank you for joining us today. With me on the call are Owen Ryan and Therese Tucker, Co-Chief Executive Officers of BlackLine as well as Mark Partin, Chief Financial Officer.

Before we get started, I would like to note that certain statements made during this conference call that are not historical facts, including those regarding our future plans, objectives and expected performance, in particular, our guidance for Q2 and full year 2024 and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

These forward-looking statements represent our outlook only as of the date of this call.

as forward-looking could during statements and uncertainties, differ on Commission, current our any reasonable, call are particular, including believe are in the our results and XX-Q. Securities our Form actual materially, expectations filed those we stated statements risks XX-K periodic the made are based subject in While to today reports and with of Form and Exchange these and

update and information, make We applicable our disclaim unless otherwise, expressly or do to noted. to a new alter comparisons on statements. obligation of except undertake relate year, today future otherwise the as whether we not call law. All by forward-looking period any corresponding last or the as result required events of

on versus stated, will our earnings in is financial Relations on measures our the Form Finally, our call on our or A of of disclosed X-K SEC website reconciliations non-GAAP may release, GAAP regarding Investor at which measures financial our these investors.blackline.com this discussion with otherwise historical filed results today. and non-GAAP be non-GAAP. found be available unless currently information

I to Executive Owen BlackLine's Owen? call the Officer, will Co-Chief turn Ryan. Now over

income. Thank everyone. operating margin quarter and today. expectations all in revenue, XX% non-GAAP Thank with total . a net and good the $XXX revenue $XX and you, Matt, in afternoon, for us first exceeded joining you BlackLine profitability million non-GAAP in million

more of achieve still and to are maturity. review are those are will early in stages seeing. implementing we we areas a operational that pleased progress, require identifying we While progress model, early success highlighting bit areas this new the time of our the with operating I

seeing activity sales top an are of at we our the in execution, Regarding plan. end uptick

this activity stabilization. improvement While lower the us we indications early demand of still gives in of some deal want, than is [indiscernible]

encountered several larger specifically, quarter multi-solution instances pushed out. In the where first we deals

purchasing prospects and behavior. customers their this, As maintaining see thoughtful part we still prudent and of

forward, jointly these pursue either opportunities or expect Going we partners. directly our with to aggressively

are around progressing efforts Next, brand and well. message elevating our market

AI attendees. which will to receiving our automation message, believe particularly interest. both our generating for positive our and accelerate innovation this strategy that differentiator innovation We and dominated as in partners, in is feedback where discussions customers with detail favorable and BeyondTheBlack accounting Therese the London, even drive among to a is are recent from customers. We here, during evidenced opportunity event stand meaningful around was intelligence industry-focused beginning deeper our shortly, and On artificial indicating AI, our finance that

that We customers, resonating opportunities who industry are seeing to numerous prospects, is their also signs our challenges. approach strongly partners industry-specific our address see with and

In has and garnered fact, accelerating because our approach are positive schedule. reception, deployment broadening such our we

made. with being commitment remains Our the promise BlackLine delivering steadfast progress on to

metrics efforts we and but external While our respect progress across in reflecting also customer see evolving, are base, like particularly to adoption engagement, still experience. these customer with areas

to opportunities while With BlackLine. move see pricing, additional along the it and later expect our that with to to easier refined and simultaneously embedded customers streamlined with approach value ROI business with this enhance year, solutions, innovation which making to a receive forward within do being we we

our powered pillars. our more transition progress we a we within in comprehensive Next, model. more especially towards solution distribution partners, engagement with notable as experiencing seeing efforts are partner are we Globally, our

are building seeing among in are their BlackLine, expanding a within with and payment instance, Also, shifting partners presentment with we unmet strategies invoice collaborating of in light to expressing our cash, interest or promises. interest practices For and our partners electronic particularly competitors invoicing offering.

for growth AI space opportunities. the in mutual align leaders out seeking actively also are Partners to

support of for our innovating also with align our market only but on focus the our in CFO to collective leadership. objectives, not confident are the stand We office differentiation will and

at aimed implementation initiatives model. programmatic initiatives various advancing our further of are with momentum have adoption new last enhancing and customer accelerated and gained the year These stickiness. we operating late retention, On

that an delivery. journey, As and are benefits better know at elevated the we of including start example, significant adoption engagement there value from a customer partner

As integrate our of the steps closely partners we outset to taken and have more at such, process. customers that

first our rates we slightly fell below tangible is While expectations, retention progress believe being made. quarter there

Our top on of customer significance as my key focus adoption one its underscores priorities.

additional our Officer, Jimmy veteran, to new to appointed Customer As spearhead industry ensure testaments and recently these engagement Chief our and company. remain partner as paramount commitment that our here, focus, Duan scrutiny efforts across we

to not our activity or due SAP. ERP that outdated pleased to an our in including many by would we Notably, mostly middle electric where see logos we automation company able burdened federal quarter. changes many BlackLine, technology, deal to was the processes driven journey. the Turning owned offer SAP by targeting, modern that one example, first like, way better the support space. too are In customer influenced partners oen partner new a within through and forward, market were is and were offered this that signed and to second of customer robust lower to a to trusted we of were partners, transformation utility additions net a our our key manual their federally while combination we government

leveraging global a SolEx In biotechnology again partnership competitive our a multi-solution deal, company. signed Europe, with we

finance selected As to an transformation. govern was standardize, and partner multiyear key serving BlackLine a critical their automate part processes, accounting and a replacement, during ERP of as

approach, grow. to phased they a support us needs provides their deal of additional as this opportunities part As

global there Also by Historically, landscape. by framework. has support a primary accounting partner tool which many in proper Europe, were executive finance the and their Xcel to ERP understood In level real attracting [ to technology Further, alleviating and net of to that concerns lack benefits both and effect, become modernizing controls have customer with unsustainable deal financial with new as choosing talent their ] leading retaining part their BlackLine. customer chemical processes, as signed a leveraged migration. manufacturer an we the of

in which and cash, invoice In wins we topical saw of solutions rate environment, interest solid some well. expansions set as to remains customer very today's a

to with Specifically, to initial purchase and an geographies additional their offering existing food they with further products cash invoice to such expanded business saw add company, a expand complete chose success lines. and we even our multinational customer who

expect to that our grow. time, We this will with customer over continue relationship

incumbent with exactly we financial processes. the the with saw of confidence customer both a middle a number looking trusted In what due to modern North to replacements a an solutions partner real the American one was of institution competitive replace office in close market, the driven to close and by consolidation instance, more a lack in and gave approach interest to BlackLine's sought leader. an vendor customer their a poor experience consolidation were the transformation a of and the CFO. for In

over it discuss to and to are With deliver to that, Therese drive how meaningful innovation for I continuing turn we Therese? our will customers.

Thank you, Owen.

continue a We As office challenges there in of the these . innovative CFO operations. need the be will firmly meeting results artificial rapidly to is evolve, intelligence believe will tangible needs within the solutions and accounting for business to modern critical integral finance deliver drive that outcomes. pivotal that and demands and become and

how on also strategy. moving new are introducing committed plan bring the office that to this what swiftly and the to in release support for execute our AI entails providing the are better AI-powered receive this into AI-driven This our from I only we life, our to customers. coming promises serve platform and they want leaders To doing to we BlackLine. over enhance not today of quarters to customers to value and solutions the greatly to CFO, are outline we platform market fulfill but integrating our an the As who our

financial mitigating a within our new we've close identifying the at In risks entry aimed journal recently process. pillar, introduced solution and

ERPs teams key related generative trends, to This fraud violations. insights dynamic address Risk policy present actionable insights visually and and subledger providing for journal to systems, assesses solution accounting journal Journal potential efficiently Our manual areas and detection with to from customers utilizes entries captures of and proactively entries. Analyzer AI anomaly various

volumes empower available and serves year. an landscape, large Currently this audit minimize across early spread generative decision-making tool solution and compliance later of technology customers' anticipate data to making the available we this to risk. informed generally our AI adopters, as invaluable Given

launching analytics documentation involved This their in are a summarizer. our consolidation and consolidation our solutions. represents customers' Next, repetitive financial and into close description current type within Integrated workflows tasks we account and to seamlessly enhancement and content. both during streamlines our productivity financial supporting generating of document BlackLine's summaries feature scanning and pillars, reconciliations autonomously concise of This processes. by any

for cut mitigating down significantly can time strengthening preparation while [ risk. on and customers potentially their close our controls ] their result, audit a As

This unveil a more Furthermore, and plan aimed cohesive statement a within financial our consolidated summarizing empowers at at generator, providing summarizer customers. and comprehensive footnote statement analyze data to automatically behavior we and insights. we're customers and pillar, developing and proactively consolidation of to [ enhancements a AI-powered suite Initially, financial different capable even of across analytics value top to key our comparisons time delivering financial ] periods. conduct a level

financial Additionally, material items. to footnotes the of creation statement imitate facilitate it will

for automation of in and the automated latter Looking forward, AI-generated account identify accounting and we feature This performance. of to year. explain the footnotes introduce these explanations to quickly drivers identify finance feature plan a offer utilize variance fluctuations, half financial and teams will

receivable forecasting XX% for we're upgraded Lastly, gearing unveil tool forecasting to up within pillar, version. enhanced up convert previous compared The our accounts insights, by cash tool our collection data enhancing to into customers significantly actionable forecast payment to to an empowers payment invoiced AI-powered customers. our accuracy

produce based release and queries. business on insights use that Further, we modern to language transform are drive into processing data to ability finance and for for responses is natural like also and case powerful technologies working predictive a decisions tool accounting features our guidance language teams AI. a real The to natural visual

additional enabler, as automation any Undoubtedly, stands and delivering capable a organizational within powerful efficiency accelerating of framework. AI

and Recognizing be we it equally when it's companies to committed technology. deliberate core unfamiliar, financial of this of to the that especially undeniable into operations. However, AI responsible this, are deployment a integrating apprehension comes

familiarity seek ensuring deeper our importantly, technological trust advancement a but customers. Our not customers' between to willingness with and balanced aligns cultivate approach that to the we bridge strategy adopt Through fosters human with our instill gap ability AI. aims most confidence to adoption, and only also and this,

orchestration to excited BlackLine that updated for accounting and the broader long-awaited Studio. platform solution unparalleled span the to release finance visibility, announce processes of and systems. we're to disparate accounting and enhanced third-party innovation, Shifting control has been offer ERP This

that visualize and its the time in right forward that captured Ensuring are the at BlackLine user-friendly Studio accounting order. processes the a efficiently. processes right and dependencies and control At and helps core, the is orchestrate solution move

entire strengths financial and This that library. API their and within the to gives with externally, customers our leveraging in of extensive One unique in integrating platform visualize market technology versatility various and is their today. its the BlackLine systems, ability something both key exist landscape, workflows its control doesn't integration across

With the can this indispensable transformation of their technology customers solution, or the through of of we teams their supports Regardless CFO and become stage strategy journey. how that office for the evolves. partner every one

mentioned the an and opportunities innovation second, As in nature deliver from value; configurable value the that that plan solutions we and earlier, a highlighting that are moving we Owen To cases to industries these we industries, utility leveraging of strategy. perspective, we are building our flight: can initiatives deploy rapidly go-to-market high to this, users to and are enhancements in maximizing our and we identify First, others to our customer-specific third, within software, new community X industries. support challenges are unique; are software's of benefit industry-focused have use current

developing these strengthening high-frequency to commitment of our financial a industries solution services account This retail for specifically unique tailored approach also the our targeted are reconciliation we needs addressing industries. broader efforts. example, go-to-market the while demonstrates For and

not efforts. last these a many partner announced is charged than Jeremy Jeremy I drive supporting that with Ung, least, before. but Officer, And leading agenda and Chief certainly will and we faster hired we closely recently to and Technology who further new innovation our of

further the helping time spend innovation. and One on BlackLine use like on of exploring cases customer-centric the and AI technology studio customers innovation, adopting industry-specific benefits more of our I can that leader for on hiring using progress is a like-minded accounting on

more Before gets finance like I even say how that I'm accounting would that about immensely work achievements opportunities excited close, have far, the of proud our we I I to to team's done. reshape am ahead and thus and

I'd will financial like and guidance. turn who results updated Partin, Mark it to Mark? that, over With review financial our to

you, Thank Therese.

aggressively disciplined drivers, remain this, efficiency as the approach especially our business. both our committed our of opportunities pursuing growth environment Our long-term financial well to results to quarter this innovation. highlight invest our productivity of parts strategic we higher the Further, levels business navigate to as we even as support we to and across drive business ongoing continue transition. market expect to current into Despite

review million, quarter detail. revenue in that progress with With on XX%. grew more the revenue mind, up partner-driven to a financial first for our model. Total X%, subscription XX% declined Services bit revenue the let's in results growing primarily to $XXX services delivery due

was growth X%, billings trailing of billings Calculated XX%. XX-month growth with

which annual Owen of lower-than-expected we number XX%. recurring of We mentioned, million, RPO, quarter, slipped $XXX X% or driver this was Remaining closed performance. As of the experienced billings or ARR, quarter the larger a revenue, performance growing deals current RPO with with total XX%. a was up obligations, up

quarter, total by in Net bringing to X,XXX. XX increased the new count customers our customer

in the more become in term. the to is to middle metric influence expected market targeted strategy this near our previously, discussed As

XX%. renewal Our was the rate quarter revenue first in

seeing cost or still XXX% customers, and NRR, the adds by growth with Net retention especially recurring such line within primarily from themes here, modest consolidation and quarter. as was account our discipline expectations, vendor user driven and rate, are enterprise. in We this

new that influenced Strategic large involved product XX% were early multi-solution these deals represented as attached, deal in a our higher involvement range deals quarter of mix slippage and is gaining approach partner large strategic sales This to intercompany. this many deals, was below partner Partners by with products but XX% traction. in new were of our with indications of came positive of some of us powered giving expansion quarter target particularly in and XX% XX%. this performance

below a by deal revenue, was In primarily year. expectations, slippage. XX% increase partnership represented versus driven of slight revenue SAP performance total last QX, SolEx

margin. to Turning

margin. especially cloud Non-GAAP operating gross revenue organization. this with across combined along teams was with non-GAAP net again. Our outperformance, net gains, non-GAAP and net who efficiency margin XX%, interest spend margin technology subscription XX% favorable with bottom and the was product to on attributable due drive Operating BlackLine of from our a to agility XX%, line non-GAAP Non-GAAP margin yet $XX income representing continue was productivity to gross quarter. leverage income million, drove income XX% income performance, benefiting within strength better-than-expected

in cash in was flow in cash cash better-than-expected of of $XX We margin flow free the cash flow free million cash our quarter. this generated $XX a quarter flow million performance. XX%. and operating driver collections a Record with key

and cash, the securities. ended marketable $X.X we billion with Finally, quarter in cash equivalents

to also of maturities. when convertible On Our strong financial convertible addressing they mature we expect invest point, year. our while position to affords X August near-term us our the this strategically ability retire XXXX this cash notes on in

I Now first a and model, the quarter. economic approach our continue on remind rollout to recent in everyone that our the guidance, we considering factors want broader operating and disciplined thoughtful to of take performance

As our guidance, net non-GAAP such, of we our raising revenue operating and are full raising non-GAAP ranges. the year margin also full while midpoint year income

rate. will revenue an point that year Finally, to growth full revenue X expect we our to services headwind continue be approximate

XXXX, representing of in X% to $XXX of be approximately million million, the range XX% expect to quarter total the second growth. for $XXX we revenue to Now GAAP

non-GAAP expect to share to be we a to in XX.X% margin $XX or million be per of $XX to to a income expect And on range We non-GAAP XX.X%. of operating to attributable in net million basis. BlackLine $X.XX $X.XX a range

million Our to share be weighted average diluted approximately shares. is XX expected count

of We follows: million guidance to revenue full X% our million as $XXX.X the $XXX.X be for expect year XX% updated And the is to growth. XXXX, GAAP representing in total range to

share in expect to on million income And expect to in BlackLine we basis. $XXX to a be or range We per of non-GAAP range to net margin operating attributable of to XX.X% $X.XX $XXX the $X.XX non-GAAP million be the to XX.X%.

to shares. expected weighted is million average count approximately share be XX.X diluted Our

I'll With the take now operator your and the open to that, questions. discussion ask

One you. Thank we roster. moment while compile Q&A the

comes line of question Oliver from first the Rob The Baird. of

one is first my Mark, you. for

guys. quarter on the Just for you bit in deal about strongest I traditionally you is quarter. a -- QX the slippage never little mean, the talk Can

close wondering less to deals say, us was I or is a and customers sort bit So and of into partner SAP. of insight much give incremental going less pull general of that just this to how from your macro some versus through, deeper weakness you are little spending confidence if could from

follow-up. I quick then had And a

year team of with the pipeline, they're we in that sales working now. are Remainder That's and deals. on staying on where driving fact the and actively are our The our focused them. customers those we

for your deals through So is the question continue that those today. to pipeline move

answer. bit talk When as part work the me ] and first now Could things kind And your of partnership been arrival. about not back bit I I'm revamping because some if little [ you with sure wanted a And be the -- the was and sales, SIs have of me. I you're of anniversary it your go-to-market you look to we I that stuff. just the laid it some little initiatives. just strategic wanted whether then a Great. want of move Owen, to and SAP your step the out, doing and at missed

most and that we Where more do made even work have as this year maybe manifest you feel progress through we could activity versus where you've to the you see in move where do? still

Rob. of A Thanks, Sure. things. couple

a we amount is over like one our progress year. tremendous the think last we with partners of I made feel

through our focused as way partners good this products of working with I resources from the the we've the you, we what a we're all think rationalized indication it's taken I'll in them solution are of That work partners strategic committed really our we've itself really number the think has with of and a with one shared we're to scrip, to much do. share a time done have I again, take trying being we As competitor. partners redeployed who to work have in. working our But XX that the basically one and recently will its BlackLine story its of versus offshore to on for system. not

So like the successful probably I'd we've area I made where been amount feel of for. say that's the greatest really

I around improve The is the product grow we think SAP. be second to which road the to relationship would win continues terrific. just opportunities together, continue the marketplace make with our rates in the really map, progress to

and industry last started it Mark on and And in had something bit, would be keep our recognize the you very maybe sorry, to dive we it. thing in touched the give on telling I'll a really stories. And and I when industry have touched another then a one. portfolio -- look Therese We knew we customer that compelling again, at we little story.

So I'm you out -- most for all a for the big third an sure you may that companies hire typically. know RFP, when they're all write they party to firms, going RFP

through we and and writing And so not the going of ago, overseas, too probably we for of firm. the spent long eye-opening with who consulting way major RFP industry XX top the enterprise. for provider I were And customers industry probably sort in meeting think, this this in one firms an write helps global was, these prepare how was consulting Therese service that particular the were and to its story RFP helping a I this telling a about hour and company, BlackLine

are is starting BlackLine to winner we customers next it's RFP year, first As the through industry aspects -- differentiator. of it that customer and We're were which a needs able to a high I the we're have what here we a accomplish. firm, trying company particular comes is in help quarter degree How for in language of whether or could to big industry I a all making be our X a speaking the of today, way do in of articulate the confidence for to speak year the language, when very what to their this sit quarters going the difference this fourth gets of selected, a out

The next line the question comes of Quintero Chris from Morgan of Stanley.

And And Do live taking to a if have then impact to of so, a this pricing making? got expect be? And I've that follow-up. approach that mentioned you what right? will you the you're I are year. Owen, these more changes streamlined later what you do changes go

things. A Yes. couple of

for about over of the of that for step most study think come this to us succeeding are with over is at work renewals them work we particular platform years, based. of our important it of the had things couple in this point make of sort some simpler completed and them. I feedback rolling back we've as user we'll pricing sort more of that fuller are easier but ahead be were us up So what for price and the And usage gotten asking go course to to out our us of and year from time. a and some offer, think and based, with do we more customers

what drive. of lot a on focused that's been to So we have trying

the I and with think results pretty we that to of We've overall, seeing of work. we several customers validate experiencing. sort tested feel about it prospects were hundred good what and

get we'll very again also we're against marketplace. environment rolled go certain doing very, in so out to that companies the it these with against And have compete we we soon. up And management important. still are as where things change in them Obviously, an

But delivering, you feel -- we for been that's to you they're be work done. about the good this to can overall, that what more able and ultimately that's you're like And do. product outcome. we charge the the expect so ultimately, do We

I our upon that's the feedback customers, think to from articulate to value how lot we've learned customers. and our a based our about

that we'll we sure done. So make get

margin it. And Is XX%. we think really that nature anything the helpful. of see about flow to in number? cash how the the really And free Got flow for of rest maybe onetime That's free for Mark, year? cash there conversion great impacting should

Yes.

from effort QX, that I really a job everyone. think the AR did an team excellent in was collecting great

think or the flow through margin margin free see cash around year, at rate. operating our move we we'll As I

like don't to AR expect that. from I So generation our continue cash

come will remainder of through down the year. it So the here

JPMorgan. from comes question from next of line Bora The Pinjalim the

This is below Jaden little for Pinjalim. came ARR expectations. in bit a

you those those, QX? got certain that close do percentage that Is deals? there's will deals any way And pushed large was in think to there that quantify mentioned out. a You of there

and them It's -- Pinjalim. of slipped already remainder some of those will deals. have around more quarter-to-quarter. have Thanks, deals Yes, we to the ways, our our to well as earlier around ability as talked our get think move to operating some Yes, we we'll We in we continue uncommon saw our I model in in operating work our through the has With from QX. through as And new not arms those in macro about to deals close with year remarks, the QX related large new the on model. being year. strengthened

So would quantifying be at the it, difficult think I moment.

So thanks.

Our next Goldman of question of line Adam the comes Hotchkiss Sachs. from

folks I for usage within an give on get office in think this customer to and is you focus guess the to AI Does about product continuing within been for your just just the I around and in in AI that CFO. you something the the start, customers focus usage the platform of context know base. could such that I'm of, things us the particular, the more you curious in past, being educate that's update drive aspect around platform? and efforts? the to how your existing of of of cross-sell education you But doing sort a foot success allow door with you're a opportunities your

Adam. Thanks,

customer-centric our sure organization actually a can entire lot the of on last is spent have BlackLine We making focused that that the value in deliver. year, and time

They been recurring during fair prospects our a what of as education features entailing in well are together. map programs there's new received going of road that where training As got our that a number have that, customers And webinars events on a and customers. know customers by number the on make as amount get being different really to well result sure bottom person of include happens extremely both that that of we've is those. line we a

them. And will use the transform actually where its corresponding BlackLine well, with practices, then finance -- take accounting help and because when Academy events, is BlackLine consulting really different result transformation. there's processes the people digital also we them

to can workshops get on hands-on use these transform knowledge are really so customers our to deep their attempt BlackLine And organizations. how to that

push has received last it's the it well customers. been and a big over So been ours our of by very year,

thinking of And then helpful, monetizing context, context really as broadly AI investments, particularly some to think value of worth the improvements That's customers, about do you been ensure usage-based [ you be within investments productivity the some seat think ]? the that Therese. are about that pricing have within going of you your these how might how these or AI extracting that bring you're you

of including best enhancements imagine software free. one for that something Well, it the the productivity is about sticky. giving things cannot People that's more up becomes

Okay.

extracting me, sort love out are the I stickiness that's for And really for worth factor. somebody. places than where So more the dollar we of another AI. of that's And embedding

jobs you more Loved Ventana, everywhere Rob really was said cuts. Just it be and where go accurate. productivity right? their think I are AI to X,XXX by who can Kugel make it, introduce faster of like where people doing manually, things

I the becomes So just in what our customers part, we fabric and it of the embedding them makes of to delighted. part offer think

came us sort XX our early Journal's more new of learning way of we're just terms that already than products, Analyzer. And Risk determine out still is, receiving In with the We got up and we're the what them adopters we've here. will it. to And that they are determine help how use that. that going for to signed to help value us price

question of comes of line next Piper the The Sandler. Brent from Bracelin

just you you around how X the you that visibility much today start pipeline in to QX. build I versus with get and months? characterize But pipeline deals some months in can there in uncommon not I slipped, the the are last saw ago, Mark, build wanted three

company. I can. leaders Thank you, Brent. in We've the got of a great new handful

QX. of marketing running pipeline coming our out already them instrumental One been has to and of is accelerate and and beginning QX into

with So influence that funnel big QX, we in would top end what is good deals having pipeline multiproduct talked really being say of partners. about the I strong, about the the

was ability deals to Our challenged. in close QX those

now customers that move and those QX, accounts, we of expanding team. and hold to nurture middle of part of line in lot spending new finish the then the time is to new to up creating As sales rest get has end our to of a we're on new heading Emily and into quite and of a effort ability logos, where our them customer the globe sort over is the the the concerted actually here QX. into across picked And base with nicely, them

And go you. priority as Obviously, headwinds. last clearly the economic couple transformation the down back for projects. a If seen pandemic these color. maybe, of ago, Good kind macro finance drove Therese, X.X of spend priority from I years, years then in go around higher on the we've people a focused

at in transformation? looking not S/XHANA to with the tailwind trying you drive more you've around some some just think these excited little XXXX. SAP the through catalyst that that increasing as been finance pandemic, starting saw catalyst transformation of challenged thinking next through for think that the and Just maybe headwinds you macro migrations I on end increased of be in to around could to projects. the about cloud. or could a the . Do now priority know potential an maybe the side finance priority are a We life get is

had focuses continue is deliver results in they've value invest that point, But finance have we that of especially time, it's could particular, we wrestle certainly and of that at with people And digital gotten potential as hoped the one focused see really bring CFOs S/XHANA. our and way been do a Well, one makes they well. that can to always how more. the the that in same actually very raised Companies, But you partnership kind really a with BlackLine we that journey with Brent, sort interesting us, migrations SAP on been of transformation. the to for. it's not want the

So of communicate a to how better digital that opposed as our is, with prospects customers have that with think I to and do disappoints. how we on our effective transformation finance part it result

on road people trainings, around different So been finance that's do driving internally we're around of that we really have digital journey. itself doing how that is transformation the work about and them we lot a studies, and a even a to deliver case thinking that's engaged way lot, academy, going product the keep in map around that keep the

think and the move It can itself. S/XHANA. to That's the for we I I with think appreciate people prove work We has certainly to So macro do to disappointing hoping especially in there's of out then our potential, ourselves the partnership always get we're customers. better value great And proposition do SAP. to that as better.

of The Bank America. next comes of Koji line from question the Ikeda of

I got two.

the So release the on there. big first quite milestone. accounting Congrats long-awaited one, on studio. a know question I that's picture

buyers buy what there question is a to in assume to it platform this has past is before new So new BlackLine really your meaningful the that packed it? partners really the all change I the around studio digest is such they're that require the ready could innovation and out to offered accounting into the

We've of digestion. there, product And so going a been out know as really partners need to of Koji? a time part with I for cool don't working process the ton getting they're of that

the have at partners specific I the one accounting very process of transformation library will are that a it our think our of studio, property for embed with experts into their opportunity potential intellectual templates. to who plans is

Okay.

to Now would course, and with work that partner. the utilize in have they it, on order of to actually turn

And so expertise our for bringing a to of very forum quickly. customers is -- partners it's to give lot really their accounting of the a the studio idea really

to steps But overall, some we and their necessary. I some detail keeping that various APIs go. Now we've think take the planning work them and as been out may on part informed actually the

software ready for market out of question the Got it. found how end spoken at be is the the to generative Got is or their accountants really market market some resistant like I And very time. AI. pinned the and Therese, also end sound to ready Mark, it. I've over generative but it kind does can to of to is Owen that another change can vendors, for how your adopt end And same that can or loyal ready there around you, really maybe very with to demand be years the AI? be

acceptance overall AI curious of there? just the So out thoughts your generative on on

generative true. am we're the approach I is are different taking familiar that features they embedding so our of that that don't we and with Boy, are and buyers, It's our love XXX% market change. the with why to that We're with going the them our in AI as by that base. you turn have and trust of to flags useful, way, all building off. way incredibly customer allow just use a they

a time, a them little them over on more. the in can little make here, journey. words, by familiar increase more build a We're that we we're So it more there, more other little then embedding trust, taking and their and productivity and

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Walravens from JMP. The Citizens line next question Pat of the of comes

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comes BTIG. Matt from the question last of line The VanVliet from

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conclude like to call over back hand Q&A does the to portion. the now That I Ryan. would Owen

Thank thank of as following to And a day. Thank you. and talking your Take soon. the joining everyone, to us We today. appreciate operator, for forward and rest you care. you, questions great Have call you, a look company. we Bye-bye. the

you conclude today's your conference. the does program. in This for participation Thank

now may disconnect. You