BlackLine Announces Third Quarter Financial Results

LOS ANGELES, Nov. 03, 2022 (GLOBE NEWSWIRE) — BlackLine, Inc. (Nasdaq: BL), at the moment introduced monetary outcomes for the third quarter ended September 30, 2022.

“BlackLine reported solid financial results this quarter as customer demand for finance and accounting solutions that drive efficiency and automation remained healthy,” stated Marc Huffman, CEO of BlackLine. “Customers around the world continue to seek out ways to operate successfully in today’s market, and our innovative solutions have become more relevant than ever.” Huffman continued, “Our relentless focus on customer success, the strength and resiliency of our business model, and our proven market leadership reinforce our ability to succeed in the near-term while capturing the long-term opportunities ahead.”

Third Quarter 2022 Financial Highlights

• Total GAAP revenues of $134.3 million, a rise of 23% in comparison with the third quarter of 2021.
• GAAP internet loss attributable to BlackLine of $20.0 million, or $0.34 per weighted common share.
• Non-GAAP internet earnings attributable to BlackLine of $15.1 million or $0.21 per diluted weighted common share.
• Operating money stream of $24.2 million, a rise of 42% in comparison with the third quarter of 2021.
• Free money stream of $16.6 million, a rise of 69% in comparison with the third quarter of 2021.

Third Quarter Key Metrics and Recent Business Highlights

• Added 57 internet new clients within the third quarter for a complete of 4,060 clients at September 30, 2022.
• Expanded the corporate’s consumer base to 354,924 at September 30, 2022.
• Achieved a dollar-based internet income retention charge of 109% at September 30, 2022.
• Unveiled trade’s first Accounts Receivable Automation capabilities to ship real-time insights into buyer threat and progress alternatives primarily based on behavioral evaluation.
• Unveiled trade’s first ‘Tax Hyperautomation’ capabilities for Intercompany Financial Management.
• Received Tech Cares Award from TrustRadius for the third consecutive yr.

The monetary outcomes included on this press launch are preliminary and pending last evaluation. Financial outcomes won’t be last till BlackLine recordsdata its Quarterly Report on Form 10-Q for the interval. Information about BlackLine’s use of non-GAAP monetary measures is supplied under below “Use of Non-GAAP Financial Measures.”

Financial Outlook

Fourth Quarter 2022

• Total GAAP income is predicted to be within the vary of $138 million to $141 million.
• Non-GAAP internet earnings attributable to BlackLine is predicted to be within the vary of $11 million to $14 million, or $0.15 to $0.19 per share on 73.7 million diluted weighted common shares excellent.

Full Year 2022

• Total GAAP income is predicted to be within the vary of $521 million to $524 million.
• Non-GAAP internet earnings attributable to BlackLine is predicted to be within the vary of $32 million to $35 million, or $0.44 to $0.48 per share on 73.0 million diluted weighted common shares excellent.

Guidance for non-GAAP internet earnings attributable to BlackLine and non-GAAP internet earnings attributable to BlackLine per share doesn’t embody the influence of the supply for (profit from) earnings taxes associated to acquisitions, amortization of acquired intangible belongings, stock-based compensation, the amortization of debt low cost and issuance prices, the change in truthful worth of contingent consideration, transaction-related prices, the adjustment to the worth of the redeemable non-controlling curiosity to the redemption quantity, and the loss on extinguishment of convertible senior notes. Reconciliations of non-GAAP internet earnings attributable to BlackLine and non-GAAP internet earnings attributable to BlackLine per share steerage to essentially the most instantly comparable U.S. GAAP measures, or internet earnings (loss) attributable to BlackLine and internet earnings (loss) attributable to BlackLine per share, usually are not obtainable on a forward-looking foundation with out unreasonable efforts because of the unpredictability and complexity of the fees excluded from non-GAAP internet earnings attributable to BlackLine and non-GAAP internet earnings attributable to BlackLine per share. The firm expects the variability of the above adjustments may have a big, and probably unpredictable, influence on its future GAAP internet earnings (loss) attributable to BlackLine and internet earnings (loss) attributable to BlackLine per share.

Quarterly Conference Call

BlackLine, Inc. will maintain a convention name to debate its third quarter outcomes at 2:00 p.m. Pacific time on Thursday, November 3, 2022. A reside audio webcast can be accessible on BlackLine’s investor relations web site at https://investors.blackline.com. Participants can pre-register for the convention name. A replay of the webcast can be obtainable at https://investors.blackline.com for 12 months. BlackLine has used, and intends to proceed to make use of, its Investor Relations web site as a method of exposing materials private info and for complying with its disclosure obligations below Regulation FD.

About BlackLine

Companies come to BlackLine, Inc. (Nasdaq: BL) as a result of their conventional guide accounting processes usually are not sustainable. BlackLine’s cloud-based monetary operations administration platform and market-leading customer support assist firms transfer to trendy accounting by unifying their information and processes, automating repetitive work, and driving accountability via visibility. BlackLine gives options to handle and automate monetary shut, accounts receivable and intercompany accounting processes, serving to giant enterprises and midsize firms throughout all industries do accounting work higher, quicker and with extra management.

More than 4,000 clients belief BlackLine to assist them shut quicker with full and correct outcomes. The firm is the pioneer of the cloud monetary shut market and acknowledged because the chief by clients at main end-user evaluation websites together with Gartner Peer Insights, G2 and TrustRadius. BlackLine is a world firm with operations in main business facilities all over the world together with Los Angeles, New York, the San Francisco Bay space, London, Paris, Frankfurt, Tokyo, Singapore and Sydney.

For extra info, please go to blackline.com.

Forward-looking Statements

This launch and the convention name referenced above comprise forward-looking statements inside the which means of the Private Securities Litigation Reform Act of 1995. In some circumstances, you possibly can establish forward-looking statements by terminology equivalent to “may,” “will,” “should,” “could,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “intend,” “potential,” “would,” “continue,” “ongoing” or the damaging of those phrases or different comparable terminology. Forward-looking statements on this launch and quarterly convention name embody, however usually are not restricted to, statements concerning BlackLine’s future monetary and operational efficiency, together with, with out limitation, GAAP and non-GAAP steerage for the fourth quarter and full yr of 2022, our expectations for our business, together with the demand atmosphere, BlackLine’s addressable market, market place and pipeline, our worldwide progress, {our relationships} with our clients and companions, together with alternatives to increase these relationships, and our expectations concerning our acquisition of FourQ Systems, together with the market alternative and FourQ Systems’ contribution to our business and monetary outcomes.

Any forward-looking statements contained on this press launch or the quarterly convention name are primarily based upon BlackLine’s historic efficiency and its present plans, estimates and expectations and usually are not a illustration that such plans, estimates, or expectations can be achieved. Forward-looking statements are primarily based on info obtainable on the time these statements are made and/or administration’s good religion beliefs and assumptions as of that point with respect to future occasions, and are topic to dangers and uncertainties. If any of those dangers or uncertainties materialize or if any assumptions show incorrect, precise efficiency or outcomes might differ materially from these expressed in or steered by the ahead trying statements. These dangers and uncertainties embody, however usually are not restricted to dangers associated to the corporate’s capability to draw new clients and increase gross sales to current clients; the extent to which clients renew their subscription agreements or improve the variety of customers; the corporate’s capability to handle progress and scale successfully, together with further headcount and entry into new geographies; the corporate’s capability to supply profitable enhancements, new options and modifications to its software program options; the corporate’s capability to develop new merchandise and software program options and the success of any new product and repair introductions; the success of the corporate’s strategic relationships with expertise distributors and business course of outsourcers, channel companions and alliance companions; any breaches of the corporate’s safety measures; a disruption within the firm’s internet hosting community infrastructure; prices and reputational hurt that might consequence from defects within the firm’s answer; the lack of any key workers; the influence of the COVID-19 pandemic and associated measures taken by governments and personal trade; continued robust demand for the corporate’s software program within the United States, Europe, Asia Pacific and Latin America; the corporate’s capability to compete because the monetary shut administration supplier for organizations of all sizes; the timing and success of options provided by rivals; adjustments within the proportion of the corporate’s buyer base that’s comprised of enterprise or mid-sized organizations; the corporate’s capability to increase its enterprise and mid-market gross sales groups and successfully handle its gross sales forces and their efficiency and productiveness; fluctuations in our monetary outcomes attributable to lengthy and more and more variable gross sales cycles, failure to guard the corporate’s mental property; the corporate’s capability to combine acquired companies and applied sciences efficiently or obtain the anticipated advantages of such transactions; unpredictable and unsure macro and regional financial circumstances; seasonality; adjustments in present tax or accounting guidelines; cyber assaults and the danger that the corporate’s safety measures is probably not enough to safe its buyer or confidential information adequately; acts of terrorism or different vandalism, warfare or pure disasters together with the consequences of local weather change; the influence of any willpower of deficiencies or weaknesses in our inside controls and processes; and different dangers and uncertainties described within the different filings we make with the Securities and Exchange Commission occasionally, together with the dangers described below the heading “Risk Factors” in our Annual Report on Form 10-Ok for the yr ended December 31, 2021 filed with the Securities and Exchange Commission on February 25, 2022. Additional info can even be set forth in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2022. Forward-looking statements shouldn’t be learn as a assure of future efficiency or outcomes, and you shouldn’t place undue reliance on such statements. Except as required by regulation, we don’t undertake any obligation to publicly replace or revise any forward-looking assertion, whether or not because of new info, future developments or in any other case. All of the data on this press launch is topic to completion of our quarterly evaluation course of.

Use of Non-GAAP Financial Measures

To complement its consolidated monetary statements, that are ready and offered in accordance with U.S. usually accepted accounting ideas, or GAAP, BlackLine has supplied on this launch and the quarterly convention name held on November 3, 2022 sure monetary measures that haven’t been ready in accordance with GAAP outlined as “non-GAAP financial measures,” which embody (i) non-GAAP gross revenue and non-GAAP gross margin, (ii) non-GAAP working bills, (iii) non-GAAP earnings (loss) from operations, (iv) non-GAAP internet earnings (loss) attributable to BlackLine, Inc. (v) diluted non-GAAP internet earnings (loss) attributable to BlackLine, Inc. per share, and (v) free money stream.

BlackLine’s administration makes use of these non-GAAP monetary measures internally in analyzing its monetary outcomes and believes they’re helpful to traders, as a complement to the corresponding GAAP measures, in evaluating BlackLine’s ongoing operational efficiency and traits and in evaluating its monetary measures with different firms in the identical trade, lots of which current comparable non-GAAP monetary measures to assist traders perceive the operational efficiency of their companies. However, it is very important word that the actual objects BlackLine excludes from, or consists of in, its non-GAAP monetary measures might differ from the objects excluded from, or included in, comparable non-GAAP monetary measures utilized by different firms in the identical trade. Non-GAAP monetary measures shouldn’t be thought of in isolation from, or as an alternative choice to, monetary info ready in accordance with GAAP. Investors are inspired to evaluation the reconciliation of those non-GAAP measures to their most instantly comparable GAAP monetary measures. A reconciliation of the non-GAAP monetary measures to such GAAP measures has been supplied within the tables included as a part of this press launch.

Non-GAAP Gross Profit and Non-GAAP Gross Margin. Non-GAAP gross revenue is outlined as GAAP revenues much less GAAP value of income adjusted for the amortization of acquired developed expertise, transaction-related prices (together with, however not restricted to, accounting, authorized, and advisory charges associated to the transaction, in addition to transaction-related retention bonuses) and stock-based compensation. Non-GAAP gross margin is outlined as non-GAAP gross revenue divided by GAAP revenues. BlackLine believes that presenting non-GAAP gross margin is helpful to traders because it eliminates the influence of sure non-cash bills and permits a direct comparability of gross margin between durations.

Non-GAAP Operating Expenses. Non-GAAP working bills embody (a) non-GAAP gross sales and advertising expense, (b) non-GAAP analysis and growth expense and (c) non-GAAP normal and administrative expense. Non-GAAP gross sales and advertising expense is outlined as GAAP gross sales and advertising expense adjusted for the amortization of intangible belongings and stock-based compensation. Non-GAAP analysis and growth expense is outlined as GAAP analysis and growth expense adjusted for stock-based compensation. Non-GAAP normal and administrative expense is outlined as GAAP normal and administrative expense as adjusted for the amortization of intangible belongings, stock-based compensation, the change in truthful worth of contingent consideration, and transaction-related prices. BlackLine believes that presenting every of the non-GAAP working bills is helpful to traders because it eliminates the influence of sure money and non-cash bills and permits a direct comparability of working bills between durations.

Non-GAAP Income (Loss) from Operations. Non-GAAP earnings (loss) from operations is outlined as GAAP earnings (loss) from operations adjusted for the amortization of intangible belongings, stock-based compensation, the change in truthful worth of contingent consideration, and transaction-related prices. The firm believes that presenting non-GAAP earnings (loss) from operations is helpful to traders because it eliminates the influence of things which were impacted by the corporate’s acquisitions and different associated prices to be able to permit a direct comparability of loss from operations between all durations offered.

Non-GAAP Net Income (loss) attributable to BlackLine and Diluted Non-GAAP Net Income (loss) attributable to BlackLine, Inc. per share. Non-GAAP internet earnings (loss) attributable to BlackLine is outlined as GAAP internet earnings (loss) attributable to BlackLine adjusted for the influence of the supply for (profit from) earnings taxes associated to acquisitions, amortization of intangible belongings, stock-based compensation, the amortization of debt low cost and issuance prices from our convertible notes, the change within the truthful worth of contingent consideration, transaction-related prices, authorized settlement beneficial properties or prices, adjustment to the worth of the redeemable non-controlling curiosity to the redemption quantity, and loss on extinguishment of convertible senior notes. Diluted non-GAAP internet earnings attributable to BlackLine, Inc. per share consists of the adjustment for shares ensuing from the elimination of stock-based compensation. The Company believes that presenting non-GAAP internet earnings (loss) attributable to BlackLine is helpful to traders because it eliminates the influence of things which were impacted by the corporate’s acquisitions and different associated prices to be able to permit a direct comparability of internet loss between all durations offered.

Free Cash Flow. Free money stream is outlined as money flows supplied by (utilized in) working actions much less money flows used to buy property and tools, financed and in any other case, capitalized software program growth, and intangible belongings. BlackLine believes that presenting free money stream is helpful to traders because it gives a measure of the corporate’s liquidity utilized by administration to judge the amount of money generated by the corporate’s business together with the influence of purchases of property and tools and value of capitalized software program growth.

Media Contact:
Kimberly Uberti
[email protected]

Investor Relations Contact:
Matt Humphries, CFA
[email protected]

Use of Operating Metrics

BlackLine has supplied on this launch and the quarterly convention name held on November 3, 2022 sure working metrics, together with (i) variety of clients, (ii) variety of customers and (iii) dollar-based internet income retention charge, which BlackLine makes use of to judge its business, measure its efficiency, establish traits affecting its business, formulate monetary projections and make strategic selections. These working metrics exclude the influence of sure Runbook licensed clients and customers who’re on perpetual license agreements and didn’t have an lively subscription settlement with BlackLine as of September 30, 2022.

Dollar-based Net Revenue Retention Rate. Dollar-based internet income retention charge is calculated because the implied month-to-month subscription and help income on the finish of a interval for the bottom set of shoppers from which the corporate generated subscription income within the yr previous to the calculation, divided by the implied month-to-month subscription and help income one yr previous to the date of calculation for that very same buyer base. This calculation doesn’t replicate implied month-to-month subscription and help income for brand spanking new clients added throughout the one-year interval however does embody the impact of shoppers who terminated throughout the interval. Implied month-to-month subscription and help income is outlined as the overall quantity of minimal subscription and help income contractually dedicated to, below every of BlackLine’s buyer agreements over all the time period of the settlement, divided by the variety of months within the time period of the settlement. BlackLine believes that dollar-based internet income retention charge is a vital metric to measure the long-term worth of buyer agreements and the corporate’s capability to retain and develop its relationships with current clients over time.

Number of Customers. A buyer is outlined as an entity with an lively subscription settlement as of the measurement date. In conditions the place a corporation has a number of subsidiaries or divisions, every entity that’s invoiced as a separate entity is handled as a separate buyer. In an occasion the place an current buyer requests its bill be divided for the only goal of restructuring its inside billing association with none incremental improve in income, such buyer continues to be handled as a single buyer. BlackLine believes that its capability to increase its buyer base is an indicator of the corporate’s market penetration and the expansion of its business.

Number of Users. Historically, BlackLine’s merchandise have been priced primarily based on the variety of customers of its platform. Over time, the corporate has begun to promote an rising variety of non-user primarily based merchandise with fastened or transaction-based pricing. For this motive, we consider the expansion within the variety of complete customers is much less correlated to the expansion of the business general.

⁽¹⁾ Upon adoption of ASU 2020-06 on January 1, 2022, the Company prospectively utilized the if-converted methodology to calculate the influence of convertible devices on diluted earnings per share. In accordance with the adoption of ASU 2020-06 and utilizing the modified retrospective methodology, prior interval quantities haven’t been adjusted. The impact of the convertible devices is included within the calculation of earnings per share until the consequence could be antidilutive.