BlackLine, Inc. (Nasdaq: BL), today announced financial results for
the second quarter ended June 30, 2024.
“BlackLine delivered solid results this quarter,
exceeding our revenue and profitability expectations, while
continuing to generate robust free cash flow,” said Owen Ryan,
co-CEO of BlackLine. “Our teams are relentlessly pursuing higher
levels of operational excellence, aligned to our strategy and
driven by our customer-focused operating model.”
“Our commitment to delivering value for the
Office of the CFO is unwavering,” said Therese Tucker, co-CEO of
BlackLine. “By developing and offering increasingly advanced
solutions and capabilities, including those powered by AI, we are
committed to solving the complex problems our customers face today.
At the same time, we are equipping them with the tools and insights
needed to solve tomorrow’s challenges, ensuring they are
well-prepared for future growth and success.”
Second Quarter 2024 Financial
Highlights
- Total GAAP revenues
of $160.5 million, an increase of 11% compared to the second
quarter of 2023.
- GAAP operating
margin of 1.4%, compared to 12.4%1 in the second quarter of
2023.
- Non-GAAP operating
margin of 19.8%, compared to 13.4% in the second quarter of
2023.
- GAAP net income
attributable to BlackLine of $76.7 million, or $0.222 per diluted
share compared to GAAP net income attributable to BlackLine of
$30.8 million or $0.45 per diluted share in the second quarter of
2023.
- Non-GAAP net income
attributable to BlackLine of $42.9 million or $0.58 per diluted
share compared to non-GAAP net income attributable to BlackLine of
$30.7 million or $0.41 per diluted share in the second quarter of
2023.
- Operating cash flow
of $40.7 million, compared to $24.6 million in the second quarter
of 2023.
- Free cash flow of
$34.4 million, compared to $18.0 million in the second quarter of
2023.
Second Quarter Key Metrics and Recent
Business Highlights
- Added 24 net new
customers in the second quarter for a total of 4,435 customers at
June 30, 2024.
- Expanded the
Company’s user base to 396,366 users at June 30, 2024.
- Achieved a
dollar-based net revenue retention rate of 104% at June 30,
2024.
- Repaid in full, the
Company’s $250.0 million 2024 convertible senior notes.
- Announced that
Financial Reporting Analytics will be sold as an SAP Solution
Extension.
- Named as a leader
in two categories in a new finance and accounting platforms report
by Information Services Group (ISG).
- Announced and
closed a private offering of $675.0 million 2029 convertible
senior notes and concurrent repayment of $919.8 million of
existing 2026 convertible senior notes.
The financial results included in this press
release are preliminary and subject to final review. Financial
results will not be final until BlackLine files its Quarterly
Report on Form 10-Q for the period. Information about BlackLine’s
use of non-GAAP financial measures is provided below under “Use of
Non-GAAP Financial Measures.”
________________________1 Reflects $25.5 million
reversal of expense due to the decrease in the fair value of
contingent consideration.2 Excludes the after-tax impact of the
gain on extinguishment of debt associated with the partial
repurchase of the 2026 convertible senior notes.
Financial Outlook
Third Quarter 2024
- Total GAAP revenue
is expected to be in the range of $162 million to $164
million.
- Non-GAAP operating
margin is expected to be in the range of 19.0% to 20.0%.
- Non-GAAP net income
attributable to BlackLine is expected to be in the range of $38
million to $40 million, or $0.49 to $0.52 per share on 77.0 million
diluted weighted average shares outstanding.
Full Year 2024
- Total GAAP revenue
is expected to be in the range of $647.0 million to $651.0
million.
- Non-GAAP operating
margin is expected to be in the range of 18.0% to 19.0%.
- Non-GAAP net income
attributable to BlackLine is expected to be in the range of $158
million to $168 million, or $2.08 to $2.21 per share on 76.1
million diluted weighted average shares outstanding.
Guidance for non-GAAP operating margin, non-GAAP
net income attributable to BlackLine, and non-GAAP net income
attributable to BlackLine per share excludes specified items from
the corresponding GAAP financial measures as outlined below under
“Use of Non-GAAP Financial Measures” and as detailed in the
reconciliations of non-GAAP measures for historical periods.
Reconciliations of non-GAAP operating margin, non-GAAP net income
attributable to BlackLine, and non-GAAP net income attributable to
BlackLine per share guidance to the most directly comparable U.S.
GAAP measures are not available on a forward-looking basis without
unreasonable efforts due to the unpredictability and complexity of
the charges excluded from these non-GAAP financial measures. The
Company expects the variability of the above items could have a
significant, and potentially unpredictable, impact on its future
GAAP operating margin, net income attributable to BlackLine, and
net income attributable to BlackLine per share.
Quarterly Conference Call
BlackLine will hold a conference call to discuss
its second quarter results at 2:00 p.m. Pacific time on Tuesday,
August 6, 2024. A live audio webcast will be accessible on
BlackLine’s investor relations website at
https://investors.blackline.com. Participants can preregister for
the conference call. A replay of the webcast will be available at
https://investors.blackline.com for 12 months. BlackLine has used,
and intends to continue to use, its Investor Relations website as a
means of disclosing material non-public information and for
complying with its disclosure obligations under Regulation FD.
About BlackLine
Companies come to BlackLine (Nasdaq: BL) because
their traditional manual accounting and finance processes are not
sustainable. BlackLine’s market-leading cloud platform and customer
service help companies move to modern accounting by unifying their
data and processes, automating repetitive work, and driving
accountability through visibility. BlackLine provides solutions to
manage and automate financial close, intercompany accounting,
invoice-to-cash, and consolidation processes, inspiring, powering,
and guiding large enterprises and midsize businesses on their
digital finance transformation journeys.
More than 4,400 customers trust BlackLine to
help them close faster with complete and accurate results. The
Company is the pioneer of the cloud financial close market and is
recognized as the leader by customers at leading end-user review
sites including G2 and TrustRadius. BlackLine is a global company
with operations in major business centers including Los Angeles,
New York, the San Francisco Bay area, London, Paris, Frankfurt,
Tokyo, Sydney, Bangalore and Singapore.
For more information, please visit
blackline.com.
Forward-looking Statements
This release and the conference call referenced
above contain forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. In some cases,
you can identify forward-looking statements by terminology such as
“may,” “will,” “should,” “could,” “expect,” “plan,” anticipate,”
“believe,” “estimate,” “predict,” “intend,” “potential,” “would,”
“continue,” “ongoing” or the negative of these terms or other
comparable terminology. Forward-looking statements in this release
and quarterly conference call include, but are not limited to,
statements regarding BlackLine’s future financial and operational
performance, including, without limitation, GAAP and non-GAAP
guidance for the third quarter and full year of 2024, the impact of
progress against certain key initiatives, our expectations for our
business, including the demand environment, BlackLine’s addressable
market, market position and pipeline, our international growth, and
our relationships with our customers and partners, including
opportunities to expand those relationships.
Any forward-looking statements contained in this
press release or the quarterly conference call are based upon
BlackLine’s historical performance and its current plans, estimates
and expectations and are not a representation that such plans,
estimates, or expectations will be achieved. Forward-looking
statements are based on information available at the time those
statements are made and/or management’s good faith beliefs and
assumptions as of that time with respect to future events, and are
subject to risks and uncertainties. If any of these risks or
uncertainties materialize or if any assumptions prove incorrect,
actual performance or results may differ materially from those
expressed in or suggested by the forward-looking statements. These
risks and uncertainties include, but are not limited to risks
related to the Company’s ability to attract new customers and
expand sales to existing customers; the extent to which customers
renew their subscription agreements or increase the number of
users; the impact of current and future economic uncertainty and
other unfavorable conditions in the Company's industry or the
global economy, the Company’s ability to manage growth and scale
effectively, including entry into new geographies; the Company’s
ability to provide successful enhancements, new features and
modifications to its software solutions; the Company’s ability to
develop new products and software solutions and the success of any
new product and service introductions; the Company's ability to
effectively incorporate artificial intelligence and machine
learning technologies (AI/ML) into its platform and business and
the potential reputational harm or legal liability that may result
from the use of AI/ML solutions and features; the success of the
Company’s strategic relationships with technology vendors and
business process outsourcers, channel partners and alliance
partners; any breaches of the Company’s security measures; a
disruption in the Company’s hosting network infrastructure; costs
and reputational harm that could result from defects in the
Company’s solution; the loss of any key employees; continued strong
demand for the Company’s software in the United States, Europe,
Asia Pacific, and Latin America; the Company’s ability to compete
as the financial close management provider for organizations of all
sizes; the timing and success of solutions offered by competitors;
including competitors' ability to incorporate AI/ML into products
and offerings more quickly or successfully; changes in the
proportion of the Company’s customer base that is comprised of
enterprise or mid-sized organizations; the Company’s ability to
expand and effectively manage its sales teams and their performance
and productivity; fluctuations in our financial results due to long
and increasingly variable sales cycles, failure to protect the
Company’s intellectual property; the Company’s ability to integrate
acquired businesses and technologies successfully or achieve the
expected benefits of such transactions; unpredictable and uncertain
macro and regional economic conditions; seasonality; changes in
current tax or accounting rules; cyber attacks and the risk that
the Company’s security measures may not be sufficient to secure its
customer or confidential data adequately; acts of terrorism or
other vandalism, war or natural disasters including the effects of
climate change; the impact of any determination of deficiencies or
weaknesses in our internal controls and processes; and other risks
and uncertainties described in the other filings we make with the
Securities and Exchange Commission from time to time, including the
risks described under the heading “Risk Factors” in our Annual
Report on Form 10-K for the year ended December 31, 2023 filed with
the Securities and Exchange Commission on February 23, 2024.
Additional information will also be set forth in our Quarterly
Report on Form 10-Q for the quarter ended June 30, 2024.
Forward-looking statements should not be read as a guarantee of
future performance or results, and you should not place undue
reliance on such statements. Except as required by law, we do not
undertake any obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future developments or otherwise. All of the information in this
press release is subject to completion of our quarterly review
process.
Use of Non-GAAP Financial
Measures
To supplement its consolidated financial
statements, which are prepared and presented in accordance with
U.S. generally accepted accounting principles, or GAAP, BlackLine
has provided in this release and the quarterly conference call held
on August 6, 2024, certain financial measures that have not
been prepared in accordance with GAAP defined as “non-GAAP
financial measures,” which include (i) non-GAAP gross profit and
non-GAAP gross margin, (ii) non-GAAP operating expenses, (iii)
non-GAAP operating income (loss) and non-GAAP operating margin,
(iv) non-GAAP net income (loss) attributable to BlackLine, Inc. (v)
diluted non-GAAP net income (loss) attributable to BlackLine, Inc.
per share, and (v) free cash flow.
BlackLine’s management uses these non-GAAP
financial measures internally in analyzing its financial results
and believes they are useful to investors, as a supplement to the
corresponding GAAP measures, in evaluating BlackLine’s ongoing
operational performance and trends and in comparing its financial
measures with other companies in the same industry, many of which
present similar non-GAAP financial measures to help investors
understand the operational performance of their businesses.
However, it is important to note that the particular items
BlackLine excludes from, or includes in, its non-GAAP financial
measures may differ from the items excluded from, or included in,
similar non-GAAP financial measures used by other companies in the
same industry. Non-GAAP financial measures should not be considered
in isolation from, or as a substitute for, financial information
prepared in accordance with GAAP. Investors are encouraged to
review the reconciliation of these non-GAAP measures to their most
directly comparable GAAP financial measures. A reconciliation of
the non-GAAP financial measures to such GAAP measures has been
provided in the tables included as part of this press release.
Non-GAAP Gross Profit and Non-GAAP Gross
Margin. Non-GAAP gross profit is defined as GAAP revenues less
GAAP cost of revenue adjusted for amortization of acquired
developed technology, stock-based compensation, and
transaction-related costs (including, but not limited to,
accounting, legal, and advisory fees related to the transaction, as
well as transaction-related retention bonuses). Non-GAAP gross
margin is defined as non-GAAP gross profit divided by GAAP
revenues. BlackLine believes that presenting non-GAAP gross profit
and non-GAAP gross margin is useful to investors as it eliminates
the impact of certain non-cash expenses and allows a direct
comparison between periods.
Non-GAAP Operating Expenses. Non-GAAP operating
expenses include (a) non-GAAP sales and marketing expense, (b)
non-GAAP research and development expense and (c) non-GAAP general
and administrative expense. Non-GAAP sales and marketing expense is
defined as GAAP sales and marketing expense adjusted for
amortization of intangible assets, stock-based compensation, and
transaction-related costs. Non-GAAP research and development
expense is defined as GAAP research and development expense
adjusted for stock-based compensation and transaction-related
costs. Non-GAAP general and administrative expense is defined as
GAAP general and administrative expense adjusted for amortization
of intangible assets, stock-based compensation, change in fair
value of contingent consideration, transaction-related costs, and
legal settlement gains or costs. BlackLine believes that presenting
each of the non-GAAP operating expenses is useful to investors as
it eliminates the impact of certain cash and non-cash expenses and
allows a direct comparison of operating expenses between
periods.
Non-GAAP Income (Loss) from Operations and
Non-GAAP Operating Margin. Non-GAAP income (loss) from operations
is defined as GAAP income (loss) from operations adjusted for
amortization of intangible assets, stock-based compensation, change
in fair value of contingent consideration, transaction-related
costs, legal settlement gains or costs and restructuring costs.
Non-GAAP operating margin is defined as non-GAAP income (loss) from
operations divided by GAAP revenues. The Company believes that
presenting non-GAAP income (loss) from operations and non-GAAP
operating margin is useful to investors as it eliminates the impact
of items that have been impacted by the Company’s acquisitions and
other related costs in order to allow a direct comparison of income
(loss) from operations between all periods presented.
Non-GAAP Net Income (Loss) Attributable to
BlackLine and Diluted Non-GAAP Net Income (Loss) Attributable to
BlackLine, Inc. Per Share. Non-GAAP net income (loss) attributable
to BlackLine is defined as GAAP net income (loss) attributable to
BlackLine adjusted for the impact of the provision for (benefit
from) income taxes related to acquisitions, amortization of
intangible assets, stock-based compensation, amortization of debt
issuance costs from our convertible notes, change in fair value of
contingent consideration, transaction-related costs, legal
settlement gains or costs, restructuring costs, adjustment to the
redeemable non-controlling interest to the redemption amount, and
gain on extinguishment of convertible senior notes. Diluted
non-GAAP net income (loss) attributable to BlackLine, Inc. per
share includes the adjustment for shares resulting from the
elimination of stock-based compensation. The Company believes that
presenting non-GAAP net income (loss) attributable to BlackLine is
useful to investors as it eliminates the impact of items that have
been impacted by the Company’s acquisitions and other related costs
to allow a direct comparison of net income (loss) between all
periods presented.
Free Cash Flow. Free cash flow is defined as
cash flows provided by (used in) operating activities less cash
flows used to purchase property and equipment, financed and
otherwise, capitalized software development, and intangible assets.
BlackLine believes that presenting free cash flow is useful to
investors as it provides a measure of the Company’s liquidity used
by management to evaluate the amount of cash generated by the
Company’s business including the impact of purchases of property
and equipment and cost of capitalized software development.
Use of Operating Metrics
BlackLine has provided in this release and the
quarterly conference call held on August 6, 2024 certain
operating metrics, including (i) number of customers, (ii) number
of users, and (iii) dollar-based net revenue retention rate, which
BlackLine uses to evaluate its business, measure its performance,
identify trends affecting its business, formulate financial
projections and make strategic decisions. These operating metrics
exclude the impact of certain Runbook licensed customers and users
who are on perpetual license agreements and did not have an active
subscription agreement with BlackLine as of June 30, 2024.
Dollar-based Net Revenue Retention Rate.
Dollar-based net revenue retention rate is calculated as the
implied monthly subscription and support revenue at the end of a
period for the base set of customers from which the Company
generated subscription revenue in the year prior to the
calculation, divided by the implied monthly subscription and
support revenue one year prior to the date of calculation for that
same customer base. This calculation does not reflect implied
monthly subscription and support revenue for new customers added
during the one-year period but does include the effect of customers
who terminated during the period. Implied monthly subscription and
support revenue is defined as the total amount of minimum
subscription and support revenue contractually committed to, under
each of BlackLine’s customer agreements over the entire term of the
agreement, divided by the number of months in the term of the
agreement. BlackLine believes that dollar-based net revenue
retention rate is an important metric to measure the long-term
value of customer agreements and the Company’s ability to retain
and grow its relationships with existing customers over time.
Number of Customers. A customer is defined as a
company that contributes to our subscription and support revenue as
of the measurement date. In situations where an organization has
multiple subsidiaries or divisions, each entity that is invoiced as
a separate entity is treated as a separate customer. In an instance
where an existing customer requests its invoice be divided for the
sole purpose of restructuring its internal billing arrangement
without any incremental increase in revenue, such customer
continues to be treated as a single customer. BlackLine believes
that its ability to expand its customer base is an indicator of the
Company’s market penetration and the growth of its business.
Number of Users. Historically, BlackLine’s
products were priced based on the number of users of its platform.
Over time, the Company has begun to sell an increasing number of
non-user based products with fixed or transaction-based pricing.
For this reason, we believe the growth in the number of total users
is less correlated to the growth of the business overall.
Media Contact:Samantha Darilek
samantha.darilek@blackline.com
Investor Relations Contact:Matt Humphries,
CFAmatt.humphries@blackline.com
|
|
|
BlackLine, Inc. |
|
Condensed Consolidated Balance Sheets |
|
(in thousands) |
|
(unaudited) |
| |
June 30, 2024 |
|
December 31, 2023 |
|
ASSETS |
| Current assets: |
|
|
|
|
Cash and cash equivalents |
$ |
616,629 |
|
|
$ |
271,117 |
|
|
Marketable securities |
|
428,461 |
|
|
|
933,355 |
|
|
Accounts receivable, net of allowances |
|
137,439 |
|
|
|
171,608 |
|
|
Prepaid expenses and other current assets |
|
27,677 |
|
|
|
31,244 |
|
|
Total current assets |
|
1,210,206 |
|
|
|
1,407,324 |
|
|
Capitalized software development costs, net |
|
40,873 |
|
|
|
37,828 |
|
|
Property and equipment, net |
|
11,791 |
|
|
|
14,867 |
|
|
Intangible assets, net |
|
68,665 |
|
|
|
79,056 |
|
|
Goodwill |
|
448,965 |
|
|
|
448,965 |
|
|
Operating lease right-of-use assets |
|
18,245 |
|
|
|
19,173 |
|
|
Other assets |
|
91,937 |
|
|
|
93,552 |
|
|
Total assets |
$ |
1,890,682 |
|
|
$ |
2,100,765 |
|
| |
|
LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST, AND
STOCKHOLDERS' EQUITY |
| Current liabilities: |
|
|
|
|
Accounts payable |
$ |
2,083 |
|
|
$ |
8,623 |
|
|
Accrued expenses and other current liabilities |
|
51,924 |
|
|
|
59,690 |
|
|
Deferred revenue, current |
|
311,256 |
|
|
|
320,133 |
|
|
Finance lease liabilities, current |
|
469 |
|
|
|
778 |
|
|
Operating lease liabilities, current |
|
4,035 |
|
|
|
4,108 |
|
|
Convertible senior notes, net, current |
|
249,888 |
|
|
|
249,233 |
|
|
Total current liabilities |
|
619,655 |
|
|
|
642,565 |
|
|
Finance lease liabilities, noncurrent |
|
— |
|
|
|
4 |
|
|
Operating lease liabilities, noncurrent |
|
14,426 |
|
|
|
15,738 |
|
|
Convertible senior notes, net, noncurrent |
|
890,979 |
|
|
|
1,140,608 |
|
|
Deferred tax liabilities, net |
|
5,017 |
|
|
|
6,394 |
|
|
Deferred revenue, noncurrent |
|
1,979 |
|
|
|
904 |
|
|
Other long-term liabilities |
|
795 |
|
|
|
3,608 |
|
|
Total liabilities |
|
1,532,851 |
|
|
|
1,809,821 |
|
| Commitments and
contingencies |
|
|
|
| Redeemable non-controlling
interest |
|
32,068 |
|
|
|
30,063 |
|
| Stockholders' equity: |
|
|
|
|
Common stock |
|
622 |
|
|
|
615 |
|
|
Additional paid-in capital |
|
451,737 |
|
|
|
474,863 |
|
|
Accumulated other comprehensive income (loss) |
|
(561 |
) |
|
|
205 |
|
|
Accumulated deficit |
|
(126,035 |
) |
|
|
(214,802 |
) |
|
Total stockholders' equity |
|
325,763 |
|
|
|
260,881 |
|
|
Total liabilities, redeemable non-controlling interest, and
stockholders' equity |
$ |
1,890,682 |
|
|
$ |
2,100,765 |
|
|
|
|
BlackLine, Inc. |
|
Condensed Consolidated Statements of
Operations |
|
(in thousands, except per share data) |
|
(unaudited) |
| |
Quarter Ended |
|
Six Months Ended |
| |
June 30, |
|
June 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Revenues |
|
|
|
|
|
|
|
|
Subscription and support |
$ |
151,787 |
|
|
$ |
135,881 |
|
|
$ |
301,288 |
|
|
$ |
266,307 |
|
|
Professional services |
|
8,719 |
|
|
|
8,693 |
|
|
|
16,679 |
|
|
|
17,251 |
|
|
Total revenues |
|
160,506 |
|
|
|
144,574 |
|
|
|
317,967 |
|
|
|
283,558 |
|
| Cost of revenues |
|
|
|
|
|
|
|
|
Subscription and support |
|
33,756 |
|
|
|
30,630 |
|
|
|
65,808 |
|
|
|
59,142 |
|
|
Professional services |
|
6,592 |
|
|
|
6,486 |
|
|
|
13,637 |
|
|
|
13,245 |
|
|
Total cost of revenues |
|
40,348 |
|
|
|
37,116 |
|
|
|
79,445 |
|
|
|
72,387 |
|
| Gross profit |
|
120,158 |
|
|
|
107,458 |
|
|
|
238,522 |
|
|
|
211,171 |
|
| Operating expenses |
|
|
|
|
|
|
|
|
Sales and marketing |
|
60,248 |
|
|
|
62,749 |
|
|
|
121,359 |
|
|
|
124,680 |
|
|
Research and development |
|
25,721 |
|
|
|
26,802 |
|
|
|
50,736 |
|
|
|
53,907 |
|
|
General and administrative |
|
31,053 |
|
|
|
(148 |
) |
|
|
61,099 |
|
|
|
28,828 |
|
|
Restructuring costs |
|
928 |
|
|
|
135 |
|
|
|
1,372 |
|
|
|
1,149 |
|
|
Total operating expenses |
|
117,950 |
|
|
|
89,538 |
|
|
|
234,566 |
|
|
|
208,564 |
|
| Income from operations |
|
2,208 |
|
|
|
17,920 |
|
|
|
3,956 |
|
|
|
2,607 |
|
| Other income (expense) |
|
|
|
|
|
|
|
|
Interest income |
|
14,065 |
|
|
|
12,542 |
|
|
|
29,425 |
|
|
|
23,207 |
|
|
Interest expense |
|
(2,089 |
) |
|
|
(1,470 |
) |
|
|
(3,558 |
) |
|
|
(2,925 |
) |
|
Gain on extinguishment of convertible senior notes |
|
65,112 |
|
|
|
— |
|
|
|
65,112 |
|
|
|
— |
|
| Other income, net |
|
77,088 |
|
|
|
11,072 |
|
|
|
90,979 |
|
|
|
20,282 |
|
| Income before income
taxes |
|
79,296 |
|
|
|
28,992 |
|
|
|
94,935 |
|
|
|
22,889 |
|
| Provision for income
taxes |
|
4,337 |
|
|
|
926 |
|
|
|
5,206 |
|
|
|
1,554 |
|
| Net income |
|
74,959 |
|
|
|
28,066 |
|
|
|
89,729 |
|
|
|
21,335 |
|
| Net income attributable to
redeemable non-controlling interest |
|
524 |
|
|
|
320 |
|
|
|
962 |
|
|
|
405 |
|
| Adjustment attributable to
redeemable non-controlling interest |
|
(2,255 |
) |
|
|
(3,103 |
) |
|
|
1,248 |
|
|
|
2,089 |
|
| Net income attributable to
BlackLine, Inc. |
$ |
76,690 |
|
|
$ |
30,849 |
|
|
$ |
87,519 |
|
|
$ |
18,841 |
|
| Basic net income per share
attributable to BlackLine, Inc. |
$ |
1.24 |
|
|
$ |
0.51 |
|
|
$ |
1.42 |
|
|
$ |
0.31 |
|
| Shares used to calculate basic
net income per share |
|
61,979 |
|
|
|
60,700 |
|
|
|
61,811 |
|
|
|
60,445 |
|
| Diluted net income per share
attributable to BlackLine, Inc. |
$ |
0.22 |
|
|
$ |
0.45 |
|
|
$ |
0.39 |
|
|
$ |
0.30 |
|
| Shares used to calculate
diluted net income per share |
|
72,522 |
|
|
|
71,801 |
|
|
|
72,708 |
|
|
|
71,801 |
|
|
|
|
BlackLine, Inc. |
|
Condensed Consolidated Statements of Cash
Flows |
|
(in thousands) |
|
(unaudited) |
| |
Quarter Ended |
|
Six Months Ended |
| |
June 30, |
|
June 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Cash flows from operating
activities |
|
|
|
|
|
|
|
| Net income attributable to
BlackLine, Inc. |
$ |
76,690 |
|
|
$ |
30,849 |
|
|
$ |
87,519 |
|
|
$ |
18,841 |
|
| Net income and adjustment
attributable to redeemable non-controlling interest |
|
(1,731 |
) |
|
|
(2,783 |
) |
|
|
2,210 |
|
|
|
2,494 |
|
| Net income |
|
74,959 |
|
|
|
28,066 |
|
|
|
89,729 |
|
|
|
21,335 |
|
| Adjustments to reconcile net
income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
12,652 |
|
|
|
12,346 |
|
|
|
25,300 |
|
|
|
24,350 |
|
|
Change in fair value of contingent consideration |
|
— |
|
|
|
(25,535 |
) |
|
|
— |
|
|
|
(22,429 |
) |
|
Amortization of debt issuance costs |
|
1,294 |
|
|
|
1,379 |
|
|
|
2,679 |
|
|
|
2,741 |
|
|
Stock-based compensation |
|
22,726 |
|
|
|
19,948 |
|
|
|
41,288 |
|
|
|
40,386 |
|
|
Gain on extinguishment of convertible senior notes |
|
(65,112 |
) |
|
|
— |
|
|
|
(65,112 |
) |
|
|
— |
|
|
Noncash lease expense |
|
1,552 |
|
|
|
1,694 |
|
|
|
3,110 |
|
|
|
3,192 |
|
|
Accretion of purchase discounts on marketable securities, net |
|
(6,719 |
) |
|
|
(8,249 |
) |
|
|
(15,261 |
) |
|
|
(15,768 |
) |
|
Net foreign currency (gains) losses |
|
(195 |
) |
|
|
429 |
|
|
|
(157 |
) |
|
|
902 |
|
|
Deferred income taxes |
|
(214 |
) |
|
|
135 |
|
|
|
(1,255 |
) |
|
|
(52 |
) |
|
Provision for (benefit from) credit losses |
|
7 |
|
|
|
(24 |
) |
|
|
7 |
|
|
|
(19 |
) |
| Changes in operating assets
and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
(11,701 |
) |
|
|
(9,465 |
) |
|
|
33,995 |
|
|
|
20,701 |
|
|
Prepaid expenses and other current assets |
|
5,488 |
|
|
|
1,312 |
|
|
|
3,524 |
|
|
|
(3,956 |
) |
|
Other assets |
|
(797 |
) |
|
|
(72 |
) |
|
|
1,609 |
|
|
|
395 |
|
|
Accounts payable |
|
249 |
|
|
|
3,436 |
|
|
|
(6,543 |
) |
|
|
(6,082 |
) |
|
Accrued expenses and other current liabilities |
|
3,878 |
|
|
|
(2,574 |
) |
|
|
(10,896 |
) |
|
|
(13,227 |
) |
|
Deferred revenue |
|
4,028 |
|
|
|
2,845 |
|
|
|
(7,802 |
) |
|
|
1,025 |
|
|
Operating lease liabilities |
|
(1,531 |
) |
|
|
(1,858 |
) |
|
|
(3,241 |
) |
|
|
(3,512 |
) |
|
Lease incentive receipts |
|
— |
|
|
|
240 |
|
|
|
— |
|
|
|
240 |
|
|
Other long-term liabilities |
|
134 |
|
|
|
498 |
|
|
|
149 |
|
|
|
(2,804 |
) |
|
Net cash provided by operating activities |
|
40,698 |
|
|
|
24,551 |
|
|
|
91,123 |
|
|
|
47,418 |
|
| Cash flows from investing
activities |
|
|
|
|
|
|
|
|
Purchases of marketable securities |
|
(101,143 |
) |
|
|
(413,874 |
) |
|
|
(396,104 |
) |
|
|
(725,120 |
) |
|
Proceeds from maturities of marketable securities |
|
268,800 |
|
|
|
364,500 |
|
|
|
591,500 |
|
|
|
693,300 |
|
|
Proceeds from sales of marketable securities |
|
324,098 |
|
|
|
— |
|
|
|
324,098 |
|
|
|
— |
|
|
Capitalized software development costs |
|
(5,637 |
) |
|
|
(5,439 |
) |
|
|
(12,087 |
) |
|
|
(12,318 |
) |
|
Purchases of property and equipment |
|
(677 |
) |
|
|
(1,153 |
) |
|
|
(976 |
) |
|
|
(2,829 |
) |
|
Net cash provided by (used in) investing activities |
|
485,441 |
|
|
|
(55,966 |
) |
|
|
506,431 |
|
|
|
(46,967 |
) |
| Cash flows from financing
activities |
|
|
|
|
|
|
|
|
Proceeds from issuance of convertible senior notes, net of issuance
costs |
|
662,641 |
|
|
|
— |
|
|
|
662,641 |
|
|
|
— |
|
|
Partial repurchase of convertible senior notes |
|
(848,519 |
) |
|
|
— |
|
|
|
(848,519 |
) |
|
|
— |
|
|
Purchase of capped calls related to convertible senior notes |
|
(59,738 |
) |
|
|
— |
|
|
|
(59,738 |
) |
|
|
— |
|
|
Principal payments under finance lease obligations |
|
(258 |
) |
|
|
(244 |
) |
|
|
(516 |
) |
|
|
(485 |
) |
|
Proceeds from exercises of stock options |
|
2,324 |
|
|
|
9,509 |
|
|
|
2,638 |
|
|
|
11,920 |
|
|
Proceeds from employee stock purchase plan |
|
4,249 |
|
|
|
5,291 |
|
|
|
4,249 |
|
|
|
5,291 |
|
|
Acquisition of common stock for tax withholding obligations |
|
(1,403 |
) |
|
|
(1,019 |
) |
|
|
(12,384 |
) |
|
|
(13,422 |
) |
|
Net cash provided by (used in) financing activities |
|
(240,704 |
) |
|
|
13,537 |
|
|
|
(251,629 |
) |
|
|
3,304 |
|
| Effect of foreign currency
exchange rate changes on cash, cash equivalents, and restricted
cash |
|
(209 |
) |
|
|
(166 |
) |
|
|
(421 |
) |
|
|
(207 |
) |
| Net increase (decrease) in
cash, cash equivalents, and restricted cash |
|
285,226 |
|
|
|
(18,044 |
) |
|
|
345,504 |
|
|
|
3,548 |
|
| Cash, cash equivalents, and
restricted cash, beginning of period |
|
331,641 |
|
|
|
222,799 |
|
|
|
271,363 |
|
|
|
201,207 |
|
| Cash, cash equivalents, and
restricted cash, end of period |
$ |
616,867 |
|
|
$ |
204,755 |
|
|
$ |
616,867 |
|
|
$ |
204,755 |
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| Reconciliation of cash, cash
equivalents, and restricted cash to the consolidated balance
sheets |
|
|
|
|
|
| Cash and cash equivalents at
end of period |
$ |
616,629 |
|
|
$ |
204,514 |
|
|
$ |
616,629 |
|
|
$ |
204,514 |
|
| Restricted cash included
within other assets at end of period |
|
238 |
|
|
|
241 |
|
|
|
238 |
|
|
|
241 |
|
| Total cash, cash equivalents,
and restricted cash at end of period shown in the consolidated
statements of cash flows |
$ |
616,867 |
|
|
$ |
204,755 |
|
|
$ |
616,867 |
|
|
$ |
204,755 |
|
|
|
|
BlackLine, Inc. |
|
Reconciliations of Non-GAAP Financial
Measures |
|
(in thousands, except percentages and per share
data) |
|
(unaudited) |
| |
Quarter Ended |
|
Six Months Ended |
| |
June 30, |
|
June 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Non-GAAP Gross
Profit: |
|
|
|
|
|
|
|
| Gross profit |
$ |
120,158 |
|
|
$ |
107,458 |
|
|
$ |
238,522 |
|
|
$ |
211,171 |
|
| Amortization of acquired
developed technology |
|
3,383 |
|
|
|
2,980 |
|
|
|
6,767 |
|
|
|
5,929 |
|
| Stock-based compensation |
|
3,653 |
|
|
|
3,273 |
|
|
|
6,249 |
|
|
|
6,070 |
|
| Transaction-related costs |
|
38 |
|
|
|
174 |
|
|
|
90 |
|
|
|
387 |
|
| Total non-GAAP gross
profit |
$ |
127,232 |
|
|
$ |
113,885 |
|
|
$ |
251,628 |
|
|
$ |
223,557 |
|
| Gross margin |
|
74.9 |
% |
|
|
74.3 |
% |
|
|
75.0 |
% |
|
|
74.5 |
% |
| Non-GAAP gross margin |
|
79.3 |
% |
|
|
78.8 |
% |
|
|
79.1 |
% |
|
|
78.8 |
% |
| |
|
|
|
|
|
|
|
| Non-GAAP Operating
Income: |
|
|
|
|
|
|
|
| Operating income |
$ |
2,208 |
|
|
$ |
17,920 |
|
|
$ |
3,956 |
|
|
$ |
2,607 |
|
| Amortization of intangible
assets |
|
5,195 |
|
|
|
5,134 |
|
|
|
10,391 |
|
|
|
10,219 |
|
| Stock-based compensation |
|
23,406 |
|
|
|
20,451 |
|
|
|
42,602 |
|
|
|
41,334 |
|
| Change in fair value of
contingent consideration |
|
— |
|
|
|
(25,535 |
) |
|
|
— |
|
|
|
(22,429 |
) |
| Transaction-related costs |
|
(6 |
) |
|
|
1,219 |
|
|
|
210 |
|
|
|
2,009 |
|
| Restructuring costs |
|
928 |
|
|
|
135 |
|
|
|
1,372 |
|
|
|
1,149 |
|
| Total non-GAAP
operating income |
$ |
31,731 |
|
|
$ |
19,324 |
|
|
$ |
58,531 |
|
|
$ |
34,889 |
|
| GAAP operating margin |
|
1.4 |
% |
|
|
12.4 |
% |
|
|
1.2 |
% |
|
|
0.9 |
% |
| Non-GAAP operating margin |
|
19.8 |
% |
|
|
13.4 |
% |
|
|
18.4 |
% |
|
|
12.3 |
% |
| |
|
|
|
|
|
|
|
| Non-GAAP Net Income
Attributable to BlackLine, Inc.: |
|
|
|
|
|
|
|
| Net income attributable to
BlackLine, Inc. |
$ |
76,690 |
|
|
$ |
30,849 |
|
|
$ |
87,519 |
|
|
$ |
18,841 |
|
| Provision for income
taxes |
|
2,902 |
|
|
|
286 |
|
|
|
2,319 |
|
|
|
105 |
|
| Amortization of intangible
assets |
|
5,195 |
|
|
|
5,134 |
|
|
|
10,391 |
|
|
|
10,219 |
|
| Stock-based compensation |
|
23,292 |
|
|
|
20,364 |
|
|
|
42,377 |
|
|
|
41,104 |
|
| Amortization of debt issuance
costs |
|
1,294 |
|
|
|
1,379 |
|
|
|
2,679 |
|
|
|
2,741 |
|
| Change in fair value of
contingent consideration |
|
— |
|
|
|
(25,535 |
) |
|
|
— |
|
|
|
(22,429 |
) |
| Transaction-related costs |
|
(6 |
) |
|
|
1,219 |
|
|
|
210 |
|
|
|
2,009 |
|
| Restructuring costs |
|
928 |
|
|
|
135 |
|
|
|
1,372 |
|
|
|
1,149 |
|
| Adjustment to redeemable
non-controlling interest |
|
(2,255 |
) |
|
|
(3,103 |
) |
|
|
1,248 |
|
|
|
2,089 |
|
| Gain on extinguishment of
convertible senior notes |
|
(65,112 |
) |
|
|
— |
|
|
|
(65,112 |
) |
|
|
— |
|
| Total non-GAAP net
income attributable to BlackLine, Inc. |
$ |
42,928 |
|
|
$ |
30,728 |
|
|
$ |
83,003 |
|
|
$ |
55,828 |
|
| |
|
|
|
|
|
|
|
| Basic non-GAAP net
income attributable to BlackLine, Inc. per share: |
|
|
|
|
|
|
|
| Basic non-GAAP net income
attributable to BlackLine, Inc. per share |
$ |
0.69 |
|
|
$ |
0.51 |
|
|
$ |
1.34 |
|
|
$ |
0.92 |
|
| Shares used to calculate basic
non-GAAP net income per share |
|
61,979 |
|
|
|
60,700 |
|
|
|
61,811 |
|
|
|
60,445 |
|
| |
|
|
|
|
|
|
|
| Diluted non-GAAP net
income attributable to BlackLine, Inc. |
|
|
|
|
|
|
|
| Diluted non-GAAP net income
attributable to BlackLine, Inc. per share |
$ |
0.58 |
|
|
$ |
0.41 |
|
|
$ |
1.11 |
|
|
$ |
0.75 |
|
| Shares used to calculate
diluted non-GAAP net income per share |
|
75,411 |
|
|
|
74,502 |
|
|
|
75,145 |
|
|
|
74,178 |
|
| |
|
|
|
|
|
|
|
| |
Quarter Ended |
|
Six Months Ended |
| |
June 30, |
|
June 30, |
| |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Non-GAAP Sales and
Marketing Expense: |
|
|
|
|
|
|
|
| Sales and marketing
expense |
$ |
60,248 |
|
|
$ |
62,749 |
|
|
$ |
121,359 |
|
|
$ |
124,680 |
|
| Amortization of intangible
assets |
|
(1,734 |
) |
|
|
(1,676 |
) |
|
|
(3,467 |
) |
|
|
(3,335 |
) |
| Stock-based compensation |
|
(6,629 |
) |
|
|
(6,182 |
) |
|
|
(12,423 |
) |
|
|
(12,665 |
) |
| Transaction-related costs |
|
(54 |
) |
|
|
(206 |
) |
|
|
(21 |
) |
|
|
(191 |
) |
| Total non-GAAP sales
and marketing expense |
$ |
51,831 |
|
|
$ |
54,685 |
|
|
$ |
105,448 |
|
|
$ |
108,489 |
|
| |
|
|
|
|
|
|
|
| Non-GAAP Research and
Development Expense: |
|
|
|
|
|
|
|
| Research and development
expense |
$ |
25,721 |
|
|
$ |
26,802 |
|
|
$ |
50,736 |
|
|
$ |
53,907 |
|
| Stock-based compensation |
|
(3,499 |
) |
|
|
(3,708 |
) |
|
|
(6,350 |
) |
|
|
(7,532 |
) |
| Transaction-related costs |
|
106 |
|
|
|
(772 |
) |
|
|
(65 |
) |
|
|
(1,278 |
) |
| Total non-GAAP
research and development expense |
$ |
22,328 |
|
|
$ |
22,322 |
|
|
$ |
44,321 |
|
|
$ |
45,097 |
|
| |
|
|
|
|
|
|
|
| Non-GAAP General and
Administrative Expense: |
|
|
|
|
|
|
|
| General and administrative
expense |
$ |
31,053 |
|
|
$ |
(148 |
) |
|
$ |
61,099 |
|
|
$ |
28,828 |
|
| Amortization of intangible
assets |
|
(78 |
) |
|
|
(478 |
) |
|
|
(157 |
) |
|
|
(955 |
) |
| Stock-based compensation |
|
(9,625 |
) |
|
|
(7,288 |
) |
|
|
(17,580 |
) |
|
|
(15,067 |
) |
| Change in fair value of
contingent consideration |
|
— |
|
|
|
25,535 |
|
|
|
— |
|
|
|
22,429 |
|
| Transaction-related costs |
|
(8 |
) |
|
|
(67 |
) |
|
|
(34 |
) |
|
|
(153 |
) |
| Total non-GAAP general
and administrative expense |
$ |
21,342 |
|
|
$ |
17,554 |
|
|
$ |
43,328 |
|
|
$ |
35,082 |
|
| |
|
|
|
|
|
|
|
| Total Non-GAAP
Operating Expenses |
$ |
95,501 |
|
|
$ |
94,561 |
|
|
$ |
193,097 |
|
|
$ |
188,668 |
|
| |
|
|
|
|
|
|
|
| Free Cash
Flow |
|
|
|
|
|
|
|
| Net cash provided by operating
activities |
$ |
40,698 |
|
|
$ |
24,551 |
|
|
$ |
91,123 |
|
|
$ |
47,418 |
|
| Capitalized software
development costs |
|
(5,637 |
) |
|
|
(5,439 |
) |
|
|
(12,087 |
) |
|
|
(12,318 |
) |
| Purchases of property and
equipment |
|
(677 |
) |
|
|
(1,153 |
) |
|
|
(976 |
) |
|
|
(2,829 |
) |
| Free cash
flow |
$ |
34,384 |
|
|
$ |
17,959 |
|
|
$ |
78,060 |
|
|
$ |
32,271 |
|
BlackLine (NASDAQ:BL)
過去 株価チャート
から 10 2024 まで 11 2024
BlackLine (NASDAQ:BL)
過去 株価チャート
から 11 2023 まで 11 2024
