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BL - Blackline Inc News Story

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Sector
Technology
Size
Large Cap
Market Cap £4.55bn
Enterprise Value £4.50bn
Revenue £264.2m
Position in Universe 1242nd / 6938

BlackLine Announces First Quarter Financial Results

Thu 6th May, 2021 9:05pm
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LOS ANGELES, May 06, 2021 (GLOBE NEWSWIRE) -- BlackLine, Inc.
(https://www.globenewswire.com/Tracker?data=_0_2eSmPjDxuTDaRl8SH3-kZfx1aclG3WKE2MoUGCuEYPwzqV0jXqFToJDpfXVGQbKh7_4VQpRxBijD0yY2VAA==) (Nasdaq:
BL), today announced financial results for the first quarter ended March 31,
2021.

Marc Huffman, CEO, commented, “We had a strong start to the year as
companies increasingly prioritized digital finance transformation and turned
to BlackLine to guide their journeys. During the year end close period, with
the remote work environment continuing, BlackLine customers streamlined their
processes by using our platform to automate workflows. On a macro level, we
saw broad-based demand returning with increasing momentum across all areas of
the business. The value we bring to market is resonating now more than ever
and we believe our commitment to customer success will continue to serve as a
differentiator for BlackLine. ”

First Quarter 2021 Financial Highlights
* Total GAAP revenues of $98.9 million for the first quarter of 2021, an
increase of 20% compared to the first quarter of 2020.
* GAAP net loss attributable to BlackLine of $39.0 million, or $0.67 per
share, on 57.9 million weighted average shares outstanding, which compares to
a GAAP net loss attributable to BlackLine of $12.8 million in the first
quarter of 2020.
* Non-GAAP net income attributable to BlackLine of $7.1 million, or $0.11 per
share, on 62.9 million diluted weighted average shares outstanding. This
compares with non-GAAP net income attributable to BlackLine of $6.0 million in
the first quarter of 2020.
* Operating cash flow of $28.5 million, compared to $8.5 million in the first
quarter of 2020.
* Free cash flow of $23.2 million, compared to $4.9 million in the first
quarter of 2020.
Key Metrics and Recent Business Highlights
* Added 49 net new customers in the first quarter for a total of 3,482
customers at March 31, 2021.
* Expanded the company’s user base to 297,060 at March 31, 2021.
* Achieved a dollar-based net revenue retention rate of 106% at March 31,
2021.
* Released BlackLine AR Intelligence, an accounts receivable automation tool
that optimizes working capital and improves collections forecasting.
* Raised capital through the issuance of $1.15 billion of convertible debt.
* Ranked first for Financial Close software in the enterprise category for
G2’s list of the ‘Best Finance Products of 2021’.
* Received SAP EMEA North Award for Partner Excellence 2021 for Solution
Extension – Growth.
* Added Lisa Schreiber, SaaS and enterprise software veteran, as chief
customer officer.
* Appointed Apple inclusion and diversity executive, Barbara Whye, to
BlackLine’s Board of Directors.
The financial results included in this press release are preliminary and
pending 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.”

Financial Outlook

Second Quarter 2021
* Total GAAP revenue is expected to be in the range of $100.5 million to
$101.5 million.
* Non-GAAP net income attributable to BlackLine is expected to be in the range
of $4.5 million to $5.5 million, or $0.07 to $0.09 per share on 62.7 million
diluted weighted average shares outstanding.
Full Year 2021
* Total GAAP revenue is expected to be in the range of $415 million to $420
million.
* Non-GAAP net income attributable to BlackLine is expected to be in the range
of $27 million to $29 million, or $0.43 to $0.46 per share on 62.8 million
diluted weighted average shares outstanding.
Guidance for non-GAAP net income attributable to BlackLine and non-GAAP net
income attributable to BlackLine per share does not include the impact of the
provision for (benefit from) income taxes related to acquisitions,
amortization of acquired intangible assets, stock-based compensation, the
amortization of debt discount and issuance costs, the change in fair value of
contingent consideration, the loss on the extinguishment of convertible senior
notes, and the adjustment to the value of the redeemable non-controlling
interest to the redemption amount. Reconciliations of 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, or net
income (loss) attributable to BlackLine and net income (loss) attributable to
BlackLine per share, are not available on a forward-looking basis without
unreasonable efforts due to the unpredictability and complexity of the charges
excluded from non-GAAP net income attributable to BlackLine and non-GAAP net
income attributable to BlackLine per share. The company expects the
variability of the above changes could have a significant, and potentially
unpredictable, impact on its future GAAP net income (loss) attributable to
BlackLine and net income (loss) attributable to BlackLine per share.

Quarterly Conference Call

BlackLine, Inc. will hold a conference call to discuss its first quarter
results at 2:00 p.m. Pacific time on Thursday, May 6, 2021. A live audio
webcast will be accessible on BlackLine’s investor relations website at
https://investors.blackline.com. The call can also be accessed domestically at
(844) 229-7595 and internationally at (314) 888-4260, passcode 2598905. A
telephonic replay will be available through Thursday, May 13, 2021 at (855)
859-2056 or (404) 537-3406, passcode 2598905. 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, Inc. (Nasdaq: BL) because their traditional
manual accounting processes are not sustainable. BlackLine’s cloud-based
solutions and market-leading 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, accounts receivable and intercompany
accounting processes, helping large enterprises and midsize companies across
all industries do accounting work better, faster and with more control.

Nearly 3,500 customers trust BlackLine to help them close faster with complete
and accurate results. The company is the pioneer of the financial close market
and recognized as the leader by customers at leading end-user review sites
including Gartner Peer Insights, G2 and TrustRadius. Based in Los Angeles,
BlackLine also has regional headquarters in London, Singapore, and Sydney. For
more information, please visit blackline.com
(https://www.globenewswire.com/Tracker?data=s8DOfLG6MB-87YRiuxkbjzyl19DJuV_bl4-uzHk1WPfOj5kYaVeC8WOftZTLLRidtkDZr1AbLAJJKng8HRXUHg==)

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 second quarter and full year of 2021, our
expectations for our business, including the demand environment, BlackLine’s
addressable market, market position and pipeline, the impact of the COVID-19
pandemic on our business, our market and our industry, and our expectations
regarding our acquisition of Rimilia, including the market opportunity and
Rimilia’s contribution to our business and financial results.

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 company’s ability to manage growth and scale
effectively, including additional headcount and 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 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; the impact of the COVID-19 pandemic and related
measures taken by governments and private industry; 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; 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 its enterprise and mid-market sales teams and
effectively manage its sales forces 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; 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, 2020 filed with the Securities and
Exchange Commission on February 25, 2021. Additional information will also be
set forth in our Quarterly Report on Form 10-Q for the quarter ended March 31,
2021. 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 May 6, 2021 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 income (loss) from operations, (iv)
non-GAAP net income (loss) and non-GAAP net income (loss) per share, (v) and
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 revenues adjusted for the
amortization of acquired developed technology and stock-based compensation.
Non-GAAP gross margin is defined as non-GAAP gross profit divided by GAAP
revenues. BlackLine believes that presenting non-GAAP gross margin is useful
to investors as it eliminates the impact of certain non-cash expenses and
allows a direct comparison of gross margin 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 the
amortization of intangible assets and stock-based compensation. Non-GAAP
research and development expense is defined as GAAP research and development
expense adjusted for stock-based compensation. Non-GAAP general and
administrative expense is defined as GAAP general and administrative expense
as adjusted for the amortization of intangible assets, stock-based
compensation, and the change in fair value of contingent consideration.
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. Non-GAAP income (loss) from operations
is defined as GAAP income (loss) from operations adjusted for the amortization
of intangible assets, stock-based compensation, and the change in fair value
of contingent consideration. The company believes that presenting non-GAAP
income (loss) from operations 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 loss from
operations between all periods presented.

Non-GAAP Net Income (Loss) attributable to BlackLine. Non-GAAP net income
(loss) is defined as GAAP net income (loss) adjusted for the impact of the
provision for (benefit from) income taxes related to acquisitions,
amortization of intangible assets, stock-based compensation, the amortization
of debt discount and issuance costs from our convertibles notes, the change in
the fair value of contingent consideration, the loss on extinguishment of
convertible senior notes, and the adjustment to the value of the redeemable
non-controlling interest to the redemption amount. Non-GAAP diluted net income
(loss) per common share includes the adjustment for shares resulting from the
elimination of stock-based compensation.  The company believes that
presenting non-GAAP net income (loss) 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 net loss
between all periods presented.

Free Cash Flow. Free cash flow is defined as cash flows provided by operating
activities less cash flows used to purchase property and equipment, and
capitalized software development. 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 May 6, 2021 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 Runbook
licensed customers and users as these customers did not have an active
subscription agreement with BlackLine as of March 31, 2021.

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 an entity with an active
subscription agreement 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:
BlackLine
Kimberly Uberti
Kimberly.uberti@blackline.com

Investor Relations Contact:
BlackLine
Alexandra Geller
Alex.geller@blackline.com



 BlackLine, Inc.                                                                                                                                                                     
 Consolidated Balance Sheets                                                                                                                                                         
 (in thousands)                                                                                                                                                                      
 (unaudited)                                                                                                                                                                         
                                                                                                                                                                                     
                                                                                                    March 31, 2021                                        December 31, 2020          
 ASSETS                                                                                                                                                                              
 Cash and cash equivalents                                                                          $                848,268                              $       367,413            
 Marketable securities                                                                                               308,991                                      175,206            
 Accounts receivable, net of allowance                                                                               89,423                                       111,270            
 Prepaid expenses and other current assets                                                                           20,809                                       20,226             
 Total current assets                                                                                                1,267,491                                    674,115            
 Capitalized software development costs, net                                                                         17,858                                       15,690             
 Property and equipment, net                                                                                         12,512                                       13,239             
 Intangible assets, net                                                                                              43,781                                       46,674             
 Goodwill                                                                                                            289,710                                      289,710            
 Operating lease right-of-use assets                                                                                 8,634                                        8,708              
 Other assets                                                                                                        68,811                                       65,369             
 Total assets                                                                                       $                1,708,797                            $       1,113,505          
                                                                                                                                                                                     
 LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST, AND STOCKHOLDERS' EQUITY                                                                                                          
 Accounts payable                                                                                   $                3,365                                $       3,150              
 Accrued expenses and other current liabilities                                                                      33,420                                       35,958             
 Deferred revenue                                                                                                    193,429                                      191,137            
 Short-term portion of operating lease liabilities                                                                   4,136                                        4,147              
 Short-term portion of contingent consideration                                                                      13,888                                       7,938              
 Total current liabilities                                                                                           248,238                                      242,330            
 Operating lease liabilities                                                                                         7,215                                        7,356              
 Convertible senior notes, net                                                                                       1,066,352                                    407,032            
 Contingent consideration                                                                                            17,304                                       15,552             
 Deferred tax liabilities                                                                                            11,785                                       6,566              
 Deferred revenue, noncurrent                                                                                        116                                          75                 
 Total liabilities                                                                                                   1,351,010                                    678,911            
                                                                                                                                                                                     
 Redeemable non-controlling interest                                                                                 18,159                                       12,524             
                                                                                                                                                                                     
 Stockholders' equity:                                                                                                                                                               
 Common stock                                                                                                        580                                          577                
 Additional paid-in capital                                                                                          573,431                                      622,768            
 Accumulated other comprehensive income                                                                              295                                          376                
 Accumulated deficit                                                                                                 (234,678         )                           (201,651   )       
 Total stockholders' equity                                                                                          339,628                                      422,070            
                                                                                                                                                                                     
 Total liabilities, redeemable non-controlling interest, and stockholders' equity                   $                1,708,797                            $       1,113,505          

 

 BlackLine, Inc.                                                                                         
 Consolidated Statements of Operations                                                                   
 (in thousands, except per share data)                                                                   
 (unaudited)                                                                                             
                                                                                                         
                                                                   Quarter Ended                         
                                                                   March 31,                             
                                                                       2021                 2020         
 Revenues                                                                                                
 Subscription and support                                          $   91,655           $   77,035       
 Professional services                                                 7,201                5,563        
 Total revenues                                                        98,856               82,598       
 Cost of revenues                                                                                        
 Subscription and support                                              15,425               11,380       
 Professional services                                                 6,465                4,685        
 Total cost of revenues                                                21,890               16,065       
 Gross profit                                                          76,966               66,533       
 Operating expenses                                                                                      
 Sales and marketing                                                   48,429               44,785       
 Research and development                                              18,973               11,747       
 General and administrative                                            28,269               17,338       
 Total operating expenses                                              95,671               73,870       
 Loss from operations                                                  (18,705  )           (7,337   )   
 Other income (expense)                                                                                  
 Interest income                                                       94                   2,409        
 Interest expense                                                      (14,804  )           (5,685   )   
 Other expense, net                                                    (14,710  )           (3,276   )   
 Loss before income taxes                                              (33,415  )           (10,613  )   
 Provision for (benefit from) income taxes                             (191     )           357          
 Net loss                                                              (33,224  )           (10,970  )   
 Net loss attributable to non-controlling interest                     (197     )           (328     )   
 Adjustment attributable to non-controlling interest (a)               5,937                2,201        
 Net loss attributable to BlackLine, Inc. (a)                      $   (38,964  )       $   (12,843  )   
                                                                                                         
 Basic net loss attributable to BlackLine, Inc. per share:                                               
 Basic net loss attributable to BlackLine, Inc. per share (a)      $   (0.67    )       $   (0.23    )   
 Shares used to calculate basic net loss per share                     57,860               56,174       
 Diluted net loss attributable to BlackLine, Inc. per share:                                             
 Diluted net loss attributable to BlackLine, Inc. per share (a)    $   (0.67    )       $   (0.23    )   
 Shares used to calculate diluted net loss per share                   57,860               56,174       
                                                                                                         
 (a) During the third quarter of 2020, the Company identified that, commencing in 2019, it had incorrectly calculated its quarterly adjustment to the carrying value of its redeemable non-controlling interest with a corresponding impact to net loss attributable to BlackLine, Inc., adjustment attributable to non-controlling interest, and basic and diluted net loss per share attributable to BlackLine, Inc. Such errors resulted in the $1.2 million ($0.02 per diluted share) overstatement of net loss attributable 
 to BlackLine, Inc. for the quarter ended March 31, 2020. The Company corrected the cumulative impact of such prior-period errors as an out-of-period adjustment in the quarter ended September 30, 2020. 

 

 BlackLine, Inc.                                                                                                                                                   
 Consolidated Statements of Cash Flows                                                                                                                             
 (in thousands)                                                                                                                                                    
 (unaudited)                                                                                                                                                       
                                                                                                                                                                   
                                                                                                                          Quarter Ended                            
                                                                                                                          March 31,                                
                                                                                                                              2021                   2020          
 CASH FLOWS FROM OPERATING ACTIVITIES:                                                                                                                             
 Net loss attributable to BlackLine, Inc.                                                                                 $   (38,964    )       $   (12,843   )   
 Net loss and adjustment attributable to redeemable non-controlling interest                                                  5,740                  1,873         
 Net loss                                                                                                                     (33,224    )           (10,970   )   
 Adjustments to reconcile net loss to net cash provided by operating activities:                                                                                   
 Depreciation and amortization                                                                                                6,542                  4,570         
 Change in fair value of contingent consideration                                                                             7,702                  145           
 Amortization of debt discount and issuance costs                                                                             7,651                  5,532         
 Stock-based compensation                                                                                                     14,794                 9,456         
 Loss on extinguishment of convertible senior notes                                                                           7,012                  —             
 Noncash lease expense                                                                                                        1,025                  1,230         
 Accretion of purchase discounts on marketable securities, net                                                                (33        )           (523      )   
 Net foreign currency losses                                                                                                  333                    826           
 Deferred income taxes                                                                                                        7                      13            
 Provision for (benefit from) doubtful accounts receivable                                                                    (8         )           69            
 Changes in operating assets and liabilities                                                                                                                       
 Accounts receivable                                                                                                          20,980                 12,147        
 Prepaid expenses and other current assets                                                                                    (672       )           (1,499    )   
 Other assets                                                                                                                 (3,456     )           (1,167    )   
 Accounts payable                                                                                                             652                    1,253         
 Accrued expenses and other current liabilities                                                                               (2,075     )           (10,014   )   
 Deferred revenue                                                                                                             2,333                  (1,298    )   
 Operating lease liabilities                                                                                                  (1,058     )           (1,253    )   
 Net cash provided by operating activities                                                                                    28,505                 8,517         
                                                                                                                                                                   
 CASH FLOWS FROM INVESTING ACTIVITIES:                                                                                                                             
 Purchases of marketable securities                                                                                           (308,937   )           (116,400  )   
 Proceeds from maturities of marketable securities                                                                            175,209                289,149       
 Proceeds from sales of marketable securities                                                                                 —                      12,000        
 Capitalized software development costs                                                                                       (4,021     )           (2,289    )   
 Purchases of property and equipment                                                                                          (1,096     )           (1,152    )   
 Net cash provided by (used in) investing activities                                                                          (138,845   )           181,308       
                                                                                                                                                                   
 CASH FLOWS FROM FINANCING ACTIVITIES:                                                                                                                             
 Proceeds from issuance of convertible senior notes, net of issuance costs                                                    1,129,106              —             
 Partial repurchase of convertible senior notes                                                                               (432,230   )           —             
 Purchase of capped calls related to convertible senior notes                                                                 (102,350   )           —             
 Proceeds from exercises of stock options                                                                                     2,151                  4,656         
 Acquisition of common stock for tax withholding obligations                                                                  (5,134     )           (3,562    )   
 Financed purchases of property and equipment                                                                                 (169       )           (169      )   
 Net cash provided by financing activities                                                                                    591,374                925           
                                                                                                                                                                   
 Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash                                       (210       )           —             
 Net increase in cash, cash equivalents, and restricted cash                                                                  480,824                190,750       
 Cash, cash equivalents, and restricted cash, beginning of period                                                             367,913                120,502       
 Cash, cash equivalents, and restricted cash, end of period                                                               $   848,737            $   311,252       
                                                                                                                                                                   
 Cash and cash equivalents at end of period                                                                               $   848,268            $   310,989       
 Restricted cash included within prepaid expenses and other current assets at end of period                                   208                    19            
 Restricted cash included within other assets at end of period                                                                261                    244           
 Total cash, cash equivalents, and restricted cash at end of period shown in the consolidated statements of cash flows    $   848,737            $   311,252       

 

 BlackLine, Inc.                                                                                                 
 Reconciliations of Non-GAAP Financial Measures                                                                  
 (in thousands, except percentages and per share data)                                                           
 (unaudited)                                                                                                     
                                                                                                                 
                                                                           Quarter Ended                         
                                                                           March 31,                             
                                                                               2021                 2020         
 Non-GAAP Gross Profit                                                                                           
 Gross profit                                                              $   76,966           $   66,533       
 Amortization of acquired developed technology                                 665                  175          
 Stock-based compensation                                                      1,750                1,323        
 Total Non-GAAP Gross Profit                                               $   79,381           $   68,031       
 Gross margin                                                                  77.9     %           80.6     %   
 Non-GAAP gross margin                                                         80.3     %           82.4     %   
                                                                                                                 
 Non-GAAP Operating Income:                                                                                      
 Loss from operations                                                      $   (18,705  )       $   (7,337   )   
 Amortization of intangible assets                                             2,893                1,543        
 Stock-based compensation                                                      14,794               9,456        
 Change in fair value of contingent consideration                              7,702                145          
 Total non-GAAP operating income                                           $   6,684            $   3,807        
                                                                                                                 
 Non-GAAP Net Income Attributable to BlackLine, Inc.                                                             
 Net loss attributable to BlackLine, Inc. (a)                              $   (38,964  )       $   (12,843  )   
 Provision for (benefit from) income taxes                                     81                   (16      )   
 Amortization of intangible assets                                             2,893                1,543        
 Stock-based compensation                                                      14,787               9,456        
 Amortization of debt discount and issuance costs                              7,651                5,532        
 Change in fair value of contingent consideration                              7,702                145          
 Adjustment to redeemable non-controlling interest (a)                         5,937                2,201        
 Loss on extinguishment of convertible notes                                   7,012                —            
 Total non-GAAP net income attributable to BlackLine, Inc.                 $   7,099            $   6,018        
 Basic non-GAAP net income attributable to BlackLine, Inc. per share:                                            
 Basic non-GAAP net income attributable to BlackLine, Inc. per share       $   0.12             $   0.11         
 Shares used to calculate basic non-GAAP net income per share                  57,860               56,174       
 Diluted non-GAAP net income attributable to BlackLine, Inc. per share:                                          
 Diluted non-GAAP net income attributable to BlackLine, Inc. per share     $   0.11             $   0.10         
 Shares used to calculate diluted non-GAAP net income per share                62,861               59,519       
                                                                                                                 
                                                                                                                 
                                                                                                                 
                                                                           Quarter Ended                         
                                                                           March 31,                             
                                                                               2021                 2020         
 Non-GAAP Sales and Marketing Expense:                                                                           
 Sales and marketing expense                                               $   48,429           $   44,785       
 Amortization of intangible assets                                             (1,750   )           (969     )   
 Stock-based compensation                                                      (5,251   )           (4,393   )   
 Total non-GAAP sales and marketing expense                                $   41,428           $   39,423       
                                                                                                                 
 Non-GAAP Research and Development Expense:                                                                      
 Research and development expense                                          $   18,973           $   11,747       
 Stock-based compensation                                                      (2,611   )           (1,229   )   
 Total non-GAAP research and development expense                           $   16,362           $   10,518       
                                                                                                                 
 Non-GAAP General and Administrative Expense:                                                                    
 General and administrative expense                                        $   28,269           $   17,338       
 Amortization of intangible assets                                             (478     )           (399     )   
 Stock-based compensation                                                      (5,182   )           (2,511   )   
 Change in fair value of contingent consideration                              (7,702   )           (145     )   
 Total non-GAAP general and administrative expense                         $   14,907           $   14,283       
                                                                                                                 
 Total Non-GAAP Operating Expenses                                         $   72,697           $   64,224       
                                                                                                                 
 Free Cash Flow                                                                                                  
 Net cash provided by operating activities                                 $   28,505           $   8,517        
 Capitalized software development costs                                        (4,021   )           (2,289   )   
 Purchases of property and equipment                                           (1,096   )           (1,152   )   
 Financed purchases of property and equipment                                  (169     )           (169     )   
 Free cash flow                                                            $   23,219           $   4,907        
                                                                                                                 
 (a) During the third quarter of 2020, the Company identified that, commencing in 2019, it had incorrectly calculated its quarterly adjustment to the carrying value of its redeemable non-controlling interest with a corresponding impact to net loss attributable to BlackLine, Inc., adjustment attributable to non-controlling interest, and basic and diluted net loss per share attributable to BlackLine, Inc. Such errors resulted in the $1.2 million ($0.02 per diluted share) overstatement of net loss attributable 
 to BlackLine, Inc. for the quarter ended March 31, 2020. The Company corrected the cumulative impact of such prior-period errors as an out-of-period adjustment in the quarter ended September 30, 2020. 

(https://www.globenewswire.com/NewsRoom/AttachmentNg/4bf13579-a862-4482-9dd1-e6f6471573c4)



GlobeNewswire, Inc. 2021
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