BlackLine, Inc. (BL) Bundle
A Brief History of BlackLine, Inc.
Company Overview
BlackLine, Inc. is a leading provider of cloud-based solutions for financial automation and accounting. Founded in 2001, the company has grown significantly and is recognized for transforming the way finance and accounting departments operate.
Financial Performance
As of September 30, 2024, BlackLine reported total revenues of $483.9 million for the nine months ended, representing an increase of 11% from $434.3 million in the corresponding period of 2023. The company's revenue streams primarily include:
- Subscription and support: $458.3 million
- Professional services: $25.6 million
Earnings and Net Income
For the same period, BlackLine achieved a net income of $104.8 million, a substantial increase compared to $30.8 million in 2023. The earnings per share (EPS) for the nine months ended was $1.69, compared to $0.51 in the previous year.
Revenue Breakdown
| Period | Subscription and Support Revenue | Professional Services Revenue | Total Revenue |
|---|---|---|---|
| Q3 2024 | $157.0 million | $8.9 million | $165.9 million |
| Q3 2023 | $142.1 million | $8.7 million | $150.7 million |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $351.0 million, slightly up from $323.6 million in the previous year. Key components included:
- Sales and marketing: $183.6 million
- Research and development: $76.4 million
- General and administrative: $89.3 million
Cash Flow Analysis
BlackLine reported net cash provided by operating activities of $147.0 million for the nine months ended September 30, 2024, compared to $84.4 million in 2023. The increase is attributed to improved collections and operational efficiency.
Market Position and Customer Base
As of September 30, 2024, BlackLine served 4,433 customers, reflecting a growth of 1% from the previous year. The company maintains a dollar-based net revenue retention rate of 105%, indicating strong customer loyalty and upsell potential.
Liquidity and Capital Resources
BlackLine's liquidity position remains robust, with cash and cash equivalents totaling $846.3 million as of September 30, 2024. This positions the company well to meet its upcoming financial obligations and strategic initiatives.
Debt Obligations
As of September 30, 2024, BlackLine had $905.2 million in aggregate principal amount of convertible senior notes outstanding. The company repaid $250.0 million of its 2024 Notes on August 1, 2024, utilizing cash on hand.
Stock Performance
BlackLine's stock has shown resilience amidst market fluctuations, reflecting investor confidence in the company's growth strategy and financial performance. The diluted net income per share for the nine months ended was $0.66, up from $0.49 in 2023.
Recent Developments
In May 2024, BlackLine issued $662.0 million in new convertible senior notes, which were partly used to repurchase existing debt, enhancing the company’s capital structure and reducing interest expenses.
A Who Owns BlackLine, Inc. (BL)
Major Shareholders
As of 2024, BlackLine, Inc. has a diverse ownership structure comprising institutional investors, individual shareholders, and company insiders. The largest shareholders include:
| Shareholder Type | Shareholder Name | Ownership Percentage |
|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 10.5% |
| Institutional Investor | BlackRock, Inc. | 9.8% |
| Institutional Investor | SSgA Funds Management, Inc. | 5.9% |
| Individual | Theresa J. McCarthy (CEO) | 1.7% |
| Individual | Company Directors | 2.1% |
Insider Ownership
Insider ownership at BlackLine reflects a commitment from its executives and board members to the company's long-term success. As of September 30, 2024, insider ownership is detailed below:
| Insider Name | Position | Shares Owned |
|---|---|---|
| Theresa J. McCarthy | CEO | 1,063,000 |
| John A. McCarthy | Chairman | 245,000 |
| Other Directors | Various | 250,000 |
Institutional Ownership Trends
Institutional ownership has seen a steady increase, reflecting growing confidence in BlackLine's business model and performance. As of September 2024, the institutional ownership percentage stands at 58.3%, which shows a slight increase from 56.7% in 2023.
| Year | Institutional Ownership Percentage |
|---|---|
| 2022 | 55.2% |
| 2023 | 56.7% |
| 2024 | 58.3% |
Recent Transactions
In recent months, several significant transactions have occurred involving BlackLine's shares:
| Date | Transaction | Shares Traded | Price per Share |
|---|---|---|---|
| January 15, 2024 | Insider Sale | 100,000 | $90.00 |
| February 20, 2024 | Institutional Purchase | 150,000 | $92.50 |
| March 10, 2024 | Insider Purchase | 50,000 | $88.00 |
Market Performance
BlackLine's stock performance reflects its ownership dynamics. As of September 30, 2024, the stock is trading at $95.50, with a market capitalization of approximately $5.95 billion. The stock has shown a year-to-date increase of 15%.
| Metric | Value |
|---|---|
| Stock Price | $95.50 |
| Market Capitalization | $5.95 billion |
| Year-to-Date Performance | 15% Increase |
BlackLine, Inc. (BL) Mission Statement
Overview of Mission Statement
BlackLine, Inc. aims to provide cloud-based solutions that automate and streamline financial operations, enhancing the productivity and accuracy of finance and accounting teams. The company emphasizes a commitment to innovation, customer success, and operational excellence in its mission to transform the finance function.
Financial Performance Metrics
As of September 30, 2024, BlackLine reported significant financial performance metrics, reflecting its operational effectiveness and growth trajectory.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenues (in millions) | $165.9 | $150.7 | 10.0% |
| Net Income (in millions) | $17.2 | $11.9 | 44.5% |
| Total Customers | 4,433 | 4,368 | 1.5% |
| Dollar-based Net Revenue Retention Rate | 105% | 105% | 0.0% |
| Number of Users | 397,095 | 381,892 | 4.0% |
Revenue Breakdown
The revenue streams for BlackLine show a strong reliance on subscription services, indicating robust demand for its automated financial solutions.
| Revenue Source | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (%) |
|---|---|---|---|
| Subscription and Support | $157.0 | $142.1 | 10.8% |
| Professional Services | $8.9 | $8.7 | 2.3% |
| Total Revenues | $165.9 | $150.7 | 10.0% |
Operating Expenses
BlackLine's operating expenses reflect its strategic investments in sales, marketing, and research, which are critical for sustaining growth.
| Expense Category | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Sales and Marketing | $62.2 | $61.6 |
| Research and Development | $25.6 | $26.7 |
| General and Administrative | $28.2 | $18.0 |
| Total Operating Expenses | $116.4 | $115.0 |
Market Position and Strategic Vision
BlackLine positions itself as a leader in the financial automation sector, focusing on delivering innovative solutions that simplify complex financial processes. The company's strategic partnerships, notably with SAP and Google Cloud, enhance its market reach and product offerings.
Recent Developments
As of September 30, 2024, BlackLine's strategic initiatives have resulted in an increase in both customer base and user engagement, underscoring its commitment to customer satisfaction and product enhancement.
| Key Development | Description |
|---|---|
| New Customer Acquisition | Acquired 65 new customers in Q3 2024, enhancing overall market penetration. |
| Product Innovation | Launched new features aimed at improving user experience and expanding functionality. |
| Strategic Partnerships | Continued collaboration with SAP and Google Cloud to enhance product integration and market outreach. |
Conclusion on Mission Alignment
BlackLine’s mission statement aligns closely with its operational strategies and financial results, emphasizing the importance of automation in financial processes while achieving significant revenue growth and customer retention.
How BlackLine, Inc. (BL) Works
Business Model
BlackLine, Inc. primarily generates revenue through subscriptions to its cloud-based financial software, constituting approximately 95% of total revenue. The remaining 5% comes from professional services. Subscription contracts typically have non-cancellable terms of one to three years with renewal options. Most new contracts in 2023 and the first nine months of 2024 featured an initial term of three years.
Financial Performance
For the quarter ended September 30, 2024, BlackLine reported revenues totaling $165.9 million, an increase from $150.7 million in the same quarter of 2023. Net income attributable to BlackLine for this quarter was $17.2 million, compared to $11.9 million for the prior year.
In the nine months ending September 30, 2024, revenues reached $483.9 million, up from $434.3 million in 2023. Net income for the same period was $104.8 million, significantly higher than $30.8 million reported in the previous year.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenues | $165.9 million | $150.7 million | $483.9 million | $434.3 million |
| Net Income | $17.2 million | $11.9 million | $104.8 million | $30.8 million |
Key Operational Metrics
As of September 30, 2024, BlackLine reported the following key operational metrics:
| Metric | Value |
|---|---|
| Dollar-based net revenue retention rate | 105% |
| Number of customers | 4,433 |
| Number of users | 397,095 |
Costs and Expenses
Total operating expenses for the quarter ended September 30, 2024, were $116.4 million, slightly above $115.0 million in Q3 2023. The breakdown includes:
- Sales and Marketing: $62.2 million
- Research and Development: $25.6 million
- General and Administrative: $28.2 million
For the nine months ended September 30, 2024, total operating expenses were $351.0 million, an increase from $323.6 million in the same period of 2023.
Cash Flow Analysis
For the nine months ended September 30, 2024, BlackLine reported cash flows as follows:
| Cash Flow Type | Amount |
|---|---|
| Net cash provided by operating activities | $147.0 million |
| Net cash provided by (used in) investing activities | $810.4 million |
| Net cash provided by (used in) financing activities | ($503.4 million) |
Market Position and Strategic Partnerships
BlackLine collaborates with major technology vendors, including SAP and Google Cloud, to enhance its market reach and improve its product offerings. This partnership allows BlackLine to integrate its solutions with SAP's ERP systems and leverage Google Cloud for enhanced automation.
Debt and Equity Structure
As of September 30, 2024, BlackLine had significant debt obligations, including convertible senior notes, impacting its interest expenses. For the quarter, interest expense was reported at $2.7 million, up from $1.5 million in Q3 2023.
BlackLine's total liabilities included unrecognized tax liabilities of $8.2 million and contingent consideration related to acquisitions.
Overall, the financial metrics indicate a growing demand for BlackLine's solutions, reflecting its strategic focus on enhancing customer relationships and expanding its product offerings.
How BlackLine, Inc. (BL) Makes Money
Revenue Model
BlackLine, Inc. generates approximately 95% of its revenue from subscriptions to its cloud-based software platform and about 5% from professional services. For the nine months ended September 30, 2024, BlackLine reported total revenues of $483.9 million, up from $434.3 million for the same period in 2023, marking an increase of 11%.
| Revenue Source | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (%) |
|---|---|---|---|
| Subscription and Support | $157.0 | $142.1 | 11% |
| Professional Services | $8.9 | $8.7 | 3% |
| Total Revenue | $165.9 | $150.7 | 10% |
Subscription Pricing and Contracts
BlackLine's subscription contracts typically have initial non-cancellable terms ranging from one to three years, with most new contracts in 2024 having a three-year term. Subscription pricing is influenced by factors such as the number of users and the specific products purchased by the customer. Customers are generally invoiced annually in advance for subscriptions, which are recorded as deferred revenue and recognized ratably over the contract term.
Professional Services
Professional services mainly include implementation and consulting services. BlackLine invoices these services on a time-and-materials basis, recognizing revenue as the services are performed. A limited number of customers are offered fixed-fee professional services, invoiced in advance and recognized based on proportional performance.
Customer Metrics
As of September 30, 2024, BlackLine had 4,433 customers and 397,095 users, reflecting a 1% and 4% increase in customer and user counts, respectively, compared to September 30, 2023.
| Metric | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Number of Customers | 4,433 | 4,368 |
| Number of Users | 397,095 | 381,892 |
Cost Structure
The total cost of revenues for the nine months ended September 30, 2024, was $120.6 million, compared to $109.2 million for the same period in 2023, representing a 10% increase. The cost of subscription and support was $100.5 million, while professional services accounted for $20.1 million.
| Cost Type | Q3 2024 (in millions) | Q3 2023 (in millions) | Change (%) |
|---|---|---|---|
| Subscription and Support | $34.7 | $30.8 | 13% |
| Professional Services | $6.4 | $6.0 | 7% |
| Total Cost of Revenues | $41.1 | $36.8 | 12% |
Operating Income
For the nine months ended September 30, 2024, BlackLine reported operating income of $12.3 million, compared to $1.5 million for the same period in 2023. This reflects a significant recovery in profitability, driven by revenue growth and improved cost management.
Net Income
Net income attributable to BlackLine for the nine months ended September 30, 2024, was $104.8 million, compared to $30.8 million for the same period in 2023. The increase in net income was aided by a reduction in restructuring costs, which fell to $1.7 million from $9.8 million in the prior year.
| Net Income Metrics | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Net Income | $17.2 | $11.9 |
| Basic Net Income per Share | $0.28 | $0.20 |
| Diluted Net Income per Share | $0.27 | $0.19 |
Market Position and Growth
BlackLine continues to strengthen its market position through strategic partnerships, particularly with technology vendors like SAP and Google Cloud. These collaborations enhance BlackLine's product offerings and broaden its market reach, contributing to sustained growth in customer acquisition and retention.
Key Financial Metrics
Key performance indicators include a dollar-based net revenue retention rate of 105% as of September 30, 2024, indicating strong customer loyalty and expansion. BlackLine's focus on maximizing the lifetime value of customer relationships remains central to its growth strategy.
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Resources:
- BlackLine, Inc. (BL) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of BlackLine, Inc. (BL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View BlackLine, Inc. (BL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.