BlackLine Announces Third Quarter Financial Results

By GlobeNewswire,  November 30, 2016, 04:05:00 PM EDT


Reports Record Revenue of $32 Million, an Increase of 49%

Provides Fourth Quarter and Full Year 2016 Outlook

LOS ANGELES, Nov. 30, 2016 (GLOBE NEWSWIRE) -- BlackLine, Inc. (Nasdaq:BL), a leading provider of financial controls and automation solutions that enable Continuous Accounting, today announced financial results for the third quarter ended September 30, 2016.

"This is our first earnings report as a newly public company and we are excited to announce record third quarter revenue. Our performance this quarter reflects significant increases in new customers and users, as well as expansion into new markets globally," said Therese Tucker
, Founder and CEO.  "We also had several notable operational achievements in the quarter.  We expanded our European presence with a new office in Frankfurt, hired a new Chief Customer Officer and further strengthened BlackLine's market leadership position with the acquisition of Runbook."

"Following the successful completion of our IPO, we believe the Company is well positioned to continue executing against our growth plans and take advantage of the substantial market opportunity for BlackLine's solutions."

Third Quarter 2016 Financial Highlights

  • Total revenues of $32.2 million for the third quarter of 2016, an increase of 49% compared to the third quarter of 2015.
  • Total non-GAAP revenues of $32.4 million for the third quarter of 2016, an increase of 49% compared to the third quarter of 2015.
  • Net loss of $6.6 million, or $0.16 per share, on 40.8 million weighted average shares outstanding.
  • Non-GAAP net loss of $2.2 million, or $0.05 per share, on 40.8 million weighted average shares outstanding.
  • Free cash flow of $2.9 million, or 9% of revenue, for the third quarter of 2016 compared to ($1.6) million, or (7%) of revenue, for the third quarter of 2015.

Key Metrics and Recent Business Highlights

  • Completed initial public offering and began trading on the NASDAQ Global Select Market on October 28, 2016. Net proceeds from the IPO were approximately $151.7 million, after underwriting discounts and other offering costs.
  • Repaid in full all outstanding debt under the Company's credit facility on November 3, 2016.
  • Acquired Runbook Company B.V., a provider of financial close and automation solutions to the SAP market.
  • Hired cloud software veteran, Karen Flathers
    , as Chief Customer Officer.
  • The Company ended the third quarter of 2016 with 1,625 customers and 156,774 users.
  • Dollar-based net revenue retention rate of 118% for the third quarter of 2016.

Financial Outlook

Fourth Quarter 2016

  • Total revenue is expected to be in the range of $33.0 million to $34.0 million.
  • Total non-GAAP revenue is expected to be in the range of $33.5 million to $34.5 million.
  • Non-GAAP net loss is expected to be in the range of $­­5.0 million to $6.0 million or $0.11 to $0.13 per share, on 47.6 million weighted average shares outstanding.

Full Year 2016

  • Total revenue is expected to be in the range of $120.8 million to $121.8 million.
  • Total non-GAAP revenue is expected to be in the range of $121.5 million to $122.5 million.
  • Non-GAAP net loss is expected to be in the range of $18.0 million to $19.0 million or $0.42 to $0.45 per share, on 42.4 million weighted average shares outstanding.

Guidance for non-GAAP revenue excludes the impact of purchase accounting to revenues resulting from the acquisition of Runbook B.V., or the Runbook Acquisition.  For a reconciliation of non-GAAP revenue guidance to the most directly comparable U.S. GAAP measure, or revenues, please see the section titled "Reconciliation of Forward-Looking Guidance for Non-GAAP Revenues to GAAP Revenues."

Guidance for non-GAAP net loss and net loss per share adjusted for the impact of the benefit from income taxes that we were able to recognize as a result of the deferred tax liabilities associated with the intangible assets established upon the acquisition of the Company by its principal stockholders in 2013, or the 2013 Acquisition, and the Runbook Acquisition, the impact of purchase accounting to revenues resulting from the Runbook Acquisition, amortization of acquired intangible assets resulting from the 2013 Acquisition and the Runbook Acquisition, stock-based compensation, accretion of debt discount pertaining to the term loan BlackLine entered into under its credit facility in September 2013, or the 2013 Term Loan, accretion of warrant discount relating to warrants issued in connection with the 2013 Term Loan, the change in fair value of contingent consideration, the change in fair value of the common stock warrant liability and costs related to the Runbook Acquisition.  Reconciliations of non-GAAP net loss and net loss per share guidance to the most directly comparable U.S. GAAP measures, or net loss and net loss 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 loss and net loss per share.  The Company expects the variability of the above changes could have a significant, and potentially unpredictable, impact on its future GAAP net loss and net loss per share.

Quarterly Conference Call

BlackLine, Inc. will hold a conference call to discuss its third quarter results at 2:00 p.m. pacific time on Wednesday, November 30, 2016.  A live audio webcast will be accessible on BlackLine's investor relations website at http://investors.blackline.com.  The call can also be accessed domestically at (844) 229-7595 and internationally at (314) 888-4260, passcode 16664126.  A telephonic replay will be available through Wednesday, December 7, 2016 at (855) 859-2056 or (404) 537-3406, passcode 16664126.  A replay of the webcast will be available at http://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

BlackLine, Inc. is a provider of cloud-based solutions for Finance & Accounting (F&A) that centralize and streamline financial close operations and other key F&A processes for midsize and large organizations. BlackLine's platform is used by over 1,600 customers worldwide, spanning more than 156,000 users across 120+ countries. For more information about BlackLine, Inc., visit http://www.blackline.com/.

Forward-looking Statements

This release and the quarterly 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, expectations regarding gross margin and operating expenses, the Company's expectation that it will have positive cash flows in a specified time period, the impact of seasonality on the Company's financial results, market opportunity, the demand for and benefits from the use of BlackLine's current and future solutions, growth strategies including international expansion, customer growth, extension of distribution channels and product innovation, expectations for hiring new talent and the integration of Runbook, including its contributions to the Company's financial performance.

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; the Company's ability to manage growth 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; 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; 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; 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 macro-economic conditions; seasonality; changes in current tax or accounting rules; acts of terrorism or other vandalism, war or natural disasters; 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 final prospectus related to our initial public offering, which was filed with the Securities and Exchange Commission pursuant to Rule 424(b) of the Securities Act of 1933 on October 28, 2016.  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.

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 November 30, 2016 certain financial measures that have not been prepared in accordance with GAAP defined as "non-GAAP financial measures," which include (i) non-GAAP revenues, (ii) non-GAAP gross profit and non-GAAP gross margin, (iii) non-GAAP operating expenses, (iv) non-GAAP loss from operations, (v) non-GAAP net loss and non-GAAP net loss per share, and (vi) 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 Revenues. Non-GAAP revenues are defined as GAAP revenues adjusted for the impact of purchase accounting resulting from the Runbook Acquisition.  The Company believes that presenting non-GAAP revenues is useful to investors as it more fully reflects its core revenue growth rate for the three and nine months ended September 30, 2016.

Non-GAAP Gross Profit and Non-GAAP Gross Margin.  Non-GAAP gross profit is defined as non-GAAP revenues less GAAP cost of revenue adjusted for the impact of purchase accounting resulting from the Runbook Acquisition, the amortization of acquired developed technology resulting from the 2013 Acquisition and the Runbook Acquisition, and stock-based compensation. Non-GAAP gross margin is defined as non-GAAP gross profit divided by non-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 acquired intangibles resulting from the 2013 Acquisition and the Runbook Acquisition 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 acquired intangibles resulting from the 2013 Acquisition and Runbook Acquisition, stock-based compensation, change in fair value of contingent consideration and acquisition costs related to the Runbook Acquisition.  BlackLine believes that presenting each of the non-GAAP operating expenses is useful to investors as it eliminates the impact of certain non-cash expenses and allows a direct comparison of operating expenses between periods.

Non-GAAP Loss from Operations. Non-GAAP loss from operations is defined as GAAP loss from operations adjusted for the impact of purchase accounting to revenues resulting from the Runbook Acquisition, the amortization of acquired intangible assets resulting from the 2013 Acquisition and the Runbook Acquisition, stock-based compensation, change in fair value of contingent consideration and acquisition costs related to the Runbook Acquisition. The Company believes that presenting non-GAAP loss from operations is useful to investors as it eliminates the impact of items that have been impacted by the 2013 Acquisition and the Runbook Acquisition, purchase accounting and other related costs in order to allow a direct comparison of loss from operations between all periods presented.

Non-GAAP Net Loss. Non-GAAP net loss is defined as GAAP net loss adjusted for the impact of the benefit from income taxes that we were able to recognize as a result of the deferred tax liabilities associated with the intangible assets established upon the 2013 Acquisition and the Runbook Acquisition, the impact of purchase accounting to revenues resulting from the Runbook Acquisition, amortization of acquired intangible assets resulting from the 2013 Acquisition and the Runbook Acquisition, stock-based compensation, accretion of debt discount pertaining to the 2013 Term Loan, accretion of warrant discount relating to warrants issued in connection with the 2013 Term Loan, the change in the fair value of contingent consideration, the change in fair value of the common stock warrant liability and costs related to the Runbook Acquisition.  The Company believes that presenting non-GAAP net loss is useful to investors as it eliminates the impact of items that have been impacted by the 2013 Acquisition and the Runbook Acquisition, purchase accounting 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 (used in) operating activities less cash flows used in investing activities related to purchase of 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 November 30, 2016 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 September 30, 2016.

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. However, 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. Since BlackLine's customers generally pay fees based on the number of users of its platform within their organization, the Company believes the total number of users is an indicator of the growth of its business.



BlackLine, Inc.
Consolidated Balance Sheets
(in thousands, except share data and par value)
(unaudited)
 
    September 30,

2016
    December 31,

2015
 
ASSETS                
Current assets:                
Cash and cash equivalents   $ 19,586     $ 15,205  
Accounts receivable, net     36,761       24,235  
Deferred sales commissions     7,229       6,246  
Prepaid expenses and other current assets     4,456       2,801  
Total current assets     68,032       48,487  
Capitalized software development costs, net     4,113       2,967  
Property and equipment, net     11,857       12,419  
Intangible assets, net     57,434       56,828  
Goodwill     185,052       163,154  
Other assets     4,747       2,895  
Total assets   $ 331,235     $ 286,750  
LIABILITIES AND STOCKHOLDERS' EQUITY                
Current liabilities:                
Accounts payable   $ 8,456     $ 4,648  
Accrued expenses and other current liabilities     17,485       15,012  
Deferred revenue     69,774       52,750  
Short-term portion of contingent consideration     2,008       2,008  
Total current liabilities     97,723       74,418  
Term loan, net     64,836       28,267  
Common stock warrant liability     5,200       5,500  
Contingent consideration     3,137       2,859  
Deferred tax liabilities     3,874       5,907  
Other long-term liabilities     3,917       3,631  
Total liabilities     178,687       120,582  
Commitments and contingencies                
Stockholders' equity:                
Common stock     413       407  
Treasury stock           (254 )
Additional paid-in capital     223,805       214,171  
Accumulated deficit     (71,670 )     (48,156 )
Total stockholders' equity     152,548       166,168  
Total liabilities and stockholders' equity   $ 331,235     $ 286,750  
 



BlackLine, Inc.
Consolidated Statements of Operations
(in thousands, except share and per share data)
(unaudited)
 
    Three Months Ended

September 30,
    Nine Months Ended

September 30,
 
    2016     2015     2016     2015  
Revenues                                
Subscription and support   $ 30,853     $ 20,786     $ 83,830     $ 56,666  
Professional services     1,343       875       3,953       2,467  
Total revenues     32,196       21,661       87,783       59,133  
Cost of revenues                                
Subscription and support     6,440       5,119       18,515       14,220  
Professional services     1,101       824       3,029       2,162  
Total cost of revenues     7,541       5,943       21,544       16,382  
Gross profit     24,655       15,718       66,239       42,751  
Operating expenses                                
Sales and marketing     19,037       14,740       56,279       39,694  
Research and development     5,087       4,904       15,552       12,938  
General and administrative     7,698       5,916       19,633       14,968  
Total operating expenses     31,822       25,560       91,464       67,600  
Loss from operations     (7,167 )     (9,842 )     (25,225 )     (24,849 )
Other expense                                
Interest expense, net     (1,294 )     (822 )     (3,134 )     (2,466 )
Change in fair value of the common stock warrant liability           80       300       (170 )
Other expense, net     (1,294 )     (742 )     (2,834 )     (2,636 )
Loss before income taxes     (8,461 )     (10,584 )     (28,059 )     (27,485 )
Benefit from income taxes     (1,842 )     (3,849 )     (4,564 )     (9,958 )
Net loss   $ (6,619 )   $ (6,735 )   $ (23,495 )   $ (17,527 )
Net loss per share, basic and diluted   $ (0.16 )   $ (0.17 )   $ (0.58 )   $ (0.43 )
Weighted average common shares outstanding, basic and diluted     40,824,314       40,655,741       40,746,481       40,550,742  
 



BlackLine, Inc.
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
 
    Three Months Ended

September 30,
    Nine Months Ended

September 30,
 
    2016     2015     2016     2015  
Cash flows provided by (used in) operating activities                                
Net loss   $ (6,619 )   $ (6,735 )   $ (23,495 )   $ (17,527 )
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:                                
Depreciation and amortization     4,356       3,701       12,690       10,630  
Accretion of debt discount and paid in kind interest     871       686       2,083       2,008  
Change in fair value of common stock warrant liability         (80 )     (300 )     170  
Change in fair value of contingent consideration     135       13       278       39  
Stock-based compensation     1,360       1,560       4,534       3,870  
Deferred income taxes     (1,920 )     (3,848 )     (4,820 )     (10,018 )
Changes in operating assets and liabilities, net of effects of the business acquisition:                                
Accounts receivable     (8,525 )     (3,119 )     (9,933 )     (6,939 )
Deferred sales commissions     (922 )     (739 )     (983 )     (2,560 )
Prepaid expenses and other current assets     127       (201 )     (936 )     110  
Other assets     (180 )     4       (150 )     (220 )
Accounts payable     1,175       1,822       3,250       1,220  
Accrued expenses and other current liabilities     4,621       1,911       1,886       4,558  
Deferred revenue     9,784       6,274       17,535       12,467  
Other long-term liabilities     (124 )     (17 )     (590 )     2,042  
Net cash provided by (used in) operating activities     4,139       1,232       1,049       (150 )
Cash flow used in investing activities                                
Acquisitions, net of cash acquired     (31,488 )         (31,488 )      
Capitalized software development costs     (854 )     (647 )     (2,326 )     (1,506 )
Purchase of property and equipment     (406 )     (2,142 )     (1,308 )     (7,346 )
Net cash used in investing activities     (32,748 )     (2,789 )     (35,122 )     (8,852 )
Cash flows from financing activities                                
Proceeds from long-term debt, net of issuance costs     29,629           34,469        
Principal payments on capital lease obligations             (124 )      
Proceeds from issuance of common stock     3,075           3,075        
Payments of initial public offering costs     (50 )         (1,162 )      
Repurchase of common stock         (29 )           (29 )
Proceeds from exercise of stock options     1,894       96       2,196       1,339  
Net cash provided by financing activities     34,548       67       38,454       1,310  
Net increase (decrease) in cash and cash equivalents     5,939       (1,490 )     4,381       (7,692 )
Cash and cash equivalents, beginning of period     13,647       19,505       15,205       25,707  
Cash and cash equivalents, end of period   $ 19,586     $ 18,015     $ 19,586     $ 18,015  
 



BlackLine, Inc.
Consolidated Statements of Cash Flows
Supplemental Disclosures of Cash Flow Information
(in thousands)
(unaudited)
 
    Three Months Ended

September 30,
    Nine Months Ended

September 30,
 
    2016     2015     2016     2015  
Supplemental disclosures of cash flow information                                
Cash paid for interest   $ 447     $ 141     $ 924     $ 404  
Cash paid for income taxes   $ 35     $ 7     $ 176     $ 13  
Non-cash financing and investing activities                                
Capitalized software development costs included in accounts payable and accrued expenses and other current liabilities   $ 107     $ 75     $ 107     $ 75  
Purchases of property and equipment included in accounts payable and accrued expenses and other current liabilities   $ 149     $ 1,557     $ 149     $ 1,557  
Stock-based compensation capitalized for software development   $ 26     $ 16     $ 70     $ 46  
Deferred initial public offering costs in accounts payable and accrued expenses and other current liabilities   $ 2,186     $ 203     $ 2,186     $ 203  
Term loan issuance costs included in accounts payable and accrued expenses and other current liabilities   $ 143     $     $ 143     $  
 



BlackLine, Inc.
Reconciliations of Non-GAAP Financial Measures
(in thousands, except percentages and share and per share data)
(unaudited)
 
    Three Months Ended,

September 30,
    Nine Months Ended

September 30,
 
    2016     2015     2016     2015  
Non-GAAP Revenues:                                
Revenues   $ 32,196     $ 21,661     $ 87,783     $ 59,133  
Purchase accounting adjustment to revenues     179             179        
Total Non-GAAP Revenues   $ 32,375     $ 21,661     $ 87,962     $ 59,133  
Non-GAAP Gross Profit:                                
Gross Profit   $ 24,655     $ 15,718     $ 66,239     $ 42,751  
Purchase accounting adjustment to revenues     179             179        
Amortization of developed technology     1,595       1,535       4,664       4,604  
Stock-based compensation expense     150       126       425       351  
Total Non-GAAP Gross Profit   $ 26,579     $ 17,379     $ 71,507     $ 47,706  
Gross Margin     76.6 %     72.6 %     75.5 %     72.3 %
Non-GAAP Gross Margin     82.1 %     80.2 %     81.3 %     80.7 %
Non-GAAP Loss from Operations:                                
Loss from operations   $ (7,167 )   $ (9,842 )   $ (25,225 )   $ (24,849 )
Purchase accounting adjustment to revenues     179             179        
Amortization of intangibles     3,138       3,023       9,184       9,069  
Stock-based compensation     1,360       1,560       4,534       3,870  
Change in fair value of contingent consideration     135       13       278       39  
Acquisition related costs     1,372             1,372        
Total Non-GAAP Loss from Operations   $ (983 )   $ (5,246 )   $ (9,678 )   $ (11,871 )
Non-GAAP Net Loss:                                
Net Loss   $ (6,619 )   $ (6,735 )   $ (23,495 )   $ (17,527 )
Benefit from income taxes     (1,926 )     (3,824 )     (4,821 )     (9,975 )
Purchase accounting adjustment to revenues     179             179        
Amortization of intangibles     3,138       3,023       9,184       9,069  
Stock-based compensation     1,360       1,560       4,534       3,870  
Accretion of debt discount     96       57       242       171  
Accretion of warrant discount     69       69       207       207  
Change in fair value of contingent consideration     135       13       278       39  
Change in fair value of common stock warrant liability           (80 )     (300 )     170  
Acquisition related costs     1,372             1,372        
Total Non-GAAP Net Loss   $ (2,196 )   $ (5,917 )   $ (12,620 )   $ (13,976 )
Non-GAAP Net Loss per Share   $ (0.05 )   $ (0.15 )   $ (0.31 )   $ (0.34 )
Weighted Average Common Shares Outstanding, Basic and Diluted     40,824,314       40,655,741       40,746,481       40,550,742  
 



BlackLine, Inc.
Reconciliations of Non-GAAP Financial Measures
(in thousands)
(unaudited)
 
    Three Months Ended,

September 30,
    Nine Months Ended

September 30,
 
    2016     2015     2016     2015  
Non-GAAP Sales and Marketing Expense:                                
Sales and marketing expense   $ 19,037     $ 14,740     $ 56,279     $ 39,694  
Amortization of intangibles     896       872       2,640       2,616  
Stock-based compensation expense     501       602       1,834       1,747  
Total Non-GAAP Sales and Marketing Expense   $ 17,640     $ 13,266     $ 51,805     $ 35,331  
Non-GAAP Research and Development Expense:                                
Research and development expense   $ 5,087     $ 4,904     $ 15,552     $ 12,938  
Stock-based compensation expense     198       160       532       420  
Total Non-GAAP Research and Development Expense   $ 4,889     $ 4,744     $ 15,020     $ 12,518  
Non-GAAP General and Administrative Expense:                                
General and administrative expense   $ 7,698     $ 5,916     $ 19,633     $ 14,968  
Amortization of intangibles     647       616       1,880       1,849  
Stock-based compensation     511       672       1,743       1,352  
Change in fair value of contingent consideration     135       13       278       39  
Acquisition related costs     1,372             1,372        
Total Non-GAAP General and Administrative Expense   $ 5,033     $ 4,615     $ 14,360     $ 11,728  
Total Non-GAAP Operating Expense   $ 27,562     $ 22,625     $ 81,185     $ 59,577  
Free Cash Flow:                                
Cash flows provided by operating activities   $ 4,139     $ 1,232     $ 1,049     $ (150 )
Capitalized software development costs     (854 )     (647 )     (2,326 )     (1,506 )
Purchase of property and equipment     (406 )     (2,142 )     (1,308 )     (7,346 )
Free Cash Flow   $ 2,879     $ (1,557 )   $ (2,585 )   $ (9,002 )
 



BlackLine, Inc.
Reconciliation of Forward-Looking Guidance for Non-GAAP Revenue to GAAP Revenue
(in millions)
(unaudited)
 
    Three Months Ended,

December 31, 2016
    Year Ended

December 31, 2016,
 
    From     To     From     To  
Non-GAAP Revenues:                                
Revenues   $ 33.0     $ 34.0     $ 120.8     $ 121.8  
Purchase accounting adjustment to revenues     0.5       0.5       0.7       0.7  
Total Non-GAAP Revenues   $ 33.5     $ 34.5     $ 121.5     $ 122.5  



Investor Relations Contact:
The Blueshirt GroupChristine Greany
858.523.1732 christine@blueshirtgroup.com Media Relations Contact: The Blueshirt GroupJeff Fox
415.828.8298 jeff@blueshirtgroup.com

Source: BlackLine, Inc.

This article appears in: News Headlines

Referenced Stocks: BL


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