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Investor Presentation Second Quarter 2026 August 4th , 2026 BLACKLINE
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2 This presentation contains forward-looking statements. These statements may relate to, but are not limited to, expectations of f uture operating results or financial performance of BlackLine, Inc. (“BlackLine” or the “Company”), the calculation of certain key financial and operating metrics, capital expen ditures, introduction of new solutions or products, expansion into new markets, plans for growth and future operations, technological capabilities, and ability to execute our technology a nd platform initiatives and strategic relationships, including our relationship with SAP, as well as assumptions relating to the foregoing. Forward -looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. In some cases, you can identify forward -looking statements by terminology such as “may,” “will,” “shoul d,” “could,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “intend,” “potential,” “would,” “continue,” “ongoing” or the negative of these terms or other comparab le terminology. You should not put undue reliance on any forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results, and w ill not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all. Forward-looking statements are based on information available at the time those statements are made and/or management’s good fai th beliefs and assumptions as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to risks related to the Company’s ability to attract new customers and expand sales to existing customers; the extent to which customers renew their subscription agreements or increase the number of users; the impact of c urrent and future economic uncertainty and other unfavorable conditions in the Company’s industry or the global economy; and other risks and uncertainties described in other filings we make with the Securities and Exchange Commission (the “SEC”) from time to time, including the risks described under the heading “Risk Factors” in our Annual Report on Form 10-K and our subsequent Quarterly Reports on Form 10-Q, which are available on our website at http://investors.blackline.com and on the SEC’s website at www.sec.gov. In ligh t of these risks and uncertainties, the forward-looking events and circumstances discussed in this presentation may not occur and actual results could differ materially from those a nticipated or implied in the forward -looking statements. Except as required by law, BlackLine does not undertake any obligation to publicly update or revise any forward -looking statement, whether as a result of new information, future developments or otherwise. In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. Th ese statements are based upon information available to us as of the date of this presentation, and while we believe such information forms a reasonable basis for such statements, such in formation may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially av ailable relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely upon these statements. In addition to U.S. GAAP financials, this presentation includes certain non -GAAP financial measures, including non-GAAP gross profit, gross margin, free cash flow, sales and marketing expense, research and development expense, general and administrative expense, income (loss) from operations, operating margi n, net income and net income margin. These non- GAAP measures are in addition to, not a substitute for or superior to, measures of financial performance prepared in accordan ce with U.S. GAAP. The non-GAAP financial measures we use may differ from the non-GAAP financial measures used by other companies. A reconciliation of these measures to the most dire ctly comparable GAAP measure is included in the Appendix to this presentation. Safe Harbor
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33 To inspire, power, and guide digital finance transformation Champions of strategic accounting and finance transformation WHO WE AR E OUR WINNING ASPIRATION Market Leader with Large & Underpenetrated $45B TAM Compelling Land & Expand Model Durable Business Model with Investment in Profitable Growth
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44 $45B Total Market Opportunity $719M 6% YoY Growth Q2’26 Annual Recurring Revenue1 23% Q2’26 Non-GAAP Operating Margin2 $149M 20% Margin LTM Free Cash Flow2 Indispensable Platform for the CFO End-to-End Record-to-Report and Invoice-to-Cash Automation AI-Powered Innovation BlackLine’s data unification and analytics capabilities make it an ideal platform for building a trusted AI foundation 4,200+ Global Customers Trusted by the world's leading companies across a diverse range of industries and geographies Trusted by ~70% of the Fortune 100 Powering the digital finance transformation behind over $56T in global market capitalization Strong Global Partner Ecosystem Strategic SAP reseller partnership supported by global consulting alliances, C-suite influence, and robust enablement BlackLine At a Glance 1 BlackLine defines ARR as: contracted recurring revenue components of term subscriptions and support normalized to a one -year period. 2 Represents a Non-GAAP metric. See appendix for GAAP financial measures and reconciliations.
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5 The Office of the CFO Invoice-to-Cash Financial Close Consolidation By being positioned upstream within the Office of the CFO, BlackLine is uniquely able to ensure comprehensive control, enhanced visibility, and seamless data integrity – offering the most integrated and interconnected financial processes. Internal Reporting Financial Planning Intercompany External Reporting Financial Data Tax Mgmt. Treasury Mgmt.
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6 Market Leader with Large & Underpenetrated TAM Source: Dun & Bradstreet, Company estimates. Note: Record-to-report TAM excludes financial reporting and Public Sector. Record-to-Report $45B Total Addressable Market Invoice-to-Cash $34B $11B Financial Close Intercompany Consolidation Invoice-to-Cash Comprised of over 160,000 companies across BlackLine’s target markets in North America, Europe, and Asia-Pacific BlackLine’s core finance and accounting process area – Record-to-Report and Invoice-to-Cash – constitute a large, underpenetrated, and strategic addressable market.
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77 The Future-Ready Platform for the Office of the CFO AI-powered solutions enable future-ready financial operations that are accurate, efficient, and intelligent. Data Sources Orchestrate Visualize Blueprint Control Integrate ERP Systems LandscapeBanking & Financial Systems Excel, Databases & Other Files Studio360 Create Account Analysis/Reconciliations Journal Entry eInvoicing & Payments Balance & Resolve Transaction Matching Journals Risk Analyser Cash Application Net & Settle Reporting & Analysis Accruals AR Management Intercompany Financial Close & Consolidation Invoice-to-Cash Record-to-Report Finance Control Console Governance and Control for All Finance Agents
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8 AI as a Competitive Advantage BlackLine delivers a governed and auditable AI platform, making it a structurally indispensable and differentiated solution for the Office of the CFO. Unique, Human-Enriched Operational Data Agency & Trust We are the trusted leader in scalable, secure, and controlled finance and accounting platforms for global enterprises Domain Expertise & Context Two decades of operational, context-aware knowledge – drawn from 4,200+ customers' matching patterns, historical exception handling, and auditor interactions Unified Control Plane A neutral, event-driven orchestration layer bridging ERPs, EPMs, and the recording-to-planning gap – enabling continuous, intelligent financial operations Time-to-Value & Cost of Ownership Best-in-class out-of-the- box capabilities, blueprints, and agentic solutions deliver faster, durable ROI AI Innovation & Future Readiness An innovative, expanding portfolio of pre-governed financial actions gives our partners and customers a foundation to build, deploy, and manage their agentic workflows Human Judgment Data Matching Pattern Data Exception & Resolution Data Intercompany Flow Data Invoice-to-Cash Data + additional data sources
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9 As AI Scales, Governance Must Scale With It Enterprise AI is scaling exponentially – and most organizations don't yet have the governance to confidently deploy at scale. <15 AI agents per Fortune 500 company, 2025 150,000+ AI agents per Fortune 500 company by 2028 <20% of companies feel ready to govern AI at that scale An Accelerating Scale Problem… The Governance Chasm… BlackLine's answer: Finance Control Console – Studio360's next evolution Source: Gartner, "Gartner Identifies Six Steps to Manage AI Agent Sprawl," April 2026. 2025 2028
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10 Agentic Experiences Deploy a 'digital workforce' of AI agents to autonomously manage complex, end-to-end workflows like account reconciliations, accruals, and cash collections. Proactive Analysis Move teams beyond historical reporting by proactively analyzing data to forecast trends and mitigate financial risk before issues escalate. Intelligent Insights Provide immediate, accurate insights across all your financial data, reducing the need for manual investigation and ad-hoc reporting. Next-Generation Process Automation Enhance BlackLine’s core solutions with a new layer of intelligence, mastering high-volume, complex processes with greater speed and accuracy. Automated Content Generation & Summarization Accelerate the financial reporting cycle by automatically drafting financial narratives and creating instant summaries of complex supporting documents. Delivering Autonomous Finance with Verity BlackLine’s AI strategy combines AI and automation to unlock unprecedented value for finance and accounting teams, delivering accurate, efficient, and intelligent financial operations. TM TM Flux Accruals
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11 A New Digital Workforce for Finance that is Trustworthy & Auditable Corporate ControllerHead of Financial Reporting Director, Invoice-to-Cash Vera Accounting Manager Compliance Manager Preparation Agent Financial Reporting Analyst Consolidations Manager Credit Manager Cash Application Manager Collections Agent Preparation Agent Matching Agent Chief Financial Officer Summarization Agent
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12 Verity AI In Action Real customer use cases demonstrate how Verity AI reduces manual effort, increases accuracy, and surfaces risk across critical accounting workflows. Note: Customer outcomes above represent preliminary results from select early adopters of BlackLine's Verity AI products. Intelligent Accrual Estimation AI-Powered Account Preparation Autonomous Transaction Matching Agentic Collections & AI-Assisted Resolution 80% reduction in accruals-process time, with higher statement accuracy and a full AI audit trail. 94% time savings in manual prep, freeing teams for review and approval; risk scored for every account. 64% average reduction in residual unmatched rates, accelerating close and streamlining review. 99% reduction in human call time in early tests, freeing teams for high-value accounts. CLOSE CYCLE 3 days faster AUTO -CERTIF Y RATE 75% → 90% AUTO -MATCH RATE 66% → 88% TIME TO COMPLETE 45hrs → 30m Before → After Before → After Before → After
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13 Numerous Levers to Drive Sustained Growth AI Monetization Deploy a digital workforce of AI agents to automate complex financial tasks and unlock new premium service offerings New Customers Lead new customers on their accounting and finance transformations Platform & Packaging Simplified and standardized packaging with unlimited users that scales Partner Ecosystem Deepen and extend partner relationships New Markets Public Sector, Kingdom of Saudi Arabia, and other key international markets Functional Adjacencies Expand to relevant adjacencies through leading innovation and strategic M&A Sustainable, Profitable Growth Customer Expansion Standardized price structure across product pillars simplifies cross-sell motion and drive sales of strategic solutions AI
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14 Ideal Candidates for Digital Finance Transformation We have carefully defined our target markets and are targeting complex global enterprises and expanding our reach beyond smaller mid-market segments. We see robust new logo and expansion opportunities across our global enterprise and mid-market segments. Faster Sales Cycle Opportunity to Grow with the Customer Rapid, Simpler Implementations Significant Global Mid-Market Opportunity Mid-Market ~50% of Customers; ~25% of ARR Enterprise ~50% of Customers; ~75% of ARR Public Sector <1% of Customers & ARR Larger Software Budgets Longer Contract Lengths Strong Retention Trends Greater Capacity for Expansion Large, Sticky Install Base Excellent BlackLine Positioning with Commercial Counterparts Best-in-Class Partner Relationships $ 7 5 0 M $ 5 0 0 B +> $ 1 0 0 M T A R G E T C U S T O M E R R E V E N U E
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15 Transforming the World’s Largest Companies We are focused on deepening and expanding our relationships with the world's largest and most complex organizations. P R I O R I T Y O P P O R T U N I T Y 60% Fortune 500 70% DOWJ 30% NASDAQ (Enterprise) 40% FTSE 100 60% DAX 40 50% CAC 40 40% ASX 100 20% Nikkei 225 BlackLine powers the digital finance transformation behind over $56T in global market capitalization + + + + + + + +
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16 Serving Market Leaders Across Diverse Industries HEALTHCARE & LIFE SCIENCES MANUFACTURING 8 of the Top 10 RETAIL 4 of the Top 10 ENERGY 8 of the Top 10 TECHNOLOGY 8 of the Top 10 WHOLESALE 9 of the Top 10 SERVICES 7 of the Top 10 NEW: PUBLIC SECTOR I N D U S T R Y B R E A D T H I N D U S T R Y D E P T H PHARMA & BIOTECH E X A M P L E : H E A L T H C A R E & L I F E S C I E N C E S FINANCIAL SERVICES 3 of the Top 10 8 of the Top 10 MEDTECH HEALTHCARE SERVICES LIFE SCIENCES Note: Top 10 penetration represents BlackLine’s presence within the ten largest companies, by revenue, for each sector within the F ortune 1000. MEDIA & ENT. 8 of the Top 10
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17 Continuously Growing Our Customer Wallet Share 112 162 203 251 295 367 429 485 532 600 631 2 6 7 14 27 36 48 64 71 85 90 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Q2'26 49% CAGR in customers spending $1M or more $1M+$250k+ 20% CAGR in customers spending $250k-$1M 721 customers with an ARR of $250k+
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18 387k 396k 397k 397k 394k 390k 385k 11% 13% 17% Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Growing Momentum in Platform Pricing P L A T F O R M P R I C I N G U S E R- B A S E D P R I C I N G As we successfully attract new customers and migrate existing ones to our platform pricing, we expect a growing portion of our ARR to come from this model, leading to a planned decrease in paid user counts. 17% Platform pricing ARR as a percentage of eligible ARR1 1 Platform pricing ARR as a percentage of eligible ARR is calculated as platform annual recurring revenue divided by our eligible annual recurring revenue. We define eligible ARR as total annual recurring revenue, excluding revenue from SAP solutions-extensions (“SolEx”) and the public sector. Users Platform Pricing ARR as a % of Eligible ARR
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1919 Proven Enterprise Land & Expand Motion 1 Reflects annualized subscription and support revenue for the group of enterprise customers that became our customers in each respective cohort year. A “cohort” is a grouping of enterprise customers by the year specified. For instance, the 2012 cohort includes all enterprise customers whose contract start date is between January 1, 2012, and December 31, 2012. We calculate annualized subscription and support revenue at a particular date as the total amount of minimum subscription and support revenue contractually committed under each of our customer agreements for that month through the remaining term of the agreement, divided by the remaining number of months in the term of the agre ement, multiplied by twelve. We calculate initial annualized subscription and support revenue for any given cohort year as the sum of annualized subscription and support revenue as of the first month of each customer agreement that was entered into within that given cohort year. Accordingly, in contrast to annualized subscription and support revenue, initial annualized subscription and sup port revenue does not reflect any changes in the payments due under or for the duration of customer agreements following the first month of the customer agreement. Our annualized subscription and supp ort revenue as of June 30, 2026, for our customer cohorts for each of the years 2012 through 2025 represented an increase over the initial annualized subscription and support revenue for such cus tomer cohorts, shown as the “Growth Multiple” above. ARR by Customer Cohort (Enterprise Customers)1 2025 1.2x 2024 1.5x 2023 1.5x 2022 1.6x 2021 1.9x 2020 1.6x 2019 1.7x 2018 1.9x 2017 2.0x 2016 2.4x 2015 3.1x 2014 3.1x 2013 5.4x 2012 6.1x Growth Multiple ARR by Customer Cohort (All Customers)1 Cohort 2025 1.2x 2024 1.4x 2023 1.4x 2022 1.4x 2021 1.5x 2020 1.6x 2019 1.5x 2018 1.7x 2017 1.8x 2016 2.0x 2015 2.7x 2014 2.9x 2013 5.3x 2012 6.1x Growth MultipleCohort
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2020 Financial Overview Second Quarter 2026
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2121 Q2 2026 By the Numbers (as reported, excluding FX) 1 BlackLine defines ARR as: contracted recurring revenue components of term subscriptions and support normalized to a one -year period. 2 Represents a Non-GAAP metric. See appendix for GAAP financial measures and reconciliations. Total Revenue $188M 9% YoY Total RPO $1.1B 17% YoY Annual Recurring Revenue1 $719M 6% YoY Net Revenue Retention 102% Gross Margin2 80% Net Income Margin2 23% $43M Net Inc. Operating Income Margin 2 23% $44M Op Inc. Free Cash Flow Margin2 19% $36M FCF $$$
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22 $523 $590 $653 $700 $732 2022 2023 2024 2025 LTM Q2'26 Total Revenue $M Subscription & Support Revenue $M Services Revenue $M $491 $556 $619 $663 $693 2022 2023 2024 2025 LTM Q2'26 $32 $34 $34 $37 $39 2022 2023 2024 2025 LTM Q2'26 9%1 YoY Growth 8%1 YoY Growth 13%1 YoY Growth 1 LTM growth as of June 30, 2026. See appendix for GAAP financial measures and reconciliations. Visible Subscription Growth Model
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23 Demonstrated Profitability 6% 17% 19% 22% 23% 2022 2023 2024 2025 Q2'26 9% 25% 25% 22% 23% 2022 2023 2024 2025 Q2'26 Non-GAAP Operating Income Margin1 Non-GAAP Net Income Margin1 1 See appendix for GAAP financial measures and reconciliations.
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24 Sustained Cash Flow Generation Free Cash Flow Margin 5% 17% 25% 19% 19% 2022 2023 2024 2025 Q2'26 Note: Free cash flow defined as cash flows from operating activities less capex. $26 $99 $164 $135 $149 2022 2023 2024 2025 LTM Q2'26 Free Cash Flow $M
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25 Target Model Framework Note: Target Model Framework contemplates a forward-looking 3 to 5-year time horizon. 1 Represents a Non-GAAP metric. See appendix for GAAP financial measures and reconciliations. Target Model 2023 2024 2025 Target Model Comments Total Revenue Growth 13% 11% 7% 13%-16% GTM execution, strategic solutions, partnership strategy, industry strategy, platform pricing, AI- driven product innovation, public sector Gross Margin1 79% 79% 80% ~85% GCP migration complete, closure of duplicative infrastructure, cloud leverage/optimization, customer support/services scale/efficiency S&M (% of revenue)1 36% 33% 33% 32% - 34% Reduced DAC/CAC via GTM efficiency/productivity improvements, increased ASPs, and partner leverage R&D (% of revenue)1 15% 13% 13% 14% - 15% Platform & product investment, R&D efficiency/productivity improvements, internal AI deployment G&A (% of revenue)1 12% 13% 11% 9% - 10% G&A investment inflection point, G&A efficiency/productivity improvements, internal AI deployment Operating Margin1 17% 19% 22% 26% - 30% Operating leverage via revenue growth, efficiency/productivity improvements
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2626 Appendix
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27 NON-GAAP RECONCILIATIONS, NON-GAAP GROSS PROFIT, AND FREE CASH FLOW ($ IN 000’S) Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 2020 2021 2022 2023 2024 2025 Non-GAAP Revenues GAAP revenues $157,461 $160,506 $165,909 $169,460 $166,931 $172,025 $178,290 $183,181 $183,155 $187,822 $351,737 $425,706 $522,938 $589,996 $653,336 $700,427 Total Non-GAAP Revenues $157,461 $160,506 $165,909 $169,460 $166,931 $172,025 $178,290 $183,181 $183,155 $187,822 $351,737 $425,706 $522,938 $589,996 $653,336 $700,427 Non-GAAP Gross Profit GAAP gross profit $118,364 $120,158 $124,803 $128,046 $126,007 $129,403 $133,901 $137,731 $139,150 $142,678 $282,765 $327,835 $393,553 $443,203 $491,371 $527,042 Amortization of acquired developed technology 3,384 3,383 3,360 3,243 3,173 3,207 3,243 3,282 3,522 3,541 1,192 2,685 11,315 12,438 13,370 12,905 Stock-based compensation expense 2,596 3,653 3,537 3,561 3,646 4,535 4,382 4,669 4,281 4,725 6,896 8,410 8,595 12,440 13,347 17,232 Transaction-related costs 52 38 36 25 8 - - - - - - - 1,355 478 151 8 Total Non-GAAP Gross Profit $124,396 $127,232 $131,736 $134,875 $132,834 $137,145 $141,526 $145,682 $146,953 $150,944 $290,853 $338,930 $414,818 $468,559 $518,239 $557,187 Total Non-GAAP Gross Profit Margin 79.0% 79.3% 79.4% 79.6% 79.6% 79.7% 79.4% 79.5% 80.2% 80.4% 82.7% 79.6% 79.3% 79.4% 79.3% 79.5% Free Cash Flow Cash flows from operating activities $50,425 $40,698 $55,919 $43,794 $46,742 $32,345 $63,800 $26,680 $46,296 $44,991 $54,735 $80,093 $56,013 $126,613 $190,836 $169,567 Capitalized software development costs (6,450) (5,637) (6,114) (6,513) (8,167) (5,994) (6,259) (6,177) (8,411) (6,609) (10,578) (14,536) (19,208) (21,644) (24,714) (26,597) Purchase of property and equipment (299) (677) (394) (756) (5,951) (966) (534) (623) (2,117) (1,917) (6,513) (8,729) (10,974) (5,953) (2,126) (8,074) Financed purchases of property and equipment - - - - - - - - - - (562) (549) (84) - - - Purchases of intangible assets - - - - - - - - - - (2,333) - - - - - Free Cash Flow $43,676 $34,384 $49,411 $36,525 $32,624 $25,385 $57,007 $19,880 $35,768 $36,465 $34,749 $56,279 $25,747 $99,016 $163,996 $134,896 Free Cash Flow Margin 27.7% 21.4% 29.8% 21.6% 19.5% 14.8% 32.0% 10.9% 19.5% 19.4% 9.9% 13.2% 4.9% 16.8% 25.1% 19.3%
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28 NON-GAAP RECONCILIATIONS, NON-GAAP OPERATING INCOME, AND NON-GAAP NET INCOME ($ IN 000’S) Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 2020 2021 2022 2023 2024 2025 Non-GAAP Income from Operations GAAP income (loss) from operations $1,748 $2,208 $8,363 $6,217 $3,575 $7,545 $7,609 $6,823 $6,235 $10,990 ($19,891) ($38,614) ($56,198) $14,348 $18,536 $25,552 Amortization of intangible assets 5,196 5,195 5,190 4,305 3,650 3,468 3,505 3,545 3,783 3,801 7,679 10,479 19,731 20,608 19,886 14,168 Stock-based compensation expense 19,196 23,406 23,357 20,138 19,419 25,571 24,353 26,982 24,785 28,566 49,690 65,870 75,884 80,068 86,097 96,325 Change in fair value of contingent consideration - - - - - - - - - - 28 (2,758) (35,130) (33,549) - - Restructuring and legal settlement costs (gains) 444 928 356 (8) 5,299 1,295 2,668 6,192 1,878 455 - - 5,550 10,964 1,720 15,454 Transaction-related costs 216 (6) 358 - 3,010 128 - 1,642 2,923 - 4,736 1,586 16,831 5,078 568 4,780 Impairment of capitalized software implementation costs - - - - - - - - - - - - 5,330 - - - Total Non-GAAP Income From Operations $26,800 $31,731 $37,624 $30,652 $34,953 $38,007 $38,135 $45,184 $39,604 $43,812 $42,242 $36,563 $31,998 $97,517 $126,807 $156,279 Total Non-GAAP Income From Operations Margin 17.0% 19.8% 22.7% 18.1% 20.9% 22.1% 21.4% 24.7% 21.6% 23.3% 12.0% 8.6% 6.1% 16.5% 19.4% 22.3% Non-GAAP Net Income Attributable to BlackLine Net income (loss) attributable to BlackLine $10,829 $76,690 $17,238 $56,417 $6,055 $8,292 $5,285 $4,886 $8,126 $16,481 ($46,911) ($115,161) ($29,391) $52,833 $161,174 $24,518 Provision for (benefit from) income taxes related to acquisitions (583) 2,902 84 (53,351) (654) (12) (632) 516 1,935 1,115 (669) (961) (13,634) (1,196) (50,948) (782) Stock-based compensation expense 19,085 23,292 23,233 20,044 19,308 25,447 24,231 26,864 24,785 28,566 49,690 65,723 75,576 79,588 85,654 95,850 Amortization of debt discount and issuance costs 1,385 1,294 958 849 834 845 856 859 805 641 22,689 55,538 5,511 5,535 4,486 3,394 Amortization of acquired intangible assets 5,196 5,195 5,190 4,305 3,650 3,468 3,505 3,545 3,783 3,801 7,679 10,479 19,731 20,608 19,886 14,168 Change in fair value of contingent consideration - - - - - - - - - - 28 (2,758) (35,130) (33,549) - - Transaction-related costs (credits) 216 (6) 358 - 3,010 128 - 1,642 2,923 - 4,736 1,586 16,831 5,078 568 4,780 Impairment of capitalized software implementation costs - - - - - - - - - - - - 5,330 - - - Restructuring and legal settlement costs (gains) 444 928 356 (8) 5,299 1,295 2,668 6,192 1,878 455 - - 5,550 10,964 1,720 15,454 Adjustment to redeemable non-controlling interest 3,503 (2,255) (2,989) 6,380 (1,178) (1,561) 1,677 715 (4,629) (8,150) 8,858 15,077 (4,131) 5,334 4,639 (347) (Gain) loss on extinguishment of convertible senior notes - (65,112) - - - - - - - - - 7,012 - - (65,112) - Total Non-GAAP Net Income Attributable to BlackLine $40,075 $42,928 $44,428 $34,636 $36,324 $37,902 $37,590 $45,219 $39,606 $42,909 $46,100 $36,535 $46,243 $145,195 $162,067 $157,035 Total Non-GAAP Net Income Attributable to BlackLine Margin 25.5% 26.7% 26.8% 20.4% 21.8% 22.0% 21.1% 24.7% 21.6% 22.8% 13.1% 8.6% 8.8% 24.6% 24.8% 22.4%
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29 NON-GAAP RECONCILIATIONS, NON-GAAP S&M, NON-GAAP R&D, AND NON-GAAP G&A ($ IN 000’S) Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 2020 2021 2022 2023 2024 2025 GAAP Sales and Marketing Expense $61,111 $60,248 $62,219 $64,769 $63,063 $64,712 $67,493 $63,662 $67,421 $68,489 $174,581 $202,620 $256,862 $243,154 $248,347 $258,930 Amortization of intangible assets (1,733) (1,734) (1,751) (983) (398) (183) (183) (184) (182) (182) (4,655) (5,883) (6,505) (6,791) (6,201) (948) Stock-based compensation expense (5,794) (6,629) (6,745) (6,260) (6,044) (6,900) (7,051) (7,243) (6,947) (8,368) (21,546) (22,756) (26,310) (24,152) (25,428) (27,238) Transaction-related costs (credits) 33 (54) (163) (136) (10) - - - - - - - (2,399) (397) (320) (10) Impairment of capitalized software implementation costs - - - - - - - - - - - - (3,361) - - - Non-GAAP Sales and Marketing Expense $53,617 $51,831 $53,560 $57,390 $56,611 $57,629 $60,259 $56,235 $60,292 $59,939 $148,380 $173,981 $218,287 $211,814 $216,398 $230,734 % of Total Revenue 34.1% 32.3% 32.3% 33.9% 33.9% 33.5% 33.8% 30.7% 32.9% 31.9% 42.2% 40.9% 41.7% 35.9% 33.1% 32.9% GAAP Research and Development Expense $25,015 $25,721 $25,649 $24,588 $25,725 $27,964 $27,331 $28,182 $30,560 $31,294 $56,464 $77,322 $108,893 $103,207 $100,973 $109,202 Stock-based compensation expense (2,851) (3,499) (3,605) (3,390) (3,350) (4,451) (4,195) (4,637) (4,732) (5,471) (7,398) (11,110) (14,382) (13,095) (13,345) (16,633) Transaction-related costs (credits) (171) 106 (151) 170 (21) - - - - - - - (7,797) (2,857) (46) (21) Non-GAAP Research and Development Expense $21,993 $22,328 $21,893 $21,368 $22,354 $23,513 $23,136 $23,545 $25,828 $25,823 $49,066 $66,212 $86,714 $87,255 $87,582 $92,548 % of Total Revenue 14.0% 13.9% 13.2% 12.6% 13.4% 13.7% 13.0% 12.9% 14.1% 13.7% 13.9% 15.6% 16.6% 14.8% 13.4% 13.2% GAAP General and Administrative Expense $30,046 $31,053 $28,216 $32,480 $28,345 $28,138 $29,201 $33,048 $33,241 $30,788 $71,611 $86,507 $80,155 $71,530 $121,795 $118,732 Amortization of intangible assets (79) (78) (79) (79) (79) (78) (79) (79) (79) (78) (1,832) (1,911) (1,911) (1,379) (315) (315) Stock-based compensation expense (7,955) (9,625) (9,470) (6,927) (6,379) (9,685) (8,725) (10,433) (8,825) (10,002) (13,850) (23,594) (26,597) (30,381) (33,977) (35,222) Change in fair value of contingent consideration - - - - - - - - - - (28) 2,758 35,130 33,549 - - Legal settlement costs (gains) - - - - - (251) (401) (176) (185) 662 - - (1,709) - - (828) Transaction-related costs (credits) (26) (8) (8) (9) (2,971) (128) - (1,642) (2,923) - (4,736) (1,586) (5,280) (1,346) (51) (4,741) Impairment of capitalized software implementation costs - - - - - - - - - - - - (1,969) - - - Non-GAAP General and Administrative Expense $21,986 $21,342 $18,659 $25,465 $18,916 $17,996 $19,996 $20,718 $21,229 $21,370 $51,165 $62,174 $77,819 $71,973 $87,452 $77,626 % of Total Revenue 14.0% 13.3% 11.2% 15.0% 11.3% 10.5% 11.2% 11.3% 11.6% 11.4% 14.5% 14.6% 14.9% 12.2% 13.4% 11.1%
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