Robert Simmons

Robert Simmons asked about the assumed revenue contribution from BlackLine's agentic offerings in 2026 and their potential materiality to ACV bookings. He also sought confirmation on whether BlackLine is still expecting 20% bookings growth for the year.

Answer

CFO Patrick Villanova clarified that the primary revenue contribution from AI offerings in 2026 will come from the uplift associated with platform pricing (product-led growth). He stated that consumption-based monetization of agents will follow later in the year, and its contribution is not expected to be overly material for 2026, though it's built into the target model. CEO Owen Ryan confirmed that BlackLine is still expecting 20% bookings growth for the year.

Robert Simmons inquired about the assumed revenue contribution from BlackLine's agentic offerings in 2026 and their potential materiality to Annual Contract Value (ACV) bookings. He also sought confirmation of the company's expectation for 20% bookings growth in 2026.

Answer

Patrick Villanova, CFO, clarified that the primary revenue contribution from AI offerings in 2026 will be the 'day one uplift' from platform pricing adoption, which is considered product-led growth. He stated that while agents will be released throughout the year, their consumption-based monetization is not expected to be overly material for 2026, though it is built into the target model. Owen Ryan, CEO, confirmed the expectation of 20% bookings growth for 2026.

Robert Simmons questioned the guided revenue growth pattern for the year, noting a projected dip in Q2's growth rate before an expected acceleration in the second half, and asked for the underlying cause.

Answer

Interim CFO Bill Carey and CEO Matt Cain clarified that the pattern is a direct result of customer migrations from enterprise licenses to the Capella cloud service. This shift creates a temporary lag in revenue recognition, as upfront license revenue is replaced by usage-based revenue that ramps over time. They stated that this disconnect is currently at its peak and that revenue growth will begin to converge with ARR growth in the second half of the year and beyond.

Robert Simmons requested color on business performance by geography and vertical. He also asked about the drivers for the operating income guide being raised more than the revenue guide, questioning where spending was being cut or increased.

Answer

Pete Godbole detailed performance by vertical, highlighting strength in consumer goods and education, and relative weakness in media and technology. He explained the margin improvement comes from both the revenue beat and 'no fault cost reduction,' which involves being highly thoughtful and scrutinizing all non-revenue investments and hiring decisions.