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BLACKLINE, INC. (BL)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 revenue rose 9% YoY to $169.5M with GAAP gross margin ~75.6% and non-GAAP operating margin 18.1%; non-GAAP diluted EPS was $0.47, matching the low end of prior EPS guidance, while GAAP diluted EPS was $0.79 .
  • Management guided Q1 2025 revenue to $166–$168M and FY 2025 revenue to $699–$705M (7–8% growth) with non-GAAP operating margin expansion to 21–22% and non-GAAP EPS of $1.97–$2.10, citing FX as a ~1-pt growth headwind and a higher 2025 effective tax rate .
  • Deal velocity slowed late in Q4 (some large deals pushed into 2025), while renewal quality improved: revenue renewal rate reached 96% and net revenue retention was 102% with ~2-pt FX drag; strategic products reached a record 33% of sales and partners touched 80% of large deals .
  • Catalysts/stock narrative: execution on Studio360 platform and partner motions (SAP SolEx, Workday), improving enterprise renewals, and margin expansion; risks include FX drag, timing of large deal starts (deferrals), and early-stage FedRAMP/public sector ramp; management emphasized “execute, execute, execute” as 2025 focus .

What Went Well and What Went Wrong

  • What Went Well
    • Studio360/platform resonance: early customer traction; Fortune 100 implementations; empowers finance to automate/orchestrate workflows; positive feedback on visualization and Snowflake data-sharing integration .
    • Strategic product momentum: strategic products hit a record 33% of sales; invoice-to-cash had a record deal count; non-GAAP subscription gross margin ~82% in line; partner attach 80% on large deals .
    • Renewal quality improving: revenue renewal rate 96% (97% enterprise; 92% mid-market) in a heavy renewals quarter; NRR 102% despite ~2-pt FX headwind .
  • What Went Wrong
    • Deal velocity/deferrals: larger late-stage deals slowed; some pushed into 2025; management cited macro/tariff uncertainty and more blueprinting by customers; one 8-figure award defers start (no 2025 revenue recognition under current construct) .
    • FX headwinds: ~3-pt drag on Q4 non-GAAP operating margin; ~1-pt headwind to FY25 growth outlook; FX also pressured ARR/RPO and NRR .
    • Mixed profit optics: Q4 non-GAAP EPS $0.47 at low end of prior EPS guide, but non-GAAP net income ($34.6M) was below the $36–$40M Q4 guide in dollars; management highlighted meeting/exceeding revenue and non-GAAP guidance (interpretable as EPS/OM), but investors should note dollar shortfall vs prior non-GAAP NI guide .

Financial Results

MetricQ4 2023Q3 2024Q4 2024
Revenue ($M)$155.730 $165.909 $169.460
GAAP Gross Margin (%)75.8% 75.2% 75.6%
Non-GAAP Gross Margin (%)80.1% 79.4% 79.6%
GAAP Operating Margin (%)8.2% 5.0% 3.7%
Non-GAAP Operating Margin (%)24.8% 22.7% 18.1%
GAAP Diluted EPS ($)$0.32 $0.27 $0.79
Non-GAAP Diluted EPS ($)$0.69 $0.60 $0.47
Operating Cash Flow ($M)$42.169 $55.919 $43.794
Free Cash Flow ($M)$35.336 $49.411 $36.525

Segment mix

Segment Revenue ($M)Q4 2023Q3 2024Q4 2024
Subscription & Support$147.155 $157.011 $160.988
Professional Services$8.575 $8.898 $8.472
Total Revenue$155.730 $165.909 $169.460

Key KPIs

KPIQ2 2024Q3 2024Q4 2024
Customers (period-end)4,435 4,433 4,443
Users (period-end)396,366 397,095 397,477
Dollar-Based NRR (%)104% 105% 102%
Revenue Renewal Rate (%)——96%
ARR ($M)—638 641
RPO YoY—+12% total; +11% current +4% total; +5% current (FX >1-pt headwind)
Strategic Products as % of Sales—31% 33% (record)
SAP Partnership Revenue as % of Total—26% 26%
Large Deals with Partner Involvement—81% 80%

Notes: FX was a ~3-pt drag on Q4 non-GAAP OM and ~2-pt headwind to NRR, and ~1-pt FY25 growth headwind .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($M)Q4 2024$167–$169 (11/7/24) Actual: $169.460 Met high end
Non-GAAP Operating Margin (%)Q4 202418.0–19.0 (11/7/24) Actual: 18.1 Within range
Non-GAAP Net Income ($M)Q4 2024$36–$40; $0.47–$0.52 EPS (11/7/24) Actual: $34.636; $0.47 EPS EPS met low end; $ NI below range
Revenue ($M)FY 2024$651–$653 (11/7/24) Actual: $653.336 Above range
Non-GAAP Operating Margin (%)FY 202419.4–19.6 (11/7/24) Actual: 19.4 Met low end
Non-GAAP Net Income ($M)FY 2024$164–$168; $2.15–$2.21 EPS (11/7/24) Actual: $162.067; $2.18 EPS EPS within; $ NI slightly below
Revenue ($M)Q1 2025—$166–$168 New
Non-GAAP Operating Margin (%)Q1 2025—16.5–17.5 New
Non-GAAP Net Income ($M)Q1 2025—$28–$30; $0.36–$0.39 EPS New
Revenue ($M)FY 2025—$699–$705 New
Non-GAAP Operating Margin (%)FY 2025—21–22 New
Non-GAAP Net Income ($M)FY 2025—$155–$165; $1.97–$2.10 EPS New

Management noted ~1-pt FX growth headwind embedded in FY25 revenue guide and a higher effective tax rate in 2025 .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 & Q3)Current Period (Q4)Trend
Studio360 / PlatformQ2: FRA to be sold as SAP SolEx; platform vision emphasized . Q3: Studio momentum building; 80%+ GCP migration; industry solutions; AI analytics; strong partner interest .Formal launch traction; Fortune 100 implementations; low-code orchestration; visualization; Snowflake integration; Oracle/Workday connectors .Strengthening; commercialization focus to simplify messaging .
SAP partnership (SolEx/RISE)Q3: 26% of revenue; seasonal softness new logos; stronger partner pipeline; SAP running on BlackLine .Premium qualification for Studio360; included in SAP EPM package (RISE); comp aligned; Finance-First before S/4HANA; 26% of revenue .Re-accelerating in 2025 with aligned incentives/roadmap .
Deal velocity/macro/FXQ3: Measured demand; billings TTM approach; enterprise renewal 97% .Larger deal pushouts; some closed in Jan; FX ~3-pt OM drag; ~2-pt NRR headwind; ~1-pt FY25 revenue headwind .Pressure near-term; pipeline quality improving (larger deals) .
Pricing & packagingQ3: Simplification planned for 2025 rollout .New transaction/entity/ERP-based pricing launched; early positive; unlimited pricing agreements; 3–4 year rollout; accretive over time .Structural change underway; internal/partner enablement needed .
Renewal/NRRQ2: NRR 104% . Q3: NRR 105%; enterprise renewals 97%; mid-market churn expected .Revenue renewal 96% (97% enterprise/92% mid-market); NRR 102% with ~2-pt FX drag .Stabilizing; focus on ideal mid-market customer and cross-sell.
Public sector / FedRAMPQ3: Early 2025 broader rollout of industry solutions; GCP migration supports scale .FedRAMP on plan; adding resellers/SI partners; modest 2025 revenue in plan; potential updates in May .Early stage; investment headwinds near-term margins.
Invoice-to-CashQ3: AI payment prediction; leadership recognized .Record deals; competitor NPS cited as weak; product updates expected by Q2 .Momentum improving.

Management Commentary

  • “BlackLine met or exceeded our revenue and non-GAAP guidance despite notable currency headwinds due to a strong U.S. dollar.” — Co-CEO Owen Ryan .
  • “Our revenue renewal rate was 96% in what was a heavy renewals quarter… enterprise 97%, mid-market 92%.” — Owen Ryan .
  • “Our non-GAAP gross margin was nearly 80%... non-GAAP operating margin was 18%... FX represented almost a 3-point drag.” — CFO Patrick Villanova .
  • “We have begun the premium qualification process for Studio360 as part of the SolEx program… included in SAP EPM package as part of their RISE initiative.” — Owen Ryan .
  • “Studio360 launch… generated significant market enthusiasm… low-code orchestration… reducing dependence on internal IT resources.” — Co-CEO Therese Tucker .

Q&A Highlights

  • Pipeline and deal pushouts: Larger late-stage deals slowed with added executive scrutiny/blueprinting; some closed in January; one 8-figure award defers start to year-end 2025, implying no 2025 revenue under current construct .
  • SAP/partners: 2024 reset now aligned for 2025; Studio360 SolEx PQ in Q2; included in SAP EPM (RISE); comp aligned; expectation for acceleration; SAP 26% of revenue in Q4 .
  • Pricing/packaging economics: New usage/entity/ERP-based model launched; 3–4 year rollout; expected to be accretive; simplifies pricing and expands beyond accounting team seats .
  • Guidance philosophy: “Appropriate and achievable targets” with transparency on assumptions/risks; reassessment each quarter; FX and higher tax rate embedded .
  • FCF/taxes: Valuation allowance release implies sustained profitability; expect non-GAAP cash tax rate low-to-mid teens; lower average cash balance and rates reduce interest income tailwind .

Estimates Context

  • Wall Street consensus from S&P Global for Q4 2024 was unavailable due to API limits at the time of analysis; therefore, we cannot present a precise beat/miss vs consensus. S&P Global estimates unavailable.
  • Implications for revisions: FY25 revenue growth guide (7–8%) and OM expansion to 21–22% suggest potential upward revisions to profitability estimates but modest revenue growth assumptions given FX and deal timing; near-term quarterly estimates may drift lower for revenue timing while EPS/margins could hold on operating leverage and cost control .

Key Takeaways for Investors

  • Execution vs narrative: Platform progress (Studio360), partner alignment (SAP/Workday), and improving renewal quality underpin the medium-term thesis; near-term revenue optics are tempered by FX and large-deal timing .
  • Profit mix matters: Q4 non-GAAP EPS hit low end of prior guide and non-GAAP OM within range despite FX; FY25 guide implies margin expansion to 21–22%—a core support for EPS durability .
  • Watch deal conversion/starts: Management flagged deal pushouts and deferred start dates (even for awarded 8-figure deals); improving commercialization/enablement of Studio360 and pricing model is key to reducing slippage .
  • Strategic products momentum: Record 33% of sales in Q4 with invoice-to-cash strength; continued mix shift should support ARPU and stickiness, aided by partner engagement (80% on large deals) .
  • SAP catalyst: Inclusion in SAP’s EPM package and SolEx PQ for Studio360 could structurally increase co-sell velocity through the RISE migration cycle; track Q2 launch milestones and Sapphire updates .
  • Public sector optionality: FedRAMP investment is a margin headwind near-term but offers a new TAM vector; revenue contribution conservatively minimal in FY25 plan, potential upside in H2/2025–2026 .
  • Balance sheet flexibility: ~$886M cash vs ~$893M debt; share repurchase expected to begin in Q1 2025 .

Additional Data Detail and Cross-Checks

  • Full year 2024 results: Revenue $653.336M (+11% YoY), non-GAAP OM 19.4%, free cash flow $164.0M; GAAP diluted EPS $1.45; non-GAAP diluted EPS $2.18 .
  • Quarterly cash flow: Q4 operating cash flow $43.8M; FCF $36.5M, consistent with seasonality and conference expense timing .
  • Non-GAAP definitions and forward reconciliation limits noted; non-GAAP excludes amortization, SBC, transaction-related, contingent consideration changes, etc. Forward reconciliation not provided .

All citations:

  • Q4 2024 press release/8-K: ; supplemental press release tables: .
  • Q4 2024 earnings call: .
  • Q3 2024 press release/call for trend/guidance: .
  • Q2 2024 press release for trend: .