UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________

Form 8-K
_____________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event Reported): August 1, 2019  

BLACKLINE, INC.
(Exact Name of Registrant as Specified in Charter)

Delaware001-3792446-3354276
(State or Other Jurisdiction of Incorporation)(Commission File Number)(I.R.S. Employer Identification Number)

 

21300 Victory Boulevard, 12th Floor
Woodland Hills, CA 91367
(Address of principal executive offices, including zip code)

(818) 223-9008
(Registrant's telephone number, including area code)

Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 [   ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 [   ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 [   ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 [   ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

 

       Emerging growth company [   ]

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [   ]

 

Title of each class  Trading
Symbol(s)
  Name of each exchange
on which registered
Common Stock, par value $0.01 per share  BL  

The NASDAQ Stock Market LLC

(Nasdaq Global Select Market)

 
 

Item 2.02. Results of Operations and Financial Condition.

On August 1, 2019, BlackLine, Inc. (the “Company”) issued a press release and will hold a conference call announcing its financial results for the second quarter ended June 30, 2019. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

The Company refers to non-GAAP financial information in both the press release and the conference call. A reconciliation of these non-GAAP financial measures to the comparable GAAP financial measures is contained in the attached press release.

This information is intended to be furnished under Item 2.02 of Form 8-K, “Results of Operations and Financial Condition” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits:

Exhibit Number Description
   
99.1 Press release issued on August 1, 2019.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 BLACKLINE, INC.
   
  
Date: August 1, 2019By: /s/ Mark Partin        
 Name: Mark Partin
 Title: Chief Financial Officer
  

EdgarFiling

EXHIBIT 99.1

BlackLine Announces Second Quarter Financial Results

LOS ANGELES, Aug. 01, 2019 (GLOBE NEWSWIRE) -- BlackLine, Inc. (Nasdaq: BL), today announced financial results for the second quarter ended June 30, 2019.

Therese Tucker, Founder and CEO, commented, “Q2 was a good quarter driven by strong demand for our solution and a record number of large deals.  BlackLine continues to be selected as the strategic partner of choice among organizations undergoing large, financial transformation projects.  With this as our foundation, we will continue to focus on driving growth and delivering value to our customers.”

Second Quarter 2019 Financial Highlights

Key Metrics and Recent Business Highlights

Financial Outlook

Third Quarter 2019

Full Year 2019

Guidance for non-GAAP net income attributable to BlackLine and net income attributable to BlackLine per share does not include 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 in the fourth quarter of 2016 of Runbook B.V. (the “Runbook Acquisition”), amortization of acquired intangible assets resulting from the acquisition of the company by its principal stockholders in 2013 (the “2013 Acquisition”) and the Runbook Acquisition, stock-based compensation, the change in fair value of contingent consideration, costs incurred in connection with our secondary offering, costs incurred with our shelf offering, and the adjustment to the value of the redeemable non-controlling interest to the redemption amount.  Reconciliations of non-GAAP net income attributable to BlackLine and net income attributable to BlackLine per share guidance to the most directly comparable U.S. GAAP measures, or net income (loss) attributable to BlackLine and net income (loss) attributable to BlackLine 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 income attributable to BlackLine and net income  attributable to BlackLine per share. The company expects the variability of the above changes could have a significant, and potentially unpredictable, impact on its future GAAP net income (loss) attributable to BlackLine and net income (loss) attributable to BlackLine per share.

Quarterly Conference Call

BlackLine, Inc. will hold a conference call to discuss its second quarter results at 2:00 p.m. Pacific time on Thursday, August 1, 2019. A live audio webcast will be accessible on BlackLine’s investor relations website at https://investors.blackline.com. The call can also be accessed domestically at (844) 229-7595 and internationally at (314) 888-4260, passcode 7079809. A telephonic replay will be available through Thursday, August 8, 2019 at (855) 859-2056 or (404) 537-3406, passcode 7079809. A replay of the webcast will be available at https://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 automate, centralize and streamline financial close operations and other key F&A processes for large and midsize organizations. Over 2,800 customers with users around the world trust BlackLine to help ensure balance sheet integrity and confidence in their financial statements. For more information about BlackLine, Inc., visit https://www.blackline.com.

Forward-looking Statements

This release and the 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, our expectations for our business in 2019 and our ability to execute on our long-term plans and key initiatives, expectations regarding user count, free cash flow, revenue mix, gross margin, operating expenses and capital expenditures, the impact of seasonality on the company’s financial results, expectations regarding our SAP relationship, quarterly fluctuations, market opportunity, competitive position, 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, sales strategy and product innovation, expansion of relationships with partners, customer service initiatives and expectations regarding deal size and increased focus on strategic products.

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 or increase the number of users; the company’s ability to manage growth and scale 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, channel partners and alliance partners; 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 and their performance and productivity; fluctuations in our financial results due to long and increasingly variable sales cycles, 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; cyber attacks and the risk that the company’s security measures may not be sufficient to secure its customer or confidential data adequately; 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 Annual Report on Form 10-K for the year ended December 31, 2018 filed with the Securities and Exchange Commission on February 28, 2019. Additional information will also be set forth in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2019. 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 August 1, 2019 certain financial measures that have not been prepared in accordance with GAAP defined as “non-GAAP financial measures,” which include (i) non-GAAP gross profit and non-GAAP gross margin, (ii) non-GAAP operating expenses, (iii) non-GAAP income (loss) from operations, (iv) non-GAAP net income (loss) and non-GAAP net income (loss) per share, and (v) 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 Gross Profit and Non-GAAP Gross Margin.  Non-GAAP gross profit is defined as GAAP revenues less GAAP cost of revenue adjusted for 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 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, the change in fair value of contingent consideration, costs incurred in connection with our secondary offering, and costs incurred in connection with our shelf offering.  BlackLine believes that presenting each of the non-GAAP operating expenses is useful to investors as it eliminates the impact of certain cash and non-cash expenses and allows a direct comparison of operating expenses between periods.

Non-GAAP Income (Loss) from Operations. Non-GAAP income (loss) from operations is defined as GAAP income (loss) from operations adjusted for the amortization of acquired intangible assets resulting from the 2013 Acquisition and the Runbook Acquisition, stock-based compensation, the change in fair value of contingent consideration, costs incurred in connection with our secondary offering, and costs incurred in connection with our shelf offering. The company believes that presenting non-GAAP income (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 and other related costs in order to allow a direct comparison of loss from operations between all periods presented.

Non-GAAP Net Income (Loss) attributable to BlackLine. Non-GAAP net income (loss) is defined as GAAP net income (loss) adjusted for the impact of the provision for (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, amortization of acquired intangible assets resulting from the 2013 Acquisition and the Runbook Acquisition, stock-based compensation, the change in the fair value of contingent consideration, the change in fair value of the common stock warrant liability, costs incurred in connection with our secondary offering, costs incurred in connection with our shelf offering, and the adjustment to the value of the redeemable non-controlling interest to the redemption amount.  Non-GAAP diluted net income (loss) per common share includes the adjustment for shares resulting from the elimination of stock-based compensation.  The company believes that presenting non-GAAP net income (loss) is useful to investors as it eliminates the impact of items that have been impacted by the 2013 Acquisition and the Runbook Acquisition 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 used in operating activities less cash flows used 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 August 1, 2019 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 June 30, 2019.

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. Historically, BlackLine’s products were priced based on the number of users of its platform. Over time, the company has begun to sell an increasing number of non-user based products with fixed or transaction-based pricing.  For this reason, we believe the growth in the number of total users is less correlated to the growth of the business overall.

Media Contact:
Kimberly Uberti
BlackLine
kimberly.uberti@blackline.com

Investor Relations Contact:
Alexandra Geller
BlackLine
alex.geller@blackline.com



BlackLine, Inc.
Consolidated Balance Sheets
(in thousands)
(unaudited)
   
  June 30, 2019 December 31, 2018
ASSETS    
Cash and cash equivalents $  63,255  $  46,181 
Marketable securities    81,939     86,396 
Accounts receivable, net of allowance    79,135     74,902 
Prepaid expenses and other current assets    11,453     14,042 
Total current assets    235,782     221,521 
Capitalized software development costs, net    9,252     9,023 
Property and equipment, net    13,762     13,536 
Intangible assets, net    21,629     27,785 
Goodwill    185,138     185,138 
Operating lease right-of-use assets    13,459     - 
Other assets    44,480     36,865 
Total assets $  523,502  $  493,868 
     
LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST, AND STOCKHOLDERS' EQUITY
Accounts payable $  2,963  $  3,442 
Accrued expenses and other current liabilities    20,460     24,705 
Deferred revenue    144,300     129,074 
Short-term portion of operating lease liabilities    5,017     - 
Short-term portion of contingent consideration    2,008     2,008 
Total current liabilities    174,748     159,229 
Contingent consideration    4,492     4,308 
Deferred tax liabilities    1,098     1,116 
Deferred revenue, noncurrent    174     277 
Operating lease liabilities    11,687     - 
Other long-term liabilities    -     2,982 
Total liabilities    192,199     167,912 
     
Redeemable non-controlling interest    4,118     4,387 
     
Stockholders' equity:    
Common stock    553     547 
Additional paid-in capital    470,681     451,571 
Accumulated other comprehensive income    299     45 
Accumulated deficit    (144,348)    (130,594)
Total stockholders' equity    327,185     321,569 
     
Total liabilities, redeemable non-controlling interest, and stockholders' equity $  523,502  $  493,868 
     

 

BlackLine, Inc.
Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
         
  Quarter Ended Six Months Ended
  June 30, June 30,
   2019   2018   2019   2018 
Revenues        
Subscription and support $  66,066  $  53,047  $  127,340  $  101,672 
Professional services    3,598     2,407     6,453     5,066 
Total revenues    69,664     55,454     133,793     106,738 
Cost of revenues        
Subscription and support    11,588     9,493     22,420     18,874 
Professional services    3,356     2,373     6,142     4,598 
Total cost of revenues    14,944     11,866     28,562     23,472 
Gross profit    54,720     43,588     105,231     83,266 
Operating expenses        
Sales and marketing    37,192     32,150     73,040     61,377 
Research and development    10,829     7,811     21,136     14,740 
General and administrative    12,677     12,458     26,356     23,540 
Total operating expenses    60,698     52,419     120,532     99,657 
Loss from operations    (5,978)    (8,831)    (15,301)    (16,391)
Other income (expense)        
Interest income    734     507     1,429     896 
Interest expense    -     —     -     (4)
Other income, net    734     507     1,429     892 
Loss before income taxes    (5,244)    (8,324)    (13,872)    (15,499)
Provision for income taxes    146     133     351     113 
Net loss $  (5,390) $  (8,457) $  (14,223) $  (15,612)
Net loss and adjustment attributable to redeemable non-controlling interest    (165)    -     (415)    - 
Net loss attributable to BlackLine, Inc. $  (5,225) $  (8,457) $  (13,808) $  (15,612)
         
Basic net loss attributable to BlackLine, Inc. per share:        
Basic net loss attributable to BlackLine, Inc. per share $  (0.09) $  (0.16) $  (0.25) $  (0.29)
Shares used to calculate basic net loss per share    55,171     53,555     55,004     53,354 
Diluted net loss attributable to BlackLine, Inc. per share:        
Diluted net loss attributable to BlackLine, Inc. per share $  (0.09) $  (0.16) $  (0.25) $  (0.29)
Shares used to calculate diluted net loss per share    55,171     53,555     55,004     53,354 
         

 

BlackLine, Inc.
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
         
  Quarter Ended Six Months Ended
  June 30, June 30,
   2019   2018   2019   2018 
CASH FLOWS FROM OPERATING ACTIVITIES:        
Net loss attributable to BlackLine, Inc. $  (5,225) $  (8,457) $  (13,808) $  (15,612)
Net loss and adjustment attributable to redeemable non-controlling interest    (165)    -     (415)    - 
Net loss    (5,390)    (8,457)    (14,223)    (15,612)
Adjustments to reconcile net loss to net cash provided by operating activities:        
Depreciation and amortization    5,787     5,537     11,476     10,931 
Noncash lease expense    1,215     -     2,460     - 
Change in fair value of contingent consideration    193     78     184     190 
Stock-based compensation    8,012     5,393     14,464     9,367 
(Accretion)/amortization of purchase discounts/premiums on marketable securities, net    (364)    (237)    (773)    (304)
Net foreign currency (gains) losses    (127)    462     1     403 
Deferred income taxes    (18)    (65)    (18)    (307)
Provision for (benefit from) doubtful accounts receivable    48     8     73     (43)
Changes in operating assets and liabilities        
Accounts receivable    (6,604)    (4,406)    (4,271)    652 
Prepaid expenses and other current assets    812     (733)    2,601     (2,624)
Other assets    (5,137)    (2,169)    (7,636)    (3,454)
Accounts payable    (1,892)    (3,981)    (1,066)    (4,910)
Accrued expenses and other current liabilities    2,189     6,804     (4,051)    (1,131)
Deferred revenue    11,254     6,592     15,123     13,150 
Operating lease liabilities    (1,358)    -     (2,698)    - 
Other long-term liabilities    -     (145)    -     195 
Net cash provided by operating activities    8,620     4,681     11,646     6,503 
         
CASH FLOWS FROM INVESTING ACTIVITIES:        
Purchases of marketable securities    (39,547)    (36,739)    (69,522)    (66,914)
Proceeds from maturities of marketable securities    43,193     33,969     74,988     62,449 
Capitalized software development costs    (1,367)    (1,460)    (2,599)    (3,113)
Purchases of property and equipment    (886)    (2,062)    (1,989)    (3,696)
Net cash provided by (used in) investing activities     1,393     (6,292)    878     (11,274)
         
CASH FLOWS FROM FINANCING ACTIVITIES:        
Proceeds from employee stock purchase plan    2,552     -     2,552     - 
Principal payments on capital lease obligations    -     -     -     (443)
Proceeds from exercises of stock options    1,801     2,612     4,565     6,065 
Acquisition of common stock for tax withholding obligations    (859)    (3,197)    (2,588)    (3,213)
Financed purchases of property and equipment    (145)    -     (145)    - 
Net cash provided by (used in) financing activities    3,349     (585)    4,384     2,409 
         
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash    220     -     164     - 
Net increase (decrease) in cash, cash equivalents, and restricted cash    13,582     (2,196)    17,072     (2,362)
Cash, cash equivalents, and restricted cash, beginning of period    49,945     31,338     46,455     31,504 
Cash, cash equivalents, and restricted cash, end of period $  63,527  $  29,142  $  63,527  $  29,142 
         
Cash and cash equivalents at end of period $  63,255  $  28,682  $  63,255  $  28,682 
Restricted cash included within prepaid expenses and other current assets at end of period    19     200     19     200 
Restricted cash included within other assets at end of period    253     260     253     260 
Total cash, cash equivalents, and restricted cash at end of period shown in the consolidated statements of cash flows $  63,527  $  29,142  $  63,527  $  29,142 
         

 

BlackLine, Inc.
Reconciliations of Non-GAAP Financial Measures
(in thousands, except percentages and per share data)
(unaudited)
         
  Quarter Ended Six Months Ended
  June 30, June 30,
   2019   2018   2019   2018 
Non-GAAP Gross Profit        
Gross profit $  54,720  $  43,588  $  105,231  $  83,266 
Amortization of developed technology    1,712     1,708     3,423     3,423 
Stock-based compensation    1,159     682     2,047     1,520 
Total Non-GAAP Gross Profit $  57,591  $  45,978  $  110,701  $  88,209 
Gross margin  78.5%  78.6%  78.7%  78.0%
Non-GAAP gross margin  82.7%  82.9%  82.7%  82.6%
         
Non-GAAP Operating Income:        
Loss from operations $  (5,978) $  (8,831) $  (15,301) $  (16,391)
Amortization of intangible assets    3,079     3,312     6,156     6,635 
Stock-based compensation    8,012     5,393     14,464     9,367 
Change in fair value of contingent consideration    193     78     184     190 
Shelf offering costs    -     224     212     401 
Total non-GAAP operating income $  5,306  $  176  $  5,715  $  202 
         
Non-GAAP Net Income Attributable to BlackLine, Inc.        
Net loss attributable to BlackLine, Inc. $  (5,225) $  (8,457) $  (13,808) $  (15,612)
Benefit from income taxes    (18)    (65)    (18)    (191)
Amortization of intangible assets    3,079     3,312     6,156     6,635 
Stock-based compensation    8,012     5,393     14,464     9,367 
Change in fair value of contingent consideration    193     78     184     190 
Shelf offering costs    -     224     212     401 
Adjustment to redeemable non-controlling interest    54     -     54     - 
Total non-GAAP net income attributable to BlackLine, Inc. $  6,095  $  485  $  7,244  $  790 
Basic non-GAAP net income attributable to BlackLine, Inc. per share:        
Basic non-GAAP net income attributable to BlackLine, Inc. per share $  0.11  $  0.01  $  0.13  $  0.01 
Shares used to calculate basic non-GAAP net income per share    55,171     53,555     55,004     53,354 
Diluted non-GAAP net income attributable to BlackLine, Inc. per share:        
Diluted non-GAAP net income attributable to BlackLine, Inc. per share $  0.10  $  0.01  $  0.12  $  0.01 
Shares used to calculate diluted non-GAAP net income per share    58,649     57,462     58,371     56,972 
         
         
  Quarter Ended Six Months Ended
  June 30, June 30,
   2019   2018   2019   2018 
Non-GAAP Sales and Marketing Expense:        
Sales and marketing expense $  37,192  $  32,150  $  73,040  $  61,377 
Amortization of intangible assets    (968)    (966)    (1,936)    (1,935)
Stock-based compensation    (3,558)    (2,308)    (6,552)    (3,745)
Total non-GAAP sales and marketing expense $  32,666  $  28,876  $  64,552  $  55,697 
         
Non-GAAP Research and Development Expense:        
Research and development expense $  10,829  $  7,811  $  21,136  $  14,740 
Stock-based compensation    (1,235)    (675)    (2,179)    (1,104)
Total non-GAAP research and development expense $  9,594  $  7,136  $  18,957  $  13,636 
         
Non-GAAP General and Administrative Expense:        
General and administrative expense $  12,677  $  12,458  $  26,356  $  23,540 
Amortization of intangible assets    (399)    (638)    (797)    (1,277)
Stock-based compensation    (2,060)    (1,728)    (3,686)    (2,998)
Change in fair value of contingent consideration    (193)    (78)    (184)    (190)
Shelf offering costs    -     (224)    (212)    (401)
Total non-GAAP general and administrative expense $  10,025  $  9,790  $  21,477  $  18,674 
         
Total Non-GAAP Operating Expenses $  52,285  $  45,802  $  104,986  $  88,007 
         
Free Cash Flow        
Net cash provided by operating activities $  8,620  $  4,681  $  11,646  $  6,503 
Capitalized software development costs    (1,367)    (1,460)    (2,599)    (3,113)
Purchases of property and equipment    (886)    (2,062)    (1,989)    (3,696)
Financed purchases of property and equipment    (145)    -      (145)    -  
Free cash flow $  6,222  $  1,159  $  6,913  $  (306)