BlackLine, Inc. Q4 FY2025 earnings call

Platform Strategy: Aligned commercial model with platform vision, shift to platform pricing unlocking value of Studio 360. Nearly three-quarters of new bookings in Q4 leveraged platform, with strategic products representing 33% of sales.### Enterprise Momentum: Winning deals with complex global enterprises through industry-specific outcomes, average new enterprise deal sizes up 41% in Q4.### Partners: Partner ecosystem critical, every deal over $500,000 in 2025 won with a partner, driving demand and global reach.### SAP: Golden architecture strategy delivering results, full product qualification for Studio 360, exploring integration with SAP's Jewel Copilot.### AI Pillars: Built on data, context, and agency. Data from tens of billions of transactions, context from 20 years of operational experience, and governance ensuring trust. Verity AI agents like Prepare, Collect, Accruals driving productivity and ROI.

Total revenue grew to $183,000,000, up 8%. Subscription revenue grew 8% with services revenue growth of 17%. Annual recurring revenue (ARR) was $702,000,000, up nearly 10% with an approximate 1.5% benefit from FX. Total remaining performance obligations (RPO) grew 23% to $1,100,000,000. Non-GAAP subscription gross margin remained strong at 82%, non-GAAP gross margin was approximately 80%, non-GAAP operating margin was nearly 25%, and non-GAAP net income attributable to BlackLine was $45,000,000 with a 25% non-GAAP net income margin.

For 2026, expected total GAAP revenue in range of $180,000,000 to $182,000,000 (8-9% growth), non-GAAP operating margin 18.5%-19.5%, non-GAAP net income $31,000,000 to $33,000,000. Full-year 2026 total GAAP revenue expected $764,000,000 to $768,000,000 (9.1-9.6% growth), non-GAAP operating margin 23.7%-24.3%, non-GAAP net income $172,000,000 to $180,000,000.

Q: Chris Quintero asked about RPO and customer adds above 250k.

A: Owen Ryan said RPO growth was due to multiyear renewal strategy and longer contracts with newer customers. Patrick Villanova added about landing bigger with platform pricing model and product-led growth.

Q: Steve Andrews asked about AI adoption and deal dynamics.

A: Owen Ryan mentioned generative vs agentic AI, with customers using things like journal risk analyzer. Jeremy Young noted customer interest in AI but cautiousness with policies.

Q: Alex Sklar asked about AI budgets and platform pricing.

A: Owen Ryan said demonstrating ROI and reliability helps find budget. Patrick Villanova discussed platform pricing adoption and its embedment in the guide.

Q: Patrick Soles asked about platform pricing and retention.

A: Patrick Villanova talked about platform pricing uptake and enterprise retention rates improving throughout the year.

Q: Daniel Jester asked about platform bookings and meeting customers where they are.

A: Owen Ryan said some customers were working through digital transformation, and moving to standardized bundle in 2026.

Q: Matt Van Vliet asked about go-to-market reengineering.

A: Owen Ryan discussed transformation in the sales organization, upgrades in teams, and continuing to improve.

Q: Robert Simmons asked about AI revenue contribution and 2026 growth.

A: Patrick Villanova mentioned AI contribution through platform pricing uplift and built-in consumption monetization.

Q: Billy Fitzsimmons asked about SAP contribution.

A: Owen Ryan said SAP contribution is steady at ~26% of revenue, with no material shift expected in 2026.