BlackLine, Inc.

Good afternoon and thank you for joining us today. With me on the call are Olin Ryan and Therese Tucker, Co-Chief Executive Officers of Blackline, as well as Mark Parton, Chief Financial Officer. Before we get started, I would like to note that certain statements made during this conference call that are not historical facts, including those regarding our future plans, objectives, and expected performance, in particular our guidance for Q2 and full year 2024, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent our outlook only as of the date of this call. While we believe any forward-looking statements made during the call are reasonable, actual results could differ materially, as these statements are based on our current expectations as of today and are subject to risks and uncertainties, including those stated in our periodic reports filed with the Securities and Exchange Commission, in particular our Form 10-K and Form 10-Q. We do not undertake and expressly disclaim any obligation to update or alter our forward-looking statements. whether as a result of new information, future events, or otherwise, except as required by applicable law. All comparisons we make on the call today relate to the corresponding period of last year, unless otherwise noted. Finally, unless otherwise stated, our financial measures disclosed on this call will be non-GAAP. A discussion of these non-GAAP financial measures and information regarding reconciliations of our historical GAAP versus non-GAAP results is currently available in our earnings release, which may be found on our investor relations website at investors.blackline.com or in our form, aka filed with the SEC today. Now, I will turn the call over to Blackline's Co-Chief Executive Officer, Owen Ryan.

Owen? Thank you, Matt, and good afternoon, everyone.

Thank you all for joining us today. Blackline exceeded revenue and profitability expectations in the first quarter with $157 million in total revenue a 17% non-GAAP operating margin, and $40 million in non-GAAP net income. While we are still in the early stages of implementing our new operating model, we are pleased with the progress we are seeing. I will review this progress, highlighting areas of early success and identifying those areas that require a bit more time to achieve operational maturity. Regarding execution, we are seeing an uptick in activity at the top end of our sales funnel. While the volume of deals is still lower than we want, this improvement in activity gives us some early indications of demand stabilization. In the first quarter specifically, we encountered several instances where larger multi-solution deals pushed out. As part of this, we still see customers and prospects maintaining their prudent and thoughtful purchasing behavior. Going forward, we expect to aggressively pursue these opportunities either directly or jointly with our partners. Next, efforts around elevating our market message and brand are progressing well. We are receiving positive feedback from both customers and partners indicating that our message, particularly around artificial intelligence and our industry-focused strategy, is generating favorable interest. On AI, This was evident during our recent Beyond the Black event in London, where innovation and AI dominated discussions among attendees. We believe that our innovation here, which Therese will detail shortly, is beginning to stand as a meaningful differentiator with the opportunity to drive and accelerate even deeper accounting and finance automation for our customers. We are also seeing signs that our industry approach is resonating strongly with our customers, partners, and prospects who see numerous opportunities to address their industry-specific challenges. In fact, because our approach has garnered such positive reception, we are accelerating and broadening our deployment schedule. Our commitment to delivering on the Black Line promise remains steadfast, with progress being made. While external metrics reflecting these efforts are still evolving, we see progress across our customer base, particularly in areas like adoption and engagement, but also with respect to customer experience. With additional innovation being embedded within our solutions, along with a refined and streamlined approach to pricing, which we expect to move forward with later this year, we see opportunities to enhance the value and ROI that customers receive while simultaneously making it easier to do business with Blackline. Next, we are seeing notable progress in our distribution efforts as we transition towards a more partner-powered model. Globally, we are experiencing more comprehensive engagement with our partners, especially within our solution pillars. For instance, within Invoice to Cash, partners are expressing interest in expanding their practices and collaborating with Blacklines. particularly in light of competitors shifting strategies or unmet promises. Also, we are seeing a building interest among our partners with our electronic invoicing presentment and payment offering. Partners are also actively seeking out leaders in the AI space to align for mutual growth opportunities. We are confident that our focus on innovating for the Office of the CFO will not only align with our collective objectives, but also stand to support our differentiation and market leadership. On retention, we are advancing various programmatic initiatives aimed at enhancing customer adoption and stickiness. These initiatives gained momentum late last year and have further accelerated with the implementation of our new operating model. As an example, we know that there are significant benefits from partner engagement at the start of a customer journey, including better adoption and elevated value delivery. As such, we have taken steps to more closely integrate our partners and customers at the outset of that process. While our first quarter retention rates fell slightly below expectations, we believe there is tangible progress being made. Our key focus on customer adoption underscores its significance as one of my top priorities. As testament to our commitment here, we recently appointed industry veteran Jimmy Dewan as our new Chief Customer Officer to spearhead these efforts and ensure that additional focus, scrutiny, and partner engagement remain paramount across our company. Turning to deal activity in the first quarter, while our net customer additions are not where we would like, mostly due to changes to our lower middle market targeting, we were pleased to see that many of our new logos were influenced or driven by partners, including SAP. In one example, we signed a federally-owned electric utility company that was burdened by too many manual processes and an outdated ERP. Through the combination of Blackline, SAP, and a key partner, we were able to offer a better way forward, one that offered modern technology, robust automation, and trusted partners to support their transformation journey. Notably, this is our second customer within the federal government space. In Europe, we signed a competitive multi-solution deal, again leveraging our Solex partnership with a global biotechnology company. As part of an ERP replacement, Blackline was selected to standardize, automate, and govern their critical finance and accounting processes, serving as a key partner during a multi-year transformation. As part of a phased approach, this deal provides us additional opportunities to support their needs as they grow. Also in Europe, we signed a net new deal with a leading chemical manufacturer as part of an ERP migration. Historically, the customer has leveraged Excel as their primary tool to support their accounting and finance processes, which had become unsustainable and lacked a proper global controls framework. Further, the customer understood that there were real benefits to both attracting and retaining talent by modernizing their financial technology landscape. in effect alleviating many executive level concerns by choosing to partner with Blackline. In invoice to cash, which remains a very topical set of solutions in today's interest rate environment, we saw some solid wins in customer expansions as well. Specifically, we expanded with an existing customer, a multinational food products company, who saw such success with their initial purchase they chose to expand even further and add our complete invoice to cash offering to additional geographies and business lines. We expect that over time, our relationship with this customer will continue to grow. In the middle market, we saw a number of competitive replacements driven by an interest in a more modern approach to both their close and consolidation processes. In one instance, a North American financial institution sought to replace an incumbent vendor due to a poor experience with a lack of real transformation and the Office of the CFO. Blackline's close and consolidation solutions were exactly what the customer was looking for and gave the customer the confidence to partner with a trusted leader. With that, I will turn it over to Therese to discuss how we are continuing to drive and deliver meaningful innovation for our customers. Therese?