BlackLine, Inc.

speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Matt Humphries, SVP of Investor Relations. Please go ahead.

Good afternoon and thank you for joining us today. With me on the call are Owen Ryan and Therese Tucker, Co-Chief Executive Officers of BlackLine, as well as Patrick Villanova, Chief Financial Officer. Before we get started, I'd like to note that certain statements made during this conference call that are not historical facts, including those regarding our future plan, objectives, and expected performance, in particular our guidance for Q3 and full year 2025, our forward-looking statements within the meaning of the Private Security Mitigation 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 the 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 in this call will be non-GAAP. A discussion of these non-GAAP financial measures and information regarding reconciliations of our historic GAAP versus non-GAAP results is available in our earnings release, which may be found on our investor relations website at .blackline.com or in our Form 8-K filed with the SEC today. Now, I'll 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 on today's call. For the past two years, Therese and I, alongside our dedicated colleagues, have relentlessly focused on shaping the next era of BlackLine. This journey, while demanding and not without its challenges, has only deepened our resolve to guide, power, and inspire our customers' finance transformations. The substantial progress you will hear about today has led to an important strategic evolution in our leadership. With great confidence in BlackLine's trajectory, Therese will now dedicate even more of her time and expertise to directly supporting our customer success. In turn, the board has entrusted me as BlackLine's sole CEO. This transition is a testament to the profound partnership the board has overseen between Therese and me, built on mutual respect and a shared commitment to BlackLine's mission. I am deeply grateful for her leadership, trust, and ongoing collaboration. To be clear, Therese remains a vital part of BlackLine, and this is an evolution of her role in maximizing its impact where it matters most, with our customers. Turning to the quarter, BlackLine delivered 7% revenue growth and a 22% non-GAAP operating margin. Our strategic shift to a platform company serving the office of the CFO is driving accelerated success, visible in our forward financial metrics and KPIs, and underpinned by disciplined -to-market execution. As a reminder, in November of last year, we laid out a number of strategic initiatives that support the company's refresh strategy. First was to deliver a platform, Studio 360, that can accelerate the growth of our business, and second was to enhance our -to-market strategy, targeting markets with the highest opportunity, accelerating our industry focus, improving the efficiency of our spend, and ultimately driving long-term customer value. And third was to refine our partner network to drive further leverage and global reach. Our second quarter results demonstrate substantial progress against all of these. Therese will speak about Studio 360 later, but as we look at our performance this quarter, you will see the tangible results of our improved -to-market strategy and enhanced partner network. We saw significant strength in both the volume and size of net new deals, with the average new deal size growing by an impressive 35% year over year. This growth was driven by the increased adoption of our full record to report capabilities and, critically, our new pricing model. Notably, our million-dollar customer count rose to 84, up 24% versus last year. This quarter, we leveraged a powerful combination of our platform, new pricing, and industry strategy to secure significant wins. First, we signed the largest deal in company history with an existing -to-cash customer. This age figure partner led expansion with an iconic global media and entertainment brand encompassed financial close, inter-company, and the adoption of our new pricing model. Our strong referenceability demonstrated by serving eight of the top 10 Fortune 1000 media and entertainment brands, coupled with this customer's proven success, were key in unlocking this expansion and underscores the power of our -to-end offerings. In oil and gas, where we also serve eight of the top 10 Fortune 1000 companies, our platform positioning and industry expertise led to a new win with one of Europe's top three players. We also signed a seven-figure expansion with Marathon Petroleum, expanding our relationship by unlocking more of our solutions and platform for their global teams. This demonstrates the scalable value of our offerings and the embedded opportunity within our customer base. With our deep industry expertise and via our SolEx partnership, we secured a new top five North American Life Sciences customer. This deal replaces legacy point solutions with our unified financial close and inter-company solutions, demonstrating our platform's power in a massive S4 migration. We've demonstrated why BlackLine was the first choice, best choice, safe choice, and ultimately the only choice for this company's critical transformation journey. In manufacturing, we signed the Dutch company NXP Semiconductors to a multi-solution financial close deal. BlackLine's platform, bolstered by our golden architecture with SAP, provided confidence for their finance operating model transition. Importantly, NXP is already live on several solutions, which reaffirms our continued progress in reducing implementation timelines and delivering quicker time to value for our customers. Finally, we secured two significant wins in APAC. We won a new deal with one of the top three largest Japanese banks and landed our largest ever win in APAC, a high seven-figure expansion for the top three Australian bank. Strong interest continues from major financial institutions, offering significant opportunities to build on this momentum. These large deals collectively demonstrate how the successful combination of our market-leading technology, domain and industry expertise, and customer-driven innovation are unlocking opportunities for BlackLine at a size and a pace we