Q2 2021 Blackline Inc Earnings Call
[music].
Ladies and gentlemen, thank you for standing by and welcome to the second quarter 2021, Black 1 earnings conference call. At this time, all participants are in a listen only mode.
The speaker's presentation there'll be a question and answer session to ask a question. During this session you will need to get the Star then the 1 key on you touched on the telephone.
If you would call offer assistance. Please press Star then zero.
I would now like to hand, the conference over to your Speaker host Alexandra Geller, Vice President of Investor Relations at Black line.
Please go ahead.
Good afternoon, and thank you for your participation today with me on the call is Marc Huffman, Chief Executive Officer of Black line, and Mark Partin, Chief Financial Officer.
Financial measures and information regarding reconciliation an hour GAAP versus non-GAAP results is currently available in our press release, which may be found on our Investor Relations website at investors Blackline Dot com or an hour form 8-K filed with the SEC today.
Now I will turn the call over to Mark to begin.
Good afternoon, everyone and thank you for joining us today.
We delivered and the outstanding second quarter Bill.
Building on last quarter strong performance, we accelerated both billings and revenue growth.
R Q2 performance demonstrates the value, we're bringing to the market is resonating now more than ever as more companies prioritize digital finance transformation.
Underpinning this momentum is improving global demand and with budgets for financial close management opening up our sales team delivered another quarter of great execution across all areas of the business.
Now, let's skive into the highlights of the quarter.
We continue to see an increasing trend of large digital transformation deals as budgets for finance transformation opened back up and companies prioritize digital transformation.
This large deal trend was consistent for both new business and account growth.
It in queue too we added a record number of large quality new logos with the help of our partner ecosystem.
Among our existing customers. We saw continued expansion of wallet share as our large customers grew larger still with up sales cross cells and the addition of strategic products, specifically with uptake from transaction matching and R. A R automation products.
Our ability to serve the largest organizations.
Close.
This demand combined with an increasing traction from our global partner ecosystem drove strong wins abroad and grew our international revenue to 28% of the total up from 25% the prior year.
Demand for accounts receivable automation was strong with continued momentum for our automation offering.
We increased the capabilities of our platform with the recent introduction of our intelligence in March and although it's very early we're pleased to see initial traction with this product.
We're on track to further deepen our automation offering with plans to release, our next day, our product in Q4 of this year.
And of course, we continue to drive success for our customers our customer success team is hard at work, helping our customers optimize their black line instance, with adoption and utilization workshops self service training product support and a vibrant black line community, resulting in happy reference book and engaged.
Customers.
And with our growing strategic product portfolio, we continue to differentiate our offering and grow the potential for expansion uplift.
We believe this momentum validates the mission critical nature of finance transformation and Black line value proposition.
We're hearing from our customers and our partner that demand for finance transformation is stronger than ever before.
As the market leader, we believe there is a tremendous opportunity for us to capture that demand and stay ahead of it.
So how are we going to do that.
You've long heard us talk about our commitment to customer success over.
Over the years, we have invested millions of dollars in customer success by growing our success teams driving education through workshops, and training outreach and increasing customer engagement with beyond the black our modern accounting summits and strategic client forums.
As the market leader, we believe it's incumbent upon us to lead our customers to deploy more efficient and strategic accounting and finance processes.
And we have found the companies around the world need our leadership now more than ever.
With today's companies facing an acute talent shortage executives are being asked to do more with the same or even fewer resources.
This is where black line can really make the difference we automate time consuming and manual tasks to free up valuable finance and accounting resources and.
And even black line customers have considerable room to optimize their black line instances and drive greater automation and resource capacity.
As such the next stage of our investment in customer success is the recently introduced Black line optimization Academy.
Okay journey, rather than reactively when they encounter an issue.
With more than 20 years of experience in our market. This commitment to customer success is a core tenet of our differentiation.
We believe we are unique in our ability to take our customers on this journey from adoption to education and optimization. We've seen this model generate incredibly strong relationships with our customers.
Driving increased engagement and usage of our platform.
And his customers gained value from Blackline, we see greater adoption and platform expansion as customers progress towards their long term goals of digital finance transformation.
Our ability to drive customers success and solve for resource capacity is resonating with companies of all sizes, but particularly for those at the highest end of the market.
And Q2, we saw some of the largest companies around the world embark on transformation projects with Blackline.
To name a few.
A fortune 200 technology company based in Hong Kong has a company wide digital transformation mandate.
[noise] limited by Excel manual processes, an in house solution, they're cheap digital transformation officers set up a task force to drive efficiency across the global finance team increased transparency and visibility across shared services and focus on strategic projects such as they are asked for hot on migration.
We were able to leverage our relationship and 1 of our global S size was advising the company's executive stakeholders around their digital transformation roadmap to create a world class solution that consists of 15, other finance initiatives and aligns with their corporate objectives to achieve leanne modern accounting.
And Q2, this customer became our largest deal a quarter with the purchase of our finance transformation solution and our transaction matching engine to automate high volumes of reconciliation for accruals and other receivable accounts.
Given the prioritization of finance transformation and the support of our partner network. The deal closed in a rapid 5 months.
Although her relationship is just getting started there are extensive plans to deploy across their global shared services organization.
And add additional products that they look to blackline is the backbone of their finance transformation journey.
A fortune 20 retailer based in North America became a black my customer in 2017 with the purchase of our finance transformation solution and transaction matching.
Over time, they rolled out to more users across their global accounting organization.
And 2020 this company brought on a new Chief Accounting officer, a former Blackline user at several prior company, who recognized that they were not using blackline to their full capability and made it his mission to turn their finance accounting organization into a highly developed automated team with Optimised business <unk>.
Assesses working with our customer success team. They identified 137 different use cases that could be automated with our matching and journals functionality on their first task such as cash depositary.
Negative cash rectum reclassification tax reconciliation and have since identified more opportunities for optimization.
In a year and a half since this executive joined they have significantly increased usage of our solution, resulting in exponential value for their organization net.
Next on the agenda with solving from the manual challenges around large and growing volumes of intercompany transactions.
And Q2, they purchased are entered company hub to establish and drive policy across their full scope of intercompany accounting transactions and drive reporting at a legal entity level with this purchase the retailer joints are growing list of customer spending $1 million for more than a RR with blackline.
A fortune 400 pharmaceutical company headquartered in London first became a blackline customer in 2019 with the purchase of our finance transformation sushi.
Over the past year with strong partnering from E Y we were able to demonstrate significant roy around efficiency governance and control.
As a result this company firmly declared that Blackline was indisputably at the heart of their future transformation in a queue to the expanded their black light footprint with additional users as they embark on a global rollout Ah.
Blackline across a global accounting insured services organization.
There are ongoing discussions for future expansion across the rest of our platform.
As you can see.
The depth of our engagement with our new and existing logos has generated significant value for our customers and yielded strong financial results for the quarter.
And now alternative over to Mark pardon to discuss in more detail.
Thank you Mark and good afternoon, everyone.
Our strength in the quarter came from continued improvement in the global demand environment solid sales execution.
Our performance was strong across all areas of the business.
And drove a fourth consecutive quarter of acceleration in billings growth as well as acceleration on revenue growth 23 per cent.
As a result Q2 results came in ahead of expectation for revenue profitability and cash flow.
Moving to our key performance for the quarter, we added 116, net new customers and a quarter for a total of 3598 customers.
$10, we generated $12 million in operating cash flow and $8 million in free cash flow due to higher than expected profitability and cash collection.
We ended the quarter with approximately 1.17 billion in cash cash equivalent and marketable securities.
Turning now to guidance.
For the third quarter of 2021.
Total GAAP revenue is expected to be in the range of $106.5 million to $107.5 million.
On the bottom line, we expect to report net income attributable to Black line in the range of $7 million to $8 million or 11 to 13 cents on a per share basis.
Share count will be approximately 62.5 million diluted way.
[noise] weighted average shares.
For the full year 2021.
Total GAAP revenue is expected to be in the range of $420 million to $423 million.
From the bottom line, we expect to report net income attributable to Black line in the range of $28 million to $30 million or 45 to 48 cents on a per share basis.
Our share count will be approximately 62, and a half million diluted weighted average chairs.
In summary, we are very pleased to see another quarter of strong execution as demand for finance transformation gains momentum.
Our performance throughout the first half of the year gives us increasing confidence in our growth initiatives and our ability to execute on them.
We remain focused on capitalizing on the longterm opportunities for accounting transformation and driving further momentum in our business.
As the market continues to recover we feel good about black lines leadership position and our ability to capture the tremendous opportunities ahead of us.
And now we will take your questions.
Ladies and gentlemen, as a reminder to ask a question you would need to ask you won't need to pass the star than the 1 key on your attached somehow fun to a giant question. Please pass the pound key they send Bob I'll be compiled a kennedy of Austin.
Now first question coming from the lineup stop Oliver with Bird Yeah line itself.
[noise] Hey, great. Thank you good evening, thanks for taking my questions. The first 1 is it was nice to see the new customer growth picking up in the quarter. So solitaire.
Wanted to get a little bit more color on that Mark Hofmann relative too I know you mentioned, a very strong quarter for for large enterprises and it seems like you guys are kind of recovered a little bit of the map side from last quarter. So I wanted to touch on that I also wanted to just ask about the net revenue retouching, obviously didn't live with what you guys had expect.
But there's been a lot of investments in.
And Ah you know.
You know getting a customer's too for upsell across so and it just curious you know it how you guys are seeing that it.
Sounds like it's poised to be better in the second half, but how we should we should think about I know, that's a backward looking indicator and you know and and and and and how is the virtual selling motion going for you guys. This year and then I had a quick follow up.
Right, Thanks, Rob I'll handle maybe the.
The first and third and that Mark talk about the net revenue retention. So I'd say a fairly broad based performance, we're very very pleased with new logo performance.
Both mid market and enterprise.
Obviously, the mid market, we're really focused on their morning, modern accounting playbook, that's really going well for US we had strength in enterprise new customer acquisition, and then some nice size new customer lands there.
And then there are several other dynamics gave as what I thought was really strong quarter.
In terms of so I'd say, it's our initiatives, which we continue to focus on moderate carrying playbooks, so lex customer expansion initiatives combined with.
A strong continued demand strengthening around us.
You want to comment on net revenue attention idea, yeah rod thinks.
Our net revenue retention rate, where it is today as a function of last year as you mentioned prior to the pandemic. We had moved retention rate up close to the 110.111 number from approximately where it was today, we expect to see something similar to that trend and it takes time it doesn't all moving a quarter, but it moves.
This 12.13 months demand curve increase so that number will continue to move up related to our investments and expanding within our existing accounts the product portfolio.
So that we're starting to see demand come back for it will take a little bit of time as we worked through last year.
Pandemic and then lastly, Rob I think you'd asked about the remote sales motion and I would say, there's been really no material impact to us.
Demand generation.
Boat selling.
Even remote delivery.
<unk> continued to focus and execute on our initiatives there.
And.
As we mentioned we feel quite good about the performance we had an all of those dimensions and Q2.
That's great, but I'm getting a little greedy here I realized because I squeezed a coupla when bookmark part and on the you guys.
Second quarter in a row of really strong up activity at a pocket clearly you guys your products or a resonating over there and I'm just curious I know a lot of that has been partner led but.
Is that gonna be the need for any additional investment over there.
You have to kind of go after that as you think about the costs going for that.
Yeah, I think you're right. It's 1 it was a record quarter for us in APEC, we are seeing good traction in Japan with.
With our entry there several years ago, it's starting to get traction the.
The leadership and investment that we've been making there is paying off with our team and our partnership so when we see demand we typically invest in it so we're doing that and and our geography, so to be able to step up to 28% International revenue mix we.
Think that's right on course, with where we would expect to be today and.
And then Rob what I would say in terms of the international growth <unk> has been really beneficial force. There. We have another customer example, we site there from southeast Asia. That's that relationship was really critical of that said, we continue to succeed with most all including Oracle major ERP players and that those international <unk>.
<unk> as well.
Great. Thanks again.
Thank you.
Our next question coming from the lineup mass toddler with marine play on itself.
Everybody. Thanks for taking my questions and maybe just start with maybe wanted to at a high level I mean, clearly seems like from.
From your commentary everything that's going on with solar from partners.
As you said this is prioritization of finance transformation is clearly increasing but if you think about your overall demand environment.
And especially the the things that have been passed because of Covid.
I mean, we had free COVID-19 levels. This point in terms of spending and demand that you're seeing outside of the kind of acceleration of prioritization of these initiatives or would we still have some ways to go on that phone.
Yeah, I'll start just just effectively a quarter.
Second quarter, a year ago was our lowest point during the pandemic. So clearly we're getting the benefit of an increasing.
Demand off of that low point, the first half of this year haven't yet gotten to where we would think of as.
A pre pandemic level.
It's faster and the first half we've been more pleased and more successful with demand environment, and we're still looking to sort of getting back to a more normalized curve.
As we move through to the end of the year.
And the only thing I would add to that.
Really no notion in our business now of impacted industries per se, we're seeing a good return of demand across the board.
And the industry's day.
Perhaps a year ago, we would have labeled as under watcher potentially impacted and.
Programs to try to help those customers.
That's that's behind Us now and.
And so that's no longer a factor.
Got it got it that's helpful.
And then maybe 1 on the <unk>.
<unk> partnership here is.
Interesting to see that announcement.
Yeah. It was earlier this week or last week.
And then probably a little early to ask how it's how it's going system has just announced but maybe from a higher level. When you think about the various functions in the opposite the CFO treasurer and controller ship.
And then Mark partner I've talked about moving past, but.
The large enterprise segment of the market those 2 relative historically been somewhat separated.
Much of the pause last year are you starting to reconnect with are you seeing back in the market and then looking forward. How much is left how many opportunities do you think you can still sort of re trays.
For the back half of the year.
But I don't know that we want to get that specific in how many and how much pipeline that could be re traded.
Certainly.
Pent up notion to what we've seen over and I would describe this as starting maybe in Q4 expanding into Q1 and Q2 as demand environment.
Expand as you see these people returning to the.
To prioritizing these things so certainly some of the experience.
Experience that we had in a strong quarter in Q2 was based on that some of it was on.
On the back of these big more transformative things that would take some time and some of those things were things that were paused equal.
Equally as much there was pipeline that was created during the pandemic that we're executing on.
And executed quite well on and there is continued focus I think this trend.
Being at the early innings of a sustained investment cycle in accounting and finance automation with digital transformation.
Is what's at play here.
Great very helpful. And then I guess as you think about.
A greater demand for for projects in the finance and accounting Department.
But how much of the how much of the budgets growing and maybe thinking about it in the context of our.
Are you landing a little bit larger than you have in the past or at least relative to last year.
Are you getting greater attach rates of various modules upfront.
Or are you still seeing sort of a smaller landing with the intention of expansion as they sort of work into it and things reopen a little bit more.
That's a great question because.
I think in 2 ways first in the enterprise, it's a bit of all of that math.
We have been.
<unk> seen.
Seen accelerated growth in our strategic product portfolio now over these last 3 or 4 or 5 quarters as we've come out of the pandemic. Those attach rates are driven by our efforts and investment in digital transformation.
Leadership, right, our customer teams and our sales teams really helping our existing customers with that expansion and helping new customers with larger deals.
Working with SAP and the <unk> partnership to land with a real transfer finance transformation solution that can be implemented and effective very quickly time to value and.
And shortening that time to value is really important to us from the success of the customer and their ability to grow so on the enterprise accelerated growth rates in our product portfolio is coming from both.
Existing customers attach and also larger landing, we've had significant <unk> and deal size and our enterprise our average deal size in our enterprise today is 170000, which is significantly higher over this last year or 2 related to our investments there in the midmarket.
We've begun to moderate accounting playbook, a number of quarters, maybe almost 2 years ago and the investment in that leadership is allowing attach rates and more products in the mid market and that we have seen also great acceleration in not just expansion once we land, but also upfront.
With for example transaction matching.
And that's given us a lot of confidence that that digital transformation and that investment.
And our customers.
Growth is paying off.
Wonderful thank you.
And as a reminder, ladies and gentlemen to ask a question. Please press. The Star then the 1 key on your Touchtone telephone.
And our next question coming from the line of Alex Sklar with Raymond James Your line is open.
Great. Thank you Mark I wanted to ask you about the SMB channel success, I know theres been a lot of investment there in terms of the enablement of S&P reps.
You talked about more vertical packaging through that channel I am sure Theres, even more thats kind of gone into but can you just give a little bit more color on what's kind of been working there. It sounds like demand has been great, but in terms of kind of the SMB selling motion and the enablement side from from Black 1 could you give a little bit more color on where you've had some stuffs. Thanks, yes.
Yes, Thank you Alex.
That's an area we've been investing for some time and at some point.
It's like pushing a rock up the hill is the early side and at some point you start to build momentum from it and you get really good at it and I feel like.
No where near that point, it was our strongest quarter yet.
Strong logo ads.
We continued benefiting from the expansion opportunities of the customers that we have landed and then on the same sort of.
Pat that we take customers that are direct black line customers, we benefited from the expansion there.
It's increasingly bringing some more strategic deals bigger international wins, and we would previously have we've had.
2 quarters in a row, where some of the customers that we focus on and the stories.
In.
Our remarks have been select wins internationally.
We're also seeing us as the beneficiary of their rise initiative keeping in mind that rise initiative is where they've taken and tried to package up their leadership on how to get people to the cloud.
They're really good at getting good at pitching that with black line as sort of a prerequisite towards moving towards the cloud.
And all of this culminating in a great quarter for us in.
They recognize that they awarded us their Pinnacle award select partner of the year recently.
Yes, that's correct.
All right good color so.
The other thing in the prepared remarks, a lot of color about the optimization Academy customer success, and so sticking with that theme I wanted to ask you about I saw the launch of your first catalyst that I know you talked about the user conference last year around bank reconciliation. So can you just remind us on the strategy. There I think following on the success of map and what's been the early.
Back or adoption.
Sure. So this is a great question.
A lot to it so bear with me.
What we're trying to do here is really differentiate black line.
Basis based on our depth on our breadth and our customer Centricity, we feel like those 3 things are the things that make us different from all others were the leader in the category with more experience than anybody else and it's deep the optimization Academy is just 1 way, we're sort of capitalizing on that.
Again more experience than anyone else very customer centric brand.
We've launched our first 1 very pleased we had 15 customers participate.
60 actual participants.
These are a range to help people understand that depth and breadth across those 9 core accounting processes and how black client can further expand their journey and take them from where they are which many of those customers are very happy blast 1 black line customers put to complete that view of those non accounting processes on black line.
And modernizing those things.
We just feel like that really highlights the depth breadth and customer centricity of Black line.
Okay, great. Thank you.
And our next question coming from the line of Andrew de Gasperi with Darin break your line is open.
Thanks for taking my question I don't know follow up in terms of the net retention rate I know you mentioned, it's a 12 month metric, but I was curious.
For this year, if we wanted to exclude.
Say the worst 2 quarters I mean, we're just say generally that metric is already above this level and thats why you are confident it's going to tick up.
Yes.
In the last 2 quarters the demand that we've seen returning.
And also less.
Pandemic risk within the accounts that we saw at the height of the pandemic last year. Both of those things are yielding higher growth return within our own account base in the last 2 quarters. So we can shed as we move forward some of the last year's impact on that.
We're already starting to see it as a blended metric in mid market and enterprise, we're already starting to see lift in the enterprise base alone.
The important thing about this metric is that it moves.
Slower.
And as we move over the next year or 2 we're really excited about the tools that we have to drive it more strategic products and interest and accelerated growth there than ever before and that we have investments in.
Customer success teams and optimization teams that help companies get that.
And utilize our products and engage better and grow and expand faster.
So the the opportunity to really move that metric over the longer term with the demand. Returning we think we'll start to see that within that 12 to 18 month timeframe.
That's helpful and then secondly on on your accounts receivable product.
Just wondering if you can maybe share with us from how does that asset have been growing since you acquired them, particularly in the last quarter or so and then secondly.
Should we expect net growth to accelerate once you released a product from Q4.
That's why you have the 22022 or.
Yes.
Holding back is there a reason you might be holding back a little bit in terms of deploying it to your to your channel.
Okay.
Great question and I'll start with just the nature of that company. When we acquired it was not going to be material to this year's revenue its a $10 million to $15 million annual run rate business, a great group of customers and employees, but given the nature of purchase accounting, we won't see a material impact in this year.
So that's why we talked about 2022 as we get through a full year cycle, we can begin to.
Bill and revenue this on a normalized basis that will see more growth from it next year than we are this year, which is not that material on the.
The integration of the business and our ability to up and cross sell that we're out of the gate much stronger than we expected to be as we've used our sales team and our distribution channel to really take this great product.
And put it around the globe, it's taken a little bit of time to get to where we want to be and Thats why we thought it would be sort of a year or 2 before we can really hit our stride, but again in the last 3 quarters that we've been operating with it it's out faster than we expected, but still yet immaterial to the overall operations for that for the <unk>.
Early performance.
Great. Thank you.
And our next question coming from the line of Matt Boss with Jpmorgan. Your line is open.
Hey, good afternoon Mark.
Kaufman with the work that you talked about your customer success team is doing.
Do you have any metrics you can share like the growth in reference simple customers or NPS scores or at least talk about how these are trending and how you see them.
You can see the trajectory going forward.
None of these it's a great question. Thank you Matt.
The end result, eventually will end up in net revenue retention metrics.
The rest of the sort of categories you described there.
We are not categories, we disclose.
<unk>.
We're pleased with our efforts there we see.
We see benefits in <unk>.
NPS customer sat we see benefits and the volume of transactions being pushed through some areas that we look in there in terms of matching journal entries processed.
Out of cash that moves through the AAR collection engine has sort of outputs from some of those efforts as well so trends generally speaking positive across the dimensions, you would consider there nothing more.
Sure.
Descriptive that we're prepared to share with you.
That's helpful. Thank you and then 1 from our carton so billings, obviously very strong this quarter.
<unk>.
A fortune 200 deal.
How much that influence billings, but.
To the extent that you can describe per share were there any deal pull forwards or something that closed earlier than expected.
And then perhaps if you could provide some guardrails on billings growth going forward. Thanks.
Yes. Thank you great question.
Ill qualify my answer first by saying, we still and always do expect to see variability quarter to quarter on the billings metric, we will see seasonality in Q3, often times and so we have a very pragmatic view of why that what that looks like from quarter to quarter.
In the trailing 12 months, we stepped it up to 24%. If you go back and look when we were pre pandemic, we were seeing high <unk> in the calculated billings on a quarterly basis that given us somewhere in the high Twenty's for trailing 12 months. So we really ask to focus more on a little bit of a trend.
As we are.
As we look at Q2. It was there was no 1 customer or event.
Pull forward Hank lag over from previous quarters. It was.
Just a true and honest demand driven incredibly well executed quarter.
We've had strong Q2s in the past pre pandemic through our partnership ecosystems and some of the buying behavior. So we were thrilled to see the demand and the execution come together, so well in Q2 and no anomalies exist in that number.
Thank you.
And the last question will come from Brent <unk> with Piper Sandler Your line is open.
Hi, This is Clarke Jeffries on for Brent I wanted to touch on the announcement during the quarter to expand the partner program. Just wondering if there was a specific catalysts for that decision and maybe if possible is there a specific area in the partner network that you're most excited to see develop over the next year.
Yes, I would say that was a momentum release that we were talking about we were bringing together.
Many things some of them had been previously announced under the.
The introduction of Mel Zeller, Don as additional leader to that channel. So.
Fact that we put that out there shouldnt be something Thats eyecatching itself had captured a number of areas, where we continue to focus.
I would say.
<unk> is a real primary focus area.
As I mentioned earlier strong quarter for our strongest and yet we still think there's plenty of room to expand and succeed there.
Ecosystem as we talked about those partners were engaged in 80% of our large sales clearly something we're really focused on and then that continued.
Technology partnerships like these customer relationship partnerships that we highlighted with the announcement of the <unk> partnership.
That we're focused on real great value.
How black line and the partner fit into this complex landscape that these larger organizations managed on their accounting and.
Financial architecture.
Great and then I was wondering maybe if we could get an update on our product innovation I mean, obviously you highlight during the analyst day.
Talking about accelerated investing in R&D release schedules.
Taking the processing power of the platform.
100 billion scale.
Or are there some targets on the product side that we should be looking for over the next year and is there anything you can update us on the pace of change CP.
Migration.
And <unk> would be a great example of that.
So I'll start there are pleased with the progress that we have in our GCB migration.
<unk> 1 we started by taking new customers live in the Google cloud on our systems.
That's been successful force phase II, we have 200 organizations, who have migrate we've migrated to the Google cloud successfully.
Phase III includes our EMEA buildout, which is on track.
And we believe that.
And I think it's important to keep in mind the nature of what we do the importance of what we do and our customer Centricity means that this is a real contemplated move that will take place throughout the rest of the year and into 'twenty 2022 for us to complete that that frees up a lot of product innovation and acceleration for us.
Access to more service oriented things that we get from the Google.
Google Cloud and.
In addition to that we've had a lot of innovation in the set of our business, we announced the AAR intelligence solution, which uses real time data.
<unk> analytics and gifts.
Or are customers, just a better understanding of the risks that they are exposed to pay.
Payment behaviors to help them manage that risk and cash flow, we have another release coming up in the world.
Here in Q4 that we're really excited about which we believe will put us in a position of having the most complete platform for automation.
Very soon in the future and then we continue to invest in the other 2 parts of our <unk>.
Product focus the core closed process automation.
That category lead.
We'll have.
A much more.
Detailed discussion about this as we get into our conference, but the full release of.
Account analysis, which drives a lot of value in the specificity at the transaction level, but I think that is really a differentiator for us.
As well as our focus on intercompany and the leadership that we're taking an intercompany governance and transactions.
Thank you very much.
I'm not showing any further questions I would now like to turn the call back over to Mr. Marc Hoffman CEO for closing remarks.
You all for tuning in and joining US today, we always appreciate your ongoing support of Black line and are focused on our customers.
We always want to continue the tradition established by our founder Therese reminding all of you who are in the financial World to continue to refer your portfolio of companies to Black line, we will do a great job of helping them modernize their accounting processes.
Thank you very much and.
Chat with you all later.
Ladies and gentlemen that does from teleconference for today. Thank you for your participation you may now disconnect.
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Okay.
Yes.
Correct.
Okay.
Okay.
Our growth.
Okay.
Yes.
Yes.
Yes.
Okay.
Yes.
Right.
Yes.
In volume.
Net.
Okay.
Okay.
[music] standard.
Yes.
Okay.
[music].
Loans.
Sure.
Yes.
Okay.
Good day.
Got it.
Okay.
Okay.
Our next loans.
<unk> revenue.
[music].
Yes.
Yes.
Yes.
Okay.
Okay.
Yes.
1 from us.
Okay.
Yes.
Hum.
Okay.
Yes.
Okay.
Yes.
Yes.
Okay.
Yes.
Okay.
Okay.
Okay.
Okay.
Yes.
Yes.
Yes.
Yes.
Okay.
Okay.
Good day.
Yes.
Yes.
Yes.
Net income.
Yes.
[music], Inc.
Sure.
Yes.
Yes.
Okay.
Yes.
Okay.
Total number.
Yes.
Please go ahead.
Yeah.
Okay.
Yes.
Yes.
Okay.
Okay.
Yes.
Okay.
Okay.
Yes.
Yes.
Yes.
[music].
Thank you.
EPS.
Yes.
Non-GAAP.