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What guidance did BlackLine's management provide for the next earnings period?

What factors drove the changes in BlackLine's revenue and profit?

- **Revenue Growth**: 7.5% YoY to $178 million, driven by 7% subscription and 13% services growth. ARR up 7.3% to $685 million.
- **New Customer Surge**: Bookings +45% YoY, with average deal size doubling. 75% of new bookings on platform pricing, 41% ARR from new logos.
- **AI Breakthrough**: Vera AI launched in Q3, with 10 early adopters. Verity agents for reconciliation and cash collection in pilot, targeting 20%+ Q4 bookings growth.
- **Efficiency Drive**: 25% workforce in lower-cost regions. Internal AI adoption cuts product cycle time by 23%, 160 features released in 2025.
- **2026 Outlook**: Target Rule of 33 (revenue + margin). Gross bookings to accelerate to 20%, with margin expansion from 24% to 25%.
- **Risks**: 10%+ attrition from automation, 2M ARR delayed in Q3. Transition to platform pricing nears completion in H1 2026.


**【CEO Summary Section】**
- **Revenue Growth**: Total revenue of $178 million, up 7.5% YoY, driven by 7% subscription growth and 13% services revenue increase. ARR reached $685 million, up 7.3% YoY.
- **New Customer Momentum**: New customer bookings rose 45% YoY, with average deal size doubling. Notable wins include a Fortune 20 company and a global commercial real estate firm, both adopting Studio360 and platform pricing.
- **Platform Transition**: Platform pricing model now accounts for 75% of new bookings, with 41% of ARR from new customers. Gross margin remained strong at 82%, while services revenue growth reflects accelerated project delivery.
- **AI and Innovation**: Launch of Vera, a conversational AI, and Verity agents for account reconciliation and invoice-to-cash. Implementation agents to pilot in Q4 for faster customer onboarding.
- **Operational Efficiency**: 25% of workforce in lower-cost geographies, reducing costs. Internal AI adoption improved product cycle time by 23% YoY, with 160 features released in 2025.

**【CFO Financial Commentary】**
- **Financial Highlights**: Non-GAAP net income of $38 million ($0.58 EPS), up 21% YoY. Free cash flow of $57 million, operating cash flow of $64 million. Share buybacks returned $200 million to shareholders YTD.
- **Pipeline and Renewals**: RPO growth of 12.4%, with multiyear renewals at 50% of bookings. Net retention rate 103%, impacted by FX and platform adoption delays.
- **Guidance**: Q4 2025 revenue $182-184 million (7.4%-8.6% growth), non-GAAP net income $42-44 million. Full-year 2025 revenue $699-701 million (7%-7.3% growth), non-GAAP net income $153-157 million.
- **2026 Outlook**: Target Rule of 33 (revenue growth + operating margin), with accelerating gross bookings and margin expansion.

**【Q&A Highlights】**
- **AI Impact**: Vera adoption by 10 customers post-Q3 launch, with agents for reconciliation and cash collection in pilot. Internal AI tools reduced data storage costs by 80%.
- **Customer Dynamics**: 10%+ attrition from automation, offset by 50%+ pipeline growth in enterprise. Platform pricing delays 2M ARR in Q3, but 2026 bookings growth expected at 20%.
- **Competitive Edge**: Win rates improving with Studio360 and Verity, especially in complex ERP integrations. SAP partnership advances AI integration, with Q4 pipeline momentum.
- **Macro Considerations**: Stable macro assumed for 2026 guidance. Layoffs in finance functions may drive efficiency demand, aligning with BlackLine's value proposition.


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