BlackLine Inc (BL) 2023 Q2 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Q2 2023 BlackLine Earnings Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded.

美好的一天，感謝您的支持。歡迎參加 BlackLine 2023 年第二季度收益電話會議。 （操作員指示）請注意，今天的會議正在錄製中。

I would now like to hand the conference over to your speaker today, Matt Humphries, Vice President of Investor Relations. Please go ahead.

現在我想將會議交給今天的發言人，投資者關係副總裁馬特·漢弗萊斯 (Matt Humphries)。請繼續。

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 Mark Partin, Chief Financial Officer.

下午好，感謝您今天加入我們。與我一起參加電話會議的是 BlackLine 聯合首席執行官 Owen Ryan 和 Therese Tucker；以及首席財務官馬克·帕廷(Mark Partin)。

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 plans, objectives and expected performance, in particular, our guidance for Q3 and full year 2023 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.

在我們開始之前，我想指出，本次電話會議期間所做的某些陳述並非歷史事實，包括有關我們未來計劃、目標和預期業績的陳述，特別是我們對第三季度和2023 年全年的指導。 - 1995 年《私人證券訴訟改革法案》含義內的前瞻性陳述。這些前瞻性陳述僅代表我們截至本次電話會議之日的展望。

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.

雖然我們認為電話會議期間做出的任何前瞻性陳述都是合理的，但實際結果可能會存在重大差異，因為這些陳述基於我們截至今天的當前預期，並受到風險和不確定性的影響，包括我們提交給我們的定期報告中所述的風險和不確定性。證券交易委員會，特別是我們的 10-K 表格和 10-Q 表格。

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.

我們不承擔並明確否認任何更新或更改我們的前瞻性陳述的義務，無論是由於新信息、未來事件還是其他原因，除非適用法律要求。除非另有說明，我們今天在電話會議上進行的所有比較均與去年同期進行的比較。

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 8-K filed with the SEC today.

最後，除非另有說明，我們在本次電話會議中披露的財務指標將是非公認會計準則的。目前，我們的收益報告中提供了對這些非GAAP 財務指標的討論以及有關歷史GAAP 與非GAAP 業績對賬的信息，您可以在我們的投資者關係網站Investors.blackline.com 或我們的表格8 中找到該信息。 -K 今天向 SEC 提交了文件。

Now I'll turn the call over to BlackLine Co-Chief Executive Officer, Owen Ryan. Owen?

現在我將把電話轉給 BlackLine 聯合首席執行官 Owen Ryan。歐文？

Thank you, Matt, and good afternoon. Thank you for joining us today. This was a solid quarter for BlackLine, even as the market environment for enterprise software remains uncertain. We were able to exceed our revenue and non-GAAP net income targets this quarter and took some key steps as we look to strengthen and expand our market leadership and competitive positioning.

謝謝你，馬特，下午好。感謝您今天加入我們。儘管企業軟件的市場環境仍存在不確定性，但 BlackLine 的季度業績表現穩健。本季度我們超越了收入和非公認會計原則淨利潤目標，並採取了一些關鍵步驟，以加強和擴大我們的市場領導地位和競爭地位。

Specifically, we delivered total revenue of $145 million and non-GAAP net income of $31 million. Approximately 70% of sales this quarter came from existing customers, underscoring our commitment to expand and go deeper with our customer base. As part of this, the number of customers with $1 million or more in annual recurring revenue increased to $53 million this quarter, up 23%.

具體來說，我們的總收入為 1.45 億美元，非 GAAP 淨利潤為 3100 萬美元。本季度約 70% 的銷售額來自現有客戶，這凸顯了我們擴大和深入客戶群的承諾。作為其中的一部分，本季度年度經常性收入 100 萬美元或以上的客戶數量增加至 5300 萬美元，增長 23%。

If you recall, there are 5 key areas that I am focused on in my role. These are: one, relentless execution across our business operations; two, BlackLine's market message and brand; three, ensuring customers receive the value of the BlackLine promise; four, building and optimizing our distribution network; and five, customer retention. Given these, I will walk through each area and provide some insights on how we are addressing each while driving even higher operating efficiency going forward.

如果您還記得的話，我在我的角色中重點關注 5 個關鍵領域。它們是：一是我們業務運營的不懈執行；二、BlackLine的市場信息和品牌；三、確保客戶收到 BlackLine 承諾的價值；四、建設和優化分銷網絡；第五，客戶保留。鑑於這些，我將詳細介紹每個領域，並提供一些關於我們如何解決每個領域的見解，同時推動未來更高的運營效率。

On execution, we delivered against our revenue and non-GAAP net income targets this quarter despite market uncertainty. By living up to these promises is of great importance, there is more work to be done to generate even more consistent, effective and efficient execution across BlackLine.

在執行方面，儘管市場存在不確定性，但我們仍實現了本季度的收入和非公認會計準則淨利潤目標。兌現這些承諾非常重要，要在整個 BlackLine 中實現更加一致、有效和高效的執行，還有更多工作要做。

Specifically, we are thoroughly analyzing and refining the structure of our organization to ensure we have the right people in the right roles and working to ensure that accountability and ownership align our strategic goals. For example, we recently moved our business development teams from marketing to sales. This change is important as demand generation and the seamless creation of quality pipeline is vital to our continued success.

具體來說，我們正在徹底分析和完善我們的組織結構，以確保我們擁有合適的人員擔任合適的角色，並努力確保責任和所有權與我們的戰略目標保持一致。例如，我們最近將業務開發團隊從營銷轉移到銷售。這一變化非常重要，因為需求的產生和優質管道的無縫創建對於我們的持續成功至關重要。

By integrating our business development teams into sales and more importantly, under the same leadership, we can ensure that alignment and ownership drive our desired outcomes while avoiding inefficient activities. Additionally, we are beginning to leverage our deep industry expertise and transition from an industry-agnostic go-to-market model to a more industry equipped approach.

通過將我們的業務開發團隊整合到銷售中，更重要的是，在同一領導下，我們可以確保一致性和所有權推動我們期望的結果，同時避免低效的活動。此外，我們開始利用我們深厚的行業專業知識，從與行業無關的進入市場模式過渡到更適合行業的方法。

With a long history and a strong presence in key sectors like manufacturing, retail and financial services, we believe that the combination of domain expertise in accounting and financial automation along with industry experience, can accelerate our growth and provide our customers with additional value.

憑藉悠久的歷史和在製造、零售和金融服務等關鍵領域的強大影響力，我們相信會計和財務自動化領域的專業知識與行業經驗的結合可以加速我們的發展並為我們的客戶提供額外的價值。

As the premier brand and clear leader in finance and accounting automation for the office of the CFO, having a consistent market message and brand promise is critical. We are actively working to better align our global messaging to speak to our customers in one voice.

作為首席財務官辦公室財務和會計自動化領域的首要品牌和明確的領導者，擁有一致的市場信息和品牌承諾至關重要。我們正在積極努力，更好地調整我們的全球信息傳遞，以便以一種聲音與我們的客戶對話。

This quarter, we hosted numerous events across the world, including our BeyondTheBlack event in Australia and numerous local events. And it has become clear that our customers' challenges and priorities are very similar across markets. By optimizing and aligning our message globally, we will speak to the customer with one voice and make it easier for them to understand the value that BlackLine delivers. This has the added benefit of creating a better customer experience and, in turn, makes it easier and more efficient to do business with BlackLine.

本季度，我們在世界各地舉辦了眾多活動，包括澳大利亞的 BeyondTheBlack 活動和眾多當地活動。很明顯，我們的客戶在不同市場中面臨的挑戰和優先事項非常相似。通過在全球範圍內優化和調整我們的信息，我們將用同一種聲音與客戶對話，讓他們更輕鬆地了解 BlackLine 提供的價值。這樣做的另一個好處是創造更好的客戶體驗，進而使與 BlackLine 開展業務變得更容易、更高效。

The BlackLine promise we offer to customer holds immense value, and we expect to deliver even greater time to value while expanding our market leadership and competitive positioning. As part of these efforts, we announced a new 5-day implementation program, specifically tailored for mid-market customers.

我們向客戶提供的 BlackLine 承諾具有巨大的價值，我們希望在擴大我們的市場領導地位和競爭地位的同時，提供更快的價值實現時間。作為這些努力的一部分，我們宣布了一項新的為期 5 天的實施計劃，專為中端市場客戶量身定制。

This program is designed to be the starting point of a customer's long-term journey with BlackLine. It allows customers to accelerate their time to value by leveraging our core financial close solutions such as account reconciliations, task management and transaction matching.

該計劃旨在成為客戶與 BlackLine 長期合作的起點。它使客戶能夠利用我們的核心財務結算解決方案（例如賬戶對賬、任務管理和交易匹配）來加快實現價值的速度。

We already have a number of customers that have successfully completed the 5-day implementation program. Some even did so right before they moved into a monthly or quarter-end close.

我們已經有許多客戶成功完成了為期 5 天的實施計劃。有些人甚至在月末或季末結賬前這樣做。

Innovative offerings like this are important to our customers as implementation challenges are one of the top drivers of customer dissatisfaction, which can ultimately lead to churn and attrition, an outcome we are driven to eliminate.

此類創新產品對我們的客戶非常重要，因為實施挑戰是客戶不滿意的主要原因之一，這最終可能導致客戶流失和流失，而我們必須消除這種結果。

Moving to distribution. We see opportunity in reshaping and optimizing our global partner network to deliver more consistent performance and further profitable growth. We are working to drive greater accountability and alignment across our partners and clearly defining what we expect from them and what they can expect from BlackLine in return. Importantly, we are accelerating the transition of partners from enablement to commercialization.

轉向分銷。我們看到了重塑和優化全球合作夥伴網絡的機會，以提供更一致的業績和進一步的盈利增長。我們正在努力推動我們的合作夥伴加強問責制和協調一致，並明確界定我們對他們的期望以及他們對 BlackLine 的期望回報。重要的是，我們正在加速合作夥伴從賦能到商業化的轉變。

As part of these efforts, we recently entered into a reseller agreement with a blue-chip global consulting firm and current partner. This partnership holds great potential for both parties as it provides an appropriate framework for new customer acquisition and expansion via cross-sell and upsell of our strategic product portfolio to our existing customers.

作為這些努力的一部分，我們最近與一家藍籌全球諮詢公司和當前合作夥伴簽訂了經銷商協議。這種合作夥伴關係對雙方都具有巨大的潛力，因為它通過向現有客戶交叉銷售和追加銷售我們的戰略產品組合，為新客戶獲取和擴展提供了適當的框架。

As you're aware, it is all about the customer at BlackLine. We take great pride in how we enable our customers and support them as they grow, we only succeed if they succeed. One of the key metrics we use to track is renewal rates. While they are very strong relative to our broader software peer group, we are not satisfied with current levels. As such, we plan to place a more disciplined focus on our existing customers.

如您所知，BlackLine 一切以客戶為中心。我們為如何幫助客戶並支持他們成長而感到自豪，只有他們成功，我們才會成功。我們用來跟踪的關鍵指標之一是續訂率。雖然它們相對於我們更廣泛的軟件同行群體來說非常強大，但我們對當前的水平並不滿意。因此，我們計劃更加嚴格地關注現有客戶。

For example, we are moving quickly to standardize our processes internally, removing friction and realigning resources to deliver a seamless customer experience from sales to onboarding, to implementation and through renewal. We plan to introduce new engagement programs that prioritize digital transformation for customers.

例如，我們正在迅速採取行動，實現內部流程標準化，消除摩擦並重新調整資源，以提供從銷售到入職、實施和更新的無縫客戶體驗。我們計劃推出新的參與計劃，優先考慮客戶的數字化轉型。

Leveraging best practices backed by years of BlackLine customer data, these programs are designed to accelerate our customers' success and time to value. And as new customers come to BlackLine, we expect to co-create customer blueprints to drive digital transformation in their business, along with milestones and touch points to ensure adoption and satisfaction remains high.

這些計劃利用多年 BlackLine 客戶數據支持的最佳實踐，旨在加速客戶的成功並縮短價值實現時間。隨著新客戶來到 BlackLine，我們希望共同創建客戶藍圖以推動其業務的數字化轉型，並製定里程碑和接觸點以確保保持較高的採用率和滿意度。

Despite market uncertainty, we are seeing greater customer wins and competitive takeaways across both the enterprise and the middle market. At the enterprise level, we signed a competitive expansion deal with a leading software and workflow company, who also has an existing partnership with one of our direct enterprise competitors.

儘管市場存在不確定性，但我們在企業和中間市場看到了更多的客戶贏得和競爭優勢。在企業層面，我們與一家領先的軟件和工作流程公司簽署了一項競爭性擴張協議，該公司還與我們的一個直接企業競爭對手建立了現有的合作夥伴關係。

Despite this, the customer recognized their existing set of homegrown solutions and what their partner offered were not sufficient to support the growth they envision. Further, they recognize that the ability to seamlessly leverage key data from their ERP to BlackLine via connectors was vital to deliver the level of automation they demanded.

儘管如此，客戶認識到他們現有的一套本土解決方案以及他們的合作夥伴提供的解決方案不足以支持他們設想的增長。此外，他們認識到，通過連接器無縫利用 ERP 中的關鍵數據到 BlackLine 的能力對於提供他們所需的自動化水平至關重要。

We also signed a leading financial services technology and payments company in a direct compete with a known consolidation provider. The customer recognized the power of accounting automation and the benefits that can accrue from removing inefficient and manual work. Further, the expected ROI, time to value and focus on governance and security resonated strongly and we believe far exceeds anything else in the market.

我們還與一家領先的金融服務技術和支付公司簽約，與一家知名的整合提供商直接競爭。客戶認識到會計自動化的力量以及消除低效和手工工作可以帶來的好處。此外，預期的投資回報率、價值實現時間以及對治理和安全的關注引起了強烈反響，我們相信遠遠超過市場上的其他產品。

Additionally, we signed a number of intercompany deals this quarter with customers like Shift4, a leading integrated payment provider, and NOV, a provider of equipment, technology and services to the global energy industry.

此外，本季度我們還與領先的集成支付提供商 Shift4 和全球能源行業設備、技術和服務提供商 NOV 等客戶簽署了多項公司間協議。

We also signed our largest middle market deal on record driven by the need for modern innovative solutions for complex intercompany processes. Finally, SolEx deal activity remained healthy this quarter with a number of new customer wins globally. For example, companies like Restaurant Holdings in Japan and Anglo American in Europe are just beginning their BlackLine journey. We remain excited about the long-term opportunity with SAP and our senior leadership team will drive the broadening and deepening of this partnership.

由於復雜的公司間流程對現代創新解決方案的需求，我們還簽署了有記錄以來最大的中間市場協議。最後，SolEx 本季度交易活動保持健康，在全球贏得了許多新客戶。例如，日本的 Restaurant Holdings 和歐洲的 Anglo American 等公司才剛剛開始其 BlackLine 之旅。我們對與 SAP 的長期合作機會仍然感到興奮，我們的高級領導團隊將推動這一合作夥伴關係的擴大和深化。

With that, I will turn it over to our Founder and my fellow CEO, Therese, to discuss her thoughts. Therese?

接下來，我會將其交給我們的創始人兼首席執行官 Therese，討論她的想法。特蕾莎？

Thank you, Owen. As many listening know, I recently assumed the Chief Technology Officer role on an interim basis, a natural fit given my past experience founding BlackLine and building out our product and technology footprint. So let's talk about what I see as the opportunities going forward and where we can build upon our strength.

謝謝你，歐文。正如許多聽眾所知，我最近臨時擔任首席技術官一職，考慮到我過去創立 BlackLine 以及拓展我們的產品和技術足蹟的經驗，這是一個自然的選擇。那麼，讓我們談談我認為未來的機遇以及我們可以在哪些方面發揮我們的優勢。

First and foremost, the talent we have in the organization is truly incredible. I see it every day in the products we build and in the customers we delight. But I see that the structure we have in place today is likely not the one most appropriate to support our growth going forward. We need to be able to move even faster with more agility while delivering innovation as we grow. Removing self-created barriers in enhancing the discipline and efficiency inside our product and technology teams is crucial to our success and something that I am intent on driving as we scale.

首先也是最重要的是，我們組織中擁有的人才確實令人難以置信。我每天都在我們製造的產品和我們滿意的客戶中看到這一點。但我發現我們今天所採用的結構可能不是最適合支持我們未來增長的結構。我們需要能夠更快、更敏捷地行動，同時隨著我們的成長提供創新。消除自我創造的障礙，提高產品和技術團隊內部的紀律和效率，對於我們的成功至關重要，這也是我在擴大規模時致力於推動的事情。

Speaking of scale, we're seeing more and more consumption across our product set, like accounts receivable. In Q2 alone, we saw a 24% increase in payment value, up to nearly $112 billion. Across our solutions, we also see tremendous growth in API usage from our customers. In fact, we have more than 14 million API calls alone this quarter, up 219%.

說到規模，我們看到我們的產品系列的消耗越來越多，例如應收賬款。僅第二季度，支付金額就增長了 24%，達到近 1120 億美元。在我們的解決方案中，我們還看到客戶的 API 使用量大幅增長。事實上，僅本季度我們就有超過 1400 萬次 API 調用，增長了 219%。

While these stats are impressive for a company of our size, we need to ensure that the infrastructure in place can continue to support this growth profitably, while also providing the flexibility to add new features and functionality. While still early, we are in the market for a new Chief Information Officer who can really focus on infrastructure for scale while I, in turn, focus on our product and platform road map.

雖然這些統計數據對於我們這樣規模的公司來說令人印象深刻，但我們需要確保現有的基礎設施能夠繼續支持這種增長並實現盈利，同時還提供添加新特性和功能的靈活性。雖然還為時尚早，但我們正在市場上尋找一位新的首席信息官，他可以真正專注於規模化基礎設施，而我則專注於我們的產品和平台路線圖。

Now let's turn to product specifics for a moment. We recently shipped our latest expansion of the financial reporting analytics solutions. If you recall, we previously were able to provide customers with a real-time income statement and balance sheet based off of their accounting data. This has resonated well with our customers and as expected, has left them asking for even more.

現在讓我們暫時討論一下產品細節。我們最近發布了財務報告分析解決方案的最新擴展。如果您還記得，我們以前能夠根據客戶的會計數據為客戶提供實時損益表和資產負債表。這引起了我們客戶的良好共鳴，並且正如預期的那樣，他們提出了更多要求。

The addition of cash flow statements already enthusiastically configured by several customers, allows real-time visibility with [the real] bound capabilities discussed across all 3 interconnected financial statements. This gives our customers a complete picture on where their business is at any given period of time in a consolidated view with comparisons to other periods, budget numbers and external consolidation systems. This level of real-time analysis is unavailable in batch-oriented consolidation systems. We expect that this will be well received in the market and our roadmap for additional innovative use cases and enhancements remains robust.

添加已由多個客戶熱情配置的現金流量表，可以實時查看所有 3 個相互關聯的財務報表中討論的[真實]綁定功能。這使我們的客戶能夠通過與其他時期、預算數字和外部整合系統的比較，在整合視圖中全面了解他們在任何給定時間段內的業務狀況。這種級別的實時分析在面向批量的整合系統中是不可用的。我們預計這將受到市場的好評，並且我們的其他創新用例和增強功能的路線圖仍然穩健。

Now I'd like to discuss generative AI for a moment, and what that means for BlackLine, our customers and our markets. We see exciting opportunity ahead to add value to our existing financial close and strategic products by leveraging generative AI. As part of our efforts, we continue to uncover interesting and unique use cases that have the potential to drive further efficiency while minimizing risk for our customers.

現在我想討論一下生成式人工智能，以及這對 BlackLine、我們的客戶和市場意味著什麼。我們看到了令人興奮的機會，可以通過利用生成式人工智能為我們現有的財務結算和戰略產品增加價值。作為我們努力的一部分，我們不斷發現有趣且獨特的用例，這些用例有可能進一步提高效率，同時最大限度地降低客戶的風險。

Our customers and partners have been very interested in our approach but are appropriately cautious on go-forward applications given the inherent challenges related to governance and security. Delivering value at the front end while increasing risks on the back end is not a recipe for long-term success with generative AI. And we're here to win the long game.

我們的客戶和合作夥伴對我們的方法非常感興趣，但考慮到與治理和安全相關的固有挑戰，對未來的應用程序持適當謹慎的態度。在前端提供價值，同時增加後端風險，並不是生成式人工智能長期成功的秘訣。我們來這裡是為了贏得持久戰。

Fortunately, we believe BlackLine's brand permission, combined with our commitment to governance and security surrounding sensitive customer data should be a key differentiator in our market. I expect that you will hear and see more from us that are our upcoming BeyondTheBlack user conference in September, so I hope that you can attend.

幸運的是，我們相信 BlackLine 的品牌許可，加上我們對敏感客戶數據治理和安全的承諾，應該成為我們市場的關鍵差異化因素。我希望您能在 9 月份即將舉行的 BeyondTheBlack 用戶大會上聽到並看到更多信息，所以我希望您能參加。

Turning to our strategic product portfolio. We are delivering unique and differentiated innovation into these large and underpenetrated markets. In Intercompany, for example, we recently released multiple new features, including intercompany intelligence using the aforementioned AI, [TEF TCAS] and e-invoicing support for our non-trade module.

轉向我們的戰略產品組合。我們正在向這些龐大且滲透率較低的市場提供獨特且差異化的創新。例如，在 Intercompany 中，我們最近發布了多項新功能，包括使用上述 AI 的公司間智能、[TEF TCAS] 以及對我們的非貿易模塊的電子發票支持。

In the coming months, we also plan to introduce a new trade module for intercompany solutions. This new module is designed to solve complex challenges for customers that operate in industries dominated by inventory and physical goods. The lack of capable, modern automation solutions here only reinforces our view on the large embedded opportunities for Intercompany ahead of us.

在接下來的幾個月中，我們還計劃為公司間解決方案引入新的貿易模塊。這個新模塊旨在為在庫存和實物商品為主的行業中運營的客戶解決複雜的挑戰。這裡缺乏強大的現代自動化解決方案只會強化我們對 Intercompany 面前的巨大嵌入式機會的看法。

And finally, in accounts receivable automation, we're working on customer-driven innovation to enhance our AR management module and expand the innovative solutions we offer. Importantly, our own internal finance organization has just finished implementing a number of our own accounts receivable solutions and remains one of our important channels for customer-driven innovation and feedback.

最後，在應收賬款自動化方面，我們正在致力於客戶驅動的創新，以增強我們的 AR 管理模塊並擴展我們提供的創新解決方案。重要的是，我們自己的內部財務組織剛剛完成了我們自己的一些應收賬款解決方案的實施，並且仍然是我們客戶驅動的創新和反饋的重要渠道之一。

To close, we are driven to better articulate and deliver the value that customers can achieve by partnering with BlackLine, whether it's taking the first step in modernizing their finance and accounting operations or moving forward with full digital transformation, customers can be confident knowing that they have a trusted partner to guide them on this journey.

最後，我們致力於更好地闡明和交付客戶通過與 BlackLine 合作可以實現的價值，無論是邁出實現財務和會計業務現代化的第一步，還是推進全面數字化轉型，客戶都可以放心地知道他們有一個值得信賴的合作夥伴來指導他們踏上這段旅程。

With that, I'll turn it over to Mark Partin to discuss the details of our financial performance and our outlook.

接下來，我將把它交給馬克·帕廷 (Mark Partin)，討論我們的財務業績和前景的細節。

Thank you, Therese. BlackLine's financial performance this quarter highlights our ability to balance growth and profitability in an uncertain market. As Owen and Therese mentioned previously, our focus remains on driving a higher level of operational efficiency in order to strengthen our position and drive a sustainable level of long-term profitable growth.

謝謝你，特蕾莎。 BlackLine 本季度的財務業績凸顯了我們在不確定的市場中平衡增長和盈利能力的能力。正如歐文和特蕾莎之前提到的，我們的重點仍然是提高運營效率，以鞏固我們的地位並推動可持續的長期盈利增長。

With that in mind, let's review our financial highlights from the second quarter in more detail. Total revenue grew to $145 million, up 13%, slightly ahead of our expectations. Calculated billings growth was 11% this quarter due to a combination of lower services growth combined with lower net new customer bookings.

考慮到這一點，讓我們更詳細地回顧一下第二季度的財務亮點。總收入增至 1.45 億美元，增長 13%，略高於我們的預期。由於服務增長放緩以及新客戶淨預訂量下降，本季度計算出的賬單增長率為 11%。

Remaining performance obligation, or RPO, was up 14%, with current RPO growing 15%. We closed the quarter with total annual recurring revenue, or ARR, of $556 million, up 13%. We added 43 net new customers in the quarter, bringing our total customer count at the end of the quarter to 4,279. Our revenue renewal rate was consistent with the prior quarter at 95% as a small number of enterprise customers impacted our renewal rate in the period.

剩餘履約義務 (RPO) 增長了 14%，當前 RPO 增長了 15%。本季度末，我們的年度經常性總收入 (ARR) 達到 5.56 億美元，增長 13%。本季度我們淨增加了 43 名新客戶，使本季度末的客戶總數達到 4,279 名。我們的收入續訂率與上一季度一致，為 95%，因為少數企業客戶影響了我們的續訂率。

Net revenue retention remained stable at 106% as we continued to experience a lower velocity of customer expansion activity due to persistent macro uncertainty. Strategic product performance represented 20% of sales. Partners were involved in 80% of the large deals this quarter, driving both net new and expansion deals globally as we continue to enable, train and drive higher levels of partner activity.

由於持續的宏觀不確定性，我們的客戶擴張活動速度繼續放緩，淨收入保留率穩定在 106%。戰略產品績效佔銷售額的20%。合作夥伴參與了本季度 80% 的大型交易，隨著我們繼續支持、培訓和推動更高水平的合作夥伴活動，推動了全球淨新交易和擴張交易。

Select performance in the second quarter remained solid with several new deals closing across our global market. In Q2, our SAP partnership represented 25% of total revenue, consistent with the previous quarter.

第二季度的精選業績依然穩健，全球市場上完成了幾筆新交易。第二季度，我們的 SAP 合作夥伴關係佔總收入的 25%，與上一季度持平。

Turning to margins. Non-GAAP gross margin was 79% with non-GAAP subscription gross margin of 82%, in line with our expectations. Non-GAAP operating margin was 13% this quarter, driven by consistent operating discipline across sales and marketing and G&A.

轉向邊緣。非 GAAP 毛利率為 79%，其中非 GAAP 認購毛利率為 82%，符合我們的預期。本季度非 GAAP 營業利潤率為 13%，這得益於銷售、營銷以及一般管理費用方面一致的運營紀律。

Non-GAAP net income attributable to BlackLine was $30.7 million, representing a 21% non-GAAP net income margin. Our operating income outperformance combined with interest income from our healthy cash position drove our results on the bottom line. We generated $24.6 million in operating cash flow and $18 million in free cash flow in the quarter with a free cash flow margin of 12%.

BlackLine 的非 GAAP 淨利潤為 3,070 萬美元，非 GAAP 淨利潤率為 21%。我們的營業收入表現出色，加上健康的現金狀況帶來的利息收入，推動了我們的盈利業績。本季度我們產生了 2460 萬美元的運營現金流和 1800 萬美元的自由現金流，自由現金流利潤率為 12%。

Finally, we ended the quarter with $1.1 billion in cash, cash equivalents and marketable securities providing considerable financial flexibility to execute across our strategic priorities, evaluate opportunistic M&A and optimally manage our capital structure. Most notably, our 2024 notes coming due next August. Of note, the 2024 notes become current this month.

最後，我們在本季度結束時擁有 11 億美元的現金、現金等價物和有價證券，為執行我們的戰略重點、評估機會性併購和優化管理我們的資本結構提供了相當大的財務靈活性。最值得注意的是，我們的 2024 年票據將於明年 8 月到期。值得注意的是，2024 年票據將於本月生效。

As we enter 2023, we expected to see a slight improvement in market demand in the back half of the year. However, as we closed out the second quarter and based on current trends, we now see a slightly flatter demand profile for the back half of the year. As such, we are taking the high end of our previous range off the table and adjusting our full year revenue expectations to reflect this.

進入2023年，我們預計下半年市場需求將略有改善。然而，當我們結束第二季度時，根據當前趨勢，我們現在看到今年下半年的需求狀況略有平穩。因此，我們將取消之前範圍的高端，並調整我們的全年收入預期以反映這一點。

Positively, we are seeing continued margin strength and will again be raising our full year non-GAAP net income guidance. For the third quarter, we expect total GAAP revenue to be in the range of $149 million to $151 million, representing approximately 11% to 13% growth compared to the third quarter of 2022. We expect to report non-GAAP net income attributable to BlackLine in the range of $24 million to $26 million or $0.32 to $0.35 on a per share basis.

積極的一面是，我們看到利潤率持續走強，並將再次提高全年非公認會計準則淨利潤指引。對於第三季度，我們預計 GAAP 總收入將在 1.49 億美元至 1.51 億美元之間，與 2022 年第三季度相比增長約 11% 至 13%。我們預計將報告歸屬於 BlackLine 的非 GAAP 淨利潤範圍為2400 萬至2600 萬美元，或每股0.32 至0.35 美元。

Our share count is expected to be approximately 74.5 million diluted weighted average shares. And for the full year of 2023, we expect total GAAP revenue to be in the range of $586 million to $591 million, representing 12% to 13% growth compared to full year '22.

我們的股票數量預計約為 7450 萬股稀釋加權平均股。對於 2023 年全年，我們預計 GAAP 總收入將在 5.86 億美元至 5.91 億美元之間，與 22 年全年相比增長 12% 至 13%。

On the bottom line, we are again raising our guidance for non-GAAP net income attributable to BlackLine to $108 million to $112 million or $1.45 to $1.51 on a per share basis. Our share count is expected to be approximately 74.4 million diluted weighted average shares.

總體而言，我們再次將 BlackLine 的非 GAAP 淨利潤指引提高至 1.08 億至 1.12 億美元，即每股 1.45 至 1.51 美元。我們的股票數量預計約為 7440 萬股稀釋加權平均股。

In closing, we expect to drive further operating efficiency across our business as we navigate the near-term period. As part of this, we will ensure that we have the appropriate level of capacity to match market demand while supporting our long-term growth objectives.

最後，我們希望在近期內進一步提高整個業務的運營效率。作為其中的一部分，我們將確保我們擁有適當的能力來滿足市場需求，同時支持我們的長期增長目標。

I'll now ask the operator to open the discussion to take your questions.

我現在請接線員開始討論以回答您的問題。

(Operator Instructions) Our first question comes from the line of Rob Oliver of Baird.

（操作員說明）我們的第一個問題來自 Baird 的 Rob Oliver。

I had 2 questions. Owen one for you and then I had a follow-up for Mark. Owen, you mentioned in your prepared remarks around what essentially sounded like a move towards vertical sales, which sounds exciting because in some of the verticals you guys have mentioned, you have some really big fish and some great reference customers. I just would be curious to know does this involve a sales reorg? Where are we right now in that process? And when should we begin to see kind of results of that effort?

我有兩個問題。歐文給你一個，然後我給馬克做了一個後續。歐文，您在準備好的發言中提到了聽起來基本上像是向垂直銷售邁進的方向，這聽起來令人興奮，因為在你們提到的一些垂直領域，您有一些真正的大魚和一些很棒的參考客戶。我只是想知道這是否涉及銷售重組？我們現在在這個過程中處於什麼位置？我們什麼時候應該開始看到這種努力的成果？

Sure. Thanks, Rob, good to hear from you. So I think one of the things that's become very apparent as Therese and I and the leadership team have been digging into our business, is the strength that we have in all the industry verticals. And you can start that, for example, broadly, let's say, financial services, where we have a tremendous clientele, and then you can drill down further and you could take that into the insurance industry, and then you could take that down to life insurance or property and casualty or agents and brokers.

當然。謝謝，羅布，很高興收到你的來信。因此，我認為，隨著特蕾莎和我以及領導團隊深入研究我們的業務，變得非常明顯的一件事是我們在所有行業垂直領域的實力。你可以開始，例如，廣泛地說，金融服務，我們擁有巨大的客戶群，然後你可以進一步深入，你可以將其帶入保險行業，然後你可以將其付諸實踐保險或財產和傷亡或代理人和經紀人。

And what I find remarkable is that we have so much depth of knowledge in the organization from those experiences with those customers. So when our customers are speaking with us, they talk broadly about our domain expertise as we engage with them, but then the ability to go and have really meaty conversations with them in their unique issues, I think, is something that is quite a differentiator for us.

我發現值得注意的是，我們從與這些客戶打交道的經歷中獲得了對組織的深入了解。因此，當我們的客戶與我們交談時，他們會在我們與他們接觸時廣泛談論我們的領域專業知識，但我認為，能夠就他們獨特的問題與他們進行真正有意義的對話，這是一個非常重要的區別為了我們。

So we're just in the early stages of starting that or working very closely with all parts of our organization to make sure we're aligned to go to market to track that. But there'll be more to come, but that's directionally where we are heading.

因此，我們正處於啟動的早期階段，或者與我們組織的所有部門密切合作，以確保我們能夠協調一致地進入市場來跟踪這一情況。但還會有更多的事情發生，但這就是我們前進的方向。

Okay. Great. I appreciate that. And then, Mark, one for you. You closed your remarks by talking about the operating leverage. Obviously, the results so far really speak for themselves. You guys entered the year, I think it was 89% to 94%. And you're shaking out 60% or so, roughly above that number right now. So I guess, can you just help us understand, you were fairly clear early on that there was some low-hanging fruit in terms of infrastructure costs and others. How should we feel about the continued opportunities to find leverage in the business, particularly relative to some of the branding, marketing and sales initiatives that may cost some money?

好的。偉大的。我很感激。然後，馬克，給你一張。您通過談論運營槓桿來結束髮言。顯然，到目前為止的結果確實說明了一切。你們進入這一年，我認為是 89% 到 94%。你已經搖出了 60% 左右，大約高於現在的這個數字。所以我想，您能否幫助我們理解，您很早就很清楚，在基礎設施成本和其他方面有一些唾手可得的成果。我們應該如何看待在業務中尋找槓桿作用的持續機會，特別是相對於一些可能需要花費一些錢的品牌、營銷和銷售舉措？

Yes. Thanks, Rob. Look, I think from the comments from Therese and Owen earlier, you can see the intensity for which they're focused and we all are on driving productivity, driving operating leverage and efficiency, most of which is sustainable in our business model. One of the areas is over the last several years, like a lot of companies, we've been hiring ahead of the curve, particularly, we've talked about this in the area of sales capacity and in the go-to-market unit.

是的。謝謝，羅布。聽著，我認為從特蕾莎和歐文早些時候的評論中，你可以看到他們所關注的強度，我們都致力於提高生產力、提高運營槓桿和效率，其中大部分在我們的商業模式中是可持續的。其中一個領域是在過去幾年中，像許多公司一樣，我們一直在提前招聘，特別是，我們在銷售能力和進入市場部門方面討論了這一點。

So as we meet the level of demand, it means we're hiring less in the current environment, and that as we move forward, and we've begun again at some point to see the demand environment start to increase, there'll be areas that will rehydrate. But for the most part, we're finding operating leverage across the business, sales and marketing, product and tech and in the G&A side of this.

因此，當我們滿足需求水平時，這意味著我們在當前環境下招聘的人數減少，隨著我們前進，我們在某個時候再次開始看到需求環境開始增加，將會有會補水的區域。但在大多數情況下，我們在業務、銷售和營銷、產品和技術以及一般管理費用方面找到了運營槓桿。

The team has been working very hard to help deliver this. And so we're really very proud to be able to deliver these kinds of efficiencies and results given all of the other growth initiatives and things that we're currently focused on.

該團隊一直在努力幫助實現這一目標。因此，考慮到我們目前關注的所有其他增長計劃和事情，我們真的非常自豪能夠提供這種效率和成果。

Our next question comes from the line of Alex Sklar of Raymond James.

我們的下一個問題來自 Raymond James 的 Alex Sklar。

I had a 2-part question for Mark and Therese on strategic products. I guess, first, here for Mark. I want to ask about how the quota attainment for strategic products' basket is trending. I know you put in that specific level for your sales force and if you've made any changes there? And then second for Therese, I appreciate all the prepared remarks, comments on the FRA traction and as a pre-consolidation solution. Can you just elaborate a little bit more on whether that opens up any ancillary areas for BlackLine to expand into?

我向馬克和特蕾莎提出了一個關於戰略產品的問題，分為兩部分。我想，首先，這裡是馬克。我想問一下戰略產品籃子的配額完成情況趨勢如何。我知道您為銷售人員設定了特定的級別，您是否對此進行了任何更改？其次是 Therese，我感謝所有準備好的評論、對 FRA 牽引力和預整合解決方案的評論。您能否詳細說明一下這是否為 BlackLine 開闢了任何可以擴展的輔助領域？

Yes, I'll start. As you know, we did put a sales quota for strategic products on the sales team. And now along with everyone else in the company, they've got skin in the game to deliver strategic products to the base. And so at this point in the year, we have not made changes to any of the quotas around this, which is sort of reinforcing our drive to sell into the base strategic products, which we know are a very valuable opportunity for our customers to -- in this digital transformation age and this sort of margin enhancement age, for them could be of great value. So we're all still at the moment, very focused on strategic products.

是的，我要開始了。如您所知，我們確實為銷售團隊設定了戰略產品的銷售配額。現在，他們與公司的其他所有人一起，共同參與向基地提供戰略產品的遊戲。因此，今年的這個時候，我們還沒有對這方面的任何配額進行更改，這在某種程度上加強了我們銷售基礎戰略產品的動力，我們知道這對我們的客戶來說是一個非常寶貴的機會- - 在這個數字化轉型時代和這種利潤提升時代，對他們來說可能具有巨大的價值。所以我們目前仍然非常專注於戰略產品。

And Alex, thanks for asking about FRA. It's a great example of customer-driven innovation. And our customers have been asking for this type of solution for quite a while, and we have delivered a very rich product, and we think it delivers some real value to them. We -- and to your -- you're exactly right in where you're going. We do think that the FRA solution is a bigger platform than we may have initially thought. And it's got some very interesting use cases for our customers, particularly in the mid-market where they have less tools and less automation to really help them with some of their close and period-end processes and reporting. So there will be more to follow on this at BeyondTheBlack. And as much as I would love to take about an hour to tell you more, I know that Mark and Owen would shut me down.

Alex，感謝您詢問有關 FRA 的問題。這是客戶驅動創新的一個很好的例子。我們的客戶長期以來一直在要求這種類型的解決方案，我們已經提供了非常豐富的產品，我們認為它為他們帶來了一些真正的價值。我們——以及您的——您的方向完全正確。我們確實認為 FRA 解決方案是一個比我們最初想像的更大的平台。它為我們的客戶提供了一些非常有趣的用例，特別是在中端市場，他們的工具和自動化程度較低，無法真正幫助他們完成一些期末流程和報告。因此，BeyondTheBlack 將會有更多相關內容。儘管我很想花一個小時告訴你更多信息，但我知道馬克和歐文會讓我閉嘴。

All right. That's great color and look forward to hearing more about it next month. Then one follow-up for you, Owen, on the 5-day implementation program, it seems like a really great natural extension for what you were already doing with MAP. Can you just help frame know what percent of kind of the mid-market target customers you think that expedited implementation can make sense for? And then if partners are going to be enabled to sell this.

好的。這是很棒的顏色，期待下個月聽到更多關於它的信息。然後是您的後續行動，Owen，關於為期 5 天的實施計劃，這似乎是您已經使用 MAP 所做的事情的一個非常好的自然擴展。您能否幫助我們了解您認為加快實施對中端市場目標客戶的比例是多少？然後合作夥伴是否能夠出售此產品。

Yes. So let me start, and then I'm also going to ask Therese a way because he's been a little bit closer to all parts of the 5-day implementation. I think what we've seen so far is, as we've been talking with customers, with our partners, with prospects that the idea of being able to do something this quickly is important. I don't know what the percentage will be, but it's probably higher than we might have originally estimated. We certainly would like to see others be enabled where it's appropriate. And so we're trying to work through that right now. Therese, like I said, has been a lot closer to all the day-to-day pieces of this. So do you want to pick up on that?

是的。那麼讓我開始吧，然後我還要向 Therese 詢問一個方法，因為他已經更接近 5 天實施的所有部分了。我認為，到目前為止，我們所看到的是，正如我們與客戶、合作夥伴和潛在客戶交談時所看到的那樣，能夠如此迅速地做某事的想法很重要。我不知道這個百分比是多少，但可能比我們最初估計的要高。我們當然希望看到其他人在適當的情況下得到啟用。所以我們現在正在努力解決這個問題。正如我所說，特蕾莎對所有日常工作都更加了解。那麼你想了解這一點嗎？

Absolutely. So first off, just to be clear. Implementing BlackLine can be very straightforward, like this 5-day or it can be more involved depending on the type of products that someone purchases or the size and reach of the customer. So for example, an intercompany implementation across 50 different global entities is going to be very different than account recs for a small mid-market company.

絕對地。首先，要明確一點。實施 BlackLine 可以非常簡單，例如 5 天，也可以根據某人購買的產品類型或客戶的規模和覆蓋範圍而更加複雜。例如，跨 50 個不同的全球實體的公司間實施將與小型中型市場公司的帳戶建議有很大不同。

So the 5-day implementation is specific right now to mid-market companies that are coming through our map process. All right? And the idea with this, it's very interesting because we come on site, all right? We've already gotten the files from our customers and we've enabled the instances. And we basically work through all the things that if they're busy with other things, then they could take months to actually happen.

因此，為期 5 天的實施目前專門針對正在經歷我們的地圖流程的中型市場公司。好的？這個想法非常有趣，因為我們來到現場，好嗎？我們已經從客戶那裡獲得了文件，並且已經啟用了實例。我們基本上會解決所有的事情，如果他們忙於其他事情，那麼它們可能需要幾個月的時間才能真正發生。

But we end up not only getting them up and running. In fact, in one instance, we did it in 4 days, all right? We also get them trained. And so after that comes hypercare to get them through their first couple of closes, but it really -- it just sets the standard for immediate value going to the customer and it increases their appetite to do more.

但我們最終不僅僅是讓它們啟動並運行。事實上，有一次我們只用了 4 天就完成了，好嗎？我們還對他們進行培訓。因此，在此之後，就會出現超級關懷，幫助他們度過最初的幾次關門，但實際上，它只是為客戶提供即時價值設定了標準，並增加了他們做更多事情的胃口。

It gets them a very early success, and they go, okay, this works, what else can we do with BlackLine? So the other thing that I like about this, Alex, is that it really helps us build relationships with our customers, okay? When you are face to face in the conference room with them for 8 hours a day, 5 days straight. You get to know them. And again, we like having good relationships with our customers.

這讓他們很早就取得了成功，他們說，好吧，這可行，我們還能用 BlackLine 做什麼？亞歷克斯，我喜歡這個的另一件事是，它確實有助於我們與客戶建立關係，好嗎？當你連續 5 天每天在會議室與他們面對面交流時。你會認識他們。再說一遍，我們喜歡與客戶建立良好的關係。

So we're very pleased with how that initiative is going. And I do think to Owen's point, I think it's going to expand far bigger than what we initially thought.

因此，我們對該計劃的進展感到非常滿意。我確實認為，就歐文的觀點而言，我認為它的擴張範圍將比我們最初想像的要大得多。

Our next question comes from the line of Steve Enders of Citi.

我們的下一個問題來自花旗銀行的史蒂夫·恩德斯。

Okay. Great. Maybe to start, I just want to ask on what has exactly changed in the macro situation that's leading to the lowered outlook here? Are things changing on pipeline development, sales cycles or anything kind of mid-market or enterprise. I guess what is exactly different today than maybe you were guiding to before?

好的。偉大的。也許首先，我只想問宏觀形勢到底發生了什麼變化，導致了前景的下調？管道開發、銷售週期或任何類型的中端市場或企業方面的情況是否發生變化？我想今天與您之前指導的內容到底有什麼不同？

Yes. Look, I don't know that I would sit here and say that the macro has changed tremendously from where we were, but I think that we're still sitting here watching our customers and prospects, think about how they prioritize their spend, how decision-making is happening. There certainly are a few more people around the table now weighing in on the conversation.

是的。聽著，我不知道我會坐在這裡說宏觀環境與我們所處的位置相比發生了巨大變化，但我認為我們仍然坐在這裡觀察我們的客戶和潛在客戶，思考他們如何優先考慮他們的支出，如何決策正在發生。現在肯定還有更多的人在參與這場對話。

So every time you add a little bit more to that, it takes just a little bit longer. So when I look at the top of the funnel, we'll look at the top of the funnel together as a leadership team. We still feel pretty good about those things that are coming in. But again, like everything else, it's how you get them through the funnel and how quickly that takes place.

所以每次你添加一點點，就需要更長的時間。因此，當我查看漏斗頂部時，我們將作為領導團隊一起查看漏斗頂部。我們仍然對即將到來的這些東西感覺很好。但同樣，就像其他所有事情一樣，重要的是你如何讓它們通過漏斗以及發生的速度有多快。

And so we're certainly seeing CFOs more involved in the process, the CIO more involved in the process. And so we're continuing to work our way through that with them. I think in some ways, while it doesn't feel great that it's taking a little bit longer today, the positive from a BlackLine perspective is the more time our prospects and customers spend with us, I think the better they feel about the value proposition that BlackLine can bring to them.

因此，我們肯定會看到首席財務官更多地參與該流程，首席信息官更多地參與該流程。因此，我們將繼續與他們一起解決這個問題。我認為在某些方面，雖然今天花費的時間有點長，這感覺不太好，但從BlackLine 的角度來看，積極的一面是我們的潛在客戶和客戶在我們身上花費的時間越多，我認為他們對價值主張的感覺就越好BlackLine 可以為他們帶來。

And so it's a little bit of a timing issue for us. We're working our way through it. but I don't think that I would sit here to say anything has changed that dramatically on the macro. I do think we were hoping by the third quarter of this year that it would have cleared it up a little bit. That quite hasn't happened yet, as you all know.

所以這對我們來說是一個時間問題。我們正在努力解決這個問題。但我不認為我會坐在這裡說宏觀方面發生瞭如此巨大的變化。我確實認為我們希望到今年第三季度它會稍微好一點。眾所周知，這還沒有發生。

Okay. That's helpful context there. Maybe switching gears a little bit, just on some of the management changes that's happened again this past quarter. I guess, what's kind of the update on how you're looking to backfill those areas? Is there any kind of change in the strategy going forward now for both of those? I know that you've highlighted some changes already, but I guess any kind of further change in the strategy that we should be thinking about here as well?

好的。這是很有幫助的背景。也許會稍微改變一下態度，只是在上個季度再次發生的一些管理層變動上。我想，您希望如何回填這些區域有什麼樣的更新？現在這兩家公司的戰略有什麼變化嗎？我知道您已經強調了一些變化，但我想我們也應該在這裡考慮策略的任何進一步變化？

Yes. That's a really good question. And let me start with -- I think as we've talked as a leadership team, one of the hardest things to do in business is to fix something that isn't broken but you know that it's not good enough to get to where you want to go. And so we are very, very busy disrupting ourselves right now. And it's taking a great deal of our time and energy and passion to drive the execution on that vision, but that's what we are. That's what we are committed to.

是的。這是一個非常好的問題。讓我開始——我認為正如我們作為領導團隊所討論的那樣，在商業中最困難的事情之一就是修復一些沒有損壞的東西，但你知道它還不足以達到你想要的目標。想去。所以我們現在非常非常忙於擾亂自己。我們需要投入大量的時間、精力和熱情來推動這一願景的執行，但這就是我們的本質。這就是我們的承諾。

We will be sharing more about some of the strategic choices that we're making around BeyondTheBlack. But I think one of the things that the leadership team all feels good about, we've been very clear about the choices we want to make around all aspects of our strategy, whether it's partners, product, customer segmentation, things of that nature, geographic footprint.

我們將更多地分享我們圍繞 BeyondTheBlack 所做的一些戰略選擇。但我認為領導團隊都感覺良好的一件事是，我們非常清楚我們想要圍繞戰略的各個方面做出的選擇，無論是合作夥伴、產品、客戶細分，還是此類性質的事情，地理足跡。

And so we're going to be very clear and relentless in how we execute as we move forward. But I think there's a lot of optimism in the organization about what we're trying to do.

因此，在前進過程中，我們將非常明確並堅持不懈地執行。但我認為組織內部對我們正在努力做的事情抱有很多樂觀態度。

Our next question comes from the line of Pinjalim Bora of JPMorgan.

我們的下一個問題來自摩根大通的 Pinjalim Bora。

Great. I want to go back to the macro point and ask you if there is any difference that you're seeing in the different segments between mid-market and enterprise. I remember, I think last time you said mid-market was lagging a bit, enterprise was more steady. Did that kind of improve or it seems like it's or might have been kind of the same as last quarter?

偉大的。我想回到宏觀角度，問您在中端市場和企業之間的不同細分市場中是否看到任何差異。我記得，我認為上次你說中端市場有點滯後，企業更加穩定。這種情況是否有所改善，或者看起來與上季度相同或可能與上季度相同？

Yes. I wouldn't say that it's changed dramatically quarter-over-quarter. At a high level, I would say the themes feel pretty similar. As I said, deals are taking a little bit longer. There's more approvals required, more scrutiny from more buyers. But I think if you're looking at the mid-market or enterprise, I'm not sure that I would sit there and say it's that different.

是的。我不會說它每個季度都發生了巨大的變化。從高層次上來說，我想說這些主題感覺非常相似。正如我所說，交易需要更長的時間。需要更多的批准，更多買家的更多審查。但我認為，如果你關注的是中端市場或企業，我不確定我是否會坐在那裡說有那麼不同。

Certainly, we still can see parts of the world that are lagging from where we would like them to be, particularly Western Europe. But that's something that we'll just continue to work our way through. But conversely, we're very optimistic about Japan. We have our BeyondTheBlack event coming up in just a couple of weeks where we have 2,500 prospects and customers registered, which is just unbelievable from my vantage point. And so we're excited about where things might be heading, but it also takes time to get there. And so we're just going to keep executing as relentlessly as we can to move forward.

當然，我們仍然可以看到世界上的一些地方比我們希望的那樣落後，特別是西歐。但這是我們將繼續努力解決的問題。但相反，我們對日本非常樂觀。我們的 BeyondTheBlack 活動將在短短幾週內舉行，我們有 2,500 名潛在客戶和客戶註冊，從我的角度來看，這簡直令人難以置信。因此，我們對事情的發展方向感到興奮，但實現這一目標還需要時間。因此，我們將繼續盡我們所能地繼續前進。

Got it. One question on the industry or the verticalization of the sales force. Are you thinking of verticalizing kind of products as well? Or is that purely a sales motion?

知道了。關於行業或銷售隊伍垂直化的一個問題。您是否也在考慮垂直化某種產品？或者這純粹是一個銷售動作？

I'm sorry, verticalization of products?

抱歉，產品垂直化？

Yes.

是的。

Look, I'll turn this over to Therese in a second. But as Therese and I and the leadership team have been talking, there are things that are very unique to specific industries, and we want to make sure working with our partners and our customers that we help customize our solutions to meet those particular unique aspects of what they need.

聽著，我馬上就把這個轉給特蕾莎。但正如特蕾莎和我以及領導團隊一直在談論的那樣，有些事情對於特定行業來說是非常獨特的，我們希望確保與我們的合作夥伴和客戶合作，幫助定制我們的解決方案，以滿足這些特定行業的獨特方面他們需要什麼。

And so we've been very busy talking to customers about that over the last 4, 5 months at this particular -- through 6 months almost together now 5-plus months. And so we're going to continue to look at that with our partners and customers. But I think that there is a belief that there's more that we can do to help them with their particular unique issues. And it transcends the industry, if you will. So the same issues you might deal with an automobile manufacturer in Germany are the same as one in Japan, is the same as the U.S. auto manufacturers as well. And so that's what we're looking to make sure we do. But Therese, I know you're spending a lot of time thinking about this.

因此，在過去的 4、5 個月裡，我們一直非常忙於與客戶討論這個問題——過去 6 個月幾乎在一起，現在已經有 5 個多月了。因此，我們將繼續與我們的合作夥伴和客戶一起研究這一問題。但我認為，人們相信我們可以做更多的事情來幫助他們解決特殊的問題。如果你願意的話，它超越了行業。因此，您可能與德國汽車製造商處理的問題與日本汽車製造商處理的問題相同，與美國汽車製造商處理的問題也相同。這就是我們希望確保做到的。但是特蕾莎，我知道你花了很多時間思考這個問題。

Yes, absolutely. So you asked if it was just sales motion or sales motion plus product. And the answer is the latter. There are definitely functionalities and features that we are focused on building that will be more valuable to some industries more than others.

是的，一點沒錯。所以你問這是否只是銷售動議或銷售動議加產品。答案是後者。我們專注於構建的某些功能和特性肯定對某些行業比其他行業更有價值。

Okay, so for example, banking has some pretty specific requirements that are kind of cool. But those -- some of those same requirements actually fit nicely into retail. So what we want to do when we do make enhancements to our product offerings, we want to make sure that we can take what we have make it highly configurable, not customizable and if it can apply to more than one industry, then that's a win.

好的，例如，銀行業有一些非常具體的要求，這很酷。但其中一些相同的要求實際上非常適合零售業。因此，當我們確實對我們的產品進行增強時，我們想要做的是，我們希望確保我們可以利用我們現有的產品，使其具有高度可配置性，而不是可定制性，並且如果它可以適用於多個行業，那麼這就是一場胜利。

So there will be some product modifications in order to make sure that we can address the specific needs of different industries. However, we do want to repurpose. We want to make sure it's very configurable and flexible and that's how you get a win. Hope that helps.

因此，我們會對產品進行一些修改，以確保我們能夠滿足不同行業的特定需求。然而，我們確實想重新調整用途。我們希望確保它具有很強的可配置性和靈活性，這就是您獲勝的方式。希望有幫助。

Our next question comes from the line of Koji Ikeda of Bank of America.

我們的下一個問題來自美國銀行的池田浩司。

I wanted to ask kind of the triangulation of revenue guidance and billing performance in the second quarter. And really just how to think about the billings growth trend for the rest of the year, really trying to hone in on what that fourth quarter exit rate could be. So any sort of quantitative or qualitative color there would be helpful, either from a deferred revenue perspective or renewal cadence or anything else we should be thinking about with respect to billings.

我想問一下第二季度收入指導和計費績效的三角測量。實際上，如何思考今年剩餘時間的比林斯增長趨勢，真正努力磨練第四季度的退出率可能是多少。因此，任何定量或定性的顏色都會有所幫助，無論是從遞延收入的角度、續訂節奏還是我們應該考慮的有關賬單的其他任何方面。

Yes. Thanks, Koji. Given what we're seeing in the leading indicators in the business and kind of where we are in the year, it wouldn't be -- or we would most likely expect to see for the balance of the year a similar trend coming out of Q2 that we've seen. And that's really sort of this macro environment manifesting -- Owen talked about it sort of impacting many parts of the business, including Europe and mid-market, but also at the very high end, large deals, digital transformation. Those are the ones that move the needle. And so as we sort of take a pragmatic view heading into the end of the year, we don't guide on billings, but I think based on the revenue guidance that we've given, you'd see that our expectation is to probably see a flat environment through the remainder of the year.

是的。謝謝，小二。考慮到我們在業務領先指標中看到的情況以及我們今年所處的情況，情況不會如此——或者我們很可能預計今年剩餘時間會出現類似的趨勢我們已經看到了Q2。這確實是這種宏觀環境的體現——歐文談到，它對業務的許多部分產生了影響，包括歐洲和中端市場，但也影響了非常高端的大型交易、數字化轉型。這些才是推動局勢發展的因素。因此，當我們在年底採取務實的觀點時，我們不會對賬單進行指導，但我認為根據我們給出的收入指導，你會發現我們的期望可能是預計今年剩餘時間環境將持平。

That's super helpful, Mark. And just one follow-up here on SAP. When we look at the growth rate on the SAP partnership revenue. It's been bouncing around a little bit, a little bit above 20%, at 20%, a little bit below 20% over the past several quarters. I mean, how do we think about this channel? And what needs to happen to drive sustained 20%-plus growth there? Is it just the part of...

這非常有幫助，馬克。這裡只是關於 SAP 的一項後續行動。當我們查看 SAP 合作夥伴收入的增長率時。在過去的幾個季度裡，它一直在波動，略高於 20%，略高於 20%，略低於 20%。我的意思是，我們如何看待這個頻道？需要做什麼才能推動該地區持續 20% 以上的增長？難道這只是一部分……

Yes, let me start.

是的，讓我開始吧。

Yes, yes.

是的是的。

Thanks, Koji. Sorry, I interrupted. But let me just start with your comment. The SAP growth trend actually was a bit ahead of the overall company even in this last quarter. It's not uncommon, as you know, to see pretty material fluctuations on a quarterly basis where they can be very back-end loaded.

謝謝，小二。抱歉，我打擾了。但讓我從你的評論開始。即使在最後一個季度，SAP 的增長趨勢實際上也領先於整個公司。如您所知，每季度出現相當大的波動並不罕見，而且後端負載可能很大。

They also carry the large part of our large deal digital transformation. Those are the very strategic parts of our business pipeline. And so I think as -- Owen is going to talk in a minute about driving the SAP partnership, but it has actually performed quite well, at least in this environment compared to other parts of the business. And so from a partnership standpoint, beginning with what we saw at the end of last year and again in this last quarter, it's holding up nicely.

它們還承擔了我們大型交易數字化轉型的很大一部分。這些是我們業務渠道中非常具有戰略意義的部分。因此，我認為——歐文稍後將討論如何推動 SAP 合作夥伴關係，但它實際上表現得相當好，至少在這種環境下與業務的其他部分相比是這樣。因此，從合作夥伴關係的角度來看，從我們去年年底和上個季度所看到的情況開始，它的表現良好。

Owen, you wanted to say something about that?

歐文，你想對此說些什麼嗎？

No, look, I think, as you can imagine, the SAP partnership is critical to all of us that's at BlackLine. And Therese, Mark, myself and other leaders are spending a significant amount of time to make sure that we execute against this top priority. I think the big thing for us to do is to get that more consistent experience around the world as we work with SAP. And so we're going to make sure that we do that. And in fact, in the short order, Therese, Mark and I will be in a number of European countries making sure we continue to deepen that footprint.

不，我認為，正如您可以想像的那樣，SAP 合作夥伴關係對於 BlackLine 的所有人都至關重要。特蕾莎、馬克、我本人和其他領導者正在花費大量時間來確保我們執行這一首要任務。我認為我們要做的最重要的事情是在與 SAP 合作時在世界各地獲得更一致的體驗。因此，我們將確保做到這一點。事實上，在短期內，特蕾莎、馬克和我將前往許多歐洲國家，確保我們繼續加深我們的足跡。

But also, we want to make sure we're leveraging our other partners that have strong relationships with SAP as well. So we talked about this Power of 3, which is SAP, ourselves and a partner, and we're going to continue to work that. But it is absolutely critical as we move forward that we continue to work together to achieve the full potential of this relationship.

而且，我們還希望確保利用與 SAP 有著密切關係的其他合作夥伴。因此，我們討論了“3 的力量”，即 SAP、我們自己和合作夥伴，我們將繼續致力於此。但在我們前進的過程中，繼續共同努力以充分發揮這種關係的潛力絕對是至關重要的。

Next question comes from the line of Matt VanVliet of BTIG.

下一個問題來自 BTIG 的 Matt VanVliet。

I wanted to see if we could get a little bit more color on the blue chip SI partner that you talked about expanding to a reseller agreement. Any additional details you can help us with? Kind of what the discussions were there? How much they've sort of invested in the BlackLine ecosystem? And whether this is reflective of potential other expansion deals with some of your other partners? Or is there any kind of -- while there is exclusivity or just kind of preference here because of their past investments?

我想看看我們是否可以對藍籌股 SI 合作夥伴（您談到擴展到經銷商協議）有更多的了解。您還有什麼可以幫助我們的其他細節嗎？那裡的討論是什麼樣的？他們在 BlackLine 生態系統上投資了多少？這是否反映了您與其他一些合作夥伴之間潛在的其他擴張交易？或者是否存在某種——雖然由於他們過去的投資而存在排他性或只是某種偏好？

Yes. So thank you. And as you know, I came from the consulting world, and I believe that I have a pretty good understanding of what's important to our partners and how best to sort of build those relationships and partners in a way that they're structured and aligned and actually getting executed against. So I think for BlackLine, as we move forward, we're trying to make sure that we have the right partners with the right incentives to drive our mutual success. And you heard in the prepared remarks, we've become very clear with our partners of what they can expect from BlackLine and what we expect in return.

是的。所以謝謝。如您所知，我來自諮詢界，我相信我非常了解什麼對我們的合作夥伴來說很重要，以及如何最好地建立這些關係和合作夥伴，使其結構一致，並且實際上被處決了。因此，我認為對於 BlackLine 來說，隨著我們的前進，我們正在努力確保我們擁有合適的合作夥伴和適當的激勵措施來推動我們共同的成功。您在準備好的發言中聽到了，我們已經與我們的合作夥伴非常清楚地了解了他們對 BlackLine 的期望以及我們期望的回報。

In this particular relationship, this is a partner that's had a long-standing relationship with us. They've invested quite a bit around the world. And it's sort of the next stage in their own evolution as many of these consultancies will move from not just doing implementation, but to doing business process outsourcing. I think many of them call it their own operate business as well as being resellers in various parts of the world.

在這種特殊的關係中，這是一個與我們有著長期關係的合作夥伴。他們在世界各地進行了大量投資。這可以說是他們自身發展的下一階段，因為許多諮詢公司將不再僅僅進行實施，而是進行業務流程外包。我認為他們中的許多人稱其為自己經營的業務以及世界各地的經銷商。

So I don't want to predict that there'll be more arrangements like this, but we are certainly making sure that for those partners who we choose to do business with and choose to do business with us, that we take full advantage of all of those firms' capabilities with what all that BlackLine has to offer.

因此，我不想預測會有更多這樣的安排，但我們肯定會確保，對於那些我們選擇與之開展業務並選擇與我們開展業務的合作夥伴，我們充分利用所有將這些公司的能力與BlackLine 所提供的一切結合起來。

So we'll keep moving forward with this. And certainly, we're engaging quite frequently with our partners to make sure that we have comprehensive plans as we can move forward with them. And that will be everything from how we govern our relationship to the plans we create together to how do we make sure the professionals on their side are certified to deliver BlackLine offerings, how we train them, how we co-invest and things together.

所以我們將繼續推進這一工作。當然，我們經常與合作夥伴接觸，以確保我們有全面的計劃，以便我們能夠推進這些計劃。這將涵蓋從我們如何管理我們的關係到我們共同製定的計劃，到我們如何確保他們這邊的專業人士獲得提供 BlackLine 產品的認證，我們如何培訓他們，我們如何共同投資等等。

So there's a whole myriad of things we're doing to make sure that this partner relationship, this partner channel for us works the right way.

因此，我們正在做很多事情來確保這種合作夥伴關係、我們的合作夥伴渠道以正確的方式運作。

Okay. Very helpful. And then you talked about high renewal rates for overall software comparisons, but not enough for your own liking at this point. So curious what kind of programs or incentives you're putting in place internally to improve that further? And then sort of off of that, should we expect to potentially see some improvements on the net dollar retention rate as presumably you're maybe spending a little more time engaging with your customers on a frequent basis? And with that, maybe upselling is more potential.

好的。很有幫助。然後您談到了整體軟件比較的高續訂率，但目前還不足以滿足您自己的喜好。很好奇您在內部實施了什麼樣的計劃或激勵措施來進一步改進？除此之外，我們是否應該期望看到淨美元保留率有所改善，因為假設您可能會花更多時間與客戶頻繁互動？有了這個，也許追加銷售更有潛力。

Thank you. And that's a really good question. Look, I think from our perspective, we've invested strategically into our customer success teams over the years. And candidly, I think we've had good results from both a retention and expansion perspective. But from my view, not good enough. And so you fight really hard to get a customer in the front door, and there's no way in hell I want them to go out the back door.

謝謝。這是一個非常好的問題。看，我認為從我們的角度來看，多年來我們對客戶成功團隊進行了戰略投資。坦率地說，我認為從保留和擴張的角度來看，我們都取得了良好的成果。但從我看來，還不夠好。因此，你非常努力地爭取前門的顧客，而我根本不希望他們從後門出去。

And so we're going to make sure that we do everything we have to, to make sure that those customers that come the BlackLine achieve all that we have to offer to them. And so Therese, Mark, the rest of the leadership team, we are intent on driving even better results for our customers. We talked about the 5-day implementation as an example. But there are other things that we are doing.

因此，我們將確保盡一切努力，確保那些使用 BlackLine 的客戶能夠獲得我們為他們提供的一切服務。因此，Therese、Mark 以及領導團隊的其他成員，我們致力於為客戶帶來更好的結果。我們以 5 天的實施為例。但我們還在做其他事情。

We're consolidating some of our customer support teams to make sure they align much more closely with our account management organization to again, make sure we're driving success for our customers. And we're not waiting for the phone to ring to call us. We're proactively engaging with those customers much more aggressively over the last couple of months to make sure that we are delivering on the BlackLine promise.

我們正在整合一些客戶支持團隊，以確保他們與我們的客戶管理組織更加緊密地配合，以再次確保我們為客戶帶來成功。我們不會等待電話響起來給我們打電話。在過去的幾個月裡，我們更加積極地與這些客戶進行接觸，以確保我們兌現 BlackLine 的承諾。

So we're working really hard on that. And then also for the new customers that are coming through the door, we want to make sure that they're getting the full value from day one. And so it's a big effort for what we're trying to do, but we think it's the right thing to do for our customers that will allow us to not only land a customer, but to delight them and then to expand that relationship over time.

所以我們正在為此努力。對於進來的新客戶，我們希望確保他們從第一天起就獲得全部價值。因此，這對於我們正在努力做的事情來說是一項巨大的努力，但我們認為這是為我們的客戶做的正確的事情，這將使我們不僅能夠吸引客戶，而且能夠取悅他們，然後隨著時間的推移擴大這種關係。

Yes, Matt, the renewal rate in addition to what Owen just said, is 97% for the enterprise. And driving that higher will absolutely have an impact on the dollar retention rate. But the biggest impact we can have on the retention rate, of course, is the expansion within those accounts.

是的，馬特，續約率加上歐文剛才說的，對於企業來說是97%。推動美元走高絕對會對美元保留率產生影響。當然，我們對保留率的最大影響是這些賬戶的擴張。

The ability to show the customer and help them digitally transform using our strategic product portfolio and to fully adopt and penetrate globally inside their companies. So those are the big sort of additions to the rates.

能夠向客戶展示並幫助他們利用我們的戰略產品組合進行數字化轉型，並在其公司內部全面採用和滲透到全球範圍內。所以這些都是對費率的重大補充。

Our next question comes from the line of Joseph Meares of Truist Securities.

我們的下一個問題來自 Truist Securities 的 Joseph Meares。

This is Bobby D. on for Joe. Regarding 5-Day fast track implementations, is there any early evidence that reducing implementation time can actually reaccelerate customer adds? And then I had one follow-up.

我是喬的鮑比·D.。關於 5 天快速通道實施，是否有任何早期證據表明減少實施時間實際上可以重新加速客戶增加？然後我進行了一項後續行動。

Well, I do think it's a competitive differentiator, Bobby D. Right? I mean, the ability to get there, get it up and running and then they see immediate value. And then having customers -- you may have seen our press release on this, having customers that are willing to talk about that is certainly building enthusiasm with our prospects.

嗯，我確實認為這是一個競爭優勢，Bobby D。對嗎？我的意思是，有能力到達那裡，啟動並運行，然後他們就能立即看到價值。然後是客戶——您可能已經看到了我們對此的新聞稿，擁有願意談論這一點的客戶肯定會激發我們的潛在客戶的熱情。

Awesome. Sounds great. And then just one quick follow-up on an earlier question. But how are strategic product sales trending? And are those accretive to NRR currently?

驚人的。聽起來很棒。然後對之前的問題進行快速跟進。但戰略產品的銷售趨勢如何？目前這些是否會增加 NRR？

Yes. Our strategic product sales has been very strong over the last year or 2 even, and we've seen them typically range in the 25% to 30% of total bookings in any quarter. That's our target range and what we like to see. Given that portfolio and that it's expanded and that it is a big part of customers' transformation, we would like to see that at the 25% to 30% range. So at 20% in Q2 where it landed, not where we want it to be or need it to be. So we're working through many of these things that Owen has described to drive greater adoption and penetration in sales of those products.

是的。我們的戰略產品銷售在過去一年甚至兩年都非常強勁，我們發現它們通常佔任何季度總預訂量的 25% 到 30%。這是我們的目標範圍，也是我們希望看到的。鑑於該產品組合及其擴展以及它是客戶轉型的重要組成部分，我們希望看到這一比例在 25% 到 30% 的範圍內。因此，第二季度的 20% 是它所達到的水平，而不是我們希望或需要的水平。因此，我們正在努力解決歐文所描述的許多事情，以推動這些產品的更大採用和銷售滲透。

Our next question comes from the line of Andrew DeGasperi of Berenberg.

我們的下一個問題來自貝倫貝格的安德魯·德加斯佩里。

I just wanted to maybe ask a big picture question. You gave out some midterm targets at your Investor Day last year. And obviously, you've had some sizable changes within the organization over the last few months. I'm just wondering in terms of -- particularly as it pertains to revenue growth, I know the window there for returning to 2025 was 3 to 5 years. I guess just in terms of those numbers, are you still confident you can reach them? And would you plan to maybe updating us in the month or so at the BeyondTheBlack?

我只是想問一個大局問題。您在去年的投資者日上給出了一些中期目標。顯然，過去幾個月組織內部發生了一些相當大的變化。我只是想知道，特別是在收入增長方面，我知道回到 2025 年的窗口期是 3 到 5 年。我想僅就這些數字而言，您仍然有信心能夠達到目標嗎？您是否計劃在一個月左右的時間內在 BeyondTheBlack 向我們通報最新情況？

Yes. So as you know, we put out the targets literally less than a year ago, and we still believe that there are multiple levers that we have at our disposal to achieve those targets, whether it's our partner channel, working with SAP, the strategic product portfolio as well as new innovation. So all of these items support the future growth we envision for the business, and we're taking steps to make sure we deliver on that. So we feel good about the foundation, and we are focused on reaccelerating our growth going forward.

是的。如您所知，我們在不到一年前就提出了這些目標，我們仍然相信我們可以利用多種手段來實現這些目標，無論是我們的合作夥伴渠道，還是與戰略產品 SAP 合作產品組合以及新的創新。因此，所有這些項目都支持我們對業務未來的增長設想，我們正在採取措施確保實現這一目標。因此，我們對基金會感覺良好，並且我們專注於重新加速我們的未來增長。

And then lastly, on the gross margin side, I mean, do you -- when do you think the runway is to expand that to the 83-plus percent? Is that still likely? I mean that we've not seen the dividends yet coming through that line item?

最後，在毛利率方面，我的意思是，您認為什麼時候可以將毛利率擴大到 83% 以上？這還有可能嗎？我的意思是我們還沒有看到該行項目的股息？

That's right. Yes. We have not gotten that back to -- well, first, we've got a migration taking place that will take us into 2024 and onto the public cloud. And so until we complete that for all customers. We're substantially, I think, over -- or at least over halfway through it. We have a number of customers this year and next year to get through, and then we can start to move or migrate to a higher gross margin. So that's sort of our longer-term target or our midterm target as well.

這是正確的。是的。我們還沒有回到——嗯，首先，我們正在進行遷移，這將把我們帶入 2024 年並遷移到公共雲上。如此直到我們為所有客戶完成該任務。我認為，我們已經基本上結束了——或者至少已經完成了一半。今年和明年我們有很多客戶要打通，然後我們就可以開始轉向或者遷移到更高的毛利率。這也是我們的長期目標或中期目標。

Our next question comes from the line of Matt Stotler of William Blair.

我們的下一個問題來自威廉·布萊爾的馬特·斯托勒。

A couple of strategic products here, follow-ups. In terms of Intercompany, I mean you mentioned Intercompany Intelligence, obviously continuing to take a more holistic approach to intercompany financial management around that core ICH. Would love to just get some color and if that's -- you're seeing that make a difference in the pace of adoption for ICH for Intercompany, obviously, adjusting for kind of the near-term macro challenges given those are big deals.

這裡有幾個戰略產品，後續產品。就公司間而言，我的意思是您提到了公司間智能，顯然繼續圍繞核心 ICH 採取更全面的方法進行公司間財務管理。希望獲得一些色彩，如果是這樣的話，您會發現這對公司間 ICH 的採用速度產生了影響，顯然，考慮到這些都是大交易，因此需要針對近期宏觀挑戰進行調整。

And then as you think forward, what other levers do you think that you have to drive further adoption of those products specifically?

然後，當您展望未來時，您認為還必須採取哪些其他手段來推動這些產品的進一步採用？

Specifically, IFM or all strategic products? Just asking, which are you asking about?

具體來說，是 IFM 還是所有戰略產品？就問一下，你問的是哪個？

Specifically IFM.

特別是IFM。

It is ideally suited for large complex multinational organizations. And these customers really are focused on continuing to drive efficiencies in their business and adopt high automation. It is still a fairly long involved process because it's something that you've got to get buy-in across multiple areas of the business. You've got to have people that have an appetite for change and for transformation. And I wish I knew how to goose acceleration around digital transformation because that's really what we do so very, very well, but it really is just part of a journey that a company goes on.

它非常適合大型複雜的跨國組織。這些客戶確實專注於繼續提高業務效率並採用高度自動化。這仍然是一個相當漫長的過程，因為你必須得到業務多個領域的支持。你必須擁有渴望改變和轉型的人。我希望我知道如何加速數字化轉型，因為這確實是我們做得非常非常好的事情，但這確實只是公司旅程的一部分。

We did have a number of great IFM deals this quarter, and we still really expect it to be a key contributor to our longer-term growth.

本季度我們確實達成了許多偉大的 IFM 交易，我們仍然真正期望它成為我們長期增長的關鍵貢獻者。

Got it. That's helpful. And then a follow-up on the go-to-market. Obviously, you guys have discussed removing the overlay sales team for strategic products and introducing the general quotas there. I would love to just touch on if you're seeing that have any impact on deal momentum or top of the funnel, and any sense of if you would consider that to be running at full productivity in terms of selling strategic products? Or if there's still some room to go on that front as well?

知道了。這很有幫助。然後是上市的後續行動。顯然，你們已經討論過取消戰略產品的覆蓋銷售團隊並在那裡引入一般配額。我很想談談您是否認為這對交易動力或漏斗頂部有任何影響，以及您是否認為這在銷售戰略產品方面能夠充分發揮生產力？或者在這方面是否還有一些空間可以繼續？

Yes, there is still room to go. Year-to-date, I think we continue to be sort of in our target range at the low end on strategic products. We continue to see customers' interest level at the top of the funnel. But for us to close out this year and for the salespeople to participate, we need to convert and move these products and these deals through the pipeline. So we're intently focused on programs and customer, communication and sales performance that will do just that. So we know that the strategic products, particularly Therese gave some fascinating growth figures in not just in the AR product where we know that the customers that are using our products are getting incredible value for it and that they're accelerating their usage of those products.

是的，還有空間。今年迄今為止，我認為我們的戰略產品仍處於低端目標範圍內。我們繼續在漏斗頂部看到客戶的興趣水平。但為了讓我們今年結束並讓銷售人員參與進來，我們需要通過渠道轉換和轉移這些產品和交易。因此，我們專注於能夠做到這一點的計劃和客戶、溝通和銷售業績。因此，我們知道戰略產品，特別是 Therese，不僅在 AR 產品中提供了一些令人著迷的增長數據，我們知道使用我們產品的客戶正在從中獲得令人難以置信的價值，並且他們正在加速使用這些產品。

So it's really getting it into those hands and closing out those deals. So the strategic products quota this year was a good idea. We're still early in the year. We were a back-end loaded company. We've got pipeline for strategic products, and we're working hard to get those closed.

所以它實際上是把它交到這些人手中並完成這些交易。所以今年的戰略產品配額是個好主意。我們還處於年初。我們是一家後端負載的公司。我們擁有戰略產品的渠道，並且正在努力完成這些產品。

Our next question comes from the line of Chris Quintero of Morgan Stanley.

我們的下一個問題來自摩根士丹利的克里斯·金特羅。

Owen, I want to ask about the changes you're making to the global partner network. Are there any specifics you can give on how you expect to drive greater accountability and some of the commercial changes you're looking to make there?

歐文，我想問一下您對全球合作夥伴網絡所做的改變。您是否可以具體說明您希望如何推動更大的責任以及您希望在那裡做出的一些商業變革？

So the question is how are we looking to drive greater accountability in the global partnership network? Is that what I thought I heard you say?

因此，問題是我們如何尋求在全球合作夥伴網絡中推動更大的問責制？我以為我聽到你這麼說嗎？

Correct. Yes.

正確的。是的。

Yes. Look, I think that from my experiences being on both sides of this over many, many years. Lots of people sign up to be partners without a very clear understanding of what you would sort of call your wedding vows to make sure that each party understands what, in fact, they're committed to. And so best practices are to be very clear about that.

是的。聽著，我認為從我多年來在這兩個方面的經歷來看。許多人在簽約成為伴侶時，並不清楚所謂的婚禮誓言是什麼，以確保各方都明白他們實際上所承諾的是什麼。因此，最佳實踐應該非常清楚這一點。

And so that's a process that we are going through with all of our partners at this particular point in time, and we'll have that completed over the next 6, 8 weeks. We have -- at BeyondTheBlack, we have a big partner summit. And I expect that those that are willing to commit and that we're committing to, those relationships will get broader and deeper and more productive for everyone.

因此，這是我們在這個特定時間點與所有合作夥伴一起經歷的一個過程，我們將在接下來的 6、8 週內完成。我們在 BeyondTheBlack 舉辦了一次大型合作夥伴峰會。我希望那些願意做出承諾的人以及我們正在做出承諾的人，這些關係將會變得更廣泛、更深入、對每個人來說都更加富有成效。

And then I expect a number of partners to fall by the wayside because they're not going to be able to make the commitments that we need from them. And so rather than prolong something in name only, we're going to -- we'll move on from those. And so that's what we're working our way towards all around the globe at this point in time.

然後我預計許多合作夥伴會半途而廢，因為他們無法做出我們需要他們做出的承諾。因此，我們不會只是名義上延長某些事情，而是將繼續前進。這就是我們目前正在全球範圍內努力實現的目標。

Our next question comes from the line of Adam Hotchkiss of Goldman Sachs.

我們的下一個問題來自高盛的 Adam Hotchkiss。

Great. Would be great to get an update on how you're thinking about capital allocation here. I think there have been a couple of cases on the public and private side where M&A activity has picked up in the space. Just curious with the profitability coming in better and the 26 are pretty far down the curve here, how you're thinking about opportunities to continue to expand the portfolio inorganically or other capital allocation opportunities?

偉大的。如果您能在這裡了解您對資本配置的最新看法，那就太好了。我認為在公共和私人方面已經有一些案例表明該領域的併購活動有所增加。只是好奇盈利能力有所改善，而 26 家公司的盈利能力遠遠低於曲線，您如何考慮繼續無機擴展投資組合的機會或其他資本配置機會？

Yes. Thank you. With $1 billion on our balance sheet, and as you mentioned, some maturities that are fairly decent ways out, a couple of things that we view. That's -- it's a very strong weapon in our own market as a competitor where we've got the balance sheet.

是的。謝謝。我們的資產負債表上有 10 億美元，正如您提到的，一些到期日是相當不錯的出路，我們認為有幾件事。那是——作為我們擁有資產負債表的競爭對手，它在我們自己的市場上是一個非常強大的武器。

Second is we've got a number of deals that we continue to prove and validate our thesis around our strategy, our ability to move around inside the office of the CFO and raise that level of conversation to get inside these strategic transformations. The -- just as a reminder, the office of the CFO transformation is still very early. And so BlackLine's ability to play in those spaces continues to validate as we have done these deals and proven it.

其次，我們已經完成了許多交易，我們將繼續圍繞我們的戰略證明和驗證我們的論點，我們在首席財務官辦公室內調動的能力以及提高對話水平以深入了解這些戰略轉型的能力。提醒一下，首席財務官辦公室的轉型還處於早期階段。因此，隨著我們完成這些交易並證明這一點，BlackLine 在這些領域的能力繼續得到驗證。

So look, our view is that we can and will be opportunistic, very targeted, but we'll be looking at M&A, where we can make a difference and buy capabilities for our customers that are important to them, that will not just drive revenue growth but drive real value inside 4,000 of the biggest, best companies in the world. And so we're sort of leaning forward at the moment and our ability to use M&A as a growth strategy.

所以看，我們的觀點是，我們可以而且將會是機會主義的，非常有針對性的，但我們將考慮併購，我們可以做出改變並為我們的客戶購買對他們很重要的能力，這不僅僅是增加收入增長，但為世界上 4,000 家最大、最好的公司帶來真正的價值。因此，我們目前正在向前邁進，並有能力利用併購作為增長戰略。

Okay. Great. That's really helpful. And then I appreciate the color around strategic sales quotas, but just zooming out on sales productivity more broadly, it would be great to get a sense for how you're thinking about where you're at from a current productivity perspective? And how that's informing your view on optimal headcount? Any thoughts on incremental hiring, things like that would be helpful.

好的。偉大的。這真的很有幫助。然後，我很欣賞圍繞戰略銷售配額的顏色，但只要更廣泛地縮小銷售生產力，從當前生產力的角度了解您如何思考自己所處的位置，那就太好了？這如何影響您對最佳員工人數的看法？任何關於增量招聘的想法都會有幫助。

Yes. We had the benefit of an aggressive or at least an assertive hiring into the market demand last year. And so we've been able to decelerate on hiring on the demand side of the business, really focus on programs such as incentive and alignment and even reorienting some of the go-to-market groups to be more efficient. And those are giving us the opportunity to drive productivity into what is now one of the most ramped sales headcounts that we've had.

是的。去年，我們根據市場需求進行了積極的或至少是果斷的招聘，這讓我們受益匪淺。因此，我們能夠在業務需求方面放慢招聘速度，真正專注於激勵和協調等計劃，甚至重新定位一些進入市場的團隊以提高效率。這些使我們有機會將生產力提高到目前我們擁有的銷售人員數量最多的地區之一。

And so as we move forward, we will be able to be agile and adapt to the market demand environment. At the moment, that demand is flat, our hiring is flat. And so we're going to continue to sort of modulate that way.

因此，隨著我們前進，我們將能夠靈活地適應市場需求環境。目前，需求持平，我們的招聘也持平。所以我們將繼續以這種方式進行調整。

Our last question comes from the line of Daniel Jester of BMO Capital Markets.

我們的最後一個問題來自 BMO 資本市場的 Daniel Jester。

This is Kyle Aberasturi for Dan Jester. I appreciate the color on the fast track implementation program for midsized companies. I was just wondering what was the catalyst to put this program together.

我是丹·傑斯特的凱爾·阿伯拉斯圖裡。我很欣賞中型公司快速通道實施計劃的色彩。我只是想知道將這個計劃放在一起的催化劑是什麼。

We know that mid-market companies are constrained when it comes to both accounting and IT resources, okay? So this was really about serving that contingency even better. And so anything that could get them up and running more quickly and have them see time to value shortened was -- we considered a win.

我們知道，中型市場公司在會計和 IT 資源方面都受到限制，好嗎？所以這實際上是為了更好地應對突發事件。因此，任何可以讓他們更快地啟動和運行並讓他們看到價值實現時間縮短的事情都是——我們認為是勝利。

Now the interesting thing is over the longer term, I think this program will probably expand to even larger companies because people really enjoy the focused attention and being able to get something done very rapidly. And they actually enjoy building the relationships with the people at BlackLine because then they feel like their journey is going to be supportive -- supported. And they also feel like there is more to come, right?

現在有趣的是，從長遠來看，我認為這個計劃可能會擴展到更大的公司，因為人們真的很享受集中註意力並能夠非常快速地完成某件事。他們實際上喜歡與 BlackLine 的員工建立關係，因為這樣他們就會覺得他們的旅程將得到支持。他們也覺得還會有更多的事情發生，對嗎？

If you can get something up and running in 5 days, you -- by for goodness sakes, they certainly want to look at more products at that point.

如果你能在 5 天內啟動並運行一些東西，那麼你——看在上帝的份上，他們肯定會想在那時看到更多的產品。

I would now like to turn the conference back to Owen Ryan, Co-CEO for closing remarks.

現在我想請聯合首席執行官歐文·瑞安 (Owen Ryan) 致閉幕詞。

Thank you. And on behalf of all BlackLiners, thank you so much for your interest in and support of our company. Please have a great day. Talk soon.

謝謝。我謹代表所有 BlackLiners，非常感謝您對我們公司的興趣和支持。請祝你有美好的一天。一會再聊。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。