Q2 2026 BlackLine Inc Earnings Call Transcript
Key Points
- Revenue grew 9.2% with non-GAAP operating margin expanding to 23.3% and free cash flow of $37 million.
- RPO grew 17% to over $1.1 billion, with current RPO up 11%, indicating strong future revenue visibility.
- Platform adoption is accelerating, with eligible ARR on platform crossing 17% (up from 13% last quarter) and nearly 90% of net new business landing on platform pricing.
- Agentic AI products like Verity Prepare and Verity Accruals are gaining traction, with Verity Prepare contributing to over $20 million in platform ACV and customer counts for Verity Prepare growing nearly four-fold quarter-over-quarter.
- Strong new customer wins and expansions, including Vodafone, Royal Dutch Shell, and two top six U.S. banks, with new deal sizes up 24% and multi-year commitments at 56% of renewals.
- AI adoption is broad, with over 90% of eligible customers AI-enabled and feature usage up over 220% sequentially, driving incremental revenue opportunities.
- Approximately $8 million of expected Q2 deals slipped due to elongated sales cycles, with AI-related scrutiny from customers extending deal timelines by 40-45 days.
- Revenue growth of 9.2% was below expectations, partly due to platform pricing reducing user-based expansion, which understates near-term demand.
- Dollar-based net revenue retention was 102.4% (104% ex-FX), lower than historical levels due to reduced user adds and platform migration.
- FX headwinds increased to approximately $2-3 million for the year, with an additional $1 million impact expected in the back half.
- Middle market logo count continues to decline due to lower mid-market churn, though tracking as expected, with the impact expected to ease through 2026.
- Deal timing remains unpredictable, with customers taking longer to evaluate AI governance, security, and compliance, creating uncertainty in quarterly results.
Good day, and thank you for standing by. Welcome to second quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press *11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press *11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Matt Humphries, SVP of Investor Relations.
Good afternoon, and thank you for joining us today. With me on the call are Owen Ryan, Chief Executive Officer of BlackLine as well as Patrick Villanova, Chief Financial Officer.
For the Q&A portion of today's call, we'll also have Jeremy Ung, BlackLine's Chief Technology Officer, join us.
Before we get started, I'd like to note that certain statements made
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
