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Blackline (Nasdaq: BL) | Company Profile, History, Competitors

 

Blackline (NASDAQ: BL) provides cloud-based software to automate key accounting functions. As of 2017, Blackline had 2,200 customers with 196,000 total users. It was founded in 2001 and headquartered in Woodland Hills, CA.

Blackline was founded in 2001 by Therese Tucker, who was formerly, CTO of Sungard Treasury Systems. Blackbaud provides cloud software to automate accounting functions for large volumes of data, including transaction matching, daily reconciliations, recurring task scheduling. 

Business Overview

Blackline operates on a cloud-based SaaS model. The company has eight products that are typically sold in packages via solutions. Each solution is a package of one or several products.

Products
Transaction Matching: Reconciles high volumes of transactions from various data sources. Blackline's rules identifies errors and missing data within the data sets.
Accounts Reconciliations:  Provides a centralized workspace for users to work on account reconciliations. Standardizes workflows and automates manual activities in the reconciliation process.
Consolidation Integrity Manager: Manages the tie-out process during the consolidation phase of the financial close.
Daily Reconciliations: Reduces data sets to a single day's transactions in order for users to perform analysis in smaller portions.
Journal Entry: Helps users generate and post journal entries that validate and approve the data entry.
Variance Analysis: Monitors for irregularities in the balance sheet and income statement of financial statements.
Task Management: Provides users with automatic and recurring task scheduling
Insights: Aggregates customer information and helps customers gauge performance and productivity.

Blackline also provides a separate solution called Intercompany Hub that manages financial data when intercompany transactions occur within a platform.

Pricing

Blackline's software is priced based on the number of subscribed solutions and number of users. Customers typically purchase by solution, but Blackline gives customers the option to purchase products individually. The products Intercompany Hub and Transaction Matching is priced on transaction volumes.

The typical subscription contract is one-year, but Blackline offers three-year terms as well. All contracts are billed annually in advance, with the first year payable within 30 days of executing a contract and then upon renewal.

Blackline also charges separately for services including implementation, consulting and training.

Customers

Blackline's software is used by a large number of Fortune 500 companies including Costco, Heinz, Mondelez, Coca-Cola, Under Armour, Shire Pharmaceuticals, Autodesk, Groupon, Rackspace, Zendesk, Kimberley-Clark, Stanley Black & Decker and SiriusXM Radio.

Competitors

Blackline's main software competitors are FloQast, Trintech, and Oracle's Hyperion modules.

History

The company was founded in 2001 by Therese Tucker. Ms. Tucker was formerly CTO at Sungard Treasury Systems. In 2001, Ms. Tucker started a business around wealth management software. In 20014, one of its customers, First National Bank of Nebraska, asked the company to automatic the manual typing of spreadsheets. The company grew to new customers who were looking for automated solutions.

In 2011, the company received a $200mm investment from Silver Lake Sumeru for a majority stake.[1] In 2016, the company went public.

Management

Therese Tucker (CEO): Therese Tucker serves as CEO since 2001. Prior, she was CTO Sungard Treasury Systems. She has also worked at ADS.

Mark Partin (CFO): Mark Partin serves as CEO since 2015. Prior, he served as CFO for Fiberlink Communications, an enterprise mobility management company. He has also worked as CFO Headhunter.net and as a CPA at Arthur Andersen LLP.

Financials

 $ USD in millions     2014  2015  2016  2017
 Revenues $52 
$84 
$124 
$177 
 Gross Profit $35 
 $61 
 $94 
 $136 
 Operating Profit ($18) ($35) ($34) ($35)
 Net Income ($17) ($25) ($39) ($38)
 EPS ($0.40) ($0.60) ($0.92) ($0.73)

References

Blackline, Inc.
 
  Ticker     NASDAQ: BL
  Industry Technology
  Founded 2001
  Headquarters Woodland Hills, CA
  Customers
2,200 (2017)
  Revenues
$177mm (2017)
  Employees 740 (2017)
  Website blackline.com