Blackline Safety Stock Earnings Reports

Key points for investors: Blackline delivered record Q3 results with revenue of $37.6M (up 12% YoY) and adjusted EBITDA of $1.3M, extending a 34-quarter streak of YoY revenue growth. Year-to-date revenue was $111.2M (+21% YoY) and adjusted EBITDA improved to $3.9M (from negative $4.5M prior-year), signaling a move to sustainable profitability. Annual recurring revenue (ARR) surpassed $80M (+29% YoY) and net dollar retention was 128% (ninth consecutive quarter above 125%), underscoring strong customer expansion and stickiness. Gross margins are improving (Q3 gross margin reached a record 64%; TTM gross margin 62%), driven by service margin expansion (service margin ~81%) while product margin softened (35%) due to elevated finished goods inventory and lower production in the quarter. Product revenue declined 7% (customers deferred purchases amid trade/tariff uncertainty), while service revenue rose 27%. Strategic highlights include the multiyear potential purchase agreement with ADNOC for up to 28,000 devices (major international expansion) and continued product momentum with EXO 8 winning multiple awards and expanding addressable markets. Liquidity position is solid: cash & short-term investments of $48.7M and total available liquidity of $68.6M (including undrawn facility). Management expects Q4 to remain seasonally strongest but cautions on macro headwinds (tariffs, oil price, and broader economic uncertainty) that could affect near-term product sales; they remain committed to delivering positive adjusted EBITDA for fiscal 2025. Rental business and pipeline remain constructive; Rest of World revenue is lumpy but expected to benefit from large international contracts over time.