So for us, look, we try to show up for our customers and execute first, and we think that will start to close the gap in any macro environment. And here, we have many crosswinds, whether it’s the version of SaaS ROI and accountability. And we think we hold up pretty well in the long-term for that. If customers are looking around for vendor consolidation and expense rationalization, our business case is very solid, especially when you are buying and using more than an application or financial close. So our growth profile is in a very important high ROI automation part of the Office of the CFO. And when that happens to from quarter to quarter is tough to call, but we know that it’s a problem that hasn’t gone away. It’s only gotten bigger through this sort of downturn, if you will.
Brent, that’s the best I can do for calling a trough. But when it’s in the rearview mirror, I’ll tell you. Thank you for the question, Brent.
Operator: And our next question coming from the line of Steve Enders with Citi.
Steve Enders: I appreciate all the innovation you talked about that’s coming down the pipe this year. I guess maybe to start with what’s been the early feedback as you’re capturing the beta to customers? And I guess on the other side of it, how do you get the go-to-market right to capture to that potential there? And I guess, in particular, where does the budget opportunity come from as you go into and target those accounts?
Therese Tucker: Well, starting with feedback from customers, it’s been pretty enthusiastic. But realize that I’m a big believer in co-development with our customers over time. We have been vetting ideas against them, then we vet prototypes, then we vet products. So when we finally get to the point where we launch, we expect to have nothing but very enthusiastic feedback. And frankly that’s how you don’t waste money on development, okay? So that’s very good feedback today so far and I’m super pleased. Now, and likewise, we also work a lot with our partners in terms of what they’re seeing in the market. A lot of times they have a much broader purview than we might. So lots and lots of feedback from idea, inception of idea all the way through to launching a product.
Now, when we start launching a product that typically is a process where we will roll it out for some period of months with early adopters. Again, this is a much more in-depth. Now you’re actually using it and a lot of times the feedback there will be slightly different because when they start to use it, they find out if it’s easy or not, okay? Then we will typically launch into an internal pricing discussion on how to get things — what the value seems to be. A lot of times our customers will take part in that. What are you willing to pay for it? And then finally, we really start to get the marketing teams involved and the go-to-market enablement teams, so that as we roll things out to our actual customer base, our go-to-market teams are ready to work with our customers and our prospects.
That’s kind of a quick overview. I hope that answers your question.
Operator: And our next question coming from the line of Chris Quintero with Morgan Stanley. Your line is open.
Chris Quintero: Hey, everyone. Thanks for taking the questions here. I think this one’s for Mark. I want to ask around the fiscal year ’24 revenue guide. Given the Q1 guide implies 11.5% growth, that would imply further deceleration into the rest of the year to get to your full year guide of 9%. Do you expect growth to further slow? Or are you embedding some more conservatism into that guide maybe compared to previous years?
Mark Partin: Look, I’m a pragmatic and I think in this case, conservative guide for the year. And some of that is the market, but also a number of the operating model changes that we believe there is real opportunity for uplift with these changes. The timing for that is the thing that I think draws the most question. The guide is adequately conservative and pragmatic for the year. You are right. In Q4, we saw some good upticks in a few leading indicators, that’s positive. Whether it’s momentum or not going into this year, we’re going to look for that visibility. I think that gives us an opportunity to execute and have very high confidence in not only the top level guide, but in the ability to generate improving operating leverage in the business during this year. Thank you for that question.
Operator: And our next question coming from the line of Terry Tillman with Truist. Your line is open.
Terry Tillman: Can you hear me?
Unidentified Company Representative: Yes. Hi, Terry.
Terry Tillman: I thought they said Truist, but it cut out. Thanks for fitting me in. It is a single question. It may be multiple parts unfortunately though. On the SAP relationship, it’s great to see the SolEX. It’s great hearing about customers, specific customers. That was great in 4Q. What I’m curious about is we look at the ’24, how are you thinking about percentage of revenue from SAP? And where do you see potentially, if there’s going to be upside drivers from SAP? What are some of the more interesting incremental opportunities maybe product wise? And what about their perspective on your old AI journey and are they signed up and are they going to be pushing that as well? Thank you.
Owen Ryan: I think, Therese, you and I are going to have to tag team on this because you can maybe handle the AI piece of it. I would expect that, I don’t know that we’ll see a significant shift in what percentage of our revenue comes from SAP over 2024. I do think that the collaboration and communication and the teaming has gotten better across all aspects of what we’re trying to do. Obviously, we’re going continue to have resources dedicated both domestically and internationally to work in the local markets, where they are because all this business is done at a local level. I think that there is elements of what we’re trying to do together in the marketplace, which seemed to be going quite well again from at least the feedback from my teammates here at BlackLine and then some of the senior executive meetings we’re having between ourselves and SAP at this point in time.
So all that, I think, bodes well for what we’re trying to do. Obviously, they’re a critical partner, but we also have another big part of our business, the other 75% that we’re going to keep driving, as well. I think we feel pretty good about that overall. On the AI side, Therese, you want to talk a little bit more about that?
Therese Tucker: I think SAP, there’s a couple of things about that are important to SAP coming up in this year. The Office of the CFO is certainly one, which is important for us. And secondly, their commitment to AI as well. The beautiful thing about both SAP and BlackLine is that we both have a great deal of data, which makes the usage of AI models much more effective. And so we’re seeing that everybody’s, in fact not just SAP, but really everybody is trying to figure out how to best deliver the benefits that we know are tangible to our customers. So we see that within SAP. We have discussions on that and that’s certainly a high priority for BlackLine this year.
Owen Ryan: So operator, I know we’ve run a little bit over, so I just want to sort of close-up the meeting. I want to thank everybody for their participation today. Really appreciate it. Look forward to the follow-up conversations that I’m sure we’ll have and appreciate your interest in BlackLine. And thank you. Everybody have a great rest of the day. Take care.
Operator: Ladies and gentlemen, that does conclude our conference for today. Thank you for your participation. You may now disconnect.
