BlackLine (BL) Q1 Earnings: What To Expect

Radek Strnad /
2022/05/04 7:50 am EDT

Accounting automation software maker Blackline (NASDAQ:BL) will be announcing earnings results tomorrow after market close. Here's what investors should know.

Last quarter BlackLine reported revenues of $115.3 million, up 20.4% year on year, beating analyst revenue expectations by 1.56%. It was a decent quarter for the company, with a very strong guidance for the next year but a decline in gross margin. The company added 121 customers to a total of 3,825.

Is BlackLine buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting BlackLine's revenue to grow 20.9% year on year to $119.5 million, in line with the 19.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.08 per share.

BlackLine Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 3.13%.

Looking at BlackLine's peers in the finance and HR software segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Paycom Software reported revenues up 29.8% year on year, exceeding estimates by 3%. Paycom traded up 9.11% on the results. Read our full analysis of Paycom Software's results here.

Tech stocks have had a rocky start in 2022 and software stocks have not been spared, with share price down on average 16.6% over the last month. BlackLine is down 10.4% during the same time, and is heading into the earnings with analyst price target of $103.7, compared to share price of $67.11.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.