BlackLine (BL) Q1 Earnings: What To Expect

Petr Huřťák /
2023/05/03 3:31 am EDT

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

Last quarter BlackLine reported revenues of $140 million, up 21.4% year on year, in line with analyst expectations. It was a weaker quarter for the company, with revenue guidance for the next quarter and full year missing analysts' expectations. The company added 128 customers to a total of 4,188.

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 14.9% year on year to $138.2 million, slowing down from the 21.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.16 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 1.24%.

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. Workiva delivered top-line growth of 15.8% year on year, beating analyst estimates by 0.45% and Paychex reported revenues up 8.23% year on year, exceeding estimates by 2.39%. Paychex was up 5.56%, and Workiva was flat on the results. Read our full analysis of Workiva's results here and Paychex's results here.

Technology stocks have been hit hard on fears of higher interest rates and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 9.49% over the last month. BlackLine is down 17% during the same time, and is heading into the earnings with analyst price target of $66, compared to share price of $52.57.

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.