BlackLine (BL) Q2 Earnings: What To Expect

Adam Hejl /
2022/08/03 4:11 am EDT

Accounting automation software maker Blackline (NASDAQ:BL) will be announcing earnings results tomorrow after the bell. Here's what you need to know.

Last quarter BlackLine reported revenues of $120.2 million, up 21.6% year on year, in line with analyst expectations. It was a mixed quarter for the company, with an optimistic revenue guidance for the next quarter but decelerating customer growth. The company added 72 customers to a total of 3,897.

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 23.9% year on year to $126.5 million, in line with the 22.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.01 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 2.72%.

Looking at BlackLine's peers in the finance and HR software segment, only Paycom has so far reported results, delivering top-line growth of 30.8% year on year, and beating analyst estimates by 2.7%. The company traded up 1.69% on the results. Read our full analysis of Paycom Software's results here.

Investors in the software segment have had steady hands going into the earnings, with the stocks down on average 0.8% over the last month. BlackLine is down 13.9% during the same time, and is heading into the earnings with analyst price target of $87, compared to share price of $62.4.

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.