BlackLine (BL) Reports Q4: Everything You Need To Know Ahead Of Earnings

Jabin Bastian /
2024/02/12 2:02 am EST

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 $150.7 million, up 12.2% year on year, in line with analyst expectations. It was a mixed quarter for the company, with accelerating customer growth but underwhelming revenue guidance for the next quarter. The company added 89 customers to a total of 4,368.

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 10% year on year to $154 million, slowing down from the 21.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.55 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 0.7%.

Looking at BlackLine's peers in the finance and HR software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Dayforce delivered top-line growth of 18.9% year on year, beating analyst estimates by 0.1% and Paycor reported revenues up 20.1% year on year, exceeding estimates by 2.4%. Both companies (Dayforce and Paycor) traded flat on the results. 

Read our full analysis of Dayforce's results here and Paycor's results here.

There has been positive sentiment among investors in the finance and HR software segment, with the stocks up on average 8.2% over the last month. BlackLine is up 9.3% during the same time, and is heading into the earnings with analyst price target of $62.3, compared to share price of $63.

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.

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