BlackLine (BL) To Report Earnings Tomorrow: Here Is What To Expect

Radek Strnad /
2023/08/07 5:30 am EDT

Accounting automation software maker Blackline (NASDAQ:BL) will be reporting earnings tomorrow after market hours. Here's what to look for.

Last quarter BlackLine reported revenues of $139 million, up 15.6% year on year, in line with analyst expectations. It was a weaker quarter for the company, with decelerating customer growth and a decline in its gross margin. The company added 48 customers to a total of 4,236.

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 12% year on year to $143.9 million, slowing down from the 25.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.29 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 0.97%.

Looking at BlackLine's peers in the finance and HR software segment, some of them have already reported Q2 earnings results, giving us a hint what we can expect. Paylocity delivered top-line growth of 34.7% year on year, beating analyst estimates by 2.29% and Workiva reported revenues up 17.8% year on year, exceeding estimates by 1.05%. Paylocity traded down 3.15% on the results, Workiva was flat on the results. Read our full analysis of Paylocity's results here and Workiva's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 2.7% over the last month. BlackLine is down 0.33% during the same time, and is heading into the earnings with analyst price target of $62.2, compared to share price of $54.00.

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