BlackLine Earnings: What To Look For From BL

Kayode Omotosho /
2023/02/13 6:51 am EST

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 $134.3 million, up 22.7% year on year, in line with analyst expectations. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter and decelerating customer growth. The company added 57 customers to a total of 4,060.

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 21.1% year on year to $139.7 million, in line with the 20.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.17 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 1.76%.

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. Paycor delivered top-line growth of 28.9% year on year, beating analyst estimates by 4.34% and Paycom Software reported revenues up 30% year on year, exceeding estimates by 1.06%. Paycor traded up 2.0% on the results, Paycom Software was down 1.73%. Read our full analysis of Paycor's results here and Paycom Software's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 10.2% over the last month. BlackLine is up 2.84% during the same time, and is heading into the earnings with analyst price target of $65.60, compared to share price of $72.15.

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.