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


Radek Strnad /
2022/02/09 6:00 am EST
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Accounting automation software maker Blackline (NASDAQ:BL) will be reporting earnings tomorrow after the bell. Here's what to look for.

Last quarter BlackLine reported revenues of $109.4 million, up 20.8% year on year, beating analyst revenue expectations by 2.18%. It was an OK quarter for the company, with a meaningful improvement in net revenue retention rate.

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 18.6% year on year to $113.5 million, in line with the 19.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Earnings are expected to come in at $0.1 per share.

BlackLine Total Revenue

The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing 6 upwards revisions over the last thirty days. 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 3.32%.

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 what we can expect. Paycor (NASDAQ:PYCR) delivered top-line growth of 20% year on year, beating analyst estimates by 3.56% and Paylocity (NASDAQ:PCTY) reported revenues up 33.9% year on year, exceeding estimates by 4.11%. Paycor traded up 3.9% on results, Paylocity was up 10.2%. Read our full analysis of Paycor's results here and Paylocity's results here.

The fears around raising interest rates have been putting pressure on tech stocks and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 7.48% over the last month. BlackLine is down 10.1% during the same time, and is heading into the earnings with analyst price target of $125.3, compared to share price of $88.74.

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.