What Happened:
Shares of accounting automation software maker Blackline (NASDAQ:BL) jumped 8.38% in the after-market session after the company reported first-quarter results that beat analysts' revenue estimates slightly. Free cash flow and earnings per share (EPS) beat by larger magnitudes. However, customer growth slowed and gross margin declined slightly. Despite these, management provided reassuring guidance with revenue projections for the next quarter and full year roughly inline with Consensus. More positively, EPS guidance was well above expectations. This was a mixed but overall strong quarter.
What is the market telling us:
BlackLine's shares are a little volatile and over the last year have had 33 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
BlackLine is down 19% since the beginning of the year, and at $54.96 per share it is trading 29.8% below its 52-week high of $78.32 from June 2022. Investors who bought $1,000 worth of BlackLine's shares 5 years ago would now be looking at an investment worth $1,350.
Is now the time to buy BlackLine? Access our full analysis of the earnings results here, it's free.