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Blackline Inc (BL)
NASDAQ:BL
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BlackLine
(NASDAQ:BL)67Neutral
Positive Factors
Cash Flow
Blackline is a proven free cash flow generator, and the announcement suggests it could be better-than-expected.
Growth Strategy
BlackLine has the right technology and new pricing model to drive increasing product usage and accelerating revenue towards its medium-term targets.
Negative Factors
Financial Guidance
The guidance for 2025 total revenue growth was below outlook, with lower visibility on sales improvements beyond FX.
BlackLine (BL) vs. S&P 500 (SPY)
Market Cap
$3.07B
Dividend YieldN/A
Average Volume (3M)919.07K
Price to Earnings (P/E)22.0
Beta (1Y)1.41
Revenue Growth10.74%
EPS Growth200.08%
CountryUS
Employees1,750
SectorTechnology
Sector Strength48
IndustrySoftware
Share Statistics
EPS (TTM)2.23
Shares Outstanding62,814,335
10 Day Avg. Volume833,186
30 Day Avg. Volume919,071
Financial Highlights & Ratios
PEG Ratio0.11
Price to Book (P/B)N/A
Price to Sales (P/S)4.70
Price to Cash Flow (P/CF)17.50
P/FCF Ratio16.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$67.75Price Target Upside38.60% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
BlackLine Business Overview & Revenue Model
Company DescriptionBlackLine, Inc. is a leading provider of cloud-based solutions that automate and streamline financial close processes and other accounting operations. Founded in 2001 and headquartered in Los Angeles, California, the company operates primarily in the financial software sector. BlackLine's core products include financial close management, account reconciliation, and intercompany clearing, among others. These solutions are designed to help organizations improve the accuracy and efficiency of their financial reporting and compliance processes.
How the Company Makes MoneyBlackLine makes money primarily through a subscription-based revenue model. The company charges its clients recurring fees for access to its cloud-based financial software solutions. Key revenue streams include subscription and support fees from its software-as-a-service (SaaS) offerings. BlackLine also generates revenue through professional services, which include implementation, training, and consulting services to help clients effectively integrate and utilize its solutions. Significant partnerships with technology providers and consulting firms enhance BlackLine's reach and contribute to its earnings, as these collaborations often drive new customer acquisitions and expand its market presence.
BlackLine Financial Statement Overview
Summary
BlackLine's financial statements reflect a company in a strong growth phase, with impressive revenue and profitability improvements. The income statement highlights robust growth and margin expansion. The balance sheet reveals effective capital management but indicates potential risks due to high leverage. The cash flow statement demonstrates excellent cash generation capabilities, supporting ongoing investments and operations.Income Statement
BlackLine has demonstrated strong revenue growth, with a significant increase in total revenue from $589.996 million in 2023 to $653.336 million in the TTM (Trailing-Twelve-Months). The gross profit margin improved to 75.2% in the TTM, reflecting efficient cost management. The net profit margin also increased substantially to 24.7%, indicating improved profitability. EBIT and EBITDA margins have shown positive trends, although EBIT margin remains relatively low at 3.0%. Overall, the income statement reflects strong growth and improving profitability.78
Positive
Balance Sheet
The balance sheet shows a high debt-to-equity ratio of 2.05, reflecting significant leverage, which could pose a risk. However, the return on equity (ROE) has improved to 36.1% in the TTM, indicating strong profitability relative to shareholders' equity. The equity ratio is 24.5%, suggesting moderate reliance on equity financing. Overall, the balance sheet shows a balance between growth and leverage, with some potential risks from high debt levels.65
Positive
Cash Flow
Operating cash flow has increased significantly, resulting in a robust operating cash flow to net income ratio of 1.18 in the TTM. The free cash flow to net income ratio is also strong at 1.17, indicating efficient conversion of earnings into cash. Free cash flow growth rate from the previous year was impressive at 90.5%. Overall, the cash flow statement shows excellent cash generation and management, supporting the company's growth initiatives.83
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 653.34M | 590.00M | 522.94M | 425.71M | 351.74M | Gross Profit |
| 491.37M | 443.20M | 393.55M | 327.83M | 282.76M | EBIT |
| 18.54M | 14.35M | -37.72M | -38.61M | -15.39M | EBITDA |
| 183.80M | 116.51M | 1.25M | -13.29M | 5.50M | Net Income Common Stockholders |
| 161.17M | 52.83M | -33.89M | -100.99M | -39.40M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 885.91M | 1.20B | 1.08B | 1.20B | 542.62M | Total Assets |
| 1.83B | 2.10B | 1.94B | 1.82B | 1.11B | Total Debt |
| 916.60M | 1.41B | 1.40B | 1.13B | 418.54M | Net Debt |
| 30.69M | 1.14B | 1.20B | 593.88M | 51.12M | Total Liabilities |
| 1.34B | 1.81B | 1.81B | 1.46B | 678.91M | Stockholders Equity |
| 446.67M | 260.88M | 111.87M | 325.04M | 422.07M |
| Cash Flow | Free Cash Flow | |||
| 188.71M | 99.02M | 25.83M | 56.83M | 35.31M | Operating Cash Flow |
| 190.84M | 126.61M | 56.01M | 80.09M | 54.73M | Investing Cash Flow |
| 924.44M | -62.48M | -395.62M | -506.94M | 173.59M | Financing Cash Flow |
| -500.14M | 6.15M | 1.44M | 599.24M | 18.86M |
BlackLine Technical Analysis
Negative
48.88
Price Trends
57.30
Negative
58.76
Negative
54.00
Negative
Market Momentum
-3.08
Negative
29.47
Positive
46.17
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BL, the sentiment is Negative. The current price of 48.88 is below the 20-day moving average (MA) of 51.68, below the 50-day MA of 57.30, and below the 200-day MA of 54.00, indicating a bearish trend. The MACD of -3.08 indicates Negative momentum. The RSI at 29.47 is Positive, neither overbought nor oversold. The STOCH value of 46.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BL.
BlackLine Risk Analysis
BlackLine disclosed 55 risk factors in its most recent earnings report. BlackLine reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
BlackLine Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $172.63B | 57.71 | 17.43% | 0.64% | 13.73% | 9.93% | |
79 Outperform | $67.50B | 128.95 | 6.15% | ― | 17.04% | -62.24% | |
78 Outperform | $193.43B | 36.22 | 36.31% | ― | 11.02% | 4.96% | |
73 Outperform | $274.89B | 44.96 | 10.26% | 0.56% | 8.72% | 51.47% | |
67 Neutral | $3.07B | 21.96 | 45.56% | ― | 10.74% | 200.08% | |
59 Neutral | $22.39B | 11.53 | -18.05% | 2.31% | 5.00% | -25.89% |
* Technology Sector Average
Performance Comparison
BL
BlackLine
48.88
-18.26
-27.20%
ADBE
Adobe
449.40
-111.02
-19.81%
INTU
Intuit
609.61
-37.29
-5.76%
CRM
Salesforce
282.89
-21.41
-7.04%
WDAY
Workday
252.38
-14.34
-5.38%
BlackLine Earnings Call Summary
Earnings Call Date: Feb 11, 2025 | % Change Since: -22.90% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment overall, driven by strong revenue growth, strategic partnerships, and innovation in key areas. However, challenges such as deal velocity, FX impacts, and mid-market churn were notable. The company remains optimistic about its future growth and strategic initiatives.Highlights
Revenue Growth and Financial Performance
BlackLine delivered 9% revenue growth in Q4 2024 with a non-GAAP operating margin of 18%, despite currency headwinds due to a strong US dollar. The revenue renewal rate improved to 96% with strong enterprise performance at 97% and mid-market business at 92%.
Strategic Partnerships and Initiatives
Significant progress in strategic partnerships, including a new partnership with Workday and an enhanced relationship with SAP. BlackLine is included in SAP's EPM package and progressing towards FedRAMP certification, which will position it to serve public sector organizations.
Expansion and New Deals
Expanded with BAE Systems in Europe and secured new deals with Snowflake in North America and Sandvik Coromant in the Nordics. These deals reflect BlackLine's ability to support large-scale digital finance transformation.
Studio360 Platform Launch
Launched the Studio360 platform, generating significant market enthusiasm for its ability to orchestrate, connect, and automate financial systems, with Fortune 100 companies already implementing it.
Innovation and AI Integration
Continued innovation with AI-based executive insights and enterprise consolidation capabilities, enhancing the financial reporting analytics pillar and positioning BlackLine to capitalize on opportunities from legacy consolidation solutions.
Lowlights
Deal Velocity and Timing Challenges
Instances of slowed deal velocity, especially in larger, late-stage opportunities, resulted in some deals extending into 2025. These delays were attributed to customer decision timing and macroeconomic uncertainties.
Foreign Exchange Headwinds
FX-related revaluation had a significant impact, causing a two-point headwind to ARR in Q4 and affecting remaining performance obligations by more than one point.
Challenges in SolEx Performance
SolEx performance was below expectations in Q4, attributed to slowed deal dynamics and the need for better alignment with SAP's cloud strategy.
Mid-Market Customer Churn
Continued moderate impacts to customer count growth due to strategic focus shifts in the mid-market, highlighting the challenge of selecting the right customers.
Company Guidance
During the BlackLine Q4 2024 earnings call, the company provided guidance for Q1 and the full year 2025, projecting total GAAP revenue between $166 million and $168 million for Q1, representing 5% to 7% growth. Non-GAAP operating margin for Q1 is expected to range from 16.5% to 17.5%, with non-GAAP net income attributable to BlackLine anticipated to be between $28 million and $30 million. For the full year 2025, BlackLine forecasts GAAP revenue between $699 million and $705 million, indicating 7% to 8% growth. The full-year non-GAAP operating margin is projected to be between 21% and 22%, while non-GAAP net income is expected to range from $155 million to $165 million. The company noted a one-point headwind to revenue growth due to foreign exchange impacts and outlined expectations for a higher effective tax rate. BlackLine also highlighted strategic initiatives, including expanding strategic partnerships, innovating with Studio360, and pursuing FedRAMP certification, which are expected to drive growth and market expansion.BlackLine Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
BlackLine Announces Workforce Reduction Amid Strategic Shift
Negative
Mar 4, 2025
On February 27, 2025, William “Bill” Wagner announced his intention to resign from the board of directors of BlackLine, Inc., effective May 8, 2025, to focus on his new role as CEO at Semrush. On March 4, 2025, BlackLine announced plans to reduce its global workforce by approximately 7%, or 130 positions, as part of its organizational alignment and performance management initiatives. The company will also offer a voluntary departure program with severance packages. These actions are expected to be completed in the first half of fiscal year 2025, with estimated expenses of $5 million, primarily for severance. BlackLine intends to continue hiring for critical roles and does not anticipate these actions to materially impact its financial guidance.
Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
BlackLine Announces Leadership Change and Positive Revenue Outlook
Positive
Jan 13, 2025
BlackLine announced the retirement of its Chief Revenue Officer, Mark Woodhams, effective June 2, 2025, with Stuart Van Houten stepping in as the new Chief Commercial Officer starting February 17, 2025. Van Houten, bringing extensive experience from SAP, is expected to drive growth and deepen strategic partnerships, particularly with SAP, enhancing BlackLine’s market position. Additionally, BlackLine anticipates its fourth quarter and full-year 2024 revenue to meet or slightly exceed its guidance, reaffirming its non-GAAP operating margin expectations, indicating a strong financial performance.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.