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Blackline Inc (BL)
NASDAQ:BL
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BlackLine (BL) AI Stock Analysis

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BL

BlackLine

(NASDAQ:BL)

Rating:66Neutral
Price Target:
$57.00
▲(4.24% Upside)
BlackLine's overall stock score reflects strong earnings performance and strategic initiatives, particularly in larger deals and partnerships. However, high leverage, valuation concerns, and technical indicators suggest caution. The leadership changes are positive but require time to impact performance.
Positive Factors
Earnings
BlackLine reported solid second-quarter results that beat consensus on most key metrics.
New Business Strategy
The company's new pricing and packaging strategy and the Studio360 offering are positioned to drive new business and higher platform usage.
Partnerships
SAP, a key partner for BlackLine, is generating good revenue and presents potential growth opportunities once the new model is approved.
Negative Factors
Capitalized Costs
Increased capitalized software costs have led to a change in the free cash flow estimate.
Free Cash Flow
The free cash flow margin estimate for BlackLine has been revised down from 24.5% to 23.7%.
Revenue Guidance
Guidance for 3Q25 revenue was below consensus estimates.

BlackLine (BL) vs. SPDR S&P 500 ETF (SPY)

BlackLine Business Overview & Revenue Model

Company DescriptionBlackLine, Inc. provides cloud-based solutions to automate and streamline accounting and finance operations worldwide. It offers financial close management solutions, such as account reconciliations that provides a centralized workspace for users to collaborate on account reconciliations; transaction matching that analyzes and reconciles high volumes of individual transactions; and task management to create and manage processes and task lists. The company's financial close management solutions also include journal entry that allows users to generate, review, and post manual journal entries; variance analysis that monitors and identifies anomalous fluctuations in balance sheet and income statement account balances; consolidation integrity manager that manages the automated system-to-system tie-out process that occurs during the consolidation phase of the financial close; and compliance, an integrated solution that facilitates compliance-related initiatives, consolidates project management, and provides visibility over control self-assessments and testing. In addition, it offers accounts receivable automation solutions, which include cash application, credit and risk management, collections management, disputes and deductions, team and task management, and AR intelligence solutions. Further, the company provides intercompany workflow that stores permissions by entity and transaction type thereby ensuring both the initiator and the approver of the intercompany transaction are authorized to conduct business; intercompany processing, which records an organization's intercompany transactions; and netting and settlement that generates a real-time settlement matrix, which shows the balance of transactions. The company sells its solutions primarily through direct sales force to multinational corporations, large domestic enterprises, and mid-market companies across various industries. BlackLine, Inc. was incorporated in 2001 and is headquartered in Woodland Hills, California.
How the Company Makes MoneyBlackLine primarily generates revenue through a subscription-based model, where customers pay for access to its software solutions on a recurring basis. This model allows the company to secure predictable and stable revenue streams. Key revenue streams include subscription fees for its various financial management products, professional services for implementation and training, and ongoing customer support. Additionally, BlackLine has established strategic partnerships with major financial and technology firms, which can lead to increased sales opportunities and integrations that enhance its offerings, further contributing to its earnings.

BlackLine Key Performance Indicators (KPIs)

Any
Any
Customers
Customers
Shows the number of clients using BlackLine's services, indicating market penetration and potential for upselling or cross-selling opportunities.
Chart InsightsBlackLine's customer base has shown steady growth, reaching over 4,400 by mid-2025. The earnings call highlights a strategic pivot towards larger deals and partnerships, which is driving significant growth in deal size and revenue. However, the company faces challenges with mid-market customer churn and deal slippage. Despite these hurdles, BlackLine's focus on larger, complex accounts and successful public sector entry suggests a promising trajectory, aligning with their guidance for sustained revenue growth and margin expansion.
Data provided by:Main Street Data

BlackLine Earnings Call Summary

Earnings Call Date:Aug 05, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
The earnings call reflects strong financial performance and strategic achievements, including significant large deals and successful adoption of a new pricing model. However, challenges remain with planned mid-market customer churn and some large deal delays.
Q2-2025 Updates
Positive Updates
Revenue and Operating Margin Growth
BlackLine delivered 7% revenue growth and a 22% non-GAAP operating margin, demonstrating strong financial performance.
Successful New Pricing Model
The new pricing model was adopted by about half of eligible new logos in Q2, exceeding expectations and driving larger deal sizes.
Significant Large Deals Secured
BlackLine signed the largest deal in company history with a global media and entertainment brand and secured significant wins in various industries including oil and gas, life sciences, and manufacturing.
Pipeline Growth
The creative pipeline grew by 70% year-over-year, fueled by refined platform messaging and strategy.
Partner Channel Achievements
Partner sourced bookings exceeded expectations, with strong performance from the SAP partnership, indicating future growth potential.
Negative Updates
Mid-Market Customer Churn
The revenue renewal rate was 91%, with planned churn from lower mid-market customers, reflecting a strategic shift towards larger accounts.
Large Deal Delays
Some large deals were delayed at the end of the second quarter due to political and economic uncertainties.
Company Guidance
In the Q2 2025 BlackLine Earnings Conference Call, the company reported a 7% revenue growth and a robust 22% non-GAAP operating margin. The strategic pivot towards a platform company serving the office of the CFO has been pivotal in driving success, with an impressive increase in average new deal sizes by 35% year-over-year. The number of $1 million customers rose by 24%, reaching 84. The adoption of BlackLine's new pricing model contributed significantly, with about half of eligible new customers choosing this model. The company also highlighted its strategic focus on larger mid-market customers, resulting in new mid-market deal sizes growing by 55% year-over-year. The BlackLine partner channel has been instrumental, with partner-sourced bookings exceeding expectations and contributing to pipeline growth, which increased by 70% year-over-year. The guidance for Q3 2025 anticipates revenue growth of 7% to 8% with a non-GAAP operating margin of 20% to 21%, while the full-year 2025 guidance projects a revenue range of $696 million to $705 million and an operating margin of 21.5% to 22.5%.

BlackLine Financial Statement Overview

Summary
BlackLine shows solid revenue growth and profitability with a strong gross profit margin. However, high leverage and declining free cash flow pose risks. The return on equity is impressive, but the high debt-to-equity ratio and decreasing cash flow growth rate require careful management.
Income Statement
75
Positive
BlackLine has demonstrated consistent revenue growth with a TTM increase of 1.74% and a strong gross profit margin of 75.29%. However, the net profit margin has slightly decreased from 24.67% in 2024 to 23.60% in TTM, indicating some pressure on profitability. The EBIT and EBITDA margins have also declined, suggesting increased operational costs or other expenses impacting earnings.
Balance Sheet
60
Neutral
The company's debt-to-equity ratio remains high at 2.21 in TTM, indicating significant leverage, which poses a risk if earnings do not continue to grow. However, the return on equity has improved to 40.15%, reflecting better utilization of equity to generate profits. The equity ratio is relatively low, suggesting a heavy reliance on debt financing.
Cash Flow
65
Positive
Operating cash flow is strong, but the free cash flow has decreased by 1.69% in TTM, indicating potential challenges in maintaining cash reserves. The operating cash flow to net income ratio is 0.30, showing that cash generation from operations is lower compared to net income, which could impact liquidity if not addressed.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue674.33M653.34M590.00M522.94M425.71M351.74M
Gross Profit508.26M491.37M443.20M393.55M327.83M282.76M
EBITDA111.55M183.80M116.51M1.25M-13.29M5.50M
Net Income88.00M161.17M52.83M-29.39M-115.16M-46.91M
Balance Sheet
Total Assets1.79B1.83B2.10B1.94B1.82B1.11B
Cash, Cash Equivalents and Short-Term Investments857.42M885.91M1.20B1.08B1.20B542.62M
Total Debt921.41M916.60M1.41B1.40B1.13B418.54M
Total Liabilities1.34B1.34B1.81B1.81B1.46B678.91M
Stockholders Equity414.05M446.67M260.88M111.87M325.04M422.07M
Cash Flow
Free Cash Flow174.65M188.71M99.02M25.83M56.83M35.31M
Operating Cash Flow178.80M190.84M126.61M56.01M80.09M54.73M
Investing Cash Flow3.99M924.44M-62.48M-395.62M-506.94M173.59M
Financing Cash Flow-340.74M-500.14M6.15M1.44M599.24M18.86M

BlackLine Technical Analysis

Technical Analysis Sentiment
Positive
Last Price54.68
Price Trends
50DMA
54.43
Positive
100DMA
52.75
Positive
200DMA
55.01
Negative
Market Momentum
MACD
-0.25
Negative
RSI
57.33
Neutral
STOCH
79.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BL, the sentiment is Positive. The current price of 54.68 is above the 20-day moving average (MA) of 51.92, above the 50-day MA of 54.43, and below the 200-day MA of 55.01, indicating a neutral trend. The MACD of -0.25 indicates Negative momentum. The RSI at 57.33 is Neutral, neither overbought nor oversold. The STOCH value of 79.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$3.26B39.095.22%-0.54%626.94%
67
Neutral
$3.33B-3.15%13.24%-12.97%
66
Neutral
$3.27B42.5723.79%7.99%-28.47%
65
Neutral
$3.70B-3.95%17.09%48.66%
62
Neutral
$3.30B-83.36%9.84%13.74%
61
Neutral
$35.62B7.50-10.94%1.87%8.86%-10.27%
46
Neutral
$2.07B-29.09%3.07%-19.48%-398.43%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BL
BlackLine
54.68
4.89
9.82%
GTM
ZoomInfo Technologies
10.75
1.02
10.48%
NCNO
nCino
32.69
2.49
8.25%
ASAN
Asana
14.33
0.30
2.14%
ALIT
Alight
3.91
-3.33
-45.99%
INTA
Intapp
47.42
1.85
4.06%

BlackLine Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
BlackLine Announces Leadership Transition with New CEO
Positive
Aug 5, 2025

On August 5, 2025, BlackLine, Inc. announced a leadership transition where Therese Tucker, Co-CEO and Founder, will step down from her Co-CEO role effective October 1, 2025, to focus on her responsibilities as Founder. Owen Ryan will continue as the sole CEO and Chairman, while David Henshall has been appointed as Lead Independent Director, replacing Tom Unterman. This transition is part of BlackLine’s strategy to enhance its leadership team and support its long-term strategic goals. The changes are expected to strengthen BlackLine’s market position and drive continued innovation and growth.

Executive/Board ChangesBusiness Operations and Strategy
BlackLine Appoints Gregory Hughes to Board
Positive
Jul 28, 2025

On July 25, 2025, BlackLine appointed Gregory Hughes to its Board of Directors, enhancing its expertise in enterprise software and strategic growth. Hughes, a seasoned executive with a history of leading significant transformations at companies like Veritas Technologies, will contribute to BlackLine’s growth and innovation strategy alongside recent board addition Sam Balaji. This move is expected to strengthen BlackLine’s leadership in financial operations and support its ongoing momentum as a category leader.

Executive/Board ChangesBusiness Operations and Strategy
BlackLine Appoints Sam Balaji to Board of Directors
Positive
Jun 16, 2025

On June 13, 2025, BlackLine, Inc. appointed Saranga ‘Sam’ Balaji to its Board of Directors, bringing his extensive experience in enterprise software, AI, and cybersecurity from his 28-year tenure at Deloitte, where he served as Global CEO of Deloitte Consulting. Balaji’s appointment is expected to bolster BlackLine’s strategic growth, deepen partnerships, and enhance its platform’s capabilities, particularly in AI-driven digital finance transformation.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 23, 2025