BlackLine (BL) AI Stock Analysis

• Market Cap: $3.38B
• Dividend Yield: N/A
• Average Volume (3M): 651.02K
• Price to Earnings (P/E): 24.9
• Beta (1Y): 1.09
• Revenue Growth: 8.93%
• EPS Growth: 102.77%
• Country: US
• Employees: 1,830
• Sector: Technology
• Sector Strength: 77
• Industry: Software - Application
• EPS (TTM): 0.49
• Shares Outstanding: 62,320,133
• 10 Day Avg. Volume: 575,196
• 30 Day Avg. Volume: 651,024
• PEG Ratio: -0.20
• Price to Book (P/B): 7.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.79
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 1.34
• Enterprise Value/Gross Profit: 6.90
• Enterprise Value/Ebitda: 9.87
• 1Y Price Target: $56.73
• Price Target Upside: 2.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

• Rating: 71 Outperform
• Price Target: $61.00 ▲(10.53%Upside)

BlackLine's overall score reflects solid financial health, positive technical momentum, and strategic growth opportunities, tempered by high valuation and operational challenges. The stock's strong revenue performance and strategic initiatives are significant positives, while macroeconomic risks and high leverage are key concerns.

Positive Factors

Operating Margin

A meaningful beat and raise to operating margin results in FCF estimates getting revised upwards.

Strategic Partnerships

Solid results have been observed as the Solex partnership and execution are improving.

Negative Factors

Market Demand

BlackLine has been experiencing a 'measured demand environment' and saw some deals slip as discussed on its earnings call.

Revenue Guidance

The company reduced the low end of its revenue guidance range for 2025, expecting 6.9% growth at the midpoint compared to prior expectations for 7.4% growth.

BlackLine Business Overview & Revenue Model

Company Description

BlackLine, 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 Money

BlackLine makes money primarily through a subscription-based revenue model. The company offers cloud-based software solutions on a subscription basis, which provides it with a recurring revenue stream. Customers typically pay annual or multi-year subscription fees to access BlackLine's accounting automation platform. Key revenue streams include subscriptions to its core products, such as the Financial Close Management solution, Account Reconciliations, Intercompany Hub, and other modules that address various accounting needs. Additionally, BlackLine may generate revenue from professional services, including consulting, implementation, and support services, which are often provided to help clients effectively deploy and use their software. Strategic partnerships with enterprise resource planning (ERP) providers and financial service firms also play a significant role in expanding BlackLine's market reach and customer base, indirectly contributing to its earnings.

BlackLine Financial Statement Overview

Summary

BlackLine's financial performance is strong, marked by impressive revenue growth and profitability improvements. The income statement shows significant revenue increase and margin expansion, while the balance sheet indicates effective capital management despite high leverage risks. The cash flow statement underscores excellent cash generation, which supports growth initiatives.

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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 55.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 55.19 is above the 20-day moving average (MA) of 52.20, above the 50-day MA of 49.16, and above the 200-day MA of 54.42, indicating a bullish trend. The MACD of 1.94 indicates Negative momentum. The RSI at 66.20 is Neutral, neither overbought nor oversold. The STOCH value of 50.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BL.

BlackLine Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CXM	75 Outperform	$2.07B	17.70	18.83%	―	8.74%	150.66%
GTM	74 Outperform	$3.23B	80.11	2.23%	―	-3.12%	-37.59%
PAY	73 Outperform	$4.65B	93.81	10.80%	―	47.78%	74.61%
BL	71 Outperform	$3.38B	24.95	44.83%	―	8.93%	102.77%
SWI	68 Neutral	$3.20B	28.86	7.87%	―	5.03%	―
NCNO	62 Neutral	$3.11B	―	-3.54%	―	13.45%	12.86%
Sector *	61 Neutral	$11.29B	10.17	-6.88%	2.97%	7.41%	-8.93%

BlackLine Corporate Events

BlackLine Appoints Scott Davidson to Key Committees

On May 8, 2025, BlackLine, Inc. held its annual meeting of stockholders virtually, where Scott Davidson was appointed to the Audit and Technology and Cybersecurity Committees. The meeting also saw the election of Class III directors, ratification of PricewaterhouseCoopers LLP as the independent auditor, and approval of executive compensation policies, including an annual advisory vote on executive compensation.

The most recent analyst rating on (BL) stock is a Sell with a $50.00 price target. To see the full list of analyst forecasts on BlackLine stock, see the BL Stock Forecast page.

BlackLine Appoints New Independent Director to Board

On March 9, 2025, BlackLine, Inc. entered into a cooperation agreement with Scalar Gauge Fund to appoint Scott Davidson as a new independent director to its Board, effective March 14, 2025. This move is part of BlackLine’s strategy to refresh its Board with new perspectives, aiming to accelerate growth and enhance shareholder value. Davidson, with over 25 years of experience in software companies, is expected to contribute significantly to BlackLine’s strategic positioning and value creation for stakeholders.

BlackLine Announces Workforce Reduction Amid Strategic Shift

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.