Accounting automation software maker Blackline (NASDAQ: BL) will be announcing earnings results this Tuesday after market close. Here’s what to look for.
BlackLine met analysts’ revenue expectations last quarter, reporting revenues of $166.9 million, up 6% year on year. It was a very strong quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates. It added 12 customers to reach a total of 4,455.
Is BlackLine a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting BlackLine’s revenue to grow 6.4% year on year to $170.8 million, slowing from the 11% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.51 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 4 downward revisions over the last 30 days (we track 13 analysts). BlackLine has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 0.9% on average.
Looking at BlackLine’s peers in the finance and hr software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Workiva delivered year-on-year revenue growth of 21.2%, beating analysts’ expectations by 3%, and Asure reported revenues up 7.4%, falling short of estimates by 3.2%. Workiva traded up 32.2% following the results while Asure was down 13.6%.
Read our full analysis of Workiva’s results here and Asure’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the finance and hr software stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5% on average over the last month. BlackLine is down 7.4% during the same time and is heading into earnings with an average analyst price target of $59.75 (compared to the current share price of $52.93).
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