Cantor Fitzgerald's analyst, Matthew VanVliet, has started coverage on BlackLine (BL, Financial), giving it a Neutral rating and setting a price target of $58. The potential growth for BlackLine is tied to its robust revenue growth, improved non-GAAP operating margins, and strong free cash flow projections. These positive aspects are supported by advancements in products like Studio360, which position BlackLine well to tap into the increasing need for financial automation and digital transformation in the finance sector.
The initial response to Studio360 in the market has been promising, suggesting that BlackLine could benefit from these innovations. This new product underlines their strategic capacity to capitalize on industry trends, according to the analyst.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 10 analysts, the average target price for BlackLine Inc (BL, Financial) is $57.60 with a high estimate of $80.00 and a low estimate of $45.00. The average target implies an upside of 3.30% from the current price of $55.76. More detailed estimate data can be found on the BlackLine Inc (BL) Forecast page.
Based on the consensus recommendation from 14 brokerage firms, BlackLine Inc's (BL, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for BlackLine Inc (BL, Financial) in one year is $76.82, suggesting a upside of 37.77% from the current price of $55.76. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the BlackLine Inc (BL) Summary page.
BL Key Business Developments
Release Date: May 06, 2025
- Total Revenue: $167 million, up 6% year-over-year.
- Non-GAAP Operating Margin: 21%.
- Annual Recurring Revenue (ARR): $656 million, up over 8%.
- Revenue Renewal Rate: 94%.
- Net Retention Rate (NRR): 104%.
- Non-GAAP Gross Margin: Approximately 80%.
- Non-GAAP Net Income: $36 million, representing a 22% margin.
- Operating Cash Flow: $47 million.
- Free Cash Flow: $33 million, with a 20% margin.
- Cash and Marketable Securities: Approximately $866 million.
- Debt: $894 million.
- Share Repurchase: Approximately 920,000 shares for $46 million.
- Q2 2025 Revenue Guidance: $170 million to $172 million, representing 6% to 7% growth.
- Full Year 2025 Revenue Guidance: $692 million to $705 million, representing 6% to 8% growth.
- Full Year 2025 Non-GAAP Operating Margin Guidance: 21.5% to 22.5%.
- Full Year 2025 Non-GAAP Net Income Guidance: $159 million to $167 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- BlackLine Inc (BL, Financial) reported a 6% growth in new business for Q1 2025, with a non-GAAP operating margin of 21%.
- The company saw an increase in the number of customers generating over $1 million in annual recurring revenue (ARR), rising from 71 to 79.
- The adoption of the Studio360 platform is gaining momentum, with several significant deals signed, including with companies like USAA.
- BlackLine Inc (BL) has successfully implemented a new pricing model that is slightly ahead of expectations, providing flexibility and predictability for customers.
- The company reported a 20% increase in go-live volume compared to the same period last year, indicating faster implementation timelines for customers.
Negative Points
- BlackLine Inc (BL) acknowledges potential risks from recent policy announcements that could affect customer investment decisions, particularly in certain industries and geographies.
- The company is experiencing some pressure on customer retention due to ongoing economic conditions, with a revenue renewal rate of 94%.
- There is a noted impact from large enterprise customers undergoing corporate reorganizations, resulting in reduced usage and affecting net retention rates.
- Despite solid pipeline growth, there is caution regarding potential macroeconomic uncertainties that could influence future results.
- The company's services revenue came in slightly below expectations due to a higher-than-expected partner services mix.