Why BlackLine Is Friday’s Big Earnings Winner
BlackLine shares surged Friday after the software company reported better than expected second-quarter financial results late Thursday.
When BlackLine Inc. (NASDAQ: BL) reported its second-quarter financial results after the markets closed on Thursday, the software firm said that it had $0.10 in earnings per share (EPS) and $69.66 million in revenue. That compared with consensus estimates of $0.01 in EPS and $68.04 million in revenue, as well as the $0.01 per share and $55.45 million posted in the same period of last year.
For the latest quarter, subscription and support revenues increased 24.5% year over year to $66.07 million, and professional services revenues increased 49.5% to $3.60 million.
During the quarter, BlackLine added 106 net new customers, for a total of 2,813. At the same time, the firm expanded its user base to 236,802.
Looking ahead to the third quarter, the company expects to see EPS in the range of $0.02 to $0.04 and revenue between $71.7 million and $72.7 million. Consensus estimates call for $0.04 in EPS and $71.29 million in revenue for the quarter.
[nativounit]
Therese Tucker, founder and CEO, commented:
Q2 was a good quarter driven by strong demand for our solution and a record number of large deals. BlackLine continues to be selected as the strategic partner of choice among organizations undergoing large, financial transformation projects. With this as our foundation, we will continue to focus on driving growth and delivering value to our customers.
Shares of BlackLine traded up about 25% Friday morning at $53.31. The 52-week range is $34.01 to $58.11, and the consensus price target is $52.33.
[recirclink id=565177]
[wallst_email_signup]
Contact [email protected] for any questions or corrections.
Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
