BlackLine's (NASDAQ:BL) Q1 Earnings Results: Revenue In Line With Expectations, Stock Soars

Yahoo

07-05-2025

Accounting automation software maker Blackline (NASDAQ:BL) met Wall Street's revenue expectations in Q1 CY2025, with sales up 6% year on year to $166.9 million. The company expects next quarter's revenue to be around $171 million, close to analysts' estimates. Its non-GAAP profit of $0.49 per share was 28% above analysts' consensus estimates.
Is now the time to buy BlackLine? Find out in our full research report.
BlackLine (BL) Q1 CY2025 Highlights:
Revenue: $166.9 million vs analyst estimates of $166.7 million (6% year-on-year growth, in line)
Adjusted EPS: $0.49 vs analyst estimates of $0.38 (28% beat)
Adjusted Operating Income: $34.95 million vs analyst estimates of $28.67 million (20.9% margin, 21.9% beat)
The company reconfirmed its revenue guidance for the full year of $698.5 million at the midpoint
Management raised its full-year Adjusted EPS guidance to $2.17 at the midpoint, a 6.6% increase
Operating Margin: 2.1%, up from 1.1% in the same quarter last year
Free Cash Flow Margin: 19.5%, down from 21.6% in the previous quarter
Customers: 4,455, up from 4,443 in the previous quarter
Market Capitalization: $3.11 billion
'BlackLine's first quarter delivered solid results with bookings exceeding expectations, driven by improved execution along with continued margin expansion,' said Owen Ryan, Co-CEO of BlackLine.
Company Overview
Started in 2001 by software engineer Therese Tucker, one of the very few women founders who took their companies public, BlackLine (NASDAQ:BL) provides software for organizations to automate accounting and finance tasks.
Sales Growth
A company's long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last three years, BlackLine grew its sales at a 14% compounded annual growth rate. Although this growth is acceptable on an absolute basis, it fell short of our standards for the software sector, which enjoys a number of secular tailwinds.
BlackLine Quarterly Revenue
This quarter, BlackLine grew its revenue by 6% year on year, and its $166.9 million of revenue was in line with Wall Street's estimates. Company management is currently guiding for a 6.5% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 7.4% over the next 12 months, a deceleration versus the last three years. This projection is underwhelming and implies its products and services will see some demand headwinds.
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