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According to a recent report, the global accounting software market is set to grow at 9.64% CAGR from $7.04 billion in 2021. Recently, financial software provider, BlackLine (Nasdaq: BL) announced its quarterly results that surpassed market expectations.

BlackLine’s Financials

BlackLine’s fourth-quarter revenues grew 20% to $115.3 million, ahead of the market’s estimate of $113.45 million. The net loss was $37 million, compared with a net loss of $17 million a year ago. Non-GAAP net income was $4.7 million, or $0.08 per share, compared with the market’s estimates of $0.10 per share.

Among key metrics, it added 121 net new customers to end with 3,825 customers on 31 December 2021. It expanded its user base to 328,389 and reported a dollar-based net revenue retention rate of 109%.

For the full fiscal year, revenues grew 21% to $425.7 million and EPS was $0.58.

For the first quarter, BlackLine expects revenues of $119-$120 million and a net loss of $0.10-$0.07 per share. It expects to end the year with revenues of $520-$525 million and EPS of $0.08-$0.11. The market was looking for revenues of $118.66 million and EPS of $0.12 for the quarter and revenues of $510.78 million and EPS of $0.70 for the year.

BlackLine’s FourQ Systems Acquisition

Recently, BlackLine announced its acquisition of Connecticut-based FourQ Systems, an intercompany financial management solutions provider, for an undisclosed sum. FourQ was built by F&A and tax experts to create an intercompany financial management software that provides an automated intercompany processing solution that can help streamline global operations for organizations. Its technology helps customers increase their operational productivity and efficiency through improved intercompany billing, payment, and tax optimization.

With the acquisition, BlackLine has the ability to enhance its existing intercompany accounting automation capabilities and strengthen its position with the Office of the Controller by driving end-to-end automation of traditionally manual intercompany accounting processes. It also accelerates BlackLine’s larger, long-term plan to transform and modernize finance and accounting.

FourQ’s technology complements BlackLine’s existing functionality by adding advanced tax capabilities and improving regulatory compliance within statutory reporting and transfer pricing. It will allow companies to enforce and optimize their global tax strategies by assuring compliance with tax laws including new e-invoicing mandates, optimizing effective tax rates, and reducing foreign currency risk exposure to improve working capital and drive profitability. Prior to the acquisition, FourQ Systems had raised $6 million in a round of funding held by Dubilier & Company.

BlackLine’s stock is trading at $69.99 with a market capitalization of $4.14 billion. It had touched a 52-week high of $135.00 in November last year and a 52-week low of $65.15 in March.