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According to a recent report, the global accounting software market is estimated to grow by 19% CAGR to reach $47.5 billion by 2028. BlackLine (Nasdaq: BL) announced its fourth quarter results recently that continued to outpace market expectations. The company released products that are aimed at allaying the cash-related concerns of its customers given the current economic conditions.
 

BlackLine’s Financials

BlackLine’s fourth quarter revenues grew 21% to $140 million, ahead of the market’s estimate by 0.56%. Net income was $11.3 million. Non-GAAP net income was $25.5 million, or $0.35 per share, compared with the market’s estimates of $0.17 per share for the quarter.

For the full year, BlackLine’s revenues grew 23% to $522.9 million and EPS was $0.64.

Among key metrics, it added 128 net new customers in the quarter to end with 4,188 customers. It expanded its user base to 366,522 and reported a dollar-based net revenue retention rate of 107%.

For the first quarter, BlackLine expects revenues of $137-$139 million and an EPS of $0.15-$0.17. The market was looking for revenues of $141.52 million and an EPS of $0.12. The company expects to end the year with revenues of $586-$596 million and an EPS of $0.89-$0.94. The market was looking for revenues of $609.94 million and an EPS of $0.57.
 

BlackLine’s Product Upgrades

According to a survey of business leaders and finance and accounting professionals conducted by BlackLine, 43% of respondents are worried about their customers paying late due to recessionary conditions. 62% of those surveyed believe that understanding cash flow in real-time is going to become more important for their company in the face of economic uncertainty, and all of the respondents are looking to become more confident in the visibility they currently have over cash flow. BlackLine hopes to address some of these concerns by providing organizations with better accounts receivable (AR) management solutions.

During the quarter, BlackLine announced a partnership with Kofax that will let it add electronic invoicing capabilities from Kofax’s Tungsten Network to BlackLine’s AR automation solutions. The partnership strengthens its AR automation offerings. It with help BlackLine assist its customers with staying aligned with rapidly changing electronic invoicing compliance requirements globally. The new capabilities allow customers to extend their invoice-to-cash journey by utilizing electronic invoicing and allowing suppliers to streamline and digitize their accounts receivable process by routing invoices and connecting suppliers and buyers, an online portal where buyers can receive invoices and process payments, full compliance with international e-invoicing guidelines, and accelerated accounts receivable collections and efficiency through early action on delays in the invoice-to-cash process.

BlackLine’s stock is trading at $63.28 with a market capitalization of $3.82 billion. It hit a 52-week high of $79.23 in January and a 52-week low of $48.73 in October last year.

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