Cloud Stocks: Blackline Needs A PaaS Strategy

According to a recent survey, more than half of US-based Finance & Accounting professionals are continuing to prioritize their organization’s finance transformation goals even amid the current pandemic. The survey conducted by financial software provider Blackline (Nasdaq: BL) found that 53% of those surveyed saw little or no impact of the global pandemic.

Blackline’s Financials

Blackline’s second quarter revenues grew 20% to $83.3 million, ahead of the market’s estimate of $80.91 million. Net loss was $8.3 million, compared with a net loss of $5.4 million a year ago. Non GAAP net income was $11.9 million, or $0.20 per share, compared with the market’s estimates of $0.10 per share.

Among key metrics, it added 82 net new customers to end with 3,138 customers at the end of the June quarter. It expanded its user base to 277,426 and reported a dollar-based net revenue retention rate of 108%.

For the third quarter, Blackline expects revenues of $84.5-$85.5 million with an EPS of $0.11-$0.12. It expects to end the year with revenues of $335.5-$338.5 million and an EPS of $0.45-$0.49. The market was looking for revenues of $84.4 million for the quarter with an EPS of $0.10 and revenues of $337.9 million for the year with an EPS of $0.43.

Blackline’s COVID Response

The pandemic has resulted in the workforce globally moving to virtual and remote working conditions. Blackline has helped organizations manage their financial tasks in these conditions. For many organizations, having their finance teams work remotely was a new experience. It did not help that governments were making several changes to tax and other regulatory matters that impacted these organizations. Additionally, statutory audits moved to a remote working condition as well. Blackline has been helping the organizations manage these transitions with relative ease by adding new features and services.

At the start of the quarter, Blackline granted free access to its entire training library. Its content library includes CPE eligible courses to allow CPAs to retain their current accreditations at no cost. It also added a new curriculum with live virtual training that is focused on a remote workforce environment. It also offered the task management and reporting capabilities complimentary for 6 months to existing customers to enable a more effective remote close.

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Sramana Mitra is the founder of One Million by One Million (1M/1M), a global virtual incubator that aims to help one million entrepreneurs ...

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