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Why Shares of BlackLine Are Falling Today

By Bram Berkowitz - Feb 12, 2021 at 12:27PM

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The plunge comes after the company recently reported its fourth-quarter and full-year earnings results from 2020.

What happened

Shares of the software company BlackLine (BL -0.47%) fell as much as 15% this morning after the company reported its earnings results for the fourth quarter and full year of 2020.

So what

BlackLine, a software-as-a-service platform that supports and automates key finance and accounting processes, reported a net loss of roughly $17 million, or $0.30 earnings per share (EPS) in the fourth quarter of 2020. In the fourth quarter of 2019, the company lost $9.2 million.

For the full year, the company reported a loss of nearly $47 million, or roughly $0.83 EPS, compared to a $32.5 million loss in 2019.

Picture of line moving downward on chart.

Image source: Getty Images.

On a non-GAAP basis, which is based on informal accounting methods, BlackLine's fourth quarter diluted EPS of $0.21 beat analysts' estimates. Furthermore, total revenue of $95.7 million also beat estimates. For the full year, total revenue of $351.7 million is up 22% compared to 2019.

Now what

Although the company posted a bigger loss during the challenging year of 2020, it did beat the consensus estimate for fourth-quarter earnings on a non-GAAP basis and on revenue.

Analysts at Oppenheimer following BlackLine's earnings report raised their price target on BlackLine from $140 to $160 per share, while many other research firms also raised their price target on the company. The market may simply be taking a breather after the company saw its stock price grow nicely in January.

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BlackLine, Inc. Stock Quote
BlackLine, Inc.
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