Shares of the software company BlackLine (BL 3.14%) fell as much as 15% this morning after the company reported its earnings results for the fourth quarter and full year of 2020.
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.
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.
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.