BlackLine, Inc.’s (BL) Price Target Lowered After Q4 Earnings

Core Viewpoint - BlackLine, Inc. is identified as one of the top beaten down software stocks with significant upside potential, despite a recent price target reduction by Morgan Stanley from $73 to $68 while maintaining an Overweight rating [1]. Financial Performance - BlackLine reported Q4 earnings on February 11, with total revenue reaching $183 million and annual recurring revenue at $702 million. The total remaining performance obligations (RPO) amounted to $1.1 billion [2]. - Billings increased by over 9% during the quarter, with a non-GAAP net income of $45 million, reflecting a non-GAAP net income margin of 25% [2]. - The company generated $27 million in operating cash flow and $20 million in free cash flow for the quarter [2]. Share Buybacks and Customer Base - During the quarter, BlackLine repurchased $34 million in shares, bringing the total share buybacks for the year to $235 million [3]. - The company served 4,394 customers during the quarter [3]. Future Outlook - For Q1 FY 2026, BlackLine expects total GAAP revenue to be between $180 million and $182 million, indicating approximately 8% to 9% growth. For the full year 2026, total GAAP revenue is projected to be between $764 million and $768 million, representing approximately 9.1% to 9.6% growth [3]. - The expected non-GAAP operating margin for the same period is projected to be between 23.7% and 24.3% [3]. Company Overview - BlackLine operates as a provider of cloud-based solutions aimed at streamlining and automating accounting and finance operations, offering services such as financial close and consolidation solutions, transaction matching, task management, and financial reporting analytics [3].