Blackline Intrinsic Value Calculation – BLACKLINE Reports Second Quarter FY2023 Earnings Results for Period Ending June 30 2023
August 12, 2023
🌥️Earnings Overview
On August 8 2023, BLACKLINE ($NASDAQ:BL) reported its second quarter FY2023 earnings results ending June 30 2023, with total revenue increasing by 12.5% year-over-year to USD 144.6 million and net income at USD 30.8 million, a significant rise from the -10.7 million reported the prior year.
Price History
Stock prices opened at $53.2, but due to the release of the financial statement, closed at $52.5, a decrease of 3.5% from its prior closing price of $54.4. Despite the decline in stock prices, BLACKLINE showed positive results for the quarter. Revenue generated was higher than expected, and the company was able to meet its cash flow goals. Furthermore, BLACKLINE experienced strong demand for its services and products, with customers continuing to be drawn to its innovative offerings.
Additionally, the company was able to reduce its costs and expenses, contributing to improved profitability. Overall, BLACKLINE’s second quarter earnings results show a strong and healthy outlook for the company. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Blackline. BLACKLINE_Reports_Second_Quarter_FY2023_Earnings_Results_for_Period_Ending_June_30_2023″>More…
| Total Revenues | Net Income | Net Margin |
| 557.78 | 10.13 | 2.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Blackline. BLACKLINE_Reports_Second_Quarter_FY2023_Earnings_Results_for_Period_Ending_June_30_2023″>More…
| Operations | Investing | Financing |
| 97.35 | -105.28 | 4.13 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Blackline. BLACKLINE_Reports_Second_Quarter_FY2023_Earnings_Results_for_Period_Ending_June_30_2023″>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.98k | 1.77k | 2.92 |
Key Ratios Snapshot
Some of the financial key ratios for Blackline are shown below. BLACKLINE_Reports_Second_Quarter_FY2023_Earnings_Results_for_Period_Ending_June_30_2023″>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 20.2% | – | 3.6% |
| FCF Margin | ROE | ROA |
| 12.4% | 8.6% | 0.6% |
Analysis – Blackline Intrinsic Value Calculation
GoodWhale has conducted a thorough analysis of the fundamentals of BLACKLINE, and has determined its fair value to be around $111.0. To arrive at this conclusion, we used our proprietary Valuation Line to calculate the current fair value of the share. This means that right now BLACKLINE stock is trading at $52.5, a price that is significantly lower than its fair value, undervalued by 52.7%. Thus, we believe that it could be a good opportunity to invest in BLACKLINE stock. More…
Peers
The company offers a suite of solutions that automate and streamline accounting processes, including the financial close, account reconciliation, journal entry, and intercompany accounting. BlackLine‘s competitors include MCAP Inc, Shenzhen InfoTech Technologies Co Ltd, and APT Systems Inc.
– MCAP Inc ($OTCPK:MCAP)
MCAP Inc is a holding company that operates in the real estate industry. The company has a market capitalization of 112.86 thousand as of 2022 and a return on equity of -106.38%. MCAP Inc is engaged in the business of acquiring, holding, developing, and managing real estate properties. The company’s portfolio includes residential, commercial, and industrial properties.
– Shenzhen InfoTech Technologies Co Ltd ($SZSE:300085)
Shenzhen InfoTech Technologies Co Ltd is a Chinese technology company that specializes in the development and manufacturing of mobile phones and other electronic devices. The company has a market cap of 6.66B as of 2022 and a Return on Equity of -19.32%. Shenzhen InfoTech Technologies Co Ltd is a publicly traded company listed on the Shenzhen Stock Exchange.
– APT Systems Inc ($OTCPK:APTY)
APT Systems Inc is a publicly traded company with a market capitalization of 1.75 million as of 2022. The company has a return on equity of 50.12%. APT Systems Inc is a provider of software and services for the financial markets industry. The company’s products and services include trading platforms, market data and analysis tools, and order management systems.
Summary
Investors reacted negatively to BLACKLINE‘s second quarter fiscal year 2023 earnings results, which were reported on August 8th, 2023. Despite total revenue increasing by 12.5% year-over-year to USD 144.6 million, net income for the quarter showed a decrease of 10.7 million compared to the prior year’s results. This led to the stock price dropping on the same day of the announcement. Moving forward, investors will be watching closely to see whether BLACKLINE can turn around their fortunes and return to profit growth.
