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BlackLine Sees Looming ‘Investment Cycle’ for Accounting Software in Quarterly Report

BlackLine Inc. beat Wall Street expectations on adjusted earnings and on revenue for the third quarter.

The Woodland Hills accounting software developer reported on Thursday an adjusted net income of $15 million (24 cents a share) for the quarter ending on Sept. 30, compared with adjusted net income of $15 million (25 cents) in the same period a year earlier. Revenue increased by 21 percent to $109 million.

Analysts on average expected earnings of 11 cents on revenue of $107 million, according to Thomson Financial Network.

Marc Huffman, chief executive of BlackLine, said that the company’s momentum continued in the third quarter driven by a demand for its software, resulting in another quarter of solid financial performance.

“Companies are emerging from the pandemic with a greater sense of urgency to upgrade outdated back-office systems and to improve their financial processes,” Huffman said in a statement. “We believe this is the beginning of the next large and enduring investment cycle in financial and accounting systems.”

Shares of BlackLine (BL) closed up $1.96, or about 1.5 percent to $129 on the Nasdaq, on a day when that market closed up less than 1 percent.

Mark Madler
Mark Madler
Mark R. Madler covers aviation & aerospace, manufacturing, technology, automotive & transportation, media & entertainment and the Antelope Valley. He joined the company in February 2006. Madler previously worked as a reporter for the Burbank Leader. Before that, he was a reporter for the City News Bureau of Chicago and several daily newspapers in the suburban Chicago area. He has a bachelor’s of science degree in journalism from the University of Illinois, Urbana-Champaign.

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