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

BlackLine, Inc. (NASDAQ:BL) is one of the 10 best beaten down software stocks with the highest upside potential. On February 12, Morgan Stanley analyst Chris Quintero reduced the firm’s price target on BlackLine, Inc. (NASDAQ:BL) from $73 to $68 while reaffirming an Overweight rating. The firm revised its price target following the company’s fourth-quarter earnings report.

BlackLine, Inc. (NASDAQ:BL) reported its Q4 earnings on February 11. Total revenue for the quarter reached $183 million. The company reported $702 million in annual recurring revenue and $1.1 billion in total remaining performance obligations (RPO).  During the quarter, billings rose more than 9%. Non-GAAP net income came in at $45 million, demonstrating a non-GAAP net income margin of 25%. The company reported $27 million in operating cash flow and $20 million in free cash flow for the quarter. Platform pricing ARR grew 4% sequentially and represented 11% of eligible ARR.

During the quarter, BlackLine, Inc. (NASDAQ:BL) bought back $34 million in shares, bringing total share buybacks for the year to $235 million. The company served 4,394 customers during the quarter. CFO Patrick Villanova commented on the company’s Q1 FY 2026 outlook:

“For the first quarter of 2026, we expect total GAAP revenue to be in the range of $180 million to $182 million, representing approximately 8% to 9% growth. For the full year 2026, we expect total GAAP revenue to be in the range of $764 million to $768 million, representing approximately 9.1% to 9.6% growth. We expect non-GAAP operating margin to be in the range of 23.7% to 24.3%.”

BlackLine, Inc. (NASDAQ:BL) operates as a provider of cloud-based solutions to streamline and automate accounting and finance operations. The company provides financial close and consolidation solutions, transaction matching, task management, and financial reporting analytics. It was founded in 2001 and is based in Woodland Hills, California.

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