Blackline, Inc.

BL

Services-Prepackaged Software

Mkt Cap

$3.003B

PE

39.69

Debt

$1.391B

Cash

$331.6M

EV

$4.063B

FCF

$149.6M

Market Cap

$3.003B

P/E Ratio

39.69

Debt

$1.391B

Cash

$331.6M

EV

$4.063B

FCF

$149.6M

Charts data: {"Earnings":[{"time":"2014-12-30","value":-16752000},{"time":"2015-12-30","value":-24734000},{"time":"2016-12-30","value":-39159000},{"time":"2017-12-30","value":-38061000},{"time":"2018-12-30","value":-27866000},{"time":"2019-12-30","value":-32535000},{"time":"2020-12-30","value":-46911000},{"time":"2021-12-30","value":-115161000},{"time":"2022-12-30","value":-33891000},{"time":"2023-12-30","value":52833000}],"Sales":[{"time":"2014-12-30","value":51677000},{"time":"2015-12-30","value":83607000},{"time":"2016-12-30","value":123123000},{"time":"2017-12-30","value":177031000},{"time":"2018-12-30","value":227788000},{"time":"2019-12-30","value":288976000},{"time":"2020-12-30","value":351737000},{"time":"2021-12-30","value":425706000},{"time":"2022-12-30","value":522938000},{"time":"2023-12-30","value":589996000}],"Net Margins":[{"time":"2014-12-30","value":-0.3241674245796002},{"time":"2015-12-30","value":-0.2958364730225938},{"time":"2016-12-30","value":-0.3180478058526839},{"time":"2017-12-30","value":-0.21499624359575442},{"time":"2018-12-30","value":-0.1223330465169368},{"time":"2019-12-30","value":-0.11258720447372793},{"time":"2020-12-30","value":-0.1333695346238809},{"time":"2021-12-30","value":-0.2705176812166143},{"time":"2022-12-30","value":-0.06480883010987919},{"time":"2023-12-30","value":0.08954806473264225}],"Assets":[{"time":"2015-12-30","value":286750000},{"time":"2016-12-30","value":420437000},{"time":"2017-12-30","value":440884000},{"time":"2018-12-30","value":493868000},{"time":"2019-12-30","value":1014552000},{"time":"2020-12-30","value":1113505000},{"time":"2021-12-30","value":1817578000},{"time":"2022-12-30","value":1943656000},{"time":"2023-12-30","value":2100765000}],"Stockholders Equity":[{"time":"2014-12-30","value":183947000},{"time":"2015-12-30","value":166168000},{"time":"2016-12-30","value":291410000},{"time":"2017-12-30","value":294628000},{"time":"2018-12-30","value":321569000},{"time":"2019-12-30","value":398613000},{"time":"2020-12-30","value":422070000},{"time":"2021-12-30","value":325036000},{"time":"2022-12-30","value":111868000},{"time":"2023-12-30","value":260881000}],"ROE":[{"time":"2014-12-30","value":-0.09106971029698772},{"time":"2015-12-30","value":-0.1488493572769727},{"time":"2016-12-30","value":-0.13437768093064753},{"time":"2017-12-30","value":-0.1291832412398007},{"time":"2018-12-30","value":-0.08665636302006724},{"time":"2019-12-30","value":-0.08162051915015316},{"time":"2020-12-30","value":-0.11114507072286588},{"time":"2021-12-30","value":-0.3543022926691197},{"time":"2022-12-30","value":-0.30295526870955053},{"time":"2023-12-30","value":0.20251762297752615}],"ROA":[{"time":"2015-12-30","value":-0.12140191804707934},{"time":"2016-12-30","value":-0.0807112599509558},{"time":"2017-12-30","value":-0.07952205115177688},{"time":"2018-12-30","value":-0.056095960864036544},{"time":"2019-12-30","value":-0.027498836925066432},{"time":"2020-12-30","value":-0.01786341327609665},{"time":"2021-12-30","value":-0.021244755383262783},{"time":"2022-12-30","value":-0.024392690887687946},{"time":"2023-12-30","value":0.028803316886943566}]}

BlackLine, Inc. provides cloud-based solutions to automate and streamline accounting and finance operations worldwide. It offers financial close management solutions, such as account reconciliations that provides a centralized workspace for users to collaborate on account reconciliations; transaction matching that analyzes and reconciles high volumes of individual transactions; and task management to create and manage processes and task lists. The company's financial close management solutions also include journal entry that allows users to generate, review, and post manual journal entries; variance analysis that monitors and identifies anomalous fluctuations in balance sheet and income statement account balances; consolidation integrity manager that manages the automated system-to-system tie-out process that occurs during the consolidation phase of the financial close; and compliance, an integrated solution that facilitates compliance-related initiatives, consolidates project management, and provides visibility over control self-assessments and testing. In addition, it offers accounts receivable automation solutions, which include blackline cash application, credit and risk management, collections management, disputes and deductions, team and task management, and AR intelligence solutions. Further, the company provides intercompany create functionality that stores permissions and business logic exceptions by entity, service, and transaction type thereby ensuring both the seller and the buyer of the intercompany transaction are authorized to conduct business; intercompany processing, which records an organization's intercompany transactions; and netting and settlement that generates a real-time settlement matrix, which shows the balance of transactions. The company sells its solutions primarily through direct sales force to multinational corporations, large domestic enterprises, and mid-market companies across various industries. BlackLine, Inc. was incorporated in 2001 and is headquartered in Woodland Hills, California.

Sector

10-Q
9/30/23
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10-K
12/31/22
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12/31/19
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3/31/19
10-K
12/31/18
10-Q
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-K
12/31/17

DCF

Discounted Cash Flow Valuation of Blackline, Inc.

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$149.6M	$194.5M	$247.4M	$307.9M	$374.6M	$445.4M	$517.1M	$586.1M	$647.9M	$698.3M	$733.2M	$7.332B
DCF		$169.1M	$187.1M	$202.4M	$214.2M	$221.4M	$223.6M	$220.3M	$211.8M	$198.5M	$181.2M	$1.812B
Value	$3.842B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 1.1K%

Earnings Stability -35%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	-30%	-32%	-21%	-12%	-11%	-13%	-27%	-6.5%	9%	12%
ROA	-12%	-8.1%	-8%	-5.6%	-2.7%	-1.8%	-2.1%	-2.4%	2.9%	3.9%
ROE	-15%	-13%	-13%	-8.7%	-8.2%	-11%	-35%	-30%	20%	27%

What is the average Net Margin?

The average Net Margin over the past 5 years is -10.23%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +3.04%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is -1.97%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +1.23%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is -12.24%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +1.54%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

Data are missing

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	-3.26	-	-	-	15.32	8.44	15.61	30.74	11.52	9.30
Debt Equity	0.18	-	-	-	0.96	0.96	3.43	12.37	5.33	4.97
MIN
Graham Stability	-	-	-	-	-	-	-	-	-	-

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 9.30.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 1.47.

What is the Graham’s Stability?

Graham’s Stability measure stands at -.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Data are missing

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	25%	21%	19%	13%	-5.4%
Net Income	-	-	-	-	-
Stockholders Equity	-1.6%	-4.1%	-15%	130%	1.6%
FCF	-	65%	36%	170%	-38%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +20.97%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -5.36%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is -4.1%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +1.62%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +65.03%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -37.54%.