2024-07-11 03:23:28 ET
Summary
- Shares of BlackLine have shed more than 20% of their value this year as the company has struggled to keep top-line momentum afloat.
- BlackLine continues to see material defections in its large customer base, while the company is struggling to add new customers in the midmarket.
- BlackLine’s customer slippage is a clear signal that competitive pressures for financial software are weighing, as incumbents like Workday win over niche offerings.
- BlackLine stock isn’t cheap enough at ~4.7x current-year revenue to justify its risks. Downgrading the stock to strong sell.
The market this year has been a story of winners and losers, particularly in the tech sector. A few stocks have consolidated this year’s massive rally, while many underperforming companies have been left behind in the dust. In the case of BlackLine ( BL ), it’s not just sentiment that’s fading: but actual performance....
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BlackLine: The Customer Base Is Crumbling