Shares of Blackline Inc. (BL), a leading provider of financial accounting software, plummeted 7.1% in pre-market trading on Wednesday following the release of the company's fourth-quarter 2024 results and guidance for fiscal year 2025.
While Blackline reported solid financial results for Q4 2024, with total revenue of $169.5 million (up 9% year-over-year) and non-GAAP operating income of $30.7 million (18.1% margin), the company's guidance for 2025 appears to have fallen short of market expectations. For the full year 2025, Blackline forecasts total revenues in the range of $699 million to $705 million and a non-GAAP operating margin of 21.0% to 22.0%.
Analysts had been expecting stronger guidance from Blackline, particularly in terms of operating margin expansion. The modest outlook seems to have disappointed investors, leading to the sharp sell-off in pre-market trading on Wednesday.