Shares of Blackline Inc. (BL), a leading provider of financial accounting software, plummeted 15.24% on Wednesday in the aftermath of the company's fourth-quarter 2024 earnings report and guidance for fiscal year 2025.
While Blackline reported solid financial results for Q4 2024, with total revenue growing 9% year-over-year and an 18.1% non-GAAP operating 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 and investors had been anticipating stronger guidance from Blackline, particularly in terms of operating margin expansion. The relatively modest outlook seems to have disappointed the market, triggering a sharp sell-off in Blackline's stock on Wednesday.