BlackLine (BL) Stock Forecast & Price Target

BlackLine Inc is expected to experience significant revenue growth in the coming years, with projections showing an increase from 6% in the first quarter to 10% by the end of 2026 and potentially reaching 13% by the end of 2027. The company's re-architected platform and new pricing model are enhancing its competitive positioning and facilitating customer growth, which is expected to lead to multiple years of accelerating revenue growth coupled with improving profit margins. Additionally, gross margin expansion is anticipated due to the transition to the Google Cloud Platform, operational efficiencies, and the successful increase in higher-value customers, evidenced by a 35% growth in those spending over $250,000 annually and a remarkable 73% growth in customers spending over $1 million.

The analysis highlights a concerning slowdown in BlackLine Inc's revenue growth, which has decreased from 20% in 4Q22 to only 6% in 1Q25, raising concerns about the company's ability to maintain sustainable performance. Additionally, the presence of elevated churn rates among smaller customers presents a significant risk, as this could further hamper growth prospects if such companies opt for more aggressive competition in the market. The stagnation in customer count at 4,424 year-over-year, coupled with only an 8% increase in revenue per customer to $161K, indicates potential challenges in customer retention and overall market expansion.