Q: Do you have any insight into Blackline’s (fairly steady) share price decline over the last 3 months? It has now dropped about the same amount as the 2020 Covid news decline (just not quite as precipitous). Based on it’s historical performance it seems a bit more than “small cap volatility”?
5i Research Answer:
The company currently trades at 4x sales and used to trade at nearly 7x sales before shares began to drift. BLN has also missed estimates over the last three quarters with big misses on profitability. Growth is still good but the company is losing money and missing expectations, so we are not surprised by the drift downwards here. Growth expectations look promising but we would keep an eye on it in the quarters to come.