The following is an excerpt from Tiernan Ray | October 28, 2016 | Barrons.com |
Shares of cloud computing applications developer BlackLine (BL), which specializes in tools for accounting and finance, are up $7.89, or 46%, from their offer price at $24.89, on their first day of trading, after pricing last night at $17, at the high end of a range that had already been revised up by underwriters from a prior $13 to $15.
BlackLine, based in Woodland Hills, California, was founded long before the cloud era, in 2001, by chief executive Therese Tucker, formerly the CTO of Sunguard Treasury Systems.
As the company describes its business in its IPO prospectus, “Our secure, scalable platform supports critical accounting processes such as the financial close, account reconciliation, intercompany accounting and controls assurance.”
The company “empower our customers to improve the integrity of their financial reporting, achieve efficiencies and enhance real-time visibility into their operations” via automation.
Revenue in the company’s six months ended in June surged 48% to $55.587 million, mostly for subscription and support revenue with only a little bit of professional services revenue in there.
The company’s net loss also surged, to $16.876 million from $10.792 million a year earlier.
BlackLine had amassed an accumulated deficit of $65.1 million at the end of the period.
Update: This afternoon, Tucker was kind enough to talk with me by phone for a few minutes. She said it was a “great day, and that the company’s “having a lot of fun,” but “mostly, I’m anxious to get back to work so that we can perform.”
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