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According to a recent report, the global accounting software market is projected to grow 20% annually over the next few years to reach $45.3 billion by 2028. Recently, financial software provider BlackLine (Nasdaq: BL) announced its quarterly results that surpassed market expectations.

BlackLine’s Financials

BlackLine’s second-quarter revenues grew 26% to $128.5 million, ahead of the market’s estimate of $126.57 million. On an adjusted basis, net income was $0.07 per share, compared with the market’s estimates of $0.01 per share for the quarter.

By segment, subscription revenues grew from $95.2 million a year ago to $120.7 million and professional services revenues grew from $7 million to $7.8 million.

Among key metrics, it added 106 net new customers in the second quarter to end with 4,003 customers as of June this year. It expanded its user base to 347,932 and achieved a dollar-based net revenue retention rate of 110%.

For the third quarter, BlackLine forecast revenues of $133-$135 million and net income of $0.08-$0.10 per share. It expects to end the year with revenues of $524-$528 million and an EPS of $0.25-$0.27. The market was looking for revenues of $526 million and an EPS of $0.10 for the year.

BlackLine’s Product Growth

BlackLine continued to create newer products to expand its market. It recently unveiled the industry’s first ‘tax hyper automation’ capabilities for intercompany financial management. Targeted to help multinational companies manage the complexities of transacting across multiple legal entities, billing routes and jurisdictional boundaries, the extension to its intercompany solution will provide them with management of tax globally, including cross-border reporting arrangements.

The service will offer real-time reporting and e-compliance capabilities to help these organizations manage international scrutiny. Some of the key features added include pre-defined transaction flows to automatically apply country- and service-specific tax treatments, tax compliant and auditable invoicing, BEAT and Exempt Charge Identification and Classification to minimize manual intervention, preconfigured service types to automatically infer the right tax treatment, and standards-based open APIs to allow for interoperability across indirect tax engines.

Meanwhile, it continues to build on its investment in the Google Cloud Platform and announced further integration with Google Cloud. Under the expanded contract, the two companies will collaborate on joint selling and go-to-market activities to further help companies on their digital finance transformation and modern accounting journeys. Google Cloud’s cloud infrastructure allows companies to easily deploy BlackLine on a global scale, and experience a unified experience for businesses moving their finance and accounting operations to the cloud. The expanded partnership will reinforce BlackLine’s cloud-first strategy for meeting the digital finance transformation needs of its customers. The co-selling and joint marketing opportunities will help BlackLine get access to Google Cloud customers worldwide on an accelerated pace.

BlackLine’s stock is trading at $59.9 with a market capitalization of $3.57 billion. It had touched a 52-week high of $135.00 in November last year and has recovered from the 52-week low of $49.66 that it had fallen to in May.

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