I'm Buying This Growth Stock - Hot SaaS Cloud Software Stock Ready for Take Off! - Blackline $BL

Описание: Today, I want to share my newest holding with you. It’s a cloud software company and the industry leader in large and growing market with TAM or Total Addressable Market of $18.5 billion. It’s a SaaS (Software as a Service) business with a high recurring revenue stream. It’s also a profitable business with 27% top line growth. Do you have any guesses as to which stock I am referring to?

I am going to break this company down for you and give you a concise summary of what the company does and why you should consider it for your portfolio. Ok ok, we get it, what stock are you talking about? The company is Blackline, stock ticker BL, but stick around to hear more about this company. I think you will be blown away by what I’m about to share with you. First, what does Blackline do? In a nutshell, Blackline helps companies close the books faster and cheaper with less errors. Seems straight forward, right? So what? Well, Blackline is now cash-flow positive and has a massive market opportunity in front of it. Huge opportunity! Wait until you see the numbers in a minute. It’s staggering. Blackline is the market leader in a market it actually created. It has a set of products that no one can compete with and is partnered with one of the largest ERP vendors in the world.

Let’s dig a little deeper on the company background. Blackline is a leader in finance and accounting software and helps companies automate and streamline a variety of processes, including the financial close process, account reconciliation, and intercompany accounting. By providing a scalable and transparent platform, Blackline acts as the central workspace for finance and accounting professionals and enables them to take raw financial data from multiple systems and transform it into reliable, audit-ready financials for finance and accounting professionals.
Blackline generates revenue by selling subscriptions to its cloud-based software platform as well as from professional services engagements. As of Q4 2019, subscription revenue contributed 93% of revenue, while professional services were only 7% of the mix.

The financial close market is a market that is poised to grow exponentially over time regardless of economic condition around the globe. Every company must close its books every month. It's a never-ending process. And they all want to do it faster and cheaper. Blackline’s software cuts costs, reduces errors, and shaves days off the time it takes to close the books every month.
Blackline created this market which has a massive potential for growth. Market research firm Frost & Sullivan estimates the market size to be $18.5 billion, with 165,000 potential customers worldwide.

WHY I BOUGHT BLACKLINE (BL):
1. 93% recurring revenue mix with high retention rate
2. 27% YoY Subscription growth
3. 23% CAGR (Compound Annual Growth Rate)
4. 80%+ gross margins
5. Consistent improvement in profitability and cash flow
6. MOAT
-limited competition
-Best of breed
7. Strong partnerships with room for growth
8. Partnership with SAP will accelerate top line growth
9. SAP is the world's largest ERP software vendor. SAP became a global reseller for Blackline in 2018. Having the No. 1 ERP vendor as a partner is a huge. It will be a big source of growth in the coming years. Revenue from the SAP partnership increased last quarter to 25% of Blackline's sales.
10. Strong Profitable Growth with scalable business model
11. Continued international expansion
12. Solid management team
*Note = BL is a long-term hold for me....5 or more years.

Resources used:
https://seekingalpha.com/article/4340...
https://investors.blackline.com/stati...

Disclaimer:
I have been investing in the stock market for over 20 years, but I am not a financial advisor or a legal professional, and I am not providing financial or legal advice. The information provided is for informational purposes only. It should not be considered legal or financial advice. You should consult with an attorney or other professional to determine what may be best for your individual needs. FIRED Up Wealth and Eric Cuka do not make any guarantee or other promise as to any results that may be obtained from using our content. No one should make any investment decision without first consulting his or her own financial advisor and conducting his or her own research and due diligence. Past performance is no guarantee of future results.

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