According to a recent report, the global accounting software market is estimated to grow 8.6% to be worth $11.8 billion by 2026, North America being the largest contributor to this growth in terms of revenue. The growth in the developed markets is expected to be driven by the adoption of mobile devices and movement to the cloud among organizations.

BlackLine’s Financials

Cloud-based accounting software maker BlackLine (Nasdaq: BL ) recently announced its second-quarter results that surpassed market expectations. Revenues for the quarter grew 32% over the year to $55.5 million, ahead of the market’s estimate of $53.66 million. It ended the quarter with non-GAAP EPS of $0.01, ahead of the market’s forecast of a loss of $0.01 per share. This was BlackLine’s fourth consecutive quarter of profitability on an adjusted basis. On a GAAP basis, the company recorded a net loss of $8.5 million, which was better than the loss of $9.1 million reported a year ago. It is yet to turn in profits on a GAAP basis.

By segment, subscription and support revenues grew 34% to $53.05 million and professional services revenues grew 12% to $2.41 million.

Among other metrics, the company added 105 net new customers in the quarter, ending with more than 2,400 customers for the quarter. It grew its user base to just under 210,000 users and recorded a dollar-based net revenue retention rate of 111% during the quarter compared with 110% a quarter ago.

BlackLine forecast revenues of $57-$58 million with a non-GAAP breakeven for the current quarter. The market was looking for revenues of $57.6 million for the quarter with a net loss of $0.06 per share. BlackLine revised its annual forecast upwards. It now expects revenues of $224-$227 million compared with an earlier estimate of $222-$225 million. It also increased its earnings estimate to $0.01-$0.03 compared with the forecast of $0.02-$0.00 released a quarter ago. The market was looking for revenues of $226.1 million with an EPS of $0.00 for the year.