Latest news with #SaaS
Yahoo
7 hours ago
- Business
- Yahoo
William Blair Sticks with Buy as Blend Labs (BLND) Sharpens SaaS Focus
Blend Labs Inc. (NYSE:BLND) is one of the 10 best debt-free IT penny stocks to buy. On May 28, William Blair analyst Dylan Becker reiterated a Buy rating on Blend Labs (BLND), though he didn't assign a price target to the stock. In Becker's view, the company's recent decision to divest its Title365 business marks an important strategic change. By moving away from the more services-heavy segment, Blend is now better positioned to operate as a focused vertical SaaS company. A customer using the latest mobile banking app, taking control of their financial future. Becker notes that this step should have a positive impact on Blend's financial profile, particularly by improving gross margins and bringing them more in line with those of software-first businesses. More importantly, the move allows management to sharpen its focus on the core business—developing digital tools for banking products like mortgages and consumer loans. With this narrowed focus, Becker expects Blend to strengthen its position in the market over time, particularly as it looks to deliver improved customer experiences in the financial services space. While broader mortgage market remains challenging, he sees potential for the company to unlock improved profitability and generate stronger revenue growth from 2025 onwards. Blend Labs Inc. (NYSE:BLND) offers a cloud-based banking software platform that simplifies and automates consumer banking experiences, including mortgage applications, personal loans, and deposit account openings. While we acknowledge the potential of BLND as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Best Tech Stocks to Buy According to Billionaires. Disclosure: None. Sign in to access your portfolio
Yahoo
a day ago
- Business
- Yahoo
5 Insightful Analyst Questions From BlackLine's Q1 Earnings Call
BlackLine's first quarter saw a positive market response following steady revenue growth and a notable margin improvement. Management attributed these results to operational enhancements in sales execution, customer expansion, and the adoption of its Studio360 platform. The leadership team emphasized increased average deal size, especially among enterprise clients, and highlighted the successful rollout of a new pricing model. Co-CEO Owen Ryan pointed to deepening relationships with key partners and customer wins in both North America and international markets as important contributors to quarterly performance. The company also credited faster implementation timelines and improved go-to-market alignment for helping drive customer satisfaction and top-of-funnel activity. Is now the time to buy BL? Find out in our full research report (it's free). Revenue: $166.9 million vs analyst estimates of $166.7 million (6% year-on-year growth, in line) Adjusted EPS: $0.49 vs analyst estimates of $0.38 (28% beat) Adjusted Operating Income: $34.95 million vs analyst estimates of $28.67 million (20.9% margin, 21.9% beat) The company reconfirmed its revenue guidance for the full year of $698.5 million at the midpoint Management raised its full-year Adjusted EPS guidance to $2.17 at the midpoint, a 6.6% increase Operating Margin: 2.1%, up from 1.1% in the same quarter last year Customers: 4,455, up from 4,443 in the previous quarter Annual Recurring Revenue: $656 million at quarter end, up 8.4% year on year Billings: $159 million at quarter end, up 9.2% year on year Market Capitalization: $3.52 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Rob Oliver (Baird) asked about the sustainability of margin expansion amid ongoing growth investments. CFO Patrick Villanova responded that margin gains were achieved without delaying planned investments and that flexibility remains to adjust spending if macro conditions deteriorate. Koji Ikeda (Bank of America) inquired about adoption trends for the new platform pricing model and its impact on user metrics. Villanova clarified that adoption was ahead of plan, especially among large enterprises, and explained how the model shifts user counts to zero for those customers. Patrick Walravens (Citizens) questioned BlackLine's approach to AI compared to competitors. Co-CEO Therese Tucker emphasized the company's focus on delivering 'responsible AI' with strong audit trails and leveraging decades of SaaS data for deeper insights. Pinjalim Bora (JPMorgan) probed the drivers behind changes in renewal rates and potential headwinds. Co-CEO Owen Ryan noted enterprise renewal rates remain strong, with mid-market churn linked to legacy customers and corporate restructuring, while Villanova said the new pricing model supports retention. Dominique Manansala (Truist Securities) asked about public sector traction and expectations for meaningful contribution. Ryan replied that the focus is on building pipelines with partners and SAP, with material impact expected primarily in future periods. Looking forward, our analysts will be watching (1) the pace of AI feature adoption and the impact of expanded Studio360 capabilities on customer engagement, (2) progress on deepening the SAP partnership and the uptake of bundled solutions in cloud ERP migrations, and (3) the effectiveness of the new pricing model in driving renewal rates and reducing churn. Developments in public sector and industry-specific solutions will also be important signposts. BlackLine currently trades at $56.53, up from $46.65 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
Yahoo
a day ago
- Business
- Yahoo
The Top 5 Analyst Questions From Varonis's Q1 Earnings Call
Varonis delivered first quarter results that exceeded Wall Street's expectations, with management attributing the performance to accelerating adoption of its SaaS-based data security platform and continued expansion among both new and existing customers. CEO Yaki Faitelson noted that the company's SaaS transition was 'well on track to complete by the end of the year,' and highlighted strong demand for automated data protection solutions as a key growth driver. Management also credited ongoing success in converting legacy customers to SaaS and the launch of offerings tailored for new use cases in cloud and hybrid environments. Is now the time to buy VRNS? Find out in our full research report (it's free). Revenue: $136.4 million vs analyst estimates of $133.4 million (19.6% year-on-year growth, 2.3% beat) Adjusted EPS: $0.01 vs analyst estimates of -$0.05 (significant beat) Adjusted Operating Income: -$6.46 million vs analyst estimates of -$11.98 million (-4.7% margin, 46.1% beat) The company reconfirmed its revenue guidance for the full year of $617.5 million at the midpoint Management raised its full-year Adjusted EPS guidance to $0.16 at the midpoint, a 3.3% increase Operating Margin: -32.1%, up from -41.8% in the same quarter last year Annual Recurring Revenue: $664.3 million at quarter end, up 18.6% year on year Billings: $140.4 million at quarter end, up 19.4% year on year Market Capitalization: $5.7 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Matt Hedberg (RBC) asked about confidence in achieving over 20% ARR growth. CFO Guy Melamed pointed to strong SaaS net retention rates, emphasizing that SaaS customers are 'coming back and buying more,' driving renewed growth. Joel Fishbein (Truist Securities) inquired about MDDR adoption and competitive positioning. CEO Yaki Faitelson described MDDR as essential for automated data breach prevention, highlighting rapid customer adoption and its role in expanding upsell opportunities. Saket Kalia (Barclays) questioned when margins would normalize as the SaaS transition progresses. Melamed explained that operating margin trough is expected this year, with gradual normalization as revenue recognition stabilizes post-transition. Roger Boyd (UBS) asked about new customer adoption of cloud and AI-focused products. Faitelson noted increasing demand for data security in SaaS and cloud repositories, especially as customers deploy AI tools that amplify data exposure risks. Jason Ader (William Blair) sought details on gross margin outlook and the wide non-GAAP operating income range. Melamed explained that the SaaS transition creates short-term volatility, but cost structure improvements are ahead of expectations, with margin normalization expected after transition completion. In coming quarters, the StockStory team will monitor (1) the pace of SaaS transition and mix progression toward 80% of recurring revenue, (2) adoption and upsell of new solutions like database activity monitoring and Agentic AI protection, and (3) improvement in operating margins as the revenue base stabilizes post-transition. Continued customer expansion into cloud and AI use cases will also be an important indicator of execution. Varonis currently trades at $50.94, up from $44.27 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
a day ago
- Business
- Forbes
The Silent Killer Of Growth: Weak Value Propositions
Henry McIntosh is founder of Twenty One Twelve Marketing - specialists in ideal client acquisition for tech, SaaS and financial firms. Most companies think their value proposition is fine. The brand feels modern, the sales deck looks good, but something's off. Growth is lumpy. Marketing is uncertain. Even your outsourced "expert" agencies are floundering. And nobody knows why. In many cases, the problem isn't the tactic but the foundation. A weak or unclear value proposition is the silent killer of growth. But it won't show up in board meetings or dashboards. It shows up in symptoms: inconsistent messaging, weak leads, high churn, ineffective campaigns and frustrated teams. If you're not confident in the difference you make to your customers, you can be sure your market isn't either. Here's how a faulty value proposition is holding your business back: 1. Your Brand Is Vague And Overly Emotive Most businesses fall into one of two traps: They either mimic corporate giants like Apple and Google, hoping that a sleek brand will build loyalty, or they bury their messaging in vague, emotional language that fails to resonate. For small to mid-sized companies, this doesn't work. You don't have the advertising budget to force-feed the market an abstract message. And, more importantly, nobody cares about your 'why' until they understand what's in it for them. Your brand must clearly convey the commercial value you deliver—not the feeling you want to evoke or the mission that excites your team but the value your customer receives from working with you. If you can't communicate this value in a few short sentences, your prospects will tune out. 2. Marketing Doesn't Know What To Say Marketing without positioning is just noise. Teams that don't have a firm grasp on the value proposition are left experimenting with campaigns that lack consistency or purpose. You see this in the form of fragmented content, inconsistent tone and scattergun messaging. These businesses often have smart, capable marketers who are doing their best, but without a clear strategic anchor, they're left guessing. This is especially true for companies led by ex-corporate leaders who are used to big-brand halo effects and enterprise-sized budgets. They assume a logo and a few taglines are enough. But in leaner teams, the message matters more. Great marketing doesn't require more content—it requires more clarity. 3. Your Digital Leads Are Weak When you don't understand why your best customers buy from you, the fallback is to chase quantity over quality. The result? Bloated customer relationship management systems (CRMs), disinterested leads and overworked sales teams. A long-time associate of Twenty One Twelve likes to use the following example: Real estate firms once used online property price calculators to generate leads. But most users just wanted to know their home value, not sell. These "leads" went nowhere. Reps burned time. Conversion plummeted. High volume, low intent. Now, imagine running digital campaigns with a precise value proposition—something tailored to your ideal client, speaking directly to their pain points, priorities and desired outcomes. Suddenly, you're not hunting for interest—you're creating it. In an age of AI and hyper-personalization, a broad value proposition isn't just lazy—it's expensive. 4. Sales Relies On Tactics, Not Value When value isn't clearly defined, sales teams default to tricks: discounts, urgency plays and gimmicky intros. It reduces a complex offering to a transactional pitch. This hurts in two ways. First, you lose margin. Second, you lose long-term trust. Arm your salespeople with a strong value proposition and everything changes. They move from dealmakers to advisors. They know their audience, what they need to highlight and when to walk away. A great value proposition creates space for better qualification, storytelling and, ultimately, conversions. It allows your sales team to stop improvising and start advising. 5. Agencies And Consultants Are Left Guessing If you're working with external partners, your value proposition is their launchpad. Without it, they're flying blind. We see this all the time: campaigns stall, messaging flops, creative feels off. The client blames the agency, the agency blames the brief, but under the surface, the real issue is a lack of clarity about what the business does best. The core narrative must be nailed down. Even the most talented agencies can't perform miracles. They need focus, direction and a defined promise to bring to life. If you're burning through agencies, the problem might not be them—but you. Build From The Core The difference between companies that grow sustainably and those that constantly restart is simple: Winners build from the core. They understand the value they bring, who benefits and how to articulate it. If you're seeing symptoms like poor leads, unclear messaging, sales under pressure or failed campaigns, don't start with tactics. Start with your proposition. Because if you don't know the value you bring, the market certainly won't figure it out for you. Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
Yahoo
a day ago
- Business
- Yahoo
TD Cowen Sets $51 Target on Wayfair
TD Cowen initiated coverage on Wayfair (NYSE: W) in early June, giving the stock a Buy rating and a price target of $51, given its leadership in healthcare software. Analysts describe Wayfair as a key player in SaaS tools for healthcare providers. That includes managing billing cycles, handling patient payments, and clearinghouse services, systems that keep the financial engine running behind the scenes. TD Cowen pointed to structural tailwinds: rising complexity in medical billing and a growing chunk of patient costs shifting out-of-pocket. These trends, they argue, give Wayfair room to grow as providers turn to software to keep up. A clinical medical professional helping a patient while using an integrated health information technology software. It's not the kind of bullish case that leans on hype or flashy growth figures. It's more about fundamentals, sticky software in a sector that can't afford to fall behind. With that setup, TD Cowen sees a path for steady growth, and their $51 target reflects confidence in Wayfair's ability to scale as the healthcare system keeps getting messier. While we acknowledge the potential of W as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
