15 Best Small Cap AI Stocks to Buy Right Now

5. BlackLine, Inc. (NASDAQ:BL)

Number of Hedge Fund Holders: 34

​BlackLine, Inc. (NASDAQ:BL) is a software company that provides cloud-based solutions for automating and streamlining finance and accounting operations. Its platform focuses on key processes such as financial close, account reconciliation, intercompany accounting, and compliance management. BL primarily serves mid-size to large enterprises across various industries, including manufacturing, retail, healthcare, and financial services. The platform integrates with major ERP systems, enabling real-time data access and improved accuracy in financial reporting. BL incorporates AI and machine learning to support anomaly detection, transaction matching, and predictive analytics, offering opportunities for enhanced automation and efficiency in financial workflows.

BlackLine, Inc. (NASDAQ:BL) announced a 7% headcount reduction, primarily affecting go-to-market roles including BDRs, quota-carrying reps, customer success, and professional services teams. The company is implementing significant strategic changes, including a new pricing model shifting from seat-based to platform-based pricing with revenue bands and consumption metrics. BL has set a target model of 13% to 16% total revenue growth and operating margins of 26% to 30%. Several key initiatives are driving growth, including FedRAMP compliance investments for federal government opportunities, expansion in Saudi Arabia with SAP, and significant growth in India operations from 20 to 220 people.

BlackLine, Inc. (NASDAQ:BL) has strengthened its partnership with SAP through improved compensation alignment, the establishment of a catalyst group, and the implementation of data-sharing capabilities between platforms. The company launched Studio360, a comprehensive platform with five components – Integrate, Orchestrate, Visualize, Control, and Blueprint – built on a modern data architecture in partnership with Snowflake. Management issued 2025 guidance of 7-8% growth which reflects expectations of stronger performance in the second half of the year, driven by these strategic initiatives. The pipeline includes record levels of 7-8 figure deals, particularly focused on broader sales at larger companies.