Company: BL
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001666134-25-000031
Chunk: 34

Company: BLACKLINE, INC.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 34
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 and amortization due to certain assets becoming fully amortized in prior periods.

Research and development 

Quarter Ended June 30,ChangeSix Months Ended June 30,Change20252024$%20252024$%(in thousands, except percentages)Research and development, gross$34,625 $31,913 $2,712 8%$66,380 $62,486 $3,894 6%Capitalized internally developed software costs(6,661)(6,192)(469)8%(12,691)(11,750)(941)8%Research and development, net$27,964 $25,721 $2,243 9%$53,689 $50,736 $2,953 6%Percentage of total revenues16.3%16.0%15.8%16.0%

The increase in research and development expenses for the quarter ended June 30, 2025, compared to the quarter ended June 30, 2024, was primarily due to the following:

•$2.6 million increase in employee compensation and benefits, partially offset by a decrease in average compensation per employee due to an increase in offshore headcount; partially offset by

•$0.5 million increase in capitalized software costs primarily due to required updates to access new markets, and ongoing development of cloud-based and new solution offerings. Collectively, these increases resulted in a decrease in net expenses. 

The increase in research and development expenses for the six months ended June 30, 2025, compared to the six months ended June 30, 2024, was primarily due to the following:

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•$4.1 million increase in employee compensation and benefits, partially offset by a decrease in average compensation per employee due to an increase in offshore headcount; partially offset by

•$0.9 million increase in capitalized software costs primarily due to required updates to access new markets, and ongoing development of cloud-based and new solution offerings. Collectively, these increases resulted in a decrease in net expenses; and

•$0.8 million decrease in professional fees.

General and administrative 

Quarter Ended June 30,ChangeSix Months Ended June 30,Change20252024$%20252024$%(in thousands, except percentages)General and administrative$28,138 $31,053 $(2,915)(9%)$56,483 $61,099 $(4,616)(8%)Percentage of