Company: BL
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001628280-25-050628
Chunk: 33

Company: BLACKLINE, INC.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 33
---
33,370 7%

28

September 30,20252024Dollar-based net revenue retention rate103%105%Number of customers4,424 4,433 Number of users385,336 397,095 

The increase in revenues for the quarter and nine months ended September 30, 2025, compared to the quarter and nine months ended September 30, 2024, was primarily driven by revenue from product expansion from existing customers and bookings from new customers. The total number of customers at September 30, 2025 remained relatively flat as compared to September 30, 2024. The total number of users at September 30, 2025 decreased by 3%, as compared to September 30, 2024, primarily due to our strategic initiative to migrate customers to new, more flexible platform pricing models. The platform enhances operational efficiency, and in certain cases, enables customers to streamline workflows and increase the number of users at no additional costs. This approach is designed to accelerate our customers' finance transformation by providing a scalable foundation to adopt our latest innovations, including our Studio360 and Verity AI offerings. 

Cost of revenues

Quarter Ended September 30,ChangeNine Months Ended September 30,Change20252024$%20252024$%(in thousands, except percentages)Subscription and support$37,130 $34,667 $2,463 7%$106,449 $100,475 $5,974 6%Professional services7,259 6,439 820 13%21,486 20,076 1,410 7%Total cost of revenues$44,389 $41,106 $3,283 8%$127,935 $120,551 $7,384 6%Gross margin75.1%75.2%75.3%75.1%

The increase in total cost of revenues for the quarter ended September 30, 2025, compared to the quarter ended September 30, 2024, was primarily due to the following:

•$1.8 million increase in computer software expenses due to upgrades to support business growth; 

•$1.0 million increase in professional fees; and

•$0.9 million increase in amortization of developed technology due to net additions to software placed into service; partially offset by

•$0.6 million decrease in depreciation and amortization due to certain assets becoming fully amortized in