Company: BL
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001666134-25-000003
Chunk: 94

Company: BLACKLINE, INC.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 7
Chunk 94
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5 %Total cost of revenues$161,965 $146,793 $15,172 10 %Gross margin75.2 %75.1 %

The increase in total cost of revenues for the year ended December 31, 2024, compared to the year ended December 31, 2023, was primarily due to the following: 

•$10.8 million increase in computer software expenses due to higher spend on cloud hosting services as customers continue to migrate to GCP, as well as upgrades to support business growth; 

•$3.5 million increase in amortization of developed technology due to net additions of software placed into service; and 

•$2.0 million increase in employee compensation and benefits driven primarily by an increase in average compensation per employee, partially offset by a decrease in average headcount; partially offset by

•$1.0 million decrease in depreciation and amortization due to certain assets being fully amortized; and

•$0.8 million decrease in professional fees. 

Sales and marketing

 Year Ended December 31,Change 20242023$% (in thousands, except percentages)Sales and marketing$248,347 $243,154 $5,193 2 %Percentage of total revenues38.0 %41.2 %

The increase in sales and marketing expenses for the year ended December 31, 2024, compared to the year ended December 31, 2023, was primarily due to the following:

•$2.0 million increase in employee compensation and benefits driven primarily by an increase in average compensation per employee, partially offset by a decrease in average headcount;

•$1.8 million increase in professional fees; 

•$1.2 million increase in costs related to strategic internal projects;

•$1.2 million increase in computer software expenses to support automation and scalability; and

•$0.8 million increase in sales-related events held in-person compared to virtual events in the prior year; partially offset by

•$1.1 million decrease in marketing expenses due to streamlined marketing efforts; and 

•$0.9 million decrease in depreciation and amortization due to certain assets being fully amortized. 

Research and development

 Year Ended December 31,Change 20242023$% (in thousands, except percentages)Research and development, gross$126,643 $124,546 $2,097 2 %Capitalized internally-developed software