Company: BL
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001666134-25-000016
Chunk: 16

Company: BLACKLINE, INC.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 1
Chunk 16
---
 differs from the United States (“U.S.”) federal statutory rate of 21% primarily as a result of non-deductible officer compensation, stock-based compensation shortfalls, foreign taxes, and changes in the Company’s valuation allowance for income taxes.For the quarters ended March 31, 2025 and 2024, the Company recorded income tax expense of $4.7 million and $0.9 million, respectively. The increase in income tax expense for the quarter ended March 31, 2025, compared 

17

to the quarter ended March 31, 2024, resulted primarily from stock-based compensation shortfalls for the quarter ended March 31, 2025, along with changes in valuation allowance and changes in the mix of profitable foreign jurisdictions.

Note 12 – Net Income per Share

The following table sets forth the computation of basic and diluted net income per share (in thousands, except per share amounts):Quarter Ended March 31,20252024Basic net income per shareNumerator:Net income attributable to BlackLine, Inc.$6,055 $10,829 Denominator:Weighted average shares62,822 61,643 Basic net income per share attributable to BlackLine, Inc.$0.10 $0.18 Diluted net income per shareNumerator:Net income attributable to BlackLine, Inc.$6,055 $10,829 Interest expense, net of taxes125 1,394 Net income attributable to BlackLine, Inc. for diluted calculation$6,180 $12,223 Denominator:Weighted average shares62,822 61,643 Dilutive effect of securities632 926 Dilutive effect of convertible senior notes1,385 10,324 Shares used to calculate diluted net income per share64,839 72,893 Diluted net income per share attributable to BlackLine, Inc.$0.10 $0.17 The Company computes basic earnings per share attributable to BlackLine, Inc. using the weighted average number of common shares outstanding. The Company computes diluted earnings per share attributable to BlackLine, Inc. using the weighted average number of common shares outstanding plus the effect of potentially dilutive shares, which is based on the weighted-average shares of common stock underlying stock options and unvested stock awards using the treasury stock method, and the effect of the convertible senior notes using the if-converted method. For the quarter ended March 31, 202