Company: BL
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001666134-25-000003
Chunk: 95

Company: BLACKLINE, INC.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 7
Chunk 95
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 costs(25,670)(21,339)(4,331)20 %Research and development, net$100,973 $103,207 $(2,234)(2 %)Percentage of total revenues15.5 %17.5 %

The decrease in research and development expenses for the year ended December 31, 2024, compared to the year ended December 31, 2023, was primarily due to the following:

49

•$4.3 million increase in capitalized software costs due to a focus on the development of new solution offerings and initiatives, cloud-based solutions, and enhancements to the overall platform user experience. Collectively, these increases resulted in a decrease in net expenses; 

•$2.5 million decrease in transaction-related costs related to the FourQ Acquisition; and

•$0.5 million decrease in professional fees; partially offset by

•$4.6 million increase in employee compensation and benefits driven primarily by an increase in bonuses; and

•$0.6 million increase in rent expense for additional leasehold facilities.

We remain committed to innovation and investing in artificial intelligence to enhance our platform and business. 

General and administrative

 Year Ended December 31,Change 20242023$% (in thousands, except percentages)General and administrative$121,795 $71,530 $50,265 70 %Percentage of total revenues18.6 %12.1 %

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

•$33.5 million increase due to the decrease in the fair value of FourQ contingent consideration recorded in the year ended December 31, 2023 (refer to “Note 8 - Fair Value Measurements”);

•$16.8 million increase in employee compensation and benefits primarily related to an increase in average headcount and average compensation per employee that includes strategic initiatives to support long-term growth; 

•$4.5 million increase due to net foreign currency losses resulting from the weakening of multiple currencies against the U.S. Dollar; and

•$0.6 million increase in computer software expenses to support automation and scalability; partially offset by 

•$2.8 million decrease in costs related to the Data Interconnect Acquisition and internal strategic projects; 

•$2.0 million decrease in professional fees; and

•$1.1 million decrease