Company: BL
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001666134-25-000016
Chunk: 171

Company: BLACKLINE, INC.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 8
Chunk 171
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 to migrate to the Google Cloud Platform (“GCP”), as well as upgrades to support business growth; 

•$1.0 million increase in amortization of developed technology due to net additions to software placed into service; and

•$0.8 million increase primarily driven by the issuance of equity grants made after the quarter ended March 31, 2024 that contributed to a higher baseline of recurring expense for the quarter ended March 31, 2025; partially offset by

•$0.7 million decrease in depreciation and amortization due to certain assets being fully amortized. 

Sales and marketing

Quarter Ended March 31,Change20252024$%(in thousands, except percentages)Sales and marketing$63,063 $61,111 $1,952 3 %Percentage of total revenues37.8 %38.8 %

The increase in sales and marketing expenses for the quarter ended March 31, 2025, compared to the quarter ended March 31, 2024, was primarily due to the following:

•$2.3 million increase in employee compensation and benefits primarily due to an increase in average headcount and average compensation per employee; 

•$0.4 million increase in employee events; 

•$0.3 million increase in digital marketing expenses, partially offset by the timing of our international BeyondTheBlack event; and

•$0.3 million increase in computer software expenses to support internal automation and scalability initiatives; partially offset by

•$1.4 million decrease in depreciation and amortization due to certain assets being fully amortized.

25

Research and development 

Quarter Ended March 31,Change20252024$%(in thousands, except percentages)Research and development, gross$31,755 $30,573 $1,182 4 %Capitalized internally developed software costs(6,030)(5,558)(472)8 %Research and development, net$25,725 $25,015 $710 3 %Percentage of total revenues15.4 %15.9 %

The increase in research and development expenses for the quarter ended March 31, 2025, compared to the quarter ended March 31, 2024, was primarily due to the following:

•$1.5 million increase in employee compensation and benefits primarily due to an increase in average headcount, partially offset by a decrease in average compensation per employee; partially offset by

•$0.5 million