Company: BL
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001666134-25-000031
Chunk: 182

Company: BLACKLINE, INC.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 8
Chunk 182
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 number of users at June 30, 2025 decreased by 2%, as compared to June 30, 2024, due to customer migrations to our new platform pricing model.

Cost of revenues

Quarter Ended June 30,ChangeSix Months Ended June 30,Change20252024$%20252024$%(in thousands, except percentages)Subscription and support$35,189 $33,756 $1,433 4%$69,319 $65,808 $3,511 5%Professional services7,433 6,592 841 13%14,227 13,637 590 4%Total cost of revenues$42,622 $40,348 $2,274 6%$83,546 $79,445 $4,101 5%Gross margin75.2%74.9%75.4%75.0%

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

•$1.5 million increase in computer software expenses due to higher spend on cloud hosting services as customers continue to migrate to the Google Cloud Platform (“GCP”), as well as upgrades to support business growth; 

•$1.1 million increase in amortization of developed technology due to net additions to software placed into service; and

•$0.4 million increase in professional fees; partially offset by

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

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

•$2.7 million increase in computer software expenses due to higher spend on cloud hosting services as customers continue to migrate to the GCP, as well as upgrades to support business growth; 

•$2.1 million increase in amortization of developed technology due to net additions to software placed into service; and

•$0.6 million increase in employee compensation and benefits; partially offset by

•$1.3 million decrease in depreciation and amortization due to certain assets becoming fully amortized in prior periods. 

28

Sales and marketing

Quarter Ended June 30,ChangeSix Months Ended June 30,Change20252024$