Company: BL
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001666134-25-000003
Chunk: 166

Company: BLACKLINE, INC.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 166
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 net income (loss) per share73,503 72,045 59,539 Diluted net income (loss) per share attributable to BlackLine, Inc.$1.45 $0.81 $(0.49)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. The weighted average impact of potentially dilutive securities that were excluded from the diluted per share calculations because they were anti-dilutive were as follows (in thousands):Year Ended December 31,202420232022Stock options - service-only vesting conditions330 1,062 2,431 Restricted stock units - service-only vesting conditions1,813 1,834 2,202 Restricted stock units - performance and service conditions55 16 207 Restricted stock units - market and service conditions153 — — Restricted stock units - performance, market, and service conditions— 73 189 Total shares excluded from net income (loss) per share2,351 2,985 5,029 

The denominator for diluted net income per share attributable to BlackLine, Inc. does not include any effect from the Capped Calls as this effect would be anti-dilutive. In the event of conversion of the Notes, shares delivered to the Company under the Capped Calls would offset the dilutive effect of the shares that the Company would issue under the Notes. Refer to “Note 11 - Convertible Senior Notes” for additional information on the Notes and the related Capped Calls. 

Note 16 – Contingent Consideration

As a condition of the FourQ Acquisition that occurred on January 26, 2022, the Company agreed to pay additional cash consideration if FourQ realized certain firm-specific targets, including the amount and timing of new and incremental combined bookings from FourQ and BlackLine, and revenues from a specified FourQ customer 

96

over a three-year period subsequent to the acquisition date. The maximum cash consideration to be distributed is $73.2 million. Changes in the significant inputs used in the fair value measurement, specifically a change in