Company: BL
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001666134-25-000003
Chunk: 142

Company: BLACKLINE, INC.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 142
---
 the income approach. This method estimates an intangible asset’s value based on the 

80

present value of the incremental after-tax cash flows attributable to the intangible asset. The Company applied judgment which involves the use of significant assumptions with respect to the discount rate, obsolescence rate, revenue forecasts, research and development costs for future technology, and EBITDA forecasts. Customer relationships – The Company valued the finite-lived customer relationships using the differential cash flow (with-and-without) model, an income approach. This method assumes that the value of the intangible asset is equal to the difference between the present value of the prospective cash flows with the intangible asset in place and the present value of the prospective cash flows without the intangible asset. The Company applied judgment, which involved the use of significant assumptions with respect to the discount rate and the customer ramp-up rate.

Note 6 – Intangible Assets and Goodwill

The carrying value of intangible assets was as follows (in thousands):December 31, 2024Gross Carrying AmountAccumulated AmortizationNet Carrying AmountTrade name$15,977 $(15,977)$— Developed technology137,718 (80,284)57,434 Customer relationships26,779 (25,528)1,251 Defensive patent2,333 (1,498)835 $182,807 $(123,287)$59,520 December 31, 2023Gross Carrying AmountAccumulated AmortizationNet Carrying AmountTrade name$15,977 $(15,977)$— Developed technology137,368 (66,900)70,468 Customer relationships26,779 (19,342)7,437 Defensive patent2,333 (1,182)1,151 $182,457 $(103,401)$79,056 Amortization expense is included in the following functional statements of operations expense categories. Amortization expense was as follows (in thousands):Year Ended December 31,202420232022Cost of revenues$13,370 $12,438 $11,315 Sales and marketing6,201 6,791 6,505 General and administrative315 1,379 1,911 $19,886 $20,608 $19,731 The following table presents the Company’s estimate of remaining amortization expense for each of the five succeeding fiscal years