Company: BL
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001666134-25-000003
Chunk: 145

Company: BLACKLINE, INC.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 145
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 contingent consideration liability (in thousands):Year Ended December 31,202420232022Beginning fair value$— $41,549 $20,732 Additions in the period— — 55,947 Payments in the period— (8,000)— Change in fair value— (33,549)(35,130)Ending fair value$— $— $41,549 The Company classified the marketable debt securities as available-for-sale debt securities at the time of purchase and reevaluated such classification as of each balance sheet date. The valuation techniques used to measure the fair values of our instruments that were classified as Level 1 were derived from quoted market prices for identical instruments in active markets. The valuation techniques used to measure the fair values of Level 2 instruments were derived from broker reports that utilized quoted market prices for similar instruments.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 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 new and incremental actual and forecasted combined bookings from FourQ and the Company, can significantly impact the fair value of the contingent consideration liability. At December 31, 2024, the related liability for the FourQ Acquisition was zero. As of the filing date of this Annual Report on Form 10-K, the financial performance milestones were not met, and the Company is no longer obligated to pay the contingent consideration of $73.2 million.

Increases and decreases in the fair value of contingent consideration are recorded as expense or reversals of expense, respectively, within general and administrative expenses in the consolidated statements of operations. 

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Note 9 – Property and Equipment

Property and equipment, net consisted of the following (in thousands):December 31,20242023Computers and equipment$23,354 $22,396 Purchased software13,990 14,007 Furniture and fixtures4,511 4,197 Leasehold improvements16,316 16,198 Data center equipment - finance lease1,297 1,231 Building - finance lease1,521 1,219