Company: BL
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001666134-25-000016
Chunk: 173

Company: BLACKLINE, INC.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 8
Chunk 173
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Quarter Ended March 31,Change20252024$%(in thousands, except percentages)Interest expense$2,522 $1,469 $1,053 72 %

The increase in interest expense during the quarter ended March 31, 2025, compared to the quarter ended March 31, 2024, was primarily due to the cash interest expense and amortization of debt issuance costs related to our 2029 Notes issued in May 2024, partially offset by a decrease in interest expense from the partial repurchase of our 2026 Notes and the repayment of our 2024 Notes in August 2024. Refer to “Note 8 - Convertible Senior Notes” in our condensed consolidated financial statements for additional information. 

Provision for income taxes 

Quarter Ended March 31,Change20252024$%(in thousands, except percentages)Provision for income taxes$4,671 $869 $3,802 438 %

We are subject to federal and state income taxes in the U.S. and taxes in foreign jurisdictions. For the quarter ended March 31, 2025, our annual estimated effective tax rate differed from the U.S. federal statutory rate of 21% primarily as a result of non-deductible officer compensation, stock-based compensation shortfalls, foreign taxes, and changes in our valuation allowance for income taxes.

For the quarters ended March 31, 2025 and 2024, we recorded income tax expense of $4.7 million and $0.9 million, respectively. The increase in income tax expense for the quarter ended March 31, 2025, compared to the quarter ended March 31, 2024, resulted primarily from stock-based compensation shortfalls for the quarter ended March 31, 2025, along with changes in valuation allowance and changes in the mix of profitable foreign jurisdictions.

Liquidity and Capital Resources

At March 31, 2025, our principal sources of liquidity were an aggregate of $866.5 million of cash and cash equivalents and marketable securities, which primarily consist of short-term, money market mutual funds, commercial paper, and U.S. treasury securities.

We believe our existing cash and cash equivalents, investments in marketable securities, and cash from operations will be sufficient to meet our working capital needs, capital expenditures, financing obligations, and share repurchases for at least the next 12 months.

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Contractual Obligations and Commitments 

Convertible senior notes and