Company: BL
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001628280-25-050628
Chunk: 35

Company: BLACKLINE, INC.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 35
---
 by

•$4.5 million decrease in depreciation and amortization due to certain assets becoming fully amortized in prior periods.

Research and development 

Quarter Ended September 30,ChangeNine Months Ended September 30,Change20252024$%20252024$%(in thousands, except percentages)Research and development, gross$33,978 $32,604 $1,374 4%$100,357 $95,090 $5,267 6%Capitalized internally developed software costs(6,647)(6,955)308 (4%)(19,337)(18,705)(632)3%Research and development, net$27,331 $25,649 $1,682 7%$81,020 $76,385 $4,635 6%Percentage of total revenues15.3%15.5%15.7%15.8%

The increase in research and development expenses for the quarter ended September 30, 2025, compared to the quarter ended September 30, 2024, was primarily due to the following:

•$1.1 million increase in employee compensation and benefits, partially offset by a decrease in average compensation per employee due to an increase in offshore headcount;

•$0.5 million increase in computer software expenses due to higher spend on cloud hosting services, as well as upgrades to support business growth; and

30

•$0.3 million decrease in capitalized software costs primarily due to a realignment of resources to prioritize key products, partially offset by required updates to access new markets, and ongoing development of cloud-based and new solution offerings. Collectively, these decreases resulted in an increase in net expenses; partially offset by

•$0.3 million decrease in professional fees.

The increase in research and development expenses for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, was primarily due to the following:

•$5.3 million increase in employee compensation and benefits, partially offset by a decrease in average compensation per employee due to an increase in offshore headcount; and

•$0.6 million increase in computer software expenses due to higher spend on cloud hosting services as customers continue to migrate to GCP, as well as upgrades to support business growth; partially offset by

•$1.2 million decrease in professional fees; and

•$0.6 million increase in capitalized software costs primarily due