Company: BL
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001666134-25-000016
Chunk: 27

Company: BLACKLINE, INC.
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 1
Chunk 27
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 $32,052 $2,078 6 %Professional services6,794 7,045 (251)(4 %)Total cost of revenues$40,924 $39,097 $1,827 5 %Gross margin75.5 %75.2 %

The increase in total cost of revenues for the quarter ended March 31, 2025, compared to the quarter ended March 31, 2024, was primarily due to the following:

•$1.2 million increase in computer software expenses due to higher spend on cloud hosting services as customers continue to migrate to the Google Cloud Platform (“GCP”), as well as upgrades to support business growth; 

•$1.0 million increase in amortization of developed technology due to net additions to software placed into service; and

•$0.8 million increase primarily driven by the issuance of equity grants made after the quarter ended March 31, 2024 that contributed to a higher baseline of recurring expense for the quarter ended March 31, 2025; partially offset by

•$0.7 million decrease in depreciation and amortization due to certain assets being fully amortized. 

Sales and marketing

Quarter Ended March 31,Change20252024$%(in thousands, except percentages)Sales and marketing$63,063 $61,111 $1,952 3 %Percentage of total revenues37.8 %38.8 %

The increase in sales and marketing expenses for the quarter ended March 31, 2025, compared to the quarter ended March 31, 2024, was primarily due to the following:

•$2.3 million increase in employee compensation and benefits primarily due to an increase in average headcount and average compensation per employee; 

•$0.4 million increase in employee events; 

•$0.3 million increase in digital marketing expenses, partially offset by the timing of our international BeyondTheBlack event; and

•$0.3 million increase in computer software expenses to support internal automation and scalability initiatives; partially offset by

•$1.4 million decrease in depreciation and amortization due to certain assets being fully amortized.

25

Research and development 

Quarter Ended March 31,Change20252024$%(in thousands, except percentages)Research and development, gross$31,755 $30,573 $1,182 4 %Capitalized internally developed software costs(6,030)(