Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 15, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-37924 | ||
Entity Registrant Name | BlackLine, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 46-3354276 | ||
Entity Address, Address Line One | 21300 Victory Boulevard | ||
Entity Address, Address Line Two | 12th Floor | ||
Entity Address, City or Town | Woodland Hills, | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 91367 | ||
City Area Code | 818 | ||
Local Phone Number | 223-9008 | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | BL | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3,034,000,000 | ||
Entity Common Stock, Shares Outstanding | 61,520,108 | ||
Documents Incorporated by Reference | Portions of the information called for by Part III of this Annual Report on Form 10-K where indicated are hereby incorporated by reference from the Definitive Proxy Statement for the registrant’s Annual Meeting of Stockholders to be held in 2024, which will be filed with the Securities and Exchange Commission not later than 120 days after the end of the registrant’s fiscal year ended December 31, 2023. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001666134 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Los Angeles, CA |
Auditor Firm ID | 238 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 271,117 | $ 200,968 |
Marketable securities (amortized cost of $932,850 and $875,456 at December 31, 2023 and December 31, 2022, respectively) | 933,355 | 874,083 |
Accounts receivable, net of allowances of $5,064 and $2,282 at December 31, 2023 and 2022, respectively | 171,608 | 150,858 |
Prepaid expenses and other current assets | 31,244 | 23,658 |
Total current assets | 1,407,324 | 1,249,567 |
Capitalized software development costs, net | 37,828 | 32,070 |
Property and equipment, net | 14,867 | 19,811 |
Intangible assets, net | 79,056 | 90,864 |
Goodwill | 448,965 | 443,861 |
Operating lease right-of-use assets | 19,173 | 14,708 |
Other assets | 93,552 | 92,775 |
Total assets | 2,100,765 | 1,943,656 |
Current liabilities: | ||
Accounts payable | 8,623 | 14,964 |
Accrued expenses and other current liabilities | 59,690 | 58,600 |
Deferred revenue, current | 320,133 | 279,325 |
Finance lease liabilities, current | 778 | 989 |
Operating lease liabilities, current | 4,108 | 5,943 |
Convertible senior notes, net, current | 249,233 | 0 |
Contingent consideration, current | 0 | 8,000 |
Total current liabilities | 642,565 | 367,821 |
Finance lease liabilities, noncurrent | 4 | 785 |
Operating lease liabilities, noncurrent | 15,738 | 9,292 |
Convertible senior notes, net, noncurrent | 1,140,608 | 1,384,306 |
Contingent consideration, noncurrent | 0 | 33,549 |
Deferred tax liabilities, net | 6,394 | 5,568 |
Deferred revenue, noncurrent | 904 | 343 |
Other long-term liabilities | 3,608 | 6,229 |
Total liabilities | 1,809,821 | 1,807,893 |
Commitments and contingencies (Note 17) | ||
Redeemable non-controlling interest (Note 4) | 30,063 | 23,895 |
Stockholders' equity: | ||
Common stock, $0.01 par value, 500,000,000 shares authorized, 61,515,105 and 60,016,824 issued and outstanding at December 31, 2023 and 2022, respectively | 615 | 600 |
Additional paid-in capital | 474,863 | 385,709 |
Accumulated other comprehensive income (loss) | 205 | (1,472) |
Accumulated deficit | (214,802) | (272,969) |
Total stockholders' equity | 260,881 | 111,868 |
Total liabilities, redeemable non-controlling interest, and stockholders' equity | $ 2,100,765 | $ 1,943,656 |
CONSOLIDATED BALANCE SHEETS (PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Amortized cost | $ 932,850 | $ 875,456 |
Allowances for doubtful accounts | $ 5,064 | $ 2,282 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 61,515,105 | 60,016,824 |
Common stock, shares outstanding (in shares) | 61,515,105 | 60,016,824 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues | |||
Total revenues | $ 589,996 | $ 522,938 | $ 425,706 |
Cost of revenues | |||
Total cost of revenues | 146,793 | 129,385 | 97,871 |
Gross profit | 443,203 | 393,553 | 327,835 |
Operating expenses | |||
Sales and marketing | 243,154 | 256,862 | 202,620 |
Research and development | 103,207 | 108,893 | 77,322 |
General and administrative | 71,530 | 80,155 | 86,507 |
Restructuring costs | 10,964 | 3,841 | 0 |
Total operating expenses | 428,855 | 449,751 | 366,449 |
Income (loss) from operations | 14,348 | (56,198) | (38,614) |
Other income (expense) | |||
Interest income | 52,059 | 14,637 | 700 |
Interest expense | (5,898) | (5,850) | (62,945) |
Other income (expense), net | 46,161 | 8,787 | (62,245) |
Income (loss) before income taxes | 60,509 | (47,411) | (100,859) |
Provision for (benefit from) income taxes | 1,450 | (13,520) | 135 |
Net income (loss) | 59,059 | (33,891) | (100,994) |
Net income (loss) attributable to redeemable non-controlling interest (Note 4) | 892 | (369) | (910) |
Adjustment attributable to redeemable non-controlling interest (Note 4) | 5,334 | (4,131) | 15,077 |
Net income (loss) attributable to BlackLine, Inc. | $ 52,833 | $ (29,391) | $ (115,161) |
Basic net income (loss) per share attributable to BlackLine, Inc. (in usd per share) | $ 0.87 | $ (0.49) | $ (1.97) |
Shares used to calculate basic net income (loss) per share (in shares) | 60,849,000 | 59,539,000 | 58,351,000 |
Diluted net income (loss) per share attributable to BlackLine, Inc. (in usd per share) | $ 0.81 | $ (0.49) | $ (1.97) |
Shares used to calculate diluted net income (loss) per share (in shares) | 72,045,000 | 59,539,000 | 58,351,000 |
Subscription and support | |||
Revenues | |||
Total revenues | $ 555,516 | $ 491,187 | $ 398,633 |
Cost of revenues | |||
Total cost of revenues | 121,308 | 102,132 | 71,979 |
Professional services | |||
Revenues | |||
Total revenues | 34,480 | 31,751 | 27,073 |
Cost of revenues | |||
Total cost of revenues | $ 25,485 | $ 27,253 | $ 25,892 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 59,059 | $ (33,891) | $ (100,994) |
Other comprehensive income (loss): | |||
Net change in unrealized gains (losses) on marketable securities, net of tax of $123, $0, and $0, for the years ended December 31, 2023, 2022 and 2021, respectively | 1,755 | (1,450) | 88 |
Foreign currency translation | (136) | (624) | (312) |
Other comprehensive income (loss) | 1,619 | (2,074) | (224) |
Comprehensive income (loss) | 60,678 | (35,965) | (101,218) |
Less comprehensive income (loss) attributable to redeemable non-controlling interest: | |||
Net income (loss) attributable to redeemable non-controlling interest | 892 | (369) | (910) |
Foreign currency translation attributable to redeemable non-controlling interest | (58) | (304) | (146) |
Comprehensive income (loss) attributable to redeemable non-controlling interest | 834 | (673) | (1,056) |
Comprehensive income (loss) attributable to BlackLine, Inc. | $ 59,844 | $ (35,292) | $ (100,162) |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (PARENTHETICAL) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net change in unrealized gain (losses) on marketable securities, tax | $ 123 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | 0.125% Convertible Senior Notes Due 2024 | Convertible Senior Notes due 2026 | Cumulative Effect, Period of Adoption, Adjustment | Cumulative Effect, Period of Adoption, Adjusted Balance | Common Stock | Common Stock Cumulative Effect, Period of Adoption, Adjusted Balance | Additional Paid-in Capital | Additional Paid-in Capital 0.125% Convertible Senior Notes Due 2024 | Additional Paid-in Capital Convertible Senior Notes due 2026 | Additional Paid-in Capital Cumulative Effect, Period of Adoption, Adjustment | Additional Paid-in Capital Cumulative Effect, Period of Adoption, Adjusted Balance | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Cumulative Effect, Period of Adoption, Adjusted Balance | Accumulated Deficit | Accumulated Deficit Cumulative Effect, Period of Adoption, Adjustment | Accumulated Deficit Cumulative Effect, Period of Adoption, Adjusted Balance |
Beginning Balance (in shares) at Dec. 31, 2020 | 57,682 | ||||||||||||||||
Beginning Balance at Dec. 31, 2020 | $ 422,070 | $ 577 | $ 622,768 | $ 376 | $ (201,651) | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Stock option exercises (in shares) | 415 | ||||||||||||||||
Stock option exercises | 11,421 | $ 5 | 11,416 | ||||||||||||||
Vesting of restricted stock units (in shares) | 780 | ||||||||||||||||
Vesting of restricted stock units | 7 | $ 7 | |||||||||||||||
Issuance of common stock through employee stock purchase plan (in shares) | 107 | ||||||||||||||||
Issuance of common stock through employee stock purchase plan | 9,020 | $ 1 | 9,019 | ||||||||||||||
Acquisition of common stock for tax withholding obligations | (17,007) | (17,007) | |||||||||||||||
Stock-based compensation | 67,595 | 67,595 | |||||||||||||||
Other comprehensive income (loss) | (78) | (78) | |||||||||||||||
Equity component of partial repurchase of 2024 convertible senior notes | $ (219,284) | $ (219,284) | |||||||||||||||
Equity component of the 2026 convertible senior notes, net of issuance costs and tax | $ 268,803 | $ 268,803 | |||||||||||||||
Purchase of capped calls | (102,350) | (102,350) | |||||||||||||||
Net income (loss) attributable to BlackLine, Inc., including adjustment to redeemable non-controlling interest | (115,161) | (15,077) | (100,084) | ||||||||||||||
Ending Balance (in shares) at Dec. 31, 2021 | 58,984 | 58,984 | |||||||||||||||
Ending Balance at Dec. 31, 2021 | 325,036 | $ (262,130) | $ 62,906 | $ 590 | $ 590 | 625,883 | $ (324,418) | $ 301,465 | 298 | $ 298 | (301,735) | $ 62,288 | $ (239,447) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Stock option exercises (in shares) | 246 | ||||||||||||||||
Stock option exercises | 4,681 | $ 2 | 4,679 | ||||||||||||||
Vesting of restricted stock units (in shares) | 634 | ||||||||||||||||
Vesting of restricted stock units | 6 | $ 6 | |||||||||||||||
Issuance of common stock through employee stock purchase plan (in shares) | 153 | ||||||||||||||||
Issuance of common stock through employee stock purchase plan | 6,996 | $ 2 | 6,994 | ||||||||||||||
Acquisition of common stock for tax withholding obligations | (9,544) | (9,544) | |||||||||||||||
Stock-based compensation | 77,984 | 77,984 | |||||||||||||||
Other comprehensive income (loss) | (1,770) | (1,770) | |||||||||||||||
Net income (loss) attributable to BlackLine, Inc., including adjustment to redeemable non-controlling interest | (29,391) | 4,131 | (33,522) | ||||||||||||||
Ending Balance (in shares) at Dec. 31, 2022 | 60,017 | ||||||||||||||||
Ending Balance at Dec. 31, 2022 | 111,868 | $ 600 | 385,709 | (1,472) | (272,969) | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Stock option exercises (in shares) | 583 | ||||||||||||||||
Stock option exercises | 19,756 | $ 7 | 19,749 | ||||||||||||||
Vesting of restricted stock units (in shares) | 738 | ||||||||||||||||
Vesting of restricted stock units | 6 | $ 6 | |||||||||||||||
Issuance of common stock through employee stock purchase plan (in shares) | 177 | ||||||||||||||||
Issuance of common stock through employee stock purchase plan | 8,010 | $ 2 | 8,008 | ||||||||||||||
Acquisition of common stock for tax withholding obligations | (15,029) | (15,029) | |||||||||||||||
Stock-based compensation | 81,760 | 81,760 | |||||||||||||||
Other comprehensive income (loss) | 1,677 | 1,677 | |||||||||||||||
Net income (loss) attributable to BlackLine, Inc., including adjustment to redeemable non-controlling interest | 52,833 | (5,334) | 58,167 | ||||||||||||||
Ending Balance (in shares) at Dec. 31, 2023 | 61,515 | ||||||||||||||||
Ending Balance at Dec. 31, 2023 | $ 260,881 | $ 615 | $ 474,863 | $ 205 | $ (214,802) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities | |||
Net income (loss) attributable to BlackLine, Inc. | $ 52,833,000 | $ (29,391,000) | $ (115,161,000) |
Net income (loss) and adjustment attributable to redeemable non-controlling interest (Note 4) | 6,226,000 | (4,500,000) | 14,167,000 |
Net income (loss) | 59,059,000 | (33,891,000) | (100,994,000) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 50,099,000 | 42,816,000 | 27,128,000 |
Change in fair value of contingent consideration | (33,549,000) | (35,130,000) | (2,758,000) |
Amortization of debt issuance costs | 5,535,000 | 5,511,000 | 55,538,000 |
Loss on extinguishment of convertible senior notes | 0 | 0 | 7,012,000 |
Stock-based compensation | 77,970,000 | 75,884,000 | 65,870,000 |
Noncash lease expense | 6,453,000 | 5,593,000 | 4,513,000 |
(Accretion) amortization of purchase discounts on marketable securities, net | (33,884,000) | (8,874,000) | 6,000 |
Net foreign currency (gains) losses | 853,000 | (1,470,000) | 112,000 |
Deferred income taxes | (1,525,000) | (14,404,000) | (817,000) |
Provision for (benefit from) credit losses | (18,000) | 115,000 | (100,000) |
Impairment of cloud computing implementation costs | 0 | 5,330,000 | 0 |
Changes in operating assets and liabilities, net of impact of acquisition: | |||
Accounts receivable | (20,855,000) | (23,033,000) | (14,255,000) |
Prepaid expenses and other current assets | (6,599,000) | 1,059,000 | (3,956,000) |
Other assets | (595,000) | (10,112,000) | (22,505,000) |
Accounts payable | (5,104,000) | 4,376,000 | 3,997,000 |
Accrued expenses and other current liabilities | (924,000) | 5,893,000 | 14,876,000 |
Deferred revenue | 41,271,000 | 36,646,000 | 51,579,000 |
Contingent consideration paid in excess of original estimates | (2,393,000) | 0 | 0 |
Operating lease liabilities | (7,171,000) | (6,949,000) | (5,153,000) |
Lease incentive receipts | 240,000 | 812,000 | 0 |
Other long-term liabilities | (2,250,000) | 5,841,000 | 0 |
Net cash provided by operating activities | 126,613,000 | 56,013,000 | 80,093,000 |
Cash flows from investing activities | |||
Purchases of marketable securities | (1,343,331,000) | (1,599,945,000) | (1,180,885,000) |
Proceeds from maturities of marketable securities | 1,319,821,000 | 1,392,250,000 | 697,209,000 |
Capitalized software development costs | (21,644,000) | (19,208,000) | (14,536,000) |
Purchases of property and equipment | (5,953,000) | (10,974,000) | (8,729,000) |
Acquisition, net of cash acquired | (11,376,000) | (157,738,000) | 0 |
Net cash used in investing activities | (62,483,000) | (395,615,000) | (506,941,000) |
Cash flows from financing activities | |||
Investment from redeemable non-controlling interest | 0 | 0 | 2,171,000 |
Proceeds from issuance of convertible senior notes, net of issuance costs | 0 | 0 | 1,128,794,000 |
Partial repurchase of convertible senior notes | 0 | 0 | (432,230,000) |
Purchase of capped calls related to convertible senior notes | 0 | 0 | (102,350,000) |
Principal payments under finance lease obligations | (990,000) | (619,000) | (37,000) |
Proceeds from exercises of stock options | 19,762,000 | 4,687,000 | 11,428,000 |
Proceeds from employee stock purchase plan | 8,010,000 | 6,996,000 | 9,020,000 |
Acquisition of common stock for tax withholding obligations | (15,029,000) | (9,544,000) | (17,007,000) |
Financed purchases of property and equipment | 0 | (84,000) | (549,000) |
Payment of contingent consideration for the 2013 Acquisition | (5,607,000) | 0 | 0 |
Net cash provided by financing activities | 6,146,000 | 1,436,000 | 599,240,000 |
Effect of foreign currency exchange rate changes on cash, cash equivalents, and restricted cash | (120,000) | (618,000) | (314,000) |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 70,156,000 | (338,784,000) | 172,078,000 |
Cash, cash equivalents, and restricted cash, beginning of period | 201,207,000 | 539,991,000 | 367,913,000 |
Cash, cash equivalents, and restricted cash, end of period | 271,363,000 | 201,207,000 | 539,991,000 |
Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets | |||
Cash and cash equivalents at end of period | 271,117,000 | 200,968,000 | 539,739,000 |
Restricted cash included within other assets at end of period | 246,000 | 239,000 | 252,000 |
Total cash, cash equivalents, and restricted cash at end of period shown in the consolidated statements of cash flows | 271,363,000 | 201,207,000 | 539,991,000 |
Supplemental disclosures of cash flow information | |||
Cash paid for interest | 313,000 | 313,000 | 506,000 |
Cash paid for income taxes | 3,097,000 | 1,123,000 | 890,000 |
Non-cash financing and investing activities | |||
Adjustment for adoption of ASU 2020-06 | 0 | 262,130,000 | 0 |
Estimated fair value of contingent consideration | 0 | 55,947,000 | 0 |
Stock-based compensation capitalized for software development | 3,481,000 | 2,379,000 | 1,849,000 |
Capitalized software development costs included in accounts payable and accrued expenses and other current liabilities at end of period | 1,510,000 | 1,816,000 | 1,276,000 |
Purchases of property and equipment included in accounts payable and accrued expenses and other current liabilities at end of period | 60,000 | 847,000 | 816,000 |
Leased assets obtained in exchange for new financing lease liabilities | 0 | 1,223,000 | 1,231,000 |
Leased assets obtained in exchange for new operating lease liabilities | 10,438,000 | 3,866,000 | 12,066,000 |
Leasehold improvements paid directly by landlord | $ 271,000 | $ 0 | $ 0 |
The Company
The Company | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company | The Company BlackLine, Inc. and its subsidiaries (the “Company” or “BlackLine”) provide financial accounting close solutions delivered primarily as Software as a Service (“SaaS”). The Company’s solutions enable its customers to address various aspects of their critical processes, including financial close, intercompany accounting, invoice-to-cash, and consolidation. The Company is a holding company and conducts its operations through its wholly-owned subsidiary, BlackLine Systems, Inc. (“BlackLine Systems”). BlackLine Systems funded its business with investments from its founder and cash flows from operations until September 3, 2013, when the Company acquired BlackLine Systems, and Silver Lake Sumeru and Iconiq acquired a controlling interest in the Company, which is referred to as the “2013 Acquisition.” On September 12, 2023, the Company acquired Data Interconnect (“DI”), hereinafter referred to as the “DI Acquisition”. DI is a cloud-based Invoice-to-Cash automation vendor within the electronic invoice presentment and payment (“EIPP”) market. The primary purpose of the DI Acquisition was to enhance the Company's existing accounts receivable automation solution by adding EIPP capabilities. This acquisition was not a significant acquisition under Regulation S-X. On January 26, 2022, the Company acquired FourQ Systems, Inc. (“FourQ”), hereinafter referred to as the “FourQ Acquisition.” The primary purpose of the FourQ Acquisition was to enhance our existing intercompany accounting automation capabilities by driving end-to-end automation of traditionally manual intercompany accounting processes. The purchase accounting allocation was finalized during the quarter ended March 31, 2023. Refer to the Annual Report on Form 10-K for the fiscal year ended December 31, 2022, which was filed with the Securities and Exchange Commission (“SEC”) on February 23, 2023 for additional information. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of consolidation and basis of presentation The accompanying consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the operating results of its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated on consolidation. Use of estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management evaluates its estimates, primarily those related to determining the stand-alone selling price for separate deliverables in the Company’s subscription revenue arrangements, allowance for doubtful accounts, cancellations and credits, fair value of assets and liabilities assumed in a business combination, recoverability of goodwill and long-lived assets, useful lives associated with long-lived assets and right-of-use assets, income taxes, contingencies, fair value of contingent consideration, fair value of the convertible senior notes (the “Notes”) issued in August 2019 and March 2021, redemption value of redeemable non-controlling interest, and the valuation and assumptions underlying stock-based compensation. These estimates are based on historical data and experience, as well as various other factors that management believes to be reasonable under the circumstances. Actual results could differ from those estimates. The Company assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to the Company at December 31, 2023 and through the date of this report. The accounting matters assessed included, but were not limited to, the Company’s valuation of contingent consideration, the allowance for credit losses, and the carrying value of goodwill and other long-lived assets. While there was not a material impact to the Company’s consolidated financial statements for the year ended December 31, 2023, the Company’s future assessment of these accounting matters and other factors could result in material impacts to the Company’s consolidated financial statements in future reporting periods. Segments Management has determined that the Company has one operating segment. Together, our Chief Executive Officers are the chief operating decision maker and review the financial information on a consolidated and aggregate basis, together with certain operating metrics principally to make decisions about how to allocate resources and to measure the Company’s performance. Concentration of credit risk and significant customers Financial instruments that potentially subject the Company to a significant concentration of credit risk consist of cash and cash equivalents, investments in marketable securities and accounts receivable. The Company maintains the majority of its cash balances with one major commercial bank in interest-bearing accounts, which exceeds the Federal Deposit Insurance Corporation, or FDIC, federally insured limits. The Company invests its excess cash in money market mutual funds, commercial paper, U.S. treasury securities, corporate bonds, and U.S. government agencies with two major investment banks. To date, the Company has not experienced any impairment losses on its investments. For the years ended December 31, 2023, 2022, and 2021, no single customer comprised 10% or more of the Company’s total revenues. No single customer had an accounts receivable balance of 10% or greater of total accounts receivable at December 31, 2023 or 2022. Cash and cash equivalents The Company considers all highly liquid investments with an original or remaining maturity of three months or less at the date of purchase to be cash equivalents. Cash includes cash held in checking and savings accounts. Cash equivalents are comprised of investments in money market mutual funds, commercial paper, U.S. treasury securities, corporate bonds, and U.S. government agencies. The carrying value of cash and cash equivalents approximates fair value. Restricted cash Included in other assets and prepaid expenses and other current assets was $0.2 million and $0.2 million of restricted cash at December 31, 2023 and 2022, respectively. The cash was required to be restricted for use by the Company’s office leaseholder to collateralize a standby letter of credit. Investments in marketable securities The Company periodically assesses its portfolio of marketable securities for impairment. For debt securities in an unrealized loss position, this assessment first takes into account the Company’s intent to sell, or whether it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of these criteria are met, the debt security’s amortized cost basis is written down to fair value through other income (expense), net. For debt securities in an unrealized loss position that do not meet the aforementioned criteria, the Company assesses whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and any adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss may exist, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses will be recorded through other income (expense), net, limited by the amount that the fair value is less than the amortized cost basis. Any additional impairment not recorded through an allowance for credit losses is recognized in accumulated other comprehensive loss in the consolidated statements of stockholders’ equity. Changes in the allowance for credit losses are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the allowance when the Company believes the uncollectibility of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. The Company has not recorded any credit losses for the year ended December 31, 2023. The Company has not recorded any impairment charges for unrealized losses in the periods presented. Accounts receivable and credit losses Accounts receivable are recorded and carried at the original invoiced amount less an allowance for any potential uncollectible amounts. The Company makes estimates of expected credit losses and cancellations and credits based upon its assessment of various factors, including historical experience, the age of the accounts receivable balances, credit quality of its customers, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect its ability to collect from customers. The estimated credit loss allowance is recorded as general and administrative expenses, while the estimated credit loss allowance for cancellations and credits is recorded as a reduction in revenue on the consolidated statements of operations. Leases The Company has leases for office space, equipment, and data centers. The Company determines whether an arrangement is a lease, or contains a lease, at inception if the Company is both able to identify an asset and can conclude it has the right to control the identified asset for a period of time. Leases are included in property and equipment, operating lease right-of-use (“ROU”) assets, finance lease liabilities, and operating lease liabilities on the Company’s consolidated balance sheets. The Company has made accounting policy elections, including a short-term lease exception policy, permitting the Company to not apply the recognition requirements of this standard to short-term leases (i.e. leases with expected terms of 12 months or less), and an accounting policy to account for lease and certain non-lease components as a single component for certain classes of assets. The portfolio approach, which allows a lessee to account for its leases at a portfolio level, was elected for certain equipment leases in which the difference in accounting for each asset separately would not have been materially different from accounting for the assets as a combined unit. Finance lease assets and operating lease ROU assets represent the Company's right to control an underlying asset for the lease term. Finance lease liabilities and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease, both of which are recognized at commencement date based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date or remeasurement date to determine the discount rate used to present value lease payments for finance and operating leases. The incremental borrowing rate used is estimated based on what the Company would be required to pay for a collateralized loan over a similar term. Additionally, the Company generally uses the portfolio approach when applying the discount rate selected based on the dollar amount and term of the obligation. The Company’s leases typically do not include any residual value guarantees, bargain purchase options, or asset retirement obligations. The Company’s lease terms are only for periods in which it has enforceable rights. The Company generally uses the base, non-cancellable lease term when determining the lease assets and liabilities. A lease is no longer enforceable when both the lessee and the lessor each have the right to terminate the lease without permission from the other party with no more than an insignificant penalty. The Company’s lease terms are impacted by options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company’s agreements may contain variable lease payments. The Company includes variable lease payments that depend on an index or a rate and excludes those which depend on facts or circumstances occurring after the commencement date, other than the passage of time. Additionally, for certain equipment leases, the Company applies a portfolio approach to effectively account for the lease assets and liabilities. Judgment is required when determining whether any of the Company’s data center contracts contain a lease. The Company concluded a lease exists when the asset is specifically identifiable, substantially all the economic benefit of the asset is obtained, and the right to direct the use of the asset exists during the term of the lease. Property and equipment Property and equipment is stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which is generally three Capitalized internal-use software costs The Company capitalizes certain costs in the development of its SaaS subscription solution when (i) the preliminary project stage is completed, (ii) management has authorized further funding for the completion of the project, and (iii) it is probable that the project will be completed and performed as intended. These capitalized costs include personnel and related expenses for employees and costs of third-party contractors who are directly associated with and who devote time to internal-use software projects. Capitalization of these costs ceases once the project is substantially complete and the software is ready for its intended purpose. Costs incurred for significant upgrades and enhancements to the Company’s SaaS software solutions are also capitalized. Costs incurred for training, maintenance and minor modifications or enhancements are expensed as incurred. Capitalized software development costs are amortized using the straight-line method over an estimated useful life of three years. During the years ended December 31, 2023, 2022, and 2021, the Company amortized $19.1 million, $13.6 million, and $9.0 million, respectively, of internal-use software development costs to subscription and support cost of revenues. At December 31, 2023 and 2022, the accumulated amortization of capitalized internal-use software development costs was $60.6 million and $41.6 million, respectively. The Company capitalizes certain implementation costs incurred in a hosting arrangement that is a service contract. These capitalized costs exclude training costs, project management costs, and data migration costs. Capitalized software implementation costs are amortized using the straight-line method over the terms of the associated hosting arrangements. Intangible assets Intangible assets primarily consist of developed technology, customer relationships, and trade names, which were acquired as part of purchase business combinations, as well as a defensive patent that was acquired through a purchase agreement. The Company determines the appropriate useful life of its intangible assets by performing an analysis of expected cash flows of the acquired assets. Intangible assets are amortized on a straight-line basis over their estimated useful lives, ranging from one Impairment of long-lived assets Management evaluates the recoverability of the Company’s property and equipment, finite-lived intangible assets and capitalized internal-software costs when events or changes in circumstances indicate a potential impairment exists. Events and changes in circumstances considered by the Company in determining whether the carrying value of long-lived assets may not be recoverable include, but are not limited to, significant changes in performance relative to expected operating results, significant changes in the use of the assets, significant negative industry or economic trends, and changes in the Company’s business strategy. Impairment testing is performed at an asset level that represents the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities (an “asset group”). In determining if impairment exists, the Company estimates the undiscounted cash flows to be generated from the use and ultimate disposition of the asset group. If the undiscounted cash flows for the asset group are less than its net book value, an impairment loss is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. For the years ended December 31, 2023, 2022, and 2021, we recognized charges for the impairment of cloud computing implementation costs of zero, $5.3 million, and zero, respectively. Business combinations The results of businesses acquired in business combinations are included in the Company’s consolidated financial statements from the date of the acquisition. Purchase accounting results in assets and liabilities of an acquired business generally being recorded at their estimated fair values on the acquisition date. Any excess consideration over the fair value of assets acquired and liabilities assumed is recognized as goodwill. Transaction costs associated with business combinations are expensed as incurred and are included in general and administrative expenses in the consolidated statements of operations. The Company performs valuations of assets acquired and liabilities assumed and allocates the purchase price to its respective assets and liabilities. Determining the fair value of the identifiable assets acquired, and liabilities assumed, and the contingent consideration liability requires management to use significant judgment and estimates, including the selection of valuation methodologies, estimates of future revenue, costs and cash flows, discount rates, and selection of comparable companies. The Company engages the assistance of valuation specialists in concluding on fair value measurements in connection with determining fair values of assets acquired and liabilities assumed in a business combination. Goodwill Goodwill represents the excess of the purchase price over the fair value of net assets acquired in a business combination. Goodwill is tested for impairment at least annually at the reporting unit level or whenever events or changes in circumstances indicate that goodwill might be impaired. Events or changes in circumstances which could trigger an impairment review include a significant adverse change in legal factors or in the business climate, unanticipated competition, loss of key personnel, significant changes in the use of the acquired assets or the Company’s strategy, significant negative industry or economic trends, or significant underperformance relative to expected historical or projected future results of operations. An entity has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then additional impairment testing is not required. However, if an entity concludes otherwise, then it is required to perform an impairment test. The first step involves comparing the estimated fair value of a reporting unit with its book value, including goodwill. If the estimated fair value exceeds book value, goodwill is considered not to be impaired and no additional steps are necessary. If, however, the fair value of the reporting unit is less than book value, then an impairment charge is recorded for the difference between the reporting unit’s fair value and carrying amount, not to exceed the carrying amount of the goodwill. The Company has one reporting unit, and it tests its goodwill for impairment annually, during the fourth quarter of the calendar year. At December 31, 2023 and 2022, the Company used the quantitative approach to perform its annual goodwill impairment test. The fair value of the Company's reporting unit significantly exceeded the carrying value of its net assets and, accordingly, goodwill was not impaired. Redeemable non-controlling interest The Company's Japanese subsidiary (“BlackLine K.K.”) is not wholly owned. The agreements with the minority investors of BlackLine K.K. contain redemption features whereby the interest held by the minority investors are redeemable either (i) at the option of the minority investors or (ii) at the option of the Company, both beginning on the seventh anniversary of the initial capital contribution. If the interest of the minority investors were to be redeemed under these agreements, the Company would be required to redeem the interest based on a prescribed formula derived from the relative revenue of BlackLine K.K. and the Company. The balance of the redeemable non-controlling interest is reported at the greater of the initial carrying amount adjusted for the redeemable non-controlling interest's share of earnings or losses and other comprehensive income or loss, or its estimated redemption value. The resulting changes in the estimated redemption amount (increases or decreases) are recorded with corresponding adjustments against retained earnings or, in the absence of retained earnings, additional paid-in capital. These interests are presented on the consolidated balance sheets outside of equity under the caption “Redeemable non-controlling interest.” Convertible senior notes The Company accounts for the issued Notes as a liability at face value less unamortized debt issuance costs. The debt issuance costs are being amortized to expense over the respective term of the Notes. To the extent that the Company receives conversion requests prior to the maturity of the Notes, upon settlement of the conversion requests, the difference between the fair value and the amortized book value of the Notes requested for conversion is recorded as a gain or loss on early conversion. The fair value of the Notes are measured based on a similar liability that does not have an associated convertible feature based on the remaining term of the Notes, which requires significant judgment. Restructuring costs The Company records a charge for restructuring when management commits to a restructuring plan, the restructuring plan identifies all significant actions, the period of time to complete the restructuring plan indicates that significant changes to the restructuring plan are not likely, and employees who are impacted have been notified of the pending involuntary termination. Fair value of financial instruments ASC 820, Fair Value Measurement, requires entities to disclose the fair value of financial instruments, both assets and liabilities recognized and not recognized on the balance sheet, for which it is practicable to estimate fair value. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. ASC 820 describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value, which are the following: Level 1: Quoted prices in active markets for identical or similar assets and liabilities. Level 2: Quoted prices for identical or similar assets and liabilities in markets that are not active or observable inputs other than quoted prices in active markets for identical or similar assets or liabilities. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. At December 31, 2023 and 2022, the carrying values of cash equivalents, accounts receivable, accounts payable, and accrued expenses approximate their fair values due to the short-term nature of such instruments. Contingent consideration related to acquisitions is recorded at fair value as a liability on the acquisition date and is remeasured at each reporting date, based on significant inputs not observable in the market, which represents a Level 3 measurement within the fair value hierarchy. The valuation of contingent consideration uses assumptions management believes would be made by a market participant. Management assesses these estimates on an ongoing basis as additional data impacting the assumptions becomes available. Changes in the fair value of contingent consideration related to updated assumptions and estimates are recognized within general and administrative expenses in the consolidated statements of operations. To determine the fair value of the contingent consideration related to the FourQ Acquisition, management utilized a Monte Carlo simulation model to value the earnout based on the likelihood of reaching firm-specific targets. Significant inputs used in the fair value measurement of contingent consideration are 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, as well as the discount rate. Certain assets, including goodwill and long-lived assets, are also subject to measurement at fair value on a non-recurring basis if they are deemed to be impaired as a result of an impairment review. For the years ended December 31, 2023, 2022, and 2021, we recognized charges for the impairment of cloud computing implementation costs of zero, $5.3 million, and zero, respectively. Revenue recognition Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. The Company enters into contracts that can include various combinations of subscription and support services and professional services, which are generally capable of being distinct and accounted for as separate performance obligations. The Company’s agreements do not contain any refund provisions other than in the event of the Company’s non-performance or breach. The Company determines revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer; • Identification of performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to performance obligations in the contract; and • Recognition of revenue when, or as, performance obligations are satisfied. The Company recognizes revenue net of any applicable value added or sales tax. Subscription and support revenue – Customers pay subscription and support fees for access to the Company’s SaaS platform. Our subscription contracts have initial terms of one year to three years with renewal options. Fees are based on a number of factors, including the solutions subscribed for by the customer and the number of users having access to the solutions. Subscription services, which includes support, is recognized on a straight-line basis over the non-cancellable contractual term of the arrangement, generally beginning on the date that the Company’s service is made available to the customer. Subscription and support revenue also includes software and related maintenance and support fees on perpetual licenses. Revenues from perpetual licenses are recognized immediately at the time the Company provides the customer with a right to use the software as it exists when made available to the customer. Customers may have purchased perpetual licenses or term-based licenses, which provide customers with the same functionality and differ mainly in the duration over which the customer benefits from the software. Professional services revenue – Professional services consist of implementation and consulting services to assist the Company’s customers as they deploy our solutions. These services are considered distinct performance obligations. Professional services do not result in significant customization of the subscription service. The Company applies the practical expedient to recognize professional services revenue when it has the right to invoice based on time and materials incurred. The Company applies the optional exemption and has excluded the variable consideration from the disclosure of remaining performance obligations. Contracts with Multiple Performance Obligations – The Company’s contracts with customers often contain multiple performance obligations. For these contracts, the Company accounts for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price (“SSP”) basis. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together, as well as the determination of SSP for each distinct performance obligation, may require significant judgment. The Company typically has more than one SSP for its SaaS solutions and professional services. Additionally, management has determined that there are no third-party offerings reasonably comparable to the Company’s solutions. Therefore, the Company determines the SSPs of subscriptions to the SaaS solutions and professional services based on numerous factors including the Company’s overall pricing objectives, geography, customer size, number of users, and discounting practices. The Company uses historical maintenance renewal fees to estimate SSP for maintenance and support fees bundled with software licenses. The Company uses the residual method to estimate SSP of software licenses, because license pricing is highly variable and not sold separately from maintenance and support. Contract balances – Timing of revenue recognition may differ from the timing of invoicing to customers. The Company records an unbilled receivable when revenue is recognized prior to invoicing, and deferred revenue when revenue is recognized subsequent to invoicing. The Company generally invoices customers annually at the beginning of each annual contract period. Deferred revenue is comprised mainly of billings in advance of revenue being recognized related to the Company’s subscription and support services and professional services arrangements. Changes in deferred revenue for the years ended December 31, 2023, 2022, and 2021 were primarily due to additional billings in the periods, partially offset by revenue recognized of $274.3 million, $239.9 million, and $189.6 million, respectively, that was previously included in the deferred revenue balance at December 31, 2022, 2021, and 2020, respectively. The transaction price is generally determined by the stated fixed fees in the contract, excluding any related sales taxes. Transaction price allocated to remaining performance obligations represents contracted revenue that has not yet been recognized (“contracted not recognized”), which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. Contracted not recognized revenue was $842.7 million at December 31, 2023, of which the Company expects to recognize approximately 57.3% over the next 12 months and the remainder thereafter. Fees are generally due and payable within 30 days. None of the Company’s contracts include a significant financing component. Assets recognized from the costs to obtain a contract with a customer – The Company recognizes an asset for the incremental and recoverable costs of obtaining a contract with a customer if the Company expects the benefit of those costs to be one year or longer. The Company has determined that certain sales incentive programs to the Company’s employees (“deferred customer contract acquisition costs”) and its partners (“partner referral fees”) meet the requirements to be capitalized. Deferred customer acquisition costs related to new revenue contracts and upsells are deferred and then amortized on a straight-line basis over the expected period of benefit, which the Company has determined to be five years, based upon both the product turnover rate and estimated customer life. The Company enters into partnership arrangements where partner referral fees are paid either on the initial contract or on both the initial contract and renewal of the contract. The Company assesses whether the renewal fee is commensurate with the initial fee. When the renewal fee is commensurate with the initial fee, the Company amortizes the deferred costs over the initial year of the contract. Otherwise, the initial fee is amortized over five years. Deferred customer acquisition costs and partner referral fees are included within other assets on the consolidated balance sheets. There were no impairment losses in relation to the costs capitalized for the periods presented. Amortization expense related to the asset recognized from the costs to obtain a contract with a customer is included in sales and marketing expenses in the consolidated statements of operations and was $34.1 million, $29.7 million, and $22.4 million for the years ended December 31, 2023, 2022, and 2021, respectively. Cost of revenues Cost of revenues primarily consists of costs related to hosting the Company’s cloud-based application suite, salaries and benefits of operations and support personnel, including stock-based compensation, professional fees, and amortization of capitalized internal-use software costs. The Company allocates a portion of overhead, such as rent, information technology costs and depreciation and amortization to cost of revenues. Costs associated with providing professional services are expensed as incurred when the services are performed. In additio |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues The Company disaggregates its revenue from contracts with customers by geographic location, as it believes it best depicts how the nature, amount, timing, and uncertainty of its revenues and cash flows are affected by economic factors. The following table sets forth the Company’s revenues by geographic region (in thousands): Year Ended December 31, 2023 2022 2021 United States $ 422,192 $ 373,423 $ 304,603 International 167,804 149,515 121,103 $ 589,996 $ 522,938 $ 425,706 No countries outside the U.S. represented 10% or more of total revenues. |
Redeemable Non-Controlling Inte
Redeemable Non-Controlling Interest | 12 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Redeemable Non-Controlling Interest | Redeemable Non-Controlling Interest In September 2018, the Company entered into an agreement with Japanese Cloud Computing and M30 LLC (the “Investors”) to engage in the investment, organization, management, and operation of BlackLine K.K. that is focused on the sale of the Company's products in Japan. In October 2018, the Company initially contributed approximately $4.5 million in cash in exchange for 51% of the outstanding common stock of BlackLine K.K. In November 2021, the Company made a further investment in BlackLine K.K. of $2.3 million that, including additional investments in BlackLine K.K. of $2.2 million by existing third-party investors in November 2021, maintained the Company's majority ownership of 51%. As the Company continues to control a majority stake in BlackLine K.K., the entity has been consolidated. All of the common stock held by the Investors is callable by the Company or puttable by the Investors upon certain contingent events. Should the call or put option be exercised, the redemption value will be determined based upon a prescribed formula derived from the discrete revenues of BlackLine K.K. and the Company, and may be settled, at the Company’s discretion, with Company stock or cash. As a result of the put right available to the Investors in the future, the redeemable non-controlling interest in BlackLine K.K. is classified outside of permanent equity in the Company’s consolidated balance sheets, and the balance is reported at the greater of the initial carrying amount adjusted for the redeemable non-controlling interest's share of earnings, or its estimated redemption value. The resulting changes in the estimated redemption amount are recorded within retained earnings or, in the absence of retained earnings, additional paid-in capital. Activity in the redeemable non-controlling interest was as follows (in thousands): December 31, 2023 2022 2021 Balance at beginning of period $ 23,895 $ 28,699 $ 12,524 Investment by redeemable non-controlling interest — — 2,171 Net income (loss) attributable to redeemable non-controlling interest (excluding adjustment to non-controlling interest) 892 (369) (910) Foreign currency translation (58) (304) (163) Adjustment to redeemable non-controlling interest 5,334 (4,131) 15,077 Balance at end of period $ 30,063 $ 23,895 $ 28,699 |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2023 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations Acquisition of Data Interconnect On September 12, 2023, the Company completed the DI Acquisition for cash consideration of $11.4 million, which was paid at the closing of the acquisition. The DI Acquisition enhances the Company's existing accounts receivable automation solution capabilities through EIPP. Transaction-related costs, which include, but are not limited to, accounting, legal, and advisory fees related to the transaction, incurred by the Company totaling approximately $1.2 million were expensed as incurred during the year ended December 31, 2023. The Company accounted for the transaction as a business combination using the acquisition method of accounting. The total purchase price was allocated to the tangible and identifiable intangible assets acquired and liabilities assumed based on their respective estimated fair values on the acquisition date. The purchase price allocation was finalized as of the filing date of this Annual Report on Form 10-K. The purchase consideration and major classes of assets and liabilities to which the Company allocated the total fair value of purchase consideration of $11.4 million were as follows (in thousands): Cash consideration $ 11,394 Post-acquisition working capital adjustment 9 Total cash purchase consideration $ 11,403 Cash and cash equivalents $ 27 Accounts receivable, net 916 Prepaid expenses and other current assets 893 Property and equipment, net 49 Intangible assets, net 8,800 Goodwill 5,104 Operating lease right-of-use assets 402 Other assets 58 Accounts payable (665) Accrued expenses and other current liabilities (1,570) Deferred revenue, current (98) Operating lease liabilities (402) Deferred tax liabilities, net (2,111) Total consideration $ 11,403 The Company believes the amount of goodwill resulting from the acquisition is primarily attributable to increased offerings to customers and enhanced opportunities for growth and innovation. The goodwill resulting from the acquisition is not tax deductible. To determine the estimated fair value of intangible assets acquired, the Company engaged a third-party valuation specialist to assist management. All estimates, key assumptions, and forecasts were either provided by, or reviewed by, the Company. While the Company chose to utilize a third-party valuation specialist for assistance, the fair value analysis and related valuations reflect the conclusions of the Company and not those of any third party. The fair value measurements of the intangible assets were based primarily on significant unobservable inputs and thus represent a Level 3 measurement as defined in ASC 820. The acquired intangible asset categories, fair value, and amortization periods, were as follows: Amortization Period Fair Value (in years) (in thousands) Developed technology 5 $ 8,110 Customer relationships 3 690 $ 8,800 The weighted average lives of intangible assets at the acquisition date was 4.8 years. The estimated fair value of developed technology and customer relationships acquired of $8.1 million and $0.7 million, respectively, was determined through the use of a third-party valuation firm using the cost approach methodology. The cost approach considers the cost to replace (or reproduce) the assets and the effects on the assets' values of functional and/or economic obsolescence that has occurred with respect to the asset. The direct transaction costs of the acquisition were accounted for separately from the business combination and expensed as incurred. The revenue and earnings of the acquired business were included in the Company’s results since the acquisition date and have not been presented separately using pro forma revenues and results of operations as its impact is not material to the Company’s consolidated financial statements for the periods presented. FourQ Systems, Inc. On January 26, 2022, the Company completed the FourQ Acquisition for cash consideration of $160.2 million payable at the closing of the acquisition. In addition, contingent cash consideration of up to $73.2 million is payable upon certain earnout conditions being met. The FourQ Acquisition enhances the Company's existing intercompany accounting automation capabilities by driving end-to-end automation of traditionally manual intercompany accounting processes. The Company incurred transaction-related costs, which include, but are not limited to, fees for accounting, legal, and advisory services of $3.4 million during the year ended December 31, 2022. The transaction-related costs were expensed as incurred. The contingent consideration was classified as a liability and included in contingent consideration on the accompanying consolidated balance sheet. It is remeasured on a recurring basis at fair value. To estimate the fair value of the contingent consideration liability, management utilized a Monte Carlo simulation model to value the earnout based on the likelihood of reaching firm-specific targets. Significant inputs used in the fair value measurement of contingent consideration are the amount and timing of new and incremental combined intercompany bookings from FourQ and BlackLine, and revenues from a specified FourQ customer over a three-year period subsequent to the acquisition date. At January 26, 2022, the fair value of the contingent consideration liability was $55.9 million. See “Note 16 - Contingent Consideration” for additional information regarding the valuation of the contingent consideration at December 31, 2023. The Company accounted for the transaction as a business combination using the acquisition method of accounting. The total purchase price was allocated to the tangible and identifiable intangible assets acquired and liabilities assumed based on their respective estimated fair values on the acquisition date. The purchase consideration and major classes of assets and liabilities to which the Company allocated the total fair value of purchase consideration of $214.2 million are considered final. The following table presents the final allocation of the purchase price (in thousands): Cash consideration $ 160,224 Post-acquisition working capital adjustment (635) Contingent consideration 55,947 Less: One-time expense related to accelerated vesting (1,322) Purchase consideration $ 214,214 Cash and cash equivalents $ 1,164 Accounts receivable, net 1,853 Prepaid expenses and other current assets 410 Other assets 143 Property and equipment 659 Intangible assets 74,400 Goodwill 154,151 Accounts payable (1,537) Accrued liabilities (2,585) Deferred revenue (231) Deferred tax liabilities, net (14,213) Total consideration $ 214,214 The Company believes the amount of goodwill resulting from the acquisition is primarily attributable to increased offerings to customers, and enhanced opportunities for growth and innovation. The goodwill resulting from the acquisition is not tax deductible. To determine the estimated fair value of intangible assets acquired, the Company engaged a third-party valuation specialist to assist management. All estimates, key assumptions, and forecasts were either provided by, or reviewed by the Company. While the Company chose to utilize a third-party valuation specialist for assistance, the fair value analysis and related valuations reflect the conclusions of the Company and not those of any third party. The fair value measurements of the intangible assets were based primarily on significant unobservable inputs and thus represent a Level 3 measurement as defined in ASC 820. The acquired intangible asset categories, fair value, and amortization periods, were as follows: Amortization Period Fair Value (in years) (in thousands) Developed technology 7 $ 64,900 Customer relationships 3 9,500 $ 74,400 The weighted average lives of intangible assets at the acquisition date was 6.5 years. The identified intangible assets, developed technology and customer relationships, were valued as follows: Developed technology – The Company valued the finite-lived developed technology using the multi-period excess earnings model under the income approach. This method estimates an intangible asset’s value based on the 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. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Intangible Assets and Goodwill The carrying value of intangible assets was as follows (in thousands): December 31, 2023 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Trade name $ 15,977 $ (15,977) $ — Developed technology 137,368 (66,900) 70,468 Customer relationships 26,779 (19,342) 7,437 Defensive patent 2,333 (1,182) 1,151 $ 182,457 $ (103,401) $ 79,056 December 31, 2022 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Trade name $ 15,977 $ (14,913) $ 1,064 Developed technology 129,258 (54,462) 74,796 Customer relationships 26,089 (12,552) 13,537 Defensive patent 2,333 (866) 1,467 $ 173,657 $ (82,793) $ 90,864 Amortization expense is included in the following functional statements of operations expense categories. Amortization expense was as follows (in thousands): Year Ended December 31, 2023 2022 2021 Cost of revenues $ 12,438 $ 11,315 $ 2,685 Sales and marketing 6,791 6,505 5,883 General and administrative 1,379 1,911 1,911 $ 20,608 $ 19,731 $ 10,479 The following table presents the Company’s estimate of remaining amortization expense for each of the five succeeding fiscal years and thereafter for finite-lived intangible assets at December 31, 2023 (in thousands): 2024 $ 19,872 2025 14,011 2026 13,597 2027 13,075 2028 12,412 Thereafter 6,089 $ 79,056 The following table represents the changes in goodwill (in thousands): Balance at December 31, 2021 $ 289,710 Additions from acquisitions 154,151 Balance at December 31, 2022 443,861 Additions from acquisitions 5,104 Balance at December 31, 2023 $ 448,965 |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 31, 2023 | |
Regulated Operations [Abstract] | |
Balance Sheet Components | Balance Sheet Components Investments in Marketable Securities Investments in marketable securities presented within current assets on the consolidated balance sheets consisted of the following (in thousands): December 31, 2023 Amortized Gross Gross Fair Value Marketable securities U.S. treasury securities $ 523,344 $ 737 $ (107) $ 523,974 Commercial paper 241,428 1 — 241,429 U.S. government agencies 168,078 2 (128) 167,952 $ 932,850 $ 740 $ (235) $ 933,355 December 31, 2022 Amortized Gross Gross Fair Value Marketable securities U.S. treasury securities $ 418,941 $ 9 $ (1,047) $ 417,903 Corporate bonds 64,597 3 (296) 64,304 Commercial paper 278,406 — — 278,406 U.S. government agencies 113,512 40 (82) 113,470 $ 875,456 $ 52 $ (1,425) $ 874,083 The Company’s marketable securities as of December 31, 2023, have a contractual maturity of less than two years. All of our available-for-sale securities are available for use in our current operations and are categorized as current assets even though the stated maturity of some individual securities may be one year or more beyond the balance sheet date. The fair values of available-for-sale securities, by remaining contractual maturity, were as follows (in thousands): December 31, 2023 Amortized Cost Fair Value Maturing within 1 year $ 906,556 $ 907,107 Maturing between 1 and 2 years 26,294 26,248 $ 932,850 $ 933,355 Refer to “Note 8 - Fair Value Measurements” for additional information. Net gains and losses related to maturities of marketable securities that were reclassified from accumulated other comprehensive loss to earnings and included in interest income in the accompanying consolidated statements of operations, were $33.9 million for the year ended December 31, 2023, $8.9 million for the year ended December 31, 2022, and immaterial for the year ended December 31, 2021. Net gains and losses are determined using the specific identification method. During the years ended December 31, 2023, 2022, and 2021, there were no realized gains or losses related to sales of marketable securities recognized in the Company's accompanying consolidated statements of operations. Marketable securities in a continuous loss position for less than 12 months had an estimated fair value of $286.6 million and $521.8 million, and unrealized losses of $0.2 million and $1.4 million at December 31, 2023 and 2022, respectively. There were no marketable securities in a continuous loss position for greater than 12 months at December 31, 2023 and 2022, respectively. The Company's marketable securities are considered to be of high credit quality and accordingly, there was no allowance for credit losses related to marketable securities as of December 31, 2023 or 2022. Other Assets Deferred customer contract acquisition costs are included in other assets in the accompanying consolidated balance sheets and totaled $89.9 million and $89.1 million at December 31, 2023 and 2022, respectively. Long-lived assets used in operations are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable and the undiscounted cash flows estimated to be generated by the asset are less than the asset’s carrying value. During the years ended December 31, 2023 and 2022, charges for the impairment of cloud computing implementation costs were zero and $5.3 million, respectively. The impairment charges were determined based on actual costs incurred. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities were comprised of the following (in thousands): December 31, 2023 2022 Accrued salaries and employee benefits $ 33,344 $ 39,043 Accrued income and other taxes payable 9,408 9,415 Accrued restructuring costs 1,569 1,737 Other accrued expenses and current liabilities 15,369 8,405 $ 59,690 $ 58,600 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis by level, within the fair value hierarchy. Financial assets and financial liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement (in thousands): December 31, 2023 Level 1 Level 2 Level 3 Total Cash equivalents Money market funds $ 148,298 $ — $ — $ 148,298 Commercial paper — 38,926 — 38,926 U.S. government agencies — 19,987 — 19,987 Marketable securities U.S. treasury securities 523,974 — — 523,974 Commercial paper — 241,429 — 241,429 U.S. government agencies — 167,952 — 167,952 Total assets $ 672,272 $ 468,294 $ — $ 1,140,566 Liabilities Contingent consideration $ — $ — $ — $ — Total liabilities $ — $ — $ — $ — December 31, 2022 Level 1 Level 2 Level 3 Total Cash equivalents Money market funds $ 101,919 $ — $ — $ 101,919 Commercial paper — 59,405 — 59,405 Marketable securities U.S. treasury securities 417,903 — — 417,903 Corporate bonds — 64,301 — 64,301 Commercial paper — 278,406 — 278,406 U.S. government agencies — 113,471 — 113,471 Total assets $ 519,822 $ 515,583 $ — $ 1,035,405 Liabilities Contingent consideration $ 8,000 $ — $ 33,549 $ 41,549 Total liabilities $ 8,000 $ — $ 33,549 $ 41,549 The following table summarizes the changes in the contingent consideration liability (in thousands): Year Ended December 31, 2023 2022 2021 Beginning fair value $ 41,549 $ 20,732 $ 23,490 Additions in the period — 55,947 — Payments in the period (8,000) — — Change in fair value (33,549) (35,130) (2,758) Ending fair value $ — $ 41,549 $ 20,732 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment, net consisted of the following (in thousands): December 31, 2023 2022 Computers and equipment $ 22,396 $ 22,324 Purchased software 14,007 12,519 Furniture and fixtures 4,197 4,051 Leasehold improvements 16,198 14,943 Data center equipment - finance lease 1,231 1,231 Building - finance lease 1,219 1,219 Construction in progress — 121 Property and equipment, gross 59,248 56,408 Less: accumulated depreciation and amortization (44,381) (36,597) Property and equipment, net $ 14,867 $ 19,811 Depreciation and amortization expense related to property and equipment was $10.4 million, $9.5 million, and $7.6 million for the years ended December 31, 2023, 2022, and 2021, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Lessee Disclosure [Abstract] | |
Leases | Leases The Company has entered into various operating and finance lease agreements for office space and data centers. As of December 31, 2023, the Company had 18 leased properties with remaining lease terms of less than one year to eleven years, some of which include options to extend the leases up to nine years, and some of which include options to terminate the leases within one year. The components of the lease expense recorded in the consolidated statements of operations were as follows (in thousands): Year Ended December 31, 2023 2022 2021 Finance lease cost: Amortization of assets $ 1,020 $ 652 $ 46 Interest on lease liabilities 45 44 3 Operating lease cost 6,663 5,767 4,792 Short-term lease cost 378 388 336 Variable cost 1,237 1,190 741 Total lease cost $ 9,343 $ 8,041 $ 5,918 Cash flow and other information related to leases was as follows (in thousands, except percentages): Year Ended December 31, 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Financing cash flows from finance leases $ 1,036 $ 662 $ 15 Operating cash flows from operating lease liabilities $ 7,467 $ 5,338 $ 5,390 Weighted average remaining lease term at end of period (in years): Finance leases 0.8 1.7 2.9 Operating leases 4.2 3.9 4.3 Weighted average discount rate: Finance leases 3.5 % 3.7 % 2.2 % Operating leases 5.7 % 2.8 % 2.3 % Maturities of lease liabilities at December 31, 2023, for each of the five succeeding fiscal years and thereafter, were (in thousands): Finance Leases Operating Leases 2024 $ 787 $ 4,676 2025 4 5,825 2026 — 5,010 2027 — 3,639 2028 — 2,836 Thereafter — 1,073 Total lease payments 791 23,059 Less imputed interest (9) (3,213) Total lease obligations $ 782 $ 19,846 |
Convertible Senior Notes
Convertible Senior Notes | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Convertible Senior Notes | Convertible Senior Notes 2024 Notes In August 2019, the Company issued 0.125% Convertible Senior Notes (the “2024 Notes”) due in 2024 for aggregate gross proceeds of $500.0 million, which included the initial purchasers’ option of $65.0 million aggregate principal amount, in a private placement in reliance on Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”). The resale of the 2024 Notes by the initial purchasers to qualified institutional buyers was exempt from registration pursuant to Rule 144A under the Securities Act. The 2024 Notes were issued pursuant to an indenture between the Company and U.S. Bank National Association, as trustee. Interest on the 2024 Notes is payable semi-annually in cash at a rate of 0.125% per annum on February 1 and August 1 of each year, beginning on February 1, 2020. The 2024 Notes will mature on August 1, 2024, unless redeemed, repurchased, or converted prior to such date in accordance with their terms. Prior to the close of business on the business day immediately preceding May 1, 2024, the 2024 Notes will be convertible only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on December 31, 2020, and only during such calendar quarter, if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price for the 2024 Notes on each applicable trading day; (2) during the five business-day period after any five consecutive trading-day period in which the trading price per $1,000 principal amount of 2024 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the common stock and the conversion rate on each such trading day; (3) if the Company calls any or all of the 2024 Notes for redemption, at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate events set forth in the Indenture. On or after May 1, 2024, until the close of business on the second scheduled trading day immediately preceding the maturity date of the 2024 Notes, holders of the 2024 Notes, at their option, may convert all or any portion of their 2024 Notes regardless of the foregoing conditions. The 2024 Notes have an initial conversion rate of 13.6244 shares of common stock per $1,000 principal amount of 2024 Notes, equivalent to an initial conversion price of approximately $73.40 per share of common stock. The conversion rate is subject to adjustment for certain events. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of its common stock or a combination of cash and shares of its common stock, at its election. If the Company undergoes a fundamental change, as described in the Indenture, prior to the maturity date of the 2024 Notes, holders of the 2024 Notes may require the Company to repurchase all or a portion of the 2024 Notes for cash at a price equal to 100% of the principal amount of the 2024 Notes to be repurchased, plus any accrued and unpaid interest to, but excluding, the fundamental change repurchase date. The Indenture contains customary events of default with respect to the 2024 Notes and provides that upon certain events of default occurring and continuing, the Trustee may, and the Trustee at the request of holders of at least 25% in principal amount of the 2024 Notes shall, declare all principal and accrued and unpaid interest, if any, of the 2024 Notes to be due and payable. In case of certain events of bankruptcy, insolvency or reorganization, involving the Company, all of the principal of, and accrued and unpaid interest on the 2024 Notes will automatically become due and payable. Prior to the adoption of ASU 2020-06 on January 1, 2022, and in connection with the issuance of the 2026 Notes (as defined below) in March 2021, the Company used approximately $432.2 million of the net proceeds to repurchase $250.0 million aggregate principal amount of the 2024 Notes. Management also determined the fair value of the liability component of the 2024 Notes being extinguished. To estimate the fair value of a similar liability that did not have an associated conversion feature, management discounted the contractual cash flows of the 2024 Notes at an estimated interest rate for a comparable non-convertible note. Based on market data available for publicly-traded, senior, unsecured corporate bonds issued by companies in the same industry and with similar maturity, the Company estimated the implied interest rate of its 2024 Notes to be approximately 4.94%. The fair value of the liability portion was then deducted from the amount of consideration transferred and allocated to the liability component. The remaining consideration was allocated to the reacquisition of the equity component of the 2024 Notes and recognized as a reduction of additional paid-in capital in the amount of $219.3 million. The difference between the fair value of the liability and its carrying value was recognized as an extinguishment loss in the amount of $7.0 million. The equity component of the 2024 Notes was not remeasured as it continued to meet the conditions for equity classification for all successive quarters in fiscal 2021. The debt discount was amortized to interest expense over the term of the 2024 Notes using the effective interest method. In connection with the adoption of ASU 2020-06, the Company reclassified the remaining balance of the conversion feature of $55.6 million from additional paid-in capital to convertible debt for $31.1 million and retained earnings for $24.5 million. Accordingly, the Company no longer carries an equity component of the Notes, and no longer incurs non-cash interest expense related to the accretion of the debt discount associated with the embedded conversion option. The 2024 Notes consisted of the following (in thousands): December 31, 2023 2022 Liability: Principal $ 250,000 $ 250,000 Unamortized debt issuance costs (767) (2,069) Net carrying amount (1) $ 249,233 $ 247,931 (1) Net carrying amount as of December 31, 2023 presented within total current liabilities on the consolidated balance sheet. The effective interest rate of the 2024 Notes, excluding the conversion option, remained unchanged at 0.65% for December 31, 2023 and 2022. The Company carries the 2024 Notes at face value less unamortized debt issuance costs on the accompanying consolidated balance sheets and presents the fair value for disclosure purposes only. The estimated fair value was determined based on the actual bids and offers of the 2024 Notes in an over-the-counter market on the last trading day of the period. The estimated fair value of the 2024 Notes, based on a market approach at December 31, 2023 was approximately $255.9 million, which represents a Level 2 valuation. During the year ended December 31, 2023, the Company recognized $1.3 million of interest expense related to the amortization of debt issuance costs and $0.3 million of coupon interest expense. During the year ended December 31, 2022, the Company recognized $1.3 million of interest expense related to the amortization of debt issuance costs and $0.3 million of coupon interest expense. The 2024 Notes were not convertible at December 31, 2023. It is the Company’s current intent to settle conversions of the 2024 Notes through “combination settlement”, which involves repayment of the principal portion in cash and any excess of the conversion value over the principal amount in shares of its common stock. 2026 Notes In March 2021, the Company issued $1.150 billion aggregate gross proceeds, which included the initial purchasers’ option of $150.0 million aggregate principal amount, of 0.00% Convertible Senior Notes due 2026 (the “2026 Notes”) in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act. The 2026 Notes were sold to the initial purchasers pursuant to an exemption from the registration requirements of the Securities Act afforded by Section 4(a) (2) of the Securities Act. The 2026 Notes were issued pursuant to an indenture (the “Indenture”), by and between the Company and U.S. Bank National Association, as trustee (the “Trustee”). The 2026 Notes do not bear regular interest, and the principal amount of the 2026 Notes does not accrete. The 2026 Notes may bear special interest under specified circumstances related to the Company’s failure to comply with its reporting obligations under the Indenture or if the 2026 Notes are not freely tradeable as required by the Indenture. The 2026 Notes will mature on March 15, 2026, unless redeemed, repurchased, or converted prior to such date in accordance with their terms. The initial conversion rate of the 2026 Notes is 6.0156 shares of common stock per $1,000 principal amount of the 2026 Notes, equivalent to an initial conversion price of approximately $166.23 per share of common stock. The conversion rate is subject to adjustment for certain events. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of its common stock, or a combination of cash and shares of its common stock, at its election. It is the Company’s current intent to settle conversions of the 2026 Notes through “combination settlement”, which involves repayment of the principal portion in cash and any excess of the conversion value over the principal amount in shares of its common stock. Prior to the close of business on the business day immediately preceding December 15, 2025, the 2026 Notes will be convertible only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on June 30, 2021, and only during such calendar quarter, if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) in a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price for the 2026 Notes on each applicable trading day; (2) during the five business-day period after any five consecutive trading-day period in which the trading price per $1,000 principal amount of 2026 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the common stock and the conversion rate on each such trading day; (3) if the Company calls any or all of the 2026 Notes for redemption, at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate events set forth in the Indenture. If the Company undergoes a fundamental change, as described in the Indenture, prior to the maturity date, holders may require the Company to repurchase all or a portion of the 2026 Notes for cash at a price equal to 100% of the principal amount of the 2026 Notes to be repurchased, plus any accrued and unpaid special interest, if any, to, but excluding, the fundamental change repurchase date. The 2026 Notes are the Company’s senior unsecured obligations and will rank senior in right of payment to any of the Company’s indebtedness that is expressly subordinated in right of payment to the 2026 Notes; equal in right of payment to any of the Company’s unsecured indebtedness that is not so subordinated; effectively junior in right of payment to any of the Company’s secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally junior to all indebtedness and other liabilities (including trade payables) of current or future subsidiaries of the Company. The Indenture contains customary events of default with respect to the 2026 Notes and provides that upon certain events of default occurring and continuing, the Trustee may, and the Trustee at the request of holders of at least 25% in principal amount of the 2026 Notes shall, declare all principal and accrued and unpaid interest, if any, of the 2026 Notes to be due and payable. In case of certain events of bankruptcy, insolvency or reorganization, involving the Company, all of the principal of, and accrued and unpaid interest on the 2026 Notes will automatically become due and payable. Prior to the adoption of ASU 2020-06 on January 1, 2022, in accounting for the issuance of the 2026 Notes, management allocated the proceeds of the 2026 Notes between liability and equity components. To estimate the fair value of the liability component, management measured the fair value of a similar liability that did not have an associated conversion feature by discounting the contractual cash flows of the 2026 Notes at an estimated interest rate for a comparable non-convertible note. The Company applied judgment to determine the interest rate of 5.65%, which was estimated based on the credit spread implied by the 2026 Notes issuance. Significant inputs used in the model to determine the applicable interest rate include implied volatility over the term of the 2026 Notes. The equity component representing the conversion option was determined by deducting the fair value of the liability component from the principal amount of the 2026 Notes. The difference between the principal amount of the 2026 Notes and the equity component totaling $276.3 million was recorded as a debt discount. In addition, the Company incurred $21.2 million of transaction costs related to the 2026 Notes, of which $16.1 million and $5.1 million, respectively, was allocated to the liability and equity components of the 2026 Notes. Transaction costs allocated to the equity component were recorded as additional debt discount. The equity component of the 2026 Notes was not remeasured as it continued to meet the conditions for equity classification. The debt discount was amortized to interest expense over the term of the 2026 Notes using the effective interest method. Additionally, the Company recorded, through equity, a deferred tax liability of $2.4 million, net of the related change in the valuation allowance, related to the debt issuance costs on the 2026 Notes. In connection with the adoption of ASU 2020-06 on January 1, 2022, the Company reclassified the remaining balance of the conversion feature of $271.2 million from additional paid-in capital to convertible debt for $233.4 million and retained earnings for $37.8 million. Accordingly, the Company no longer carries an equity component of the Notes, and no longer incurs non-cash interest expense related to the accretion of the debt discount associated with the embedded conversion option. The 2026 Notes consisted of the following (in thousands): December 31 2023 2022 Liability: Principal $ 1,150,000 $ 1,150,000 Unamortized debt issuance costs (9,392) (13,625) Net carrying amount $ 1,140,608 $ 1,136,375 The effective interest rate of the 2026 Notes, excluding the conversion option, remained unchanged at 0.37% for December 31, 2023 and 2022. The Company carries the 2026 Notes at face value less unamortized debt issuance costs on the accompanying consolidated balance sheets and presents the fair value for disclosure purposes only. The estimated fair value was determined based on the actual bids and offers of the 2026 Notes in an over-the-counter market on the last trading day of the period. The estimated fair value of the 2026 Notes, based on a market approach at December 31, 2023, was approximately $1.0 billion, which represents a Level 2 valuation. During the years ended December 31, 2023 and 2022, the Company recognized $4.2 million and $4.2 million of interest expense related to the amortization of debt issuance costs, respectively. The 2026 Notes were not convertible at December 31, 2023. It is the Company’s current intent to settle conversions of the 2026 Notes through “combination settlement”, which involves repayment of the principal portion in cash and any excess of the conversion value over the principal amount in shares of its common stock. 2024 Capped Calls In connection with the offering of the 2024 Notes, the Company entered into privately-negotiated capped call transactions (the “2024 Capped Calls”) with certain counterparties covering, subject to anti-dilution adjustments, approximately 3.4 million shares of our common stock and are generally expected to offset the potential economic dilution of our common stock up to the initial cap price. The 2024 Capped Calls have an initial strike price of $73.40 per share, subject to certain adjustments, which corresponds to the initial conversion price of the 2024 Notes, and an initial cap price of $106.76 per share, subject to certain adjustments. The Company entered into the 2024 Capped Calls at a cost of approximately $46.2 million, which was recorded as a reduction of the Company’s additional paid-in capital in the accompanying consolidated financial statements. By entering into the 2024 Capped Calls, the Company expects to reduce the potential dilution to its common stock upon any conversion of the 2024 Notes (or, in the event a conversion of the 2024 Notes is settled in cash, to reduce its cash payment obligation) in the event that at the time of conversion of the 2024 Notes, the market value per share of its common stock exceeds the conversion price of the 2024 Notes, with such reduction subject to the cap price. The cost of the 2024 Capped Calls is not expected to be tax deductible as the Company did not elect to integrate the 2024 Capped Calls into the 2024 Notes for tax purposes. As of December 31, 2023, all of the 2024 Capped Calls remained outstanding. 2026 Capped Calls In connection with the offering of the 2026 Notes, the Company entered into privately-negotiated capped call transactions (the “2026 Capped Calls”) with certain counterparties covering, subject to anti-dilution adjustments, approximately 6.9 million shares of our common stock and are generally expected to offset the potential economic dilution of our common stock up to the initial cap price. The 2026 Capped Calls have an initial strike price of $166.23 per share - subject to certain adjustments, which corresponds to the initial conversion price of the 2026 Notes - and an initial cap price of $233.31 per share, subject to certain adjustments. The Company entered into the 2026 Capped Calls at a cost of approximately $102.4 million, which was recorded as a reduction of the Company’s additional paid-in capital in the accompanying consolidated financial statements. By entering into the 2026 Capped Calls, the Company expects to reduce the potential dilution to its common stock upon any conversion of the 2026 Notes (or, in the event a conversion of the 2026 Notes is settled in cash, to reduce its cash payment obligation) in the event that at the time of conversion of the 2026 Notes, the market value per share of its common stock exceeds the conversion price of the 2026 Notes, with such reduction subject to the cap price. The cost of the 2026 Capped Calls is not expected to be tax deductible as the Company did not elect to integrate the 2026 Capped Calls into the 2026 Notes for tax purposes. As of December 31, 2023, all of the 2026 Capped Calls remained outstanding. |
Restructuring Costs
Restructuring Costs | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | Restructuring Costs Fiscal 2023 Restructuring Program On August 23, 2023, the Company announced its intention to reduce its global workforce by approximately 9%, or approximately 166 total positions. The actions were designed to support the Company’s growth, scale and profitability objectives. The actions were substantially completed in the fourth quarter of fiscal year 2023 subject to local law and consultation requirements. During the year ended December 31, 2023, the Company recorded $9.8 million, primarily for severance and other termination benefits, which occurred in the U.S. and various international locations. The charges were recorded as one-time termination benefits pursuant to ASC 420, Exit or Disposal Cost Obligations . The Company does not anticipate incurring significant additional expenses. Fiscal 2022 Restructuring Program On December 7, 2022, the Company announced its intention to reduce its global workforce by approximately 5%, or approximately 95 total positions. The actions were primarily in response to cost reduction initiatives as the Company continues to focus on key growth priorities. The actions were substantially completed in the fourth quarter of fiscal year 2022 subject to local law and consultation requirements. During the years ended December 31, 2023 and 2022, the Company recorded $1.1 million and $3.8 million, respectively, primarily for severance and other termination benefits, which occurred in the U.S. and various international locations. The charges were recorded as one-time termination benefits pursuant to ASC 420. The Company does not anticipate incurring additional expenses. For the year ended December 31, 2022, the Company paid $2.1 million related to the fiscal 2022 restructuring program. The liability for the fiscal 2023 and 2022 restructuring programs was included in accrued expenses and other current liabilities in the consolidated balance sheet, and the following tables summarize the related activity for the respective plans for the year ended December 31, 2023 (in thousands): Year Ended December 31, 2023 Restructuring Program Fiscal 2023 Fiscal 2022 Total Accrual balance as of December 31, 2022 $ — $ 1,737 $ 1,737 Restructuring charges 9,815 1,149 10,964 Cash payments and adjustments (8,253) (2,879) (11,132) Accrual balance as of December 31, 2023 $ 1,562 $ 7 $ 1,569 All plan adjustments were changes in estimates whereby increases and decreases in charges were generally recorded to operating expenses in the periods of adjustments. |
Equity Awards
Equity Awards | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Equity Awards | Equity Awards 2014 and 2016 Plans On March 3, 2014, the Company adopted the 2014 Stock Incentive Plan (the “2014 Plan”). In November 2016, upon the completion of the Company’s initial public offering, the Company adopted the 2016 Equity Incentive Plan (the “2016 Plan”) and determined that it will no longer grant any additional awards under the 2014 Plan. However, the 2014 Plan continues to govern the terms and conditions of the outstanding awards previously granted under the 2014 plan. Upon the adoption of the 2016 Plan, the maximum number of shares issuable was 6.2 million, plus a number of shares equal to the number of shares subject to outstanding awards granted under the 2014 Plan after the date the 2014 Plan is terminated without having been exercised in full. The Company’s Board of Directors (the “Board”) may grant stock options and restricted stock units to employees, directors and consultants under the 2016 Plan. The aggregate number of shares available under the 2016 Plan and the number of shares subject to outstanding options automatically adjusts for any changes in the Company’s outstanding common stock by reason of any recapitalization, spin-off, reorganization, reclassification, stock dividend, stock split, reverse stock split, or similar transaction. Stock options and restricted stock units generally vest over three At December 31, 2023, 18.9 million shares were available for issuance under the 2016 Plan. Stock options - service-only vesting conditions The following table summarizes activity for awards that contain service-only vesting conditions: Shares Weighted- Weighted-Average Aggregate (in thousands) (in years) (in thousands) Outstanding at December 31, 2022 2,431 $ 44.98 5.5 $ 64,903 Exercised (590) $ 33.82 Forfeited/canceled (148) $ 81.37 Outstanding at December 31, 2023 1,693 $ 45.67 4.6 $ 37,077 Exercisable at December 31, 2023 1,607 $ 43.79 The weighted average grant date fair value per share of options granted during the year ended December 31, 2021 that contain service only vesting conditions was $50.77. There were no stock options granted during the years ended December 31, 2023 and 2022. The aggregate intrinsic value of options exercised that contain service only vesting conditions during the years ended December 31, 2023, 2022 and 2021 was $15.2 million, $13.4 million, and $38.3 million, respectively. Cash received from the exercise of stock options for the years ended December 31, 2023, 2022, and 2021 was $19.8 million, $4.7 million, and $11.4 million, respectively. Unrecognized compensation expense relating to stock options that contain service only vesting conditions was $2.7 million at December 31, 2023, which is expected to be recognized over a weighted-average period of 1.0 year. Restricted stock units - service-only vesting conditions The following table summarizes activity for restricted stock units that contain service-only vesting conditions: Restricted Weighted-Average (in thousands) Nonvested at December 31, 2022 2,202 $ 74.42 Granted 1,451 $ 64.35 Vested (916) $ 72.92 Forfeited/canceled (529) $ 72.77 Nonvested at December 31, 2023 2,208 $ 68.82 At December 31, 2023, the intrinsic value of service-based nonvested restricted stock units was $137.9 million. At December 31, 2023, total unrecognized compensation cost related to nonvested restricted stock units was $125.8 million and was expected to be recognized over a weighted-average period of 2.6 years. Restricted stock units - performance and service conditions On April 4, 2022, the Compensation Committee of the Board of Directors of BlackLine, Inc. (the “Compensation Committee”) approved grants of performance and service-based restricted stock units totaling 0.2 million target shares. The number of shares that will vest is subject to the achievement of certain performance metrics. The grants include three On March 7, 2023, the Compensation Committee approved grants of performance and service-based restricted stock units totaling 0.3 million target shares. The grants include three value of the second tranche of the 2022 grants and the first tranche of the 2023 grants was $4.8 million and $6.3 million, respectively. Stock-based compensation expense for each tranche will be recognized over the period from grant date to vest date and will be based on the probable outcome at the end of each reporting period. The following table summarizes activity for restricted stock units with performance and service vesting conditions with grant dates (in thousands): Restricted Weighted-Average (in thousands) Nonvested at December 31, 2022 69 $ 75.58 Granted 166 $ 67.17 Performance adjustment (28) $ 75.58 Vested (41) $ 75.66 Forfeited/canceled (53) $ 67.23 Nonvested at December 31, 2023 113 $ 67.17 The following table summarizes activity for restricted stock units with performance and service vesting conditions with no grant dates established (in thousands): Restricted Weighted-Average (in thousands) Nonvested at December 31, 2022 138 N/A Granted 156 N/A Vested — N/A Forfeited/canceled (59) N/A Nonvested at December 31, 2023 235 N/A At December 31, 2023, the intrinsic value of performance and service-based nonvested restricted stock units with established grant dates was $7.1 million. At December 31, 2023, total unrecognized compensation cost related to performance and service-based nonvested restricted stock units with established grant dates was $0.5 million and was expected to be recognized over a weighted-average period of 0.2 years. At December 31, 2023, the intrinsic value of performance and service-based nonvested restricted stock units with no grant dates established was $14.6 million. Restricted stock units - performance, market, and service conditions On December 30, 2022, the Compensation Committee approved a grant of performance, market, and service-based restricted stock units totaling 0.2 million target shares. The number of shares that will vest is subject to the achievement of certain performance metrics and total shareholder return. The following table summarizes activity for restricted stock units with performance, market, and service-based conditions: Restricted Weighted-Average (in thousands) Nonvested at December 31, 2022 189 $ 75.90 Granted — N/A Vested — N/A Forfeited/canceled (189) $ 75.90 Nonvested at December 31, 2023 — N/A At December 31, 2023, all of the nonvested restricted stock units with performance, market, and service conditions were forfeited, reducing the nonvested balance to zero. Employee Stock Purchase Plan Under the Company’s 2018 Employee Stock Purchase Plan (“ESPP”) eligible employees are granted the right to purchase shares at the lower of 85% of the fair value of the stock at the time of grant or 85% of the fair value at the time of exercise. The right to purchase shares is granted twice yearly for six month offering periods in May and November and exercisable on or about the succeeding November and May, respectively, of each year. Under the ESPP, 0.8 million shares remained available for issuance at December 31, 2023. The Company recognized stock-based compensation expense related to the ESPP of $3.3 million, $3.3 million, and $3.8 million for the years ended December 31, 2023, 2022, and 2021, respectively. The fair value of ESPP shares granted was estimated using the Black-Scholes option pricing model with the following weighted-average assumptions: Year Ended December 31, 2023 2022 2021 Risk-free interest rate 4.5% - 5.4% 1.4% - 4.5% 0.0% - 0.2% Expected term (in years) 0.5 - 1 0.5 - 1 0.5 - 1 Volatility 39.8% - 58.5% 39.3% - 65.5% 23.4% - 46.6% At December 31, 2023, total unrecognized compensation cost related to the 2018 ESPP was $2.8 million and was expected to be recognized over a weighted-average period of approximately one year. Stock-based compensation expense Stock-based compensation expense recorded in the Company’s consolidated statements of operations was as follows (in thousands): Year Ended December 31, 2023 2022 2021 Cost of revenues $ 10,342 $ 8,595 $ 8,410 Sales and marketing 24,152 26,310 22,756 Research and development 13,095 14,382 11,110 General and administrative 30,381 26,597 23,594 $ 77,970 $ 75,884 $ 65,870 Stock-based compensation capitalized as an asset was $3.5 million, $2.4 million, and $1.8 million in the years ended December 31, 2023, 2022, and 2021, respectively. The Company recorded $0.1 million, $0.1 million, and $0.6 million of foreign tax benefits attributable to equity awards for the years ended December 31, 2023, 2022, and 2021, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of loss before income taxes were as follows (in thousands): Year Ended December 31, 2023 2022 2021 United States $ 62,745 $ (41,534) $ (96,836) International (2,236) (5,877) (4,023) $ 60,509 $ (47,411) $ (100,859) The components of the total provision for (benefit from) income taxes were as follows (in thousands): Year Ended December 31, 2023 2022 2021 Current Federal $ 272 $ — $ — State 859 316 63 Foreign 1,844 564 889 Total current tax expense 2,975 880 952 Deferred Federal 202 (12,709) — State 100 (1,503) — Foreign (1,827) (188) (817) Total deferred tax provision (1,525) (14,400) (817) Total provision for (benefit from) income taxes $ 1,450 $ (13,520) $ 135 A reconciliation of the statutory U.S. federal income tax rate to the Company’s effective tax rate for the years ended December 31, 2023, 2022, and 2021 was as follows: Year Ended December 31, 2023 2022 2021 Federal statutory income tax rate 21.0 % 21.0 % 21.0 % State tax, net of federal benefit 2.7 % (1.2) % (0.1) % Federal tax credits (9.8) % 10.0 % 6.1 % Change in valuation allowance (13.8) % (1.8) % (34.0) % Foreign tax differential 2.0 % (2.3) % (1.2) % Windfall tax benefits, net related to stock-based compensation 4.1 % 1.1 % 16.5 % Nondeductible officer compensation 6.8 % (11.1) % (7.5) % Nondeductible transaction costs 0.3 % (1.5) % — % Contingent consideration (11.6) % 15.7 % — % Nondeductible meals and entertainment 0.7 % (1.1) % (0.5) % Other — % (0.3) % (0.4) % 2.4 % 28.5 % (0.1) % Significant components of the Company’s deferred tax assets and liabilities were as follows (in thousands): December 31, 2023 2022 Deferred tax assets Net operating loss carryforwards $ 55,779 $ 77,711 Research and other credits 39,248 32,094 Capitalized R&D 28,455 11,919 Stock-based compensation 7,811 8,699 Operating and finance leases 3,343 2,082 Business interest carryforward — 3,113 Accrued expenses and other current liabilities 5,445 6,443 Other 779 1,737 Total deferred tax assets 140,860 143,798 Less: valuation allowance (92,079) (99,476) Deferred tax assets, net of valuation allowance 48,781 44,322 Deferred tax liabilities Intangible assets (18,698) (21,295) Prepaid expenses (24,861) (24,406) Operating lease right-of-use and finance lease assets (2,973) (1,564) Accretion on investment (8,253) (2,154) Other (245) (443) Total deferred tax liabilities (55,030) (49,862) Net deferred taxes $ (6,249) $ (5,540) ASC 740, Income Taxes , requires that the tax benefit of net operating losses, temporary differences, and credit carryforwards be recorded as an asset to the extent that management assesses that realization is “more likely than not.” A valuation allowance is recorded when it is more likely than not that some of the deferred tax assets will not be realized. Realization of future tax benefits is dependent on the Company’s ability to generate sufficient taxable income within the carryforward period. For financial reporting purposes, the Company has incurred losses for two of the past three years. Based on available objective evidence, including the Company’s cumulative history of losses, management believes it is more likely than not that the net deferred tax assets will not be fully realizable. Accordingly, the Company provided a valuation allowance against certain deferred tax assets. The net deferred tax liability position at December 31, 2023 was related to the Company’s domestic and foreign tax jurisdictions. The changes in the valuation allowance were as follows (in thousands): Year Ended December 31, 2023 2022 2021 Valuation allowance, at beginning of year $ 99,476 $ 32,279 $ 37,691 Increase (decrease) in valuation allowance recorded through earnings (7,063) 2,880 42,240 Increase (decrease) in valuation allowance recorded through equity (334) 64,317 (47,652) Valuation allowance, at end of year $ 92,079 $ 99,476 $ 32,279 The decrease in valuation allowance recorded through equity of $0.3 million during the year ended December 31, 2023 is related to unrealized gains reported in other comprehensive income. The increase in valuation allowance recorded through equity of $64.3 million during the year ended December 31, 2022 resulted from the adoption of ASU 2020-06, which required the reversal of deferred tax liabilities associated with the Company’s 2024 and 2026 Notes. The decrease in valuation allowance recorded through equity of $47.7 million during the year ended December 31, 2021 was related to the issuance of the 2026 Notes. The decrease in valuation allowance recorded through earnings of $7.1 million for the year ended December 31, 2023 resulted primarily from the utilization of federal and state net operating loss carryforwards due to domestic profitability, along with the valuation allowance decrease associated with net deferred tax liabilities from the DI Acquisition, which are a source of taxable income to support the recognition of existing UK deferred tax assets. The valuation allowance release resulted in a UK deferred tax benefit of $1.7 million for the year ended December 31, 2023. The increase in valuation allowance recorded through earnings of $2.9 million for the year ended December 31, 2022 resulted primarily from the effects of the capitalization and amortization of research and development expenses as required by the 2017 Tax Cuts and Job Act, partially offset by the valuation allowance decrease associated with net deferred tax liabilities acquired from FourQ which are a source of taxable income to support the recognition of existing BlackLine deferred tax assets. The Company elected to consider the recoverability of the acquired deferred tax assets before existing BlackLine deferred tax assets. The valuation allowance release associated with the acquired FourQ net deferred tax liabilities resulted in an U.S. deferred tax benefit of $14.2 million for the year ended December 31, 2022. The increase in valuation allowance recorded through earnings of $42.2 million for the year ended December 31, 2021 resulted primarily from U.S. federal and state losses incurred during the period. The Company did not provide for U.S. income taxes on the undistributed earnings and other outside temporary differences of foreign subsidiaries as they are considered indefinitely reinvested outside the U.S. At December 31, 2023 and 2022, the amount of temporary differences related to undistributed earnings and other outside temporary differences upon which U.S. income taxes have not been provided is immaterial to these consolidated financial statements. At December 31, 2023, the Company had consolidated federal and state net operating loss carryforwards available to offset future taxable income of approximately $177.2 million and $127.9 million, respectively. The federal losses do not expire, and the state losses will begin to expire between 2024 and 2041, depending on the jurisdiction. The Company has federal research and development credits and foreign tax credits of $22.3 million and $3.2 million, respectively, which begin to expire in 2035 and 2024, respectively. The Company has state research and development credits and enterprise zone credits of $13.0 million and $0.4 million, respectively, which are indefinite in expiration and begin to expire in 2024, respectively. Pursuant to Internal Revenue Code Section 382, use of the Company’s net operating loss carryforwards may be limited if the Company experiences a cumulative change in ownership of more than 50% over a three-year period. The following is a rollforward of the Company’s total gross unrecognized tax benefits (in thousands): Year Ended December 31, 2023 2022 2021 Beginning gross unrecognized tax benefits $ 5,513 $ 4,266 $ 2,523 Increases related to prior year tax positions 274 162 400 Increases related to current year tax positions 1,317 1,085 1,343 Ending gross unrecognized tax benefits $ 7,104 $ 5,513 $ 4,266 At December 31, 2023 and December 31, 2022, included in the balance of unrecognized tax benefits is $0.1 million, that if recognized, would affect the effective tax rate. The Company recorded less than $0.1 million interest and penalties in its provision for income taxes for the years ended December 31, 2023 and December 31, 2022, respectively, and less than $0.1 million was accrued in interest and penalties at December 31, 2023 and December 31, 2022, respectively. No interest or penalties were recorded in its provision for the year ended December 31, 2021. The Company files U.S. federal, various state, and foreign income tax returns. In the normal course of business, the Company is subject to examination by taxing authorities. The tax years from 2013 forward remain subject to examination for federal purposes. Generally, state and foreign tax authorities may examine the Company’s tax returns for four years and five years, respectively, from the date an income tax return is filed. However, the taxing authorities may continue to examine the Company’s federal and state net operating loss carryforwards until the statute of limitations closes on the tax years in which the federal and state net operating losses are utilized. |
Net Income (Loss) per Share
Net Income (Loss) per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) per Share | Net Income (Loss) per Share The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands, except per share amounts): Year Ended December 31, 2023 2022 2021 Basic net income (loss) per share Numerator: Net income (loss) attributable to BlackLine, Inc. $ 52,833 $ (29,391) $ (115,161) Denominator: Weighted average shares 60,849 59,539 58,351 Basic net income (loss) per share attributable to BlackLine, Inc. $ 0.87 $ (0.49) $ (1.97) Diluted net income (loss) per share Numerator: Net income (loss) attributable to BlackLine, Inc. $ 52,833 $ (29,391) $ (115,161) Interest expense 5,848 — — Tax effect of interest expense (132) — — Net income (loss) attributable to BlackLine, Inc. for diluted calculation $ 58,549 $ (29,391) $ (115,161) Denominator: Weighted average shares 60,849 59,539 58,351 Dilutive effect of securities 872 — — Dilutive effect of convertible senior notes 10,324 — — Shares used to calculate diluted net income (loss) per share 72,045 59,539 58,351 Diluted net income (loss) per share attributable to BlackLine, Inc. $ 0.81 $ (0.49) $ (1.97) Potentially dilutive shares, which are based on the weighted-average shares of common stock underlying stock options, unvested stock awards, and Notes using the treasury stock method or the if-converted method, as applicable, are included when calculating diluted net income per share attributable to BlackLine, Inc. when their effect is dilutive. As of January 1, 2022, the Company adopted ASU 2020-06 using the modified retrospective method. The standard requires the Company to apply the if-converted method in relation to the Notes, which requires the Company to assume that the Notes were converted using only share settlement at the beginning of the period, resulting in additional shares outstanding of 3.4 million and 6.9 million for the 2024 Notes and the 2026 Notes, respectively. Using this method, the numerator is adjusted by adding back interest expense, net of any tax impact, and the denominator is affected by including the effect of potential share settlement, if the effect is dilutive. Prior to the adoption of ASU 2020-06, the Notes were accounted for using the treasury stock method for the purposes of net income per share. The weighted average impact of potentially dilutive securities that were excluded from the diluted per share calculations because they were anti-dilutive were as follows (in thousands): Year Ended December 31, 2023 2022 2021 Stock options - service-only vesting conditions 1,062 2,431 2,739 Restricted stock units - service-only vesting conditions 1,834 2,202 1,503 Restricted stock units - performance and service conditions 16 207 — Restricted stock units - performance, market, and service conditions 73 189 — Total shares excluded from net income (loss) per share 2,985 5,029 4,242 Additionally, approximately 3.4 million and 6.9 million weighted average shares underlying the conversion option in the 2024 Notes and the 2026 Notes, respectively, are excluded from the calculation of diluted net loss per share attributable to common stockholders for the years ended December 31, 2022 and December 31, 2021, respectively, as the effect would be anti-dilutive. The shares are subject to adjustment, up to approximately 4.7 million shares and 9.9 million shares for the 2024 Notes and the 2026 Notes, respectively, if certain corporate events occur prior to the maturity dates or if the Company issues a notice of redemption. |
Contingent Consideration
Contingent Consideration | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination, Contingent Consideration Arrangements [Abstract] | |
Contingent Consideration | Contingent Consideration 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 combined bookings from FourQ and the Company, can significantly impact the fair value of the contingent consideration liability. During the year ended December 31, 2023, the Company reduced the FourQ contingent consideration to zero. Refer to “Note 2 - Summary of Significant Accounting Policies” for additional information regarding the valuation of the contingent consideration. In conjunction with the 2013 Acquisition, option holders of BlackLine Systems were allowed to cancel their stock option rights and receive a cash payment equal to the amount of calculated gain (less applicable expense and other items) had they exercised their stock options and then sold their common shares as part of the 2013 Acquisition. As a condition of the 2013 Acquisition, the Company was obligated to pay additional cash consideration to certain equity holders since the Company realized taxable income for the year ended December 31, 2022. The maximum contingent cash consideration of $8.0 million was paid during the quarter ended December 31, 2023, which reduced the liability to zero. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation —From time to time, the Company may become subject to legal proceedings, claims and litigation arising in the ordinary course of business. The Company is not currently a party to any legal proceedings, nor is it aware of any pending or threatened litigation that would have a material adverse effect on the Company’s business, operating results, cash flows, or financial condition should such litigation be resolved unfavorably. Indemnification —In the ordinary course of business, the Company may provide indemnification of varying scope and terms to customers, vendors, investors, directors, and officers with respect to certain matters, including, but not limited to, losses arising out of its breach of such agreements, services to be provided by the Company, or from intellectual property infringement claims made by third parties. These indemnification provisions may survive termination of the underlying agreement and the maximum potential amount of future payments the Company could be required to make under these indemnification provisions may not be subject to maximum loss clauses. The maximum potential amount of future payments the Company could be required to make under these indemnification provisions is indeterminable. The Company has never paid a material claim, nor has it been sued in connection with these indemnification arrangements. At December 31, 2023 and 2022, the Company has not accrued a liability for these indemnification arrangements because the likelihood of incurring a payment obligation, if any, in connection with these indemnification arrangements was not probable or reasonably estimable. |
Defined Contribution Plan
Defined Contribution Plan | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Defined Contribution Plan | Defined Contribution Plan The Company sponsors a defined contribution retirement plan (the “Plan”) that covers substantially all domestic employees. The Company makes matching contributions of 100% of each $1 of the employee’s contribution up to the first 3% of the employee’s semi-monthly compensation and 50% of each $1 of the employee’s contribution up to the next 2% of the employee’s semi-monthly compensation. Matching contributions to the Plan recorded in the Company’s consolidated statements of operations totaled $7.6 million, $7.4 million, and $5.9 million for the years ended December 31, 2023, 2022, and 2021, respectively. |
Geographic Information
Geographic Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Geographic Information | Geographic Information The following table sets forth the Company’s long-lived assets, which consist of property and equipment, net, and operating lease ROU assets by geographic region (in thousands): Year Ended December 31, 2023 2022 United States $ 21,831 $ 22,416 International 12,209 12,103 $ 34,040 $ 34,519 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On February 14, 2024, the Compensation Committee approved restricted stock unit grants to employees totaling 0.1 million shares. Each restricted stock unit entitles the recipient to receive one share of common stock upon vesting of the award. The restricted stock units are service-based and the vast majority will vest as to one-fourth of the total number of units awarded on the first anniversary of February 20, 2024 and quarterly thereafter for 12 consecutive quarters. On February 14, 2024, the Compensation Committee approved grants of performance and service-based restricted stock units totaling less than 0.1 million target shares. The awards are tied 50% to relative total shareholder return measured over a three-year performance period and 50% to annualized recurring revenue over three |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net income (loss) attributable to BlackLine, Inc. | $ 52,833 | $ (29,391) | $ (115,161) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 12 Months Ended |
Dec. 31, 2023 shares | Dec. 31, 2023 shares | |
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On November 14, 2023, Karole Morgan-Prager, our Chief Legal and Administrative Officer, adopted a "Rule 10b5-1 trading arrangement", as defined in Regulation S-K Item 408. The trading arrangement provides for the sale, from time to time, of an aggregate of up to 10,007 shares of our common stock, and is intended to satisfy the affirmative defense in Rule 10b5-1(c). The number of shares sold under the trading arrangement will be reduced by the number of shares sold to cover applicable withholding taxes. The duration of the trading arrangement is until November 15, 2024 or earlier if all transactions under the trading arrangement have been completed. On November 30, 2023, Kevin Thompson, who is a member of our Board, adopted a "Rule 10b5-1 trading arrangement", as defined in Regulation S-K Item 408. The trading arrangement provides for the sale, from time to time, of an aggregate of up to 8,000 shares of our common stock, and is intended to satisfy the affirmative defense in Rule 10b5-1(c). The number of shares sold under the trading arrangement will be reduced by the number of shares sold to cover applicable withholding taxes. The duration of the trading arrangement is until March 3, 2025 or earlier if all transactions under the trading arrangement have been completed. | |
Rule 10b5-1 Arrangement Adopted | false | |
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Karole Morgan-Prager [Member] | ||
Trading Arrangements, by Individual | ||
Name | Karole Morgan-Prager | |
Title | Chief Legal and Administrative Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | November 14, 2023 | |
Arrangement Duration | 367 days | |
Aggregate Available | 10,007 | 10,007 |
Kevin Thompson [Member] | ||
Trading Arrangements, by Individual | ||
Name | Kevin Thompson | |
Title | member of our Board | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | November 30, 2023 | |
Arrangement Duration | 481 days | |
Aggregate Available | 8,000 | 8,000 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Principles of consolidation and basis of presentation | Principles of consolidation and basis of presentation The accompanying consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the operating results of its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated on consolidation. |
Use of estimates | Use of estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, management evaluates its estimates, primarily those related to determining the stand-alone selling price for separate deliverables in the Company’s subscription revenue arrangements, allowance for doubtful accounts, cancellations and credits, fair value of assets and liabilities assumed in a business combination, recoverability of goodwill and long-lived assets, useful lives associated with long-lived assets and right-of-use assets, income taxes, contingencies, fair value of contingent consideration, fair value of the convertible senior notes (the “Notes”) issued in August 2019 and March 2021, redemption value of redeemable non-controlling interest, and the valuation and assumptions underlying stock-based compensation. These estimates are based on historical data and experience, as well as various other factors that management believes to be reasonable under the circumstances. Actual results could differ from those estimates. The Company assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to the Company at December 31, 2023 and through the date of this report. The accounting matters assessed included, but were not limited to, the Company’s valuation of contingent consideration, the allowance for credit losses, and the carrying value of goodwill and other long-lived assets. While there was not a material impact to the Company’s consolidated financial statements for the year ended December 31, 2023, the Company’s future assessment of these accounting matters and other factors could result in material impacts to the Company’s consolidated financial statements in future reporting periods. |
Segments | Segments Management has determined that the Company has one operating segment. Together, our Chief Executive Officers are the chief operating decision maker and review the financial information on a consolidated and aggregate basis, together with certain operating metrics principally to make decisions about how to allocate resources and to measure the Company’s performance. |
Concentration of credit risk and significant customers | Concentration of credit risk and significant customers Financial instruments that potentially subject the Company to a significant concentration of credit risk consist of cash and cash equivalents, investments in marketable securities and accounts receivable. The Company maintains the majority of its cash balances with one major commercial bank in interest-bearing accounts, which exceeds the Federal Deposit Insurance Corporation, or FDIC, federally insured limits. The Company invests its excess cash in money market mutual funds, commercial paper, U.S. treasury securities, corporate bonds, and U.S. government agencies with two major investment banks. To date, the Company has not experienced any impairment losses on its investments. |
Cash and cash equivalents | Cash and cash equivalents The Company considers all highly liquid investments with an original or remaining maturity of three months or less at the date of purchase to be cash equivalents. Cash includes cash held in checking and savings accounts. Cash equivalents are comprised of investments in money market mutual funds, commercial paper, U.S. treasury securities, corporate bonds, and U.S. government agencies. The carrying value of cash and cash equivalents approximates fair value. |
Restricted cash | Restricted cash Included in other assets and prepaid expenses and other current assets was $0.2 million and $0.2 million of restricted cash at December 31, 2023 and 2022, respectively. The cash was required to be restricted for use by the Company’s office leaseholder to collateralize a standby letter of credit. |
Investments in marketable securities | Investments in marketable securities The Company periodically assesses its portfolio of marketable securities for impairment. For debt securities in an unrealized loss position, this assessment first takes into account the Company’s intent to sell, or whether it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of these criteria are met, the debt security’s amortized cost basis is written down to fair value through other income (expense), net. For debt securities in an unrealized loss position that do not meet the aforementioned criteria, the Company assesses whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, the Company considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and any adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss may exist, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses will be recorded through other income (expense), net, limited by the amount that the fair value is less than the amortized cost basis. Any additional impairment not recorded through an allowance for credit losses is recognized in accumulated other comprehensive loss in the consolidated statements of stockholders’ equity. |
Accounts receivable and credit losses | Accounts receivable and credit losses Accounts receivable are recorded and carried at the original invoiced amount less an allowance for any potential uncollectible amounts. The Company makes estimates of expected credit losses and cancellations and credits based upon its assessment of various factors, including historical experience, the age of the accounts receivable balances, credit quality of its customers, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect its ability to collect from customers. The estimated credit loss allowance is recorded as general and administrative expenses, while the estimated credit loss allowance for cancellations and credits is recorded as a reduction in revenue on the consolidated statements of operations. |
Leases | Leases The Company has leases for office space, equipment, and data centers. The Company determines whether an arrangement is a lease, or contains a lease, at inception if the Company is both able to identify an asset and can conclude it has the right to control the identified asset for a period of time. Leases are included in property and equipment, operating lease right-of-use (“ROU”) assets, finance lease liabilities, and operating lease liabilities on the Company’s consolidated balance sheets. The Company has made accounting policy elections, including a short-term lease exception policy, permitting the Company to not apply the recognition requirements of this standard to short-term leases (i.e. leases with expected terms of 12 months or less), and an accounting policy to account for lease and certain non-lease components as a single component for certain classes of assets. The portfolio approach, which allows a lessee to account for its leases at a portfolio level, was elected for certain equipment leases in which the difference in accounting for each asset separately would not have been materially different from accounting for the assets as a combined unit. Finance lease assets and operating lease ROU assets represent the Company's right to control an underlying asset for the lease term. Finance lease liabilities and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease, both of which are recognized at commencement date based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date or remeasurement date to determine the discount rate used to present value lease payments for finance and operating leases. The incremental borrowing rate used is estimated based on what the Company would be required to pay for a collateralized loan over a similar term. Additionally, the Company generally uses the portfolio approach when applying the discount rate selected based on the dollar amount and term of the obligation. The Company’s leases typically do not include any residual value guarantees, bargain purchase options, or asset retirement obligations. The Company’s lease terms are only for periods in which it has enforceable rights. The Company generally uses the base, non-cancellable lease term when determining the lease assets and liabilities. A lease is no longer enforceable when both the lessee and the lessor each have the right to terminate the lease without permission from the other party with no more than an insignificant penalty. The Company’s lease terms are impacted by options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company’s agreements may contain variable lease payments. The Company includes variable lease payments that depend on an index or a rate and excludes those which depend on facts or circumstances occurring after the commencement date, other than the passage of time. Additionally, for certain equipment leases, the Company applies a portfolio approach to effectively account for the lease assets and liabilities. Judgment is required when determining whether any of the Company’s data center contracts contain a lease. The Company concluded a lease exists when the asset is specifically identifiable, substantially all the economic benefit of the asset is obtained, and the right to direct the use of the asset exists during the term of the lease. |
Property and equipment | Property and equipment Property and equipment is stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which is generally three |
Capitalized internal-use software costs | Capitalized internal-use software costs The Company capitalizes certain costs in the development of its SaaS subscription solution when (i) the preliminary project stage is completed, (ii) management has authorized further funding for the completion of the project, and (iii) it is probable that the project will be completed and performed as intended. These capitalized costs include personnel and related expenses for employees and costs of third-party contractors who are directly associated with and who devote time to internal-use software projects. Capitalization of these costs ceases once the project is substantially complete and the software is ready for its intended purpose. Costs incurred for significant upgrades and enhancements to the Company’s SaaS software solutions are also capitalized. Costs incurred for training, maintenance and minor modifications or enhancements are expensed as incurred. Capitalized software development costs are amortized using the straight-line method over an estimated useful life of three years. During the years ended December 31, 2023, 2022, and 2021, the Company amortized $19.1 million, $13.6 million, and $9.0 million, respectively, of internal-use software development costs to subscription and support cost of revenues. At December 31, 2023 and 2022, the accumulated amortization of capitalized internal-use software development costs was $60.6 million and $41.6 million, respectively. The Company capitalizes certain implementation costs incurred in a hosting arrangement that is a service contract. These capitalized costs exclude training costs, project management costs, and data migration costs. Capitalized software implementation costs are amortized using the straight-line method over the terms of the associated hosting arrangements. |
Intangible assets | Intangible assets one |
Impairment of long-lived assets | Impairment of long-lived assets |
Business combinations | Business combinations The results of businesses acquired in business combinations are included in the Company’s consolidated financial statements from the date of the acquisition. Purchase accounting results in assets and liabilities of an acquired business generally being recorded at their estimated fair values on the acquisition date. Any excess consideration over the fair value of assets acquired and liabilities assumed is recognized as goodwill. Transaction costs associated with business combinations are expensed as incurred and are included in general and administrative expenses in the consolidated statements of operations. The Company performs valuations of assets acquired and liabilities assumed and allocates the purchase price to its respective assets and liabilities. Determining the fair value of the identifiable assets acquired, and liabilities assumed, and the contingent consideration liability requires management to use significant judgment and estimates, including the selection of valuation methodologies, estimates of future revenue, costs and cash flows, discount rates, and selection of comparable companies. The Company engages the assistance of valuation specialists in concluding on fair value measurements in connection with determining fair values of assets acquired and liabilities assumed in a business combination. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the fair value of net assets acquired in a business combination. Goodwill is tested for impairment at least annually at the reporting unit level or whenever events or changes in circumstances indicate that goodwill might be impaired. Events or changes in circumstances which could trigger an impairment review include a significant adverse change in legal factors or in the business climate, unanticipated competition, loss of key personnel, significant changes in the use of the acquired assets or the Company’s strategy, significant negative industry or economic trends, or significant underperformance relative to expected historical or projected future results of operations. An entity has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then additional impairment testing is not required. However, if an entity concludes otherwise, then it is required to perform an impairment test. The first step involves comparing the estimated fair value of a reporting unit with its book value, including goodwill. If the estimated fair value exceeds book value, goodwill is considered not to be impaired and no additional steps are necessary. If, however, the fair value of the reporting unit is less than book value, then an impairment charge is recorded for the difference between the reporting unit’s fair value and carrying amount, not to exceed the carrying amount of the goodwill. The Company has one reporting unit, and it tests its goodwill for impairment annually, during the fourth quarter of the calendar year. At December 31, 2023 and 2022, the Company used the quantitative approach to perform its annual goodwill impairment test. The fair value of the Company's reporting unit significantly exceeded the carrying value of its net assets and, accordingly, goodwill was not impaired. |
Redeemable non-controlling Interest | Redeemable non-controlling interest The Company's Japanese subsidiary (“BlackLine K.K.”) is not wholly owned. The agreements with the minority investors of BlackLine K.K. contain redemption features whereby the interest held by the minority investors are redeemable either (i) at the option of the minority investors or (ii) at the option of the Company, both beginning on the seventh anniversary of the initial capital contribution. If the interest of the minority investors were to be redeemed under these agreements, the Company would be required to redeem the interest based on a prescribed formula derived from the relative revenue of BlackLine K.K. and the Company. The balance of the redeemable non-controlling interest is reported at the greater of the initial carrying amount adjusted for the redeemable non-controlling interest's share of earnings or losses and other comprehensive income or loss, or its estimated redemption value. The resulting changes in the estimated redemption amount (increases or decreases) are recorded with corresponding adjustments against retained earnings or, in the absence of retained earnings, additional paid-in capital. These interests are presented on the consolidated balance sheets outside of equity under the caption “Redeemable non-controlling interest.” |
Convertible senior notes | Convertible senior notes The Company accounts for the issued Notes as a liability at face value less unamortized debt issuance costs. The debt issuance costs are being amortized to expense over the respective term of the Notes. To the extent that the Company receives conversion requests prior to the maturity of the Notes, upon settlement of the conversion requests, the difference between the fair value and the amortized book value of the Notes requested for conversion is recorded as a gain or loss on early conversion. The fair value of the Notes are measured based on a similar liability that does not have an associated convertible feature based on the remaining term of the Notes, which requires significant judgment. |
Restructuring costs | Restructuring costs The Company records a charge for restructuring when management commits to a restructuring plan, the restructuring plan identifies all significant actions, the period of time to complete the restructuring plan indicates that significant changes to the restructuring plan are not likely, and employees who are impacted have been notified of the pending involuntary termination. |
Fair value of financial instruments | Fair value of financial instruments ASC 820, Fair Value Measurement, requires entities to disclose the fair value of financial instruments, both assets and liabilities recognized and not recognized on the balance sheet, for which it is practicable to estimate fair value. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. ASC 820 describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value, which are the following: Level 1: Quoted prices in active markets for identical or similar assets and liabilities. Level 2: Quoted prices for identical or similar assets and liabilities in markets that are not active or observable inputs other than quoted prices in active markets for identical or similar assets or liabilities. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. At December 31, 2023 and 2022, the carrying values of cash equivalents, accounts receivable, accounts payable, and accrued expenses approximate their fair values due to the short-term nature of such instruments. Contingent consideration related to acquisitions is recorded at fair value as a liability on the acquisition date and is remeasured at each reporting date, based on significant inputs not observable in the market, which represents a Level 3 measurement within the fair value hierarchy. The valuation of contingent consideration uses assumptions management believes would be made by a market participant. Management assesses these estimates on an ongoing basis as additional data impacting the assumptions becomes available. Changes in the fair value of contingent consideration related to updated assumptions and estimates are recognized within general and administrative expenses in the consolidated statements of operations. To determine the fair value of the contingent consideration related to the FourQ Acquisition, management utilized a Monte Carlo simulation model to value the earnout based on the likelihood of reaching firm-specific targets. Significant inputs used in the fair value measurement of contingent consideration are 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, as well as the discount rate. |
Revenue recognition | Revenue recognition Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. The Company enters into contracts that can include various combinations of subscription and support services and professional services, which are generally capable of being distinct and accounted for as separate performance obligations. The Company’s agreements do not contain any refund provisions other than in the event of the Company’s non-performance or breach. The Company determines revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer; • Identification of performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to performance obligations in the contract; and • Recognition of revenue when, or as, performance obligations are satisfied. The Company recognizes revenue net of any applicable value added or sales tax. Subscription and support revenue – Customers pay subscription and support fees for access to the Company’s SaaS platform. Our subscription contracts have initial terms of one year to three years with renewal options. Fees are based on a number of factors, including the solutions subscribed for by the customer and the number of users having access to the solutions. Subscription services, which includes support, is recognized on a straight-line basis over the non-cancellable contractual term of the arrangement, generally beginning on the date that the Company’s service is made available to the customer. Subscription and support revenue also includes software and related maintenance and support fees on perpetual licenses. Revenues from perpetual licenses are recognized immediately at the time the Company provides the customer with a right to use the software as it exists when made available to the customer. Customers may have purchased perpetual licenses or term-based licenses, which provide customers with the same functionality and differ mainly in the duration over which the customer benefits from the software. Professional services revenue – Professional services consist of implementation and consulting services to assist the Company’s customers as they deploy our solutions. These services are considered distinct performance obligations. Professional services do not result in significant customization of the subscription service. The Company applies the practical expedient to recognize professional services revenue when it has the right to invoice based on time and materials incurred. The Company applies the optional exemption and has excluded the variable consideration from the disclosure of remaining performance obligations. Contracts with Multiple Performance Obligations – The Company’s contracts with customers often contain multiple performance obligations. For these contracts, the Company accounts for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price (“SSP”) basis. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together, as well as the determination of SSP for each distinct performance obligation, may require significant judgment. The Company typically has more than one SSP for its SaaS solutions and professional services. Additionally, management has determined that there are no third-party offerings reasonably comparable to the Company’s solutions. Therefore, the Company determines the SSPs of subscriptions to the SaaS solutions and professional services based on numerous factors including the Company’s overall pricing objectives, geography, customer size, number of users, and discounting practices. The Company uses historical maintenance renewal fees to estimate SSP for maintenance and support fees bundled with software licenses. The Company uses the residual method to estimate SSP of software licenses, because license pricing is highly variable and not sold separately from maintenance and support. Contract balances – Timing of revenue recognition may differ from the timing of invoicing to customers. The Company records an unbilled receivable when revenue is recognized prior to invoicing, and deferred revenue when revenue is recognized subsequent to invoicing. The Company generally invoices customers annually at the beginning of each annual contract period. Deferred revenue is comprised mainly of billings in advance of revenue being recognized related to the Company’s subscription and support services and professional services arrangements. Changes in deferred revenue for the years ended December 31, 2023, 2022, and 2021 were primarily due to additional billings in the periods, partially offset by revenue recognized of $274.3 million, $239.9 million, and $189.6 million, respectively, that was previously included in the deferred revenue balance at December 31, 2022, 2021, and 2020, respectively. The transaction price is generally determined by the stated fixed fees in the contract, excluding any related sales taxes. Transaction price allocated to remaining performance obligations represents contracted revenue that has not yet been recognized (“contracted not recognized”), which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. Contracted not recognized revenue was $842.7 million at December 31, 2023, of which the Company expects to recognize approximately 57.3% over the next 12 months and the remainder thereafter. Fees are generally due and payable within 30 days. None of the Company’s contracts include a significant financing component. Assets recognized from the costs to obtain a contract with a customer |
Cost of revenues | Cost of revenues Cost of revenues primarily consists of costs related to hosting the Company’s cloud-based application suite, salaries and benefits of operations and support personnel, including stock-based compensation, professional fees, and amortization of capitalized internal-use software costs. The Company allocates a portion of overhead, such as rent, information technology costs and depreciation and amortization to cost of revenues. Costs associated with providing professional services are expensed as incurred when the services are performed. In addition, subscription and support cost of revenues includes amortization of acquired developed technology. |
Sales and marketing | Sales and marketing Sales and marketing expenses consist primarily of compensation and employee benefits, including stock-based compensation, of sales and marketing personnel and related sales support teams, sales and partner commissions, marketing events, advertising costs, computer software-related costs, travel, trade shows, other marketing materials, and allocated overhead. Sales and marketing expenses also include amortization of customer relationship intangible assets, transaction-related costs, and impairment of cloud computing implementation costs. Advertising costs are expensed as incurred and totaled $11.8 million, $9.5 million, and $9.0 million for the years ended December 31, 2023, 2022, and 2021, respectively. |
Research and development | Research and development Research and development expenses are comprised primarily of salaries, benefits and stock-based compensation associated with the Company’s engineering, product and quality assurance personnel. Research and development expenses also include third-party contractors and supplies, computer software-related costs, transaction-related costs, and allocated overhead. Other than software development costs that qualify for capitalization, as discussed above, research and development costs are expensed as incurred. |
General and administrative | General and administrative General and administrative expenses consist primarily of personnel costs associated with the Company’s executive, finance, legal, human resources, compliance, and other administrative personnel, as well as accounting and legal professional fees, other corporate-related expenses and allocated overhead. General and administrative expenses also include amortization of covenant not-to-compete and trade name intangible assets, the change in value of the contingent consideration, transaction-related costs, and impairment of cloud computing implementation costs. |
Stock-based compensation | Stock-based compensation The Company accounts for stock-based compensation awards granted to employees and directors based on the awards’ estimated grant date fair value. The Company estimates the fair value of its stock options using the Black-Scholes option-pricing model. For awards that vest solely based on continued service (“service-only vesting conditions”), the resulting fair value is recognized on a straight-line basis over the period during which an employee is required to provide service in exchange for the award, usually the vesting period, which is generally four years. The Company recognizes the fair value of restricted stock units with performance and service conditions and restricted stock units with performance, market, and service conditions based upon the probability of the performance conditions being met, using the graded vesting method. The Company accounts for forfeitures when they occur rather than estimate a forfeiture rate. Determining the grant date fair value of options using the Black-Scholes option-pricing model requires management to make assumptions and judgments. These estimates involve inherent uncertainties and, if different assumptions had been used, stock-based compensation expense could have been materially different from the amounts recorded. The assumptions and estimates are as follows: Value per share of the Company’s common stock . For awards granted subsequent to the Company’s initial public offering, the fair value of common stock is based on the closing price of the Company’s common stock, as reported on the Nasdaq, on the date of grant. Expected volatility. The Company determines the expected volatility based on a weighted average of the historical volatility of its common stock and, as applicable, the historical average volatilities of similar publicly-traded companies, corresponding to the expected term of the awards. Expected term. The Company determines the expected term of awards which contain service-only vesting conditions using the simplified approach, in which the expected term of an award is presumed to be the mid-point between the vesting date and the expiration date of the award, as the Company does not have sufficient historical data relating to stock option exercises. The expected term for the Company’s ESPP represents the amount of time remaining in the 12-month offering period. Risk-free interest rate. The risk-free interest rate is based on the U.S. Treasury yield curve in effect during the period the options were granted corresponding to the expected term of the awards. Estimated dividend yield. The estimated dividend yield is zero, as the Company does not currently intend to declare dividends in the foreseeable future. |
Income taxes | Income taxes The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the consolidated statements of operations in the period that includes the enactment date. A valuation allowance is recorded when it is more likely than not that some of the deferred tax assets will not be realized. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized. The Company recognizes interest and penalties accrued with respect to uncertain tax positions, if any, in the provision for income taxes in the consolidated statements of operations. |
Net income (loss) per share | Net income (loss) per share Basic net income per share is calculated by dividing net income attributable to BlackLine, Inc. by the weighted average number of shares of common stock outstanding. For periods where the Company reports net income, the Company will calculate diluted net income per share attributable to BlackLine, Inc. by adjusting the denominator for potentially dilutive common shares, which are based on the weighted average number of shares of common stock underlying stock options and unvested stock awards using the treasury stock method, as well as for the potential impact of our Notes using the treasury stock method or the if-converted method, as applicable. Under the if-converted method, the numerator is adjusted by adding back interest expense, net of any tax impact. For periods where the Company reports net losses, the Company will calculate diluted net loss per share attributable to BlackLine, Inc. by excluding from the denominator potentially dilutive common shares, which are based on the weighted average number of shares of common stock underlying stock options and unvested stock awards, as well as the potential impact of our Notes, as they are antidilutive. For these periods, basic net loss per share attributable to BlackLine, Inc. is equivalent to diluted net loss per share attributable to BlackLine, Inc. |
Foreign currency | Foreign currency The Company’s functional currency for its foreign subsidiaries is the U.S. Dollar (“USD”), with the exception of its BlackLine K.K. subsidiary, for which the Japanese Yen is the functional currency. The foreign exchange impacts of remeasuring the local currency of the foreign subsidiaries to the functional currency is recorded in general and administrative expenses in the Company’s consolidated statements of operations. Monetary assets and liabilities of foreign operations are remeasured at balance sheet date exchange rates, non-monetary assets and liabilities and equity are remeasured at the historical exchange rates, while results of operations are remeasured at average exchange rates in effect for the period. Foreign currency transaction gains totaled $0.6 million for the year ended December 31, 2023 and foreign currency transaction losses totaled $1.9 million and $1.0 million for the years ended December 31, 2022 and 2021, respectively. The financial statements of BlackLine K.K. are translated to USD using balance sheet date exchange rates for monetary assets and liabilities, historical rates of exchange for non-monetary assets and liabilities and equity, and average exchange rates in the period for revenues and expenses. Translation gains and losses are recorded in accumulated other comprehensive income (loss) as a component of stockholders’ equity in the consolidated balance sheets. |
Recently-adopted and recently-issued accounting pronouncements | Recently-adopted accounting pronouncements There were no recently adopted accounting pronouncements during the year ended December 31, 2023. Recently-issued accounting pronouncements not yet adopted In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures . This standard expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. For public business entities, it is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact that the updated standard will have on our disclosures within our consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740) , Improvements to Income Tax Disclosures , which requires that an entity, on an annual basis, disclose additional income tax information, primarily related to the rate reconciliation and income taxes paid. The amendment in the ASU is intended to enhance the transparency and decision usefulness of income tax disclosures. For public business entities, it is effective for annual periods beginning after December 15, 2024. The Company is currently evaluating the impact that the updated standard will have on our disclosures within our consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Weighted Average Assumptions | The following information represents the weighted average of the assumptions used in the Black-Scholes option-pricing model for stock options granted: Year Ended December 31, 2023 2022 2021 Expected term (years) N/A N/A 6.0 Expected volatility N/A N/A 47.0% Risk free interest rate N/A N/A 1.0% Expected dividend yield N/A N/A — The fair value of ESPP shares granted was estimated using the Black-Scholes option pricing model with the following weighted-average assumptions: Year Ended December 31, 2023 2022 2021 Risk-free interest rate 4.5% - 5.4% 1.4% - 4.5% 0.0% - 0.2% Expected term (in years) 0.5 - 1 0.5 - 1 0.5 - 1 Volatility 39.8% - 58.5% 39.3% - 65.5% 23.4% - 46.6% |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenues by Geographic Region | The following table sets forth the Company’s revenues by geographic region (in thousands): Year Ended December 31, 2023 2022 2021 United States $ 422,192 $ 373,423 $ 304,603 International 167,804 149,515 121,103 $ 589,996 $ 522,938 $ 425,706 |
Redeemable Non-Controlling In_2
Redeemable Non-Controlling Interest (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of Activity in Redeemable Non-Controlling Interest | ctivity in the redeemable non-controlling interest was as follows (in thousands): December 31, 2023 2022 2021 Balance at beginning of period $ 23,895 $ 28,699 $ 12,524 Investment by redeemable non-controlling interest — — 2,171 Net income (loss) attributable to redeemable non-controlling interest (excluding adjustment to non-controlling interest) 892 (369) (910) Foreign currency translation (58) (304) (163) Adjustment to redeemable non-controlling interest 5,334 (4,131) 15,077 Balance at end of period $ 30,063 $ 23,895 $ 28,699 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combinations [Abstract] | |
Schedule of Estimated Fair Values of Assets Acquired and Liabilities Assumed | The purchase consideration and major classes of assets and liabilities to which the Company allocated the total fair value of purchase consideration of $11.4 million were as follows (in thousands): Cash consideration $ 11,394 Post-acquisition working capital adjustment 9 Total cash purchase consideration $ 11,403 Cash and cash equivalents $ 27 Accounts receivable, net 916 Prepaid expenses and other current assets 893 Property and equipment, net 49 Intangible assets, net 8,800 Goodwill 5,104 Operating lease right-of-use assets 402 Other assets 58 Accounts payable (665) Accrued expenses and other current liabilities (1,570) Deferred revenue, current (98) Operating lease liabilities (402) Deferred tax liabilities, net (2,111) Total consideration $ 11,403 Cash consideration $ 160,224 Post-acquisition working capital adjustment (635) Contingent consideration 55,947 Less: One-time expense related to accelerated vesting (1,322) Purchase consideration $ 214,214 Cash and cash equivalents $ 1,164 Accounts receivable, net 1,853 Prepaid expenses and other current assets 410 Other assets 143 Property and equipment 659 Intangible assets 74,400 Goodwill 154,151 Accounts payable (1,537) Accrued liabilities (2,585) Deferred revenue (231) Deferred tax liabilities, net (14,213) Total consideration $ 214,214 |
Acquired Intangible Asset Categories, Fair Value and Amortization Period | The acquired intangible asset categories, fair value, and amortization periods, were as follows: Amortization Period Fair Value (in years) (in thousands) Developed technology 5 $ 8,110 Customer relationships 3 690 $ 8,800 Amortization Period Fair Value (in years) (in thousands) Developed technology 7 $ 64,900 Customer relationships 3 9,500 $ 74,400 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Carrying Value of Intangible Assets | The carrying value of intangible assets was as follows (in thousands): December 31, 2023 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Trade name $ 15,977 $ (15,977) $ — Developed technology 137,368 (66,900) 70,468 Customer relationships 26,779 (19,342) 7,437 Defensive patent 2,333 (1,182) 1,151 $ 182,457 $ (103,401) $ 79,056 December 31, 2022 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Trade name $ 15,977 $ (14,913) $ 1,064 Developed technology 129,258 (54,462) 74,796 Customer relationships 26,089 (12,552) 13,537 Defensive patent 2,333 (866) 1,467 $ 173,657 $ (82,793) $ 90,864 |
Amortization Expense by Operation Expense Categories | Amortization expense is included in the following functional statements of operations expense categories. Amortization expense was as follows (in thousands): Year Ended December 31, 2023 2022 2021 Cost of revenues $ 12,438 $ 11,315 $ 2,685 Sales and marketing 6,791 6,505 5,883 General and administrative 1,379 1,911 1,911 $ 20,608 $ 19,731 $ 10,479 |
Summary of Estimated Amortization Expense | The following table presents the Company’s estimate of remaining amortization expense for each of the five succeeding fiscal years and thereafter for finite-lived intangible assets at December 31, 2023 (in thousands): 2024 $ 19,872 2025 14,011 2026 13,597 2027 13,075 2028 12,412 Thereafter 6,089 $ 79,056 |
Schedule of Changes in Goodwill | The following table represents the changes in goodwill (in thousands): Balance at December 31, 2021 $ 289,710 Additions from acquisitions 154,151 Balance at December 31, 2022 443,861 Additions from acquisitions 5,104 Balance at December 31, 2023 $ 448,965 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Regulated Operations [Abstract] | |
Schedule of Investments in Marketable Securities | Investments in marketable securities presented within current assets on the consolidated balance sheets consisted of the following (in thousands): December 31, 2023 Amortized Gross Gross Fair Value Marketable securities U.S. treasury securities $ 523,344 $ 737 $ (107) $ 523,974 Commercial paper 241,428 1 — 241,429 U.S. government agencies 168,078 2 (128) 167,952 $ 932,850 $ 740 $ (235) $ 933,355 December 31, 2022 Amortized Gross Gross Fair Value Marketable securities U.S. treasury securities $ 418,941 $ 9 $ (1,047) $ 417,903 Corporate bonds 64,597 3 (296) 64,304 Commercial paper 278,406 — — 278,406 U.S. government agencies 113,512 40 (82) 113,470 $ 875,456 $ 52 $ (1,425) $ 874,083 |
Schedule of Amortized Cost and Fair Values of Marketable Securities by Remaining Contractual Maturity | December 31, 2023 Amortized Cost Fair Value Maturing within 1 year $ 906,556 $ 907,107 Maturing between 1 and 2 years 26,294 26,248 $ 932,850 $ 933,355 |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities were comprised of the following (in thousands): December 31, 2023 2022 Accrued salaries and employee benefits $ 33,344 $ 39,043 Accrued income and other taxes payable 9,408 9,415 Accrued restructuring costs 1,569 1,737 Other accrued expenses and current liabilities 15,369 8,405 $ 59,690 $ 58,600 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table summarizes the Company’s financial assets and liabilities measured at fair value on a recurring basis by level, within the fair value hierarchy. Financial assets and financial liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement (in thousands): December 31, 2023 Level 1 Level 2 Level 3 Total Cash equivalents Money market funds $ 148,298 $ — $ — $ 148,298 Commercial paper — 38,926 — 38,926 U.S. government agencies — 19,987 — 19,987 Marketable securities U.S. treasury securities 523,974 — — 523,974 Commercial paper — 241,429 — 241,429 U.S. government agencies — 167,952 — 167,952 Total assets $ 672,272 $ 468,294 $ — $ 1,140,566 Liabilities Contingent consideration $ — $ — $ — $ — Total liabilities $ — $ — $ — $ — December 31, 2022 Level 1 Level 2 Level 3 Total Cash equivalents Money market funds $ 101,919 $ — $ — $ 101,919 Commercial paper — 59,405 — 59,405 Marketable securities U.S. treasury securities 417,903 — — 417,903 Corporate bonds — 64,301 — 64,301 Commercial paper — 278,406 — 278,406 U.S. government agencies — 113,471 — 113,471 Total assets $ 519,822 $ 515,583 $ — $ 1,035,405 Liabilities Contingent consideration $ 8,000 $ — $ 33,549 $ 41,549 Total liabilities $ 8,000 $ — $ 33,549 $ 41,549 |
Summary of Changes in Contingent Consideration Liability | The following table summarizes the changes in the contingent consideration liability (in thousands): Year Ended December 31, 2023 2022 2021 Beginning fair value $ 41,549 $ 20,732 $ 23,490 Additions in the period — 55,947 — Payments in the period (8,000) — — Change in fair value (33,549) (35,130) (2,758) Ending fair value $ — $ 41,549 $ 20,732 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment, net consisted of the following (in thousands): December 31, 2023 2022 Computers and equipment $ 22,396 $ 22,324 Purchased software 14,007 12,519 Furniture and fixtures 4,197 4,051 Leasehold improvements 16,198 14,943 Data center equipment - finance lease 1,231 1,231 Building - finance lease 1,219 1,219 Construction in progress — 121 Property and equipment, gross 59,248 56,408 Less: accumulated depreciation and amortization (44,381) (36,597) Property and equipment, net $ 14,867 $ 19,811 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Lessee Disclosure [Abstract] | |
Summary of Lease Expense | The components of the lease expense recorded in the consolidated statements of operations were as follows (in thousands): Year Ended December 31, 2023 2022 2021 Finance lease cost: Amortization of assets $ 1,020 $ 652 $ 46 Interest on lease liabilities 45 44 3 Operating lease cost 6,663 5,767 4,792 Short-term lease cost 378 388 336 Variable cost 1,237 1,190 741 Total lease cost $ 9,343 $ 8,041 $ 5,918 Cash flow and other information related to leases was as follows (in thousands, except percentages): |
Supplemental Cash Flow and Other Information | Year Ended December 31, 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Financing cash flows from finance leases $ 1,036 $ 662 $ 15 Operating cash flows from operating lease liabilities $ 7,467 $ 5,338 $ 5,390 Weighted average remaining lease term at end of period (in years): Finance leases 0.8 1.7 2.9 Operating leases 4.2 3.9 4.3 Weighted average discount rate: Finance leases 3.5 % 3.7 % 2.2 % Operating leases 5.7 % 2.8 % 2.3 % |
Schedule of Maturities of Lease Liabilities | Maturities of lease liabilities at December 31, 2023, for each of the five succeeding fiscal years and thereafter, were (in thousands): Finance Leases Operating Leases 2024 $ 787 $ 4,676 2025 4 5,825 2026 — 5,010 2027 — 3,639 2028 — 2,836 Thereafter — 1,073 Total lease payments 791 23,059 Less imputed interest (9) (3,213) Total lease obligations $ 782 $ 19,846 |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Summary of Notes | The 2024 Notes consisted of the following (in thousands): December 31, 2023 2022 Liability: Principal $ 250,000 $ 250,000 Unamortized debt issuance costs (767) (2,069) Net carrying amount (1) $ 249,233 $ 247,931 (1) Net carrying amount as of December 31, 2023 presented within total current liabilities on the consolidated balance sheet. The 2026 Notes consisted of the following (in thousands): December 31 2023 2022 Liability: Principal $ 1,150,000 $ 1,150,000 Unamortized debt issuance costs (9,392) (13,625) Net carrying amount $ 1,140,608 $ 1,136,375 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The liability for the fiscal 2023 and 2022 restructuring programs was included in accrued expenses and other current liabilities in the consolidated balance sheet, and the following tables summarize the related activity for the respective plans for the year ended December 31, 2023 (in thousands): Year Ended December 31, 2023 Restructuring Program Fiscal 2023 Fiscal 2022 Total Accrual balance as of December 31, 2022 $ — $ 1,737 $ 1,737 Restructuring charges 9,815 1,149 10,964 Cash payments and adjustments (8,253) (2,879) (11,132) Accrual balance as of December 31, 2023 $ 1,562 $ 7 $ 1,569 |
Equity Awards (Tables)
Equity Awards (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity | The following table summarizes activity for awards that contain service-only vesting conditions: Shares Weighted- Weighted-Average Aggregate (in thousands) (in years) (in thousands) Outstanding at December 31, 2022 2,431 $ 44.98 5.5 $ 64,903 Exercised (590) $ 33.82 Forfeited/canceled (148) $ 81.37 Outstanding at December 31, 2023 1,693 $ 45.67 4.6 $ 37,077 Exercisable at December 31, 2023 1,607 $ 43.79 |
Summary of Restricted Stock Units Activity | The following table summarizes activity for restricted stock units that contain service-only vesting conditions: Restricted Weighted-Average (in thousands) Nonvested at December 31, 2022 2,202 $ 74.42 Granted 1,451 $ 64.35 Vested (916) $ 72.92 Forfeited/canceled (529) $ 72.77 Nonvested at December 31, 2023 2,208 $ 68.82 The following table summarizes activity for restricted stock units with performance and service vesting conditions with grant dates (in thousands): Restricted Weighted-Average (in thousands) Nonvested at December 31, 2022 69 $ 75.58 Granted 166 $ 67.17 Performance adjustment (28) $ 75.58 Vested (41) $ 75.66 Forfeited/canceled (53) $ 67.23 Nonvested at December 31, 2023 113 $ 67.17 The following table summarizes activity for restricted stock units with performance and service vesting conditions with no grant dates established (in thousands): Restricted Weighted-Average (in thousands) Nonvested at December 31, 2022 138 N/A Granted 156 N/A Vested — N/A Forfeited/canceled (59) N/A Nonvested at December 31, 2023 235 N/A The following table summarizes activity for restricted stock units with performance, market, and service-based conditions: Restricted Weighted-Average (in thousands) Nonvested at December 31, 2022 189 $ 75.90 Granted — N/A Vested — N/A Forfeited/canceled (189) $ 75.90 Nonvested at December 31, 2023 — N/A |
Schedule of Weighted Average Assumptions | The following information represents the weighted average of the assumptions used in the Black-Scholes option-pricing model for stock options granted: Year Ended December 31, 2023 2022 2021 Expected term (years) N/A N/A 6.0 Expected volatility N/A N/A 47.0% Risk free interest rate N/A N/A 1.0% Expected dividend yield N/A N/A — The fair value of ESPP shares granted was estimated using the Black-Scholes option pricing model with the following weighted-average assumptions: Year Ended December 31, 2023 2022 2021 Risk-free interest rate 4.5% - 5.4% 1.4% - 4.5% 0.0% - 0.2% Expected term (in years) 0.5 - 1 0.5 - 1 0.5 - 1 Volatility 39.8% - 58.5% 39.3% - 65.5% 23.4% - 46.6% |
Summary of Stock-Based Compensation Expense | Stock-based compensation expense recorded in the Company’s consolidated statements of operations was as follows (in thousands): Year Ended December 31, 2023 2022 2021 Cost of revenues $ 10,342 $ 8,595 $ 8,410 Sales and marketing 24,152 26,310 22,756 Research and development 13,095 14,382 11,110 General and administrative 30,381 26,597 23,594 $ 77,970 $ 75,884 $ 65,870 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Components of Income (Loss) Before Income Taxes | The components of loss before income taxes were as follows (in thousands): Year Ended December 31, 2023 2022 2021 United States $ 62,745 $ (41,534) $ (96,836) International (2,236) (5,877) (4,023) $ 60,509 $ (47,411) $ (100,859) |
Components of Total Provision for Income Taxes | The components of the total provision for (benefit from) income taxes were as follows (in thousands): Year Ended December 31, 2023 2022 2021 Current Federal $ 272 $ — $ — State 859 316 63 Foreign 1,844 564 889 Total current tax expense 2,975 880 952 Deferred Federal 202 (12,709) — State 100 (1,503) — Foreign (1,827) (188) (817) Total deferred tax provision (1,525) (14,400) (817) Total provision for (benefit from) income taxes $ 1,450 $ (13,520) $ 135 |
Reconciliation of Statutory U.S. Federal Tax Rate to Effective Tax Rate | A reconciliation of the statutory U.S. federal income tax rate to the Company’s effective tax rate for the years ended December 31, 2023, 2022, and 2021 was as follows: Year Ended December 31, 2023 2022 2021 Federal statutory income tax rate 21.0 % 21.0 % 21.0 % State tax, net of federal benefit 2.7 % (1.2) % (0.1) % Federal tax credits (9.8) % 10.0 % 6.1 % Change in valuation allowance (13.8) % (1.8) % (34.0) % Foreign tax differential 2.0 % (2.3) % (1.2) % Windfall tax benefits, net related to stock-based compensation 4.1 % 1.1 % 16.5 % Nondeductible officer compensation 6.8 % (11.1) % (7.5) % Nondeductible transaction costs 0.3 % (1.5) % — % Contingent consideration (11.6) % 15.7 % — % Nondeductible meals and entertainment 0.7 % (1.1) % (0.5) % Other — % (0.3) % (0.4) % 2.4 % 28.5 % (0.1) % |
Significant Components of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities were as follows (in thousands): December 31, 2023 2022 Deferred tax assets Net operating loss carryforwards $ 55,779 $ 77,711 Research and other credits 39,248 32,094 Capitalized R&D 28,455 11,919 Stock-based compensation 7,811 8,699 Operating and finance leases 3,343 2,082 Business interest carryforward — 3,113 Accrued expenses and other current liabilities 5,445 6,443 Other 779 1,737 Total deferred tax assets 140,860 143,798 Less: valuation allowance (92,079) (99,476) Deferred tax assets, net of valuation allowance 48,781 44,322 Deferred tax liabilities Intangible assets (18,698) (21,295) Prepaid expenses (24,861) (24,406) Operating lease right-of-use and finance lease assets (2,973) (1,564) Accretion on investment (8,253) (2,154) Other (245) (443) Total deferred tax liabilities (55,030) (49,862) Net deferred taxes $ (6,249) $ (5,540) |
Summary of Changes in Valuation Allowance | The changes in the valuation allowance were as follows (in thousands): Year Ended December 31, 2023 2022 2021 Valuation allowance, at beginning of year $ 99,476 $ 32,279 $ 37,691 Increase (decrease) in valuation allowance recorded through earnings (7,063) 2,880 42,240 Increase (decrease) in valuation allowance recorded through equity (334) 64,317 (47,652) Valuation allowance, at end of year $ 92,079 $ 99,476 $ 32,279 |
Rollforward of Total Gross Unrecognized Tax Benefits | The following is a rollforward of the Company’s total gross unrecognized tax benefits (in thousands): Year Ended December 31, 2023 2022 2021 Beginning gross unrecognized tax benefits $ 5,513 $ 4,266 $ 2,523 Increases related to prior year tax positions 274 162 400 Increases related to current year tax positions 1,317 1,085 1,343 Ending gross unrecognized tax benefits $ 7,104 $ 5,513 $ 4,266 |
Net Income (Loss) per Share (Ta
Net Income (Loss) per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Loss per Share | The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands, except per share amounts): Year Ended December 31, 2023 2022 2021 Basic net income (loss) per share Numerator: Net income (loss) attributable to BlackLine, Inc. $ 52,833 $ (29,391) $ (115,161) Denominator: Weighted average shares 60,849 59,539 58,351 Basic net income (loss) per share attributable to BlackLine, Inc. $ 0.87 $ (0.49) $ (1.97) Diluted net income (loss) per share Numerator: Net income (loss) attributable to BlackLine, Inc. $ 52,833 $ (29,391) $ (115,161) Interest expense 5,848 — — Tax effect of interest expense (132) — — Net income (loss) attributable to BlackLine, Inc. for diluted calculation $ 58,549 $ (29,391) $ (115,161) Denominator: Weighted average shares 60,849 59,539 58,351 Dilutive effect of securities 872 — — Dilutive effect of convertible senior notes 10,324 — — Shares used to calculate diluted net income (loss) per share 72,045 59,539 58,351 Diluted net income (loss) per share attributable to BlackLine, Inc. $ 0.81 $ (0.49) $ (1.97) |
Schedule of Potentially Dilutive Shares Excluded From Calculation of Diluted Net Loss Per Share Attributable to Common Stockholders | The weighted average impact of potentially dilutive securities that were excluded from the diluted per share calculations because they were anti-dilutive were as follows (in thousands): Year Ended December 31, 2023 2022 2021 Stock options - service-only vesting conditions 1,062 2,431 2,739 Restricted stock units - service-only vesting conditions 1,834 2,202 1,503 Restricted stock units - performance and service conditions 16 207 — Restricted stock units - performance, market, and service conditions 73 189 — Total shares excluded from net income (loss) per share 2,985 5,029 4,242 |
Geographic Information (Tables)
Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Long-lived Assets Which Consist of Property and Equipment, Net and Operating Lease Right-of-use Assets by Geographic Region | The following table sets forth the Company’s long-lived assets, which consist of property and equipment, net, and operating lease ROU assets by geographic region (in thousands): Year Ended December 31, 2023 2022 United States $ 21,831 $ 22,416 International 12,209 12,103 $ 34,040 $ 34,519 |
The Company (Details)
The Company (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Jun. 15, 2023 | Dec. 31, 2022 |
Lessee, Lease, Description [Line Items] | |||
Operating lease right-of-use assets | $ 19,173 | $ 14,708 | |
Operating lease liability | $ 19,846 | ||
Woodland Hills Office Lease | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease extension term | 5 years | ||
Operating lease right-of-use assets | $ 7,300 | ||
Operating lease liability | $ 7,300 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2023 USD ($) customer bank segment reportingUnit | Dec. 31, 2022 USD ($) customer | Dec. 31, 2021 USD ($) customer | Jan. 26, 2022 | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Number of operating segments | segment | 1 | |||
Allowance for credit loss | $ 0 | |||
Capitalized computer software, amortization | 19,100,000 | $ 13,600,000 | $ 9,000,000 | |
Capitalized computer software, accumulated amortization | 60,600,000 | 41,600,000 | ||
Impairment of cloud computing implementation costs | $ 0 | 5,330,000 | 0 | |
Number of reporting units | reportingUnit | 1 | |||
Deferred revenue recognized | $ 274,300,000 | 239,900,000 | 189,600,000 | |
Contracted not recognized revenue | $ 842,700,000 | |||
Contract asset, deferred customer acquisition costs, recognition period | 5 years | |||
Contract asset, renewal fees amortization, period | 5 years | |||
Advertising cost expense | $ 11,800,000 | 9,500,000 | $ 9,000,000 | |
Stock-based compensation award vesting period | 4 years | |||
Estimated dividend yield | 0% | 0% | ||
Foreign currency transaction losses | $ 600,000 | (1,900,000) | $ (1,000,000) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | ||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Contracted not recognized revenue, expects to recognize revenue over next 12 months, percentage | 57.30% | |||
Remaining performance obligation, expected timing of satisfaction, period | 12 months | |||
FourQ Systems, Inc. | Measurement Input, Expected Term | ||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Contingent consideration, liability, measurement input | 3 | |||
Prepaid Expenses and Other Current Assets | ||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Restricted cash | $ 200,000 | 200,000 | ||
Sales and Marketing Expenses | ||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Amortization expense | $ 34,100,000 | $ 29,700,000 | $ 22,400,000 | |
Computer Software Development Costs | ||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Capitalized software, estimated useful life | 3 years | |||
Furniture and Fixtures | ||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Property and equipment, useful life | 5 years | |||
Leasehold Improvements | ||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Property and equipment, useful life | 7 years | |||
Revenues | ||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Number of single customers comprising 10% or more | customer | 0 | 0 | 0 | |
Accounts Receivable | ||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Number of single customers comprising 10% or more | customer | 0 | 0 | ||
Cash and Cash Equivalents | ||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Bank where interest-bearing accounts exceed FDIC insured limits | bank | 1 | |||
Investments | ||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Banks where company's investments are held | bank | 2 | |||
Minimum | ||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Capitalized software, estimated useful life | 1 year | |||
Subscription contract, period | 1 year | |||
Minimum | Machinery and Equipment | ||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Property and equipment, useful life | 3 years | |||
Minimum | Purchased Software | ||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Property and equipment, useful life | 3 years | |||
Maximum | ||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Capitalized software, estimated useful life | 11 years | |||
Subscription contract, period | 3 years | |||
Maximum | Machinery and Equipment | ||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Property and equipment, useful life | 5 years | |||
Maximum | Purchased Software | ||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||||
Property and equipment, useful life | 5 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Weighted Average Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | ||
Expected term (years) | 6 years | |
Expected volatility | 47% | |
Risk free interest rate | 1% | |
Expected dividend yield | 0% | 0% |
Revenues - Schedule of Disaggre
Revenues - Schedule of Disaggregation of Revenues by Geographic Region (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 589,996 | $ 522,938 | $ 425,706 |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | 422,192 | 373,423 | 304,603 |
International | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 167,804 | $ 149,515 | $ 121,103 |
Redeemable Non-Controlling In_3
Redeemable Non-Controlling Interest - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2021 | Oct. 31, 2018 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Redeemable Noncontrolling Interest [Line Items] | |||||
Investment from redeemable non-controlling interest | $ 2,200 | $ 0 | $ 0 | $ 2,171 | |
BlackLine K.K. | BlackLine K.K. | |||||
Redeemable Noncontrolling Interest [Line Items] | |||||
Cash consideration | $ 4,500 | ||||
Business combination, outstanding common stock percentage | 51% | ||||
Additional investment in subsidiary | $ 2,300 |
Redeemable Non-Controlling In_4
Redeemable Non-Controlling Interest - Summary of Redeemable Non-Controlling Interest (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Redeemable Noncontrolling Interest, Equity [Roll Forward] | |||
Balance at beginning of period | $ 23,895 | $ 28,699 | $ 12,524 |
Investment by redeemable non-controlling interest | 0 | 0 | 2,171 |
Net income (loss) attributable to redeemable non-controlling interest (excluding adjustment to non-controlling interest) | 892 | (369) | (910) |
Foreign currency translation | (58) | (304) | (163) |
Adjustment to redeemable non-controlling interest | 5,334 | (4,131) | 15,077 |
Balance at end of period | $ 30,063 | $ 23,895 | $ 28,699 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) $ in Thousands | 12 Months Ended | |||
Sep. 12, 2023 USD ($) | Jan. 26, 2022 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Data Interconnect | ||||
Business Acquisition [Line Items] | ||||
Cash consideration | $ 11,394 | |||
Transaction related costs | $ 1,200 | |||
Weighted average useful lives | 4 years 9 months 18 days | |||
Estimated fair value of intangible assets acquired | $ 8,800 | |||
Purchase price consideration | 11,403 | |||
Data Interconnect | Developed technology | ||||
Business Acquisition [Line Items] | ||||
Estimated fair value of intangible assets acquired | 8,110 | |||
Data Interconnect | Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Estimated fair value of intangible assets acquired | $ 690 | |||
FourQ Systems, Inc. | ||||
Business Acquisition [Line Items] | ||||
Cash consideration | $ 160,224 | |||
Transaction related costs | $ 3,400 | |||
Weighted average useful lives | 6 years 6 months | |||
Estimated fair value of intangible assets acquired | $ 74,400 | |||
Maximum contingent consideration to be distributed | 73,200 | $ 73,200 | ||
Fair value of contingent consideration | 55,947 | |||
Purchase price consideration | 214,214 | |||
FourQ Systems, Inc. | Developed technology | ||||
Business Acquisition [Line Items] | ||||
Estimated fair value of intangible assets acquired | 64,900 | |||
FourQ Systems, Inc. | Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Estimated fair value of intangible assets acquired | $ 9,500 | |||
FourQ Systems, Inc. | Measurement Input, Expected Term | ||||
Business Acquisition [Line Items] | ||||
Contingent consideration, liability, measurement input | 3 |
Business Combinations - Estimat
Business Combinations - Estimated Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Sep. 12, 2023 | Jan. 26, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 448,965 | $ 443,861 | $ 289,710 | ||
Data Interconnect | |||||
Business Acquisition [Line Items] | |||||
Cash consideration | $ 11,394 | ||||
Post-acquisition working capital adjustment | 9 | ||||
Purchase price consideration | 11,403 | ||||
Cash and cash equivalents | 27 | ||||
Accounts receivable, net | 916 | ||||
Prepaid expenses and other current assets | 893 | ||||
Other assets | 58 | ||||
Property and equipment | 49 | ||||
Operating lease right-of-use assets | 402 | ||||
Intangible assets | 8,800 | ||||
Goodwill | 5,104 | ||||
Accounts payable | (665) | ||||
Accrued liabilities | (1,570) | ||||
Deferred revenue, current | (98) | ||||
Operating lease liabilities | (402) | ||||
Deferred tax liabilities, net | (2,111) | ||||
Total consideration | $ 11,403 | ||||
FourQ Systems, Inc. | |||||
Business Acquisition [Line Items] | |||||
Cash consideration | $ 160,224 | ||||
Post-acquisition working capital adjustment | (635) | ||||
Contingent consideration | 55,947 | ||||
Less: One-time expense related to accelerated vesting | (1,322) | ||||
Purchase price consideration | 214,214 | ||||
Cash and cash equivalents | 1,164 | ||||
Accounts receivable, net | 1,853 | ||||
Prepaid expenses and other current assets | 410 | ||||
Other assets | 143 | ||||
Property and equipment | 659 | ||||
Intangible assets | 74,400 | ||||
Goodwill | 154,151 | ||||
Accounts payable | (1,537) | ||||
Accrued liabilities | (2,585) | ||||
Deferred revenue | (231) | ||||
Deferred tax liabilities, net | (14,213) | ||||
Total consideration | $ 214,214 |
Business Combinations - Acquire
Business Combinations - Acquired Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 12, 2023 | Jan. 26, 2022 |
FourQ Systems, Inc. | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Fair Value | $ 74,400 | |
FourQ Systems, Inc. | Developed technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 7 years | |
Fair Value | $ 64,900 | |
FourQ Systems, Inc. | Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 3 years | |
Fair Value | $ 9,500 | |
Data Interconnect | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Fair Value | $ 8,800 | |
Data Interconnect | Developed technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 5 years | |
Fair Value | $ 8,110 | |
Data Interconnect | Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Amortization Period | 3 years | |
Fair Value | $ 690 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Summary of Carrying Value of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 182,457 | $ 173,657 |
Accumulated Amortization | (103,401) | (82,793) |
Net Carrying Amount | 79,056 | 90,864 |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 15,977 | 15,977 |
Accumulated Amortization | (15,977) | (14,913) |
Net Carrying Amount | 0 | 1,064 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 137,368 | 129,258 |
Accumulated Amortization | (66,900) | (54,462) |
Net Carrying Amount | 70,468 | 74,796 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 26,779 | 26,089 |
Accumulated Amortization | (19,342) | (12,552) |
Net Carrying Amount | 7,437 | 13,537 |
Defensive patent | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,333 | 2,333 |
Accumulated Amortization | (1,182) | (866) |
Net Carrying Amount | $ 1,151 | $ 1,467 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Amortization Expense by Operation Expense Categories (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expenses | $ 20,608 | $ 19,731 | $ 10,479 |
Cost of revenues | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expenses | 12,438 | 11,315 | 2,685 |
Sales and marketing | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expenses | 6,791 | 6,505 | 5,883 |
General and administrative | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expenses | $ 1,379 | $ 1,911 | $ 1,911 |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill - Summary of Estimated Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2024 | $ 19,872 | |
2025 | 14,011 | |
2026 | 13,597 | |
2027 | 13,075 | |
2028 | 12,412 | |
Thereafter | 6,089 | |
Net Carrying Amount | $ 79,056 | $ 90,864 |
Intangible Assets and Goodwil_5
Intangible Assets and Goodwill - Changes in Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill [Roll Forward] | ||
Balance beginning | $ 443,861 | $ 289,710 |
Additions from acquisitions | 5,104 | 154,151 |
Balance ending | $ 448,965 | $ 443,861 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Investments in Marketable Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 932,850 | $ 875,456 |
Gross Unrealized Gains | 740 | 52 |
Gross Unrealized Losses | (235) | (1,425) |
Fair Value | 933,355 | 874,083 |
U.S. treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 523,344 | 418,941 |
Gross Unrealized Gains | 737 | 9 |
Gross Unrealized Losses | (107) | (1,047) |
Fair Value | 523,974 | 417,903 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 64,597 | |
Gross Unrealized Gains | 3 | |
Gross Unrealized Losses | (296) | |
Fair Value | 64,304 | |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 241,428 | 278,406 |
Gross Unrealized Gains | 1 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 241,429 | 278,406 |
U.S. government agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 168,078 | 113,512 |
Gross Unrealized Gains | 2 | 40 |
Gross Unrealized Losses | (128) | (82) |
Fair Value | $ 167,952 | $ 113,470 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2023 USD ($) position | Dec. 31, 2022 USD ($) position | |
Regulated Operations [Abstract] | ||
Contractual maturity (less than) | 2 years | |
Net gains on maturities of marketable securities reclassified from accumulated other comprehensive loss to earnings | $ 33,900,000 | $ 8,900,000 |
Securities in continuous loss position, less than 12 Months, estimated fair value | 286,600,000 | 521,800,000 |
Securities in continuous loss position, less than 12 Months, unrealized losses | $ (200,000) | $ (1,400,000) |
Number of securities in continuous unrealized loss position, greater than 12 months | position | 0 | 0 |
Allowance for credit loss | $ 0 | $ 0 |
Balance Sheet Components - Summ
Balance Sheet Components - Summary of Amortized Cost and Fair Values of Marketable Securities, by Remaining Contractual Maturity (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Amortized Cost | |
Maturing within 1 year | $ 906,556 |
Maturing between 1 and 2 years | 26,294 |
Total | 932,850 |
Fair Value | |
Maturing within 1 year | 907,107 |
Maturing between 1 and 2 years | 26,248 |
Total | $ 933,355 |
Balance Sheet Components - Othe
Balance Sheet Components - Other Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Regulated Operations [Abstract] | |||
Deferred customer acquisition costs | $ 89,900,000 | $ 89,100,000 | |
Impairment of cloud computing implementation costs | $ 0 | $ 5,330,000 | $ 0 |
Balance Sheet Components - Sc_2
Balance Sheet Components - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Regulated Operations [Abstract] | ||
Accrued salaries and employee benefits | $ 33,344 | $ 39,043 |
Accrued income and other taxes payable | 9,408 | 9,415 |
Accrued restructuring costs | 1,569 | 1,737 |
Other accrued expenses and current liabilities | 15,369 | 8,405 |
Accrued expenses and other current liabilities, total | $ 59,690 | $ 58,600 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 1,140,566 | $ 1,035,405 |
Liabilities | ||
Contingent consideration | 0 | 41,549 |
Total liabilities | 0 | 41,549 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 148,298 | 101,919 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 38,926 | 59,405 |
Marketable securities | 241,429 | 278,406 |
U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 19,987 | |
Marketable securities | 167,952 | 113,471 |
U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 523,974 | 417,903 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 64,301 | |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 672,272 | 519,822 |
Liabilities | ||
Contingent consideration | 0 | 8,000 |
Total liabilities | 0 | 8,000 |
Level 1 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 148,298 | 101,919 |
Level 1 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Marketable securities | 0 | 0 |
Level 1 | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Marketable securities | 0 | 0 |
Level 1 | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 523,974 | 417,903 |
Level 1 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 468,294 | 515,583 |
Liabilities | ||
Contingent consideration | 0 | 0 |
Total liabilities | 0 | 0 |
Level 2 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Level 2 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 38,926 | 59,405 |
Marketable securities | 241,429 | 278,406 |
Level 2 | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 19,987 | |
Marketable securities | 167,952 | 113,471 |
Level 2 | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Level 2 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 64,301 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Liabilities | ||
Contingent consideration | 0 | 33,549 |
Total liabilities | 0 | 33,549 |
Level 3 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Level 3 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Marketable securities | 0 | 0 |
Level 3 | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Marketable securities | 0 | 0 |
Level 3 | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 0 | 0 |
Level 3 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 0 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Changes in Contingent Consideration Liability (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Additions in the period | $ 0 | $ 55,947 | $ 0 |
Payments in the period | (8,000) | 0 | 0 |
Contingent Consideration | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning fair value | 41,549 | 20,732 | 23,490 |
Change in fair value | (33,549) | (35,130) | (2,758) |
Ending fair value | $ 0 | $ 41,549 | $ 20,732 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) | 12 Months Ended | ||||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Nov. 15, 2023 USD ($) | Jan. 26, 2022 USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Change in fair value of contingent consideration | $ (33,549,000) | $ (35,130,000) | $ (2,758,000) | ||
Contingent consideration, current | 0 | 8,000,000 | |||
FourQ Systems, Inc. | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Maximum contingent consideration to be distributed | 73,200,000 | $ 73,200,000 | |||
Change in fair value of contingent consideration | 33,500,000 | $ 22,400,000 | |||
Contingent consideration, current | 0 | ||||
FourQ Systems, Inc. | Measurement Input, Expected Term | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Contingent consideration, liability, measurement input | 3 | ||||
BlackLine Systems, Inc. | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Maximum contingent consideration to be distributed | 8,000,000 | $ 8,000,000 | |||
Contingent consideration, current | $ 0 | $ 0 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 59,248 | $ 56,408 |
Less: accumulated depreciation and amortization | (44,381) | (36,597) |
Property and equipment, net | 14,867 | 19,811 |
Computers and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 22,396 | 22,324 |
Purchased software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 14,007 | 12,519 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,197 | 4,051 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 16,198 | 14,943 |
Data center equipment - finance lease | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,231 | 1,231 |
Building - finance lease | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,219 | 1,219 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 0 | $ 121 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense related to property and equipment | $ 50,099 | $ 42,816 | $ 27,128 |
Property and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense related to property and equipment | $ 10,400 | $ 9,500 | $ 7,600 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 12 Months Ended |
Dec. 31, 2023 lease | |
Lessee, Lease, Description [Line Items] | |
Number of leased properties | 18 |
Lease option to terminate (within) | 1 year |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Leases, remaining lease terms | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Leases, remaining lease terms | 11 years |
Lease extension period (up to) | 9 years |
Leases - Summary of Lease Expen
Leases - Summary of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finance lease cost: | |||
Amortization of assets | $ 1,020 | $ 652 | $ 46 |
Interest on lease liabilities | 45 | 44 | 3 |
Operating lease cost | 6,663 | 5,767 | 4,792 |
Short-term lease cost | 378 | 388 | 336 |
Variable cost | 1,237 | 1,190 | 741 |
Total lease cost | $ 9,343 | $ 8,041 | $ 5,918 |
Leases - Cash Flow and Other In
Leases - Cash Flow and Other Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities | |||
Financing cash flows from finance leases | $ 1,036 | $ 662 | $ 15 |
Operating cash flows from operating lease liabilities | $ 7,467 | $ 5,338 | $ 5,390 |
Weighted average remaining lease term at end of period (in years): | |||
Finance leases | 9 months 18 days | 1 year 8 months 12 days | 2 years 10 months 24 days |
Operating leases | 4 years 2 months 12 days | 3 years 10 months 24 days | 4 years 3 months 18 days |
Weighted average discount rate: | |||
Finance leases | 3.50% | 3.70% | 2.20% |
Operating leases | 5.70% | 2.80% | 2.30% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Liabilities (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Finance Leases | |
2024 | $ 787 |
2025 | 4 |
2026 | 0 |
2027 | 0 |
2028 | 0 |
Thereafter | 0 |
Total lease payments | 791 |
Less imputed interest | (9) |
Total lease obligations | 782 |
Operating Leases | |
2024 | 4,676 |
2025 | 5,825 |
2026 | 5,010 |
2027 | 3,639 |
2028 | 2,836 |
Thereafter | 1,073 |
Total lease payments | 23,059 |
Less imputed interest | (3,213) |
Total lease obligations | $ 19,846 |
Convertible Senior Notes - Addi
Convertible Senior Notes - Additional Information (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Mar. 31, 2021 USD ($) day reportingUnit $ / shares shares | Aug. 31, 2019 USD ($) day $ / shares shares | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jan. 01, 2022 USD ($) | Dec. 31, 2020 USD ($) | |
Debt Instrument [Line Items] | |||||||
Proceeds from issuance of convertible senior notes, net of issuance costs | $ 0 | $ 0 | $ 1,128,794 | ||||
Loss on extinguishment of debt | 0 | 0 | (7,012) | ||||
Adjustment to equity for adoption of ASU 2020-06 | 260,881 | 111,868 | 325,036 | $ 422,070 | |||
Interest expense related to amortization of debt discount and issuance costs | 5,535 | 5,511 | 55,538 | ||||
Additional Paid-in Capital | |||||||
Debt Instrument [Line Items] | |||||||
Adjustment to equity for adoption of ASU 2020-06 | 474,863 | 385,709 | 625,883 | 622,768 | |||
Accumulated Deficit | |||||||
Debt Instrument [Line Items] | |||||||
Adjustment to equity for adoption of ASU 2020-06 | $ (214,802) | $ (272,969) | (301,735) | $ (201,651) | |||
Cumulative Effect, Period of Adoption, Adjustment | |||||||
Debt Instrument [Line Items] | |||||||
Adjustment to equity for adoption of ASU 2020-06 | (262,130) | ||||||
Cumulative Effect, Period of Adoption, Adjustment | Additional Paid-in Capital | |||||||
Debt Instrument [Line Items] | |||||||
Adjustment to equity for adoption of ASU 2020-06 | (324,418) | ||||||
Cumulative Effect, Period of Adoption, Adjustment | Accumulated Deficit | |||||||
Debt Instrument [Line Items] | |||||||
Adjustment to equity for adoption of ASU 2020-06 | 62,288 | ||||||
0.125% Convertible Senior Notes Due 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Convertible senior notes interest rate | 0.125% | ||||||
Proceeds from issuance of convertible senior notes, net of issuance costs | $ 500,000 | ||||||
Option to purchase principal amount | $ 65,000 | ||||||
Conversion price (in usd per share) | $ / shares | $ 73.40 | ||||||
Debt repurchase amount percentage prior to maturity | 100% | ||||||
Aggregate principal repurchased | $ 250,000 | ||||||
Debt, implied interest rate | 4.94% | ||||||
Equity component of partial repurchase of 2024 convertible senior notes | $ 219,300 | 219,284 | |||||
Loss on extinguishment of debt | $ 7,000 | ||||||
0.125% Convertible Senior Notes Due 2024 | Additional Paid-in Capital | |||||||
Debt Instrument [Line Items] | |||||||
Equity component of partial repurchase of 2024 convertible senior notes | $ 219,284 | ||||||
0.125% Convertible Senior Notes Due 2024 | Cumulative Effect, Period of Adoption, Adjustment | |||||||
Debt Instrument [Line Items] | |||||||
Adjustment to equity for adoption of ASU 2020-06 | $ (31,100) | ||||||
0.125% Convertible Senior Notes Due 2024 | Cumulative Effect, Period of Adoption, Adjustment | Additional Paid-in Capital | |||||||
Debt Instrument [Line Items] | |||||||
Adjustment to equity for adoption of ASU 2020-06 | (55,600) | ||||||
0.125% Convertible Senior Notes Due 2024 | Cumulative Effect, Period of Adoption, Adjustment | Accumulated Deficit | |||||||
Debt Instrument [Line Items] | |||||||
Adjustment to equity for adoption of ASU 2020-06 | 24,500 | ||||||
0.125% Convertible Senior Notes Due 2024 | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Percentage of principal amount of notes declared as accrued based on certain customary events of default | 25% | ||||||
0.125% Convertible Senior Notes Due 2024 | Condition One | |||||||
Debt Instrument [Line Items] | |||||||
Convertible senior notes, trading days | day | 20 | ||||||
Convertible senior notes, consecutive trading days | day | 30 | ||||||
0.125% Convertible Senior Notes Due 2024 | Condition One | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Percentage of conversion price for notes on each applicable trading day | 130% | ||||||
0.125% Convertible Senior Notes Due 2024 | Condition Two | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Convertible senior notes, consecutive trading days | day | 5 | ||||||
Business day | day | 5 | ||||||
0.125% Convertible Senior Notes Due 2024 | Condition Two | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Percentage of conversion price for notes on each applicable trading day | 98% | ||||||
0.125% Convertible Senior Notes Due 2024 | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Initial conversion rate | 0.0136244 | ||||||
Effective interest rate, percentage | 0.65% | 0.65% | |||||
Estimated fair value of convertible senior notes | $ 255,900 | ||||||
Interest expense related to amortization of debt discount and issuance costs | 1,300 | $ 1,300 | |||||
Coupon interest expense | $ 300 | $ 300 | |||||
Capped calls, common stock, expected to offset potential economic dilution of stock up to initial cap price (in shares) | shares | 3,400 | ||||||
Cap calls, strike price (in usd per share) | $ / shares | $ 73.40 | ||||||
Cap price per share (in usd per share) | $ / shares | $ 106.76 | ||||||
Capped calls cost | $ 46,200 | ||||||
Convertible Senior Notes due 2026 | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds used to repurchase aggregate principal of notes | $ 432,200 | ||||||
Convertible Senior Notes due 2026 | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Convertible senior notes interest rate | 0% | ||||||
Proceeds from issuance of convertible senior notes, net of issuance costs | $ 1,150,000 | ||||||
Option to purchase principal amount | $ 150,000 | ||||||
Initial conversion rate | 0.0060156 | ||||||
Conversion price (in usd per share) | $ / shares | $ 166.23 | ||||||
Debt repurchase amount percentage prior to maturity | 100% | ||||||
Effective interest rate, percentage | 0.37% | 0.37% | |||||
Interest expense related to amortization of debt discount and issuance costs | $ 4,200 | $ 4,200 | |||||
Debt discount | $ 276,300 | ||||||
Debt transaction costs | 21,200 | ||||||
Transaction costs allocated to liability component of notes | 16,100 | ||||||
Transaction costs allocated to equity component of notes | 5,100 | ||||||
Deferred tax liability, net | $ 2,400 | ||||||
Capped calls, common stock, expected to offset potential economic dilution of stock up to initial cap price (in shares) | shares | 6,900 | ||||||
Cap calls, strike price (in usd per share) | $ / shares | $ 166.23 | ||||||
Cap price per share (in usd per share) | $ / shares | $ 233.31 | ||||||
Capped calls cost | $ 102,400 | ||||||
Convertible Senior Notes due 2026 | Senior Notes | Cumulative Effect, Period of Adoption, Adjustment | |||||||
Debt Instrument [Line Items] | |||||||
Adjustment to equity for adoption of ASU 2020-06 | (233,400) | ||||||
Convertible Senior Notes due 2026 | Senior Notes | Cumulative Effect, Period of Adoption, Adjustment | Additional Paid-in Capital | |||||||
Debt Instrument [Line Items] | |||||||
Adjustment to equity for adoption of ASU 2020-06 | (271,200) | ||||||
Convertible Senior Notes due 2026 | Senior Notes | Cumulative Effect, Period of Adoption, Adjustment | Accumulated Deficit | |||||||
Debt Instrument [Line Items] | |||||||
Adjustment to equity for adoption of ASU 2020-06 | $ 37,800 | ||||||
Convertible Senior Notes due 2026 | Senior Notes | Measurement Input, Credit Spread | |||||||
Debt Instrument [Line Items] | |||||||
Estimated interest rate | 0.0565 | ||||||
Convertible Senior Notes due 2026 | Senior Notes | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Percentage of principal amount of notes declared as accrued based on certain customary events of default | 25% | ||||||
Convertible Senior Notes due 2026 | Senior Notes | Condition One | |||||||
Debt Instrument [Line Items] | |||||||
Convertible senior notes, trading days | reportingUnit | 20 | ||||||
Convertible senior notes, consecutive trading days | reportingUnit | 30 | ||||||
Convertible Senior Notes due 2026 | Senior Notes | Condition One | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Percentage of conversion price for notes on each applicable trading day | 130% | ||||||
Convertible Senior Notes due 2026 | Senior Notes | Condition Two | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Convertible senior notes, consecutive trading days | day | 5 | ||||||
Business day | day | 5 | ||||||
Convertible Senior Notes due 2026 | Senior Notes | Condition Two | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Percentage of conversion price for notes on each applicable trading day | 98% | ||||||
Convertible Senior Notes due 2026 | Senior Notes | Level 2 | |||||||
Debt Instrument [Line Items] | |||||||
Estimated fair value of convertible senior notes | $ 1,000,000 |
Convertible Senior Notes - Summ
Convertible Senior Notes - Summary of Notes (Details) - Senior Notes - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
0.125% Convertible Senior Notes Due 2024 | ||
Debt Instrument [Line Items] | ||
Principal | $ 250,000 | $ 250,000 |
Unamortized debt issuance costs | (767) | (2,069) |
Net carrying amount | 249,233 | 247,931 |
Convertible Senior Notes due 2026 | ||
Debt Instrument [Line Items] | ||
Principal | 1,150,000 | 1,150,000 |
Unamortized debt issuance costs | (9,392) | (13,625) |
Net carrying amount | $ 1,140,608 | $ 1,136,375 |
Restructuring Costs - Narrative
Restructuring Costs - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Aug. 23, 2023 position | Dec. 31, 2022 position | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | $ 10,964 | $ 3,841 | $ 0 | ||
Payments for restructuring | 11,132 | ||||
2023 Restructuring Program | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring positions eliminated, expected percent | 9% | ||||
Reduction to workforce, number of positions | position | 166 | ||||
Restructuring costs | 9,815 | ||||
Payments for restructuring | 8,253 | ||||
2022 Restructuring Program | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring positions eliminated, expected percent | 5% | ||||
Reduction to workforce, number of positions | position | 95 | ||||
Restructuring costs | 1,149 | ||||
Payments for restructuring | 2,879 | 2,100 | |||
One-time Termination Benefits | 2023 Restructuring Program | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 9,800 | ||||
One-time Termination Benefits | 2022 Restructuring Program | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | $ 1,100 | $ 3,800 |
Restructuring Costs - Schedule
Restructuring Costs - Schedule of Restructuring Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | |||
Accrual balance as of December 31, 2022 | $ 1,737 | ||
Restructuring costs | 10,964 | $ 3,841 | $ 0 |
Cash payments and adjustments | (11,132) | ||
Accrual balance as of December 31, 2023 | 1,569 | 1,737 | |
2023 Restructuring Program | |||
Restructuring Cost and Reserve [Line Items] | |||
Accrual balance as of December 31, 2022 | 0 | ||
Restructuring costs | 9,815 | ||
Cash payments and adjustments | (8,253) | ||
Accrual balance as of December 31, 2023 | 1,562 | 0 | |
2022 Restructuring Program | |||
Restructuring Cost and Reserve [Line Items] | |||
Accrual balance as of December 31, 2022 | 1,737 | ||
Restructuring costs | 1,149 | ||
Cash payments and adjustments | (2,879) | (2,100) | |
Accrual balance as of December 31, 2023 | $ 7 | $ 1,737 |
Equity Awards - Additional Info
Equity Awards - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Mar. 07, 2023 | Dec. 30, 2022 | Aug. 19, 2022 | Apr. 04, 2022 | Nov. 30, 2016 | Jun. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock-based compensation award vesting period | 4 years | ||||||||
Granted (in shares) | 0 | 0 | |||||||
Cash received from exercise of stock options | $ 19,762,000 | $ 4,687,000 | $ 11,428,000 | ||||||
Stock-based compensation expense | 77,970,000 | 75,884,000 | 65,870,000 | ||||||
Stock-based compensation capitalized as an asset | 3,500,000 | 2,400,000 | 1,800,000 | ||||||
Net operating losses related to foreign tax benefits for equity awards | $ 100,000 | 100,000 | 600,000 | ||||||
Employee Stock Purchase Plan ("ESPP") | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Common shares reserved for future issuance (in shares) | 800,000 | ||||||||
Weighted-average period to recognize unrecognized compensation expense | 1 year | ||||||||
Total unrecognized compensation cost | $ 2,800,000 | ||||||||
Stock-based compensation expense | $ 3,300,000 | 3,300,000 | $ 3,800,000 | ||||||
Right to purchase shares at fair value of stock at the time of grant, percentage | 85% | ||||||||
Right to purchase shares at fair value at the time of exercise, percentage | 85% | ||||||||
Stock Options | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Weighted average grant date fair value per share, granted (usd per share) | $ 50.77 | ||||||||
Aggregate intrinsic value, exercised | $ 15,200,000 | 13,400,000 | $ 38,300,000 | ||||||
Cash received from exercise of stock options | 19,800,000 | $ 4,700,000 | $ 11,400,000 | ||||||
Unrecognized compensation expense | $ 2,700,000 | ||||||||
Weighted-average period to recognize unrecognized compensation expense | 1 year | ||||||||
Restricted Stock Units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Weighted-average period to recognize unrecognized compensation expense | 2 years 7 months 6 days | ||||||||
Intrinsic value | $ 137,900,000 | ||||||||
Total unrecognized compensation cost | $ 125,800,000 | ||||||||
Restricted stock units - performance and service conditions | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock-based compensation award vesting period | 3 years | 3 years | |||||||
Weighted-average period to recognize unrecognized compensation expense | 2 months 12 days | ||||||||
Intrinsic value | $ 7,100,000 | ||||||||
Total unrecognized compensation cost | $ 500,000 | ||||||||
Granted (in shares) | 300,000 | 200,000 | 200,000 | 166,000 | |||||
Grant date fair value (usd per share) | $ 300,000 | $ 5,300,000 | |||||||
Restricted stock units - performance and service conditions | Vesting period one | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Grant date fair value (usd per share) | $ 4,800,000 | ||||||||
Restricted stock units - performance and service conditions | Vesting period two | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Grant date fair value (usd per share) | $ 6,300,000 | ||||||||
Restricted Stock Units, Performance and Service Based , No Grant Date | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Intrinsic value | $ 14,600,000 | ||||||||
Granted (in shares) | 156,000 | ||||||||
Restricted Stock Units, Performance, Market and Service Based | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Intrinsic value | $ 0 | ||||||||
Granted (in shares) | 0 | ||||||||
2016 Equity Incentive Plan | Stock Options and Restricted Stock Units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Maximum number of shares issuable (in shares) | 6,200,000 | ||||||||
Stock option, contractual terms | 10 years | ||||||||
Common shares reserved for future issuance (in shares) | 18,900,000 | ||||||||
2016 Equity Incentive Plan | Stock Options and Restricted Stock Units | Minimum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock-based compensation award vesting period | 3 years | ||||||||
2016 Equity Incentive Plan | Stock Options and Restricted Stock Units | Maximum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock-based compensation award vesting period | 4 years |
Equity Awards - Summary of Stoc
Equity Awards - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding Beginning balance (in shares) | 2,431 | |
Exercised (in shares) | (590) | |
Forfeited/canceled (in shares) | (148) | |
Outstanding Ending balance (in shares) | 1,693 | 2,431 |
Exercisable at End of period (in shares) | 1,607 | |
Weighted- Average Exercise Price | ||
Outstanding at Beginning of period (usd per share) | $ 44.98 | |
Exercised (usd per share) | 33.82 | |
Forfeited/canceled (usd per share) | 81.37 | |
Outstanding at End of period (usd per share) | 45.67 | $ 44.98 |
Exercisable at End of period (usd per share) | $ 43.79 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract] | ||
Weighted Average Remaining Contractual Term (Years) | 4 years 7 months 6 days | 5 years 6 months |
Aggregate Intrinsic Value, Outstanding at Beginning of period | $ 64,903 | |
Aggregate Intrinsic Value, Outstanding at End of period | $ 37,077 | $ 64,903 |
Equity Awards - Summary of Rest
Equity Awards - Summary of Restricted Stock Units Activity (Details) - $ / shares shares in Thousands | 12 Months Ended | |||
Mar. 07, 2023 | Dec. 30, 2022 | Apr. 04, 2022 | Dec. 31, 2023 | |
Restricted stock units, service-based | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Nonvested, Beginning balance (in shares) | 2,202 | |||
Granted (in shares) | 1,451 | |||
Vested (in shares) | (916) | |||
Forfeited/canceled (in shares) | (529) | |||
Nonvested, Ending balance (in shares) | 2,208 | |||
Weighted-Average Grant Date Fair Value | ||||
Nonvested at Beginning balance (usd per share) | $ 74.42 | |||
Granted (usd per share) | 64.35 | |||
Vested (usd per share) | 72.92 | |||
Forfeited/canceled (usd per share) | 72.77 | |||
Nonvested at Ending balance (usd per share) | $ 68.82 | |||
Restricted stock units - performance and service conditions | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Nonvested, Beginning balance (in shares) | 69 | |||
Granted (in shares) | 300 | 200 | 200 | 166 |
Performance adjustment (in shares) | (28) | |||
Vested (in shares) | (41) | |||
Forfeited/canceled (in shares) | (53) | |||
Nonvested, Ending balance (in shares) | 113 | |||
Weighted-Average Grant Date Fair Value | ||||
Nonvested at Beginning balance (usd per share) | $ 75.58 | |||
Granted (usd per share) | 67.17 | |||
Performance adjustment (in usd per share) | 75.58 | |||
Vested (usd per share) | 75.66 | |||
Forfeited/canceled (usd per share) | 67.23 | |||
Nonvested at Ending balance (usd per share) | $ 67.17 | |||
Restricted Stock Units, Performance and Service Based , No Grant Date | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Nonvested, Beginning balance (in shares) | 138 | |||
Granted (in shares) | 156 | |||
Vested (in shares) | 0 | |||
Forfeited/canceled (in shares) | (59) | |||
Nonvested, Ending balance (in shares) | 235 | |||
Restricted Stock Units, Performance, Market and Service Based | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Nonvested, Beginning balance (in shares) | 189 | |||
Granted (in shares) | 0 | |||
Vested (in shares) | 0 | |||
Forfeited/canceled (in shares) | (189) | |||
Nonvested, Ending balance (in shares) | 0 | |||
Weighted-Average Grant Date Fair Value | ||||
Nonvested at Beginning balance (usd per share) | $ 75.90 | |||
Forfeited/canceled (usd per share) | $ 75.90 |
Equity Awards - Schedule of Wei
Equity Awards - Schedule of Weighted Average Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 6 years | ||
Volatility | 47% | ||
Employee Stock Purchase Plan ("ESPP") | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk free interest rate, minimum | 4.50% | 1.40% | 0% |
Risk free interest rate, maximum | 5.40% | 4.50% | 0.20% |
Employee Stock Purchase Plan ("ESPP") | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 6 months | 6 months | 6 months |
Volatility | 39.80% | 39.30% | 23.40% |
Employee Stock Purchase Plan ("ESPP") | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 1 year | 1 year | 1 year |
Volatility | 58.50% | 65.50% | 46.60% |
Equity Awards - Summary of St_2
Equity Awards - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | $ 77,970 | $ 75,884 | $ 65,870 |
Cost of revenues | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | 10,342 | 8,595 | 8,410 |
Sales and marketing | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | 24,152 | 26,310 | 22,756 |
Research and development | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | 13,095 | 14,382 | 11,110 |
General and administrative | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expense | $ 30,381 | $ 26,597 | $ 23,594 |
Income Taxes - Components of In
Income Taxes - Components of Income (Loss) Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 62,745 | $ (41,534) | $ (96,836) |
International | (2,236) | (5,877) | (4,023) |
Income (loss) before income taxes | $ 60,509 | $ (47,411) | $ (100,859) |
Income Taxes - Components of To
Income Taxes - Components of Total Provision for (Benefits from) Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current | |||
Federal | $ 272 | $ 0 | $ 0 |
State | 859 | 316 | 63 |
Foreign | 1,844 | 564 | 889 |
Total current tax expense | 2,975 | 880 | 952 |
Deferred | |||
Federal | 202 | (12,709) | 0 |
State | 100 | (1,503) | 0 |
Foreign | (1,827) | (188) | (817) |
Total deferred tax provision | (1,525) | (14,400) | (817) |
Total provision for (benefit from) income taxes | $ 1,450 | $ (13,520) | $ 135 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory U.S. Federal Tax Rate to Effective Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Federal statutory income tax rate | 21% | 21% | 21% |
State tax, net of federal benefit | 2.70% | (1.20%) | (0.10%) |
Federal tax credits | (9.80%) | 10% | 6.10% |
Change in valuation allowance | (13.80%) | (1.80%) | (34.00%) |
Foreign tax differential | 2% | (2.30%) | (1.20%) |
Windfall tax benefits, net related to stock-based compensation | 4.10% | 1.10% | 16.50% |
Nondeductible officer compensation | 6.80% | (11.10%) | (7.50%) |
Nondeductible transaction costs | 0.30% | (1.50%) | 0% |
Contingent consideration | (11.60%) | 15.70% | 0% |
Nondeductible meals and entertainment | 0.70% | (1.10%) | (0.50%) |
Other | 0% | (0.30%) | (0.40%) |
Effective tax rate | 2.40% | 28.50% | (0.10%) |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets | ||||
Net operating loss carryforwards | $ 55,779 | $ 77,711 | ||
Research and other credits | 39,248 | 32,094 | ||
Capitalized R&D | 28,455 | 11,919 | ||
Stock-based compensation | 7,811 | 8,699 | ||
Operating and finance leases | 3,343 | 2,082 | ||
Business interest carryforward | 0 | 3,113 | ||
Accrued expenses and other current liabilities | 5,445 | 6,443 | ||
Other | 779 | 1,737 | ||
Total deferred tax assets | 140,860 | 143,798 | ||
Less: valuation allowance | (92,079) | (99,476) | $ (32,279) | $ (37,691) |
Deferred tax assets, net of valuation allowance | 48,781 | 44,322 | ||
Deferred tax liabilities | ||||
Intangible assets | (18,698) | (21,295) | ||
Prepaid expenses | (24,861) | (24,406) | ||
Operating lease right-of-use and finance lease assets | (2,973) | (1,564) | ||
Accretion on investment | (8,253) | (2,154) | ||
Other | (245) | (443) | ||
Total deferred tax liabilities | (55,030) | (49,862) | ||
Net deferred taxes | $ (6,249) | $ (5,540) |
Income taxes - Summary of Chang
Income taxes - Summary of Changes in Valuation Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Deferred Tax Asset Valuation Allowance [Roll Forward] | |||
Valuation allowance, at beginning of year | $ 99,476 | $ 32,279 | $ 37,691 |
Increase (decrease) in valuation allowance recorded through earnings | (7,063) | 2,880 | 42,240 |
Increase (decrease) in valuation allowance recorded through equity | (334) | 64,317 | (47,652) |
Valuation allowance, at end of year | $ 92,079 | $ 99,476 | $ 32,279 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Examination [Line Items] | |||
Increase (decrease) in valuation allowance recorded through equity | $ (334,000) | $ 64,317,000 | $ (47,652,000) |
Increase (decrease) in valuation allowance recorded through earnings | (7,063,000) | 2,880,000 | 42,240,000 |
Deferred income tax benefit | 1,525,000 | 14,400,000 | 817,000 |
Unrecognized tax benefits that would impact the effective tax rate | 100,000 | 100,000 | |
Penalties and interest (less than) | 100,000 | 100,000 | 0 |
Unrecognized tax benefits, income tax penalties and interest accrued (less than) | 100,000 | 100,000 | |
Foreign | |||
Income Tax Examination [Line Items] | |||
Deferred income tax benefit | 1,700,000 | ||
Tax credits | 3,200,000 | ||
Federal and State | |||
Income Tax Examination [Line Items] | |||
Deferred income tax benefit | $ 14,200,000 | ||
Federal | |||
Income Tax Examination [Line Items] | |||
Net operating loss carryforwards | 177,200,000 | ||
Federal | Research and Development | |||
Income Tax Examination [Line Items] | |||
Tax credits | 22,300,000 | ||
State | |||
Income Tax Examination [Line Items] | |||
Net operating loss carryforwards | 127,900,000 | ||
State | Research and Development | |||
Income Tax Examination [Line Items] | |||
Tax credits | 13,000,000 | ||
State | Enterprise Zone | |||
Income Tax Examination [Line Items] | |||
Tax credits | $ 400,000 | ||
Convertible Senior Notes due 2026 | |||
Income Tax Examination [Line Items] | |||
Increase (decrease) in valuation allowance recorded through equity | $ 64,300,000 |
Income Taxes - Rollforward of T
Income Taxes - Rollforward of Total Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning gross unrecognized tax benefits | $ 5,513 | $ 4,266 | $ 2,523 |
Increases related to prior year tax positions | 274 | 162 | 400 |
Increases related to current year tax positions | 1,317 | 1,085 | 1,343 |
Ending gross unrecognized tax benefits | $ 7,104 | $ 5,513 | $ 4,266 |
Net Income (Loss) per Share - S
Net Income (Loss) per Share - Schedule of Basic and Diluted Loss per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator: | |||
Net income (loss) attributable to BlackLine, Inc., including adjustment to redeemable non-controlling interest | $ 52,833 | $ (29,391) | $ (115,161) |
Denominator: | |||
Weighted average shares (in shares) | 60,849,000 | 59,539,000 | 58,351,000 |
Basic net income (loss) per share attributable to BlackLine, Inc. (in usd per share) | $ 0.87 | $ (0.49) | $ (1.97) |
Numerator: | |||
Net income (loss) attributable to BlackLine, Inc. | $ 52,833 | $ (29,391) | $ (115,161) |
Interest expense | 5,848 | 0 | 0 |
Tax effect of interest expense | (132) | 0 | 0 |
Net income (loss) per share attributable to BlackLine, Inc. (in usd per share) | $ 58,549 | $ (29,391) | $ (115,161) |
Denominator: | |||
Weighted average shares (in shares) | 60,849,000 | 59,539,000 | 58,351,000 |
Dilutive effect of securities (in shares) | 872,000 | 0 | 0 |
Dilutive effect of convertible senior notes (in shares) | 10,324,000 | 0 | 0 |
Shares used to calculate diluted net income (loss) per share (in shares) | 72,045,000 | 59,539,000 | 58,351,000 |
Diluted net income (loss) per share attributable to BlackLine, Inc. (in usd per share) | $ 0.81 | $ (0.49) | $ (1.97) |
Net Income (Loss) per Share - A
Net Income (Loss) per Share - Additional Information (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Conversion option in notes not considered in calculation of diluted net loss per share | 2,985 | 5,029 | 4,242 |
Convertible Notes | 0.125% Convertible Senior Notes Due 2024 | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Conversion option in notes not considered in calculation of diluted net loss per share | 3,400 | ||
Convertible Notes | Convertible Senior Notes due 2026 | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Conversion option in notes not considered in calculation of diluted net loss per share | 6,900 | ||
Convertible Notes | Certain Corporate Events Occur Prior to Maturity Date Or Company Issues Notice of Redemption | 0.125% Convertible Senior Notes Due 2024 | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Conversion option in notes not considered in calculation of diluted net loss per share | 4,700 | ||
Convertible Notes | Certain Corporate Events Occur Prior to Maturity Date Or Company Issues Notice of Redemption | Convertible Senior Notes due 2026 | |||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Conversion option in notes not considered in calculation of diluted net loss per share | 9,900 |
Net Income (Loss) per Share -_2
Net Income (Loss) per Share - Schedule of Potentially Dilutive Shares Excluded From Calculation of Diluted Net Loss Per Share Attributable to Common Stockholders (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total shares excluded from net income (loss) per share | 2,985 | 5,029 | 4,242 |
Stock options - service-only vesting conditions | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total shares excluded from net income (loss) per share | 1,062 | 2,431 | 2,739 |
Restricted stock units - service-only vesting conditions | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total shares excluded from net income (loss) per share | 1,834 | 2,202 | 1,503 |
Restricted stock units - performance and service conditions | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total shares excluded from net income (loss) per share | 16 | 207 | 0 |
Restricted stock units - performance, market, and service conditions | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total shares excluded from net income (loss) per share | 73 | 189 | 0 |
Contingent Consideration (Detai
Contingent Consideration (Details) - USD ($) | Jan. 26, 2022 | Dec. 31, 2023 | Nov. 15, 2023 | Dec. 31, 2022 |
Business Acquisition, Contingent Consideration [Line Items] | ||||
Contingent consideration, current | $ 0 | $ 8,000,000 | ||
FourQ Systems, Inc. | ||||
Business Acquisition, Contingent Consideration [Line Items] | ||||
Contingent consideration liability payment period | 3 years | |||
Maximum contingent consideration to be distributed | $ 73,200,000 | 73,200,000 | ||
Contingent consideration, current | 0 | |||
BlackLine Systems, Inc. | ||||
Business Acquisition, Contingent Consideration [Line Items] | ||||
Maximum contingent consideration to be distributed | 8,000,000 | $ 8,000,000 | ||
Contingent consideration, current | $ 0 | $ 0 |
Defined Contribution Plan - Add
Defined Contribution Plan - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |||
Percentage of employer matching contribution | 100% | ||
Employer matching contribution, percent of employees' gross pay | 3% | ||
Percentage of employer matching contribution, second tier | 50% | ||
Employer matching contribution, percent of employees' gross pay, second tier | 2% | ||
Matching contributions to plan | $ 7.6 | $ 7.4 | $ 5.9 |
Geographic Information - Schedu
Geographic Information - Schedule of Long-lived Assets Which Consist of Property and Equipment, Net and Operating Lease Right-of-use Assets by Geographic Region (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net and operating lease right-of-use assets | $ 34,040 | $ 34,519 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net and operating lease right-of-use assets | 21,831 | 22,416 |
International | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net and operating lease right-of-use assets | $ 12,209 | $ 12,103 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - shares | 12 Months Ended | |||
Feb. 14, 2024 | Mar. 07, 2023 | Apr. 04, 2022 | Dec. 31, 2023 | |
Subsequent Event [Line Items] | ||||
Stock-based compensation award vesting period | 4 years | |||
Restricted stock units - performance and service based | ||||
Subsequent Event [Line Items] | ||||
Stock-based compensation award vesting period | 3 years | 3 years | ||
Subsequent Event | Restricted Stock Units | ||||
Subsequent Event [Line Items] | ||||
Approved award grants (in shares) | 100,000 | |||
Number of common stock entitled to receive upon vesting of award (in shares) | 1 | |||
Subsequent Event | Restricted Stock Units | Vesting period one | ||||
Subsequent Event [Line Items] | ||||
Vesting percentage | 25% | |||
Subsequent Event | Restricted Stock Units | Vesting period two | ||||
Subsequent Event [Line Items] | ||||
Vesting percentage | 12.50% | |||
Subsequent Event | Restricted stock units - performance and service based | ||||
Subsequent Event [Line Items] | ||||
Approved award grants (in shares) | 100,000 | |||
Performance measurement, relative TSR percentage | 50% | |||
Stock-based compensation award vesting period | 3 years | |||
Performance measurement, annualized recurring revenue percentage | 50% |
Uncategorized Items - bl-202312
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2020-06 [Member] |