Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | May 02, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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 $0.01 per share | |
Trading Symbol | BL | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 61,817,410 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001666134 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 331,401 | $ 271,117 |
Marketable securities (amortized cost of $913,653 and $932,850 at March 31, 2024 and December 31, 2023, respectively) | 913,453 | 933,355 |
Accounts receivable, net of allowances of $4,308 and $5,064 at March 31, 2024 and December 31, 2023, respectively | 125,613 | 171,608 |
Prepaid expenses and other current assets | 33,189 | 31,244 |
Total current assets | 1,403,656 | 1,407,324 |
Capitalized software development costs, net | 38,982 | 37,828 |
Property and equipment, net | 13,065 | 14,867 |
Intangible assets, net | 73,860 | 79,056 |
Goodwill | 448,965 | 448,965 |
Operating lease right-of-use assets | 19,196 | 19,173 |
Other assets | 91,161 | 93,552 |
Total assets | 2,088,885 | 2,100,765 |
Current liabilities: | ||
Accounts payable | 1,556 | 8,623 |
Accrued expenses and other current liabilities | 47,133 | 59,690 |
Deferred revenue, current | 306,855 | 320,133 |
Finance lease liabilities, current | 525 | 778 |
Operating lease liabilities, current | 4,233 | 4,108 |
Convertible senior notes, net, current | 249,560 | 249,233 |
Total current liabilities | 609,862 | 642,565 |
Finance lease liabilities, noncurrent | 0 | 4 |
Operating lease liabilities, noncurrent | 15,360 | 15,738 |
Convertible senior notes, net, noncurrent | 1,141,666 | 1,140,608 |
Deferred tax liabilities, net | 5,251 | 6,394 |
Deferred revenue, noncurrent | 2,352 | 904 |
Other long-term liabilities | 660 | 3,608 |
Total liabilities | 1,775,151 | 1,809,821 |
Commitments and contingencies (Note 12) | ||
Redeemable non-controlling interest (Note 3) | 33,900 | 30,063 |
Stockholders' equity: | ||
Common stock, $0.01 par value, 500,000,000 shares authorized, 61,802,503 and 61,515,105 issued and outstanding at March 31, 2024 and December 31, 2023, respectively | 618 | 615 |
Additional paid-in capital | 480,175 | 474,863 |
Accumulated other comprehensive income (loss) | (489) | 205 |
Accumulated deficit | (200,470) | (214,802) |
Total stockholders' equity | 279,834 | 260,881 |
Total liabilities, redeemable non-controlling interest, and stockholders' equity | $ 2,088,885 | $ 2,100,765 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (PARENTHETICAL) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Amortized cost | $ 913,653 | $ 932,850 |
Allowances for credit losses | $ 4,308 | $ 5,064 |
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) | 61,802,503 | 61,515,105 |
Common stock, shares, outstanding (in shares) | 61,802,503 | 61,515,105 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues | ||
Total revenues | $ 157,461 | $ 138,984 |
Cost of revenues | ||
Total cost of revenues | 39,097 | 35,271 |
Gross profit | 118,364 | 103,713 |
Operating expenses | ||
Sales and marketing | 61,111 | 61,931 |
Research and development | 25,015 | 27,105 |
General and administrative | 30,046 | 28,976 |
Restructuring costs | 444 | 1,014 |
Total operating expenses | 116,616 | 119,026 |
Income (loss) from operations | 1,748 | (15,313) |
Other income (expense) | ||
Interest income | 15,360 | 10,665 |
Interest expense | (1,469) | (1,455) |
Other income, net | 13,891 | 9,210 |
Income (loss) before income taxes | 15,639 | (6,103) |
Provision for income taxes | 869 | 628 |
Net income (loss) | 14,770 | (6,731) |
Net income attributable to redeemable non-controlling interest | 438 | 85 |
Adjustment attributable to redeemable non-controlling interest | 3,503 | 5,192 |
Net income (loss) attributable to BlackLine, Inc. | $ 10,829 | $ (12,008) |
Basic net income (loss) per share attributable to BlackLine, Inc. (in usd per share) | $ 0.18 | $ (0.20) |
Shares used to calculate basic net income (loss) per share (in shares) | 61,643 | 60,187 |
Diluted net income (loss) per share attributable to BlackLine, Inc. (in usd per share) | $ 0.17 | $ (0.20) |
Shares used to calculate diluted net income (loss) per share (in shares) | 72,893 | 60,187 |
Subscription and support | ||
Revenues | ||
Total revenues | $ 149,501 | $ 130,426 |
Cost of revenues | ||
Total cost of revenues | 32,052 | 28,512 |
Professional services | ||
Revenues | ||
Total revenues | 7,960 | 8,558 |
Cost of revenues | ||
Total cost of revenues | $ 7,045 | $ 6,759 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 14,770 | $ (6,731) |
Other comprehensive income (loss): | ||
Net change in unrealized gains (losses) on marketable securities, net of tax benefit of $($123) and $0, for the quarters ended March 31, 2024 and 2023, respectively. | (582) | 1,266 |
Foreign currency translation | (216) | (45) |
Other comprehensive income (loss) | (798) | 1,221 |
Comprehensive income (loss) | 13,972 | (5,510) |
Less comprehensive income attributable to redeemable non-controlling interest: | ||
Net income attributable to redeemable non-controlling interest | 438 | 85 |
Foreign currency translation attributable to redeemable non-controlling interest | (104) | (20) |
Comprehensive income attributable to redeemable non-controlling interest | 334 | 65 |
Comprehensive income (loss) attributable to BlackLine, Inc. | $ 13,638 | $ (5,575) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) (PARENTHETICAL) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net change in unrealized gains (losses) on marketable securities, tax | $ 123 | $ 0 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Beginning Balance (in shares) at Dec. 31, 2022 | 60,017 | ||||
Beginning 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) | 209 | ||||
Stock option exercises | 7,222 | $ 2 | 7,220 | ||
Vesting of restricted stock units (in shares) | 252 | ||||
Vesting of restricted stock units | 3 | $ 3 | |||
Acquisition of common stock for tax withholding obligations | (12,403) | (12,403) | |||
Stock-based compensation | 21,069 | 21,069 | |||
Other comprehensive loss | 1,241 | 1,241 | |||
Net income (loss) attributable to BlackLine, Inc., including adjustment to redeemable non-controlling interest | (12,008) | (5,192) | (6,816) | ||
Ending Balance (in shares) at Mar. 31, 2023 | 60,478 | ||||
Ending Balance at Mar. 31, 2023 | 116,992 | $ 605 | 396,403 | (231) | (279,785) |
Beginning Balance (in shares) at Dec. 31, 2023 | 61,515 | ||||
Beginning Balance at Dec. 31, 2023 | 260,881 | $ 615 | 474,863 | 205 | (214,802) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock option exercises (in shares) | 28 | ||||
Stock option exercises | 311 | $ 0 | 311 | ||
Vesting of restricted stock units (in shares) | 260 | ||||
Vesting of restricted stock units | 3 | $ 3 | |||
Acquisition of common stock for tax withholding obligations | (10,981) | (10,981) | |||
Stock-based compensation | 19,485 | 19,485 | |||
Other comprehensive loss | (694) | (694) | |||
Net income (loss) attributable to BlackLine, Inc., including adjustment to redeemable non-controlling interest | 10,829 | (3,503) | 14,332 | ||
Ending Balance (in shares) at Mar. 31, 2024 | 61,803 | ||||
Ending Balance at Mar. 31, 2024 | $ 279,834 | $ 618 | $ 480,175 | $ (489) | $ (200,470) |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities | ||
Net income (loss) attributable to BlackLine, Inc. | $ 10,829 | $ (12,008) |
Net income and adjustment attributable to redeemable non-controlling interest (Note 3) | 3,941 | 5,277 |
Net income (loss) | 14,770 | (6,731) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 12,648 | 12,004 |
Change in fair value of contingent consideration | 0 | 3,106 |
Amortization of debt issuance costs | 1,385 | 1,362 |
Stock-based compensation | 18,562 | 20,438 |
Noncash lease expense | 1,558 | 1,498 |
Accretion of purchase discounts on marketable securities, net | (8,542) | (7,519) |
Net foreign currency losses | 38 | 473 |
Deferred income taxes | (1,041) | (187) |
Provision for credit losses | 0 | 5 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 45,696 | 30,166 |
Prepaid expenses and other current assets | (1,964) | (5,268) |
Other assets | 2,406 | 467 |
Accounts payable | (6,792) | (9,518) |
Accrued expenses and other current liabilities | (14,774) | (10,653) |
Deferred revenue | (11,830) | (1,820) |
Operating lease liabilities | (1,710) | (1,654) |
Other long-term liabilities | 15 | (3,302) |
Net cash provided by operating activities | 50,425 | 22,867 |
Cash flows from investing activities | ||
Purchases of marketable securities | (294,961) | (311,246) |
Proceeds from maturities of marketable securities | 322,700 | 328,800 |
Capitalized software development costs | (6,450) | (6,879) |
Purchases of property and equipment | (299) | (1,676) |
Net cash provided by investing activities | 20,990 | 8,999 |
Cash flows from financing activities | ||
Principal payments under finance lease obligations | (258) | (241) |
Proceeds from exercises of stock options | 314 | 2,411 |
Acquisition of common stock for tax withholding obligations | (10,981) | (12,403) |
Net cash used in financing activities | (10,925) | (10,233) |
Effect of foreign currency exchange rate changes on cash, cash equivalents, and restricted cash | (212) | (41) |
Net increase in cash, cash equivalents, and restricted cash | 60,278 | 21,592 |
Cash, cash equivalents, and restricted cash, beginning of period | 271,363 | 201,207 |
Cash, cash equivalents, and restricted cash, end of period | 331,641 | 222,799 |
Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets | ||
Cash and cash equivalents at end of period | 331,401 | 222,557 |
Restricted cash included within other assets at end of period | 240 | 242 |
Total cash, cash equivalents, and restricted cash at end of period shown in the consolidated statements of cash flows | 331,641 | 222,799 |
Non-cash financing and investing activities | ||
Stock-based compensation capitalized for software development | 923 | 832 |
Capitalized software development costs included in accounts payable and accrued expenses and other current liabilities at end of period | 613 | 710 |
Purchases of property and equipment included in accounts payable and accrued expenses and other current liabilities at end of period | 89 | 934 |
Purchases of prepaids and other current assets included in accounts payable at end of period | $ 0 | $ 5,933 |
The Company
The Company | 3 Months Ended |
Mar. 31, 2024 | |
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, 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.” The Company is headquartered in Woodland Hills, California. The Company has other local offices in Pleasanton, California; New York, New York; and Westport, Connecticut. We also have international office locations in Australia, Canada, France, Germany, India, Japan, the Netherlands, Poland, Romania, Singapore, and the United Kingdom. |
Basis of Presentation, Signific
Basis of Presentation, Significant Accounting Policies and Recently-Issued Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation, Significant Accounting Policies and Recently-Issued Accounting Pronouncements | Basis of Presentation, Significant Accounting Policies and Recently-Issued Accounting Pronouncements The accompanying unaudited condensed consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. Certain information and disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. Accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes included in the Annual Report on Form 10-K for the fiscal year ended December 31, 2023, which was filed with the Securities and Exchange Commission (“SEC”) on February 23, 2024. The unaudited condensed consolidated financial statements are unaudited and have been prepared on a basis consistent with that used to prepare the audited annual consolidated financial statements and include, in the opinion of management, all adjustments, consisting of normal and recurring items, necessary for the fair statement of the condensed consolidated financial statements. The unaudited condensed consolidated balance sheet at December 31, 2023 was derived from audited financial statements, but does not include all disclosures required by GAAP. The operating results for the quarter ended March 31, 2024 are not necessarily indicative of the results expected for the full year ending December 31, 2024. 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 0.125% Convertible Senior Notes due in 2024 and 0.00% Convertible Senior Notes due in 2026, 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 March 31, 2024 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 condensed consolidated financial statements for the quarter ended March 31, 2024, 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. Significant accounting policies The Company’s significant accounting policies are detailed in “Note 2 - Significant Accounting Policies” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. There have been no material changes to the Company’s significant accounting policies. Recently-adopted accounting pronouncements There have been no recently adopted accounting pronouncements since the filing of the Company's Annual Report on Form 10-K for the year ended December 31, 2023. Recently-issued accounting pronouncements 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. The Company is currently evaluating the impact that the updated standard will have on our disclosures within our consolidated financial statements. The Company does not intend to early adopt. 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. The Company does not intend to early adopt. |
Redeemable Non-Controlling Inte
Redeemable Non-Controlling Interest | 3 Months Ended |
Mar. 31, 2024 | |
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. The Company initially contributed approximately $4.5 million in cash in exchange for 51% of the outstanding common stock of BlackLine K.K. and subsequently invested a further $2.3 million, maintaining 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): Quarter Ended March 31, 2024 2023 Balance at beginning of period $ 30,063 $ 23,895 Net income attributable to redeemable non-controlling interest (excluding adjustment to non-controlling interest) 438 85 Foreign currency translation (104) (20) Adjustment to redeemable non-controlling interest 3,503 5,192 Balance at end of period $ 33,900 $ 29,152 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 3 Months Ended |
Mar. 31, 2024 | |
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): March 31, 2024 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Trade name $ 15,977 $ (15,977) $ — Developed technology 137,368 (70,284) 67,084 Customer relationships 26,779 (21,075) 5,704 Defensive patent 2,333 (1,261) 1,072 $ 182,457 $ (108,597) $ 73,860 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 The following table represents the changes in goodwill (in thousands): Balance at December 31, 2023 $ 448,965 Additions from acquisitions — Balance at March 31, 2024 $ 448,965 |
Balance Sheet Components
Balance Sheet Components | 3 Months Ended |
Mar. 31, 2024 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | Balance Sheet Components Investments in Marketable Securities Investments in marketable securities presented within current assets on the condensed consolidated balance sheets consisted of the following (in thousands): March 31, 2024 Amortized Gross Gross Fair Value Marketable securities U.S. treasury securities $ 512,472 $ 110 $ (165) $ 512,417 Commercial paper 291,389 — — 291,389 U.S. government agencies 109,792 1 (146) 109,647 $ 913,653 $ 111 $ (311) $ 913,453 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 The Company’s marketable securities as of March 31, 2024 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): March 31, 2024 Amortized Cost Fair Value Maturing within 1 year $ 881,656 $ 881,559 Maturing between 1 and 2 years 31,997 31,894 $ 913,653 $ 913,453 Refer to “Note 6 - 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 condensed consolidated statements of operations, were $8.5 million and $7.5 million for the quarters ended March 31, 2024 and 2023, respectively. Net gains and losses are determined using the specific identification method. During the quarters ended March 31, 2024 and 2023, there were no realized gains or losses related to sales of marketable securities recognized in the Company's accompanying condensed consolidated statements of operations. Marketable securities in a continuous loss position for less than 12 months had an estimated fair value of $365.0 million and $286.6 million, and unrealized losses of $0.3 million and $0.2 million, at March 31, 2024 and December 31, 2023, respectively. There were no marketable securities in a continuous loss position for greater than 12 months at March 31, 2024 and December 31, 2023, 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 March 31, 2024 or December 31, 2023. Other Assets Deferred customer contract acquisition costs are included in other assets in the accompanying condensed consolidated balance sheets and totaled $87.0 million and $89.9 million at March 31, 2024 and December 31, 2023, respectively. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities were comprised of the following (in thousands): March 31, December 31, Accrued salaries and employee benefits $ 24,610 $ 33,344 Accrued income and other taxes payable 6,723 9,408 Accrued restructuring costs 627 1,569 Other accrued expenses and current liabilities 15,173 15,369 $ 47,133 $ 59,690 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
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): March 31, 2024 Level 1 Level 2 Level 3 Total Cash equivalents U.S. treasury securities $ 9,955 $ — $ — $ 9,955 Money market funds 237,047 — — 237,047 Commercial paper — 19,988 — 19,988 Marketable securities U.S. treasury securities 512,417 — — 512,417 Commercial paper — 291,389 — 291,389 U.S. government agencies — 109,647 — 109,647 Total assets $ 759,419 $ 421,024 $ — $ 1,180,443 Liabilities Contingent consideration $ — $ — $ — $ — Total liabilities $ — $ — $ — $ — 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 $ — $ — $ — $ — The following table summarizes the changes in the contingent consideration liability (in thousands): Quarter Ended March 31, 2024 2023 Beginning fair value $ — $ 41,549 Additions in the period — — Change in fair value — 3,106 Ending fair value $ — $ 44,655 The Company classified the marketable debt securities as available-for-sale debt securities at the time of purchase and reevaluated such classification as of each balance sheet date. The valuation techniques used to measure the fair values of our instruments that were classified as Level 1 were derived from quoted market prices for identical instruments in active markets. The valuation techniques used to measure the fair values of Level 2 instruments were derived from broker reports that utilized quoted market prices for similar instruments. As a condition of the acquisition of FourQ Systems, Inc. (“FourQ”) that occurred on January 26, 2022, the Company agreed to pay additional cash consideration if FourQ realized certain firm-specific targets, including the amount and timing of new and incremental combined bookings from FourQ and BlackLine, and revenues from a specified FourQ customer over a three-year period subsequent to the acquisition date. The maximum cash consideration to be distributed is $73.2 million. Changes in the significant inputs used in the fair value measurement, specifically a change in new and incremental actual and forecasted combined bookings from FourQ and the Company, can significantly impact the fair value of the contingent consideration liability. At March 31, 2024, the related liability for the FourQ Acquisition was zero. Increases and decreases in the fair value of contingent consideration are recorded as expense or reversals of expense, respectively, within general and administrative expenses in the unaudited condensed consolidated statements of operations. |
Convertible Senior Notes
Convertible Senior Notes | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Convertible Senior Notes | Convertible Senior Notes 2024 Notes As of March 31, 2024, we had $250.0 million aggregate principal amount of our 0.125% Convertible Senior Notes due in 2024 (the “2024 Notes”) outstanding. The 2024 Notes consisted of the following (in thousands): March 31, December 31, Liability: Principal $ 250,000 $ 250,000 Unamortized debt issuance costs (440) (767) Net carrying amount (1) $ 249,560 $ 249,233 (1) Net carrying amount as of March 31, 2024 presented within total current liabilities on the condensed consolidated balance sheet. The Company carries the 2024 Notes at face value less unamortized debt issuance costs on the accompanying condensed 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 March 31, 2024, was approximately $256.6 million, which represents a Level 2 valuation. During the quarter ended March 31, 2024, the Company recognized $0.3 million of interest expense related to the amortization of debt issuance costs and $0.1 million of coupon interest expense. During the quarter ended March 31, 2023, the Company recognized $0.3 million of interest expense related to the amortization of debt issuance costs and $0.1 million of coupon interest expense. The 2024 Notes were not convertible at March 31, 2024. 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. In connection with the offering of the 2024 Notes, the Company entered into privately negotiated capped call transactions (the “2024 Capped Calls”). There have been no changes to the condition of the 2024 Capped Calls since December 31, 2023, and the 2024 Capped Calls are still outstanding as of March 31, 2024. 2026 Notes As of March 31, 2024, we had $1.150 billion aggregate principal amount of our 0.00% Convertible Senior Notes due in 2026 (the “2026 Notes”) outstanding. The 2026 Notes consisted of the following (in thousands): March 31, December 31, Liability: Principal $ 1,150,000 $ 1,150,000 Unamortized debt issuance costs (8,334) (9,392) Net carrying amount $ 1,141,666 $ 1,140,608 The Company carries the 2026 Notes at face value less unamortized debt issuance costs on the accompanying condensed 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 March 31, 2024, was approximately $1.0 billion, which represents a Level 2 valuation. During the quarters ended March 31, 2024 and 2023, the Company recognized interest expense related to the amortization of debt issuance costs of $1.1 million and $1.0 million, respectively. The 2026 Notes were not convertible at March 31, 2024. 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. In connection with the offering of the 2026 Notes, the Company entered into privately negotiated capped call transactions (the “2026 Capped Calls” and together with the 2024 Capped Calls, the “Capped Calls”). There have been no changes to the condition of the 2026 Notes since December 31, 2023, and the 2026 Capped Calls are still outstanding as of March 31, 2024. |
Restructuring Costs
Restructuring Costs | 3 Months Ended |
Mar. 31, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | Restructuring Costs The liability for the fiscal 2023 and 2022 restructuring programs was included in accrued expenses and other current liabilities in the condensed consolidated balance sheet, and the following tables summarize the related activity for the respective plans for the quarter ended March 31, 2024 (in thousands): Quarter Ended March 31, 2024 Restructuring Program Fiscal 2023 Fiscal 2022 Total Accrual balance as of December 31, 2023 $ 1,562 $ 7 $ 1,569 Restructuring charges 444 — 444 Cash payments and adjustments (1,382) (4) (1,386) Accrual balance as of March 31, 2024 $ 624 $ 3 $ 627 All plan adjustments were changes in estimates whereby increases and decreases in charges were generally recorded to operating expenses in the periods of adjustments. As of March 31, 2024, the Company incurred cumulative costs of $10.3 million and $5.0 million related to the fiscal 2023 restructuring program and fiscal 2022 restructuring program, respectively. The Company does not anticipate incurring material additional expenses. |
Equity Awards
Equity Awards | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Equity Awards | Equity Awards Stock-based compensation expense Stock-based compensation expense was as follows (in thousands): Quarter Ended March 31, 2024 2023 Cost of revenues $ 1,962 $ 2,352 Sales and marketing 5,794 6,483 Research and development 2,851 3,824 General and administrative 7,955 7,779 $ 18,562 $ 20,438 For the quarters ended March 31, 2024 and 2023, stock-based compensation capitalized as an asset was $0.9 million and $0.8 million, respectively. Stock options - service-only vesting conditions The following table summarizes activity for awards that contain service-only vesting conditions (in thousands): Outstanding at December 31, 2023 1,693 Granted — Exercised (36) Forfeited/canceled (6) Outstanding at March 31, 2024 1,651 Restricted stock units - service-only vesting conditions The following table summarizes activity for restricted stock units that contain service-only vesting conditions (in thousands): Nonvested at December 31, 2023 2,208 Granted 1,289 Vested (394) Forfeited/canceled (79) Nonvested at March 31, 2024 3,024 Restricted stock units - performance and service conditions The following table summarizes activity for restricted stock units with performance and service vesting conditions with grant dates established (in thousands): Nonvested at December 31, 2023 113 Granted 183 Performance adjustment (62) Vested (51) Forfeited/canceled (8) Nonvested at March 31, 2024 175 The following table summarizes activity for restricted stock units with performance and service vesting conditions with no grant dates established (in thousands): Nonvested at December 31, 2023 235 Granted 100 Accounting grant dates established (133) Vested — Forfeited/canceled (5) Nonvested at March 31, 2024 197 Restricted stock units - market and service conditions The following table summarizes activity for restricted stock units with market and service-based conditions (in thousands): Nonvested at December 31, 2023 — Granted 150 Vested — Forfeited/canceled — Nonvested at March 31, 2024 150 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes In determining quarterly provisions for income taxes, the Company uses the annual estimated effective tax rate applied to the actual year-to-date income (loss), adjusted for discrete items arising in that quarter. The Company’s annual estimated effective tax rate differs from the U.S. federal statutory rate of 21% primarily as a result of state taxes, foreign taxes, and changes in the Company’s valuation allowance for income taxes. For the quarters ended March 31, 2024 and 2023, the Company recorded $0.9 million and $0.6 million in income tax expense, respectively. The increase in income tax expense for the quarter ended March 31, 2024 compared to March 31, 2023, resulted primarily from an increase in U.S. profitability, along with changes in the mix of profitable foreign jurisdictions. For purposes of calculating its income tax attributed to continuing operations, the Company continued to maintain a full valuation allowance on its U.S. federal and state net deferred tax assets as it was more likely than not that those deferred tax assets will not be realized. |
Net Income (Loss) per Share
Net Income (Loss) per Share | 3 Months Ended |
Mar. 31, 2024 | |
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): Quarter Ended March 31, 2024 2023 Basic net income (loss) per share Numerator: Net income (loss) attributable to BlackLine, Inc. $ 10,829 $ (12,008) Denominator: Weighted average shares 61,643 60,187 Basic net income (loss) per share attributable to BlackLine, Inc. $ 0.18 $ (0.20) Diluted net income (loss) per share Numerator: Net income (loss) attributable to BlackLine, Inc. $ 10,829 $ (12,008) Interest expense 1,463 — Tax effect of interest expense (69) — Net income (loss) attributable to BlackLine, Inc. for diluted calculation $ 12,223 $ (12,008) Denominator: Weighted average shares 61,643 60,187 Dilutive effect of securities 926 — Dilutive effect of convertible senior notes 10,324 — Shares used to calculate diluted net income (loss) per share 72,893 60,187 Diluted net income (loss) per share attributable to BlackLine, Inc. $ 0.17 $ (0.20) 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): Quarter Ended March 31, 2024 2023 Stock options - service-only vesting conditions 189 2,202 Restricted stock units - service-only vesting conditions 1,373 2,869 Restricted stock units - performance and service conditions 9 370 Restricted stock units - performance, market, and service conditions — 63 Restricted stock units - market and service conditions 26 — Total shares excluded from net loss per share 1,597 5,504 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 quarter ended March 31, 2023 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. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 and December 31, 2023, 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. |
Unearned Revenue and Performanc
Unearned Revenue and Performance Obligations | 3 Months Ended |
Mar. 31, 2024 | |
Unearned Revenue And Performance Obligations [Abstract] | |
Unearned Revenue and Performance Obligations | Unearned Revenue and Performance Obligations Revenue totaling $129.6 million and $112.5 million was recognized during the quarter ended March 31, 2024 and 2023, respectively, that was previously included in the deferred revenue balance at December 31, 2023 and 2022, respectively. Contracted but unrecognized revenue was $825.6 million at March 31, 2024, of which the Company expects to recognize approximately 58% over the next 12 months and the remainder thereafter. |
Geographic Information
Geographic Information | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Geographic Information | Geographic Information 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): Quarter Ended March 31, 2024 2023 United States $ 111,407 $ 100,012 International 46,054 38,972 $ 157,461 $ 138,984 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net income (loss) attributable to BlackLine, Inc. | $ 10,829 | $ (12,008) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On February 20, 2024, Thomas Unterman, our Lead Independent Director, adopted a “Rule 10b5-1 trading arrangement”, as defined in Regulation S-K Item 408. The trading arrangement provided for the sale, from time to time, of an aggregate of up to 50,000 shares of our common stock, and was intended to satisfy the affirmative defense in Rule 10b5-1(c). On May 1, 2024, Mr. Unterman terminated that 10b5-1 Plan before any trades were executed under it. On March 6, 2024, Mark Partin, our Chief Financial 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 140,956 shares of our common stock, and is intended to satisfy the affirmative defense in Rule 10b5-1(c). The duration of the trading arrangement is until February 28, 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 |
Thomas Unterman [Member] | |
Trading Arrangements, by Individual | |
Name | Thomas Unterman |
Title | Lead Independent Director |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | February 20, 2024 |
Rule 10b5-1 Arrangement Terminated | true |
Aggregate Available | 50,000 |
Mark Partin [Member] | |
Trading Arrangements, by Individual | |
Name | Mark Partin |
Title | Chief Financial Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 6, 2024 |
Arrangement Duration | 359 days |
Aggregate Available | 140,956 |
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 | March 8, 2024 |
Arrangement Duration | 367 days |
Aggregate Available | 117,260 |
Basis of Presentation, Signif_2
Basis of Presentation, Significant Accounting Policies and Recently-Issued Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
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 0.125% Convertible Senior Notes due in 2024 and 0.00% Convertible Senior Notes due in 2026, 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 March 31, 2024 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 condensed consolidated financial statements for the quarter ended March 31, 2024, 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. |
Recently-adopted accounting pronouncements and recently-issued accounting pronouncements | Recently-adopted accounting pronouncements There have been no recently adopted accounting pronouncements since the filing of the Company's Annual Report on Form 10-K for the year ended December 31, 2023. Recently-issued accounting pronouncements 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. The Company is currently evaluating the impact that the updated standard will have on our disclosures within our consolidated financial statements. The Company does not intend to early adopt. 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. The Company does not intend to early adopt. |
Redeemable Non-Controlling In_2
Redeemable Non-Controlling Interest (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of Redeemable Non-Controlling Interest | Activity in the redeemable non-controlling interest was as follows (in thousands): Quarter Ended March 31, 2024 2023 Balance at beginning of period $ 30,063 $ 23,895 Net income attributable to redeemable non-controlling interest (excluding adjustment to non-controlling interest) 438 85 Foreign currency translation (104) (20) Adjustment to redeemable non-controlling interest 3,503 5,192 Balance at end of period $ 33,900 $ 29,152 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Carrying Value of Intangible Assets | The carrying value of intangible assets was as follows (in thousands): March 31, 2024 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Trade name $ 15,977 $ (15,977) $ — Developed technology 137,368 (70,284) 67,084 Customer relationships 26,779 (21,075) 5,704 Defensive patent 2,333 (1,261) 1,072 $ 182,457 $ (108,597) $ 73,860 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 |
Schedule of Changes in Goodwill | The following table represents the changes in goodwill (in thousands): Balance at December 31, 2023 $ 448,965 Additions from acquisitions — Balance at March 31, 2024 $ 448,965 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Investments in Marketable Securities | Investments in marketable securities presented within current assets on the condensed consolidated balance sheets consisted of the following (in thousands): March 31, 2024 Amortized Gross Gross Fair Value Marketable securities U.S. treasury securities $ 512,472 $ 110 $ (165) $ 512,417 Commercial paper 291,389 — — 291,389 U.S. government agencies 109,792 1 (146) 109,647 $ 913,653 $ 111 $ (311) $ 913,453 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 |
Fair Values of Available-for-Sale Securities, by Remaining Contractual Maturity | The fair values of available-for-sale securities, by remaining contractual maturity, were as follows (in thousands): March 31, 2024 Amortized Cost Fair Value Maturing within 1 year $ 881,656 $ 881,559 Maturing between 1 and 2 years 31,997 31,894 $ 913,653 $ 913,453 |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities were comprised of the following (in thousands): March 31, December 31, Accrued salaries and employee benefits $ 24,610 $ 33,344 Accrued income and other taxes payable 6,723 9,408 Accrued restructuring costs 627 1,569 Other accrued expenses and current liabilities 15,173 15,369 $ 47,133 $ 59,690 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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): March 31, 2024 Level 1 Level 2 Level 3 Total Cash equivalents U.S. treasury securities $ 9,955 $ — $ — $ 9,955 Money market funds 237,047 — — 237,047 Commercial paper — 19,988 — 19,988 Marketable securities U.S. treasury securities 512,417 — — 512,417 Commercial paper — 291,389 — 291,389 U.S. government agencies — 109,647 — 109,647 Total assets $ 759,419 $ 421,024 $ — $ 1,180,443 Liabilities Contingent consideration $ — $ — $ — $ — Total liabilities $ — $ — $ — $ — 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 $ — $ — $ — $ — |
Summary of Changes in Common Stock Warrant Liability and Contingent Consideration Liability | The following table summarizes the changes in the contingent consideration liability (in thousands): Quarter Ended March 31, 2024 2023 Beginning fair value $ — $ 41,549 Additions in the period — — Change in fair value — 3,106 Ending fair value $ — $ 44,655 |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Summary of Notes | The 2024 Notes consisted of the following (in thousands): March 31, December 31, Liability: Principal $ 250,000 $ 250,000 Unamortized debt issuance costs (440) (767) Net carrying amount (1) $ 249,560 $ 249,233 (1) Net carrying amount as of March 31, 2024 presented within total current liabilities on the condensed consolidated balance sheet. March 31, December 31, Liability: Principal $ 1,150,000 $ 1,150,000 Unamortized debt issuance costs (8,334) (9,392) Net carrying amount $ 1,141,666 $ 1,140,608 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Liability | The liability for the fiscal 2023 and 2022 restructuring programs was included in accrued expenses and other current liabilities in the condensed consolidated balance sheet, and the following tables summarize the related activity for the respective plans for the quarter ended March 31, 2024 (in thousands): Quarter Ended March 31, 2024 Restructuring Program Fiscal 2023 Fiscal 2022 Total Accrual balance as of December 31, 2023 $ 1,562 $ 7 $ 1,569 Restructuring charges 444 — 444 Cash payments and adjustments (1,382) (4) (1,386) Accrual balance as of March 31, 2024 $ 624 $ 3 $ 627 |
Equity Awards (Tables)
Equity Awards (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock-Based Compensation Expense | Stock-based compensation expense was as follows (in thousands): Quarter Ended March 31, 2024 2023 Cost of revenues $ 1,962 $ 2,352 Sales and marketing 5,794 6,483 Research and development 2,851 3,824 General and administrative 7,955 7,779 $ 18,562 $ 20,438 |
Summary of Stock Options Activity | The following table summarizes activity for awards that contain service-only vesting conditions (in thousands): Outstanding at December 31, 2023 1,693 Granted — Exercised (36) Forfeited/canceled (6) Outstanding at March 31, 2024 1,651 |
Summary of Restricted Stock Units Activity | The following table summarizes activity for restricted stock units that contain service-only vesting conditions (in thousands): Nonvested at December 31, 2023 2,208 Granted 1,289 Vested (394) Forfeited/canceled (79) Nonvested at March 31, 2024 3,024 The following table summarizes activity for restricted stock units with performance and service vesting conditions with grant dates established (in thousands): Nonvested at December 31, 2023 113 Granted 183 Performance adjustment (62) Vested (51) Forfeited/canceled (8) Nonvested at March 31, 2024 175 The following table summarizes activity for restricted stock units with performance and service vesting conditions with no grant dates established (in thousands): Nonvested at December 31, 2023 235 Granted 100 Accounting grant dates established (133) Vested — Forfeited/canceled (5) Nonvested at March 31, 2024 197 The following table summarizes activity for restricted stock units with market and service-based conditions (in thousands): Nonvested at December 31, 2023 — Granted 150 Vested — Forfeited/canceled — Nonvested at March 31, 2024 150 |
Net Income (Loss) per Share - (
Net Income (Loss) per Share - (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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): Quarter Ended March 31, 2024 2023 Basic net income (loss) per share Numerator: Net income (loss) attributable to BlackLine, Inc. $ 10,829 $ (12,008) Denominator: Weighted average shares 61,643 60,187 Basic net income (loss) per share attributable to BlackLine, Inc. $ 0.18 $ (0.20) Diluted net income (loss) per share Numerator: Net income (loss) attributable to BlackLine, Inc. $ 10,829 $ (12,008) Interest expense 1,463 — Tax effect of interest expense (69) — Net income (loss) attributable to BlackLine, Inc. for diluted calculation $ 12,223 $ (12,008) Denominator: Weighted average shares 61,643 60,187 Dilutive effect of securities 926 — Dilutive effect of convertible senior notes 10,324 — Shares used to calculate diluted net income (loss) per share 72,893 60,187 Diluted net income (loss) per share attributable to BlackLine, Inc. $ 0.17 $ (0.20) |
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): Quarter Ended March 31, 2024 2023 Stock options - service-only vesting conditions 189 2,202 Restricted stock units - service-only vesting conditions 1,373 2,869 Restricted stock units - performance and service conditions 9 370 Restricted stock units - performance, market, and service conditions — 63 Restricted stock units - market and service conditions 26 — Total shares excluded from net loss per share 1,597 5,504 |
Geographic Information (Tables)
Geographic Information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Revenues by Geographic Region | The following table sets forth the Company’s revenues by geographic region (in thousands): Quarter Ended March 31, 2024 2023 United States $ 111,407 $ 100,012 International 46,054 38,972 $ 157,461 $ 138,984 |
Basis of Presentation, Signif_3
Basis of Presentation, Significant Accounting Policies and Recently-Issued Accounting Pronouncements Use of Estimates (Details) | Mar. 31, 2024 |
Convertible Senior Notes due 2024 | |
Debt Instrument [Line Items] | |
Convertible senior notes interest rate | 0.125% |
Convertible Senior Notes due 2026 | |
Debt Instrument [Line Items] | |
Convertible senior notes interest rate | 0% |
Redeemable Non-Controlling In_3
Redeemable Non-Controlling Interest - Additional Information (Details) - BlackLine K.K. - BlackLine K.K. - USD ($) $ in Millions | 1 Months Ended | |
Nov. 30, 2021 | Oct. 31, 2018 | |
Redeemable Noncontrolling Interest [Line Items] | ||
Business combination, contribution | $ 4.5 | |
Business combination, outstanding common stock percentage | 51% | 51% |
Business combination, further investment by parent | $ 2.3 |
Redeemable Non-Controlling In_4
Redeemable Non-Controlling Interest - Summary of Redeemable Non-Controlling Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Redeemable Noncontrolling Interest [Roll Forward] | ||
Balance at beginning of period | $ 30,063 | $ 23,895 |
Net income attributable to redeemable non-controlling interest (excluding adjustment to non-controlling interest) | 438 | 85 |
Foreign currency translation | (104) | (20) |
Adjustment to redeemable non-controlling interest | 3,503 | 5,192 |
Balance at end of period | $ 33,900 | $ 29,152 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Summary of Carrying Value of Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 182,457 | $ 182,457 |
Accumulated Amortization | (108,597) | (103,401) |
Net Carrying Amount | 73,860 | 79,056 |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 15,977 | 15,977 |
Accumulated Amortization | (15,977) | (15,977) |
Net Carrying Amount | 0 | 0 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 137,368 | 137,368 |
Accumulated Amortization | (70,284) | (66,900) |
Net Carrying Amount | 67,084 | 70,468 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 26,779 | 26,779 |
Accumulated Amortization | (21,075) | (19,342) |
Net Carrying Amount | 5,704 | 7,437 |
Defensive patent | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,333 | 2,333 |
Accumulated Amortization | (1,261) | (1,182) |
Net Carrying Amount | $ 1,072 | $ 1,151 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Changes in Goodwill (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Goodwill [Roll Forward] | |
Balance beginning | $ 448,965 |
Additions from acquisitions | 0 |
Balance ending | $ 448,965 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Investments in Marketable Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | $ 913,653 | $ 932,850 |
Gross Unrealized Gains | 111 | 740 |
Gross Unrealized Losses | (311) | (235) |
Fair Value | 913,453 | 933,355 |
U.S. treasury securities | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 512,472 | 523,344 |
Gross Unrealized Gains | 110 | 737 |
Gross Unrealized Losses | (165) | (107) |
Fair Value | 512,417 | 523,974 |
Commercial paper | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 291,389 | 241,428 |
Gross Unrealized Gains | 0 | 1 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 291,389 | 241,429 |
U.S. government agencies | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Amortized Cost | 109,792 | 168,078 |
Gross Unrealized Gains | 1 | 2 |
Gross Unrealized Losses | (146) | (128) |
Fair Value | $ 109,647 | $ 167,952 |
Balance Sheet Components - Fair
Balance Sheet Components - Fair Values of Available-for-Sale Securities, by Remaining Contractual Maturity (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Amortized Cost [Abstract] | |
Maturing within 1 year | $ 881,656 |
Maturing between 1 and 2 years | 31,997 |
Amortized cost | 913,653 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Fair Value [Abstract] | |
Maturing within 1 year | 881,559 |
Maturing between 1 and 2 years | 31,894 |
Fair Value | $ 913,453 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) | 3 Months Ended | ||
Mar. 31, 2024 USD ($) marketableSecurity | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) marketableSecurity | |
Balance Sheet Related Disclosures [Abstract] | |||
Net gains and losses on maturities of marketable securities reclassified from accumulated other comprehensive loss to earnings | $ 8,500,000 | $ 7,500,000 | |
Net gains (losses) related to securities | 0 | $ 0 | |
Securities in continuous loss position, less than 12 months, estimated fair value | 365,000,000 | $ 286,600,000 | |
Securities in continuous loss position, less than 12 Months, unrealized losses | $ 300,000 | $ 200,000 | |
Number of securities in continuous unrealized loss position, greater than 12 months | marketableSecurity | 0 | 0 | |
Credit losses on marketable securities | $ 0 | $ 0 | |
Deferred customer contract acquisition costs | $ 87,000,000 | $ 89,900,000 |
Balance Sheet Components - Sc_2
Balance Sheet Components - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Balance Sheet Related Disclosures [Abstract] | ||
Accrued salaries and employee benefits | $ 24,610 | $ 33,344 |
Accrued income and other taxes payable | 6,723 | 9,408 |
Accrued restructuring costs | 627 | 1,569 |
Other accrued expenses and current liabilities | 15,173 | 15,369 |
Accrued expenses and other current liabilities | $ 47,133 | $ 59,690 |
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 | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 1,180,443 | $ 1,140,566 |
Liabilities | ||
Contingent consideration | 0 | 0 |
Total liabilities | 0 | 0 |
U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 9,955 | |
Marketable securities | 512,417 | 523,974 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 237,047 | 148,298 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 19,988 | 38,926 |
Marketable securities | 291,389 | 241,429 |
U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 19,987 | |
Marketable securities | 109,647 | 167,952 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 759,419 | 672,272 |
Liabilities | ||
Contingent consideration | 0 | 0 |
Total liabilities | 0 | 0 |
Level 1 | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 9,955 | |
Marketable securities | 512,417 | 523,974 |
Level 1 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 237,047 | 148,298 |
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 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 421,024 | 468,294 |
Liabilities | ||
Contingent consideration | 0 | 0 |
Total liabilities | 0 | 0 |
Level 2 | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Marketable securities | 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 | 19,988 | 38,926 |
Marketable securities | 291,389 | 241,429 |
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 | 109,647 | 167,952 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 0 | 0 |
Liabilities | ||
Contingent consideration | 0 | 0 |
Total liabilities | 0 | 0 |
Level 3 | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Marketable securities | 0 | 0 |
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 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Changes in Contingent Consideration Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Additions in the period | $ 0 | $ 0 |
Contingent Consideration | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning fair value | 0 | 41,549 |
Change in fair value | 0 | 3,106 |
Ending fair value | $ 0 | $ 44,655 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - FourQ Systems, Inc. | Mar. 31, 2024 USD ($) | Jan. 26, 2022 USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Maximum contingent consideration to be distributed | $ 73,200,000 | |
Contingent consideration | $ 0 | |
Measurement Input, Expected Term | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration, liability, measurement input | 3 |
Convertible Senior Notes - Addi
Convertible Senior Notes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Debt Instrument [Line Items] | ||
Interest expense related to amortization of debt issuance costs | $ 1,385 | $ 1,362 |
Convertible Senior Notes due 2024 | ||
Debt Instrument [Line Items] | ||
Convertible senior notes, aggregate principal | $ 250,000 | |
Convertible senior notes interest rate | 0.125% | |
Interest expense related to amortization of debt issuance costs | $ 300 | 300 |
Coupon interest expense | 100 | 100 |
Convertible Senior Notes due 2024 | Level 2 | ||
Debt Instrument [Line Items] | ||
Estimated fair value of convertible senior notes | 256,600 | |
Convertible Senior Notes due 2026 | ||
Debt Instrument [Line Items] | ||
Convertible senior notes, aggregate principal | $ 1,150,000 | |
Convertible senior notes interest rate | 0% | |
Interest expense related to amortization of debt issuance costs | $ 1,100 | $ 1,000 |
Convertible Senior Notes due 2026 | 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) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Convertible Senior Notes due 2024 | ||
Debt Instrument [Line Items] | ||
Principal | $ 250,000 | $ 250,000 |
Unamortized debt issuance costs | (440) | (767) |
Net carrying amount | 249,560 | 249,233 |
Convertible Senior Notes due 2026 | ||
Debt Instrument [Line Items] | ||
Principal | 1,150,000 | 1,150,000 |
Unamortized debt issuance costs | (8,334) | (9,392) |
Net carrying amount | $ 1,141,666 | $ 1,140,608 |
Restructuring Costs - Schedule
Restructuring Costs - Schedule of Restructuring Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Restructuring Reserve [Roll Forward] | ||
Balance at beginning of period | $ 1,569 | |
Restructuring charges | 444 | $ 1,014 |
Cash payments and adjustments | (1,386) | |
Balance at end of period | 627 | |
2023 Restructuring Program | ||
Restructuring Reserve [Roll Forward] | ||
Balance at beginning of period | 1,562 | |
Restructuring charges | 444 | |
Cash payments and adjustments | (1,382) | |
Balance at end of period | 624 | |
2022 Restructuring Program | ||
Restructuring Reserve [Roll Forward] | ||
Balance at beginning of period | 7 | |
Restructuring charges | 0 | |
Cash payments and adjustments | (4) | |
Balance at end of period | $ 3 |
Restructuring Costs - Narrative
Restructuring Costs - Narrative (Details) $ in Millions | Mar. 31, 2024 USD ($) |
2023 Restructuring Program | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative restructuring cost incurred | $ 10.3 |
2022 Restructuring Program | |
Restructuring Cost and Reserve [Line Items] | |
Cumulative restructuring cost incurred | $ 5 |
Equity Awards - Summary of Stoc
Equity Awards - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | $ 18,562 | $ 20,438 |
Cost of revenues | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 1,962 | 2,352 |
Sales and marketing | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 5,794 | 6,483 |
Research and development | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 2,851 | 3,824 |
General and administrative | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | $ 7,955 | $ 7,779 |
Equity Awards - Additional Info
Equity Awards - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | ||
Stock-based compensation capitalized as an asset | $ 0.9 | $ 0.8 |
Equity Awards - Summary of St_2
Equity Awards - Summary of Stock Options Activity (Details) shares in Thousands | 3 Months Ended |
Mar. 31, 2024 shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding, Beginning balance (in shares) | 1,693 |
Granted (in shares) | 0 |
Exercised (in shares) | (36) |
Forfeitures/canceled (in shares) | (6) |
Outstanding, Ending balance (in shares) | 1,651 |
Equity Awards - Summary of Rest
Equity Awards - Summary of Restricted Stock Units Activity (Details) | 3 Months Ended |
Mar. 31, 2024 shares | |
Restricted stock units | |
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) | 2,208,000 |
Granted (in shares) | 1,289,000 |
Vested (in shares) | (394,000) |
Forfeited/canceled (in shares) | (79,000) |
Nonvested, Ending balance (in shares) | 3,024,000 |
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) | 113,000 |
Granted (in shares) | 183,000 |
Performance adjustment (in shares) | (62,000) |
Vested (in shares) | (51,000) |
Forfeited/canceled (in shares) | (8,000) |
Nonvested, Ending balance (in shares) | 175,000 |
Restricted stock units - performance and service conditions, 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) | 235,000 |
Granted (in shares) | 100,000 |
Performance adjustment (in shares) | (133,000) |
Vested (in shares) | 0 |
Forfeited/canceled (in shares) | (5,000) |
Nonvested, Ending balance (in shares) | 197,000 |
Restricted stock units - market 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) | 0 |
Granted (in shares) | 150,000 |
Vested (in shares) | 0 |
Forfeited/canceled (in shares) | 0 |
Nonvested, Ending balance (in shares) | 150,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 869 | $ 628 |
Net Income (Loss) per Share - S
Net Income (Loss) per Share - Schedule of Basic and Diluted Loss per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Numerator: | ||
Net income (loss) attributable to BlackLine, Inc. | $ 10,829 | $ (12,008) |
Denominator: | ||
Weighted average shares (in shares) | 61,643 | 60,187 |
Basic net income (loss) per share attributable to BlackLine, Inc. (in usd per share) | $ 0.18 | $ (0.20) |
Numerator: | ||
Net income (loss) attributable to BlackLine, Inc. | $ 10,829 | $ (12,008) |
Interest expense | 1,463 | 0 |
Tax effect of interest expense | (69) | 0 |
Net income (loss) per share attributable to BlackLine, Inc. (in usd per share) | $ 12,223 | $ (12,008) |
Denominator: | ||
Weighted average shares (in shares) | 61,643 | 60,187 |
Dilutive effect of securities (in shares) | 926 | 0 |
Dilutive effect of convertible senior notes (in shares) | 10,324 | 0 |
Shares used to calculate diluted net income (loss) per share (in shares) | 72,893 | 60,187 |
Diluted net income (loss) per share attributable to BlackLine, Inc. (in usd per share) | $ 0.17 | $ (0.20) |
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 | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive shares excluded from net loss per share (in shares) | 1,597 | 5,504 |
Stock options - service-only vesting conditions | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive shares excluded from net loss per share (in shares) | 189 | 2,202 |
Restricted stock units - service-only vesting conditions | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive shares excluded from net loss per share (in shares) | 1,373 | 2,869 |
Restricted stock units - performance and service conditions | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive shares excluded from net loss per share (in shares) | 9 | 370 |
Restricted stock units - performance, market, and service conditions | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive shares excluded from net loss per share (in shares) | 0 | 63 |
Restricted stock units - market and service conditions | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive shares excluded from net loss per share (in shares) | 26 | 0 |
Net Income (Loss) per Share - A
Net Income (Loss) per Share - Additional Information (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Anti-dilutive shares excluded from net loss per share (in shares) | 1,597 | 5,504 |
Convertible Senior Notes due 2024 | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Anti-dilutive shares excluded from net loss per share (in shares) | 3,400 | |
Convertible Senior Notes due 2024 | Convertible Notes | Certain Corporate Events Occur Prior to Maturity Date or Company Issues Notice of Redemption | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Anti-dilutive shares excluded from net loss per share (in shares) | 4,700 | |
Convertible Senior Notes due 2026 | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Anti-dilutive shares excluded from net loss per share (in shares) | 6,900 | |
Convertible Senior Notes due 2026 | Convertible Notes | Certain Corporate Events Occur Prior to Maturity Date or Company Issues Notice of Redemption | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Anti-dilutive shares excluded from net loss per share (in shares) | 9,900 |
Unearned Revenue and Performa_2
Unearned Revenue and Performance Obligations - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Unearned Revenue And Performance Obligations [Abstract] | ||
Deferred revenue recognized | $ 129.6 | $ 112.5 |
Contracted not recognized revenue | $ 825.6 |
Unearned Revenue and Performa_3
Unearned Revenue and Performance Obligations - Remaining Performance Obligations (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | Mar. 31, 2024 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contracted not recognized revenue, expects to recognize revenue over next 12 months | 58% |
Remaining performance obligation, expected timing of satisfaction, period | 12 months |
Geographic Information (Details
Geographic Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 157,461 | $ 138,984 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 111,407 | 100,012 |
International | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 46,054 | $ 38,972 |