BlackLine(BL) - 2025 Q2 - Quarterly Report

Part I. Financial Information Item 1. Unaudited Condensed Consolidated Financial Statements This section presents BlackLine, Inc.'s unaudited condensed consolidated financial statements for the quarter and six months ended June 30, 2025 and 2024, including balance sheets, statements of operations, comprehensive income, stockholders' equity, and cash flows, along with detailed notes explaining significant accounting policies, segment information, and specific balance sheet components Unaudited Condensed Consolidated Balance Sheets Presents BlackLine's financial position, detailing assets, liabilities, and equity at specific reporting dates ASSETS (in thousands) | ASSETS (in thousands) | June 30, 2025 | December 31, 2024 | | :---------------------- | :------------ | :------------------ | | Cash and cash equivalents | $459,141 | $885,915 | | Marketable securities | $398,277 | — | | Accounts receivable, net | $175,021 | $178,141 | | Total current assets | $1,056,187 | $1,092,404 | | Total assets | $1,792,689 | $1,825,036 | LIABILITIES (in thousands) | LIABILITIES (in thousands) | June 30, 2025 | December 31, 2024 | | :----------------------- | :------------ | :------------------ | | Accounts payable | $11,520 | $8,463 | | Accrued expenses and other current liabilities | $57,448 | $71,574 | | Deferred revenue, current | $341,549 | $338,615 | | Convertible senior notes, net, current | $229,592 | — | | Total current liabilities | $643,830 | $422,243 | | Convertible senior notes, net, noncurrent | $664,762 | $892,675 | | Total liabilities | $1,343,642 | $1,341,884 | | Total stockholders' equity | $414,047 | $446,669 | - Cash and cash equivalents decreased significantly from $885.9 million at December 31, 2024, to $459.1 million at June 30, 2025. Marketable securities increased from $0 to $398.3 million during the same period[14] - Total current liabilities increased from $422.2 million to $643.8 million, primarily due to current convertible senior notes of $229.6 million at June 30, 2025[14] Unaudited Condensed Consolidated Statements of Operations Details BlackLine's revenues, expenses, and net income over specific reporting periods (in thousands, except per share data) | (in thousands, except per share data) | Quarter Ended June 30, 2025 | Quarter Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :-------------------------- | :-------------------------- | :----------------------------- | :----------------------------- | | Total revenues | $172,025 | $160,506 | $338,956 | $317,967 | | Gross profit | $129,403 | $120,158 | $255,410 | $238,522 | | Income from operations | $7,545 | $2,208 | $11,120 | $3,956 | | Net income attributable to BlackLine, Inc. | $8,292 | $76,690 | $14,347 | $87,519 | | Basic net income per share | $0.13 | $1.24 | $0.23 | $1.42 | | Diluted net income per share | $0.13 | $0.22 | $0.23 | $0.39 | - Net income attributable to BlackLine, Inc. decreased significantly from $76.7 million in Q2 2024 to $8.3 million in Q2 2025, and from $87.5 million in H1 2024 to $14.3 million in H1 2025. This decline is largely due to a $65.1 million gain on extinguishment of convertible senior notes in H1 2024 that did not recur in H1 2025[17] - Total revenues increased by 7% for both the quarter and six months ended June 30, 2025, compared to the prior year periods[17] Unaudited Condensed Consolidated Statements of Comprehensive Income Reports BlackLine's net income and other comprehensive income components, reflecting total comprehensive earnings (in thousands) | (in thousands) | Quarter Ended June 30, 2025 | Quarter Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------- | :-------------------------- | :-------------------------- | :----------------------------- | :----------------------------- | | Net income | $7,391 | $74,959 | $12,665 | $89,729 | | Other comprehensive income (loss) | $95 | $(173) | $394 | $(971) | | Comprehensive income attributable to BlackLine, Inc. | $6,743 | $74,363 | $11,803 | $88,001 | - Comprehensive income attributable to BlackLine, Inc. decreased significantly from $74.4 million in Q2 2024 to $6.7 million in Q2 2025, and from $88.0 million in H1 2024 to $11.8 million in H1 2025, mirroring the trend in net income[20] Unaudited Condensed Consolidated Statements of Stockholders' Equity Outlines changes in BlackLine's stockholders' equity, including common stock, additional paid-in capital, and accumulated deficit (in thousands) | (in thousands) | Balance at Dec 31, 2024 | Stock option exercises | Repurchases of common stock | Stock-based compensation | Net income attributable to BlackLine, Inc. | Balance at Jun 30, 2025 | | :------------- | :---------------------- | :--------------------- | :-------------------------- | :----------------------- | :----------------------------------------- | :---------------------- | | Common Stock | $628 | $2 | $(17) | — | — | $619 | | Additional Paid-in Capital | $495,391 | $5,011 | $(89,251) | $45,485 | $2,739 | $450,975 | | Accumulated Deficit | $(48,989) | — | — | — | $11,608 | $(37,381) | | Total Stockholders' Equity | $446,669 | $5,013 | $(89,268) | $45,485 | $14,347 | $414,047 | - Total stockholders' equity decreased from $446.7 million at December 31, 2024, to $414.0 million at June 30, 2025, primarily due to common stock repurchases totaling $89.3 million[24] - The company repurchased 1.7 million shares of common stock for $89.3 million during the six months ended June 30, 2025[24] Unaudited Condensed Consolidated Statements of Cash Flows Summarizes BlackLine's cash inflows and outflows from operating, investing, and financing activities (in thousands) | (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $79,087 | $91,123 | | Net cash provided by (used in) investing activities | $(414,018) | $506,431 | | Net cash used in financing activities | $(92,224) | $(251,629) | | Net increase (decrease) in cash, cash equivalents, and restricted cash | $(426,745) | $345,504 | | Cash, cash equivalents, and restricted cash, end of period | $459,402 | $616,867 | - Net cash provided by operating activities decreased from **$9