BLACKLINE, INC.BL

BLACKLINE, INC. Earnings Per Share Disclosure

10-KFiled Feb 26, 20262 min read
Net Income per Share
The following table sets forth the computation of basic and diluted net income per share (in thousands, except per share amounts):
Year Ended December 31,
202520242023
Basic net income per share
Numerator:
Net income attributable to BlackLine, Inc.$24,518 $161,174 $52,833 
Denominator:
Weighted average shares61,430 62,129 60,849 
Basic net income per share attributable to BlackLine, Inc.$0.40 $2.59 $0.87 
Diluted net income per share
Numerator:
Net income attributable to BlackLine, Inc.$24,518 $161,174 $52,833 
Interest expense, net of taxes1,073 7,804 5,716 
Gain on extinguishment of convertible senior notes, net of taxes— (62,147)— 
Net income attributable to BlackLine, Inc. for diluted calculation$25,591 $106,831 $58,549 
Denominator:
Weighted average shares61,430 62,129 60,849 
Dilutive effect of securities686 691 872 
Dilutive effect of convertible senior notes3,805 10,683 10,324 
Shares used to calculate diluted net income per share65,921 73,503 72,045 
Diluted net income per share attributable to BlackLine, Inc.$0.39 $1.45 $0.81 
The Company computes basic earnings per share attributable to BlackLine, Inc. using the weighted average number of common shares outstanding. The Company computes diluted earnings per share attributable to BlackLine, Inc. using the weighted average number of common shares outstanding plus the effect of potentially dilutive shares, which is based on the weighted-average shares of common stock underlying stock options and unvested stock awards using the treasury stock method, and the effect of the convertible senior notes using the if-converted method.
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,
202520242023
Stock options - service-only vesting conditions355 330 1,062 
Restricted stock units - service-only vesting conditions1,345 1,813 1,834 
Restricted stock units - performance and service conditions79 55 16 
Restricted stock units - market and service conditions237 153 — 
Restricted stock units - performance, market, and service conditions— — 73 
WL contingently returnable common shares10 — — 
Total shares excluded from net income per share2,026 2,351 2,985 
The denominator for diluted net income per share attributable to BlackLine, Inc. does not include any effect from the Capped Calls as this effect would be anti-dilutive. In the event of conversion of the Notes, shares delivered to the Company under the Capped Calls would offset the dilutive effect of the shares that the Company would issue under the Notes. Refer to “Note 11 - Convertible Senior Notes” for additional information on the Notes and the related Capped Calls.
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About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

Other Available Disclosures

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