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BlackLine Investor Presentation | 4Q’24 As of February 11th, 2025
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2 Safe Harbor This presentation contains forward-looking statements. These statements may relate to, but are not limited to, expectations of f uture operating results or financial performance of BlackLine, Inc. (“BlackLine” or the “Company”), the calculation of certain key financial and operating metrics, capital expen ditures, introduction of new solutions or products, expansion into new markets, plans for growth and future operations, technological capabilities, and ability to execute our technology a nd platform initiatives and strategic relationships, including our relationship with SAP, as well as assumptions relating to the foregoing. Forward -looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. In some cases, you can identify forward -looking statements by terminology such as “may,” “will,” “shoul d,” “could,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “intend,” “potential,” “would,” “continue,” “ongoing” or the negative of these terms or other comparab le terminology. You should not put undue reliance on any forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and wi ll not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all. Forward-looking statements are based on information available at the time those statements are made and/or management’s good fai th beliefs and assumptions as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to risks related to the Company’s ability to attract new customers and expand sales to existing customers; the extent to which customers renew their subscription agreements or increase the number of users; the impact of c urrent and future economic uncertainty and other unfavorable conditions in the Company’s industry or the global economy; and other risks and uncertainties described in other filings we make with the Securities and Exchange Commission (the “SEC”) from time to time, including the risks described under the heading “Risk Factors” in our Annual Report on Form 10-K and our subsequent Quarterly Reports on Form 10-Q, which are available on our website at http://investors.blackline.com and on the SEC’s website at www.sec.gov. In ligh t of these risks and uncertainties, the forward -looking events and circumstances discussed in this presentation may not occur and actual results could differ materially from those a nticipated or implied in the forward -looking statements. Except as required by law, BlackLine does not undertake any obligation to publicly update or revise any forward -looking statement, whether as a result of new information, future developments or otherwise. In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. Th ese statements are based upon information available to us as of the date of this presentation, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially av ailable relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely upon these statements. In addition to U.S. GAAP financials, this presentation includes certain non -GAAP financial measures, including non-GAAP gross profit, gross margin, free cash flow, sales and marketing expense, research and development expense, general and administrative expense, income (loss) from operations, operating margi n, net income and net income margin. These non- GAAP measures are in addition to, not a substitute for or superior to, measures of financial performance prepared in accordan ce with U.S. GAAP. The non-GAAP financial measures we use may differ from the non-GAAP financial measures used by other companies. A reconciliation of these measures to the most dire ctly comparable GAAP measure is included in the Appendix to this presentation.
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3 To inspire, power, and guide digital finance transformation Champions of strategic accounting and finance transformation Market Leader with Large & Underpenetrated $45B TAM Compelling Land & Expand Model Durable Business Model with Investment in Profitable Growth WHO WE ARE OUR WINNING ASPIRATION $$$
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4 BlackLine’s Market: The Office of the CFO Invoice-to-Cash Financial Close Consolidation By being positioned upstream within the Office of the CFO, BlackLine is uniquely able to ensure comprehensive control, enhanced visibility, and seamless data integrity—offering the most integrated and interconnected financial processes. Internal Reporting Financial Planning Intercompany External Reporting Financial Data
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5 Financial Systems Environments are Highly Complex Financial Institutions Customer Data Market Intel Data Vendor Data Employee Data Regulatory & Compliance Requirements ERP A ERP B ERP C CRM Human Capital Mgmt. System Payroll System (Intl.) Payroll System (US) Revenue Mgmt. System Contract Mgmt. System Financial Reporting System FP&A System Lease Mgmt. System Commissions Mgmt. System Expense Mgmt. System Accounts Payable Treasury Mgmt. System Equity Comp System Direct Tax Mgmt. System Compliance Mgmt. System Risk Mgmt. System Indirect Tax Mgmt. System Financial Close System Consolidation System Invoice-to- Cash System
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6 Market Leader with Large & Underpenetrated TAM Source: Dun & Bradstreet, Company estimates. Note: Record-to-report TAM excludes financial reporting and Public Sector. Record-to-Report $45B Total Addressable Market Invoice-to-Cash $34B $11B Financial Close Intercompany Consolidation Invoice-to-Cash Comprised of over 160,000 companies across BlackLine’s target markets in North America, Europe, and Asia-Pacific These two process areas, Record-to-Report and Invoice-to-Cash, represent distinct addressable markets.
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7 Blue-Chip, Industry-Agnostic Customer Base HEALTHCARE & LIFE SCIECNES MANUFACTURING 8 of the Top 10 CONSUMER RETAIL 5 of the Top 10 ENERGY 8 of the Top 10 TECHNOLOGY 4 of the Top 10 WHOLESALE 5 of the Top 10 LEISURE & TRAVEL 3 of the Top 10 SERVICES 6 of the Top 10 Extending our industry approach to a new large market NEW: PUBLIC SECTOR I N D U S T R Y B R E A D T H I N D U S T R Y D E P T H PHARMA & BIOTECH E X A M P L E : H E A L T H C A R E & L I F E S C I E N C E S FINANCIAL SERVICES 1 of the Top 10 7 of the Top 10 MEDTECH HEALTHCARE SERVICES LIFE SCIENCES Note: Top 10 penetration represents BlackLine’s presence within the 10 largest companies by market capitalization for each industry within the Fortune 1000.
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8 + Transforming the World’s Largest Companies We are focused on deepening and expanding our relationships with the world's largest and most complex organizations. P R I O R I T Y O P P O R T U N I T Y 60% Fortune 500 70% DOWJ 30% NASDAQ (Enterprise) 35% FSTE 100 60% DAX 40 40% CAC 40 40% ASX 100 20% Nikkei 225 BlackLine powers the digital finance transformation behind over $36T in global market capitalization + + + + + + + +
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9 Building an Industry Leading Automation Platform BlackLine is closer than ever before to realizing its plan to become a platform financial operations solution provider. Single-Solution Era Financial Close Multi-Solution Era Financial Close Management Invoice-to-Cash Automation Intercompany Financial Management Platform Era Studio360 Platform Build accuracy, control, and consistency into every process. Financial Controls from Invoice-to-Cash to Financial Close and Compliance Automate the repetitive to enable higher-value work. Intelligent Automation Unify systems and data for a complete financial story. Secure integrations, ERP connectors & APIs Drive accountability through visibility. Reporting & Dashboards 2016 Acquisition of Runbook 2020 Invoice-to-Cash market entry with acquisition of Rimilia 2004 Account Reconciliations 2001 BlackLine founded 2007 Task Management Journal Entry Transaction Matching 2022 Expanded intercompany offering with the acquisition of FourQ 2024 Studio360 Platform 2014 Intercompany Hub 2024 AI-enabled innovation 2023 Consolidation 2022 Financial Reporting Analytics 2018 SAP Solution Extension Partnership 2023 Completed I2C offering with Data Interconnect acquisition
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10 Studio 360 – A Platform for the Future The BlackLine Platform enables financial operations that are accurate, efficient, and intelligent. O U T C O M E S Identify Risks & Anomalies Automate Processes Strengthen Controls Reduce Costs Improve Compliance Accelerate Insights Optimize Talent D A T A S O U R C E S A P P L I C A T I O N S P L A T F O R M Studio360 Integrate Studio360 Orchestrate Studio360 Visualize Unified & Flexible: Cleanse and transform data through pre-built connectors, APIs, and more Comprehensive: Map, optimize, and automate end-to-end processes across any application Scalable: Real-time, AI- powered insights through customizable dashboards and reports Studio360 Blueprint Proven best practice process templates ERPs Fixed Assets Payroll Treasury Lease Accounts Payable Procurement Accounts Receivable Inventory Travel & Entertainment Centralized management of financial hierarchies, policies & certificationsStudio360 Control And more data sources AI-P O W E R E D • Journal Entry • Intercompany Create • Intercompany Balance & Resolve • Intercompany Net & Settle • Consolidation • Financial Reporting Analytics • Transaction Matching • Account Reconciliations • Task Management • Smart Close • eInvoicing & Payments • Cash Application • Collections & Disputes • Credit & Risk
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11 Our Go-To-Market & Customer Strategy Global Sales Deployment BlackLine Account Management SAP Reseller through SolEx BlackLine Direct Sales Partner Ecosystem (Channel, SIs, BPOs, ERP, Consulting) Enterprise Mid-Market Account Expansion >$750M Annual Revenue $100M-750M Annual Revenue After Initial Sale Solution Consultants Global Customer Team Professional Services Customer Success Management Digital Transformation Specialists Support Community
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12 Proven Ability to Drive Land and Expand Platform Annualized Revenue by Customer Cohort 1 1 Reflects annualized subscription and support revenue for the group of customers that became our customers in each respective cohort year. A “cohort” is a grouping of customers by the year specified. For instance, the 2012 cohort includes all customers whose contract start date is between January 1, 2012, and Dec ember 31, 2012. We calculate annualized subscription and support revenue at a particular date as the total amount of minimum subscription and support revenue contractually committed under ea ch of our customer agreements for that month through the remaining term of the agreement, divided by the remaining number of months in the term of the agreement, multiplied by twelve. We calculate initial annualized subscription and support revenue for any given cohort year as the sum of annualized subscription and support revenue as of the first month of each customer agreement that w as entered into within that given cohort year. Accordingly, in contrast to annualized subscription and support revenue, initial annualized subscription and support revenue does not reflect any chan ges in the payments due under or for the duration of customer agreements following the first month of the customer agreement. Our annualized subscription and support revenue as of Decembe r 31, 2024, for our customer cohorts for each of the years 2012 through 2024 represented an increase over the initial annualized subscription and support revenue for such customer cohorts, shown as the “Growth Multiple” above. Cohort 2024 1.0x 2023 1.2x 2022 1.1x 2021 1.1x 2020 1.2x 2019 1.4x 2018 1.5x 2017 1.7x 2016 1.9x 2015 2.2x 2014 2.6x 2013 4.4x 2012 5.1x Growth Multiple
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13 $300 $600 $900 $1,200 $1,500 200 400 600 800 1,000 Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10Y11 $100 $200 $300 $400 $500 $600 50 100 150 200 250 Y0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y10 Y11 Expanding Within Our Customers U S E R S Current ACV of ~$1.3M ACV U S E R S ACV + Core + Strategic + Core Enterprise Global Industrials CustomerEnterprise Consumer Retail Customer + Strategic + Strategic Current ACV of ~$540k Note: Case studies shown above represent select current BlackLine customer examples. + Core Strategic Solutions enable significant ACV expansion independent from user growth Higher ASPs of Strategic Solutions enable significant ACV expansion opportunities
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14 Extending the Competitive Moat Fuels Growth Indispensable Platform for the Office of the CFO • Expanded functionality for the controllership • SaaS-based platform • End-to-end accounting automation technology • Highly scalable and configurable • ERP agnostic Strong Partner Ecosystem • Strategic reseller partnership with SAP Solution Extensions • Global & regional consulting alliances • Partner validation, C-Suite access & influence, and partner deployments • Comprehensive partner enablement program Customer Engagement & Success Guide all 4,400+ customers along their path to digital transformation, accelerate platform adoption and expand net revenue retention via: • Leveraging BlackLine expertise and best practices • Providing one-on-one and one-to-many optimization workshops Indispensable Platform for the Office of the CFO Customer Engagement and Success Strong Partner Ecosystem
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15 Numerous Levers to Drive Sustained Growth New Customers Lead new customers on their accounting & finance transformations 1 Customer Expansion Drive adoption of new solutions, entities, and users among existing customers 2 International Expansion Grow existing footprint and leverage partners for ROW distribution 4 Functional Adjacencies Expand to relevant adjacencies through innovation & strategic M&A 5 Partner Ecosystem Deepen and extend partner relationships 3
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16 4Q’24 Financial Highlights 4,400 $1.6k On our 397,000+ user base 9% 95% SaaS recurring revenue 80% Highly-profitable business model $641M 6% YoY increase $879M 4% YoY increase 22% $37M of FCF generated 102% Compelling value proposition $ $$$ Customers ARPU3 Revenue Growth Gross Margin2 Total ARR1 RPO FCF Margin2 Net Revenue Retention Note: YoY growth as of December 31, 2024. 1 BlackLine defines ARR as: contracted recurring revenue components of term subscriptions and support normalized to a one -year period. 2 Represents a Non-GAAP metric. See appendix for GAAP financial measures and reconciliations. 3 Calculated as total ARR divided by total users as of December 31, 2024. + +
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17 Highly Visible Subscription Growth Model $352 $426 $523 $590 $653 2020 2021 2022 2023 2024 Total Revenue $M Subscription & Support Revenue $M Services Revenue $M $329 $399 $491 $556 $619 2020 2021 2022 2023 2024 $23 $27 $32 $34 $34 2020 2021 2022 2023 2024 11%1 Y/Y Growth 11%1 Y/Y Growth (1%)1 Y/Y Growth 1 LTM growth as of December 31, 2024. See appendix for GAAP financial measures and reconciliations.
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18 Expanding our High-Quality Customer & User Base 3,433 3,825 4,188 4,398 4,443 2020 2021 2022 2023 2024 Customers Users ‘000s 292 328 367 387 397 2020 2021 2022 2023 2024
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19 Continuously Growing Our Customer Wallet Share 603 customers with an ARR1 of $250k+ 112 162 203 251 295 367 429 485 532 2 6 7 14 27 36 48 64 71 2016 2017 2018 2019 2020 2021 2022 2023 2024 1ARR refers to annual subscription and support revenue. See appendix for BlackLine’s full definition. Data as of December 31, 2024. 56% CAGR in customers spending $1M or more $1M+$250k+ 23% CAGR in customers spending $250K or more
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20 12% 9% 6% 17% 19% 2020 2021 2022 2023 2024 Demonstrated Profitability 13% 9% 9% 25% 25% 2020 2021 2022 2023 2024 Non-GAAP Operating Income Margin1 Non-GAAP Net Income Margin1 1 See appendix for GAAP financial measures and reconciliations.
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21 Sustained Cash Flow Generation Free Cash Flow Margin 10% 13% 5% 17% 25% 2020 2021 2022 2023 2024 Note: Free cash flow defined as cash flows from operating activities less capex. 1 LTM growth as of December 31, 2024. $35 $56 $26 $99 $164 2020 2021 2022 2023 2024 Free Cash Flow $M 66%1 Y/Y Growth
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22 Target Model Framework Metric 2020 2021 2022 2023 2024 Target Model Primary Drivers Total Revenue Growth 22% 21% 23% 13% 11% 13%-16% GTM execution, strategic solutions, partnership strategy, industry strategy, platform/product innovation, gov’t Gross Margin1 83% 80% 79% 79% 79% ~85% GCP migration completion, Cloud leverage/optimization S&M (% of revenue)1 42% 41% 42% 36% 33% 32% - 34% Reduced DAC/CAC via GTM efficiency/productivity, increased ASPs, and partner leverage R&D (% of revenue)1 14% 16% 17% 15% 13% 14% - 15% Platform & product investment, R&D productivity/efficiency G&A (% of revenue)1 15% 15% 15% 12% 13% 9% - 10% G&A investment inflection point, productivity improvements, operating efficiency Operating Margin1 12% 9% 6% 17% 19% 26% - 30% Operating leverage via revenue growth, productivity/efficiency Note: 2020-21 are under ASC 606. Target Model Framework contemplates a forward-looking 3 to 5-year time horizon. 1 Represents a Non-GAAP metric. See appendix for GAAP financial measures and reconciliations.
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23 Appendix
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24 NON-GAAP RECONCILIATIONS, NON-GAAP GROSS PROFIT AND FREE CASH FLOW ($ IN 000’S) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2020 2021 2022 2023 2024 Non-GAAP Revenues GAAP revenues $120,236 $128,477 $134,268 $139,957 $138,984 $144,574 $150,708 $155,730 $157,461 $160,506 $165,909 $169,460 $351,737 $425,706 $522,938 $589,996 $653,336 Total Non-GAAP Revenues $120,236 $128,477 $134,268 $139,957 $138,984 $144,574 $150,708 $155,730 $157,461 $160,506 $165,909 $169,460 $351,737 $425,706 $522,938 $589,996 $653,336 Non-GAAP Gross Profit GAAP gross profit $89,563 $95,554 $101,842 $106,594 $103,713 $107,458 $113,914 $118,118 $118,364 $120,158 $124,803 $128,046 $282,765 $327,835 $393,553 $443,203 $491,371 Amortization of acquired developed technology 2,337 2,957 3,011 3,010 2,949 2,980 3,090 3,419 3,384 3,383 3,360 3,243 1,192 2,685 11,315 12,438 13,370 Stock-based compensation expense 1,714 2,249 2,346 2,286 2,797 3,273 3,249 3,121 2,596 3,653 3,537 3,561 6,896 8,410 8,595 12,440 13,347 Transaction-related costs 272 374 352 357 213 174 (41) 132 52 38 36 25 - - 1,355 478 151 Total Non-GAAP Gross Profit $93,886 $101,134 $107,551 $112,247 $109,672 $113,885 $120,212 $124,790 $124,396 $127,232 $131,736 $134,875 $290,853 $338,930 $414,818 $468,559 $518,239 Total Non-GAAP Gross Profit Margin 78.1% 78.7% 80.1% 80.2% 78.9% 78.8% 79.8% 80.1% 79.0% 79.3% 79.4% 79.6% 82.7% 79.6% 79.3% 79.4% 79.3% Free Cash Flow Cash flows from operating activities $176 $5,907 $24,176 $25,754 $22,867 $24,551 $37,026 $42,169 $50,425 $40,698 $55,919 $43,794 $54,735 $80,093 $56,013 $126,613 $190,836 Capitalized software development costs (4,657) (5,109) (5,186) (4,256) (6,879) (5,439) (4,519) (4,807) (6,450) (5,637) (6,114) (6,513) (10,578) (14,536) (19,208) (21,644) (24,714) Purchase of property and equipment (1,528) (5,775) (2,439) (1,232) (1,676) (1,153) (1,098) (2,026) (299) (677) (394) (756) (6,513) (8,729) (10,974) (5,953) (2,126) Financed purchases of property and equipment - (84) - - - - - - - - - - (562) (549) (84) - - Purchases of intangible assets - - - - - - - - - - - - (2,333) - - - - Free Cash Flow ($6,009) ($5,061) $16,551 $20,266 $14,312 $17,959 $31,409 $35,336 $43,676 $34,384 $49,411 $36,525 $34,749 $56,279 $25,747 $99,016 $163,996 Free Cash Flow Margin (5.0%) (3.9%) 12.3% 14.5% 10.3% 12.4% 20.8% 22.7% 27.7% 21.4% 29.8% 21.6% 9.9% 13.2% 4.9% 16.8% 25.1%
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25 NON-GAAP RECONCILIATIONS, NON-GAAP OPERATING INCOME AND NON-GAAP NET INCOME ($000’S) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2020 2021 2022 2023 2024 Non-GAAP Income from Operations GAAP income (loss) from operations ($25,364) ($12,693) ($21,419) $3,278 ($15,313) $17,920 ($1,074) $12,815 $1,748 $2,208 $8,363 $6,217 ($19,891) ($38,614) ($56,198) $14,348 $18,536 Amortization of intangible assets 4,162 5,206 5,182 5,181 5,085 5,134 5,140 5,249 5,196 5,195 5,190 4,305 7,679 10,479 19,731 20,608 19,886 Stock-based compensation expense 15,902 20,609 20,899 18,474 20,883 20,451 20,633 18,101 19,196 23,406 23,357 20,138 49,690 65,870 75,884 80,068 86,097 Change in fair value of contingent consideration (1,816) (14,042) 1,745 (21,017) 3,106 (25,535) (11,120) - - - - - 28 (2,758) (35,130) (33,549) - Legal settlement costs 690 - 1,019 - - - - - - - - - - - 1,709 - - Transaction-related costs 7,033 3,676 3,272 2,850 790 1,219 1,823 1,246 216 (6) 358 - 4,736 1,586 16,831 5,078 568 Impairment of capitalized software implementation costs - - - 5,330 - - - - - - - - - - 5,330 - - Restructuring costs - - - 3,841 1,014 135 8,664 1,151 444 928 356 (8) - - 3,841 10,964 1,720 Total Non-GAAP Income From Operations $607 $2,756 $10,698 $17,937 $15,565 $19,324 $24,066 $38,562 $26,800 $31,731 $37,624 $30,652 $42,242 $36,563 $31,998 $97,517 $126,807 Total Non-GAAP Income From Operations Margin 0.5% 2.1% 8.0% 12.8% 11.2% 13.4% 16.0% 24.8% 17.0% 19.8% 22.7% 18.1% 12.0% 8.6% 6.1% 16.5% 19.4% Non-GAAP Net Income Attributable to BlackLine Net income (loss) attributable to BlackLine1 ($10,011) ($10,665) ($20,019) $11,304 ($12,008) $30,849 $11,923 $22,069 $10,829 $76,690 $17,238 $56,417 ($46,911) ($115,161) ($29,391) $52,833 $161,174 Provision for (benefit from) income taxes related to acquisitions (13,136) 145 299 (942) (181) 286 (1,827) 526 (583) 2,902 84 (53,351) (669) (961) (13,634) (1,196) (50,948) Stock-based compensation expense 15,840 20,517 20,802 18,417 20,740 20,364 20,503 17,981 19,085 23,292 23,233 20,044 49,690 65,723 75,576 79,588 85,654 Amortization of debt discount and issuance costs 1,357 1,373 1,389 1,392 1,362 1,379 1,396 1,398 1,385 1,294 958 849 22,689 55,538 5,511 5,535 4,486 Amortization of acquired intangible assets 4,162 5,206 5,182 5,181 5,085 5,134 5,140 5,249 5,196 5,195 5,190 4,305 7,679 10,479 19,731 20,608 19,886 Change in fair value of contingent consideration (1,816) (14,042) 1,745 (21,017) 3,106 (25,535) (11,120) - - - - - 28 (2,758) (35,130) (33,549) - Transaction-related costs 7,033 3,676 3,272 2,850 790 1,219 1,823 1,246 216 (6) 358 - 4,736 1,586 16,831 5,078 568 Legal settlement costs 690 - 1,019 - - - - - - - - - - - 1,709 - - Impairment of capitalized software implementation costs - - - 5,330 - - - - - - - - - - 5,330 - - Restructuring costs - - - 3,841 1,014 135 8,664 1,151 444 928 356 (8) - - 3,841 10,964 1,720 Adjustment to redeemable non-controlling interest (3,417) (1,185) 1,375 (904) 5,192 (3,103) 1,355 1,890 3,503 (2,255) (2,989) 6,380 8,858 15,077 (4,131) 5,334 4,639 (Gain) loss on extinguishment of convertible senior notes - - - - - - - - - (65,112) - - - 7,012 - - (65,112) Total Non-GAAP Net Income Attributable to BlackLine $702 $5,025 $15,064 $25,452 $25,100 $30,728 $37,857 $51,510 $40,075 $42,928 $44,428 $34,636 $46,100 $36,535 $46,243 $145,195 $162,067 Total Non-GAAP Net Income Attributable to BlackLine Margin 0.6% 3.9% 11.2% 18.2% 18.1% 21.3% 25.1% 33.1% 25.5% 26.7% 26.8% 20.4% 13.1% 8.6% 8.8% 24.6% 24.8%
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26 NON-GAAP RECONCILIATIONS, NON-GAAP S&M, NON-GAAP R&D, NON-GAAP G&A ($000’S) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2020 2021 2022 2023 2024 GAAP Sales and Marketing Expense $60,027 $66,000 $64,540 $66,295 $61,931 $62,749 $61,576 $56,898 $61,111 $60,248 $62,219 $64,769 $174,581 $202,620 $256,862 $243,154 $248,347 Amortization of intangible assets (1,347) (1,771) (1,694) (1,693) (1,659) (1,676) (1,705) (1,751) (1,733) (1,734) (1,751) (983) (4,655) (5,883) (6,505) (6,791) (6,201) Stock-based compensation expense (5,924) (7,438) (7,257) (5,691) (6,483) (6,182) (6,123) (5,364) (5,794) (6,629) (6,745) (6,260) (21,546) (22,756) (26,310) (24,152) (25,428) Transaction-related costs (620) (825) (714) (240) 15 (206) (96) (110) 33 (54) (163) (136) - - (2,399) (397) (320) Impairment of capitalized software implementation costs - - - (3,361) - - - - - - - - - - (3,361) - - Non-GAAP Sales and Marketing Expense $52,136 $55,966 $54,875 $55,310 $53,804 $54,685 $53,652 $49,673 $53,617 $51,831 $53,560 $57,390 $148,380 $173,981 $218,287 $211,814 $216,398 % of Total Revenue 43.4% 43.6% 40.9% 39.5% 38.7% 37.8% 35.6% 31.9% 34.1% 32.3% 32.3% 33.9% 42.2% 40.9% 41.7% 35.9% 33.1% GAAP Research and Development Expense $25,248 $27,902 $27,721 $28,022 $27,105 $26,802 $26,722 $22,578 $25,015 $25,721 $25,649 $24,588 $56,464 $77,322 $108,893 $103,207 $100,973 Stock-based compensation expense (2,897) (3,810) (3,847) (3,828) (3,824) (3,708) (3,750) (1,813) (2,851) (3,499) (3,605) (3,390) (7,398) (11,110) (14,382) (13,095) (13,345) Transaction-related costs (1,542) (2,119) (2,057) (2,079) (506) (772) (746) (833) (171) 106 (151) 170 - - (7,797) (2,857) (46) Non-GAAP Research and Development Expense $20,809 $21,973 $21,817 $22,115 $22,775 $22,322 $22,226 $19,932 $21,993 $22,328 $21,893 $21,368 $49,066 $66,212 $86,714 $87,255 $87,582 % of Total Revenue 17.3% 17.1% 16.2% 15.8% 16.4% 15.4% 14.7% 12.8% 14.0% 13.9% 13.2% 12.6% 13.9% 15.6% 16.6% 14.8% 13.4% GAAP General and Administrative Expense $29,652 $14,345 $31,000 $5,158 $28,976 ($148) $18,026 $24,676 $30,046 $31,053 $28,216 $32,480 $71,611 $86,507 $80,155 $71,530 $121,795 Amortization of intangible assets (478) (478) (477) (478) (477) (478) (345) (79) (79) (78) (79) (79) (1,832) (1,911) (1,911) (1,379) (315) Stock-based compensation expense (5,367) (7,112) (7,449) (6,669) (7,779) (7,288) (7,511) (7,803) (7,955) (9,625) (9,470) (6,927) (13,850) (23,594) (26,597) (30,381) (33,977) Change in fair value of contingent consideration 1,816 14,042 (1,745) 21,017 (3,106) 25,535 11,120 - - - - - (28) 2,758 35,130 33,549 - Legal settlement costs (gains) (690) - (1,019) - - - - - - - - - - - (1,709) - - Transaction-related costs (4,599) (358) (149) (174) (86) (67) (1,022) (171) (26) (8) (8) (9) (4,736) (1,586) (5,280) (1,346) (51) Impairment of capitalized software implementation costs - - - (1,969) - - - - - - - - - - (1,969) - - Non-GAAP General and Administrative Expense $20,334 $20,439 $20,161 $16,885 $17,528 $17,554 $20,268 $16,623 $21,986 $21,342 $18,659 $25,465 $51,165 $62,174 $77,819 $71,973 $87,452 % of Total Revenue 16.9% 15.9% 15.0% 12.1% 12.6% 12.1% 13.4% 10.7% 14.0% 13.3% 11.2% 15.0% 14.5% 14.6% 14.9% 12.2% 13.4%