BLACKLINE, INC.

Previous wording

We provide a unified, scalable, and flexible platform tailored to the evolving needs of the Office of the Chief Financial Officer (“CFO”) and deliver purpose-built applications that address critical processes, including financial close & consolidation, intercompany accounting, and invoice-to-cash. Our software and services provide the critical technology and industry-leading practices that deliver accurate, efficient, and intelligent financial operations. We are a holding company and conduct our operations through our wholly-owned subsidiary, BlackLine Systems.

Current wording

We provide a unified, scalable, and flexible platform tailored to the evolving needs of the Office of the Chief Financial Officer and deliver purpose-built applications that address critical processes, including financial close & consolidation, intercompany accounting, and invoice-to-cash. Our software and services provide the critical technology and industry-leading practices that deliver accurate, efficient, and intelligent financial operations. We are a holding company and conduct our operations through our wholly-owned subsidiary, BlackLine Systems.

Previous wording

At March 31, 2025, we had 393,892 individual users across 4,455 customers. Additionally, we continue to build strategic relationships with technology vendors, professional services firms, business process outsourcers, and resellers.

Current wording

At June 30, 2025, we had 389,559 individual users across 4,451 customers. Additionally, we continue to build strategic relationships with technology vendors, professional services firms, business process outsourcers, and resellers.

Previous wording

Our cloud-based solutions, increasingly powered by our BlackLine Studio360 Platform, include Account Reconciliations, Transaction Matching, Task Management, Financial Reporting Analytics, Journal Entry, Variance Analysis, Compliance, Smart Close for SAP, Cash Application, Credit & Risk Management, Collections Management, Disputes & Deductions Management, Team & Task Management, AR Intelligence, Electronic Invoicing & Payments, Intercompany Create, Intercompany Balance & Resolve, and Intercompany Net & Settle. These applications address many use cases across our customers’ financial operations and include comprehensive and flexible solutions that deliver best practices for end-to-end record-to-report and invoice-to-cash processes.

Current wording

Our cloud-based solutions, increasingly powered by our BlackLine Studio360 Platform, include Account Reconciliations, Transaction Matching, Task Management, Reporting & Analysis, Journal Entry, Account Analysis, Consolidation, Compliance, Smart Close for SAP, Cash Application, Credit & Risk Management, Collections Management, Disputes & Deductions Management, Team & Task Management, AR Intelligence, Electronic Invoicing & Payments, Intercompany Create, Intercompany Balance & Resolve, and Intercompany Net & Settle. These applications address many use cases across our customers’ financial operations and include comprehensive and flexible solutions that deliver best practices for end-to-end record-to-report and invoice-to-cash processes.

Previous wording

We derived approximately 95% of our revenue from subscriptions to our cloud-based software platform and approximately 5% from professional services for the quarter ended March 31, 2025. Our subscription contracts have initial non-cancellable terms of one year to three years with renewal options. The majority of new contracts in 2024 and during the quarter ended March 31, 2025 had an initial non-cancellable term of three years. We have updated our subscription pricing models to address the value of BlackLine solutions based on a number of factors, including customer size, the products involved in delivering our solutions, and volumetrics, such as transactions or entities. We typically invoice customers annually in advance for subscriptions, which is initially recorded as deferred revenue and recognized ratably over the term of the customer contract. The first year of subscription fees are typically payable within 30 days after execution of a contract, and thereafter upon renewal.

Current wording

We derived approximately 95% of our revenue from subscriptions to our cloud-based software platform and approximately 5% from professional services for the six months ended June 30, 2025. Our subscription contracts have initial non-cancellable terms of one year to three years with renewal options. The majority of new contracts in 2024 and during the six months ended June 30, 2025 had an initial non-cancellable term of three years. We have updated our subscription pricing models to address the value of BlackLine solutions based on a number of factors, including customer size, the products involved in delivering our solutions, and volumetrics, such as transactions or entities. We typically invoice customers annually in advance for subscriptions, which is initially recorded as deferred revenue and recognized ratably over the term of the customer contract. The first year of subscription fees are typically payable within 30 days after execution of a contract, and thereafter upon renewal.

Previous wording

Professional services consist primarily of implementation and consulting services. With the exception of our intercompany accounting solutions acquired as part of our acquisition of FourQ Systems, Inc. (“FourQ”), our product offerings are available for immediate use on our platform after granting access to a new customer. We typically help customers implement our solutions, and we also provide consulting services to help customers optimize the use of our products. We invoice customers for our consulting services on a time-and-materials basis and recognize that revenue as services are performed. A limited number of our customers are provided professional services for a fixed fee, for which we invoice in advance. The fee is initially recorded as deferred revenue and recognized on a proportional-performance basis as the services are rendered.

Current wording

Professional services consist primarily of implementation and consulting services. Our product offerings are available for immediate use on our platform after granting access to a new customer. We typically help customers implement our solutions, and we also provide consulting services to help customers optimize the use of our products. We invoice customers for our consulting services on a time-and-materials basis and recognize that revenue as services are performed. A limited number of our customers are provided professional services for a fixed fee, for which we invoice in advance. The fee is initially recorded as deferred revenue and recognized on a proportional-performance basis as the services are rendered.

Previous wording

We sell our solutions primarily through our direct sales force, which leverages our relationships with technology vendors, professional services firms and business process outsourcers. In particular, our solution integrates with SAP’s enterprise resource planning (“ERP”) solutions, and SAP is part of the reseller channel that we use in the ordinary course of business. SAP has the ability to resell our solutions as SAP solution-extensions (“SolEx”), for which we receive a percentage of the revenues. We also have an agreement with Google Cloud in which we collaborate with them on joint selling and go-to-market activities and bring enhanced automation solutions for finance and accounting to new and existing customers.

Current wording

We sell our solutions primarily through our direct sales force, which leverages our relationships with technology vendors, professional services firms, and business process outsourcers. In particular, our solution integrates with SAP’s enterprise resource planning (“ERP”) solutions, and SAP is part of the reseller channel that we use in the ordinary course of business. SAP has the ability to resell our solutions as SAP solution-extensions (“SAP SolEx”), for which we receive a percentage of the revenues. We also have an agreement with Google Cloud in which we collaborate with them on joint selling and go-to-market activities and bring enhanced automation solutions for finance and accounting to new and existing customers.

Previous wording

Our ability to maximize the lifetime value of our customer relationships will depend, in part, on the willingness of customers to purchase additional user licenses and products from us. We rely on our sales and customer success teams to support and grow our existing customers by maintaining high customer satisfaction and educating customers on the value all our products provide.

Current wording

Our ability to maximize the lifetime value of our customer relationships depends, in part, on the willingness of customers to purchase additional user and customer licenses and products from us. We rely on our sales and customer success teams to support and grow our existing customers by maintaining high customer satisfaction and educating customers on the value all our products provide.

Previous wording

For the quarters ended March 31, 2025 and 2024, we had revenues totaling $166.9 million and $157.5 million, respectively. We generated net income attributable to BlackLine, Inc. of $6.1 million and $10.8 million for the quarters ended March 31, 2025 and 2024, respectively.

Current wording

For the quarters ended June 30, 2025 and 2024, we had revenues totaling $172.0 million and $160.5 million, respectively. We generated net income attributable to BlackLine, Inc. of $8.3 million and $76.7 million for the quarters ended June 30, 2025 and 2024, respectively.

Previous wording

Our operating results may vary based on the impact of changes in our industry or the global economy on us or our customers. General macroeconomic conditions, such as a recession, inflation or rising interest rates, an economic downturn in the United States (“U.S.”) or internationally, adverse business conditions and liquidity concerns, or bank failures or instability in the financial services sector, has and could continue to adversely affect demand for our products and make it difficult to accurately forecast and plan our future business activities. As a result of economic uncertainty, we have seen customers delay and defer purchasing decisions, which has adversely impacted our near-term demand.

Current wording

Our operating results may vary based on the impact of changes in our industry or the global economy on us or our customers. General macroeconomic conditions, such as a recession, inflation or rising interest rates, an economic downturn in the United States (“U.S.”) or internationally, adverse business conditions and liquidity concerns, has and could continue to adversely affect demand for our products and make it difficult to accurately forecast and plan our future business activities. As a result of economic uncertainty, we have seen customers delay and defer purchasing decisions, which has adversely impacted our near-term demand.

Previous wording

On March 4, 2025, we announced a restructuring program that was designed to reduce our global workforce by approximately 7%, or 130 total positions. All of the actions are part of ongoing organizational alignment and performance management initiatives as we continue to focus on key strategic priorities. Refer to "Note 9 - Restructuring Costs" in our condensed consolidated financial statements for additional information on this program.

Current wording

On March 4, 2025, we announced a restructuring program that was designed to reduce our global workforce by approximately 7%, or 130 total positions (the “Fiscal 2025 restructuring program”). All of the actions are part of ongoing organizational alignment and performance management initiatives as we continue to focus on key strategic priorities. Refer to "Note 9 - Restructuring Costs" in our unaudited condensed consolidated financial statements for additional information on this program.

Previous wording

Dollar-based net revenue retention rate. We believe that dollar-based net revenue retention rate is an important metric to measure the long-term value of customer agreements and our ability to retain and grow our relationships with existing customers over time. We calculate dollar-based net revenue retention rate as the implied monthly subscription and support revenue at the end of a period for the base set of customers from which we generated subscription revenue in the year prior to the calculation, divided by the implied monthly subscription and support revenue one year prior to the date of calculation for that same customer base. This calculation does not reflect implied monthly subscription and support revenue for new customers added during the one-year period but does include the effect of customers who terminated during the period. We define implied monthly subscription and support revenue as the total amount of minimum subscription and support revenue contractually committed to, under each of our customer agreements over the entire term of the agreement, divided by the number of months in the term of the agreement. At March 31, 2025, our dollar-based net revenue retention rate increased from the year ended December 31, 2024 due to a higher rate of acquiring customer accounts and the impact of favorable foreign exchange rates. Our ability to maximize the lifetime value of our customer relationships will depend, in part, on the willingness of the customer to purchase additional user licenses and products from us. We rely on our customer success and sales teams to support and grow our existing customers by maintaining high customer satisfaction and educating the customer on the value our products provide.

Current wording

Dollar-based net revenue retention rate. We believe that dollar-based net revenue retention rate is an important metric to measure the long-term value of customer agreements and our ability to retain and grow our relationships with existing customers over time. We calculate dollar-based net revenue retention rate as the implied monthly subscription and support revenue at the end of a period for the base set of customers from which we generated subscription revenue in the year prior to the calculation, divided by the implied monthly subscription and support revenue one year prior to the date of calculation for that same customer base. This calculation does not reflect implied monthly subscription and support revenue for new customers added during the one-year period but does include the effect of customers who terminated during the period. We define implied monthly subscription and support revenue as the total amount of minimum subscription and support revenue contractually committed to, under each of our customer agreements over the entire term of the agreement, divided by the number of months in the term of the agreement. At June 30, 2025, our dollar-based net revenue retention rate increased from the quarter ended March 31, 2025 due to the impact of favorable foreign exchange rates. Our ability to maximize the lifetime value of our customer relationships will depend, in part, on the willingness of the customer to purchase additional user licenses and products from us. We rely on our customer success and sales teams to support and grow our existing customers by maintaining high customer satisfaction and educating the customer on the value our products provide.

Previous wording

Number of customers. We believe that our ability to expand our customer base is an indicator of our market penetration and the growth of our business. We define a customer as a company that contributes to our subscription and support revenue as of the measurement date. In situations where an organization has multiple subsidiaries or divisions, each entity that is invoiced as a separate entity is treated as a separate customer. However, where an existing customer requests its invoice be divided for the sole purpose of restructuring its internal billing arrangement without any incremental increase in revenue, such customer continues to be treated as a single customer. For the quarters ended March 31, 2025 and 2024, no single customer accounted for more than 10% of our total revenues.

Current wording

Number of customers. We believe that our ability to expand our customer base is an indicator of our market penetration and the growth of our business. We define a customer as a company that contributes to our subscription and support revenue as of the measurement date. In situations where an organization has multiple subsidiaries or divisions, each entity that is invoiced as a separate entity is treated as a separate customer. However, where an existing customer requests its invoice be divided for the sole purpose of restructuring its internal billing arrangement without any incremental increase in revenue, such customer continues to be treated as a single customer. For the quarters and six months ended June 30, 2025 and 2024, no single customer accounted for more than 10% of our total revenues.

Previous wording

Number of users. Since our customers generally pay fees based on the number of users on our platform within their organization, we believe the total number of users is an indicator of the growth of our business. While the fees for the majority of the products we sell are user-based, we anticipate that we will see a higher volume of transactions based on our updated pricing models that are based on additional factors, including customer size, product mix, and volumetrics, such as transactions or entities.

Current wording

Number of users. As the vast majority of our customers generally pay fees based on the number of users on our platform within their organization, we believe that the total number of users continues to be an indicator of the status of our business. We anticipate that in the future, we will see a higher volume of customers on our updated pricing models that are based on other factors including product mix, customer size, and volumetrics, such as transactions or entities.

Previous wording

Non-GAAP Net Income Attributable to BlackLine and Diluted Non-GAAP Net Income Per Share Attributable to BlackLine, Inc. Non-GAAP net income attributable to BlackLine is defined as GAAP net income attributable to BlackLine adjusted for the impact of the provision for (benefit from) income taxes related to acquisitions, amortization of intangible assets, stock-based compensation, amortization of debt issuance costs from our 0.00% Convertible Senior Notes due in 2026 (the “2026 Notes”) and 1.00% Convertible Senior Notes due in 2029 (the “2029 Notes” and, together with the 2026 Notes, the “Notes” or “convertible senior notes”), change in fair value of contingent consideration, transaction-related costs, legal settlement gains or costs, restructuring costs, adjustment to the redeemable non-controlling interest to the redemption amount, and gain on extinguishment of convertible senior notes. Diluted non-GAAP net income per share attributable to BlackLine, Inc. includes the adjustment for shares resulting from the elimination of stock-based compensation. We believe that presenting non-GAAP net income attributable to BlackLine is useful to investors as it eliminates the impact of items that have been impacted by our acquisitions and other related costs to allow a direct comparison of net income between all periods presented.

Current wording

Non-GAAP Net Income Attributable to BlackLine and Diluted Non-GAAP Net Income Per Share Attributable to BlackLine, Inc. Non-GAAP net income attributable to BlackLine is defined as GAAP net income attributable to BlackLine adjusted for the income tax effects of acquisitions, stock-based compensation shortfalls and windfalls, and the discrete tax impact of other non-GAAP adjustments, amortization of intangible assets, stock-based compensation, amortization of debt issuance costs from our 0.00% Convertible Senior Notes due in 2026 (the “2026 Notes”) and 1.00% Convertible Senior Notes due in 2029 (the “2029 Notes” and, together with the 2026 Notes, the “Notes” or “convertible senior notes”), change in fair value of contingent consideration, transaction-related costs, legal settlement gains or costs, restructuring costs, adjustment to the redeemable non-controlling interest to the redemption amount, and gain on extinguishment of convertible senior notes. Diluted non-GAAP net income per share attributable to BlackLine, Inc. includes the adjustment for shares resulting from the elimination of stock-based compensation. We believe that presenting non-GAAP net income attributable to BlackLine is useful to investors as it eliminates the impact of items that have been impacted by our acquisitions and other related costs to allow a direct comparison of net income between all periods presented.

Previous wording

Comparison of Quarters Ended March 31, 2025 and 2024

Current wording

Comparison of Quarters and Six Months Ended June 30, 2025 and 2024

Previous wording

The increase in revenues for the quarter ended March 31, 2025, compared to the quarter ended March 31, 2024, was primarily driven by revenue from existing customers, which also grew from additional users and product expansion. The total number of customers and users at March 31, 2025, increased by 1% and 2%, respectively, as compared to March 31, 2024.

Current wording

The increase in revenues for the quarter and six months ended June 30, 2025, compared to the quarter and six months ended June 30, 2024, was primarily driven by revenue from product expansion from existing customers and bookings from new customers. The total number of customers at June 30, 2025 remained flat as compared to June 30, 2024. The total number of users at June 30, 2025 decreased by 2%, as compared to June 30, 2024, due to customer migrations to our new platform pricing model.

Previous wording

•$1.2 million increase in computer software expenses due to higher spend on cloud hosting services as customers continue to migrate to the Google Cloud Platform (“GCP”), as well as upgrades to support business growth;

Current wording

•$1.5 million increase in computer software expenses due to higher spend on cloud hosting services as customers continue to migrate to the Google Cloud Platform (“GCP”), as well as upgrades to support business growth;

Previous wording

•$1.0 million increase in amortization of developed technology due to net additions to software placed into service; and

Current wording

•$1.1 million increase in amortization of developed technology due to net additions to software placed into service; and

Previous wording

•$0.4 million increase in employee events;

Current wording

•$0.4 million increase in professional fees; partially offset by

Previous wording

•$0.3 million increase in digital marketing expenses, partially offset by the timing of our international BeyondTheBlack event; and

Current wording

•$1.2 million increase in digital marketing expenses and a change in the timing of our international user conference; and

Previous wording

•$0.3 million increase in computer software expenses to support internal automation and scalability initiatives; partially offset by

Current wording

•$0.6 million increase in computer software expenses to support internal automation and scalability initiatives; and

Previous wording

•$1.5 million increase in employee compensation and benefits primarily due to an increase in average headcount, partially offset by a decrease in average compensation per employee; partially offset by

Current wording

•$2.6 million increase in employee compensation and benefits, partially offset by a decrease in average compensation per employee due to an increase in offshore headcount; partially offset by

Previous wording

•$0.5 million increase in capitalized software costs primarily due to required updates to access new markets, and ongoing development of cloud-based and new solution offerings. Collectively, these increases resulted in a decrease in net expenses; and

Current wording

•$0.5 million increase in capitalized software costs primarily due to required updates to access new markets, and ongoing development of cloud-based and new solution offerings. Collectively, these increases resulted in a decrease in net expenses.

Previous wording

•$3.1 million decrease due to an increase in net foreign currency gains due to the strengthening of multiple currencies against the U.S. Dollar;

Current wording

•$5.8 million decrease primarily due to net foreign currency gains driven by the strengthening of multiple currencies against the U.S. Dollar, net of the impact of foreign currency forward contracts;

Previous wording

•$0.9 million decrease in professional fees; and

Current wording

•$1.3 million decrease in professional fees; and

Previous wording

•$2.8 million increase primarily related to advisory and legal-related expenses.

Current wording

•$3.1 million increase primarily related to advisory and legal-related expenses.

Previous wording

Restructuring costs of $5.3 million incurred during the quarter ended March 31, 2025 related to one-time termination benefits under the Fiscal 2025 restructuring program while restructuring costs of $0.4 million incurred during the quarter ended March 31, 2024 related to one-time termination benefits under the Fiscal 2023 restructuring program. Refer to “Note 9 - Restructuring Costs” in our condensed consolidated financial statements for additional information.

Current wording

Restructuring costs of $1.0 million and $6.3 million were incurred during the quarter and six months ended June 30, 2025, respectively, related to one-time termination benefits under the Fiscal 2025 restructuring program, while restructuring costs of $0.9 million and $1.4 million were incurred during the quarter and six months ended June 30, 2024, respectively, related to one-time termination benefits under the Fiscal 2023 restructuring program. Refer to “Note 9 - Restructuring Costs” in our unaudited condensed consolidated financial statements for additional information.

Previous wording

The decrease in interest income during the quarter ended March 31, 2025, compared to the quarter ended March 31, 2024, was due to decreased average balances on our investments and, to a lesser extent, a decrease in average rates on our investments and cash balances.

Current wording

The decrease in interest income during the quarter and six months ended June 30, 2025, compared to the quarter and six months ended June 30, 2024, was due to decreased average balances on our investments and, to a lesser extent, a decrease in average interest rates on our investments and cash balances.

Previous wording

The increase in interest expense during the quarter ended March 31, 2025, compared to the quarter ended March 31, 2024, was primarily due to the cash interest expense and amortization of debt issuance costs related to our 2029 Notes issued in May 2024, partially offset by a decrease in interest expense from the partial repurchase of our 2026 Notes and the repayment of our 2024 Notes in August 2024. Refer to “Note 8 - Convertible Senior Notes” in our condensed consolidated financial statements for additional information.

Current wording

The increase in interest expense during the quarter and six months ended June 30, 2025, compared to the quarter and six months ended June 30, 2024, was primarily due to the cash interest expense and amortization of debt issuance costs related to our 2029 Notes issued in May 2024, partially offset by a decrease in interest expense from the partial repurchase of our 2026 Notes and the repayment of our 2024 Notes in August 2024. Refer to “Note 8 - Convertible Senior Notes” in our unaudited condensed consolidated financial statements for additional information.

Previous wording

We are subject to federal and state income taxes in the U.S. and taxes in foreign jurisdictions. For the quarter ended March 31, 2025, our annual estimated effective tax rate differed from the U.S. federal statutory rate of 21% primarily as a result of non-deductible officer compensation, stock-based compensation shortfalls, foreign taxes, and changes in our valuation allowance for income taxes.

Current wording

We are subject to federal and state income taxes in the U.S. and taxes in foreign jurisdictions. For the quarter and six months ended June 30, 2025, our annual estimated effective tax rate differed from the U.S. federal statutory rate of 21% primarily as a result of non-deductible officer compensation, stock-based compensation shortfalls, foreign taxes, and changes in our valuation allowance for income taxes.

Previous wording

For the quarters ended March 31, 2025 and 2024, we recorded income tax expense of $4.7 million and $0.9 million, respectively. The increase in income tax expense for the quarter ended March 31, 2025, compared to the quarter ended March 31, 2024, resulted primarily from stock-based compensation shortfalls for the quarter ended March 31, 2025, along with changes in valuation allowance and changes in the mix of profitable foreign jurisdictions.

Current wording

For the quarters ended June 30, 2025 and 2024, we recorded $6.2 million and $4.3 million in income tax expense, respectively. For the six months ended June 30, 2025 and 2024, we recorded $10.8 million and $5.2 million in income tax expense, respectively. The increase in income tax expense for the quarter and six months ended June 30, 2025 compared to the prior year comparative periods ended June 30, 2024, resulted primarily from non-deductible officer compensation and stock-based compensation shortfalls, along with changes in valuation allowance and changes in the mix of profitable foreign jurisdictions.

Previous wording

At March 31, 2025, our principal sources of liquidity were an aggregate of $866.5 million of cash and cash equivalents and marketable securities, which primarily consist of short-term, money market mutual funds, commercial paper, and U.S. treasury securities.

Current wording

At June 30, 2025, our principal sources of liquidity were an aggregate of $857.4 million of cash and cash equivalents and marketable securities, which primarily consist of short-term, money market mutual funds, U.S. treasury securities, and commercial paper.

Previous wording

We had $905.2 million aggregate principal amount of Notes outstanding at March 31, 2025, of which $230.2 million is due within the next 12 months. We plan to, and believe we are able to, make all expected principal and interest payments in the next 12 months.

Current wording

We had $905.2 million aggregate principal amount of Notes outstanding at June 30, 2025, of which $230.2 million is due in March 2026. We plan to, and believe we are able to, make all expected principal and interest payments in the next 12 months.

Previous wording

At March 31, 2025, we have obligations totaling $28.1 million related to existing property and equipment leases.

Current wording

At June 30, 2025, we have obligations totaling $27.1 million related to existing property and equipment leases.

Previous wording

Purchase obligations represent our most significant contractual obligations in the ordinary course of business for which we have not received the related goods or services, in whole or in part. At March 31, 2025, we have $206 million of contractual obligations related to eleven commitments, with $60 million payable within 12 months, and have additional contractual obligations with other vendors that are individually immaterial and which we can readily settle given our liquidity position and capital resources.

Current wording

Purchase obligations represent our most significant contractual obligations in the ordinary course of business for which we have not received the related goods or services, in whole or in part. At June 30, 2025, we have $205 million of contractual obligations, with $64 million payable within 12 months, and have additional contractual obligations with other vendors that are individually immaterial and which we can readily settle given our liquidity position and capital resources.

Previous wording

At March 31, 2025, while we have liabilities for unrecognized tax benefits of $19.1 million, due to their nature, there is a high degree of uncertainty regarding the timing of future cash outflows and other events that extinguish these liabilities.

Current wording

At June 30, 2025, while we have liabilities for unrecognized tax benefits of $19.6 million, due to their nature, there is a high degree of uncertainty regarding the timing of future cash outflows and other events that extinguish these liabilities.

Previous wording

For the quarter ended March 31, 2025, cash provided by operating activities was $46.7 million, resulting from net non-cash expenses of approximately $28.9 million, net cash flows provided as a result of changes in operating assets and liabilities of $12.6 million, and net income of $5.3 million. The $12.6 million of net cash flows provided as a result of changes in our operating assets and liabilities reflected primarily the following:

Current wording

For the six months ended June 30, 2025, cash provided by operating activities was $79.1 million, resulting from net non-cash expenses of approximately $63.6 million, net income of $12.7 million, and net cash flows provided as a result of changes in operating assets and liabilities of $2.8 million. The $2.8 million of net cash flows provided as a result of changes in our operating assets and liabilities reflected primarily the following:

Previous wording

•$32.7 million decrease in accounts receivable primarily due to increased collections.

Current wording

•$5.5 million decrease in accounts receivable primarily due to increased collections;

Previous wording

•$6.8 million decrease in accounts payable due to timing of payments;

Current wording

•$2.5 million increase in accounts payable due to timing of payments; and

Previous wording

•$14.8 million decrease in accrued expenses and other current liabilities primarily due to annual bonus payments;

Current wording

•$13.0 million decrease in accrued expenses and other current liabilities primarily due to annual bonus payments;