Blackbaud Announces 2024 Third Quarter Results
Blackbaud (NASDAQ: BLKB) reported its Q3 2024 financial results with total revenue of $286.7 million, up 3.3% year-over-year. The company's recurring revenue reached $280.0 million, representing 98% of total revenue. GAAP net income was $20.5 million with earnings per share of $0.40. The company's Social Sector, representing 89% of total revenue, grew at 6.6%. However, due to EVERFI's underperformance, Blackbaud revised its 2024 guidance to revenue of $1.150-1.160 billion with adjusted EBITDA margin of 33.0-34.0%.
Blackbaud (NASDAQ: BLKB) ha riportato i risultati finanziari per il terzo trimestre del 2024 con un fatturato totale di $286,7 milioni, in aumento del 3,3% rispetto all’anno precedente. I ricavi ricorrenti dell'azienda hanno raggiunto i $280,0 milioni, rappresentando il 98% del fatturato totale. Il reddito netto GAAP è stato di $20,5 milioni con un utile per azione di $0,40. Il settore Sociale dell'azienda, che rappresenta l'89% del fatturato totale, è cresciuto del 6,6%. Tuttavia, a causa della scarsa performance di EVERFI, Blackbaud ha rivisto la sua guida per il 2024, prevedendo un fatturato di $1,150-1,160 miliardi con un margine EBITDA rettificato del 33,0-34,0%.
Blackbaud (NASDAQ: BLKB) reportó sus resultados financieros del tercer trimestre de 2024 con ingresos totales de $286,7 millones, un aumento del 3,3% en comparación con el año anterior. Los ingresos recurrentes de la compañía alcanzaron los $280,0 millones, representando el 98% de los ingresos totales. El ingreso neto GAAP fue de $20,5 millones con ganancias por acción de $0,40. El sector Social de la compañía, que representa el 89% de los ingresos totales, creció un 6,6%. Sin embargo, debido al bajo rendimiento de EVERFI, Blackbaud revisó su guía para 2024 a ingresos de $1,150-1,160 mil millones con un margen EBITDA ajustado del 33,0-34,0%.
Blackbaud (NASDAQ: BLKB)는 2024년 3분기 재무 결과를 보고하며 총 수익이 2억 8천 6백 70만 달러로 전년 대비 3.3% 증가했다고 발표했습니다. 회사의 반복 수익은 2억 8천만 달러에 도달하여 총 수익의 98%를 차지했습니다. GAAP 순이익은 2천 5백만 달러였으며 주당 순이익은 0.40달러였습니다. 회사의 사회 부문은 총 수익의 89%를 차지하며 6.6% 성장했습니다. 그러나 EVERFI의 저조한 실적 때문에 Blackbaud는 2024년 매출 전망을 11억 5천만에서 11억 6천만 달러로 수정하였고, 조정된 EBITDA 마진은 33.0-34.0%로 조정했습니다.
Blackbaud (NASDAQ: BLKB) a annoncé ses résultats financiers pour le troisième trimestre de 2024, avec un chiffre d'affaires total de 286,7 millions de dollars, en hausse de 3,3 % par rapport à l'année précédente. Les revenus récurrents de l'entreprise ont atteint 280,0 millions de dollars, représentant 98 % du chiffre d'affaires total. Le résultat net GAAP était de 20,5 millions de dollars avec un bénéfice par action de 0,40 dollar. Le secteur social de l'entreprise, représentant 89 % des revenus totaux, a connu une croissance de 6,6 %. Cependant, en raison de la sous-performance d'EVERFI, Blackbaud a révisé ses prévisions pour 2024, prévoyant des revenus de 1,150 à 1,160 milliard de dollars avec une marge EBITDA ajustée de 33,0 à 34,0 %.
Blackbaud (NASDAQ: BLKB) gab die finanziellen Ergebnisse für das 3. Quartal 2024 bekannt, mit einem Gesamtumsatz von 286,7 Millionen Dollar, was einem Anstieg von 3,3 % im Vergleich zum Vorjahr entspricht. Der wiederkehrende Umsatz des Unternehmens erreichte 280,0 Millionen Dollar, was 98 % des Gesamtumsatzes entspricht. Der GAAP-Nettoeinkommen betrug 20,5 Millionen Dollar mit einem Gewinn pro Aktie von 0,40 Dollar. Der soziale Sektor des Unternehmens, der 89 % des Gesamtumsatzes ausmacht, wuchs um 6,6 %. Aufgrund der schlechten Leistung von EVERFI hat Blackbaud jedoch seine Prognose für 2024 auf einen Umsatz von 1,150-1,160 Milliarden Dollar mit einer bereinigten EBITDA-Marge von 33,0-34,0 % angepasst.
- Total revenue increased 3.3% YoY to $286.7 million
- Recurring revenue grew 4.1% to $280.0 million (98% of total revenue)
- Social Sector segment (89% of revenue) grew 6.6%
- GAAP operating margin improved by 740 basis points to 15.3%
- Strong cash flow with $97.6 million in adjusted free cash flow
- Non-GAAP operating margin decreased 120 basis points to 27.5%
- Adjusted EBITDA declined by $1.9 million
- Free cash flow decreased by $22.3 million
- EVERFI's continued underperformance led to downward revision of FY24 guidance
- Operating cash flow margin decreased 980 basis points to 36.3%
Insights
The Q3 results reveal mixed performance with concerning trends. While
The core Social Sector business, comprising
The company's strategic pivot toward AI integration and Microsoft partnership marks a significant technological transformation. The six waves of innovation announced at bbcon 2024, focusing on AI-powered fundraising and financial management, position Blackbaud to enhance its competitive moat in the social impact software sector.
The expansion of product offerings like Blackbaud Donation Forms to CRM and Altru customers shows commitment to platform development. The G2 recognition across multiple categories validates product strength. However, the success of these innovations will depend on execution and market adoption, particularly given the current operational challenges with EVERFI integration.
At bbcon® 2024, Blackbaud Launched Its Most Aggressive Innovation Plans Yet
"Blackbaud is a clear market leader with a path to penetrate even further into a rich market opportunity while empowering our existing customers through continued innovation. In September at our annual tech conference, bbcon, we introduced six waves of innovation that were met with overwhelming enthusiasm from our customers," said Mike Gianoni, president, CEO and vice chairman of the board of directors, Blackbaud. "Blackbaud remains focused on our operating plan and delivering an attractive multi-year financial profile of balanced mid single-digit plus organic revenue growth and improving profitability and cash flows. We plan to put our strong cash flow to work in a purposeful capital allocation strategy that benefits our stockholders. I continue to be excited about the company's mid- and long-term future."
Third Quarter 2024 Results Compared to Third Quarter 2023 Results:
- GAAP total revenue was
, up$286.7 million 3.3% and non-GAAP organic revenue increased4.3% . - GAAP recurring revenue was
, up$280.0 million 4.1% and represented98% of total revenue. Non-GAAP organic recurring revenue increased4.1% . - GAAP income from operations was
, with GAAP operating margin of$43.8 million 15.3% , an increase of 740 basis points. - Non-GAAP income from operations was
, with non-GAAP operating margin of$78.9 million 27.5% , a decrease of 120 basis points. - GAAP net income was
, with GAAP diluted earnings per share of$20.5 million , up$0.40 per share.$0.23 - Non-GAAP net income was
, with non-GAAP diluted earnings per share of$51.1 million , down$0.99 per share.$0.13 - Non-GAAP adjusted EBITDA was
, down$95.2 million , with non-GAAP adjusted EBITDA margin of$1.9 million 33.2% , a decrease of 180 basis points. - GAAP net cash provided by operating activities was
, a decrease of$104.0 million , with GAAP operating cash flow margin of$24.0 million 36.3% , a decrease of 980 basis points. - Non-GAAP free cash flow was
, a decrease of$88.3 million , with non-GAAP free cash flow margin of$22.3 million 30.8% , a decrease of 900 basis points. - Non-GAAP adjusted free cash flow was
, a decrease of$97.6 million , with non-GAAP adjusted free cash flow margin of$20.3 million 34.0% , a decrease of 850 basis points.
"The revision of our FY24 guide is a direct result of continued underperformance of EVERFI," said Tony Boor, executive vice president and CFO, Blackbaud. "We've spoken in the past about improving EVERFI's performance and evaluating strategic options. We've hired a strategic advisor to assist us in evaluating options and have recently rightsized the business to better align costs to revenues. We plan to continue to update you as appropriate in this area."
"However, we remain confident that our underlying business and our future opportunities remain strong. In the third quarter, our Social Sector, representing
An explanation of all non-GAAP financial measures referenced in this press release, including the Rule of 40, is included below under the heading "Non-GAAP Financial Measures." A reconciliation of the company's non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included below in this press release.
Recent Company Highlights
- At bbcon 2024, Blackbaud showcased the future of AI-powered fundraising and financial management for social impact organizations, rolling out six waves of innovation to build connection between solutions and teams while delivering contextual intelligence.
- Blackbaud and Microsoft announced upcoming product innovations that will enable Blackbaud customers to soon benefit from deeper integration of Microsoft AI and analytics into Blackbaud software, enabling them to achieve greater impact, gain in-depth insights and increase efficiency.
- The company released Blackbaud Donation Forms to U.S. Blackbaud CRM™ and Blackbaud Altru® customers to help social impact organizations raise more, streamline the donor experience, simplify administrative tasks, and reduce processing costs, enabling them to sustain and grow their missions.
- G2 recognized Blackbaud Raiser's Edge NXT® in its Summer 2024 Reports across 11 different categories and as an overall leader in the Donor Management, Nonprofit CRM, and Donor Prospect Research categories, based on user ratings.
- Blackbaud also celebrated the achievements of its community during the quarter, recognizing Blackbaud Partner Network Awards winners helping bring more flexibility and value to customers, celebrating customers achieving the most with their technology through the Blackbaud Impact Awards, and honoring standout fundraisers in the JustGiving Awards.
Visit www.blackbaud.com/newsroom for more information about Blackbaud's recent highlights.
Financial Outlook
Blackbaud today revised its 2024 full year financial guidance:
- GAAP revenue of
to$1.15 0 billion$1.16 0 billion - Non-GAAP adjusted EBITDA margin of
33.0% to34.0% - Non-GAAP earnings per share of
to$3.98 $4.16 - Non-GAAP adjusted free cash flow of
to$235 million $245 million
Included in its 2024 full year financial guidance are the following updated assumptions:
- Non-GAAP annualized effective tax rate is expected to be approximately
24.5% - Interest expense for the year is expected to be approximately
to$53 million $57 million - Fully diluted shares for the year are expected to be approximately 51.0 million to 52.0 million
- Capital expenditures for the year are expected to be approximately
to$65 million , including approximately$75 million to$60 million of capitalized software and content development costs$70 million
Blackbaud has not reconciled forward-looking full-year non-GAAP financial measures contained in this news release to their most directly comparable GAAP measures, as permitted by Item 10(e)(1)(i)(B) of Regulation S-K. Such reconciliations would require unreasonable efforts at this time to estimate and quantify with a reasonable degree of certainty various necessary GAAP components, including for example those related to compensation, acquisition transactions and integration, tax items or others that may arise during the year. These components and other factors could materially impact the amount of the future directly comparable GAAP measures, which may differ significantly from their non-GAAP counterparts.
In order to provide a meaningful basis for comparison, Blackbaud uses non-GAAP adjusted free cash flow in analyzing its operating performance. Non-GAAP adjusted free cash flow is defined as operating cash flow less capital expenditures, including costs required to be capitalized for software and content development, capital expenditures for property and equipment, plus cash outflows related to the previously disclosed Security Incident discovered in May 2020 (the "Security Incident"). Total costs related to the Security Incident exceeded the limit of our insurance coverage during the first quarter of 2022. For full year 2024, Blackbaud currently expects net cash outlays of
Stock Repurchase Program
As of September 30, 2024, Blackbaud had approximately
Conference Call Details
What: Blackbaud's 2024 Third Quarter Conference Call
When: October 30, 2024
Time: 8:00 a.m. (Eastern Time)
Live Call: 1-877-407-3088 (US/
Webcast: Blackbaud's Investor Relations Webpage
About Blackbaud
Blackbaud (NASDAQ: BLKB) is the leading software provider exclusively dedicated to powering social impact. Serving the nonprofit and education sectors, companies committed to social responsibility and individual change makers, Blackbaud's essential software is built to accelerate impact in fundraising, nonprofit financial management, digital giving, grantmaking, corporate social responsibility and education management. With millions of users and over
Investor Contact
IR@blackbaud.com
Media Contact
media@blackbaud.com
Forward-Looking Statements
Except for historical information, all of the statements, expectations, and assumptions contained in this news release are forward-looking statements which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding the predictability of our financial condition and results of operations. These statements involve a number of risks and uncertainties. Although Blackbaud attempts to be accurate in making these forward-looking statements, it is possible that future circumstances might differ from the assumptions on which such statements are based. In addition, other important factors that could cause results to differ materially include the following: management of integration of acquired companies; uncertainty regarding increased business and renewals from existing customers; a shifting revenue mix that may impact gross margin; continued success in sales growth; cybersecurity and data protection risks and related liabilities; potential litigation involving us; and the other risk factors set forth from time to time in the SEC filings for Blackbaud, copies of which are available free of charge at the SEC's website at www.sec.gov or upon request from Blackbaud's investor relations department. Blackbaud assumes no obligation and does not intend to update these forward-looking statements, except as required by law.
Trademarks
All Blackbaud product names appearing herein are trademarks or registered trademarks of Blackbaud, Inc.
Non-GAAP Financial Measures
Blackbaud has provided in this release financial information that has not been prepared in accordance with GAAP. Blackbaud uses non-GAAP financial measures internally in analyzing its operational performance. Accordingly, Blackbaud believes these non-GAAP measures are useful to investors, as a supplement to GAAP measures, in evaluating its ongoing operational performance and trends and in comparing its financial results from period-to-period with other companies in Blackbaud's industry, many of which present similar non-GAAP financial measures to investors. However, these non-GAAP financial measures may not be completely comparable to similarly titled measures of other companies due to potential differences in the exact method of calculation between companies.
The non-GAAP financial measures discussed above exclude the impact of certain transactions that Blackbaud believes are not directly related to its operating performance in any particular period, but are for its long-term benefit over multiple periods. Blackbaud believes these non-GAAP financial measures reflect its ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of trends in its business.
While Blackbaud believes these non-GAAP measures provide useful supplemental information, non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliations of these non-GAAP measures to their most directly comparable GAAP financial measures.
As previously disclosed, beginning in 2024, we apply a non-GAAP effective tax rate of
Non-GAAP free cash flow is defined as operating cash flow less capital expenditures, including costs required to be capitalized for software and content development, and capital expenditures for property and equipment. In addition, and in order to provide a meaningful basis for comparison, Blackbaud also uses non-GAAP adjusted free cash flow in analyzing its operating performance. Non-GAAP adjusted free cash flow is defined as operating cash flow less capital expenditures, including costs required to be capitalized for software and content development, and capital expenditures for property and equipment, plus cash outflows related to the Security Incident. Blackbaud believes non-GAAP free cash flow and non-GAAP adjusted free cash flow provide useful measures of the company's operating performance. Non-GAAP free cash flow and Non-GAAP adjusted free cash flow are not intended to represent and should not be viewed as the amount of residual cash flow available for discretionary expenditures.
In addition, Blackbaud uses non-GAAP organic revenue growth, non-GAAP organic revenue growth on a constant currency basis, non-GAAP organic recurring revenue growth and non-GAAP organic recurring revenue growth on a constant currency basis, in analyzing its operating performance. Blackbaud believes that these non-GAAP measures are useful to investors, as a supplement to GAAP measures, for evaluating the periodic growth of its business on a consistent basis. Each of these measures excludes incremental acquisition-related revenue attributable to companies, if any, acquired in the current fiscal year. For companies acquired in the immediately preceding fiscal year, each of these measures reflects presentation of full-year incremental non-GAAP revenue derived from such companies as if they were combined throughout the prior period. In addition, each of these measures excludes prior period revenue associated with divested businesses. The exclusion of the prior period revenue is to present the results of the divested businesses within the results of the combined company for the same period of time in both the prior and current periods. Blackbaud believes this presentation provides a more comparable representation of its current business' organic revenue growth and revenue run-rate.
Rule of 40 is defined as non-GAAP organic revenue growth plus non-GAAP adjusted EBITDA margin. Non-GAAP adjusted EBITDA is defined as GAAP net income plus interest, net; income tax provision (benefit); depreciation; amortization of intangible assets from business combinations; amortization of software and content development costs; stock-based compensation; employee severance; acquisition and disposition-related costs; restructuring and other real estate activities; Security Incident-related costs; and impairment of capitalized software development costs.
Blackbaud, Inc. Consolidated Balance Sheets (Unaudited) | ||
(dollars in thousands, except per share amounts) | September 30, | December 31, |
Assets | ||
Current assets: | ||
Cash and cash equivalents | $ 34,633 | $ 31,251 |
Restricted cash | 428,095 | 697,006 |
Accounts receivable, net of allowance of | 97,988 | 101,862 |
Customer funds receivable | 7,343 | 353 |
Prepaid expenses and other current assets | 87,499 | 99,285 |
Total current assets | 655,558 | 929,757 |
Property and equipment, net | 95,053 | 98,689 |
Operating lease right-of-use assets | 27,522 | 36,927 |
Software and content development costs, net | 169,507 | 160,194 |
Goodwill | 1,056,882 | 1,053,738 |
Intangible assets, net | 536,008 | 581,937 |
Other assets | 60,444 | 51,037 |
Total assets | $ 2,600,974 | $ 2,912,279 |
Liabilities and stockholders' equity | ||
Current liabilities: | ||
Trade accounts payable | $ 43,983 | $ 25,184 |
Accrued expenses and other current liabilities | 48,745 | 64,322 |
Due to customers | 434,093 | 695,842 |
Debt, current portion | 23,830 | 19,259 |
Deferred revenue, current portion | 411,554 | 392,530 |
Total current liabilities | 962,205 | 1,197,137 |
Debt, net of current portion | 977,019 | 760,405 |
Deferred tax liability | 68,196 | 93,292 |
Deferred revenue, net of current portion | 1,705 | 2,397 |
Operating lease liabilities, net of current portion | 35,218 | 40,085 |
Other liabilities | 12,304 | 10,258 |
Total liabilities | 2,056,647 | 2,103,574 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock; 20,000,000 shares authorized, none outstanding | — | — |
Common stock, | 71 | 69 |
Additional paid-in capital | 1,227,198 | 1,203,012 |
Treasury stock, at cost; 20,086,722 and 15,562,864 shares at September 30, 2024 and | (922,516) | (591,557) |
Accumulated other comprehensive loss | (6,887) | (1,688) |
Retained earnings | 246,461 | 198,869 |
Total stockholders' equity | 544,327 | 808,705 |
Total liabilities and stockholders' equity | $ 2,600,974 | $ 2,912,279 |
Blackbaud, Inc. Consolidated Statements of Comprehensive Income (Loss) (Unaudited) | |||||
(dollars in thousands, except per share amounts) | Three months ended | Nine months ended | |||
2024 | 2023 | 2024 | 2023 | ||
Revenue | |||||
Recurring | $ 280,018 | $ 269,001 | $ 832,912 | $ 784,139 | |
One-time services and other | 6,709 | 8,625 | 20,351 | 26,282 | |
Total revenue | 286,727 | 277,626 | 853,263 | 810,421 | |
Cost of revenue | |||||
Cost of recurring | 122,646 | 114,132 | 361,644 | 342,558 | |
Cost of one-time services and other | 4,871 | 7,634 | 16,779 | 23,795 | |
Total cost of revenue | 127,517 | 121,766 | 378,423 | 366,353 | |
Gross profit | 159,210 | 155,860 | 474,840 | 444,068 | |
Operating expenses | |||||
Sales, marketing and customer success | 49,454 | 52,462 | 147,400 | 160,038 | |
Research and development | 39,368 | 37,965 | 121,238 | 114,702 | |
General and administrative | 25,645 | 42,596 | 106,842 | 154,582 | |
Amortization | 918 | 793 | 2,724 | 2,355 | |
Total operating expenses | 115,385 | 133,816 | 378,204 | 431,677 | |
Income from operations | 43,825 | 22,044 | 96,636 | 12,391 | |
Interest expense | (14,140) | (9,620) | (40,131) | (31,449) | |
Other income, net | 2,997 | 5,662 | 9,654 | 10,447 | |
Income (loss) before provision (benefit) for income taxes | 32,682 | 18,086 | 66,159 | (8,611) | |
Income tax provision (benefit) | 12,140 | 9,069 | 18,567 | (5,032) | |
Net income (loss) | $ 20,542 | $ 9,017 | $ 47,592 | $ (3,579) | |
Earnings (loss) per share | |||||
Basic | $ 0.41 | $ 0.17 | $ 0.93 | $ (0.07) | |
Diluted | $ 0.40 | $ 0.17 | $ 0.91 | $ (0.07) | |
Common shares and equivalents outstanding | |||||
Basic weighted average shares | 50,409,292 | 52,704,974 | 51,067,255 | 52,495,556 | |
Diluted weighted average shares | 51,632,569 | 54,089,897 | 52,107,147 | 52,495,556 | |
Other comprehensive loss | |||||
Foreign currency translation adjustment | $ 6,463 | $ (4,794) | $ 5,617 | $ 419 | |
Unrealized (loss) gain on derivative instruments, net of tax | (13,525) | 4,093 | (10,816) | (1,216) | |
Total other comprehensive loss | (7,062) | (701) | (5,199) | (797) | |
Comprehensive income (loss) | $ 13,480 | $ 8,316 | $ 42,393 | $ (4,376) |
Blackbaud, Inc. Consolidated Statements of Cash Flows (Unaudited) | ||
Nine months ended | ||
(dollars in thousands) | 2024 | 2023 |
Cash flows from operating activities | ||
Net income (loss) | $ 47,592 | $ (3,579) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 91,618 | 81,627 |
Provision for credit losses and sales returns | 1,721 | 4,815 |
Stock-based compensation expense | 76,430 | 95,668 |
Deferred taxes | (21,776) | (31,163) |
Amortization of deferred financing costs and discount | 1,786 | 1,388 |
Loss on disposition of business | 1,561 | — |
Other non-cash adjustments | 2,462 | 5,106 |
Changes in operating assets and liabilities, net of acquisition and disposal of businesses: | ||
Accounts receivable | 918 | (4,757) |
Prepaid expenses and other assets | (873) | 14,488 |
Trade accounts payable | 18,322 | (3,362) |
Accrued expenses and other liabilities | (16,373) | 9,073 |
Deferred revenue | 18,998 | 33,679 |
Net cash provided by operating activities | 222,386 | 202,983 |
Cash flows from investing activities | ||
Purchase of property and equipment | (7,235) | (4,243) |
Capitalized software and content development costs | (42,882) | (44,664) |
Purchase of net assets of acquired companies, net of cash and restricted cash acquired | — | (13) |
Net cash used in disposition of business | (1,179) | — |
Other investing activities | (5,029) | (250) |
Net cash used in investing activities | (56,325) | (49,170) |
Cash flows from financing activities | ||
Proceeds from issuance of debt | 1,303,400 | 175,800 |
Payments on debt | (1,080,192) | (293,957) |
Debt issuance costs | (6,458) | — |
Employee taxes paid for withheld shares upon equity award settlement | (55,950) | (35,568) |
Change in due to customers | (263,732) | (339,735) |
Change in customer funds receivable | (6,777) | (3,286) |
Purchase of treasury stock | (325,408) | — |
Net cash used in financing activities | (435,117) | (496,746) |
Effect of exchange rate on cash, cash equivalents and restricted cash | 3,527 | (311) |
Net decrease in cash, cash equivalents and restricted cash | (265,529) | (343,244) |
Cash, cash equivalents and restricted cash, beginning of period | 728,257 | 733,931 |
Cash, cash equivalents and restricted cash, end of period | $ 462,728 | $ 390,687 |
The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown above in the consolidated statements of cash flows:
(dollars in thousands) | September 30, | December 31, |
Cash and cash equivalents | $ 34,633 | $ 31,251 |
Restricted cash | 428,095 | 697,006 |
Total cash, cash equivalents and restricted cash in the statement of cash flows | $ 462,728 | $ 728,257 |
Blackbaud, Inc. Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited) | |||||
(dollars in thousands, except per share amounts) | Three months ended | Nine months ended | |||
2024 | 2023 | 2024 | 2023 | ||
GAAP Revenue | $ 286,727 | $ 277,626 | $ 853,263 | $ 810,421 | |
GAAP gross profit | $ 159,210 | $ 155,860 | $ 474,840 | $ 444,068 | |
GAAP gross margin | 55.5 % | 56.1 % | 55.6 % | 54.8 % | |
Non-GAAP adjustments: | |||||
Add: Stock-based compensation expense | 2,915 | 4,145 | 10,066 | 12,242 | |
Add: Amortization of intangibles from business combinations | 14,667 | 13,117 | 43,969 | 39,364 | |
Add: Employee severance | — | — | — | 797 | |
Subtotal | 17,582 | 17,262 | 54,035 | 52,403 | |
Non-GAAP gross profit | $ 176,792 | $ 173,122 | $ 528,875 | $ 496,471 | |
Non-GAAP gross margin | 61.7 % | 62.4 % | 62.0 % | 61.3 % | |
GAAP income from operations | $ 43,825 | $ 22,044 | $ 96,636 | $ 12,391 | |
GAAP operating margin | 15.3 % | 7.9 % | 11.3 % | 1.5 % | |
Non-GAAP adjustments: | |||||
Add: Stock-based compensation expense | 18,574 | 32,379 | 76,430 | 95,668 | |
Add: Amortization of intangibles from business combinations | 15,585 | 13,910 | 46,693 | 41,719 | |
Add: Employee severance | — | 140 | — | 5,094 | |
Add: Acquisition and disposition-related costs | 246 | 7,029 | 4,899 | 6,799 | |
Add: Security Incident-related costs(1) | 637 | 4,086 | 12,782 | 48,646 | |
Subtotal | 35,042 | 57,544 | 140,804 | 197,926 | |
Non-GAAP income from operations | $ 78,867 | $ 79,588 | $ 237,440 | $ 210,317 | |
Non-GAAP operating margin | 27.5 % | 28.7 % | 27.8 % | 26.0 % | |
GAAP income (loss) before provision (benefit) for income taxes | $ 32,682 | $ 18,086 | $ 66,159 | $ (8,611) | |
GAAP net income (loss) | $ 20,542 | $ 9,017 | $ 47,592 | $ (3,579) | |
Shares used in computing GAAP diluted earnings (loss) per share | 51,632,569 | 54,089,897 | 52,107,147 | 52,495,556 | |
GAAP diluted earnings (loss) per share | $ 0.40 | $ 0.17 | $ 0.91 | $ (0.07) | |
Non-GAAP adjustments: | |||||
Add: GAAP income tax provision (benefit) | 12,140 | 9,069 | 18,567 | (5,032) | |
Add: Total non-GAAP adjustments affecting income from operations | 35,042 | 57,544 | 140,804 | 197,926 | |
Non-GAAP income before provision for income taxes | 67,724 | 75,630 | 206,963 | 189,315 | |
Assumed non-GAAP income tax provision(2) | 16,592 | 15,126 | 50,706 | 37,863 | |
Non-GAAP net income | $ 51,132 | $ 60,504 | $ 156,257 | $ 151,452 | |
Shares used in computing non-GAAP diluted earnings per share | 51,632,569 | 54,089,897 | 52,107,147 | 53,469,768 | |
Non-GAAP diluted earnings per share | $ 0.99 | $ 1.12 | $ 3.00 | $ 2.83 |
(1) | Includes Security Incident-related costs incurred during the three months ended September 30, 2024 which were insignificant, during the nine months ended September 30, 2024 of |
(2) | Beginning in 2024, we now apply a non-GAAP effective tax rate of |
Blackbaud, Inc. Reconciliation of GAAP to Non-GAAP Financial Measures (continued) (Unaudited) | |||||
(dollars in thousands) | Three months ended | Nine months ended | |||
2024 | 2023 | 2024 | 2023 | ||
GAAP revenue(1) | $ 286,727 | $ 277,626 | $ 853,263 | $ 810,421 | |
GAAP revenue growth | 3.3 % | 5.3 % | |||
Less: Non-GAAP revenue from divested businesses(2) | — | (2,692) | — | (5,189) | |
Non-GAAP organic revenue(2) | $ 286,727 | $ 274,934 | $ 853,263 | $ 805,232 | |
Non-GAAP organic revenue growth | 4.3 % | 6.0 % | |||
Non-GAAP organic revenue(3) | $ 286,727 | $ 274,934 | $ 853,263 | $ 805,232 | |
Foreign currency impact on non-GAAP organic revenue(4) | (1,024) | — | (2,130) | — | |
Non-GAAP organic revenue on constant currency basis(4) | $ 285,703 | $ 274,934 | $ 851,133 | $ 805,232 | |
Non-GAAP organic revenue growth on constant currency basis | 3.9 % | 5.7 % | |||
GAAP recurring revenue | $ 280,018 | $ 269,001 | $ 832,912 | $ 784,139 | |
GAAP recurring revenue growth | 4.1 % | 6.2 % | |||
Less: Non-GAAP recurring revenue from divested businesses(2) | — | — | — | — | |
Non-GAAP organic recurring revenue(3) | $ 280,018 | $ 269,001 | $ 832,912 | $ 784,139 | |
Non-GAAP organic recurring revenue growth | 4.1 % | 6.2 % | |||
Non-GAAP organic recurring revenue(2) | $ 280,018 | $ 269,001 | $ 832,912 | $ 784,139 | |
Foreign currency impact on non-GAAP organic recurring revenue(4) | (1,005) | — | (2,070) | — | |
Non-GAAP organic recurring revenue on constant currency basis(4) | $ 279,013 | $ 269,001 | $ 830,842 | $ 784,139 | |
Non-GAAP organic recurring revenue growth on constant | 3.7 % | 6.0 % |
(1) | Includes EVERFI revenue of |
(2) | Non-GAAP revenue from divested businesses excludes revenue associated with divested businesses. The exclusion of the prior period revenue is to present the results of the divested business with the results of the combined company for the same period of time in both the prior and current periods. |
(3) | Non-GAAP organic revenue and non-GAAP organic recurring revenue for the prior year periods presented herein may not agree to non-GAAP organic revenue and non-GAAP organic recurring revenue presented in the respective prior period quarterly financial information solely due to the manner in which non-GAAP organic revenue growth and non-GAAP organic recurring revenue growth are calculated. |
(4) | To determine non-GAAP organic revenue growth and non-GAAP organic recurring revenue growth on a constant currency basis, revenues from entities reporting in foreign currencies were translated to |
Blackbaud, Inc. Reconciliation of GAAP to Non-GAAP Financial Measures (continued) (Unaudited) | |||||
(dollars in thousands) | Three months ended | Nine months ended | |||
2024 | 2023 | 2024 | 2023 | ||
GAAP net income (loss) | $ 20,542 | $ 9,017 | $ 47,592 | $ (3,579) | |
Non-GAAP adjustments: | |||||
Add: Interest, net | 11,022 | 6,608 | 32,150 | 24,893 | |
Add: GAAP income tax provision (benefit) | 12,140 | 9,069 | 18,567 | (5,032) | |
Add: Depreciation | 3,293 | 3,293 | 9,621 | 9,901 | |
Add: Amortization of intangibles from business combinations | 15,585 | 13,910 | 46,693 | 41,719 | |
Add: Amortization of software and content development costs(1) | 13,186 | 11,573 | 37,915 | 33,113 | |
Subtotal | 55,226 | 44,453 | 144,946 | 104,594 | |
Non-GAAP EBITDA | $ 75,768 | $ 53,470 | $ 192,538 | $ 101,015 | |
Non-GAAP EBITDA margin(2) | 26.4 % | 22.6 % | |||
Non-GAAP adjustments: | |||||
Add: Stock-based compensation expense | $ 18,574 | $ 32,379 | $ 76,430 | $ 95,668 | |
Add: Employee severance | — | 140 | — | 5,094 | |
Add: Acquisition and disposition-related costs(3) | 246 | 7,029 | 4,899 | 6,799 | |
Add: Security Incident-related costs(3) | 637 | 4,086 | 12,782 | 48,646 | |
Subtotal | 19,457 | 43,634 | 94,111 | 156,207 | |
Non-GAAP adjusted EBITDA | $ 95,225 | $ 97,104 | $ 286,649 | $ 257,222 | |
Non-GAAP adjusted EBITDA margin(4) | 33.2 % | 33.6 % | |||
Rule of 40(5) | 37.5 % | 39.6 % | |||
Non-GAAP adjusted EBITDA | $ 95,225 | $ 97,104 | $ 286,649 | $ 257,222 | |
Foreign currency impact on Non-GAAP adjusted EBITDA(6) | (556) | (1,162) | (1,059) | 709 | |
Non-GAAP adjusted EBITDA on constant currency basis(6) | $ 94,669 | $ 95,942 | $ 285,590 | $ 257,931 | |
Non-GAAP adjusted EBITDA margin on constant currency basis | 33.1 % | 33.6 % | |||
Rule of 40 on constant currency basis(7) | 37.0 % | 39.3 % |
(1) | Includes amortization expense related to software and content development costs, and amortization expense from capitalized cloud computing implementation costs. |
(2) | Measured by GAAP revenue divided by non-GAAP EBITDA. |
(3) | See additional details in the reconciliation of GAAP to Non-GAAP operating income above. |
(4) | Measured by non-GAAP organic revenue divided by non-GAAP adjusted EBITDA. |
(5) | Measured by non-GAAP organic revenue growth plus non-GAAP adjusted EBITDA margin. See Non-GAAP organic revenue growth table above. |
(6) | To determine non-GAAP adjusted EBITDA on a constant currency basis, non-GAAP adjusted EBITDA from entities reporting in foreign currencies were translated to |
(7) | Measured by non-GAAP organic revenue growth on constant currency basis plus non-GAAP adjusted EBITDA margin on constant currency basis. |
(dollars in thousands) | Nine months ended | |
2024 | 2023 | |
GAAP net cash provided by operating activities | $ 222,386 | $ 202,983 |
GAAP operating cash flow margin | 26.1 % | 25.0 % |
Non-GAAP adjustments: | ||
Less: purchase of property and equipment | (7,235) | (4,243) |
Less: capitalized software and content development costs | (42,882) | (44,664) |
Non-GAAP free cash flow | $ 172,269 | $ 154,076 |
Non-GAAP free cash flow margin | 20.2 % | 19.0 % |
Non-GAAP adjustments: | ||
Add: Security Incident-related cash flows | 15,081 | 23,100 |
Non-GAAP adjusted free cash flow | $ 187,350 | $ 177,176 |
Non-GAAP adjusted free cash flow margin | 22.0 % | 21.9 % |
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SOURCE Blackbaud
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