Blackbaud Announces Impairment Charge Related to EVERFI Assets
Blackbaud (NASDAQ: BLKB) announced it will record a material pre-tax noncash impairment charge of up to approximately $415 million for its EVERFI asset group in Q4 2024. The charge comes as EVERFI has been performing below expectations, leading Blackbaud to consider various alternatives, including a potential divestiture of the business.
CEO Mike Gianoni emphasized that while this noncash charge is necessary for accounting compliance, EVERFI continues to support its customers in social impact initiatives. He also affirmed that Blackbaud's core business remains strong as the company evaluates its long-term strategic approach to EVERFI.
Blackbaud (NASDAQ: BLKB) ha annunciato che registrerà un'imposta non monetaria per diminuzione di valore pre-tassata di fino a circa 415 milioni di dollari per il suo gruppo di attività EVERFI nel quarto trimestre del 2024. Questa imposta si verifica poiché EVERFI ha avuto performance al di sotto delle aspettative, spingendo Blackbaud a considerare varie alternative, inclusa una potenziale cessione del business.
Il CEO Mike Gianoni ha sottolineato che, sebbene questa imposta non monetaria sia necessaria per la conformità contabile, EVERFI continua a supportare i propri clienti nelle iniziative di impatto sociale. Ha anche confermato che il core business di Blackbaud rimane forte mentre l'azienda valuta il proprio approccio strategico a lungo termine verso EVERFI.
Blackbaud (NASDAQ: BLKB) anunció que registrará un cargo por deterioro no monetario antes de impuestos de hasta aproximadamente 415 millones de dólares para su grupo de activos EVERFI en el cuarto trimestre de 2024. Este cargo se produce ya que EVERFI ha estado funcionando por debajo de las expectativas, lo que lleva a Blackbaud a considerar diversas alternativas, incluida una posible desinversión del negocio.
El CEO Mike Gianoni enfatizó que, aunque este cargo no monetario es necesario para cumplir con la normativa contable, EVERFI sigue apoyando a sus clientes en iniciativas de impacto social. También afirmó que el negocio central de Blackbaud sigue siendo sólido mientras la empresa evalúa su enfoque estratégico a largo plazo hacia EVERFI.
블랙바우드 (NASDAQ: BLKB)는 2024년 4분기에 EVERFI 자산 그룹에 대해 최대 4억 1500만 달러의 세전 비현금 손상 비용을 기록할 것이라고 발표했습니다. 이 손실은 EVERFI의 실적이 기대에 미치지 못하고 있어 블랙바우드가 해당 사업의 매각을 포함한 다양한 대안을 고려하게 된 것입니다.
CEO 마이크 지아노니는 이 비현금 손실이 회계 준수를 위해 필요하다고 강조하면서, EVERFI는 사회적 영향 이니셔티브에서 고객을 지속적으로 지원하고 있다고 말했습니다. 그는 또한 블랙바우드의 핵심 사업이 여전히 강력하며, 회사가 EVERFI에 대한 장기 전략 접근 방식을 평가하고 있다고 확인했습니다.
Blackbaud (NASDAQ: BLKB) a annoncé qu'il enregistrera une charge non monétaire d'amortissement avant impôts pouvant aller jusqu'à environ 415 millions de dollars pour son groupe d'actifs EVERFI au quatrième trimestre 2024. Cette charge survient alors qu'EVERFI a enregistré des performances inférieures aux attentes, amenant Blackbaud à envisager diverses alternatives, y compris une éventuelle cession de l'activité.
Le PDG Mike Gianoni a souligné que bien que cette charge non monétaire soit nécessaire pour la conformité comptable, EVERFI continue de soutenir ses clients dans des initiatives d'impact social. Il a également affirmé que l'activité principale de Blackbaud reste solide alors que l'entreprise évalue son approche stratégique à long terme vis-à-vis d'EVERFI.
Blackbaud (NASDAQ: BLKB) gab bekannt, dass es im vierten Quartal 2024 einen materiellen vorsteuerlichen nicht zahlungswirksamen Wertminderungsaufwand von bis zu etwa 415 Millionen US-Dollar für seine EVERFI-Vermögensgruppe verbuchen wird. Diese Belastung ergibt sich, da EVERFI hinter den Erwartungen bleibt, was Blackbaud dazu veranlasst, verschiedene Alternativen zu prüfen, einschließlich einer möglichen Veräußerung des Geschäfts.
CEO Mike Gianoni betonte, dass dieser nicht zahlungswirksame Aufwand zwar notwendig für die Rechnungslegung ist, EVERFI jedoch weiterhin seine Kunden bei Initiativen mit sozialem Einfluss unterstützt. Er bestätigte auch, dass das Kerngeschäft von Blackbaud stark bleibt, während das Unternehmen seine langfristige strategische Ausrichtung für EVERFI bewertet.
- Core business remains strong according to management
- Company actively addressing underperforming assets through strategic alternatives
- Up to $415 million impairment charge to be recorded in Q4 2024
- EVERFI performing below expectations
- Potential divestiture of EVERFI business indicates strategic failure
Insights
As previously disclosed, due to EVERFI performing below expectations, Blackbaud is considering a range of alternatives for EVERFI, one of which includes a potential divestiture of the business. The impairment charge was determined to be necessary as part of this process.
"To comply with generally accepted accounting principles, we're planning to record this noncash charge in the fourth quarter," said Mike Gianoni, president, CEO and vice chairman of the board of directors. "We want to emphasize that EVERFI remains well positioned to support its customers and continue helping companies dedicated to social impact reach communities through custom education and workplace solutions for today's key issues. In addition, Blackbaud's core business remains strong, and we are committed to helping customers around the world use technology to drive meaningful social impact. As we determine our long-term strategic approach to the EVERFI business, we will continue to provide updates."
Additional details can be found in Blackbaud's Form 8-K filed today with the SEC.
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
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Forward-looking Statements
Except for historical information, all of the statements, expectations and assumptions contained in this Current Report on Form 8-K are forward- looking statements that are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding the Company's estimates regarding the impairment charge related to the EVERFI assets. These statements involve a number of risks and uncertainties. Although we attempt 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 risk factors set forth from time to time in our filings with the Securities and Exchange Commission (the "SEC"), copies of which are available free of charge at the SEC's website at www.sec.gov or upon request from our investor relations department. We assume no obligation and do not intend to update these forward- looking statements, except as required by law.
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SOURCE Blackbaud
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