Blackbaud Newsroom

Blackbaud Announces 2016 Second Quarter Results

Strong Execution Drives 15.3% GAAP Revenue Growth;
Non-GAAP Organic Revenue Growth Accelerates to 9.4%


Charleston, S.C. (August 1, 2016) – Blackbaud (NASDAQ: BLKB), the world’s leading cloud software company powering social good, today announced financial results for its second quarter ended June 30, 2016.

“Execution against our strategic plan is driving strong and balanced revenue growth across our portfolio,” said Mike Gianoni, Blackbaud’s president and CEO. “Our next generation solutions are widening the gap between Blackbaud and the competition, positioning us well for future growth, and ultimately delivering greater value for our customers.”

Second Quarter 2016 Results:

  • Total GAAP revenue was $180.2 million, up 15.3% from one year ago, with $141.5 million in GAAP recurring revenue, representing 78.5% of total revenue.
  • Total non-GAAP revenue was $182.0 million, up 14.7% from one year ago, with $143.3 million in non-GAAP recurring revenue, representing 78.7% of total non-GAAP revenue.
  • Non-GAAP organic revenue increased 9.4% and non-GAAP organic recurring revenue increased 11.5%.
  • GAAP income from operations decreased 1.8% to $14.2 million, with GAAP operating margin decreasing 140 basis points to 7.9%.
  • Non-GAAP income from operations increased 6.4% to $34.8 million, with non-GAAP operating margin decreasing 150 basis points to 19.1%.
  • GAAP net income increased 10.9% to $7.8 million, with GAAP diluted earnings per share up $0.02 to $0.17.
  • Non-GAAP net income increased 13.2% to $21.8 million, with non-GAAP diluted earnings per share up $0.05 to $0.46.
  • Cash flow from operations was $37.9 million, down from $43.3 million one year ago.

“We posted another strong quarter, and we’re confident in our ability to achieve full year guidance which we’ve modified slightly for operating cash flow” said Tony Boor, Blackbaud’s executive vice president and CFO. “Our current non-GAAP financial guidance accelerates organic revenue growth, improves profitability, and increases cash flow for the full year when compared to 2015.”

Company Highlights:

  • Released SKY Reporting for Raisers Edge NXTTM customers by leveraging Blackbaud SKYTM capabilities
  • The acquisition of accelerated Blackbaud’s ability to integrate critical social media capabilities into its portfolio of solutions
  • Blackbaud opened a new Canadian office and training center in Toronto, Ontario
  • Released Blackbaud Success Assurance for Higher Education to bring a modern, end-to-end solution approach to higher education institutions
  • Named in Forbes’ Annual Fast Tech 25 list as one of this year’s fastest growing public tech companies, as well as Forbes’ 2016 Most Innovative Growth Companies ranking

Blackbaud announced today that its Board of Directors has declared a third quarter 2016 dividend of $0.12 per share payable on September 15, 2016 to stockholders of record on August 26, 2016.

Financial Outlook
Updated full year financial guidance.

  • Non-GAAP revenue of $725.0 million to $740.0 million
  • Non-GAAP income from operations of $141.0 million to $147.0 million
  • Non-GAAP operating margin of 19.4% to 19.9%
  • Non-GAAP diluted earnings per share of $1.90 to $1.98
  • Cash flow from operations of $135.0 million to $145.0 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.

Conference Call Details

What:           Blackbaud’s Fiscal 2016 Second Quarter Conference Call

When:          August 2, 2016

Time:           8:00 a.m. (Eastern Time)

Live Call:    1-888-461-2018 (domestic) or 1-719-457-2712 (international); passcode 132904.

Webcast:     Blackbaud’s Investor Relations Webpage

About Blackbaud
Blackbaud (NASDAQ: BLKB) is the world’s leading cloud software company powering social good. Serving the entire social good community—nonprofits, foundations, corporations, education institutions, and individual change agents—Blackbaud connects and empowers organizations to increase their impact through software, services, expertise, and data intelligence. The Blackbaud portfolio is tailored to the unique needs of vertical markets, with solutions for fundraising and relationship management, digital marketing, advocacy, accounting, payments, analytics, school management, grant management, corporate social responsibility, and volunteerism. Serving the industry for more than three decades, Blackbaud is headquartered in Charleston, South Carolina and has operations in the United States, Australia, Canada, Ireland, and the United Kingdom. For more information, visit


Investor Contact: Media Contact:
Mark Furlong Nicole McGougan
Director of Investor Relations Blackbaud Public Relations
843-654-2097 843-654-3307




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: expectations that our revenue and operating cash flow will continue to grow and that our operating margins will continue to improve, and expectations that we will achieve our projected 2016 full year financial guidance. 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; risks related to our dividend policy and stock repurchase program, including the possibility that we might discontinue payment of dividends; 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 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. 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. This information includes non-GAAP revenue, non-GAAP recurring revenue, non-GAAP gross profit, non-GAAP gross margin, non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income and non-GAAP diluted earnings per share. Blackbaud has acquired businesses whose net tangible assets include deferred revenue. In accordance with GAAP reporting requirements, Blackbaud recorded write-downs of deferred revenue to fair value, which resulted in lower recognized revenue. Both on a quarterly and year-to-date basis, the revenue for the acquired businesses is deferred and typically recognized over a one-year period, so Blackbaud’s GAAP revenues for the one-year period after the acquisitions will not reflect the full amount of revenues that would have been reported if the acquired deferred revenue was not written down to fair value. The non-GAAP measures described above reverse the acquisition-related deferred revenue write-downs so that the full amount of revenue booked by the acquired companies is included, which Blackbaud believes provides a more accurate representation of a revenue run-rate in a given period. In addition to reversing write-downs of acquisition-related deferred revenue, non-GAAP financial measures discussed above exclude the impact of certain items that Blackbaud believes are not directly related to its performance in any particular period, but are for its long-term benefit over multiple periods.


In addition, Blackbaud discusses non-GAAP organic revenue growth, non-GAAP organic revenue growth on a constant currency basis and non-GAAP organic recurring revenue growth, which it believes provides useful information for evaluating the periodic growth of its business on a consistent basis. Each of these measures of non-GAAP organic revenue growth excludes incremental acquisition-related revenue attributable to companies acquired in the current fiscal year. For companies acquired in the immediately preceding fiscal year, each of these non-GAAP organic revenue growth measures reflects presentation of full year incremental non-GAAP revenue derived from such companies as if they were combined throughout the prior period, and it includes the non-GAAP revenue attributable to those companies, as if there were no acquisition-related write-downs of acquired deferred revenue to fair value as required by GAAP. In addition, each of these non-GAAP organic revenue growth 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.