Blackbaud Newsroom

Blackbaud Announces 2022 First Quarter Results

First Quarter Total Revenue Increases 17.3% Year-Over-Year with Organic Recurring Revenue Growth of 6.6%; Blackbaud Reiterates Full Year 2022 Financial Guidance and Outlook 

Charleston, S.C. (May 3, 2022) Blackbaud (NASDAQ: BLKB), the world’s leading cloud software company powering social good, today announced financial results for its first quarter ended March 31, 2022.

“The first quarter was a stronger than expected start to the year,” said Mike Gianoni, president and CEO, Blackbaud. “Just two months ago we gave our 2022 financial guidance that called for total revenue growth of approximately 17% at the midpoint of our guidance range, a significant acceleration in organic revenue growth to approximately 5%, and nearly 30% on a Rule of 40 at constant currency, which is roughly a 250-basis-point improvement year-over-year. We are pacing well against our plan, moving quickly to integrate EVERFI, and remain confident in our full-year outlook with solid visibility into the remainder of 2022 and beyond. By balancing sustainable mid-to-high single-digit organic revenue growth and meaningful margin expansion over the next few years, we believe we can create significant value for our customers, employees and shareholders.”

First Quarter 2022 Results Compared to First Quarter 2021 Results:

  • GAAP total revenue was $257.1 million, up 17.3%, with $244.7 million in GAAP recurring revenue, up 18.3%.
  • Non-GAAP organic recurring revenue increased 6.6%.
  • GAAP loss from operations was $6.0 million, with GAAP operating margin of (2.3)%, a decrease of 530 basis points.
  • Non-GAAP income from operations was $43.4 million, with non-GAAP operating margin of 16.9%, a decrease of 460 basis points.
  • GAAP net loss was $10.4 million, with GAAP diluted loss per share of $0.20, down $0.20 per share.
  • Security Incident-related costs, net of insurance of $7.2 million.
  • Non-GAAP net income was $29.5 million, with non-GAAP diluted earnings per share of $0.57, down $0.11 per share.
  • Non-GAAP adjusted EBITDA was $57.2 million, unchanged from prior year, with non-GAAP adjusted EBITDA margin of 22.2%, a decrease of 120 basis points.
  • GAAP net cash provided by operating activities was $24.5 million, a decrease of $5.6 million. 
  • Non-GAAP adjusted free cash flow was $8.4 million, a decrease of $10.4 million, with non-GAAP adjusted free cash flow margin of 3.3%, a decrease of 530 basis points.

“We started the year ahead of plan for both revenue growth and profitability,” said Tony Boor, executive vice president and CFO, Blackbaud. “During the first quarter, we posted total revenue growth of 17.3% and organic recurring revenue growth was 6.6%, driven by elevated transactional volume and continued growth in contractual recurring revenue. As we discussed when we issued our guidance in February, our profitability to start the year reflects the addition of EVERFI and incremental spend in areas like innovation, security and go-to-market that was pushed from 2021 into 2022. Our overperformance versus plan in the first quarter gives us heightened confidence in our ability to achieve our full-year financial guidance, and we are executing well on our plan to achieve Rule of 40 as a company, which we ultimately expect to drive significant earnings and adjusted free cash flow growth over the next several years. Given our recent performance and our acquisition of EVERFI, we raised our Rule of 40 performance incentive targets for 2022 and 2023 to 29% and 33%, respectively, as we target our mid-term goal of roughly 35% on the Rule of 40 in the next few years.”

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

  • In a significant step toward its ESG goals, Blackbaud announced that it has achieved carbon neutrality across its operations and data centers for 2021, and that the company will commit to new transparent sustainability reporting this year, including TCFD and CDP. 
  • Blackbaud has appointed two new leaders—Chief Product Officer Sudip Datta and Chief Information Security Officer Chuck Miller.
  • The company recently shared how its customers have unleashed incredible generosity and raising millions for humanitarian relief to help the people of Ukraine.
  • At the end of April, the company hosted its semi-annual Product Update Briefings, sharing the latest in product innovation.
  • Blackbaud was named a Top Intern and Entry Level Employer by and received two Stevie Awards for Sales and Customer Service—one for Ethics in Sales and one for Front-Line Customer Service Team of the Year
  • Through a new integration, the company has added PayPal and Venmo payment capability to Blackbaud Merchant Services, giving U.S. social good organizations more ways to raise money and create exceptional donor experiences.
  • Blackbaud and donation technology provider Change are working together to give corporate customers an option to run charitable campaigns at point of sale, match customer donations and offer donation options in loyalty programs.
  • The Blackbaud Institute published a free resource to enable all social good organizations to align their missions with the UN Sustainable Development Goals (SDGs), which will help grantseekers and grantmakers to better connect and demonstrate progress toward achieving the SDGs.

Visit for more information about Blackbaud’s recent highlights.

Financial Outlook

Blackbaud today reiterated its 2022 full year financial guidance:

  • Non-GAAP revenue of $1.075 billion to $1.095 billion
  • Non-GAAP adjusted EBITDA margin of 24.0% to 24.5%
  • Non-GAAP earnings per share of $2.63 to $2.82
  • Non-GAAP adjusted free cash flow of $165.0 million to $175.0 million

Included in its 2022 full year financial guidance are the following assumptions:

  • Non-GAAP annualized effective tax rate is expected to be 20%
  • Interest expense for the year is expected to be approximately $30.0 million to $33.0 million
  • Fully diluted shares for the year are expected to be in the range of 52.0 million to 53.5 million
  • Capital expenditures for the year are expected to be in the range of $60.0 million to $70.0 million, including approximately $45.0 million to $55.0 million of capitalized software development costs 

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 development, capital expenditures for property and equipment, plus cash outflows, net of insurance, related to the previously disclosed Security Incident discovered in May 2020 (the “Security Incident”). For full year 2022, Blackbaud currently expects net cash outlays of $25 million to $35 million for ongoing legal fees related to the Security Incident. In line with the Company’s policy, all associated costs due to third-party service providers and consultants, including legal fees, are expensed as incurred. As of March 31, 2022, Blackbaud has not recorded a loss contingency related to the Security Incident as it is unable to reasonably estimate the possible amount or range of such loss. Please refer to the section below titled “Non-GAAP Financial Measures” for more information on Blackbaud’s use of non-GAAP financial measures. 

Conference Call Details

What:        Blackbaud’s 2022 First Quarter Conference Call

When:       May 4, 2022 

Time:        8:00 a.m. (Eastern Time)

Live Call:   1-877-407-3088 (US/Canada)

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, higher education institutions, K–12 schools, healthcare organizations, faith communities, arts and cultural organizations, foundations, companies and individual change agents—Blackbaud connects and empowers organizations to increase their impact through cloud software, services, expertise and data intelligence. The Blackbaud portfolio is tailored to the unique needs of vertical markets, with solutions for fundraising and CRM, marketing, advocacy, peer-to-peer fundraising, corporate social responsibility (CSR) and environmental, social and governance (ESG), school management, ticketing, grantmaking, financial management, payment processing and analytics. Serving the industry for more than four decades, Blackbaud is a remote-first company headquartered in Charleston, South Carolina, with operations in the United States, Australia, Canada, Costa Rica and the United Kingdom. For more information, visit, or follow us on Twitter, LinkedIn, Instagram, and Facebook.

Investor Contact:

Steve Hufford
Director, Investor Relations

Media Contact:

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; uncertainty regarding the COVID-19 disruption; 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 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. 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.

Non-GAAP free cash flow is defined as operating cash flow less capital expenditures, including costs required to be capitalized for software development, and capital expenditures for property and equipment. In addition, and in order to provide a meaningful basis for comparison, Blackbaud now 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 development, and capital expenditures for property and equipment, plus cash outflows, net of insurance, 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 adjusted free cash flow is 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 and non-GAAP organic recurring revenue growth, 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 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; depreciation; amortization of intangible assets from business combinations; amortization of software development costs; acquisition-related deferred revenue write-down; stock-based compensation; acquisition-related integration costs; acquisition-related expenses; employee severance; restructuring and other real estate activities; and costs, net of insurance, related to the Security Incident.