Blackbaud Announces 2025 Second Quarter Results
Blackbaud (NASDAQ: BLKB), the leading software provider for social impact, reported strong Q2 2025 financial results, achieving its highest-ever quarterly Rule of 40 score at 45.3%. Despite a 2.1% decline in GAAP revenue to $281.4 million due to EVERFI divestiture, non-GAAP organic revenue grew 6.8%. The company demonstrated significant profitability improvements with GAAP operating margin increasing 540 basis points to 20.1% and non-GAAP operating margin rising 350 basis points to 33.5%.
Following strong H1 2025 performance, Blackbaud raised its full-year guidance, projecting revenue of $1.120-1.130 billion and non-GAAP earnings per share of $4.30-$4.50. The company maintains a robust stock repurchase program with $545 million remaining authorization and continues advancing its Intelligence for Good® AI strategy.
Blackbaud (NASDAQ: BLKB), il principale fornitore di software per l'impatto sociale, ha riportato solidi risultati finanziari nel Q2 2025, raggiungendo il suo punteggio trimestrale Rule of 40 più alto di sempre, pari al 45,3%. Nonostante un calo del 2,1% dei ricavi GAAP a 281,4 milioni di dollari dovuto alla cessione di EVERFI, i ricavi organici non-GAAP sono cresciuti del 6,8%. L'azienda ha mostrato miglioramenti significativi nella redditività, con un margine operativo GAAP in aumento di 540 punti base al 20,1% e un margine operativo non-GAAP cresciuto di 350 punti base al 33,5%.
Dopo le ottime performance del primo semestre 2025, Blackbaud ha rivisto al rialzo le previsioni per l'intero anno, prevedendo ricavi tra 1,120 e 1,130 miliardi di dollari e utili per azione non-GAAP tra 4,30 e 4,50 dollari. L’azienda mantiene un robusto programma di riacquisto azionario con un’autorizzazione residua di 545 milioni di dollari e continua a sviluppare la sua strategia di intelligenza artificiale Intelligence for Good®.
Blackbaud (NASDAQ: BLKB), el principal proveedor de software para impacto social, reportó sólidos resultados financieros en el Q2 2025, alcanzando su puntuación trimestral más alta en la Regla del 40 con un 45,3%. A pesar de una disminución del 2,1% en los ingresos GAAP a 281,4 millones de dólares debido a la venta de EVERFI, los ingresos orgánicos no-GAAP crecieron un 6,8%. La compañía mostró mejoras significativas en rentabilidad, con un margen operativo GAAP que aumentó 540 puntos básicos hasta el 20,1% y un margen operativo no-GAAP que subió 350 puntos básicos hasta el 33,5%.
Tras un sólido desempeño en el primer semestre de 2025, Blackbaud elevó sus previsiones para todo el año, proyectando ingresos de 1.120 a 1.130 millones de dólares y ganancias por acción no-GAAP de 4,30 a 4,50 dólares. La empresa mantiene un robusto programa de recompra de acciones con una autorización restante de 545 millones de dólares y continúa avanzando en su estrategia de inteligencia artificial Intelligence for Good®.
Blackbaud (NASDAQ: BLKB)는 사회적 영향력을 위한 선도적인 소프트웨어 제공업체로서 2025년 2분기 강력한 재무 실적을 보고했으며, 사상 최고 분기 Rule of 40 점수인 45.3%를 달성했습니다. EVERFI 매각으로 인해 GAAP 매출은 2.1% 감소하여 2억 8,140만 달러를 기록했으나, 비-GAAP 유기적 매출은 6.8% 성장했습니다. 회사는 GAAP 영업이익률을 540 베이시스 포인트 증가시켜 20.1%를 기록했고, 비-GAAP 영업이익률도 350 베이시스 포인트 상승해 33.5%에 도달하는 등 수익성 개선을 크게 보여주었습니다.
2025년 상반기 강력한 실적에 힘입어 Blackbaud는 연간 가이던스를 상향 조정하며 매출을 11억 2,000만~11억 3,000만 달러로, 비-GAAP 주당순이익을 4.30~4.50달러로 전망했습니다. 회사는 5억 4,500만 달러의 잔여 승인 한도를 가진 강력한 자사주 매입 프로그램을 유지하며 Intelligence for Good® AI 전략도 계속 추진하고 있습니다.
Blackbaud (NASDAQ : BLKB), principal fournisseur de logiciels pour l'impact social, a publié de solides résultats financiers pour le 2e trimestre 2025, atteignant son score trimestriel Rule of 40 le plus élevé à 45,3%. Malgré une baisse de 2,1 % du chiffre d'affaires GAAP à 281,4 millions de dollars due à la cession d'EVERFI, le chiffre d'affaires organique non-GAAP a augmenté de 6,8%. L'entreprise a démontré des améliorations significatives de sa rentabilité, avec une marge opérationnelle GAAP en hausse de 540 points de base à 20,1% et une marge opérationnelle non-GAAP en hausse de 350 points de base à 33,5%.
Suite à une solide performance au premier semestre 2025, Blackbaud a relevé ses prévisions annuelles, projetant un chiffre d'affaires compris entre 1,120 et 1,130 milliard de dollars et un bénéfice par action non-GAAP de 4,30 à 4,50 dollars. L'entreprise maintient un programme de rachat d'actions robuste avec une autorisation restante de 545 millions de dollars et poursuit le développement de sa stratégie d'intelligence artificielle Intelligence for Good®.
Blackbaud (NASDAQ: BLKB), der führende Softwareanbieter für sozialen Impact, meldete starke Finanzergebnisse für das 2. Quartal 2025 und erreichte mit 45,3% seinen bisher höchsten Rule of 40-Wert. Trotz eines Rückgangs der GAAP-Umsätze um 2,1 % auf 281,4 Millionen US-Dollar aufgrund des EVERFI-Verkaufs wuchsen die organischen Non-GAAP-Umsätze um 6,8%. Das Unternehmen zeigte deutliche Verbesserungen bei der Profitabilität, mit einer Steigerung der GAAP-Betriebsmarge um 540 Basispunkte auf 20,1% und einer Erhöhung der Non-GAAP-Betriebsmarge um 350 Basispunkte auf 33,5%.
Nach starken Ergebnissen im ersten Halbjahr 2025 hat Blackbaud seine Jahresprognose angehoben und erwartet einen Umsatz von 1,120 bis 1,130 Milliarden US-Dollar sowie einen Non-GAAP-Gewinn je Aktie von 4,30 bis 4,50 US-Dollar. Das Unternehmen hält ein robustes Aktienrückkaufprogramm mit einer verbleibenden Genehmigung von 545 Millionen US-Dollar aufrecht und treibt seine Intelligence for Good® KI-Strategie weiterhin voran.
- Non-GAAP organic revenue increased 6.8% year-over-year
- GAAP operating margin improved significantly by 540 basis points to 20.1%
- Achieved highest quarterly Rule of 40 score in company history at 45.3%
- Non-GAAP free cash flow increased by $18.9 million to $51.5 million
- Raised full-year 2025 financial guidance across all key metrics
- $545 million remaining in stock repurchase program
- GAAP total revenue declined 2.1% due to EVERFI divestiture
- Interest expense expected to be $65-69 million for the year
Insights
Blackbaud delivered exceptional Q2 results with organic revenue growth of 6.8% and record-breaking Rule of 40 performance, prompting management to raise full-year guidance.
Blackbaud's Q2 results showcase a company executing at an extremely high level with impressive financial metrics across the board. The 6.8% organic revenue growth demonstrates strong demand for their social impact software, while the 33.5% non-GAAP operating margin (up 350 basis points year-over-year) reflects significant operational efficiency improvements.
The company's achievement of a 45.3% Rule of 40 score (combining revenue growth and profit margin) is particularly noteworthy as it represents their highest quarterly performance ever on this key SaaS metric. This exceptional result validates management's strategy and positions them well to reach their stated "Rule of 45" goal.
Profitability metrics show substantial improvement, with non-GAAP EPS of $1.21 (up $0.13) and adjusted EBITDA margin of 38.5% (up 280 basis points). Cash flow generation was equally impressive with free cash flow margin reaching 18.3% (up 690 basis points).
Management's decision to raise full-year guidance across all metrics signals strong confidence in continued momentum. The new guidance includes revenue of $1.12-1.13 billion, adjusted EBITDA margin of 35.4-36.2%, and non-GAAP EPS of $4.30-4.50.
The quality of Blackbaud's revenue remains excellent with 98% recurring revenue, providing high visibility into future performance. While total revenue declined 2.1% due to the EVERFI divestiture, this strategic move appears to be paying off through improved margins and focused growth.
With approximately $545 million remaining in their stock repurchase program, Blackbaud has significant capacity to return capital to shareholders, potentially providing additional support for the stock price.
Company Raises Full Year 2025 Financial Guidance
"I continue to be very pleased with Blackbaud's significant improvement in growth and profitability since 2020, and our very strong second quarter and first half of 2025 results are a further testament to the power of our people, our products and our position in the marketplace serving the social impact sector," said Mike Gianoni, president, CEO and vice chairman of the board of directors, Blackbaud. "In fact, in the second quarter, we significantly exceeded the Rule of 40, delivering our highest quarterly performance in this metric in the Company's history. This result demonstrates that Blackbaud is well positioned to continue improving our results on the Rule of 40 as we move to a Rule of 45."
Second Quarter 2025 Results Compared to Second Quarter 2024 Results:
- GAAP total revenue was
$281.4 million 2.1% (driven by divestiture of EVERFI) and non-GAAP organic revenue increased6.8% . - GAAP recurring revenue was
$275.6 million 2.0% (driven by divestiture of EVERFI) and represented98.0% of total revenue. Non-GAAP organic recurring revenue increased6.9% . - GAAP income from operations was
$56.7 million 20.1% , an increase of 540 basis points. - Non-GAAP income from operations was
$94.3 million 33.5% , an increase of 350 basis points. - GAAP net income was
$26.0 million $0.54 $0.12 - Non-GAAP net income was
$58.2 million $1.21 $0.13 - Non-GAAP adjusted EBITDA was
$108.5 million $5.9 million 38.5% , an increase of 280 basis points. - Rule of 40 score of
45.3% . - GAAP net cash provided by operating activities was
$66.9 million $13.1 million 23.8% , an increase of 510 basis points. - Non-GAAP free cash flow was
$51.5 million $18.9 million 18.3% , an increase of 690 basis points. - Non-GAAP adjusted free cash flow was
$53.1 million $16.7 million 18.9% , an increase of 620 basis points.
"We are raising our full-year 2025 financial guidance across all key metrics, driven by our strong performance in the first half of the year," said Chad Anderson, executive vice president and CFO, Blackbaud. "Our outperformance in both revenue and profitability reflects our disciplined operational execution, ongoing productivity improvements, and the strength of our financial model. We remain focused on delivering greater value to our customers and shareholders—both now and in the future."
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
- Blackbaud has welcomed Salesforce veteran Bill Fort as senior vice president of
North America sales. - At its annual developer's conference, Blackbaud equipped developers with cutting edge AI skills and announced the company's vision for Agentic AI to help customers unlock new levels of effectiveness and deeper connections across critical fundraising operations like donor cultivation, stewardship, and sustainer management.
- In addition, at its May Product Update Briefings, Blackbaud showcased its Intelligence for Good® AI strategy, highlighting how powerful, responsible AI is being integrated directly within products.
- Blackbaud and Constant Contact rolled out a strategic integration to enable social impact customers to reach and engage supporters more effectively using leading email, SMS, social media and other digital marketing functions, all through an embedded experience in Blackbaud Raiser's Edge NXT®.
- The Blackbaud Institute released a 2025 Status of Fundraising report, showing the growing recognition of technology, including AI, within social impact and its impact on fundraising revenue growth and success.
- Blackbaud released its 2024 Impact Report, sharing how the company has advanced its environmental, social and governance priorities in the past year, and Blackbaud was also named one of Newsweek's World's Greenest Companies 2025.
- Blackbaud announced keynote speakers and sessions for bbcon 2025, happening Oct. 6-8 in
Philadelphia .
Visit www.blackbaud.com/newsroom for more information about Blackbaud's recent highlights.
Financial Outlook
Blackbaud today raised its 2025 full year financial guidance (does not contemplate future impact of the One Big Beautiful Bill Act):
- GAAP revenue of
$1.12 0 billion$1.13 0 billion - Non-GAAP adjusted EBITDA margin of
35.4% to36.2% - Non-GAAP earnings per share of
$4.30 $4.50 - Non-GAAP adjusted free cash flow of
$190 million $200 million
Included in its 2025 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
$65 million $69 million - Fully diluted shares for the year are expected to be approximately 48.5 million to 49.5 million
- Capital expenditures for the year are expected to be approximately
$55 million $65 million $50 million $60 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 development, capital expenditures for property and equipment, plus cash outflows related to the previously disclosed Security Incident discovered in May 2020 (the "Security Incident"). Please refer to the section below titled "Non-GAAP Financial Measures" for more information on Blackbaud's use of non-GAAP financial measures.
Stock Repurchase Program
As of June 30, 2025, Blackbaud had approximately
Reclassifications
Our revenue from "recurring" and "one-time services and other" have been combined within "revenue" beginning in 2025 due to the immateriality of our one-time services and other revenue. In order to provide comparability between periods presented, our "recurring" and "one-time services and other" revenue lines have been combined within "revenue" in the previously reported consolidated statements of comprehensive income to conform to the presentation of the current period. Similarly, "cost of recurring" and "cost of one-time services and other" have been combined within "cost of revenue" in the previously reported consolidated statements of comprehensive income to conform to the presentation of the current period.
Conference Call Details
What: Blackbaud's 2025 Second Quarter Conference Call
When: July 30, 2025
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 | |||
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; 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.
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 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 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 development costs; stock-based compensation; employee severance; acquisition and disposition-related costs; Security Incident-related costs; and impairment and disposition charges.
Blackbaud, Inc. | ||
(dollars in thousands, except per share amounts) | June 30, | December 31, |
Assets | ||
Current assets: | ||
Cash and cash equivalents | $ 41,566 | $ 67,628 |
Restricted cash | 870,248 | 741,884 |
Accounts receivable, net of allowance of | 145,237 | 83,539 |
Customer funds receivable | 5,696 | 1,970 |
Prepaid expenses and other current assets | 91,222 | 81,287 |
Total current assets | 1,153,969 | 976,308 |
Property and equipment, net | 83,052 | 91,926 |
Operating lease right-of-use assets | 5,266 | 26,554 |
Software development costs, net | 153,604 | 148,319 |
Goodwill | 1,057,927 | 1,052,506 |
Intangible assets, net | 120,791 | 132,881 |
Other assets | 54,784 | 67,221 |
Total assets | $ 2,629,393 | $ 2,495,715 |
Liabilities and stockholders' equity | ||
Current liabilities: | ||
Trade accounts payable | $ 42,664 | $ 50,810 |
Accrued expenses and other current liabilities | 40,863 | 75,543 |
Due to customers | 874,757 | 742,340 |
Debt, current portion | 22,566 | 23,875 |
Deferred revenue, current portion | 399,207 | 359,529 |
Total current liabilities | 1,380,057 | 1,252,097 |
Debt, net of current portion | 1,136,112 | 1,051,110 |
Deferred tax liability | 9,773 | 9,518 |
Deferred revenue, net of current portion | 2,179 | 2,015 |
Operating lease liabilities, net of current portion | 5,526 | 34,186 |
Other liabilities | 7,796 | 4,796 |
Total liabilities | 2,541,443 | 2,353,722 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock; 20,000,000 shares authorized, none outstanding | — | — |
Common stock, | 72 | 71 |
Additional paid-in capital | 1,347,234 | 1,291,442 |
Treasury stock, at cost; 23,756,925 and 21,697,785 shares at June 30, 2025 and December 31, 2024, respectively | (1,199,608) | (1,060,348) |
Accumulated other comprehensive loss | (6,292) | (4,869) |
Accumulated deficit | (53,456) | (84,303) |
Total stockholders' equity | 87,950 | 141,993 |
Total liabilities and stockholders' equity | $ 2,629,393 | $ 2,495,715 |
Blackbaud, Inc. | |||||
(dollars in thousands, except per share amounts) | Three months ended | Six months ended | |||
2025 | 2024 | 2025 | 2024 | ||
Revenue | $ 281,382 | $ 287,286 | $ 552,043 | $ 566,536 | |
Cost of revenue | 113,633 | 124,700 | 228,448 | 250,906 | |
Gross profit | 167,749 | 162,586 | 323,595 | 315,630 | |
Operating expenses | |||||
Sales, marketing and customer success | 44,046 | 47,081 | 88,690 | 97,946 | |
Research and development | 33,595 | 39,068 | 67,154 | 81,870 | |
General and administrative | 32,856 | 33,443 | 89,535 | 81,197 | |
Amortization of intangible assets | 566 | 902 | 1,100 | 1,806 | |
Total operating expenses | 111,063 | 120,494 | 246,479 | 262,819 | |
Income from operations | 56,686 | 42,092 | 77,116 | 52,811 | |
Interest expense | (18,411) | (15,715) | (35,356) | (25,991) | |
Other income, net | 1,118 | 3,310 | 3,223 | 6,657 | |
Income before provision for income taxes | 39,393 | 29,687 | 44,983 | 33,477 | |
Income tax provision | 13,413 | 7,883 | 14,136 | 6,427 | |
Net income | $ 25,980 | $ 21,804 | $ 30,847 | $ 27,050 | |
Earnings per share | |||||
Basic | $ 0.54 | $ 0.43 | $ 0.64 | $ 0.53 | |
Diluted | $ 0.54 | $ 0.42 | $ 0.63 | $ 0.52 | |
Common shares and equivalents outstanding | |||||
Basic weighted average shares | 47,784,062 | 50,747,337 | 48,104,780 | 51,399,853 | |
Diluted weighted average shares | 48,248,057 | 51,677,418 | 48,786,793 | 52,371,927 | |
Other comprehensive income (loss) | |||||
Foreign currency translation adjustment | $ 7,324 | $ 339 | $ 10,583 | $ (846) | |
Unrealized (loss) gain on derivative instruments, net of tax | (5,314) | (1,386) | (12,006) | 2,709 | |
Total other comprehensive income (loss) | 2,010 | (1,047) | (1,423) | 1,863 | |
Comprehensive income | $ 27,990 | $ 20,757 | $ 29,424 | $ 28,913 | |
Blackbaud, Inc. | ||
Six months ended | ||
(dollars in thousands) | 2025 | 2024 |
Cash flows from operating activities | ||
Net income | $ 30,847 | $ 27,050 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 43,346 | 60,553 |
Provision for credit losses and sales returns | 3,780 | 519 |
Stock-based compensation expense | 49,422 | 57,856 |
Deferred taxes | (653) | (18,810) |
Amortization of deferred financing costs and discount | 1,346 | 984 |
Loss on disposition of businesses | — | 1,561 |
Other non-cash adjustments | (5,407) | 2,462 |
Changes in operating assets and liabilities, net of acquisition and disposal of businesses: | ||
Accounts receivable | (64,984) | (53,062) |
Prepaid expenses and other assets | (8,910) | (2,473) |
Trade accounts payable | (8,408) | 19,146 |
Accrued expenses and other liabilities | (10,208) | (13,579) |
Deferred revenue | 38,158 | 36,228 |
Net cash provided by operating activities | 68,329 | 118,435 |
Cash flows from investing activities | ||
Purchase of property and equipment | (1,311) | (6,118) |
Capitalized software development costs | (27,787) | (28,392) |
Cash used in disposition of business | (12,235) | (1,179) |
Other investing activities | — | (5,029) |
Net cash used in investing activities | (41,333) | (40,718) |
Cash flows from financing activities | ||
Proceeds from issuance of debt | 272,300 | 1,211,600 |
Payments on debt | (187,666) | (966,680) |
Debt issuance costs | — | (6,458) |
Employee taxes paid for withheld shares upon equity award settlement | (38,655) | (54,483) |
Change in due to customers | 128,582 | 106,851 |
Change in customer funds receivable | (3,262) | (2,577) |
Purchase of treasury stock, including excise tax payments | (103,205) | (262,596) |
Net cash provided by financing activities | 68,094 | 25,657 |
Effect of exchange rate on cash, cash equivalents and restricted cash | 7,212 | (523) |
Net increase in cash, cash equivalents and restricted cash | 102,302 | 102,851 |
Cash, cash equivalents and restricted cash, beginning of period | 809,512 | 728,257 |
Cash, cash equivalents and restricted cash, end of period | $ 911,814 | $ 831,108 |
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) | June 30, | December 31, |
Cash and cash equivalents | $ 41,566 | $ 67,628 |
Restricted cash | 870,248 | 741,884 |
Total cash, cash equivalents and restricted cash in the statement of cash flows | $ 911,814 | $ 809,512 |
Blackbaud, Inc. | |||||
(dollars in thousands, except per share amounts) | Three months ended | Six months ended | |||
2025 | 2024 | 2025 | 2024 | ||
GAAP Revenue | $ 281,382 | $ 287,286 | $ 552,043 | $ 566,536 | |
GAAP gross profit | $ 167,749 | $ 162,586 | $ 323,595 | $ 315,630 | |
GAAP gross margin | 59.6 % | 56.6 % | 58.6 % | 55.7 % | |
Non-GAAP adjustments: | |||||
Add: Stock-based compensation expense | 3,250 | 3,377 | 5,948 | 7,151 | |
Add: Amortization of intangibles from business combinations | 7,020 | 14,639 | 14,072 | 29,302 | |
Add: Employee severance | 302 | — | 302 | — | |
Subtotal | 10,572 | 18,016 | 20,322 | 36,453 | |
Non-GAAP gross profit | $ 178,321 | $ 180,602 | $ 343,917 | $ 352,083 | |
Non-GAAP gross margin | 63.4 % | 62.9 % | 62.3 % | 62.1 % | |
GAAP income from operations | $ 56,686 | $ 42,092 | $ 77,116 | $ 52,811 | |
GAAP operating margin | 20.1 % | 14.7 % | 14.0 % | 9.3 % | |
Non-GAAP adjustments: | |||||
Add: Stock-based compensation expense | 27,252 | 24,286 | 49,422 | 57,856 | |
Add: Amortization of intangibles from business combinations | 7,586 | 15,541 | 15,172 | 31,108 | |
Add: Employee severance | 2,147 | — | 2,147 | — | |
Add: Acquisition and disposition-related costs(1) | 264 | 2,398 | 25,396 | 4,653 | |
Add: Security Incident-related costs(2) | 395 | 1,822 | 2,575 | 12,145 | |
Subtotal | 37,644 | 44,047 | 94,712 | 105,762 | |
Non-GAAP income from operations | $ 94,330 | $ 86,139 | $ 171,828 | $ 158,573 | |
Non-GAAP operating margin | 33.5 % | 30.0 % | 31.1 % | 28.0 % | |
GAAP income before provision for income taxes | $ 39,393 | $ 29,687 | $ 44,983 | $ 33,477 | |
GAAP net income | $ 25,980 | $ 21,804 | $ 30,847 | $ 27,050 | |
Shares used in computing GAAP diluted earnings per share | 48,248,057 | 51,677,418 | 48,786,793 | 52,371,927 | |
GAAP diluted earnings per share | $ 0.54 | $ 0.42 | $ 0.63 | $ 0.52 | |
Non-GAAP adjustments: | |||||
Add: GAAP income tax provision | 13,413 | 7,883 | 14,136 | 6,427 | |
Add: Total non-GAAP adjustments affecting income from operations | 37,644 | 44,047 | 94,712 | 105,762 | |
Non-GAAP income before provision for income taxes | 77,037 | 73,734 | 139,695 | 139,239 | |
Assumed non-GAAP income tax provision(3) | 18,874 | 18,065 | 34,225 | 34,114 | |
Non-GAAP net income | $ 58,163 | $ 55,669 | $ 105,470 | $ 105,125 | |
Shares used in computing non-GAAP diluted earnings per share | 48,248,057 | 51,677,418 | 48,786,793 | 52,371,927 | |
Non-GAAP diluted earnings per share | $ 1.21 | $ 1.08 | $ 2.16 | $ 2.01 | |
(1) | Includes charges of |
(2) | Includes Security Incident-related costs incurred during the three months ended June 30, 2025 which were insignificant for on-going legal fees, during the six months ended June 30, 2025 of |
(3) | We apply a non-GAAP effective tax rate of |
Blackbaud, Inc. | |||||
(dollars in thousands) | Three months ended | Six months ended | |||
2025 | 2024 | 2025 | 2024 | ||
GAAP revenue | $ 281,382 | $ 287,286 | $ 552,043 | $ 566,536 | |
GAAP revenue growth | (2.1) % | (2.6) % | |||
Less: Non-GAAP revenue from divested businesses(1) | — | (23,756) | — | (47,165) | |
Non-GAAP organic revenue(2) | $ 281,382 | $ 263,530 | $ 552,043 | $ 519,371 | |
Non-GAAP organic revenue growth | 6.8 % | 6.3 % | |||
Non-GAAP organic revenue(2) | $ 281,382 | $ 263,530 | $ 552,043 | $ 519,371 | |
Foreign currency impact on non-GAAP organic revenue(3) | (1,910) | — | (1,612) | — | |
Non-GAAP organic revenue on constant currency basis(3) | $ 279,472 | $ 263,530 | $ 550,431 | $ 519,371 | |
Non-GAAP organic revenue growth on constant currency basis | 6.0 % | 6.0 % | |||
GAAP recurring revenue | $ 275,631 | $ 281,376 | $ 539,681 | $ 552,894 | |
GAAP recurring revenue growth | (2.0) % | (2.4) % | |||
Less: Non-GAAP recurring revenue from divested businesses(1) | — | (23,418) | — | (45,472) | |
Non-GAAP organic recurring revenue(2) | $ 275,631 | $ 257,958 | $ 539,681 | $ 507,422 | |
Non-GAAP organic recurring revenue growth | 6.9 % | 6.4 % | |||
Non-GAAP organic recurring revenue(1) | $ 275,631 | $ 257,958 | $ 539,681 | $ 507,422 | |
Foreign currency impact on non-GAAP organic recurring revenue(3) | (1,894) | — | (1,617) | — | |
Non-GAAP organic recurring revenue on constant currency basis(3) | $ 273,737 | $ 257,958 | $ 538,064 | $ 507,422 | |
Non-GAAP organic recurring revenue growth on constant currency basis | 6.1 % | 6.0 % | |||
(1) | Non-GAAP revenue from divested businesses excludes revenue associated with divested businesses in the prior period. 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. |
(2) | 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. |
(3) | 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. | |||||
(dollars in thousands) | Three months ended | Six months ended | |||
2025 | 2024 | 2025 | 2024 | ||
GAAP net income | $ 25,980 | $ 21,804 | $ 30,847 | $ 27,050 | |
Non-GAAP adjustments: | |||||
Add: Interest, net | 16,443 | 12,900 | 31,733 | 21,128 | |
Add: GAAP income tax provision | 13,413 | 7,883 | 14,136 | 6,427 | |
Add: Depreciation | 2,667 | 3,253 | 5,642 | 6,328 | |
Add: Amortization of intangibles from business combinations | 7,586 | 15,541 | 15,172 | 31,108 | |
Add: Amortization of software development costs(1) | 12,304 | 12,639 | 24,176 | 24,729 | |
Subtotal | 52,413 | 52,216 | 90,859 | 89,720 | |
Non-GAAP EBITDA | $ 78,393 | $ 74,020 | $ 121,706 | $ 116,770 | |
Non-GAAP EBITDA margin(2) | 27.9 % | 22.0 % | |||
Non-GAAP adjustments: | |||||
Add: Stock-based compensation expense | $ 27,252 | $ 24,286 | $ 49,422 | $ 57,856 | |
Add: Employee severance | 2,147 | — | 2,147 | — | |
Add: Acquisition and disposition-related costs(3) | 264 | 2,398 | 25,396 | 4,653 | |
Add: Security Incident-related costs(3) | 395 | 1,822 | 2,575 | 12,145 | |
Subtotal | 30,058 | 28,506 | 79,540 | 74,654 | |
Non-GAAP adjusted EBITDA | $ 108,451 | $ 102,526 | $ 201,246 | $ 191,424 | |
Non-GAAP adjusted EBITDA margin(4) | 38.5 % | 36.5 % | |||
Rule of 40(5) | 45.3 % | 42.8 % | |||
Non-GAAP adjusted EBITDA | $ 108,451 | $ 102,526 | $ 201,246 | $ 191,424 | |
Foreign currency impact on Non-GAAP adjusted EBITDA(6) | (1,096) | (88) | (891) | (503) | |
Non-GAAP adjusted EBITDA on constant currency basis(6) | $ 107,355 | $ 102,438 | $ 200,355 | $ 190,921 | |
Non-GAAP adjusted EBITDA margin on constant currency basis | 38.4 % | 36.4 % | |||
Rule of 40 on constant currency basis(7) | 44.4 % | 42.4 % | |||
(1) | Includes amortization expense related to software 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) | Six months ended | |
2025 | 2024 | |
GAAP net cash provided by operating activities | $ 68,329 | $ 118,435 |
GAAP operating cash flow margin | 12.4 % | 20.9 % |
Non-GAAP adjustments: | ||
Less: purchase of property and equipment | (1,311) | (6,118) |
Less: capitalized software development costs | (27,787) | (28,392) |
Non-GAAP free cash flow | $ 39,231 | $ 83,925 |
Non-GAAP free cash flow margin | 7.1 % | 14.8 % |
Non-GAAP adjustments: | ||
Add: Security Incident-related cash flows | 2,473 | 5,822 |
Non-GAAP adjusted free cash flow | $ 41,704 | $ 89,747 |
Non-GAAP adjusted free cash flow margin | 7.6 % | 15.8 % |
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SOURCE Blackbaud
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