BLACKBAUD, INC. GAAP Revenue Growth of 15.3% and Non-GAAP Organic Revenue Growth of 8.1%; Recurring Revenue Increases to 77.5% of Total Revenue
CHARLESTON, S.C., Nov. 1, 2016 /PRNewswire/ -- Blackbaud (NASDAQ: BLKB), the world's leading cloud software company powering social good, today announced financial results for its third quarter ended September 30, 2016.
"We posted another very solid quarter, with 77.5% of our total revenue now recurring, and non-GAAP organic revenue growth of 8.1%," said Mike Gianoni, Blackbaud president and CEO. "Our ability to accelerate customer value through innovative new technology is driving our strong financial performance, and will enable us to fuel future growth. We just concluded our annual conference and it's clear that Blackbaud is setting a new technology standard for the social good community."
Third Quarter 2016 Results Compared to Third Quarter 2015 Results:
-- Total GAAP revenue was $183.1 million, up 15.3%, with $141.9 million in
GAAP recurring revenue, representing 77.5% of total revenue.
-- Total non-GAAP revenue was $183.1 million, up 14.5%, with $141.9 million
in non-GAAP recurring revenue, representing 77.5% of total non-GAAP
revenue.
-- Non-GAAP organic revenue increased 8.1% and non-GAAP organic recurring
revenue increased 9.6%.
-- GAAP income from operations decreased 3.1% to $13.5 million, with GAAP
operating margin decreasing 140 basis points to 7.4%.
-- Non-GAAP income from operations increased 11.3% to $34.0 million, with
non-GAAP operating margin decreasing 50 basis points to 18.6%.
-- GAAP net income increased 12.9% to $8.9 million, with GAAP diluted
earnings per share up $0.02 to $0.19.
-- Non-GAAP net income increased 20.8% to $21.3 million, with non-GAAP
diluted earnings per share up $0.07 to $0.45.
-- Cash flow from operations was $51.4 million, up from $38.8 million.
"We are maintaining our non-GAAP financial guidance, while increasing cash flow from operations to account for the early adoption of ASU 2016-09," said Tony Boor, Blackbaud's executive vice president and CFO. "Our updated guidance indicates organic revenue growth acceleration, improves profitability, and increases cash flow for the full year when compared to 2015."
Company Highlights:
-- Shared the latest insights, trends and innovation to approximately 3,000
change-makers at bbcon 2016
-- Appointed Jerry Needle as president of everydayhero®, Tim Hill as
president of Higher Education Solutions group, and Russ Cobb as
president of Healthcare Solutions group
-- One of the first companies certified under the EU-U.S. Privacy Shield
-- Adoption of Blackbaud's intuitive cloud accounting solution, Financial
Edge NXT(TM), continues to surge
Visit www.blackbaud.com/press-room for more information about Blackbaud's recent highlights.
Dividend
Blackbaud announced today that its Board of Directors has declared a fourth quarter 2016 dividend of $0.12 per share payable on December 15, 2016 to stockholders of record on November 23, 2016.
Adoption of New Share-based Compensation Expense Accounting Standard
During the three months ended September 30, 2016, Blackbaud early adopted ASU 2016-09, Compensation - Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting which addresses, among other items, the accounting for income taxes and forfeitures, and cash flow presentation of share-based compensation. Under ASU 2016-09, excess tax benefits generated upon the settlement or exercise of stock awards are no longer recognized as additional paid-in capital but are instead recognized as a reduction to income tax expense. This change in accounting for income taxes is effective on a prospective basis as of the beginning of the 2016 fiscal year. Cash flows related to excess tax benefits are required to be presented as an operating activity rather than a financing activity. In addition, all cash tax payments made on an employee's behalf for shares withheld upon vesting or settlement are required to be presented as a financing activity. Blackbaud adopted all amendments related to cash flow presentation on a retrospective basis.
The early adoption of ASU 2016-09 increased GAAP net income by $1.2 million for both the three months ended March 31, 2016 and June 30, 2016, respectively, and increased net cash provided by operating activities and net cash used in financing activities by $6.7 million and $4.1 million for the three months ended March 31, 2016 and June 30, 2016, respectively. The impacts of adoption are reflected in Blackbaud's guidance and its GAAP results for the nine months ended September 30, 2016. In addition, retrospective application of the amendments related to cash flow presentation resulted in a $4.2 million increase in both net cash provided by operating activities and net cash used in financing activities for the nine months ended September 30, 2015. Blackbaud will provide more detailed information regarding the impact of the early adoption of ASU 2016-09 in its quarterly report on Form 10-Q for the quarter ended September 30, 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 $147 million to $157 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 Third Quarter Conference Call
When: November 2, 2016
Time: 8:00 a.m. (Eastern Time)
Live Call: 1-800-324-5531 (domestic) or 1-719-325-2141 (international); passcode 561800.
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 www.blackbaud.com.
Investor Contact: Media Contact:
Mark Furlong Nicole McGougan
Director of Investor Relations Blackbaud Public Relations
843-654-2097 843-654-3307
Mark.furlong@blackbaud.com Nicole.mcgougan@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: 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 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. 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.
As previously disclosed, beginning in 2016, Blackbaud now applies a non-GAAP effective tax rate of 32.0% in its determination of non-GAAP net income, which represents the GAAP effective tax rate, excluding the discrete tax effect of stock-based compensation. The non-GAAP effective tax rate utilized will be reviewed annually to determine whether it remains appropriate in consideration of Blackbaud's financial results including its periodic effective tax rate calculated in accordance with GAAP, its operating environment and related tax legislation in effect and other factors deemed necessary. All 2015 measures of the tax impact related to non-GAAP adjustments, non-GAAP net income and non-GAAP diluted earnings per share included in this news release are calculated under Blackbaud's historical non-GAAP effective tax rate of 39.0%.
Blackbaud uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating Blackbaud's ongoing operational performance. Blackbaud believes that these non-GAAP financial measures reflect the Blackbaud's ongoing business in a manner that allows for meaningful period-to-period comparison and analysis of trends in its business. In addition, Blackbaud believes that the use of these non-GAAP financial measures provides additional information for investors to use in evaluating ongoing operating results 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 differences in the exact method of calculation between companies. 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 reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures.
Blackbaud, Inc.
Consolidated balance sheets
(Unaudited)
(dollars in thousands) September 30, December 31,
2016 2015
Assets
Current assets:
Cash and cash equivalents $16,462 $15,362
Restricted cash due to customers 138,106 255,038
Accounts receivable, net of allowance of $4,097 and
$4,943 at September 30, 2016 and December 31, 2015,
respectively 86,111 80,046
Prepaid expenses and other current assets 52,145 48,666
Total current assets 292,824 399,112
Property and equipment, net 52,466 52,651
Software development costs, net 32,539 19,551
Goodwill 438,450 436,449
Intangible assets, net 264,405 294,672
Other assets 18,102 20,901
------ ------
Total assets $1,098,786 $1,223,336
Liabilities and stockholders' equity
Current liabilities:
Trade accounts payable $19,601 $19,208
Accrued expenses and other current liabilities 44,441 57,461
Due to customers 138,106 255,038
Debt, current portion 4,375 4,375
Deferred revenue, current portion 248,152 230,216
------- -------
Total current liabilities 454,675 566,298
Debt, net of current portion 370,642 403,712
Deferred tax liability 26,688 27,996
Deferred revenue, net of current portion 6,594 7,119
Other liabilities 7,467 7,623
Total liabilities 866,066 1,012,748
------- ---------
Commitments and contingencies
Stockholders' equity:
Preferred stock; 20,000,000 shares authorized, none
outstanding
- -
Common stock, $0.001 par value; 180,000,000 shares
authorized, 57,657,959 and 56,873,817 shares issued
at September 30, 2016 and December 31, 2015,
respectively 58 57
Additional paid-in capital 302,837 276,340
Treasury stock, at cost; 10,084,745 and 9,903,071
shares at September 30, 2016 and December 31, 2015,
respectively (210,357) (199,861)
Accumulated other comprehensive loss (942) (825)
Retained earnings 141,124 134,877
Total stockholders' equity 232,720 210,588
------- -------
Total liabilities and stockholders' equity $1,098,786 $1,223,336
------------------------------------------ ---------- ----------
Blackbaud, Inc.
Consolidated statements of comprehensive income
(Unaudited)
(dollars in thousands, except per share Three months ended
amounts) September 30, Nine months ended
September 30,
2016 2015 2016 2015
Revenue
Subscriptions $105,440 $80,901 $306,330 $233,423
Maintenance 36,410 38,209 111,019 115,732
Services 36,610 35,905 104,443 100,878
License fees and other 4,603 3,796 10,718 12,030
----- ----- ------ ------
Total revenue 183,063 158,811 532,510 462,063
Cost of revenue
Cost of subscriptions 51,943 39,485 153,772 115,063
Cost of maintenance 5,531 6,708 16,547 21,179
Cost of services 24,102 26,235 73,136 79,121
Cost of license fees and other 1,741 1,745 3,363 4,052
----- ----- ----- -----
Total cost of revenue 83,317 74,173 246,818 219,415
------ ------ ------- -------
Gross profit 99,746 84,638 285,692 242,648
------ ------ ------- -------
Operating expenses
Sales, marketing and customer success 40,690 31,139 115,707 89,424
Research and development 22,510 20,561 67,973 62,003
General and administrative 22,319 18,446 62,089 53,244
Amortization 687 524 2,147 1,536
Total operating expenses 86,206 70,670 247,916 206,207
------ ------ ------- -------
Income from operations 13,540 13,968 37,776 36,441
------ ------ ------ ------
Interest expense (2,641) (1,816) (8,037) (5,375)
Other (expense) income, net (15) 192 (185) (1,369)
--- --- ---- ------
Income before provision for income taxes 10,884 12,344 29,554 29,697
Income tax provision 1,950 4,433 5,323 10,459
----- ----- ----- ------
Net income $8,934 $7,911 $24,231 $19,238
------ ------ ------- -------
Earnings per share
Basic $0.19 $0.17 $0.53 $0.42
Diluted $0.19 $0.17 $0.51 $0.41
Common shares and equivalents outstanding
Basic weighted average shares 46,159,956 45,616,832 46,078,306 45,576,029
Diluted weighted average shares 47,394,106 46,596,714 47,268,469 46,403,196
Dividends per share $0.12 $0.12 $0.36 $0.36
Other comprehensive income (loss)
Foreign currency translation adjustment 289 168 261 (354)
Unrealized gain (loss) on derivative
instruments, net of tax 409 (262) (378) (634)
--- ---- ---- ----
Total other comprehensive income (loss) 698 (94) (117) (988)
--- --- ---- ----
Comprehensive income $9,632 $7,817 $24,114 $18,250
-------------------- ------ ------ ------- -------
Blackbaud, Inc.
Consolidated statements of cash flows
(Unaudited)
Nine months ended
September 30,
-------------
(dollars in thousands) 2016 2015
Cash flows from operating activities
Net income $24,231 $19,238
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation and
amortization 53,109 41,340
Provision for doubtful
accounts and sales
returns 3,139 4,573
Stock-based
compensation expense 25,005 17,899
Deferred taxes (225) (2,274)
Loss on sale of
business - 1,976
Amortization of
deferred financing
costs and discount 718 660
Other non-cash
adjustments (634) (159)
Changes in operating assets and
liabilities, net of acquisition and
disposal of businesses:
Accounts receivable (9,288) (6,378)
Prepaid expenses and
other assets (934) (324)
Trade accounts payable 267 3,284
Accrued expenses and
other liabilities (12,837) (6,299)
Restricted cash due to
customers 119,291 76,091
Due to customers (119,291) (76,091)
Deferred revenue 17,593 15,973
Net cash provided by
operating activities 100,144 89,509
Cash flows from investing activities
Purchase of property
and equipment (15,459) (14,560)
Capitalized software
development costs (19,078) (10,868)
Purchase of net assets
of acquired companies,
net of cash (3,377) (520)
Net cash used in sale
of business - (521)
Net cash used in
investing activities (37,914) (26,469)
Cash flows from financing activities
Proceeds from issuance
of debt 179,000 83,600
Payments on debt (212,581) (122,581)
Debt issuance costs - (429)
Employee taxes paid for
withheld shares upon
equity award
settlement (10,497) (2,728)
Proceeds from exercise
of stock options 10 23
Dividend payments to
stockholders (17,108) (16,883)
Net cash used in
financing activities (61,176) (58,998)
Effect of exchange rate
on cash and cash
equivalents 46 (1,222)
Net increase in cash
and cash equivalents 1,100 2,820
Cash and cash
equivalents, beginning
of period 15,362 14,735
------ ------
Cash and cash
equivalents, end of
period $16,462 $17,555
-------------------- ------- -------
Blackbaud, Inc.
Reconciliation of GAAP to non-GAAP financial measures
(Unaudited)
(dollars in
thousands, except
per share amounts) Three months ended Nine months ended
September 30, September 30,
------------- -------------
2016 2015 2016 2015
GAAP Revenue $183,063 $158,811 $532,510 $462,063
Non-GAAP adjustments:
Add: Acquisition-
related deferred
revenue write-down - 1,126 3,639 7,132
Non-GAAP revenue $183,063 $159,937 $536,149 $469,195
-------- -------- -------- --------
GAAP gross profit $99,746 $84,638 $285,692 $242,648
GAAP gross margin 54.5% 53.3% 53.7% 52.5%
Non-GAAP adjustments:
Add: Acquisition-
related deferred
revenue write-down - 1,126 3,639 7,132
Add: Stock-based
compensation
expense 916 769 2,603 2,719
Add: Amortization of
intangibles from
business
combinations 9,862 7,545 29,670 22,750
Add: Employee
severance 18 527 160 1,467
Subtotal 10,796 9,967 36,072 34,068
Non-GAAP gross
profit $110,542 $94,605 $321,764 $276,716
-------- ------- -------- --------
Non-GAAP gross
margin 60.4% 59.2% 60.0% 59.0%
GAAP income from
operations $13,540 $13,968 $37,776 $36,441
GAAP operating
margin 7.4% 8.8% 7.1% 7.9%
Non-GAAP adjustments:
Add: Acquisition-
related deferred
revenue write-down - 1,126 3,639 7,132
Add: Stock-based
compensation
expense 8,818 6,486 25,005 17,899
Add: Amortization of
intangibles from
business
combinations 10,549 8,069 31,817 24,286
Add: Employee
severance 72 631 473 2,211
Add: Acquisition-
related integration
costs 917 53 1,419 725
Add: Acquisition-
related expenses 152 257 265 1,045
Subtotal 20,508 16,622 62,618 53,298
Non-GAAP income
from operations $34,048 $30,590 $100,394 $89,739
Non-GAAP operating
margin 18.6% 19.1% 18.7% 19.1%
GAAP net income $8,934 $7,911 $24,231 $19,238
Shares used in
computing GAAP
diluted earnings
per share 47,394,106 46,596,714 47,268,469 46,403,196
GAAP diluted
earnings per share $0.19 $0.17 $0.51 $0.41
Non-GAAP adjustments:
Add: Total Non-GAAP
adjustments
affecting income
from operations 20,508 16,622 62,618 53,298
Add: Loss on sale of
business - - - 1,976
Less: Tax impact
related to Non-
GAAP adjustments (8,096) (6,863) (24,172) (22,680)
------ ------
Non-GAAP net income $21,346 $17,670 $62,677 $51,832
------- ------- ------- -------
Shares used in
computing Non-GAAP
diluted earnings
per share 47,394,106 46,596,714 47,268,469 46,403,196
Non-GAAP diluted
earnings per share $0.45 $0.38 $1.33 $1.12
------------------- ----- ----- ----- -----
Blackbaud, Inc.
Reconciliation of GAAP to Non-GAAP financial measures (continued)
(Unaudited)
(dollars in thousands) Three months ended Nine months ended
September 30, September 30,
------------- -------------
2016 2015 2016 2015
Detail of certain Non-GAAP adjustments:
Stock-based compensation expense:
Included in cost of revenue:
Cost of subscriptions $318 $213 $904 $681
Cost of maintenance 137 107 391 353
Cost of services 461 449 1,308 1,685
Total included in cost of revenue 916 769 2,603 2,719
Included in operating expenses:
Sales, marketing and customer success 1,055 768 2,972 2,273
Research and development 1,674 1,145 4,874 3,309
General and administrative 5,173 3,804 14,556 9,598
----- -----
Total included in operating expenses 7,902 5,717 22,402 15,180
----- -----
Total stock-based compensation
expense $8,818 $6,486 $25,005 $17,899
------ ------ ------- -------
Amortization of intangibles from business
combinations:
Included in cost of revenue:
Cost of subscriptions $7,790 $5,761 $23,454 $17,300
Cost of maintenance 1,332 1,000 3,996 3,160
Cost of services 655 698 1,965 2,007
Cost of license fees and other 85 86 255 283
--- ---
Total included in cost of revenue 9,862 7,545 29,670 22,750
Included in operating expenses 687 524 2,147 1,536
--- --- ----- -----
Total amortization of intangibles from
business combinations $10,549 $8,069 $31,817 $24,286
-------------------------------------- ------- ------ ------- -------
Blackbaud, Inc.
Reconciliation of GAAP to Non-GAAP financial measures (continued)
(Unaudited)
Unaudited calculations of non-GAAP organic revenue growth, non-GAAP organic revenue growth on a constant currency basis and non-GAAP organic recurring revenue growth for the three and nine months
ended September 30, 2016, as well as unaudited reconciliations of those non-GAAP measures to their most directly comparable GAAP measures, are as follows:
(dollars in
thousands) Three months ended Nine months ended
September 30, September 30,
------------- -------------
2016 2015 2016 2015
GAAP revenue $183,063 $158,811 $532,510 $462,063
GAAP revenue
growth 15.3% 15.2%
Add: Non-GAAP
acquisition-
related revenue
(1) - 10,505 3,639 33,241
Less: Revenue
from divested
businesses (2) - - - (586)
Total Non-GAAP
adjustments - 10,505 3,639 32,655
Non-GAAP revenue
(3) $183,063 $169,316 $536,149 $494,718
-------- -------- -------- --------
Non-GAAP organic
revenue growth 8.1% 8.4%
Non-GAAP revenue
(3) $183,063 $169,316 $536,149 $494,718
Foreign currency
impact on Non-
GAAP revenue (4) 963 - 3,377 -
Non-GAAP revenue
on constant
currency basis
(4) $184,026 $169,316 $539,526 $494,718
-------- -------- -------- --------
Non-GAAP organic
revenue growth
on constant
currency basis 8.7% 9.1%
GAAP
subscriptions
revenue $105,440 $80,901 $306,330 $233,423
GAAP maintenance
revenue $36,410 $38,209 111,019 115,732
GAAP recurring
revenue $141,850 $119,110 $417,349 $349,155
GAAP recurring
revenue growth 19.1% 19.5%
Add: Non-GAAP
acquisition-
related revenue
(1) - 10,335 3,625 32,283
Less: Revenue
from divested
businesses (2) - - - (378)
Total Non-GAAP
adjustments - 10,335 3,625 31,905
Non-GAAP
recurring
revenue $141,850 $129,445 $420,974 $381,060
-------- -------- -------- --------
Non-GAAP organic
recurring
revenue growth 9.6% 10.5%
---------------- --- ----
(1) Non-GAAP
acquisition-
related
revenue
excludes
incremental
acquisition-
related
revenue
calculated
in
accordance
with GAAP
that is
attributable
to
companies
acquired in
the current
fiscal
year. For
companies
acquired in
the
immediately
preceding
fiscal
year, non-
GAAP
acquisition-
related
revenue
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
from the
acquisition-
related
deferred
revenue
write-down
attributable
to those
companies.
(2) For
businesses
divested in
the prior
fiscal
year, non-
GAAP
organic
revenue
growth
excludes
the prior
period
revenue
associated
with
divested
businesses.
The
exclusion
of the
prior
period
revenue is
to present
the results
of the
divested
business
within the
results of
the
combined
company for
the same
period of
time in
both the
prior and
current
periods.
(3) Non-GAAP
revenue for
the prior
year
periods
presented
herein will
not agree
to non-
GAAP
revenue
presented
in the
respective
prior
period
quarterly
financial
information
solely due
to the
manner in
which non-
GAAP
organic
revenue
growth is
calculated.
(4) To determine
non-GAAP
organic
revenue
growth on a
constant
currency
basis,
revenues
from
entities
reporting
in foreign
currencies
were
translated
to U.S.
Dollars
using the
comparable
prior
period's
quarterly
weighted
average
foreign
currency
exchange
rates. The
primary
foreign
currencies
creating
the impact
are the
Canadian
Dollar,
EURO,
British
Pound and
Australian
Dollar.
Additional details of Blackbaud's methodology for calculating non-GAAP organic revenue growth and non-GAAP organic revenue growth on a constant currency basis can be found on Blackbaud's investor relations page.
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SOURCE Blackbaud
