Achieves 9.8% Revenue Growth and 12.5% Non-GAAP Income From Operations Growth; Updates Full Year Financial Guidance

CHARLESTON, S.C., Oct. 28, 2015 (GLOBE NEWSWIRE) -- Blackbaud, Inc. (NASDAQ:BLKB), the leading provider of software and services for the worldwide philanthropic community, today announced financial results for its third quarter ended September 30, 2015.

Third Quarter 2015 Highlights

  • Total revenue growth of 9.8% to $158.8 million
  • Non-GAAP organic revenue growth of 3.5%; 5.5% in constant currency
  • Recurring revenue represented 75.0% of total revenue
  • Total subscriptions revenue growth of 20.7% to $80.9 million
  • Non-GAAP income from operations increased 12.5% to $30.6 million
  • Cash flow from operations of $37.7 million

President and CEO, Mike Gianoni, commented, "We continue to make solid progress as a company and are pleased with our revenue and profitability results for the quarter and year to date. We have just completed our annual user conference with record attendance from the philanthropic community. Our leading solutions, our transition to the cloud and our strategy of open and integrated products are resonating with the market."

Third Quarter 2015 GAAP Financial Results

Blackbaud generated total revenue of $158.8 million in the third quarter of 2015, an increase of 9.8% compared to $144.6 million in the third quarter of 2014. Income from operations and net income were $14.0 million and $7.9 million, respectively, compared to $13.5 million and $10.4 million, respectively, in the third quarter of 2014. Diluted earnings per share was $0.17 in the third quarter of 2015, compared to $0.23 in the same period last year.

Total revenue, income from operations and net income were positively impacted in the third quarter from growth in subscriptions revenue and contributions from Blackbaud's acquisition of MicroEdge in October 2014. The positive impacts to income from operations and net income were offset by increased amortization of intangible assets arising from acquisitions completed in 2014 as well as increased stock-based compensation.

Third Quarter 2015 Non-GAAP Financial Results

Blackbaud achieved non-GAAP revenue of $159.9 million and non-GAAP organic revenue growth of 3.5% in the third quarter of 2015. On a constant currency basis, non-GAAP organic revenue growth was 5.5% in the third quarter of 2015. Non-GAAP organic revenue growth includes $10.5 million of incremental non-GAAP revenue in the third quarter of 2014 associated with acquired companies, as if the companies were combined throughout the prior period. Non-GAAP organic revenue growth excludes $0.6 million of revenue in the third quarter of 2014 associated with a business divested of in the current fiscal year, in order 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.

Non-GAAP income from operations increased 12.5% to $30.6 million in the third quarter of 2015, compared to $27.2 million in the same period last year. Non-GAAP net income increased 11.5% to $17.7 million in the third quarter of 2015 compared to $15.8 million in the same period last year. Non-GAAP diluted earnings per share was $0.38 in the third quarter of 2015, up from $0.35 per diluted share in the same period last year. An explanation of these measures 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.

Non-GAAP income from operations and non-GAAP net income were positively impacted in the third quarter by growth in subscriptions revenue and contributions from Blackbaud's acquisition of MicroEdge in October 2014.

Executive Vice President and CFO, Tony Boor, commented, "We continue to see the benefits of our investments in the business and our strong operational improvement. Our subscription revenue continues to grow at double-digit rates while non-GAAP operating margin has improved year-over-year. In the latest quarter, our non-GAAP operating margin of 19.1% is a 50 basis point improvement over the same quarter last year. The actions we have taken to improve operational efficiency are yielding positive results which allows us to continue to invest in our business."

Full-Year Financial Guidance Update
 
Blackbaud announced today that it is updating its 2015 full-year financial guidance to include the impact of its acquisition of Smart, LLC ("Smart Tuition"), which closed on October 2, 2015:

  • Non-GAAP revenue of $645.0 million to $653.0 million
  • Non-GAAP income from operations of $120.0 million to $124.0 million
  • Non-GAAP operating margin of 18.6% to 19.0%
  • Non-GAAP diluted earnings per share of $1.48 to $1.52
  • Cash flow from operations of $115.0 million to $119.0 million

Balance Sheet and Cash Flow

The company ended the third quarter with $17.6 million of cash and cash equivalents, compared to $13.2 million on June 30, 2015. The company generated $37.7 million in cash flow from operations during the third quarter, reduced net debt by $20.2 million, returned $5.6 million to stockholders by way of dividend and had cash outlays of $11.4 million for capital expenditures and capitalized software.

To fund the company's acquisition of Smart Tuition on October 2, 2015 for a net purchase price of $187.8 million in cash, the company drew down $186.0 million of cash from its $350.0 million available revolving credit commitments under its senior secured credit facility and paid the remainder with cash on hand. Following the draw down, the total amount outstanding on the letters of credit, revolving credit loans and term loan was $429.0 million. Additional details related to the acquisition of Smart Tuition can be found in the company's filings with the SEC at www.sec.gov:
http://www.sec.gov/ and on the company's website at www.blackbaud.com/investorrelations:
http://www.blackbaud.com/investorrelations.

Dividend

Blackbaud announced today that its Board of Directors has approved a fourth quarter 2015 dividend of $0.12 per share payable on December 15, 2015 to stockholders of record on November 25, 2015.

Conference Call Details

Blackbaud will host a conference call tomorrow, October 29, 2015, at 8:00 a.m. (Eastern Time) to discuss the company's financial results, operations and related matters. To access this call, dial 1-888-461-2018 (domestic) or 1-719-457-2650 (international) and enter passcode 740468. To access a replay of this conference call, which will be available through November 11, 2015, dial 1-888-203-1112 (domestic) or 1-719-457-0820 (international), and enter passcode 5826172. A live webcast of this conference call will be available on the "Investor Relations" page of the company's website at www.blackbaud.com/investorrelations:
http://www.blackbaud.com/investorrelations and a replay will be archived on the website as well.

Investors and others should note that the company announces material financial information to our investors using its website, www.blackbaud.com:
http://www.blackbaud.com/, SEC filings, press releases, public conference calls and webcasts. The company uses these channels as well as social media to communicate with its clients and the public about the company, its services and other issues. It is possible that the information the company posts on social media could be deemed material information. Therefore, Blackbaud encourages investors, the media, and others interested in the company to review the information posted on its social media channels listed on the company's Investor Relations page at, www.blackbaud.com/investorrelations:
http://www.blackbaud.com/investorrelations.

About Blackbaud

Serving the worldwide philanthropic community for more than 30 years, Blackbaud (NASDAQ:BLKB) combines innovative software and services, and expertise to help organizations achieve their missions. Blackbaud works in over 60 countries to power the passions of more than 30,000 clients, including nonprofits, K-12 private and higher education institutions, healthcare organizations, foundations and other charitable giving entities, and corporations. The company offers a full spectrum of cloud and on-premise solutions, as well as a resource network that empowers and connects organizations of all sizes. Blackbaud's portfolio of software and services support nonprofit fundraising and relationship management:
https://www.blackbaud.com/fundraising-relationship-management/,eMarketing:
https://www.blackbaud.com/online-marketing/nonprofit-email-marketing, advocacy:
https://www.blackbaud.com/online-marketing/advocacy, accounting:
https://www.blackbaud.com/fund-accounting/products, payments:
https://www.blackbaud.com/BBMS/ and analytics:
https://www.blackbaud.com/analytics/, as well as grant management:
http://www.microedge.com/, corporate social responsibility:
http://www.microedge.com/, and education:
https://www.blackbaud.com/. Using Blackbaud technology, these organizations raise, invest, manage and award more than $100 billion each year. Recognized as a top company:
https://www.blackbaud.com/press-room/, 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:
http://www.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: our projected 2015 full year financial results, expectations that our strategic product transitions will result in continued growth in revenue and profitability; continued execution of and benefit from our five growth and operational improvement strategies; and expectations that past investments will continue to yield subscriptions revenue growth, operational efficiencies and improved operating margins. 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 clients; 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:
http://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 gross profit, non-GAAP gross margin, non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income, non-GAAP diluted earnings per share, EBITDA, EBITDA margin, Adjusted EBITDA and Adjusted EBITDA margin. The company has acquired businesses whose net tangible assets include deferred revenue. In accordance with GAAP reporting requirements, the company 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 the company 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 our long-term benefit over multiple periods.

In addition, Blackbaud discusses non-GAAP organic revenue growth and non-GAAP organic revenue growth on a constant currency basis, which it believes provides useful information for evaluating the periodic growth of its business on a consistent basis. 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, non-GAAP organic revenue growth 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 current period 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, non-GAAP organic revenue growth excludes prior period revenue associated with divested businesses in the current fiscal year. 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 our current business' organic revenue growth and revenue run-rate. To determine non-GAAP organic revenue growth on a constant currency basis for the third quarter of 2015, revenues from entities reporting in foreign currencies were translated into U.S. dollars using the comparable prior year period's quarterly weighted average foreign currency exchange rates which resulted in $3.1 million of incremental non-GAAP revenue for the third quarter of 2015. 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 the "Investor Relations" page of the company's website atwww.blackbaud.com/investorrelations:
http://www.blackbaud.com/investorrelations.

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 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. These non-GAAP financial measures are not completely comparable to similarly titled measures of other companies due to differences in the exact method of calculation between companies. In addition, 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)
 
       
(in thousands, except share amounts) September 30,
 2015		   December 31,
 2014
Assets      
Current assets:      
Cash and cash equivalents $ 17,555     $ 14,735  
Donor restricted cash 63,460     140,709  
Accounts receivable, net of allowance of $4,448 and $4,539 at September 30, 2015 and December 31, 2014, respectively 78,152     77,523  
Prepaid expenses and other current assets 39,557     40,392  
Deferred tax asset, current portion 10,608     14,423  
Total current assets 209,332     287,782  
Property and equipment, net 49,024     50,402  
Goodwill 345,770     349,008  
Intangible assets, net 204,738     229,307  
Other assets 35,300     26,684  
Total assets $ 844,164     $ 943,183  
Liabilities and stockholders' equity      
Current liabilities:      
Trade accounts payable $ 13,137     $ 11,436  
Accrued expenses and other current liabilities 45,576     52,201  
Donations payable 63,460     140,709  
Debt, current portion 4,375     4,375  
Deferred revenue, current portion 227,161     212,283  
Total current liabilities 353,709     421,004  
Debt, net of current portion 237,293     276,196  
Deferred tax liability 34,800     43,639  
Deferred revenue, net of current portion 7,369     8,991  
Other liabilities 7,025     7,437  
Total liabilities 640,196     757,267  
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, 56,693,785 and 56,048,135 shares issued at September 30, 2015 and December 31, 2014, respectively 57     56  
Additional paid-in capital 265,024     245,674  
Treasury stock, at cost; 9,796,306 and 9,740,054 shares at September 30, 2015 and December 31, 2014, respectively (193,168 )   (190,440 )
Accumulated other comprehensive loss (2,020 )   (1,032 )
Retained earnings 134,075     131,658  
Total stockholders' equity 203,968     185,916  
Total liabilities and stockholders' equity $ 844,164     $ 943,183  
               

 
Blackbaud, Inc.
Consolidated statements of comprehensive income
(Unaudited)
 
       
(in thousands, except share and per share amounts) Three months ended
 September 30,		   Nine months ended
 September 30,
2015 2014   2015 2014
Revenue          
Subscriptions $ 80,901   $ 67,043     $ 233,423   $ 190,296  
Maintenance 38,209   36,821     115,732   109,000  
Services 35,905   35,843     100,878   95,768  
License fees and other 3,796   4,891     12,030   16,544  
Total revenue 158,811   144,598     462,063   411,608  
Cost of revenue          
Cost of subscriptions 39,485   33,257     115,063   95,130  
Cost of maintenance 6,708   6,147     21,179   17,544  
Cost of services 26,235   27,111     79,121   78,914  
Cost of license fees and other 1,745   1,633     4,052   4,586  
Total cost of revenue 74,173   68,148     219,415   196,174  
Gross profit 84,638   76,450     242,648   215,434  
Operating expenses          
Sales and marketing 31,139   27,098     89,424   78,647  
Research and development 20,561   19,707     62,003   54,265  
General and administrative 18,446   15,519     53,244   42,118  
Amortization 524   624     1,536   1,629  
Total operating expenses 70,670   62,948     206,207   176,659  
Income from operations 13,968   13,502     36,441   38,775  
Interest income 8   17     23   46  
Interest expense (1,816 ) (1,272 )   (5,375 ) (4,059 )
Loss on sale of business -   -     (1,976 ) -  
Loss on debt extinguishment and termination of derivative instruments -   -     -   (996 )
Other income, net 184   29     584   18  
Income before provision for income taxes 12,344   12,276     29,697   33,784  
Income tax provision 4,433   1,896     10,459   10,310  
Net income $ 7,911   $ 10,380     $ 19,238   $ 23,474  
Earnings per share          
Basic $ 0.17   $ 0.23     $ 0.42   $ 0.52  
Diluted $ 0.17   $ 0.23     $ 0.41   $ 0.51  
Common shares and equivalents outstanding          
Basic weighted average shares 45,616,832   45,196,277     45,576,029   45,160,434  
Diluted weighted average shares 46,596,714   45,883,570     46,403,196   45,704,157  
Dividends per share $ 0.12   $ 0.12     $ 0.36   $ 0.36  
Other comprehensive (loss) income          
Foreign currency translation adjustment 168   (232 )   (354 ) (62 )
Unrealized (loss) gain on derivative instruments, net of tax (262 ) 468     (634 ) 386  
Total other comprehensive (loss) income (94 ) 236     (988 ) 324  
Comprehensive income $ 7,817   $ 10,616     $ 18,250   $ 23,798  
                           

 
Blackbaud, Inc.
Consolidated statements of cash flows
(Unaudited)
 
 
  Nine months ended
 September 30,
(in thousands) 2015 2014
Cash flows from operating activities    
Net income $ 19,238   $ 23,474  
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 41,340   32,586  
Provision for doubtful accounts and sales returns 4,573   3,837  
Stock-based compensation expense 17,899   12,492  
Excess tax benefits from exercise and vesting of stock-based compensation (1,490 ) (3,762 )
Deferred taxes (2,274 ) 86  
Loss on sale of business 1,976   -  
Impairment of capitalized software development costs -   775  
Loss on debt extinguishment and termination of derivative instruments -   996  
Amortization of deferred financing costs and discount 660   524  
Other non-cash adjustments (159 ) 1,672  
Changes in operating assets and liabilities, net of acquisition of businesses:    
Accounts receivable (6,378 ) (1,261 )
Prepaid expenses and other assets (324 ) (255 )
Trade accounts payable 3,284   939  
Accrued expenses and other liabilities (9,027 ) 2,902  
Donor restricted cash 76,091   57,059  
Donations payable (76,091 ) (57,059 )
Deferred revenue 15,973   10,487  
Net cash provided by operating activities 85,291   85,492  
Cash flows from investing activities    
Purchase of property and equipment (14,560 ) (8,317 )
Capitalized software development costs (10,868 ) (6,287 )
Purchase of net assets of acquired companies, net of cash acquired (520 ) (33,275 )
Net cash used in sale of business (521 ) -  
Net cash used in investing activities (26,469 ) (47,879 )
Cash flows from financing activities    
Proceeds from issuance of debt 83,600   201,000  
Payments on debt (122,581 ) (181,095 )
Debt issuance costs (429 ) (2,484 )
Proceeds from exercise of stock options 23   182  
Excess tax benefits from exercise and vesting of stock-based compensation 1,490   3,762  
Dividend payments to stockholders (16,883 ) (16,631 )
Net cash (used in) provided by financing activities (54,780 ) 4,734  
Effect of exchange rate on cash and cash equivalents (1,222 ) (276 )
Net increase in cash and cash equivalents 2,820   42,071  
Cash and cash equivalents, beginning of period 14,735   11,889  
Cash and cash equivalents, end of period $ 17,555   $ 53,960  
             

 
Blackbaud, Inc.
Reconciliation of GAAP to non-GAAP financial measures
(Unaudited)
 
       
(in thousands, except per share amounts and percentages) Three months ended
 September 30,		   Nine months ended
 September 30,
2015 2014   2015 2014
GAAP Revenue $ 158,811   $ 144,598     $ 462,063   $ 411,608  
Non-GAAP adjustments:          
Add: Acquisition-related deferred revenue write-down 1,126   1,600     7,132   1,600  
Non-GAAP revenue $ 159,937   $ 146,198     $ 469,195   $ 413,208  
           
GAAP gross profit $ 84,638   $ 76,450     $ 242,648   $ 215,434  
GAAP gross margin 53.3 % 52.9 %   52.5 % 52.3 %
Non-GAAP adjustments:          
Add: Acquisition-related deferred revenue write-down 1,126   1,600     7,132   1,600  
Add: Stock-based compensation expense 769   882     2,719   2,711  
Add: Amortization of intangibles from business combinations 7,545   5,710     22,750   16,477  
Add: Employee severance 527   -     1,467   -  
Subtotal 9,967   8,192     34,068   20,788  
Non-GAAP gross profit $ 94,605   $ 84,642     $ 276,716   $ 236,222  
Non-GAAP gross margin 59.2 % 57.9 %   59.0 % 57.2 %
           
GAAP income from operations $ 13,968   $ 13,502     $ 36,441   $ 38,775  
GAAP operating margin 8.8 % 9.3 %   7.9 % 9.4 %
Non-GAAP adjustments:          
Add: Acquisition-related deferred revenue write-down 1,126   1,600     7,132   1,600  
Add: Stock-based compensation expense 6,486   4,448     17,899   12,492  
Add: Amortization of intangibles from business combinations 8,068   6,334     24,286   18,106  
Add: Employee severance 631   -     2,211   -  
Add: Impairment of capitalized software development costs -   -     -   770  
Add: Acquisition-related integration costs 53   238     725   335  
Add: Acquisition-related expenses 257   1,080     1,045   1,145  
Add: CEO transition costs -   -     -   870  
Subtotal 16,621   13,700     53,298   35,318  
Non-GAAP income from operations $ 30,589   $ 27,202     $ 89,739   $ 74,093  
Non-GAAP operating margin 19.1 % 18.6 %   19.1 % 17.9 %
           
GAAP net income $ 7,911   $ 10,380     $ 19,238   $ 23,474  
           
Shares used in computing GAAP diluted earnings per share 46,597   45,884     46,403   45,704  
GAAP diluted earnings per share $ 0.17   $ 0.23     $ 0.41   $ 0.51  
           
Non-GAAP adjustments:          
Add: Total Non-GAAP adjustments affecting income from operations 16,621   13,700     53,298   35,318  
Add: Loss on sale of business -   -     1,976   -  
Add: Loss on debt extinguishment and termination of derivative instruments -   -     -   996  
Less: Tax impact related to Non-GAAP adjustments (6,863 ) (8,236 )   (22,680 ) (17,028 )
Non-GAAP net income $ 17,669   $ 15,844     $ 51,832   $ 42,760  
           
Shares used in computing Non-GAAP diluted earnings per share 46,597   45,884     46,403   45,704  
Non-GAAP diluted earnings per share $ 0.38   $ 0.35     $ 1.12   $ 0.94  
                           
                           
Blackbaud, Inc.
Reconciliation of GAAP to Non-GAAP financial measures (continued)
(Unaudited)
                           
                           
(in thousands, except percentages) Three months ended
September 30,		   Nine months ended
 September 30,
2015 2014   2015 2014
GAAP net income $ 7,911   $ 10,380     $ 19,238   $ 23,474  
Non-GAAP adjustments:          
Add: Interest, net 1,808   1,255     5,352   4,013  
Add: Income tax provision 4,433   1,896     10,459   10,310  
Add: Depreciation 4,458   4,596     13,752   13,244  
Add: Amortization of intangibles from business combinations 8,068   6,334     24,286   18,106  
Add: Amortization of software development costs 1,542   462     3,302   1,236  
Subtotal 20,309   14,543     57,151   46,909  
EBITDA $ 28,220   $ 24,923     $ 76,389   $ 70,383  
EBITDA Margin 17.6 % 17.0 %   16.3 % 17.0 %
Non-GAAP adjustments:          
Add: Other (income) expense, net (184 ) (29 )   (584 ) (18 )
Add: Loss on sale of business -   -     1,976   -  
Add: Loss on debt extinguishment and termination of derivative instruments -   -     -   996  
Add: Acquisition-related deferred revenue write-down 1,126   1,600     7,132   1,600  
Add: Stock-based compensation expense 6,486   4,448     17,899   12,492  
Add: Employee severance 631   -     2,211   -  
Add: Impairment of capitalized software development costs -   -     -   770  
Add: Acquisition-related integration costs 53   238     725   335  
Add: Acquisition-related expenses 257   1,080     1,045   1,145  
Add: CEO transition costs -   -     -   870  
Subtotal 8,369   7,337     30,404   18,190  
Adjusted EBITDA $ 36,589   $ 32,260     $ 106,793   $ 88,573  
Adjusted EBITDA Margin 22.9 % 22.1 %   22.8 % 21.4 %
           
Detail of certain Non-GAAP adjustments:          
Stock-based compensation expense:          
Included in cost of revenue:          
Cost of subscriptions $ 213   $ 192     $ 681   $ 556  
Cost of maintenance 107   161     353   502  
Cost of services 449   529     1,685   1,653  
Total included in cost of revenue 769   882     2,719   2,711  
Included in operating expenses:          
Sales and marketing 768   562     2,273   1,621  
Research and development 1,145   762     3,309   2,186  
General and administrative 3,804   2,242     9,598   5,974  
Total included in operating expenses 5,717   3,566     15,180   9,781  
Total stock-based compensation expense $ 6,486   $ 4,448     $ 17,899   $ 12,492  
           
Amortization of intangibles from business combinations:          
Included in cost of revenue:          
Cost of subscriptions $ 5,761   $ 4,721     $ 17,300   $ 13,715  
Cost of maintenance 1,000   114     3,160   344  
Cost of services 698   768     2,007   2,100  
Cost of license fees and other 86   107     283   318  
Total included in cost of revenue 7,545   5,710     22,750   16,477  
Included in operating expenses 523   624     1,536   1,629  
Total amortization of intangibles from business combinations $ 8,068   $ 6,334     $ 24,286   $ 18,106  
                           

Investor Contact:
Jagtar Narula
Blackbaud, Inc.
843-654-2164
jagtar.narula@blackbaud.com

Media Contact:
Nicole McGougan
Blackbaud, Inc.
843-654-3307
nicole.mcgougan@blackbaud.com



This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Blackbaud via Globenewswire
HUG#1962218

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