Blackbaud Inc (BLKB) 10-Q Quarterly Report August 2018

Charleston, S.C. (July 30, 2018) - Blackbaud (NASDAQ: BLKB), the world's leading cloud software company powering social good, today announced financial results for its second quarter ended June 30, 2018.

"We've continued moving the business toward a subscriptions-based revenue model with our mix of recurring revenue now standing at 90 percent of total, a new all-time high for us," said Mike Gianoni, Blackbaud's president and CEO. "We announced our Cloud Solution for Faith Communities with the introduction of Blackbaud Church Management™ which is a massive market for us and a tremendous opportunity to deliver integrated, end-to-end cloud capabilities through a single, connected experience. Our Cloud Solution for Faith Communities takes full advantage of the rapid innovation, modern user experience and enhanced capabilities made possible by our Blackbaud SKY® platform. No one in the industry has taken this approach with a modern platform and customers are lining up to be a part of our early adopter program."

Second Quarter 2018 Results Compared to Second Quarter 2017 Results:


•	Total GAAP revenue was $213.7 million, up 11.5%, with $192.7 million in GAAP recurring revenue, representing 90.2% of total GAAP revenue. GAAP recurring revenue was up 15.8%.


•	Total non-GAAP revenue was $214.6 million, up 11.8%, with $193.6 million in non-GAAP recurring revenue, representing 90.2% of total non-GAAP revenue. Non-GAAP recurring revenue was up 16.2%.


•	Non-GAAP organic revenue increased 4.8% and non-GAAP organic recurring revenue increased 8.0%.


•	GAAP income from operations decreased 31.2% to $11.4 million, with GAAP operating margin decreasing 330 basis points to 5.3%.


•	Non-GAAP income from operations increased 11.9% to $45.2 million, with non-GAAP operating margin increasing 10 basis points to 21.1%.


•	GAAP net income decreased 40.2% to $6.6 million, with GAAP diluted earnings per share of $0.14, down $0.09.


•	Non-GAAP net income increased 28.8% to $33.0 million, with non-GAAP diluted earnings per share of $0.69, up $0.15.


•	Non-GAAP free cash flow was $41.6 million, an increase of $9.8 million.

"We've been diligently executing a workplace strategy to better align our organizational objectives with our geographically diverse workforce in the second quarter,” said Tony Boor, Blackbaud's executive vice president and CFO. "We moved into our new state-of-the-art world headquarters in Charleston, SC, and continued upgrading and expanding our satellite office locations to be more centrally located for employees and closer to customers. We expect to incur near-term before tax restructuring charges from $6 to $8 million through 2019 with future expected annual before-tax savings of between $3 and $4 million beginning in 2020. We've also seen solid gains in our sales productivity and plan to ramp sales hiring heading into the second-half of 2018 with the expectation that we won't see material top-line return on these investments until 2019 and more fully in 2020."

An explanation of all non-GAAP financial measures referenced in this press release 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.

The following information was filed by Blackbaud Inc (BLKB) on Monday, July 30, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

Blackbaud Inc provided additional information to their SEC Filing as exhibits

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Exhibit 32.2: Section 1350 Certification

Ticker: BLKB
CIK: 1280058
Form Type: 10-Q Quarterly Report
Accession Number: 0001280058-18-000032
Submitted to the SEC: Fri Aug 03 2018 8:16:48 AM EST
Accepted by the SEC: Fri Aug 03 2018
Period: Saturday, June 30, 2018
Industry: Prepackaged Software