Technology
Blackbaud Announces 2024 Second Quarter Results
Published
2 years agoon
By
Revenue Growth More than Doubles Year over Year with Significantly Improved Profitability; Blackbaud Board of Directors Approve Expanded $800 Million Stock Repurchase Authorization
CHARLESTON, S.C., July 30, 2024 /PRNewswire/ — Blackbaud (NASDAQ: BLKB), the leading provider of software for powering social impact, today announced financial results for its second quarter ended June 30, 2024.
“We continue to execute on our strategic initiatives, and I am optimistic about the opportunities ahead in the near, mid and long-term,” said Mike Gianoni, president, CEO and vice chairman of the board of directors, Blackbaud. “Blackbaud is a clear market leader with a path to penetrate even further into a rich market opportunity. The leverage of our financial model allows us to aggressively invest in innovation, which provides great value to our existing customers and increases our ability to attract new prospects. And our strong cash flow enables us to execute on a purposeful and prudent stock repurchase program to improve shareholder value.”
Second Quarter 2024 Results Compared to Second Quarter 2023 Results:
GAAP total revenue was $287.3 million, up 6.0% and non-GAAP organic revenue increased 6.7%.GAAP recurring revenue was $281.4 million, up 7.2% and represented 98% of total revenue. Non-GAAP organic recurring revenue increased 7.2%.GAAP income from operations was $42.1 million, with GAAP operating margin of 14.7%, an increase of 1,460 basis points.Non-GAAP income from operations was $86.1 million, with non-GAAP operating margin of 30.0%, an increase of 260 basis points.GAAP net income was $21.8 million, with GAAP diluted earnings per share of $0.42, up $0.38 per share.Non-GAAP net income was $55.7 million, with non-GAAP diluted earnings per share of $1.08, up $0.10 per share.Non-GAAP adjusted EBITDA was $102.5 million, up $13.7 million, with non-GAAP adjusted EBITDA margin of 35.7%, an increase of 290 basis points.GAAP net cash provided by operating activities was $53.8 million, an increase of $0.6 million, with GAAP operating cash flow margin of 18.7%, a decrease of 90 basis points.Non-GAAP free cash flow was $32.6 million, a decrease of $4.4 million, with non-GAAP free cash flow margin of 11.4%, a decrease of 220 basis points.Non-GAAP adjusted free cash flow was $36.4 million, a decrease of $7.2 million, with non-GAAP adjusted free cash flow margin of 12.7%, a decrease of 340 basis points.
“I’m pleased with our financial performance in the second quarter as our operating plan continues to deliver greatly improved profitable growth,” said Tony Boor, executive vice president and CFO, Blackbaud. “In the second quarter, total revenue grew 6.0%, while non-GAAP organic revenue growth was 6.7%. Our Social Sector, representing 88% of total revenue in the quarter, grew even faster at 8.5%. Non-GAAP adjusted EBITDA performance in the quarter was strong with a margin of 35.7%, a 290 basis points increase year over year. With our new $800 million repurchase authorization and ample debt capacity, we plan to be very purposeful about buying back our stock and believe there is no better use of capital than investing back into our business through product innovation and returning money to shareholders at this valuation.”
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’s board of directors reauthorized, expanded and replenished the company’s existing stock repurchase program, raising the total capacity from $500 million to $800 million available for repurchases of the company’s common stock.Blackbaud recently announced that Dale Strange has taken the reins of the Corporate Impact business and been appointed to the company’s executive leadership team as Tom Davidson, founder of EVERFI, moves to a strategic advisory role. Blackbaud was named one of America’s Best Mid-Size Companies 2024 by TIME, ranking 195 out of 500 companies based on employee satisfaction, revenue growth and sustainability transparency. At its recent spring Product Update Briefings, Blackbaud announced hundreds of product updates and rolled out new roadmaps, sharing how the company is more deeply connecting customers’ business offices, incorporating AI for greater impact, and delivering a unified view for Raiser’s Edge NXT®.Blackbaud made a strategic investment in UBIQ Education, innovators in school websites, to extend Blackbaud’s Total School Solution and offer a native integration with UBIQ’s AMAIS platform, giving customers direct access to a cutting-edge suite of marketing and admissions tools with seamless data integration across the platform.Six companies are participating in the July 2024 cohort of Blackbaud’s Social Good Startup Program, bringing innovative solutions to Blackbaud customers—from AI-powered fundraising and content tools to digital assistant chatbots. Blackbaud announced its bbcon 2024 tech conference, happening Sept. 24-26 in Seattle.
Visit www.blackbaud.com/newsroom for more information about Blackbaud’s recent highlights.
Financial Outlook
Blackbaud today reiterated its 2024 full year financial guidance:
GAAP revenue of $1.164 billion to $1.194 billionNon-GAAP adjusted EBITDA margin of 32.5% to 33.5%Non-GAAP earnings per share of $4.12 to $4.38Non-GAAP adjusted free cash flow of $254 million to $274 million
Included in its 2024 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 $52 million to $56 millionFully diluted shares for the year are expected to be approximately 51.0 million to 52.0 millionCapital expenditures for the year are expected to be approximately $65 million to $75 million, including approximately $60 million to $70 million of capitalized software and content development costs
Blackbaud has not reconciled forward-looking full-year non-GAAP financial measures contained in this news release to their most directly comparable GAAP measures, as permitted by Item 10(e)(1)(i)(B) of Regulation S-K. Such reconciliations would require unreasonable efforts at this time to estimate and quantify with a reasonable degree of certainty various necessary GAAP components, including for example those related to compensation, acquisition transactions and integration, tax items or others that may arise during the year. These components and other factors could materially impact the amount of the future directly comparable GAAP measures, which may differ significantly from their non-GAAP counterparts.
In order to provide a meaningful basis for comparison, Blackbaud uses non-GAAP adjusted free cash flow in analyzing its operating performance. Non-GAAP adjusted free cash flow is defined as operating cash flow less capital expenditures, including costs required to be capitalized for software and content development, capital expenditures for property and equipment, plus cash outflows related to the previously disclosed Security Incident discovered in May 2020 (the “Security Incident”). Total costs related to the Security Incident exceeded the limit of our insurance coverage during the first quarter of 2022. For full year 2024, Blackbaud currently expects net cash outlays of $8 million to $13 million for ongoing legal fees related to the Security Incident. In line with the company’s policy, all associated costs due to third-party service providers and consultants, including legal fees, are expensed as incurred. 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 July 16, 2024, Blackbaud had approximately $800.0 million remaining under its common stock repurchase program that was expanded, replenished and reauthorized in July 2024.
Conference Call Details
What: Blackbaud’s 2024 Second Quarter Conference Call
When: July 31, 2024
Time: 8:00 a.m. (Eastern Time)
Live Call: 1-877-407-3088 (US/Canada)
Webcast: Blackbaud’s Investor Relations Webpage
About Blackbaud
Blackbaud (NASDAQ: BLKB) is the 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 $100 billion raised, granted or managed through Blackbaud platforms every year, Blackbaud’s solutions are unleashing the potential of the people and organizations who change the world. Blackbaud has been named to Newsweek’s list of America’s Most Responsible Companies, Quartz’s list of Best Companies for Remote Workers and Forbes’ list of America’s Best Employers. A remote-first company, Blackbaud has operations in the United States, Australia, Canada, Costa Rica and the United Kingdom, supporting users in 100+ countries. Learn more at www.blackbaud.com, or follow us on X/Twitter, LinkedIn, Instagram, and Facebook.
Investor Contact
IR@blackbaud.com
Media Contact
media@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 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.
As previously disclosed, beginning in 2024, we apply a non-GAAP effective tax rate of 24.5% when calculating non-GAAP net income and non-GAAP diluted earnings per share. The non-GAAP tax rate utilized in future periods will be reviewed annually to determine whether it remains appropriate in consideration of our financial results including our periodic effective tax rate calculated in accordance with GAAP, our operating environment and related tax legislation in effect and other factors deemed necessary. All 2023 measures of 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 20.0%.
Non-GAAP free cash flow is defined as operating cash flow less capital expenditures, including costs required to be capitalized for software and content 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 and content 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 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 and content development costs; stock-based compensation; employee severance; acquisition and disposition-related costs; restructuring and other real estate activities; Security Incident-related costs; and impairment of capitalized software development costs.
Blackbaud, Inc.
Consolidated Balance Sheets
(Unaudited)
(dollars in thousands, except per share amounts)
June 30,
2024
December 31,
2023
Assets
Current assets:
Cash and cash equivalents
$ 30,438
$ 31,251
Restricted cash
800,670
697,006
Accounts receivable, net of allowance of $6,006 and $6,907 at June 30, 2024 and
December 31, 2023, respectively
152,832
101,862
Customer funds receivable
2,943
353
Prepaid expenses and other current assets
92,290
99,285
Total current assets
1,079,173
929,757
Property and equipment, net
98,066
98,689
Operating lease right-of-use assets
28,489
36,927
Software and content development costs, net
165,465
160,194
Goodwill
1,053,249
1,053,738
Intangible assets, net
549,521
581,937
Other assets
68,785
51,037
Total assets
$ 3,042,748
$ 2,912,279
Liabilities and stockholders’ equity
Current liabilities:
Trade accounts payable
$ 44,038
$ 25,184
Accrued expenses and other current liabilities
51,682
64,322
Due to customers
802,372
695,842
Debt, current portion
23,786
19,259
Deferred revenue, current portion
427,098
392,530
Total current liabilities
1,348,976
1,197,137
Debt, net of current portion
998,071
760,405
Deferred tax liability
75,397
93,292
Deferred revenue, net of current portion
2,315
2,397
Operating lease liabilities, net of current portion
36,290
40,085
Other liabilities
4,362
10,258
Total liabilities
2,465,411
2,103,574
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, 70,883,488 and
69,188,304 shares issued at June 30, 2024 and December 31, 2023, respectively;
51,623,951 and 53,625,440 shares outstanding at June 30, 2024 and December 31, 2023,
respectively
71
69
Additional paid-in capital
1,208,624
1,203,012
Treasury stock, at cost; 19,259,537 and 15,562,864 shares at June 30, 2024 and
December 31, 2023, respectively
(857,452)
(591,557)
Accumulated other comprehensive income (loss)
175
(1,688)
Retained earnings
225,919
198,869
Total stockholders’ equity
577,337
808,705
Total liabilities and stockholders’ equity
$ 3,042,748
$ 2,912,279
Blackbaud, Inc.
Consolidated Statements of Comprehensive Income (Loss)
(Unaudited)
(dollars in thousands, except per share amounts)
Three months ended
June 30,
Six months ended
June 30,
2024
2023
2024
2023
Revenue
Recurring
$ 281,376
$ 262,390
$ 552,894
$ 515,138
One-time services and other
5,910
8,652
13,642
17,657
Total revenue
287,286
271,042
566,536
532,795
Cost of revenue
Cost of recurring
119,810
113,926
238,998
228,426
Cost of one-time services and other
4,890
7,549
11,908
16,161
Total cost of revenue
124,700
121,475
250,906
244,587
Gross profit
162,586
149,567
315,630
288,208
Operating expenses
Sales, marketing and customer success
47,081
53,191
97,946
107,576
Research and development
39,068
36,146
81,870
76,737
General and administrative
33,443
59,148
81,197
111,986
Amortization
902
788
1,806
1,562
Total operating expenses
120,494
149,273
262,819
297,861
Income (loss) from operations
42,092
294
52,811
(9,653)
Interest expense
(15,715)
(11,167)
(25,991)
(21,829)
Other income, net
3,310
2,778
6,657
4,785
Income (loss) before provision (benefit) for income taxes
29,687
(8,095)
33,477
(26,697)
Income tax provision (benefit)
7,883
(10,200)
6,427
(14,101)
Net income (loss)
$ 21,804
$ 2,105
$ 27,050
$ (12,596)
Earnings (loss) per share
Basic
$ 0.43
$ 0.04
$ 0.53
$ (0.24)
Diluted
$ 0.42
$ 0.04
$ 0.52
$ (0.24)
Common shares and equivalents outstanding
Basic weighted average shares
50,747,337
52,642,411
51,399,853
52,389,112
Diluted weighted average shares
51,677,418
53,643,124
52,371,927
52,389,112
Other comprehensive (loss) income
Foreign currency translation adjustment
$ 339
$ 3,055
$ (846)
$ 5,213
Unrealized (loss) gain on derivative instruments, net of tax
(1,386)
5,383
2,709
(5,309)
Total other comprehensive (loss) income
(1,047)
8,438
1,863
(96)
Comprehensive income (loss)
$ 20,757
$ 10,543
$ 28,913
$ (12,692)
Blackbaud, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
Six months ended
June 30,
(dollars in thousands)
2024
2023
Cash flows from operating activities
Net income (loss)
$ 27,050
$ (12,596)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization
60,553
53,622
Provision for credit losses and sales returns
519
3,798
Stock-based compensation expense
57,856
63,289
Deferred taxes
(18,810)
(33,101)
Amortization of deferred financing costs and discount
984
963
Loss on disposition of business
1,561
—
Other non-cash adjustments
2,462
(1,569)
Changes in operating assets and liabilities, net of acquisition and disposal of businesses:
Accounts receivable
(53,062)
(69,624)
Prepaid expenses and other assets
(2,473)
9,470
Trade accounts payable
19,146
(3,431)
Accrued expenses and other liabilities
(13,579)
11,948
Deferred revenue
36,228
52,233
Net cash provided by operating activities
118,435
75,002
Cash flows from investing activities
Purchase of property and equipment
(6,118)
(2,779)
Capitalized software and content development costs
(28,392)
(28,756)
Net cash used in disposition of business
(1,179)
—
Other investing activities
(5,029)
—
Net cash used in investing activities
(40,718)
(31,535)
Cash flows from financing activities
Proceeds from issuance of debt
1,211,600
158,000
Payments on debt
(966,680)
(171,824)
Debt issuance costs
(6,458)
—
Employee taxes paid for withheld shares upon equity award settlement
(54,483)
(33,687)
Change in due to customers
106,851
61,313
Change in customer funds receivable
(2,577)
(3,359)
Purchase of treasury stock
(262,596)
—
Net cash provided by financing activities
25,657
10,443
Effect of exchange rate on cash, cash equivalents and restricted cash
(523)
2,489
Net increase in cash, cash equivalents and restricted cash
102,851
56,399
Cash, cash equivalents and restricted cash, beginning of period
728,257
733,931
Cash, cash equivalents and restricted cash, end of period
$ 831,108
$ 790,330
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,
2024
December 31,
2023
Cash and cash equivalents
$ 30,438
$ 31,251
Restricted cash
800,670
697,006
Total cash, cash equivalents and restricted cash in the statement of cash flows
$ 831,108
$ 728,257
Blackbaud, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
(dollars in thousands, except per share amounts)
Three months ended
June 30,
Six months ended
June 30,
2024
2023
2024
2023
GAAP Revenue
$ 287,286
$ 271,042
$ 566,536
$ 532,795
GAAP gross profit
$ 162,586
$ 149,567
$ 315,630
$ 288,208
GAAP gross margin
56.6 %
55.2 %
55.7 %
54.1 %
Non-GAAP adjustments:
Add: Stock-based compensation expense
3,377
4,143
7,151
8,097
Add: Amortization of intangibles from business combinations
14,639
13,136
29,302
26,247
Add: Employee severance
—
54
—
797
Subtotal
18,016
17,333
36,453
35,141
Non-GAAP gross profit
$ 180,602
$ 166,900
$ 352,083
$ 323,349
Non-GAAP gross margin
62.9 %
61.6 %
62.1 %
60.7 %
GAAP income (loss) from operations
$ 42,092
$ 294
$ 52,811
$ (9,653)
GAAP operating margin
14.7 %
0.1 %
9.3 %
(1.8) %
Non-GAAP adjustments:
Add: Stock-based compensation expense
24,286
33,364
57,856
63,289
Add: Amortization of intangibles from business combinations
15,541
13,924
31,108
27,809
Add: Employee severance
—
632
—
4,954
Add: Acquisition and disposition-related costs
2,398
(849)
4,653
(230)
Add: Security Incident-related costs(1)
1,822
26,777
12,145
44,560
Subtotal
44,047
73,848
105,762
140,382
Non-GAAP income from operations
$ 86,139
$ 74,142
$ 158,573
$ 130,729
Non-GAAP operating margin
30.0 %
27.4 %
28.0 %
24.5 %
GAAP income (loss) before provision (benefit) for income taxes
$ 29,687
$ (8,095)
$ 33,477
$ (26,697)
GAAP net income (loss)
$ 21,804
$ 2,105
$ 27,050
$ (12,596)
Shares used in computing GAAP diluted earnings (loss) per share
51,677,418
53,643,124
52,371,927
52,389,112
GAAP diluted earnings (loss) per share
$ 0.42
$ 0.04
$ 0.52
$ (0.24)
Non-GAAP adjustments:
Add: GAAP income tax provision (benefit)
7,883
(10,200)
6,427
(14,101)
Add: Total non-GAAP adjustments affecting income from operations
44,047
73,848
105,762
140,382
Non-GAAP income before provision for income taxes
73,734
65,753
139,239
113,685
Assumed non-GAAP income tax provision(2)
18,065
13,151
34,114
22,737
Non-GAAP net income
$ 55,669
$ 52,602
$ 105,125
$ 90,948
Shares used in computing non-GAAP diluted earnings per share
51,677,418
53,643,124
52,371,927
53,168,985
Non-GAAP diluted earnings per share
$ 1.08
$ 0.98
$ 2.01
$ 1.71
(1)
Includes Security Incident-related costs incurred during the three and six months ended June 30, 2024 of $1.8 million and $12.1 million, respectively, which includes approximately $0.0 million and $7.0 million, respectively, in recorded liabilities for loss contingencies, and during the three and six months ended June 30, 2023 of $26.8 million and $44.6 million, respectively, which included approximately $19.8 million and $30.0 million, respectively, in recorded aggregate liabilities for loss contingencies. Recorded expenses consisted primarily of payments to third-party service providers and consultants, including legal fees, as well as settlements of customer claims, negotiated settlements and accruals for certain loss contingencies. Not included in this adjustment were costs associated with enhancements to our cybersecurity program. For full year 2024, we currently expect pre-tax expenses of approximately $5 million to $10 million and cash outlays of approximately $8 million to $13 million for ongoing legal fees related to the Security Incident. Not included in these ranges are our previous settlements or current accruals for loss contingencies related to the matters discussed below. In line with our policy, legal fees are expensed as incurred. As of June 30, 2024, we have recorded approximately $8.5 million in aggregate liabilities for loss contingencies, which included $6.8 million for our settlement with the Attorney General of the State of California on June 13, 2024, and other accruals based primarily on recent negotiations with certain customers related to the Security Incident that we believe we can reasonably estimate. It is reasonably possible that our estimated or actual losses may change in the near term for those matters and be materially in excess of the amounts accrued, but we are unable at this time to reasonably estimate the possible additional loss. There are other Security Incident-related matters, including customer claims, customer constituent class actions and governmental investigations, for which we have not recorded a liability for a loss contingency as of June 30, 2024 because we are unable at this time to reasonably estimate the possible loss or range of loss. Each of these matters could, separately or in the aggregate, result in an adverse judgment, settlement, fine, penalty or other resolution, the amount, scope and timing of which we are currently unable to predict, but could have a material adverse impact on our results of operations, cash flows or financial condition.
(2)
Beginning in 2024, we now apply a non-GAAP effective tax rate of 24.5% when calculating non-GAAP net income and non-GAAP diluted earnings per share. For the three and six months ended June 30, 2023, the tax impact related to non-GAAP adjustments is calculated under our historical non-GAAP effective tax rate of 20.0%.
Blackbaud, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
(Unaudited)
(dollars in thousands)
Three months ended
June 30,
Six months ended
June 30,
2024
2023
2024
2023
GAAP revenue(1)
$ 287,286
$ 271,042
$ 566,536
$ 532,795
GAAP revenue growth
6.0 %
6.3 %
Less: Non-GAAP revenue from divested businesses(2)
—
(1,851)
—
(2,497)
Non-GAAP organic revenue(2)
$ 287,286
$ 269,191
$ 566,536
$ 530,298
Non-GAAP organic revenue growth
6.7 %
6.8 %
Non-GAAP organic revenue(3)
$ 287,286
$ 269,191
$ 566,536
$ 530,298
Foreign currency impact on non-GAAP organic revenue(4)
(195)
—
(1,106)
—
Non-GAAP organic revenue on constant currency basis(4)
$ 287,091
$ 269,191
$ 565,430
$ 530,298
Non-GAAP organic revenue growth on constant currency basis
6.6 %
6.6 %
GAAP recurring revenue
$ 281,376
$ 262,390
$ 552,894
$ 515,138
GAAP recurring revenue growth
7.2 %
7.3 %
Less: Non-GAAP recurring revenue from divested businesses(2)
—
—
—
—
Non-GAAP organic recurring revenue(3)
$ 281,376
$ 262,390
$ 552,894
$ 515,138
Non-GAAP organic recurring revenue growth
7.2 %
7.3 %
Non-GAAP organic recurring revenue(2)
$ 281,376
$ 262,390
$ 552,894
$ 515,138
Foreign currency impact on non-GAAP organic recurring revenue(4)
(197)
—
(1,065)
—
Non-GAAP organic recurring revenue on constant currency basis(4)
$ 281,179
$ 262,390
$ 551,829
$ 515,138
Non-GAAP organic recurring revenue growth on constant
currency basis
7.2 %
7.1 %
(1)
Includes EVERFI revenue of $23.8 million and $27.3 million for the three months ended June 30, 2024 and 2023, respectively, and $47.3 million and $54.2 million for the six months ended June 30, 2024 and 2023, respectively.
(2)
Non-GAAP revenue from divested businesses excludes revenue associated with divested businesses. 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.
(3)
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.
(4)
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 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 Australian Dollar, British Pound, Canadian Dollar and Euro.
Blackbaud, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
(Unaudited)
(dollars in thousands)
Three months ended
June 30,
Six months ended
June 30,
2024
2023
2024
2023
GAAP net income (loss)
$ 21,804
$ 2,105
$ 27,050
$ (12,596)
Non-GAAP adjustments:
Add: Interest, net
12,900
8,859
21,128
18,285
Add: GAAP income tax provision (benefit)
7,883
(10,200)
6,427
(14,101)
Add: Depreciation
3,253
3,272
6,328
6,608
Add: Amortization of intangibles from business combinations
15,541
13,924
31,108
27,809
Add: Amortization of software and content development costs(1)
12,639
10,934
24,729
21,540
Subtotal
52,216
26,789
89,720
60,141
Non-GAAP EBITDA
$ 74,020
$ 28,894
$ 116,770
$ 47,545
Non-GAAP EBITDA margin(2)
25.8 %
20.6 %
Non-GAAP adjustments:
Add: Stock-based compensation expense
24,286
33,364
57,856
63,289
Add: Employee severance
—
632
—
4,954
Add: Acquisition and disposition-related costs(3)
2,398
(849)
4,653
(230)
Add: Security Incident-related costs(3)
1,822
26,777
12,145
44,560
Subtotal
28,506
59,924
74,654
112,573
Non-GAAP adjusted EBITDA
$ 102,526
$ 88,818
$ 191,424
$ 160,118
Non-GAAP adjusted EBITDA margin(4)
35.7 %
33.8 %
Rule of 40(5)
42.4 %
40.6 %
Non-GAAP adjusted EBITDA
102,526
88,818
191,424
160,118
Foreign currency impact on Non-GAAP adjusted EBITDA(6)
(88)
574
(503)
1,871
Non-GAAP adjusted EBITDA on constant currency basis(6)
$ 102,438
$ 89,392
$ 190,921
$ 161,989
Non-GAAP adjusted EBITDA margin on constant currency basis
35.7 %
33.8 %
Rule of 40 on constant currency basis(7)
42.3 %
40.4 %
(1)
Includes amortization expense related to software and content 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 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 Australian Dollar, British Pound, Canadian Dollar and Euro.
(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
June 30,
2024
2023
GAAP net cash provided by operating activities
$ 118,435
$ 75,002
GAAP operating cash flow margin
20.9 %
14.1 %
Non-GAAP adjustments:
Less: purchase of property and equipment
(6,118)
(2,779)
Less: capitalized software and content development costs
(28,392)
(28,756)
Non-GAAP free cash flow
$ 83,925
$ 43,467
Non-GAAP free cash flow margin
14.8 %
8.2 %
Non-GAAP adjustments:
Add: Security Incident-related cash flows
5,822
15,822
Non-GAAP adjusted free cash flow
$ 89,747
$ 59,289
Non-GAAP adjusted free cash flow margin
15.8 %
11.1 %
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SOURCE Blackbaud
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Procurement Reviews Now Ask How AI Platform Data Is Deleted; FastGPT Publishes Retention Periods and Deletion Semantics
Published
9 minutes agoon
September 4, 2026By
Retention windows for conversation records, model-call traces and audit logs are now documented with their configuration variables and defaults
HANGZHOU, China, Sept. 4, 2026 /PRNewswire/ — FastGPT, an open-source AI application platform for organizations, has consolidated in its public documentation how four classes of data are retained and removed: conversation records, knowledge base files, model-call traces and audit logs. The items were previously spread across a privacy policy, per-version upgrade notes and API reference pages.
For the cloud service, the privacy policy states that data deletion performed by a user is a physical deletion and is not recoverable, and that any non-physical deletion would be indicated in the service. The same policy states that user data is not kept as additional backup copies and is not used for model training. That page records its own last update as March 3, 2024.
Model-call traces used for short-term debugging are kept for six hours by default, adjustable through LLM_REQUEST_TRACKING_RETENTION_HOURS. Suspended agent sandboxes are archived after a period of inactivity set by AGENT_SANDBOX_ARCHIVE_INACTIVE_DAYS, with a default of seven days. Audit logs moved in the opposite direction in v4.16.0: on expiry they are transferred to cold archive storage rather than deleted, since traceability, not prompt removal, is what that class of data is kept for.
Three boundaries are documented alongside the defaults. The API endpoint that clears conversations affects only conversations created through an API key, and does not clear those from web use or shared links. Automatic cleanup depends on background tasks that can fail; two such defects were fixed in earlier releases, so a request to delete and a completed deletion should be verified separately. For community self-hosting and commercial private deployment, retention and cleanup are governed by the deploying organization, and the environment variables provide adjustable controls rather than a compliance conclusion.
About FastGPT
FastGPT is an open-source AI application platform offering RAG knowledge bases, visual workflows, agent orchestration, Skill, MCP and multi-channel publishing, available as a cloud service, community self-hosted, or commercial private deployment. As of Sept. 3, 2026, the GitHub repository labring/FastGPT has 29,551 stars and 7,297 forks across 275 releases, with v4.16.2 published on Sept. 3, 2026. Repository: github.com/labring/FastGPT
View original content:https://www.prnewswire.com/news-releases/procurement-reviews-now-ask-how-ai-platform-data-is-deleted-fastgpt-publishes-retention-periods-and-deletion-semantics-302869833.html
SOURCE FastGPT
Technology
TECNO POVA 8 Pro 5G Tonino Lamborghini Limited Edition Launches: A Phone Delivering Italian Aesthetics and Spirit with Power and Energy
Published
9 minutes agoon
September 4, 2026By
TECNO POVA 8 Pro 5G Tonino Lamborghini Limited Edition features iconic Tonino Lamborghini design languages, while upholding the POVA series’ signature all-around performance from computing, imaging to AI.
HONG KONG, Sept. 4, 2026 /PRNewswire/ — TECNO, the AI-driven innovative technology brand, today launched the TECNO POVA 8 Pro 5G Tonino Lamborghini Limited Edition. Crafted as an all-around high-performance device wrapped in distinctive design, it speaks to those who seek a life beyond the ordinary — driven by an unwavering passion for performance, uncompromised style and design excellence.
The POVA 8 Pro 5G Tonino Lamborghini Limited Edition answers this demand: iconic Italian design speaking strength and energy; a dual-chipset architecture delivering the speed; Sony sensors capturing vivid images, and an array of practical AI functions empowering users every day.
The collaboration, first announced in March, is driven by both brands’ desire to stand out through bold innovations. The multi-year partnership combines the best of both worlds: TECNO’s deep well of innovation, technical mastery, and intimate understanding of a new generation of users; as well as Tonino Lamborghini’s Italian craftsmanship, engineering and mechanical heritage, and an unmistakable lifestyle experience.
“Too often, phone makers choose the ‘safest option’ even at the loss of individuality. Meanwhile, TECNO is known to choose the road less taken with highly distinguishable designs and functions, revolutionizing the digital experiences of hundreds of millions,” said Jack Guo, general manager of TECNO. “The launch of TECNO POVA 8 Pro Tonino Lamborghini Limited Edition represents a defining moment for TECNO. With this model, we create not only a new product but a journey throughout the design, the interface, the configurations and even AI.”
“For over 45 years, I have translated the strength of my mechanical heritage and my eclectic vision into pioneering partnership, selected markets and products shaped by a distinctive idea of Italian lifestyle and an uncompromising personal spirit. With TECNO, we are proud to bring this vision into this category, where technology becomes more than function: it becomes character, identity and personal expression,” said Mr. Tonino Lamborghini, Founder and President of Tonino Lamborghini S.p.A. “The TECNO POVA 8 Pro 5G Tonino Lamborghini Limited Edition captures my bold spirit: precision, energy, craftsmanship and an unmistakable design attitude. It is not a style applied on the surface, but a character running through the product itself. Created for those who are not satisfied with ordinary technology, it is a smartphone with a story, with spirit and with a clear statement of lifestyle.”
Bold Design, in Every Layer
TECNO POVA 8 Pro 5G Tonino Lamborghini Limited Edition builds around the most unmistakable elements of the Tonino Lamborghini design: the black-and-red palette of charisma and energy; and a hexagon pattern of strength and endurance.
At its center lies the Pulse Line — the arresting visual focal point inspired by mechanical precision and the flow of kinetic energy. Encircling it is the Signature Shield hexagonal pattern. Thanks to a dual-layer stacking process, the rear panel offers a refined reflective quality and includes countless internal mirror structures that refract and redirect light. As the phone rotates, red elements surface from and then dive into the light and shadows, as if raw energy flushes across the surface of the phone.
Between the two layers, a physical height difference creates genuine spatial depth, recreating the layered geometry found in mechanical designs. The Tonino Lamborghini logo, rendered in a premium metallic finish, anchors the composition as the testament of the aesthetics.
The boldness extends through the entire user experience. A bespoke interface theme reworks dozens of icons in a black-and-red palette with glass-like material effects. The boot animation unfolds with the Pulse Line and crimson energy. A customized “L” signature, part of the brand heritage, effect appears on the Alive Matrix Display with other pre-defined scenarios and customization options. The ringtone is also bespoke.
The model, meanwhile, is also unmistakably POVA with the trinity camera module. A dedicated One-Tap Button on the side provides instant access to favorite apps, customizable gaming actions, and quick shortcuts. At 7.39mm thin, the model hosts a 6,500mAh battery. Tests by TECNO show the battery operates normally from -20°C to 60°C and maintains over 80% health even after 2,000 complete charge cycles, or up to six years of battery life.
Bold Performance, in All Aspects
A dual-chipset architecture drives the performance of TECNO POVA 8 Pro 5G Tonino Lamborghini Limited Edition: A MediaTek Dimensity 7400 Ultimate 5G platform, a P1 Graphic Chip developed by TECNO, supported by a 5K IceShield Vapor Chamber Cooling System.
The 8-core MediaTek Dimensity 7400 Ultimate 5G platform features intelligent scheduling and is well-suited for large games and multi-tasking while maintaining superior power efficiency even on high-speed 5G networks.
The P1 Graphic Chip offloads GPU rendering to deliver up to 144FPS in supported mainstream titles like Mobile Legends: Bang Bang, PUBG, Call of Duty, and Honor of Kings; up to 90FPS in supported heavy titles like Genshin Impact, Honkai: Star Rail, and Wuthering Waves. 1.5K resolution is available across 30+ games, and so is HDR quality when supported*.
Managing heat is the 5K IceShield VC Cooling System. It includes a 5000mm² vapor chamber with a 9-layer thermal architecture with direct copper contact to the CPU, making the total heat dissipation area over 22,000mm². Even in heated temperatures, the phone continues to dissipate heat and perform effectively.
Bold Moments, in Clear Shots
TECNO POVA 8 Pro 5G Tonino Lamborghini Limited Edition is equipped with LYTIA™ 700C OIS main camera, co-engineered with Sony and built around a 1/1.56-inch sensor. The sensor features 2×2 OCL (On-Chip Lens) technology, enabling faster and more precise autofocus even in challenging lighting conditions.
The Sony’s LYTIA™ 700C sensor also delivers a larger light-sensitive area and a clear advantage in night photography and low-light scenarios. The integrated OIS (Optical Image Stabilization) further reduces blur from hand shakes, making handheld shots sharper and video recording steadier.
For those looking for details, TECNO POVA 8 Pro 5G Tonino Lamborghini Limited Edition supports 2× lossless zoom and a dedicated 50MP high-pixel mode. In addition, it includes an 8MP ultra-wide camera for capturing expansive landscapes and group shots, and a 13MP front camera for selfies and video calls.
Bold Visuals, in Vivid Colors
A 6.78-inch 1.5K 144Hz HyperLux AMOLED screen with adaptive refresh rate balances performance and battery life. The DCI-P3 wide color gamut standard, used in Hollywood film production ensures faithful restoration of blockbusters on the screen. The peak brightness reaches 4,500 nits. With a 240Hz touch sampling rate and a 2,800Hz instantaneous touch sampling rate, the screen is also hyper-accurate and responsive, giving users an edge in both browsing and gaming.
Additionally, Wet & Oily Finger Touch Recognition 2.0 keeps the screen responsive even in heavy rain, with sweaty hands, or when hands contact fat, oil, or lubricants. You can also control your phone effortlessly inside a waterproof pouch while showering or enjoying water activities.
Bold Life, with Practical AI
The TECNO POVA 8 Pro 5G Tonino Lamborghini Limited Edition delivers practical AI functions for real-world benefits, from productivity to health.
AI YouTube Summary recognizes copied YouTube links and turns lengthy videos into clear notes with timeline markers, key points and structured summaries. All-Scenario Noise Cancellation automatically identifies the “voiceprint” of the intended speaker and filters out all other noises — including other human voices in the background. Users can switch among modes to adapt to their environment, from calls, recordings, to meetings, and ensure their voice cuts through the background noise of busy commutes or crowded offices.
AI LightMaster 2.0 enhances photography by removing unwanted flares, reflections, and shadows, ensuring photos are polished and ready for confident sharing. With AI Health** in select markets, users can measure key health metrics including blood pressure, blood oxygen, heart rate and respiration with only a face scan.
These AI functions join a broader suite of smart tools, from AI Writing for rewriting, polishing, and summarizing text, to the AI Theme Generator that creates completely customized phone themes.
Bold Perseverance, on All Occasions
The TECNO POVA 8 Pro 5G Tonino Lamborghini Limited Edition is engineered to endure. Corning Gorilla Glass 7i, industry-leading IP69/69K/68/66 dust and water resistance and SGS 5-Star Drop Resistance certification suggest the device is reliable against the elements: from scratches, sand and rain to drops.
To ensure a secure and smooth experience for years to come, the device runs on HiOS 16 and will receive two major Android OS upgrades and three years of security patches. TECNO also offers three years of free 256 GB cloud storage, and in select markets, eligible users can access a 3-month Google AI Plus (2 TB) extended trial at no charge. The trial brings more access to Google AI and 2 TB of cloud storage***.
*FPS, 1.5K resolution, and HDR support may vary by game, version, settings, and actual usage. All game names and trademarks belong to their respective owners.
** For reference purposes only and is not a medical device.
** For more information on eligibility of the Google AI Plus trial, please check the terms and conditions.
– END –
About TECNO
As a global innovative technology brand with operations in over 70 markets, TECNO has been committed to revolutionizing the digital experience in global emerging markets, relentlessly pushing for the perfect integration of contemporary, aesthetic design with the latest technologies and AI. TECNO offers a wide range of smartphones, smart wearables, laptops and tablets, smart gaming, HiOS operating systems and smart home products. Guided by its brand essence of “Stop At Nothing”, TECNO is committed to unlocking the newest technologies and AI-powered new experiences for forward-looking individuals, inspiring them to never stop pursuing their best selves and their best futures. For more information, please visit TECNO’s official site: www.tecno-mobile.com.
About Tonino Lamborghini
Since 1981, Tonino Lamborghini brand has stood out for innovative design and exclusive luxury. With a product range spanning watches, eyewear, fashion accessories, hospitality, real estate, total living, luxury beverages and electric golf carts, the brand embodies Italian elegance and sophistication.
For more information: www.lamborghini.it
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SOURCE TECNO
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DAREU Unveils a New Era of Modular Gaming Hardware at IFA 2026
Published
9 minutes agoon
September 4, 2026By
BERLIN, Sept. 4, 2026 /PRNewswire/ — DAREU, a global gaming and professional peripherals brand, will unveil its latest generation of modular gaming hardware at IFA 2026, taking place September 4–8 at Messe Berlin. At Booth H7.2b-101, DAREU will showcase an expanded portfolio of gaming keyboards, wireless keyboards and high-performance gaming mice, highlighting its focus on performance, modularity and personalization.
Flexible Platforms for Modern Gaming and Productivity
The FLEX 75/87/98 Series expands DAREU’s gaming keyboard portfolio across 75%, TKL and 98% layouts. Gasket-mounted construction, hot-swappable switches, RGB illumination and tri-mode connectivity provide a versatile platform for gaming, productivity and creative workflows. With multi-mode connectivity, the series also delivers the flexibility expected from a modern wireless keyboard, allowing users to transition seamlessly between different environments.
For competitive applications, the Ultra 75/68 Series incorporates magnetic-switch technology with up to 8K polling and 0.01 mm adjustable Rapid Trigger, enabling highly responsive actuation and precise input control for fast-paced gameplay.
Modularity Beyond the Keyboard
DAREU extends its modular design philosophy to the gaming mouse category with the Ultra 07, featuring magnetic interchangeable components and an adjustable rear shell. This architecture allows users to personalize configuration and grip characteristics according to individual preferences.
The upcoming Ultra 09 advances this approach through lightweight engineering and innovative power management. Its magnesium-alloy shell, weighing approximately 51g, PAW3950 sensor and up to 8K polling are complemented by a rechargeable detachable battery, offering greater flexibility for wireless gaming and extended sessions.
Engineering the Future of Personalized Gaming
Together, DAREU’s IFA 2026 portfolio reflects a broader development philosophy that brings modular architecture, precision engineering and industrial design into a unified gaming ecosystem. From customizable gaming keyboards and wireless keyboards to high-performance gaming mice, DAREU gives users greater control over configuration, ergonomics and performance while continuing to explore new possibilities in personalized gaming hardware.
As part of its global expansion strategy, DAREU is seeking distributors, channel partners and strategic business partners worldwide. Industry professionals are invited to visit Booth H7.2b-101 during IFA 2026.
About DAREU
Founded in 2006, DAREU is a global gaming and professional peripherals brand specializing in mechanical and magnetic-switch keyboards and gaming mice. Guided by “Dare to Be Yourself,” DAREU integrates engineering, design and innovation to develop high-performance products for gamers and professionals worldwide.
View original content to download multimedia:https://www.prnewswire.co.uk/news-releases/dareu-unveils-a-new-era-of-modular-gaming-hardware-at-ifa-2026-302864572.html
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