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 %
View original content to download multimedia:https://www.prnewswire.com/news-releases/blackbaud-announces-2024-second-quarter-results-302210142.html
SOURCE Blackbaud
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GeoComm Expands Indoor Mapping Delivery Through Partnership with Map I.T.
Published
53 minutes agoon
September 4, 2026By
Partnership gives organizations a more scalable path to turn existing building records into usable indoor GIS data.
ST. CLOUD, Minn. and CHARLESTON, S.C., Sept. 4, 2026 /PRNewswire/ — GeoComm, a leader in public safety grade location intelligence, and Map I.T. today announced a partnership designed to help organizations more efficiently collect existing conditions and transform floorplans and building records into structured, operational indoor GIS data.
Organizations often have valuable building information locked in paper floorplans, scanned images, PDFs, CAD files, and other formats that are difficult to use within modern mapping, safety, and operational systems. Converting those materials or creating new floor plans into usable indoor GIS data can require multiple stages of preparation, conversion, quality review, and coordination.
Through the partnership, GeoComm and Map I.T. combine complementary strengths to give customers a coordinated path from existing building records to operational indoor maps. Map I.T. contributes specialized experience in LiDAR laser scanning and reality capture, floor plan and 3D model creation and preparation, and GIS data development, while GeoComm brings public safety grade location intelligence expertise, data quality standards, and operational context. As part of GeoComm’s broader services ecosystem strategy, the companies can align the right expertise and resources with each engagement based on the customer’s needs, providing a flexible approach that is not limited to a single delivery model.
“No single delivery model fits every indoor mapping project,” said Nate Ekdahl, Director of Services Strategy, GeoComm. “Our strategy is to combine GeoComm’s expertise with the right partner capabilities for each engagement, giving customers more flexibility to address projects of different sizes, source materials, and timelines while maintaining a consistent focus on quality and operational outcomes.”
By coordinating capabilities across the project lifecycle, GeoComm and Map I.T. can help customers reduce fragmented handoffs, address larger or more complex initiatives, and maintain consistent expectations around data quality and operational usability.
Through the partnership, customers can:
Create new floor plans and map critical assetsTransform paper, PDF, CAD, and other building records into structured indoor GIS data.Scale indoor mapping initiatives across multiple buildings, campuses, and sites.Reduce fragmented handoffs across preparation, conversion, and GIS development activities.Align delivery resources with project requirements, timelines, and scale.Establish usable indoor maps that support safety and operational workflows.
“By partnering with GeoComm, Map I.T. is combining our reality capture and mapping expertise with their specialized public safety knowledge to provide clients with a seamless project experience and industry-leading deliverables,” said Zachary Jaffe, Founder and CEO, Map I.T. “We look forward to delivering these enhanced capabilities through our collaborative approach.”
The partnership strengthens GeoComm’s growing services ecosystem and provides organizations with a more flexible and scalable way to address indoor mapping needs — bringing together the capabilities required to turn existing building information into trusted location intelligence that can support real-world operations.
About GeoComm
GeoComm provides public safety grade location data and maps that technology partners embed to bring operational context and trusted location intelligence into critical workflows. Through indoor and outdoor mapping, flexible integrations, and actively maintained data, GeoComm helps partners strengthen their platforms with better operational context and shared situational awareness. Together, these capabilities help partners deliver the shared operational picture agencies, organizations, and responders’ need, supporting faster, more informed decisions across critical operations. Learn more at geocomm.com
About Map I.T.
Map I.T. is a geospatial and GIS consulting firm specializing in indoor and outdoor mapping solutions for public safety, emergency response, and facility operations. We leverage LiDAR laser scanning, 360° panoramic imagery, and other reality-capture technologies to create accurate digital representations of the built environment. We transform field-collected data into detailed floor plans, 3D models, indoor maps, and critical asset inventories, then deploy that information through GIS to make it accessible and actionable. Our expertise lies in collecting, compiling, packaging, and delivering spatial data to the people who need it most, when time is of the essence. Learn more at map-it-llc.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/geocomm-expands-indoor-mapping-delivery-through-partnership-with-map-it-302869699.html
SOURCE GeoComm, Inc
Technology
Party Expert Myla Tebbutt Explains Why Inflatable Obstacle Courses Are Great for Teens in HelloNation
Published
53 minutes agoon
September 4, 2026By
The article explains how inflatable obstacle courses combine active play, social interaction, and structured design to keep teens engaged at events.
DALLAS, Sept. 4, 2026 /PRNewswire/ — Why are inflatable obstacle courses popular for teen events in Dallas? That question is answered in a HelloNation article featuring insights from Party Expert Myla Tebbutt of Bounce N More in Dallas, TX. The feature explores how inflatable obstacle courses combine active engagement, safe design, and social interaction to create exciting experiences that appeal to older children and teenagers. Tebbutt explains that when properly supervised and installed, these inflatables balance challenge and fun in a structured way that keeps teens moving and connected throughout the event.
The HelloNation article begins by noting that inflatable obstacle courses add more variety and energy to gatherings than traditional bounce houses. Their layouts encourage climbing, crawling, sliding, and racing through a sequence of challenges that stimulate both coordination and endurance. Party Expert Myla Tebbutt explains that this form of structured play keeps teens engaged longer because the activity changes continuously. Each section requires different movements, preventing the monotony that can occur with single-feature inflatables. Teens enjoy repeating the course, competing for time, and cheering for friends, which naturally builds enthusiasm and friendly competition.
Social interaction is a major factor in the success of inflatable obstacle courses at Dallas teen events. The courses allow participants to race side-by-side, encouraging teamwork and lighthearted rivalry. Spectators can easily watch the progress of their friends, creating a lively, supportive environment. According to the HelloNation feature, these setups foster both group participation and peer encouragement, helping teens stay active while maintaining the social connection that defines many youth gatherings. Obstacle courses provide movement and conversation in equal measure, promoting community and engagement without pressure.
Flexibility also makes inflatable obstacle courses valuable for event planning. While they appeal primarily to teens, their design accommodates a range of ages and ability levels. Older children can join in without disrupting the flow, and the built-in structure helps organizers manage lines and participation safely. Limiting the number of participants on the course at a time prevents overcrowding, maintaining a steady pace that works well for both small and large groups. Event planners across Dallas appreciate how this natural pacing supports order and keeps energy levels balanced.
The article highlights that safety remains central to inflatable obstacle course design. Cushioned surfaces reduce impact during climbing and sliding, while enclosed lanes guide participants along a safe, predictable path.
Physical challenge is another reason inflatable obstacle courses stand out at Dallas teen events. The layout offers difficulty without risk, encouraging teens to test their balance and coordination. Short climbing walls, squeeze tunnels, and controlled slides all contribute to a sense of progress and accomplishment. Tebbutt explains that these challenges provide just enough resistance to keep participants engaged while maintaining an atmosphere of fun. Each successful run through the course gives teens a sense of confidence and enjoyment, reinforcing the appeal of active engagement.
Indoor and outdoor adaptability adds further value. Inflatable obstacle courses can fit inside gyms, auditoriums, and recreational spaces during cooler or rainy seasons. During warmer months, they transition easily to outdoor parks, fields, and school grounds. Installation crews in Dallas review ceiling height, floor type, and available power to confirm compatibility with each venue. This flexibility allows event organizers to schedule activities year-round without worrying about weather disruptions.
Another advantage discussed in the HelloNation article is how obstacle courses help manage energy at large gatherings. Teens often bring high levels of enthusiasm that can become difficult to channel during long events. The structured design of an obstacle course provides a focused activity that transforms that energy into positive movement. After completing a run, participants leave smiling, comparing times, and encouraging others. The result is an upbeat environment that keeps everyone engaged while minimizing downtime or restlessness.
Durability also contributes to the reliability of inflatable obstacle courses for Dallas teen events. Units built for older participants feature reinforced seams, thick vinyl materials, and heavier stitching to support faster movement and higher weight capacity. Professional crews inspect each unit before delivery to ensure all surfaces remain firm and responsive. This attention to equipment maintenance supports consistent performance and helps teens feel secure as they move through each obstacle.
The HelloNation feature concludes that inflatable obstacle courses deliver an ideal combination of structured play and social engagement. They challenge teens physically while promoting teamwork, laughter, and community. With professional supervision, safe design, and thoughtful event planning, these inflatables provide dependable entertainment that fits a wide range of Dallas gatherings. Whether at school events, church functions, or graduation celebrations, obstacle courses offer a safe, energetic centerpiece that keeps teens active and connected.
Why Inflatable Obstacle Courses Are Great for Teens features insights from Myla Tebbutt, Party Expert of Dallas, TX, in HelloNation.
About HelloNation
HelloNation is America’s Good News Network, a premier media platform built on the idea that good news travels faster when real people tell real stories. Through its community-focused publications and innovative “edvertising” approach, HelloNation delivers content that informs, inspires, and spotlights the leaders making a meaningful impact in their communities.
View original content to download multimedia:https://www.prnewswire.com/news-releases/party-expert-myla-tebbutt-explains-why-inflatable-obstacle-courses-are-great-for-teens-in-hellonation-302870050.html
SOURCE HelloNation
Technology
xTool Brings “The Human Age of Making” to IFA 2026, Empowering a New Generation of Creators
Published
53 minutes agoon
September 4, 2026By
BERLIN, Sept. 4, 2026 /PRNewswire/ — At IFA 2026, xTool will present the European debut of its next-generation xTool X1 professional laser, alongside the O1 Omni Printer and M2 Colour Craft Laser, two new products launched in Q2, demonstrating how digital fabrication is evolving from a specialist technology into a creative tool for a much broader generation of makers.
Building on the momentum of its Berlin brand conference, xTool will use IFA 2026 to put the spotlight not simply on what machines can do, but on what people can create with them.
At the heart of the xTool’s vision is a simple belief: the next era of making will be defined by human creativity, amplified by technology that is increasingly accessible, intuitive and capable.
As IFA 2026 explores “The Future Is Now”, xTool will demonstrate how advances in hardware, software and connected creative ecosystems are lowering the barriers between imagination and physical creation.
From professional-grade capability to everyday creativity
For years, advanced digital fabrication technologies have largely been associated with professional makers, specialist workshops and industrial environments. xTool is challenging that model by bringing increasingly powerful capabilities into consumer and prosumer spaces.
The company’s approach is built around three principles:
Accessibility, lowering the technical and financial barriers to advanced creation. Intuitiveness, making complex processes easier to understand and use. Expressiveness, giving people greater freedom to transform ideas, designs and imagination into physical creations.
This philosophy is reflected across xTool’s expanding portfolio, which combines hardware, software, AI-powered creation tools and a connected content ecosystem.
xTool X1 laser makes its first European debut at IFA 2026
One of the key highlights at IFA 2026 will be the European debut of the xTool X1, xTool’s next-generation all-in-one laser platform.
Designed around the philosophy “All the Best Lasers, Built into One,” the X1 addresses one of the long-standing limitations of digital fabrication: the fragmentation of different laser technologies across separate machines.
Its new architecture combines high-speed engraving, large-format processing and expandable multi-laser capabilities within a single platform.
At its core is Hybrid Motion™, which combines gantry motion with high-speed galvo scanning to bring speed and scale together in one system. Laser Swap™ further expands the platform across different laser sources and materials, creating an architecture designed to evolve alongside users’ creative ambitions.
The X1 represents xTool’s vision for the future of desktop fabrication: moving away from fragmented, single-purpose machines towards more integrated and scalable creation platforms.
IFA 2026 visitors will be among the first in Europe to see the xTool X1 in person. Further product details will be revealed at a later stage.
xTool O1 UV printer: Breaking down the boundaries between materials
Another key highlight at IFA will be the xTool Omni 1 UV Printer, whose launch reflects growing demand for more versatile digital creation tools.
The O1 Omni generated more than $20 million in first-day revenue, with more than 6,000 units sold, demonstrating strong early demand for a new generation of integrated fabrication tools.
By combining UV, DTG (direct-to-garment), DTF (direct-to-film) and UV DTF technologies within a single desktop ecosystem, the O1 Omni breaks down the traditional divide between rigid-material customisation and textile printing.
For creators, this means fewer boundaries between an idea, a material and the final object they want to make.
M2 Colour Craft Laser: Making advanced creation more accessible
Alongside its latest innovations, xTool will showcase the M2 Colour Craft Laser, designed to make advanced laser technology accessible to a broader generation of creators.
Combining colour printing, laser cutting and engraving in one device, the M2 supports more than 300 materials and a wide range of applications, from personalised crafts and home projects to creative side businesses.
Its integrated CMYK printing, dual cameras and ACS™ (Auto-Creation System) simplify the creative process, while its enclosed Class 1 design makes it suitable for home studios.
The M2 reflects a broader ambition at xTool: bringing digital fabrication into the mainstream of creative tools and giving more people the ability to move from an idea to something they can hold in their hands.
The future of making is human
As technology continues to reshape the creative landscape, xTool believes the most important evolution is not technological alone.
It is human.
The Human Age of Making is about giving more people the freedom and capability to create, personalise, experiment and bring ideas into the physical world.
About xTool
xTool is a global premium consumer-tech brand dedicated to empowering digital-to-physical creation. xTool provides a comprehensive ecosystem of laser-based personal creative tools, material printers, user-friendly software, accessories and consumables.
Through these innovations, xTool empowers people to turn imagination into meaningful creations that deliver emotional fulfilment, commercial opportunity and personal achievement.
Discover more at xTool.com.
View original content to download multimedia:https://www.prnewswire.co.uk/news-releases/xtool-brings-the-human-age-of-making-to-ifa-2026-empowering-a-new-generation-of-creators-302870054.html
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