Technology

Blackbaud Announces 2024 Fourth Quarter and Full Year Results

Published

1 year ago

February 18, 2025

CHARLESTON, S.C., Feb. 18, 2025 /PRNewswire/ — Blackbaud (NASDAQ: BLKB), the leading provider of software for powering social impact, today announced financial results for its fourth quarter and full year ended December 31, 2024.

“2024 is a reflection of our successful work in solidifying Blackbaud’s attractive and improving financial model over the past five years where our revenue, cash flows and Rule of 40 metrics have all improved significantly,” said Mike Gianoni, president, CEO and vice chairman of the board of directors, Blackbaud. “This success is the result of a proven operating plan, continuous product innovation, refinement of our go-to-market programs, a focus on efficiencies and effectiveness, and a steadfast dedication to not only powering social impact but centering it in all we do with both our customers and employees. Blackbaud’s multi-year trajectory will also be built on these tenets, and when combined with our future opportunities, we see a path to becoming a Rule of 45 company by 2030.”

Fourth Quarter 2024 Results Compared to Fourth Quarter 2023 Results:

GAAP total revenue was $302.2 million, up 2.4% and non-GAAP organic revenue increased 3.2%.GAAP recurring revenue was $296.2 million, up 3.1% and represented 98% of total revenue. Non-GAAP organic recurring revenue increased 3.1%.GAAP loss from operations was $367.1 million, inclusive of aggregate pre-tax EVERFI impairment and disposition charges of $405.4 million, with GAAP operating margin of (121.5)%, a decrease of 13,250 basis points.Non-GAAP income from operations was $82.7 million, with non-GAAP operating margin of 27.4%, a decrease of 100 basis points.GAAP net loss was $330.8 million, inclusive of aggregate pre-tax EVERFI impairment and disposition charges of $405.4 million, with GAAP diluted loss per share of $6.74, down $6.84 per share.Non-GAAP net income was $54.4 million, with non-GAAP diluted earnings per share of $1.08, down $0.06 per share.Non-GAAP adjusted EBITDA was $102.2 million, up $3.0 million, with non-GAAP adjusted EBITDA margin of 33.8%, an increase of 20 basis points.GAAP net cash provided by operating activities was $73.6 million, an increase of $76.9 million, with GAAP operating cash flow margin of 24.3%, an increase of 2,540 basis points.Non-GAAP free cash flow was $56.5 million, an increase of $75.1 million, with non-GAAP free cash flow margin of 18.7%, an increase of 2,500 basis points.Non-GAAP adjusted free cash flow was $57.3 million, an increase of $21.0 million, with non-GAAP adjusted free cash flow margin of 19.0%, an increase of 670 basis points.

“During 2024 we achieved several significant milestones, including the divestment of EVERFI and the finalization of nearly all of our outstanding security litigation efforts,” said Tony Boor, executive vice president and CFO, Blackbaud. “By putting these items behind us, the company is 100% focused on providing our customers and prospects powerful solutions to allow them to spend more time on what matters to them: making a concrete difference through their vital social impact work and easing their administrative burdens.”

“To our existing and prospective shareholders, we remain committed to delivering an attractive financial investment balanced between top-line growth, profitability, and cash flow, all of which are supported by our proven operating plan. In 2024, we repurchased 10% of our outstanding stock and if you add back in net share settlement on employee stock compensation, the number moves to 11%. We plan to continue to be purposeful about buying back our stock in 2025, anticipating buying back 3% to 5% of our total outstanding shares as we look to deliver on Blackbaud’s compelling investment thesis.”

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 announced the sale of its EVERFI Inc. business to a private investment firm unaffiliated with Blackbaud.Blackbaud appointed Bradley Pyburn, former chief of staff of U.S. Cyber Command, to its board of directors.At its semi-annual Product Update Briefings in November, Blackbaud showcased recent innovation and future roadmap direction across its suite of solutions, diving further into the six waves of innovation the company announced at bbcon 2024. Blackbaud celebrated GivingTuesday, kicking off the global giving holiday at Nasdaq and also supporting customers through a Giving Glow-Up Giveaway contest for Blackbaud Donation Form users.For the fourth consecutive year, Blackbaud was named to Newsweek’s list of America’s Most Responsible Companies, which recognizes U.S.-based companies for their commitment to making a positive global impact.The company announced that its 2025 annual major gift will support the Center for Disaster Philanthropy (CDP), a nonprofit organization that helps individuals, foundations and corporations increase the effectiveness of their philanthropic response to disasters and humanitarian crises.Blackbaud marked five years of its Social Good Startup Program, which has now supported 77 startups with a 92% success rate, providing cutting edge social impact technology to the sector. The program welcomed its 10th cohort in January. Blackbaud announced an industry-leading partnership with True Impact® to bring predictive, outcome-based impact data into Blackbaud Impact Edge™, the company’s AI-powered social impact reporting and storytelling solution for YourCause® from Blackbaud® corporate customers.The company rolled out Blackbaud Donation Forms in Australia and New Zealand, with its Optimized Donation Forms now available for Raiser’s Edge NXT® users and its Standard and Optimized Donation Forms now available for Blackbaud CRM™ users in the region.

Visit www.blackbaud.com/newsroom for more information about Blackbaud’s recent highlights.

Full-Year 2024 Results Compared to Full-Year 2023 Results:

GAAP total revenue was $1.2 billion, up 4.5% and non-GAAP organic revenue increased 5.2%.GAAP recurring revenue was $1.1 billion, up 5.4% and represented 98% of total revenue. Non-GAAP organic recurring revenue increased 5.4%.GAAP loss from operations was $270.5 million, inclusive of aggregate pre-tax EVERFI impairment and disposition charges of $405.4 million, with GAAP operating margin of (23.4)%, a decrease of 2,740 basis points.Non-GAAP income from operations was $320.1 million, with non-GAAP operating margin of 27.7%, an increase of 110 basis points.GAAP net loss was $283.2 million, inclusive of aggregate pre-tax EVERFI impairment and disposition charges of $405.4 million, with GAAP diluted loss per share of $5.60, down $5.63 per share.Non-GAAP net income was $210.7 million, with non-GAAP diluted earnings per share of $4.07, up $0.09 per share.Non-GAAP adjusted EBITDA was $388.9 million, up $32.4 million, with non-GAAP adjusted EBITDA margin of 33.7%, an increase of 150 basis points.GAAP net cash provided by operating activities was $296.0 million, an increase of $96.3 million, with GAAP operating cash flow margin of 25.6%, an increase of 750 basis points.Non-GAAP free cash flow was $228.8 million, an increase $93.3 million, with non-GAAP free cash flow margin of 19.8%, an increase of 750 basis points.Non-GAAP adjusted free cash flow was $244.7 million, an increase of $31.2 million, with non-GAAP adjusted free cash flow margin of 21.2%, an increase of 190 basis points.

Financial Outlook

Blackbaud today announced its 2025 full year financial guidance:

GAAP revenue of $1.115 billion to $1.125 billionOrganic revenue growth at constant currency of 4.5% to 5.4%Non-GAAP adjusted EBITDA margin of 34.9% to 35.9%Non-GAAP earnings per share of $4.16 to $4.35Non-GAAP adjusted free cash flow of $185 million to $195 million

Included in its 2025 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 $65 million to $69 millionFully diluted shares for the year are expected to be approximately 48.5 million to 49.5 millionCapital expenditures for the year are expected to be approximately $55 million to $65 million, including approximately $50 million to $60 million of capitalized software 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 2025, Blackbaud currently expects net cash outlays of $3 million to $4 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 December 31, 2024, Blackbaud had approximately $645 million remaining under its common stock repurchase program that was expanded, replenished and reauthorized in July 2024.

Conference Call Details

What:

Blackbaud’s Fourth Quarter and Full Year 2024 Conference Call

When:

February 18, 2025

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, India 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, if any, 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; Security Incident-related costs; and impairment and disposition charges.

Blackbaud, Inc.

Consolidated Balance Sheets

(Unaudited)

(dollars in thousands, except per share amounts)

December 31,
2024

December 31,
2023

Assets

Current assets:

Cash and cash equivalents

$ 67,628

$ 31,251

Restricted cash

741,884

697,006

Accounts receivable, net of allowance of $5,228 and $6,907 at December 31, 2024 and December 31, 2023, respectively

83,539

101,862

Customer funds receivable

1,970

353

Prepaid expenses and other current assets

79,418

99,285

Total current assets

974,439

929,757

Property and equipment, net

91,926

98,689

Operating lease right-of-use assets

26,554

36,927

Software and content development costs, net

148,319

160,194

Goodwill

1,052,506

1,053,738

Intangible assets, net

132,881

581,937

Other assets

67,221

51,037

Total assets

$ 2,493,846

$ 2,912,279

Liabilities and stockholders’ equity

Current liabilities:

Trade accounts payable

$ 50,810

$ 25,184

Accrued expenses and other current liabilities

77,453

64,322

Due to customers

742,340

695,842

Debt, current portion

23,875

19,259

Deferred revenue, current portion

359,529

392,530

Total current liabilities

1,254,007

1,197,137

Debt, net of current portion

1,051,110

760,405

Deferred tax liability

9,518

93,292

Deferred revenue, net of current portion

2,015

2,397

Operating lease liabilities, net of current portion

34,186

40,085

Other liabilities

4,796

10,258

Total liabilities

2,355,632

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, 70,943,373 and 69,188,304 shares issued at December 31, 2024 and December 31, 2023, respectively; 49,245,588 and 53,625,440 shares outstanding at December 31, 2024 and December 31, 2023, respectively

Additional paid-in capital

1,291,442

1,203,012

Treasury stock, at cost; 21,697,785 and 15,562,864 shares at December 31, 2024 and December 31, 2023, respectively

(1,060,348)

(591,557)

Accumulated other comprehensive loss

(4,869)

(1,688)

(Accumulated deficit) retained earnings

(88,082)

198,869

Total stockholders’ equity

138,214

808,705

Total liabilities and stockholders’ equity

$ 2,493,846

$ 2,912,279

Blackbaud, Inc.

Consolidated Statements of Comprehensive Loss

(Unaudited)

(dollars in thousands, except per share amounts)

Three months ended
December 31,

Years ended
December 31,

2024

2023

2024

2023

Revenue

Recurring

$ 296,202

$ 287,381

$ 1,129,114

$ 1,071,520

One-time services and other

6,030

7,630

26,381

33,912

Total revenue

302,232

295,011

1,155,495

1,105,432

Cost of revenue

Cost of recurring

132,944

127,897

494,588

470,455

Cost of one-time services and other

4,925

7,938

21,704

31,733

Total cost of revenue

137,869

135,835

516,292

502,188

Gross profit

164,363

159,176

639,203

603,244

Operating expenses

Sales, marketing and customer success

50,099

52,120

197,499

212,158

Research and development

39,348

38,602

160,586

153,304

General and administrative

35,881

35,356

142,723

189,938

Amortization

817

784

3,541

3,139

EVERFI disposition

405,360

—

405,360

—

Total operating expenses

531,505

126,862

909,709

558,539

(Loss) income from operations

(367,142)

32,314

(270,506)

44,705

Interest expense

(15,503)

(8,473)

(55,634)

(39,922)

Other income, net

4,895

2,414

14,549

12,861

(Loss) income before (benefit) provision for income taxes

(377,750)

26,255

(311,591)

17,644

Income tax (benefit) provision

(43,207)

20,856

(24,640)

15,824

Net (loss) income

$ (334,543)

$ 5,399

$ (286,951)

$ 1,820

(Loss) earnings per share

Basic

$ (6.82)

$ 0.10

$ (5.68)

$ 0.03

Diluted

$ (6.82)

$ 0.10

$ (5.68)

$ 0.03

Common shares and equivalents outstanding

Basic weighted average shares

49,051,396

52,697,294

50,560,538

52,546,406

Diluted weighted average shares

49,051,396

54,439,689

50,560,538

53,721,342

Other comprehensive income (loss)

Foreign currency translation adjustment

$ (8,439)

$ 4,630

$ (2,822)

$ 5,049

Unrealized gain (loss) on derivative instruments, net of tax

10,457

(14,459)

(359)

(15,675)

Total other comprehensive income (loss)

2,018

(9,829)

(3,181)

(10,626)

Comprehensive loss

$ (332,525)

$ (4,430)

$ (290,132)

$ (8,806)

Blackbaud, Inc.

Consolidated Statements of Cash Flows

(Unaudited)

Years ended
December 31,

(dollars in thousands)

2024

2023

Cash flows from operating activities

Net (loss) income

$ (286,951)

$ 1,820

Adjustments to reconcile net (loss) income to net cash provided by operating activities:

Depreciation and amortization

121,665

109,487

Provision for credit losses and sales returns

4,932

4,500

Stock-based compensation expense

104,968

127,762

Deferred taxes

(85,012)

(24,368)

Amortization of deferred financing costs and discount

2,540

1,775

Loss on disposition of businesses

16,847

—

EVERFI impairment charges

390,204

—

Other non-cash adjustments

2,462

5,023

Changes in operating assets and liabilities, net of acquisition and disposal of businesses:

Accounts receivable

4,729

(3,237)

Prepaid expenses and other assets

5,208

16,851

Trade accounts payable

28,336

(18,576)

Accrued expenses and other liabilities

(11,419)

(30,275)

Deferred revenue

(2,541)

8,872

Net cash provided by operating activities

295,968

199,634

Cash flows from investing activities

Purchase of property and equipment

(7,443)

(4,685)

Capitalized software and content development costs

(59,757)

(59,443)

Purchase of net assets of acquired companies, net of cash and restricted cash acquired

—

(13)

Cash (used) received in disposition of business

(1,179)

—

Other investing activities

(5,029)

(250)

Net cash used in investing activities

(73,408)

(64,391)

Cash flows from financing activities

Proceeds from issuance of debt

1,441,400

293,200

Payments on debt

(1,144,709)

(374,595)

Debt issuance costs

(6,458)

—

Employee taxes paid for withheld shares upon equity award settlement

(56,828)

(35,867)

Change in due to customers

46,957

(6,812)

Change in customer funds receivable

(1,679)

(60)

Purchase of treasury stock

(418,034)

(18,831)

Net cash used in financing activities

(139,351)

(142,965)

Effect of exchange rate on cash, cash equivalents and restricted cash

(1,954)

2,048

Net increase (decrease) in cash, cash equivalents and restricted cash

81,255

(5,674)

Cash, cash equivalents and restricted cash, beginning of year

728,257

733,931

Cash, cash equivalents and restricted cash, end of year

$ 809,512

$ 728,257

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)

December 31,
2024

December 31,
2023

Cash and cash equivalents

$ 67,628

$ 31,251

Restricted cash

741,884

697,006

Total cash, cash equivalents and restricted cash in the statement of cash flows

$ 809,512

$ 728,257

Blackbaud, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(Unaudited)

(dollars in thousands, except per share amounts)

Three months ended
December 31,

Years ended
December 31,

2024

2023

2024

2023

GAAP Revenue

$ 302,232

$ 295,011

$ 1,155,495

$ 1,105,432

GAAP gross profit

$ 164,363

$ 159,176

$ 639,203

$ 603,244

GAAP gross margin

54.4 %

54.0 %

55.3 %

54.6 %

Non-GAAP adjustments:

Add: Stock-based compensation expense

4,026

4,416

14,092

16,658

Add: Amortization of intangibles from business combinations

12,988

13,099

56,957

52,463

Add: Employee severance

—

797

Subtotal

17,014

17,515

71,049

69,918

Non-GAAP gross profit

$ 181,377

$ 176,691

$ 710,252

$ 673,162

Non-GAAP gross margin

60.0 %

59.9 %

61.5 %

60.9 %

GAAP (loss) income from operations

$ (367,142)

$ 32,314

$ (270,506)

$ 44,705

GAAP operating margin

(121.5) %

11.0 %

(23.4) %

4.0 %

Non-GAAP adjustments:

Add: Stock-based compensation expense

28,538

32,094

104,968

127,762

Add: Amortization of intangibles from business combinations

13,805

13,883

60,498

55,602

Add: Employee severance

—

5,149

Add: Acquisition and disposition-related costs(1)

1,201

657

6,100

7,456

Add: Security Incident-related costs(2)

918

4,780

13,700

53,426

Add: EVERFI impairment and disposition charges

405,360

—

405,360

—

Subtotal

449,822

51,469

590,626

249,395

Non-GAAP income from operations

$ 82,680

$ 83,783

$ 320,120

$ 294,100

Non-GAAP operating margin

27.4 %

28.4 %

27.7 %

26.6 %

GAAP (loss) income before (benefit) provision for income taxes

$ (377,750)

$ 26,255

$ (311,591)

$ 17,644

GAAP net (loss) income

$ (334,543)

$ 5,399

$ (286,951)

$ 1,820

Shares used in computing GAAP diluted (loss) earnings per share

49,051,396

54,439,689

50,560,538

53,721,342

GAAP diluted (loss) earnings per share

$ (6.82)

$ 0.10

$ (5.68)

$ 0.03

Non-GAAP adjustments:

Add: GAAP income tax (benefit) provision

(43,207)

20,856

(24,640)

15,824

Add: Total non-GAAP adjustments affecting income from operations

449,822

51,469

590,626

249,395

Non-GAAP income before provision for income taxes

72,072

77,724

279,035

267,039

Assumed non-GAAP income tax provision(3)

17,658

15,545

68,364

53,408

Non-GAAP net income

$ 54,414

$ 62,179

$ 210,671

$ 213,631

Shares used in computing non-GAAP diluted earnings per share

50,591,254

54,439,689

51,750,308

53,721,342

Non-GAAP diluted earnings per share

$ 1.08

$ 1.14

$ 4.07

$ 3.98

(1)

Includes noncash impairment charges incurred during the twelve months ended December 31, 2024 and 2023 related to the subleases of our Washington, DC office location, the lease of which was acquired during the EVERFI acquisition.

(2)

Includes Security Incident-related costs incurred during the three and twelve months ended December 31, 2024 of $0.9 million and $13.7 million, respectively, which included approximately $6.8 million in recorded liabilities for loss contingencies, and during the three and twelve months ended December 31, 2023 of $4.8 million and $53.4 million, respectively, which included approximately $1.0 million and $31.0 million, respectively, in recorded 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 the year ended December 31, 2025, we currently expect pre-tax expenses of approximately $2 million to $3 million and cash outlays of approximately $3 million to $4 million for ongoing legal fees related to the Security Incident. In line with our policy, legal fees are expensed as incurred. As of December 31, 2024, we have recorded approximately $0.7 million in aggregate liabilities for loss contingencies 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 for which we have not recorded a liability for a loss contingency as of December 31, 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.

(3)

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 twelve months ended December 31, 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
December 31,

Years ended
December 31,

2024

2023

2024

2023

GAAP revenue(1)

$ 302,232

$ 295,011

$ 1,155,495

$ 1,105,432

GAAP revenue growth

2.4 %

4.5 %

Less: Non-GAAP revenue from divested businesses(2)

—

(2,213)

—

(7,402)

Non-GAAP organic revenue(2)

$ 302,232

$ 292,798

$ 1,155,495

$ 1,098,030

Non-GAAP organic revenue growth

3.2 %

5.2 %

Non-GAAP organic revenue(3)

$ 302,232

$ 292,798

$ 1,155,495

$ 1,098,030

Foreign currency impact on non-GAAP organic revenue(4)

(857)

—

(2,987)

—

Non-GAAP organic revenue on constant currency basis(4)

$ 301,375

$ 292,798

$ 1,152,508

$ 1,098,030

Non-GAAP organic revenue growth on constant currency basis

2.9 %

5.0 %

GAAP recurring revenue

$ 296,202

$ 287,381

$ 1,129,114

$ 1,071,520

GAAP recurring revenue growth

3.1 %

5.4 %

Less: Non-GAAP recurring revenue from divested businesses(2)

—

Non-GAAP organic recurring revenue(3)

$ 296,202

$ 287,381

$ 1,129,114

$ 1,071,520

Non-GAAP organic recurring revenue growth

3.1 %

5.4 %

Non-GAAP organic recurring revenue(2)

$ 296,202

$ 287,381

$ 1,129,114

$ 1,071,520

Foreign currency impact on non-GAAP organic recurring revenue(4)

(843)

—

(2,913)

—

Non-GAAP organic recurring revenue on constant currency basis(4)

$ 295,359

$ 287,381

$ 1,126,201

$ 1,071,520

Non-GAAP organic recurring revenue growth on constant currency basis

2.8 %

5.1 %

(1)

Includes EVERFI revenue of $18.7 million and $26.4 million for the three months ended December 31, 2024 and 2023, respectively, and $85.5 million and $106.9 million for the year ended December 31, 2024 and 2023, respectively.

(2)

Non-GAAP revenue from divested businesses excludes revenue associated with divested businesses in the prior period. 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
December 31,

Years ended
December 31,

2024

2023

2024

2023

GAAP net (loss) income

$ (334,543)

$ 5,399

$ (286,951)

$ 1,820

Non-GAAP adjustments:

Add: Interest, net

13,638

6,208

45,788

31,101

Add: GAAP income tax (benefit) provision

(43,207)

20,856

(24,640)

15,824

Add: Depreciation

3,207

3,142

12,828

13,043

Add: Amortization of intangibles from business combinations

13,805

13,883

60,498

55,602

Add: Amortization of software and content development costs(1)

13,325

12,183

51,240

45,296

Subtotal

768

56,272

145,714

160,866

Non-GAAP EBITDA

$ (333,775)

$ 61,671

$ (141,237)

$ 162,686

Non-GAAP EBITDA margin(2)

(110.4) %

(12.2) %

Non-GAAP adjustments:

Add: Stock-based compensation expense

$ 28,538

$ 32,094

$ 104,968

$ 127,762

Add: Employee severance

—

5,149

Add: Acquisition and disposition-related costs(3)

1,201

657

6,100

7,456

Add: Security Incident-related costs(3)

918

4,780

13,700

53,426

Add: EVERFI impairment and disposition charges

405,360

—

405,360

—

Subtotal

436,017

37,586

530,128

193,793

Non-GAAP adjusted EBITDA

$ 102,242

$ 99,257

$ 388,891

$ 356,479

Non-GAAP adjusted EBITDA margin(4)

33.8 %

33.7 %

Rule of 40(5)

37.0 %

38.9 %

Non-GAAP adjusted EBITDA

$ 102,242

$ 99,257

$ 388,891

$ 356,479

Foreign currency impact on Non-GAAP adjusted EBITDA(6)

(559)

(716)

(1,618)

(7)

Non-GAAP adjusted EBITDA on constant currency basis(6)

$ 101,683

$ 98,541

$ 387,273

$ 356,472

Non-GAAP adjusted EBITDA margin on constant currency basis

33.7 %

33.6 %

Rule of 40 on constant currency basis(7)

36.6 %

38.6 %

(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.

Blackbaud, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures (continued)

(Unaudited)

(dollars in thousands)

Years ended
December 31,

2024

2023

GAAP net cash provided by operating activities

$ 295,968

$ 199,634

GAAP operating cash flow margin

25.6 %

18.1 %

Non-GAAP adjustments:

Less: purchase of property and equipment

(7,443)

(4,685)

Less: capitalized software and content development costs

(59,757)

(59,443)

Non-GAAP free cash flow

$ 228,768

$ 135,506

Non-GAAP free cash flow margin

19.8 %

12.3 %

Non-GAAP adjustments:

Add: Security Incident-related cash flows

15,925

78,010

Non-GAAP adjusted free cash flow

$ 244,693

$ 213,516

Non-GAAP adjusted free cash flow margin

21.2 %

19.3 %

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SOURCE Blackbaud

Technology

VibeBeats Launches AI-Powered Music Streaming Service for Businesses globally

Published

39 minutes ago

July 24, 2026

Vibebeats AI gives cafés, gyms, retailers, bars and hotels fully licensed, AI-curated streaming music for business from any phone, tablet or browser — no hardware, no lock-in contracts, no licensing paperwork — from A$29 a month with a 7-day free trial.

BRISBANE, Australia, July 24, 2026 /PRNewswire-PRWeb/ — VibeBeats Launches AI-Powered Music Streaming Service for Businesses globally

VibeBeats gives venues fully licensed, AI-curated Music at a fraction of the cost — one app, one licence, one platform.

Most venues playing music through consumer apps are doing it on the wrong licence. VibeBeats, an Australian-built, AI-powered streaming music for business platform, has launched across Australia and worldwide to fix that — turning any phone, tablet or browser into a fully licensed venue sound system in under five minutes. One agreement covers commercial performance rights across OneMusic and APRA AMCOS in Australia, and ASCAP, BMI, PRS and other rights bodies internationally — the same platform serving a café in Melbourne or a gym in London.

The “Spotify for business” that actually exists

Every month, thousands of venue owners worldwide search for “Spotify for business” — a product that doesn’t exist. Consumer streaming accounts are licensed for personal use only, leaving businesses that play them exposed under copyright law in Australia and virtually every other market. VibeBeats fills that gap: a business music streaming service where the commercial music rights are handled under one agreement — no separate music licence for business paperwork to manage.

“The number one thing we see is venue owners assuming it’s fine to play their personal Spotify account in the café — most don’t realise a licence fee even applies,” said Damien King, founder of VibeBeats. “It’s not bad intent. Licensing is complex, and when you’re running a small business there are a hundred competing priorities. VibeBeats solves it with one app, one licence, one platform.”

What VibeBeats delivers

Fully Licensed for Commercial Use — one agreement covers the rights that would otherwise involve OneMusic, APRA AMCOS, ASCAP, BMI, PRS and more.No Hardware Required — any phone, tablet or browser becomes the venue sound system — set up in under five minutes.AI-Curated Background Music for Business — stations matched to venue type and time of day, from morning coffee trade to peak gym floor to late-night bar.Smart Scheduling — playlists by daypart, with music that keeps running through connection drops.Multi-Venue Dashboard — manage every location from a single account.Simple Pricing — from A$29 per month per venue with a 7-day free trial — no lock-in contracts.

Pricing and availability

VibeBeats is available now from $29AUD/$20US per month per venue, and globally, with a 7-day free trial at vibebeats.ai. Purpose-built stations are available for cafés, gyms, retail and in-store environments, bars and hotels.

About VibeBeats

VibeBeats is an AI-powered commercial music streaming platform for businesses, offering direct-licensed music for cafés, restaurants, bars, retail stores, gyms and hotels. One agreement covers commercial performance rights that would otherwise involve PROs, OneMusic, APRA AMCOS, ASCAP, BMI, PRS and more. Australian-built and available globally, VibeBeats AI streams to any device with no proprietary hardware required. Learn more at vibebeats.ai.

VibeBeats is not affiliated with Spotify.

Media Contact

Damien King, Vibebeats AI, 61 0408009067, hello@vibebeats.ai, https://vibebeats.ai

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SOURCE Vibebeats AI

Technology

Inside information: Valmet initiates a strategic review to evaluate a potential separation of its two segments

Published

39 minutes ago

July 24, 2026

Valmet Oyj’s stock exchange release (inside information) on July 24, 2026 at 9.01a.m. EEST

ESPOO, Finland, July 24, 2026 /PRNewswire/ — The Board of Directors of Valmet Oyj (“Valmet” or the “Company”) has decided to initiate a strategic review to evaluate a potential separation of its two core businesses, Biomaterial Solutions and Services, and Process Performance Solutions, into two standalone publicly listed companies. The review will focus on assessing whether a separation of the two businesses and their operation as separately listed companies on Nasdaq Helsinki would create additional value for shareholders compared with the current combined structure.

Both Valmet’s core businesses report as separate segments and they have grown into large, mostly independent profitable businesses, each with strong market positions and scale that allow them to succeed independently. With the recent completion of the Severn acquisition taking Process Performance Solutions to approximately EUR 1.7 billion in annual net sales and the renewed operating model now firmly in place, the Board believes this is the right time to assess whether a separation would unlock shareholder value by enabling each business to better realise its full potential.

The Board also notes that the two core businesses operate relatively independently as they serve mainly different customer industries, exhibit distinct business drivers, and have different capital allocation profiles. Biomaterial Solutions and Services is a global technology and lifecycle services business focused on the pulp, board, paper, tissue and energy industries, where its competitive advantage is anchored in a vast installed base, advanced technology, global presence, strong customer references and global services penetration. Process Performance Solutions is a mission-critical automation and flow control business serving a diversified set of industries. Over the past decade, it has evolved from a business primarily focused on pulp and paper into a diversified industrial platform, with close to 70 percent of net sales generated from other industries today.

Based on the Board’s initial assessment, a separation would allow each business to pursue sustainable profitable growth opportunities more independently and efficiently, with the potential for sharper management focus, greater agility, more tailored capital allocation, and more flexible access to external capital to support both organic and inorganic growth. The Board will also assess whether, if implemented, a separation would improve transparency, simplify governance, and allow capital markets to better recognize the full value of both businesses.

Pekka Vauramo, Chair of the Board, said:
“The Board continuously evaluates how to create the greatest long-term value for Valmet’s shareholders. Today, Valmet consists of two strong businesses with distinct markets, growth opportunities and capital allocation needs. Through this review, we will assess whether they can create more value as independent companies than they can together. We will only proceed with a separation if we conclude after detailed analysis that separation is clearly in the best interests of our shareholders.”

Thomas Hinnerskov, President and CEO of Valmet, said:
“Both of our businesses are well positioned, with strong customer relationships and market positions, as well as talented employees. The review reflects the strength and maturity of both businesses, which we have built through strong execution, organic growth and strategic investments into sizeable and successful operations with the scale, capabilities and opportunities to create further value both together and, potentially, as independent companies. This review does not change our commitment to our customers or our strategy. It is a priority for us to preserve the strength of our full offering and the value our customers gain from services, automation and technology working together. Throughout the process, our focus remains on serving our customers and delivering value for their success.”

Although the strategic review has been initiated, there is no guarantee that the review will result in any transaction, including a separation. The Board will only execute or recommend changes to the Group’s structure if clear evidence of enhanced shareholder value creation can be attained. Valmet will provide an update on the review latest in connection with the publication of its full-year 2026 results.

Further information, please contact:

For investors: Pekka Rouhiainen, VP, Investor Relations, Valmet, tel. +358 10 672 0020

For media: Valmet Communications, media@valmet.com

VALMET

Katri Hokkanen
CFO

Pekka Rouhiainen
VP, Investor Relations

DISTRIBUTION:
Nasdaq Helsinki
Major media
www.valmet.com

Valmet is a global technology leader in serving process industries. We work with our customers throughout the lifecycle, delivering cutting-edge technologies and services, as well as mission-critical automation and flow control solutions. Backed by more than 225 years of industrial experience and a global team of 18,500 professionals close to customers, we are uniquely positioned to transform industries toward a regenerative tomorrow.

In 2025, Valmet’s net sales totaled approximately EUR 5.2 billion. Our head office is in Espoo, Finland, and we have experts in approximately 40 countries around the world. Valmet’s shares are listed on Nasdaq Helsinki.

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Technology

Securitas AB Interim Report Q2 2026 | January-June

Published

39 minutes ago

July 24, 2026

STOCKHOLM, July 24, 2026 /PRNewswire/ —

APRIL–JUNE 2026

Total sales MSEK 37 843 (38 564)Organic sales growth 0 percent (5)Adjusted organic sales growth, 3 percent*Real sales growth within technology and solutions 5 percent (4)Operating income before amortization MSEK 2 824 (2 798)Operating margin 7.5 percent (7.3)Adjusted operating margin, 7.6 percent (7.5)*Items affecting comparability (IAC) MSEK –46 (–166) Earnings per share, SEK 2.88 (2.56)Earnings per share before IAC, SEK 2.94 (2.79)Cash flow from operating activities 87 percent (106)

JANUARY–JUNE 2026

Total sales MSEK 74 054 (78 170)Organic sales growth 0 percent (4)Adjusted organic sales growth, 2 percent*Real sales growth within technology and solutions 4 percent (5)Operating income before amortization MSEK 5 283 (5 323)Operating margin 7.1 percent (6.8)Adjusted operating margin, 7.3 percent (7.1)*Items affecting comparability (IAC) MSEK 138 (–243) whereof MSEK 213 (–5) related to divestitures Earnings per share, SEK 5.68 (4.86)Earnings per share before IAC, SEK 5.40 (5.15)Cash flow from operating activities 65 percent (56)Net debt/EBITDA ratio 2.2 (2.4)

*A new key ratio, operating margin adjusted for the government business within SCIS in the process of being closed down, was added as of the second quarter 2025. A new key ratio, organic sales growth adjusted for the same business, was added as of the third quarter 2025. Refer to note 5 for further information.

Comments from the President and CEO

“Continued profitability improvement”

Organic sales growth in the second quarter, adjusted for the close-down of the SCIS government business, was 3 percent. Organic sales growth in North America was supported by both the Guarding and Technology business units, while active portfolio management had a hampering effect on organic sales growth in Europe.

Real sales growth in technology and solutions reached 5 percent in the second quarter, supported by good performance in Technology in North America. Commercial activity remained healthy in the global technology business with strong growth in installation order intake and backlog.

We execute on our strategy with the share of technology and solutions increasing across all segments but we are not fully satisfied with the overall growth. We have built a strong and differentiated technology-led offering and we are intensifying our efforts to commercialize the capabilities we have built.

We delivered an improved adjusted operating margin in the second quarter, reaching 7.6 percent (7.5), driven by both the technology and solutions and the security services business lines. Operating income increased 3 percent and earnings per share 7 percent. For the first six months earnings per share increased 11 percent.

Cash generation was good, corresponding to 87 percent (106) of operating income in the quarter, and 65 percent (56) for the first six months of the year. The net debt to EBITDA ratio was 2.2 (2.4).

THE TRUSTED PARTNER IN INTELLIGENCE-LED SECURITY

Our recently announced 2030 strategy positions Securitas as the trusted partner in intelligence-led security, combining global presence and deep security expertise with advanced data, analytics and technology. By leveraging actionable risk intelligence and a more consultative approach, we aim to move further up the value chain, delivering proactive, insight-driven security and strengthening our role as a strategic advisor to clients. In an increasingly complex risk environment, growing demand for professional security services supports our continued growth and competitive position.

The close-down of the SCIS government business is progressing according to plan and is expected to be concluded by year-end. As no further activities remain, the strategic assessment program was concluded in the second quarter of 2026.

The shift toward technology and solutions continues to drive profitability improvements. We are also strengthening the performance of our security services business and, as of the second quarter of 2026, have completed portfolio management actions related to underperforming contracts in Europe. Going forward, portfolio optimization will continue as part of normal business operations, with a sustained focus on contract profitability.

CREATING LONG-TERM SHAREHOLDER VALUE

In conjunction with the launch of our strategy, we have updated the Group’s financial targets for the period through 2030. The revised targets include a new headline target of achieving 10 percent average annual earnings per share growth over a business cycle, alongside targets for cash flow, leverage and dividend policy. With a strong focus on quality and innovation, we are accelerating our transformation and remain confident in our ability to deliver sustainable earnings growth and create long-term shareholder value.

Magnus Ahlqvist
President and CEO

PRESENTATION OF THE INTERIM REPORT

Analysts and media are invited to participate in a telephone conference on July 24, 2026, at 9.30 a.m. (CEST) where President and CEO Magnus Ahlqvist and CFO Matteo Dall’Ora will present the report and answer questions. The telephone conference will also be audio cast live via Securitas’ website www.securitas.com

To follow the audio cast of the telephone conference via the web, please follow the link
www.securitas.com/en/investors/financial-reports-and-presentations/

A recorded version of the audio cast will be available at www.securitas.com/en/investors/financial-reports-and-presentations/
after the telephone conference.

For further information, please contact:
Micaela Sjökvist, Vice President, Investor Relations +46 76 116 7443

ABOUT SECURITAS

Securitas is a world-leading safety and security solutions partner that helps make your world a safer place. Nine decades of deep experience means we see what others miss. By leveraging technology in partnership with our clients, combined with an innovative, holistic approach, we’re transforming the security industry. With approximately 322 000 employees in 44 markets, we see a different world and create sustainable value for our clients by protecting what matters most – their people and assets.

Group financial targets

Securitas has the following financial targets:

Average annual earnings per share growth of 10 percent over a business cycle, excluding items affecting comparability and adjusted for changes in exchange rates, with a >10 percent operating margin ambition long-termOperating cash flow of 80–90 percent of operating income before amortizationNet debt to EBITDA below 2.5xDividend policy of 50–60 percent of annual net income over a business cycle, with excess capital returned to shareholders once stra-tegic growth priorities are met

Securitas AB (publ.)
P.O. Box 12307, SE-102 28 Stockholm, Sweden
Visiting address:
Lindhagensplan 70
Telephone: +46 10 470 30 00
Corporate registration number: 556302-7241

www.securitas.com

This is information that Securitas AB is obliged to make public pursuant to the EU Market Abuse Regulation.
The information was submitted for publication, through the agency of the contact person set out above,
at 8.00 a.m. (CEST) on Friday, July 24, 2026.

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