CHARLESTON, S.C., July 30, 2019 /PRNewswire/
-- Blackbaud (NASDAQ: BLKB), the world's leading cloud
software company powering social good, today announced financial
results for its second quarter ended June
30, 2019.
"This year marks our 15th year as a Nasdaq listed
public company, which is a testament to the incredible team we have
and their dedication to drive powerful social impact and create
shareholder value," said Mike
Gianoni, Blackbaud's president and CEO. "We continued to
drive market-specific innovation across our vertical markets. Soon
we will be announcing general availability of Blackbaud Church
Management™, part of the Cloud Solution for Faith
Communities, and we continue to see strong market traction with our
new Education Management portfolio, part of the Cloud Solution for
Higher Education™."
Second Quarter 2019 Results Compared to Second Quarter 2018
Results:
- Total GAAP revenue was $225.6
million, up 5.6%, with $208.5
million in GAAP recurring revenue, representing 92.4% of
total GAAP revenue. GAAP recurring revenue was up 8.2%.
- Total non-GAAP revenue was $226.4
million, up 5.5%, with $209.2
million in non-GAAP recurring revenue, representing 92.4% of
total non-GAAP revenue. Non-GAAP recurring revenue was up
8.0%.
- Non-GAAP organic recurring revenue increased 5.0%.
- GAAP income from operations was $13.5
million, with GAAP operating margin of 6.0%, an increase of
70 basis points.
- Non-GAAP income from operations was $43.5 million, with non-GAAP operating margin of
19.2%, a decrease of 190 basis points.
- GAAP net income was $7.1 million,
with GAAP diluted earnings per share of $0.15, up $0.01.
- Non-GAAP net income was $31.9
million, with non-GAAP diluted earnings per share of
$0.66, down $0.03.
- Non-GAAP free cash flow was $38.0
million, a decrease of $3.6
million.
"Execution against our strategic plan drove solid results for
the second quarter as we continue investing to further expand our
selling footprint, drive cloud innovation for our customers and
ensure scalability in our business," said Tony Boor, Blackbaud's executive vice president
and CFO. "We're pleased with the progress of the new sales hires
added to date as they ramp to targeted productivity, and we expect
to continue hiring as we look to grow our full year sales headcount
at an accelerated rate relative to our historical average."
An explanation of all non-GAAP financial measures referenced in
this press release is included below under the heading "Non-GAAP
Financial Measures." A reconciliation of the company's non-GAAP
financial measures to their most directly comparable GAAP measures
has been provided in the financial statement tables included below
in this press release.
Recent Company Highlights:
- Blackbaud Celebrates 15 Years Listed with Nasdaq
- Microsoft Awards Blackbaud 2019 MSUS Partner Award for
Industry-Education
- Emmy® Nominated Actress and Humanitarian
Connie Britton to Headline bbcon
2019
- Pascale Harvie Appointed as President and General
Manager for Blackbaud Operations in Europe
Visit https://www.blackbaud.com/newsroom for more
information about Blackbaud's recent highlights.
Dividend
Blackbaud announced today that its Board of
Directors has declared a third quarter 2019 dividend of
$0.12 per share payable on
September 13, 2019 to stockholders of
record on August 28, 2019.
Financial Outlook
Blackbaud today reaffirmed its 2019
full year financial guidance:
- Non-GAAP revenue of $880 million
to $910 million
- Non-GAAP operating margin of 16.7% to 17.2%
- Non-GAAP diluted earnings per share of $2.11 to $2.28
- Non-GAAP free cash flow of $124
million to $134 million
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.
Adoption of New Lease Accounting Standard
On
January 1, 2019, we adopted Financial
Accounting Standards Board ("FASB") Accounting Standards Update
("ASU") 2016-02, Leases (Topic 842) ("ASU 2016-02"), using the
transition method that allowed us to initially apply the guidance
at the adoption date of January 1,
2019 without adjusting comparative periods presented. ASU
2016-02 requires lessees to record most leases on their balance
sheet but recognize expenses in the income statement in a manner
similar to previous guidance. The impacts of adoption are reflected
in Blackbaud's guidance and the other financial information herein.
We have provided more detailed information regarding the impact of
our adoption of ASU 2016-02 in our Quarterly Report on Form 10-Q
filed with the Securities and Exchange Commission on May 3, 2019.
Conference Call Details
What: Blackbaud's 2019 Second
Quarter Conference Call
When: July 31, 2019
Time: 8:00 a.m. (Eastern Time)
Live Call: 800-289-0462 (US/Canada); passcode 097160
Webcast: Blackbaud's Investor Relations Webpage
About Blackbaud
Blackbaud (NASDAQ: BLKB) is the
world's leading cloud software company powering social good.
Serving the entire social good community—nonprofits, foundations,
companies, education institutions, healthcare organizations and
individual change agents—Blackbaud connects and empowers
organizations to increase their impact through cloud software,
services, expertise and data intelligence. The Blackbaud portfolio
is tailored to the unique needs of vertical markets, with solutions
for fundraising and CRM, marketing, advocacy, peer-to-peer
fundraising, corporate social responsibility, school management,
ticketing, grantmaking, financial management, payment processing
and analytics. Serving the industry for more than three decades,
Blackbaud is headquartered in Charleston,
South Carolina and has operations in the United States, Australia, Canada and the United Kingdom. For more information,
visit www.blackbaud.com, or follow us on Twitter, LinkedIn,
and Facebook.
Investor
Contact:
|
|
|
Media
Contact:
|
Steve
Hufford
|
|
|
media@blackbaud.com
|
Director of Investor
Relations
|
|
|
|
843-654-2655
|
|
|
|
steve.hufford@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 results,
expectations that our revenue will continue to grow, and
expectations that we will achieve our projected 2019 full-year
financial guidance. 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; risks related to our dividend policy and
stock repurchase program, including the possibility that we might
discontinue payment of dividends; and the other risk factors set
forth from time to time in the SEC filings for Blackbaud, copies of
which are available free of charge at the SEC's website at
https://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. This information includes non-GAAP revenue,
non-GAAP recurring revenue, non-GAAP gross profit, non-GAAP gross
margin, non-GAAP income from operations, non-GAAP operating margin,
non-GAAP net income and non-GAAP diluted earnings per share.
Blackbaud has acquired businesses whose net tangible assets include
deferred revenue. In accordance with GAAP reporting requirements,
Blackbaud recorded write-downs of deferred revenue to fair value,
which resulted in lower recognized revenue. Both on a quarterly and
year-to-date basis, the revenue for the acquired businesses is
deferred and typically recognized over a one-year period, so
Blackbaud's GAAP revenues for the one-year period after the
acquisitions will not reflect the full amount of revenues that
would have been reported if the acquired deferred revenue was not
written down to fair value. The non-GAAP measures described above
reverse the acquisition-related deferred revenue write-downs so
that the full amount of revenue booked by the acquired companies is
included, which Blackbaud believes provides a more accurate
representation of a revenue run-rate in a given period. In addition
to reversing write-downs of acquisition-related deferred revenue,
non-GAAP financial measures discussed above exclude the impact of
certain items that Blackbaud believes are not directly related to
its performance in any particular period, but are for its long-term
benefit over multiple periods.
In addition, Blackbaud uses non-GAAP organic revenue growth,
non-GAAP organic revenue growth on a constant currency basis and
non-GAAP organic recurring revenue growth, 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, and
it includes the non-GAAP revenue attributable to those companies,
as if there were no acquisition-related write-downs of acquired
deferred revenue to fair value as required by GAAP. In addition,
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.
Non-GAAP free cash flow is defined as operating cash flow less
capital expenditures, including costs required to be capitalized
for software development, and capital expenditures for property and
equipment.
Blackbaud uses these non-GAAP financial measures internally in
analyzing its financial results and believes they are useful to
investors, as a supplement to GAAP measures, in evaluating
Blackbaud's ongoing operational performance. Blackbaud believes
that these non-GAAP financial measures reflect Blackbaud's ongoing
business in a manner that allows for meaningful period-to-period
comparison and analysis of trends in its business. In addition,
Blackbaud believes that the use of these non-GAAP financial
measures provides additional information for investors to use in
evaluating ongoing operating results and trends and in comparing
its financial results from period-to-period with other companies in
Blackbaud's industry, many of which present similar non-GAAP
financial measures to investors. However, these non-GAAP financial
measures may not be completely comparable to similarly titled
measures of other companies due to differences in the exact method
of calculation between companies. Non-GAAP financial measures
should not be considered in isolation from, or as a substitute for,
financial information prepared in accordance with GAAP. Investors
are encouraged to review the reconciliation of these non-GAAP
measures to their most directly comparable GAAP financial
measures.
Blackbaud,
Inc.
Consolidated
balance sheets
(Unaudited)
|
|
(dollars in
thousands)
|
June 30,
2019
|
|
December 31,
2018
|
|
Assets
|
|
|
Current
assets:
|
|
|
Cash and cash
equivalents
|
$
|
32,654
|
|
$
|
30,866
|
|
Restricted cash due
to customers
|
354,133
|
|
418,980
|
|
Accounts receivable,
net of allowance of $5,231 and $4,722 at June 30, 2019
and December 31, 2018, respectively
|
131,277
|
|
86,595
|
|
Customer funds
receivable
|
5,349
|
|
1,753
|
|
Prepaid expenses and
other current assets
|
76,728
|
|
59,788
|
|
Total current
assets
|
600,141
|
|
597,982
|
|
Property and
equipment, net
|
39,569
|
|
40,031
|
|
Operating lease
right-of-use assets
|
107,165
|
|
—
|
|
Software development
costs, net
|
87,880
|
|
75,099
|
|
Goodwill
|
632,269
|
|
545,213
|
|
Intangible assets,
net
|
340,615
|
|
291,617
|
|
Other
assets
|
66,319
|
|
65,363
|
|
Total
assets
|
$
|
1,873,958
|
|
$
|
1,615,305
|
|
Liabilities and
stockholders' equity
|
|
|
Current
liabilities:
|
|
|
Trade accounts
payable
|
$
|
35,749
|
|
$
|
34,538
|
|
Accrued expenses and
other current liabilities
|
60,514
|
|
46,893
|
|
Due to
customers
|
359,482
|
|
420,733
|
|
Debt, current
portion
|
7,500
|
|
7,500
|
|
Deferred revenue,
current portion
|
327,299
|
|
295,991
|
|
Total current
liabilities
|
790,544
|
|
805,655
|
|
Debt, net of current
portion
|
553,812
|
|
379,624
|
|
Deferred tax
liability
|
48,658
|
|
44,291
|
|
Deferred revenue, net
of current portion
|
2,324
|
|
2,564
|
|
Operating lease
liabilities, net of current portion
|
100,116
|
|
—
|
|
Other
liabilities
|
5,802
|
|
9,388
|
|
Total
liabilities
|
1,501,256
|
|
1,241,522
|
|
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, 60,187,063
and 59,327,633 shares issued at June 30, 2019 and December 31,
2018,
respectively
|
60
|
|
59
|
|
Additional paid-in
capital
|
427,950
|
|
399,241
|
|
Treasury stock, at
cost; 11,017,004 and 10,760,574 shares at June 30, 2019
and December 31, 2018, respectively
|
(286,644)
|
|
(266,884)
|
|
Accumulated other
comprehensive loss
|
(9,409)
|
|
(5,110)
|
|
Retained
earnings
|
240,745
|
|
246,477
|
|
Total
stockholders' equity
|
372,702
|
|
373,783
|
|
Total liabilities
and stockholders' equity
|
$
|
1,873,958
|
|
$
|
1,615,305
|
|
Blackbaud,
Inc.
Consolidated statements of comprehensive income
(Unaudited)
|
|
(dollars in
thousands, except per share amounts)
|
Three months
ended
June 30,
|
|
|
Six months
ended
June 30,
|
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
Revenue
|
|
|
|
|
|
Recurring
|
$
|
208,468
|
|
$
|
192,749
|
|
|
$
|
406,562
|
|
$
|
373,595
|
|
One-time services and
other
|
17,166
|
|
20,923
|
|
|
34,902
|
|
44,261
|
|
Total
revenue
|
225,634
|
|
213,672
|
|
|
441,464
|
|
417,856
|
|
Cost of
revenue
|
|
|
|
|
|
Cost of
recurring
|
86,657
|
|
76,350
|
|
|
171,368
|
|
145,429
|
|
Cost of one-time
services and other
|
14,150
|
|
18,822
|
|
|
28,722
|
|
37,780
|
|
Total cost of
revenue
|
100,807
|
|
95,172
|
|
|
200,090
|
|
183,209
|
|
Gross
profit
|
124,827
|
|
118,500
|
|
|
241,374
|
|
234,647
|
|
Operating
expenses
|
|
|
|
|
|
Sales, marketing and
customer success
|
55,009
|
|
48,493
|
|
|
110,464
|
|
93,970
|
|
Research and
development
|
25,902
|
|
25,297
|
|
|
54,363
|
|
51,255
|
|
General and
administrative
|
28,543
|
|
28,447
|
|
|
55,660
|
|
53,498
|
|
Amortization
|
1,152
|
|
1,201
|
|
|
2,528
|
|
2,470
|
|
Restructuring
|
730
|
|
3,688
|
|
|
2,683
|
|
4,499
|
|
Total operating
expenses
|
111,336
|
|
107,126
|
|
|
225,698
|
|
205,692
|
|
Income from
operations
|
13,491
|
|
11,374
|
|
|
15,676
|
|
28,955
|
|
Interest
expense
|
(5,799)
|
|
(4,303)
|
|
|
(11,122)
|
|
(7,820)
|
|
Other income,
net
|
2,181
|
|
346
|
|
|
2,363
|
|
506
|
|
Income before
provision for income taxes
|
9,873
|
|
7,417
|
|
|
6,917
|
|
21,641
|
|
Income tax provision
(benefit)
|
2,733
|
|
825
|
|
|
899
|
|
(2,702)
|
|
Net
income
|
$
|
7,140
|
|
$
|
6,592
|
|
|
$
|
6,018
|
|
$
|
24,343
|
|
Earnings per
share
|
|
|
|
|
|
Basic
|
$
|
0.15
|
|
$
|
0.14
|
|
|
$
|
0.13
|
|
$
|
0.52
|
|
Diluted
|
$
|
0.15
|
|
$
|
0.14
|
|
|
$
|
0.13
|
|
$
|
0.51
|
|
Common shares and
equivalents outstanding
|
|
|
|
|
|
Basic weighted
average shares
|
47,714,621
|
|
47,222,657
|
|
|
47,622,740
|
|
47,121,692
|
|
Diluted weighted
average shares
|
48,160,684
|
|
48,053,094
|
|
|
48,101,212
|
|
48,030,547
|
|
Other
comprehensive (loss) income
|
|
|
|
|
|
Foreign currency
translation adjustment
|
(6,018)
|
|
(8,817)
|
|
|
(1,428)
|
|
(2,380)
|
|
Unrealized (loss) gain
on derivative instruments, net of tax
|
(1,939)
|
|
765
|
|
|
(2,871)
|
|
1,844
|
|
Total other
comprehensive loss
|
(7,957)
|
|
(8,052)
|
|
|
(4,299)
|
|
(536)
|
|
Comprehensive
(loss) income
|
$
|
(817)
|
|
$
|
(1,460)
|
|
|
$
|
1,719
|
|
$
|
23,807
|
|
Blackbaud,
Inc.
Consolidated
statements of cash flows
(Unaudited)
|
|
|
Six months
ended
June 30,
|
|
(dollars in
thousands)
|
2019
|
|
2018
|
|
Cash flows from
operating activities
|
|
|
Net income
|
$
|
6,018
|
|
$
|
24,343
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
Depreciation and
amortization
|
43,113
|
|
39,847
|
|
Provision for
doubtful accounts and sales returns
|
4,646
|
|
3,697
|
|
Stock-based
compensation expense
|
28,755
|
|
24,953
|
|
Deferred
taxes
|
465
|
|
1,121
|
|
Amortization of
deferred financing costs and discount
|
376
|
|
376
|
|
Other non-cash
adjustments
|
1,982
|
|
(419)
|
|
Changes in operating
assets and liabilities, net of acquisition and disposal of
businesses:
|
|
|
Accounts
receivable
|
(45,071)
|
|
(38,092)
|
|
Prepaid expenses and
other assets
|
(12,725)
|
|
(18,629)
|
|
Trade accounts
payable
|
216
|
|
6,327
|
|
Accrued expenses and
other liabilities
|
(9,014)
|
|
(6,675)
|
|
Deferred
revenue
|
26,328
|
|
29,545
|
|
Net cash provided
by operating activities
|
45,089
|
|
66,394
|
|
Cash flows from
investing activities
|
|
|
Purchase of property
and equipment
|
(6,375)
|
|
(9,575)
|
|
Capitalized software
development costs
|
(23,206)
|
|
(16,359)
|
|
Purchase of net
assets of acquired companies, net of cash and restricted cash
acquired
|
(109,386)
|
|
(45,315)
|
|
Other investing
activities
|
500
|
|
—
|
|
Net cash used in
investing activities
|
(138,467)
|
|
(71,249)
|
|
Cash flows from
financing activities
|
|
|
Proceeds from
issuance of debt
|
329,100
|
|
173,500
|
|
Payments on
debt
|
(155,150)
|
|
(132,150)
|
|
Employee taxes paid
for withheld shares upon equity award settlement
|
(19,760)
|
|
(25,184)
|
|
Proceeds from
exercise of stock options
|
6
|
|
11
|
|
Change in due to
customers
|
(107,808)
|
|
(309,189)
|
|
Change in customer
funds receivable
|
(3,741)
|
|
(4,391)
|
|
Dividend payments to
stockholders
|
(11,802)
|
|
(11,653)
|
|
Net cash provided
by (used in) financing activities
|
30,845
|
|
(309,056)
|
|
Effect of exchange
rate on cash, cash equivalents and restricted cash
|
(526)
|
|
(1,606)
|
|
Net decrease in
cash, cash equivalents and restricted cash
|
(63,059)
|
|
(315,517)
|
|
Cash, cash
equivalents and restricted cash, beginning of period
|
449,846
|
|
640,174
|
|
Cash, cash
equivalents and restricted cash, end of period
|
$
|
386,787
|
|
$
|
324,657
|
|
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,
2019
|
|
December 31,
2018
|
|
Cash and cash
equivalents
|
$
|
32,654
|
|
$
|
30,866
|
|
Restricted cash due
to customers
|
354,133
|
|
418,980
|
|
Total cash, cash
equivalents and restricted cash in the statement of cash
flows
|
$
|
386,787
|
|
$
|
449,846
|
|
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,
|
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
GAAP
Revenue
|
$
|
225,634
|
|
$
|
213,672
|
|
|
$
|
441,464
|
|
$
|
417,856
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
Add:
Acquisition-related deferred revenue write-down
|
716
|
|
919
|
|
|
1,432
|
|
1,267
|
|
Non-GAAP
revenue
|
$
|
226,350
|
|
$
|
214,591
|
|
|
$
|
442,896
|
|
$
|
419,123
|
|
|
|
|
|
|
|
GAAP gross
profit
|
$
|
124,827
|
|
$
|
118,500
|
|
|
$
|
241,374
|
|
$
|
234,647
|
|
GAAP gross
margin
|
55.3
|
%
|
55.5
|
%
|
|
54.7
|
%
|
56.2
|
%
|
Non-GAAP
adjustments:
|
|
|
|
|
|
Add:
Acquisition-related deferred revenue write-down
|
716
|
|
919
|
|
|
1,432
|
|
1,267
|
|
Add: Stock-based
compensation expense
|
791
|
|
1,645
|
|
|
1,765
|
|
2,740
|
|
Add: Amortization of
intangibles from business combinations
|
11,329
|
|
10,677
|
|
|
22,745
|
|
21,063
|
|
Add: Employee
severance
|
(4)
|
|
12
|
|
|
1,115
|
|
587
|
|
Add:
Acquisition-related integration costs
|
—
|
|
25
|
|
|
—
|
|
25
|
|
Subtotal
|
12,832
|
|
13,278
|
|
|
27,057
|
|
25,682
|
|
Non-GAAP gross
profit
|
$
|
137,659
|
|
$
|
131,778
|
|
|
$
|
268,431
|
|
$
|
260,329
|
|
Non-GAAP gross
margin
|
60.8
|
%
|
61.4
|
%
|
|
60.6
|
%
|
62.1
|
%
|
|
|
|
|
|
|
GAAP income from
operations
|
$
|
13,491
|
|
$
|
11,374
|
|
|
$
|
15,676
|
|
$
|
28,955
|
|
GAAP operating
margin
|
6.0
|
%
|
5.3
|
%
|
|
3.6
|
%
|
6.9
|
%
|
Non-GAAP
adjustments:
|
|
|
|
|
|
Add:
Acquisition-related deferred revenue write-down
|
716
|
|
919
|
|
|
1,432
|
|
1,267
|
|
Add: Stock-based
compensation expense
|
15,029
|
|
13,861
|
|
|
28,755
|
|
24,953
|
|
Add: Amortization of
intangibles from business combinations
|
12,481
|
|
11,878
|
|
|
25,273
|
|
23,533
|
|
Add: Employee
severance
|
191
|
|
100
|
|
|
3,612
|
|
1,031
|
|
Add:
Acquisition-related integration costs
|
464
|
|
2,194
|
|
|
1,182
|
|
2,627
|
|
Add:
Acquisition-related expenses
|
365
|
|
1,211
|
|
|
810
|
|
1,605
|
|
Add: Restructuring
costs
|
730
|
|
3,688
|
|
|
2,683
|
|
4,499
|
|
Subtotal
|
29,976
|
|
33,851
|
|
|
63,747
|
|
59,515
|
|
Non-GAAP income
from operations
|
$
|
43,467
|
|
$
|
45,225
|
|
|
$
|
79,423
|
|
$
|
88,470
|
|
Non-GAAP operating
margin
|
19.2
|
%
|
21.1
|
%
|
|
17.9
|
%
|
21.1
|
%
|
|
|
|
|
|
|
GAAP income before
provision for income taxes
|
$
|
9,873
|
|
$
|
7,417
|
|
|
$
|
6,917
|
|
$
|
21,641
|
|
GAAP net
income
|
$
|
7,140
|
|
$
|
6,592
|
|
|
$
|
6,018
|
|
$
|
24,343
|
|
|
|
|
|
|
|
Shares used in
computing GAAP diluted earnings per share
|
48,160,684
|
|
48,053,094
|
|
|
48,101,212
|
|
48,030,547
|
|
GAAP diluted
earnings per share
|
$
|
0.15
|
|
$
|
0.14
|
|
|
$
|
0.13
|
|
$
|
0.51
|
|
|
|
|
|
|
|
Non-GAAP
adjustments:
|
|
|
|
|
|
Add: GAAP income tax
provision (benefit)
|
2,733
|
|
825
|
|
|
899
|
|
(2,702)
|
|
Add: Total non-GAAP
adjustments affecting income from operations
|
29,976
|
|
33,851
|
|
|
63,747
|
|
59,515
|
|
Non-GAAP income
before provision for income taxes
|
39,849
|
|
41,268
|
|
|
70,664
|
|
81,156
|
|
Assumed non-GAAP
income tax provision(1)
|
7,970
|
|
8,254
|
|
|
$
|
14,133
|
|
$
|
16,232
|
|
Non-GAAP net
income
|
$
|
31,879
|
|
$
|
33,014
|
|
|
$
|
56,531
|
|
$
|
64,924
|
|
|
|
|
|
|
|
Shares used in
computing non-GAAP diluted earnings per share
|
48,160,684
|
|
48,053,094
|
|
|
48,101,212
|
|
48,030,547
|
|
Non-GAAP diluted
earnings per share
|
$
|
0.66
|
|
$
|
0.69
|
|
|
$
|
1.18
|
|
$
|
1.35
|
|
|
(1) Blackbaud
applies a non-GAAP effective tax rate of 20.0% when calculating
non-GAAP net income and non-GAAP diluted earnings per
share.
|
|
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,
|
|
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
|
GAAP
revenue
|
$
|
225,634
|
|
$
|
213,672
|
|
|
$
|
441,464
|
|
$
|
417,856
|
|
|
GAAP revenue
growth
|
5.6
|
%
|
|
|
5.6
|
%
|
|
|
(Less) Add: Non-GAAP
acquisition-related revenue (1)
|
(4,558)
|
|
1,771
|
|
|
(8,944)
|
|
4,485
|
|
|
Non-GAAP organic
revenue (2)
|
$
|
221,076
|
|
$
|
215,443
|
|
|
$
|
432,520
|
|
$
|
422,341
|
|
|
Non-GAAP organic
revenue growth
|
2.6
|
%
|
|
|
2.4
|
%
|
|
|
|
|
|
|
|
|
|
Non-GAAP organic
revenue (2)
|
$
|
221,076
|
|
$
|
215,443
|
|
|
$
|
432,520
|
|
$
|
422,341
|
|
|
Foreign currency
impact on non-GAAP organic revenue (3)
|
2,177
|
|
—
|
|
|
3,956
|
|
—
|
|
|
Non-GAAP organic
revenue on constant currency basis (3)
|
$
|
223,253
|
|
$
|
215,443
|
|
|
$
|
436,476
|
|
$
|
422,341
|
|
|
Non-GAAP organic
revenue growth on constant currency basis
|
3.6
|
%
|
|
|
3.3
|
%
|
|
|
|
|
|
|
|
|
|
GAAP recurring
revenue
|
$
|
208,468
|
|
$
|
192,749
|
|
|
$
|
406,562
|
|
$
|
373,595
|
|
|
GAAP recurring
revenue growth
|
8.2
|
%
|
|
|
8.8
|
%
|
|
|
(Less) Add: Non-GAAP
acquisition-related revenue (1)
|
(4,298)
|
|
1,717
|
|
|
(8,473)
|
|
4,316
|
|
|
Non-GAAP organic
recurring revenue
|
$
|
204,170
|
|
$
|
194,466
|
|
|
$
|
398,089
|
|
$
|
377,911
|
|
|
Non-GAAP organic
recurring revenue growth
|
5.0
|
%
|
|
|
5.3
|
%
|
|
|
|
(1)
|
Non-GAAP
acquisition-related revenue excludes incremental
acquisition-related revenue calculated in accordance with GAAP that
is attributable to companies acquired in the current fiscal year.
For companies acquired in the immediately preceding fiscal year,
non-GAAP acquisition-related revenue reflects presentation of
full-year incremental non-GAAP revenue derived from such companies,
as if they were combined throughout the prior period, and it
includes the non-GAAP revenue from the acquisition-related deferred
revenue write-down attributable to those companies.
|
(2)
|
Non-GAAP organic
revenue for the prior year periods presented herein may not agree
to non-GAAP organic revenue presented in the respective prior
period quarterly financial information solely due to the manner in
which non-GAAP organic revenue growth is calculated.
|
(3)
|
To determine non-GAAP
organic 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 Canadian Dollar, EURO,
British Pound and Australian Dollar.
|
|
|
|
(dollars in
thousands)
|
|
|
|
|
|
|
|
Six months
ended
June 30,
|
|
|
|
|
|
|
|
|
2019
|
|
2018
|
|
|
GAAP net cash
provided by operating activities
|
|
|
|
|
|
|
|
$
|
45,089
|
|
$
|
66,394
|
|
|
Less: purchase of
property and equipment
|
|
|
|
|
|
|
|
(6,375)
|
|
(9,575)
|
|
|
Less: capitalized
software development costs
|
|
|
|
|
|
|
|
(23,206)
|
|
(16,359)
|
|
|
Non-GAAP free cash
flow
|
|
|
|
|
|
|
|
$
|
15,508
|
|
$
|
40,460
|
|
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SOURCE Blackbaud