Blackbaud Inaugurates New World Headquarters in South Carolina

Software leader’s state-of-the-art, eco-friendly hub to drive
 disruptive innovation and impact for global good at increased scale

Charleston, S.C. (June 13, 2018) — Blackbaud (NASDAQ: BLKB), the world’s leading cloud software company powering social good, is pleased to announce that its new world headquarters on Daniel Island in South Carolina is officially open for business. Blackbaud unveiled the 172,000 square-foot state-of-the-art workplace and innovation center during a ribbon-cutting ceremony today – just over two years since the company announced plans for its construction in 2016.

Blackbaud, the world’s 24th largest cloud software company, has operated in Berkeley County, South Carolina since 2000, and is the largest publicly traded software company headquartered in the state. The company was also recently named to the Fortune 56 Companies Changing the World list. The company’s eco-friendly world headquarters provides a dynamic and collaborative workplace for nearly half of its rapidly growing workforce, which operates in Asia, Australia, Europe, Latin America, and North America.

“With our new headquarters, we’re making a generational investment in the very community that supported us since well before we went public 14 years ago, while also launching the world’s most creative workspace to cultivate innovation at the intersection of technology and social good,” said Mike Gianoni, Blackbaud President and CEO. “From dedicated labs for disruptive innovation, to modern engineering spaces, to leading-edge technology that connects our global workforce like never before, we’re positioned to do what we do—bigger, better and faster. And that’s good news for all of our customers and the millions of people who use our software around the world.”

The new world headquarters is also home to the new Blackbaud Innovation Center, a high-tech meeting space where customers, partners, community leaders and influencers across the social economy can convene to turn action into impact. The site will support the company’s ongoing community development and corporate citizenship activities, such as Camp Blackbaud, an employee-led STEM program that teaches elementary school children how to design and code. It also ultimately will be accessible to nonprofits in need of special meeting and event space.

Blackbaud, which was recently recognized on Forbes’ America’s Best Midsize Employers list for the third consecutive year, announced plans in 2016 to create 300 additional high-tech jobs over five years. The company is actively recruiting new staff and expects new positions to be added as the project continues to progress. “Behind all great companies are great people, so it’s our top priority to make Blackbaud a place that attracts and retains top talent in the industry,” said John Mistretta, executive vice president of Human Resources.  “We designed this space based on what matters most to our people, which resulted in a sustainable, LEED-certified building that promotes employee wellness and collaboration; offering perks like a healthy dining café featuring local vendors, ergonomic furniture, a game room, an outdoor activities center, and more.”

To mark the celebration of its grand opening, Blackbaud made a $25,000 donation to Dee Norton Child Advocacy Center to support the new facility Dee Norton opened on the Cainhoy peninsula, a space designed to help prevent abuse, protect children and heal families. Blackbaud has a long-standing commitment to supporting organizations that work with disadvantaged youth and this partnership with Dee Norton allows the company to make a meaningful investment in its own backyard.

Blackbaud was joined by both state and Charleston-area leaders to celebrate the new building, including Charleston Mayor John Tecklenburg, Berkeley County Supervisor Bill Peagler and Director of Global Business Development, South Carolina Department of Commerce Nelson Lindsay.

 

About Blackbaud
Blackbaud (NASDAQ: BLKB) is the world’s leading cloud software company powering social good. Serving the entire social good community—nonprofits, foundations, corporations, education institutions, healthcare institutions and individual change agents—Blackbaud connects and empowers organizations to increase their impact through 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.

Blackbaud Media Contact
Nicole McGougan
Public Relations Manager
843.654.3307
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 that 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: general economic risks; uncertainty regarding increased business and renewals from existing customers; continued success in sales growth; management of integration of acquired companies and other risks associated with acquisitions; risks associated with successful implementation of multiple integrated software products; the ability to attract and retain key personnel; risks related to our dividend policy and share repurchase program, including potential limitations on our ability to grow and the possibility that we might discontinue payment of dividends; risks relating to restrictions imposed by the credit facility; risks associated with management of growth; lengthy sales and implementation cycles, particularly in larger organization; technological changes that make our products and services less competitive; 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. All Blackbaud product names appearing herein are trademarks or registered trademarks of Blackbaud, Inc.

 

Schools Advance Productivity Across All Departments, Save Time and Money with The Blackbaud Cloud Solution for K-12 Schools

Independent study shows how a school can operate more efficiently, increase data security and improve parent experiences and student access to resources and more

Charleston, S.C. (June 12, 2018) — Blackbaud (NASDAQ: BLKB) today announced the results of a commissioned Total Economic Impact™ (TEI) study[1] conducted by Forrester Consulting, examining the return on investment that schools may experience by deploying an integrated fundraising, school management, marketing and financial solution. Forrester found that over a three-year period, a school can achieve a 63 percent return on investment, reduce delinquency and increase payment collection to boost revenue by $126,829 and avoid labor costs by $228,114 with the Blackbaud Cloud Solution for K-12 Schools.

Forrester took a comprehensive approach to evaluate the Blackbaud Cloud Solution for K-12 Schools’ economic impact. Specifically, it interviewed Blackbaud subject matter experts, Forrester analysts and a school currently using the Blackbaud Cloud Solution for K-12 Schools and constructed a financial model representative of the interview using the TEI methodology. The objective of the framework was to identify the cost, benefit, flexibility and risk factors that affect the investment decision.

Forrester interviewed St. Paul’s Episcopal Day School, a private primary school in Kansas City, Missouri with approximately 450 students and 55 faculty and staff members whose mission is to develop confident learners, ethical leaders and compassionate, engaged citizens. The school’s multiple systems were not integrated, resulting in growing challenges surrounding its campus technology, including inefficient workflows, data silos, an inability to locate information and an overall customer experience that lagged behind modern expectations.

To address these common issues, St. Paul’s turned to the Blackbaud Cloud Solution for K-12 Schools, utilizing the onBoard® enrollment management system, onCampus® learning management system, onRecord® student information system, onMessage® school website system, Smart Tuition™, Raiser’s Edge NXT® fundraising and Financial Edge NXT® fund accounting. “Having everything in one solution has greatly increased our productivity and has reduced the number of places people have to go for information to basically one,” said Christina Cutcliffe, special projects manager, St. Paul’s Episcopal Day School.

After deploying the Blackbaud Cloud Solution for K-12 Schools, St. Paul’s experienced:

  • Increased administrative staff productivity by 12,800 hours resulting in avoided additional labor costs of $228,114. Unifying the school’s technology portfolio under a single, integrated solution significantly reduced the labor for manual data entry, verification and management.
  • Reduced delinquency and increased the payment collection rate to boost revenue by $126,829. Paul’s increased its monthly cash flow by offering an online payment portal, batching charges and enabling auto-payment.
  • Replaced legacy technology, avoiding $117,032 in expected costs over three years. By reducing the number of separate technologies, St. Paul’s was also able to greatly improve its data security.
  • Transitioned to digital-only communications, decreasing postage, printing and labor costs by at least $17,393. With a purely digital admissions and enrollment process, St. Paul’s eliminated eight other mass mailings per year, increased the speed of communications and reduced the school’s environmental impact.

“Parent accessibility was a big goal of this transition; giving parents real-time access to their student billing account has been important – they can see all their charges broken down, when before the upgrade, they had no access to them – now they can ask better questions, or often, avoid needing to ask at all,” Cutcliffe added. “Parents use the Blackbaud portal to see the formation of their child’s attendance, assignments, and grades. Access to this data puts teachers and parents on a level playing field with better information so they can have better conversations.”

Download the Forrester Total Economic Impact study to learn how St. Paul’s improved productivity across every department, and saved time and money using the Blackbaud Cloud Solution for K-12 Schools. Join Blackbaud and guest Forrester Consultant Benjamin Brown on June 14 at 2 p.m. ET to learn more about this story in webinar form.

About Blackbaud
Blackbaud (NASDAQ: BLKB) is the world’s leading cloud software company powering social good. Serving the entire social good community—nonprofits, foundations, corporations, education institutions, healthcare institutions and individual change agents—Blackbaud connects and empowers organizations to increase their impact through 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.

Blackbaud Media Contact
Nicole McGougan
Public Relations Manager
843.654.3307
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 that 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: general economic risks; uncertainty regarding increased business and renewals from existing customers; continued success in sales growth; management of integration of acquired companies and other risks associated with acquisitions; risks associated with successful implementation of multiple integrated software products; the ability to attract and retain key personnel; risks related to our dividend policy and share repurchase program, including potential limitations on our ability to grow and the possibility that we might discontinue payment of dividends; risks relating to restrictions imposed by the credit facility; risks associated with management of growth; lengthy sales and implementation cycles, particularly in larger organization; technological changes that make our products and services less competitive; 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. All Blackbaud product names appearing herein are trademarks or registered trademarks of Blackbaud, Inc.

[1] The Total Economic Impact™ Study, a May 2018 commissioned study conducted by Forrester Consulting on behalf of Blackbaud

“8 to Watch Under 40”

Laura Beussman, Director of Product Marketing, Fundraising & CRM Solutions, has been named as one of the “8 to Watch Under 40” by her alma mater, the University of Wisconsin School of Business. Published in its Spring 2018 edition of Update Magazine, Laura is featured as one of the business graduates with high-profile careers making an impact in their industries.

“Getting excited about the work I was doing and energized about the impact it was having helped me grow my career and really drive it forward. I’m passionate about what I’m doing and how it can impact other people.” – Laura Beussman

Laura Beussman’s passion for the arts world brought her to the Wisconsin School of Business, but it was her dedication to driving change that eventually landed her at Blackbaud as the director of product marketing for fundraising solutions.

Born and raised in Bryan, Texas, Beussman was in dance at age 4, piano at age 7, and was always singing. Her interest in the arts continued to wield influence well into the start of her career. After completing her undergraduate degree at Texas A&M, Beussman worked in nonprofit arts, primarily in accounting and finance. She soon realized, however, that what she really wanted to do was drive strategy in an organization, and came to Wisconsin to get her MBA in arts administration. Read the full feature article.

 

The Blackbaud Index: The Go-To Resource for Charitable and Online Giving Trends

The Blackbaud Index reported that overall charitable giving to nonprofits increased 1.6 percent while online giving increased 5.6 percent for the three months ending April 2018 compared to the same period in 2017.

The Blackbaud Index provides the most up-to-date information on charitable giving today. Tracking approximately $23 billion in US-based charitable giving, the Index is updated on the first of each month (or the next business day) and is based on a three-month moving average of year-over-year percent change. Featuring overall and online giving, the Index can be viewed by size and subsets of the nonprofit industry via an interactive online chart. The Index also features a fundraising benchmark calculator that allows users to easily chart their own results against the Index and historical data to provide a fuller view of charitable giving.

To access The Blackbaud Index, subscribe to monthly email alerts, read about the methodology, or access special reports, visit www.blackbaud.com/blackbaudindex.

Media Contact
Nicole McGougan
Public Relations Manager
843.654.3307
nicole.mcgougan@blackbaud.com

About Blackbaud
Blackbaud (NASDAQ: BLKB) is the world’s leading cloud software company powering social good. Serving the entire social good community—nonprofits, foundations, corporations, education institutions, healthcare institutions and individual change agents—Blackbaud connects and empowers organizations to increase their impact through 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.

Blackbaud Names Susan Connors President and General Manager of Managed Services

Charleston, S.C. (May 24, 2018) — Blackbaud (NASDAQ: BLKB), the world’s leading cloud software company powering social good, today named Susan Connors president and general manager of its Managed Services business, which provides expertise through a range of operational services—from database, campaign and digital management to staff augmentation and more—to help customers scale their impact with measurable outcomes and increased efficiency.

“Many of the world’s leading enterprise nonprofits and other social good organizations have seen tremendous value-add from Blackbaud’s managed services offerings,” said Walter Loiselle, Blackbaud’s senior vice president of customer operations. “As a customer champion who is relentlessly committed to helping them grow and scale their missions, Susan Connors was directly responsible for the expansion of our offerings and the increased demand for them over the last two years. Now, as president and general manager of Managed Services, she will again expand our industry-leading offerings to bring new value to customers, large and small.”

Connors brings more than 25 years of leadership experience in data sciences, services, support, operations and direct marketing prior to her leadership role at Blackbaud. Prior to joining the company in 2016, Connors served as senior vice president and general manager of data services, as well as senior vice president of operations, at Zeta Interactive. During her time at Zeta, she led its separation from eBay and the integration into Zeta for a 400-person division to include conversion of systems, services, and support of $75 million in revenue and more than 120 accounts. Prior to Zeta, she served in senior leadership roles for companies including eBay, Quaero, Merkle Inc. and Harte-Hanks Direct Marketing.

“As social good organizations face challenges in scaling and managing their database, fundraising and engagement operations, it becomes much more cost effective for them to leverage the innovative tools and expertise offered by Blackbaud’s Managed Services,” said Connors. “I look forward to providing customers with greater value as an extension of their teams, while also helping to grow and expand Blackbaud’s portfolio of services.”

Connors has a Bachelor of Science in Business Administration, Finance from George Mason University, and is currently a member of the Project Management Institute (PMI) and Worchester County Beekeepers Association.

For more information about Blackbaud Managed Services, visit https://www.blackbaud.com/nonprofit-direct-marketing/managed-services.

About Blackbaud
Blackbaud (NASDAQ: BLKB) is the world’s leading cloud software company powering social good. Serving the entire social good community—nonprofits, foundations, corporations, education institutions, healthcare institutions and individual change agents—Blackbaud connects and empowers organizations to increase their impact through 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.

Media Contact
Nicole McGougan
Public Relations Manager
843.654.3307
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 that involve a number of risks and uncertainties, including statements regarding expected benefits of products and product features. 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: general economic risks; uncertainty regarding increased business and renewals from existing customers; continued success in sales growth; management of integration of acquired companies and other risks associated with acquisitions; risks associated with successful implementation of multiple integrated software products; the ability to attract and retain key personnel; risks associated with management of growth; lengthy sales and implementation cycles, particularly in larger organization; technological changes that make our products and services less competitive; 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. All Blackbaud product names appearing herein are trademarks or registered trademarks of Blackbaud, Inc.

Blackbaud Leaders Named 2018 Forty Under 40 Winners

Amy Chase, Blackbaud’s vice president of professional services, and Ryan Roberts, Blackbaud’s director of risk management, have been selected as a 2018 Forty Under 40 winner by the Charleston Regional Business Journal, nominated by members of the Charleston community. 2018 marks the 21st anniversary of the Forty Under 40 awards.

“It is an honor to be nominated by Communities in Schools (CIS),which provides critical programming and support for students in Charleston County Schools to empower them to stay in school, for this award,” said Chase. “I’m grateful for the opportunity to serve on the board of CIS, as well as to be leading a team at Blackbaud that provides services to social good organizations to better their missions.”

“I’m honored to be recognized for this award and represent Blackbaud and all the great work we do as well,” said Roberts. “The majority of my experience getting involved in the nonprofit community happened because of introductions I made here at Blackbaud and customers I learned about through our volunteer and philanthropy program.  It’s great that Blackbaud encourages employees to get involved with causes that are meaningful to us.”

A panel of judges determined who among the nominees would be named to the 2018 class of Forty Under 40. This group of 40 individuals were recognized at its Forty Under 40 event last night at Alhambra Hall in Mount Pleasant, S.C.  Since 1998, this elite 40 has been comprised of people under 40 years of age who have excelled in the professional arena and in community involvement. Read more at www.charlestonbusiness.com/news/business-services/74024/.

The Blackbaud Index: The Go-To Resource for Charitable and Online Giving Trends

The Blackbaud Index reported that overall charitable giving to nonprofits increased 1.0 percent while online giving increased 3.2 percent for the three months ending March 2018 compared to the same period in 2017.

The Blackbaud Index provides the most up-to-date information on charitable giving today. Tracking approximately $23 billion in US-based charitable giving, the Index is updated on the first of each month (or the next business day) and is based on a three-month moving average of year-over-year percent change. Featuring overall and online giving, the Index can be viewed by size and subsets of the nonprofit industry via an interactive online chart. The Index also features a fundraising benchmark calculator that allows users to easily chart their own results against the Index and historical data to provide a fuller view of charitable giving.

To access The Blackbaud Index, subscribe to monthly email alerts, read about the methodology, or access special reports, visit www.blackbaud.com/blackbaudindex.

Media Contact
Nicole McGougan
Public Relations Manager
843.654.3307
nicole.mcgougan@blackbaud.com

About Blackbaud
Blackbaud (NASDAQ: BLKB) is the world’s leading cloud software company powering social good. Serving the entire social good community—nonprofits, foundations, corporations, education institutions, healthcare institutions and individual change agents—Blackbaud connects and empowers organizations to increase their impact through 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.

 

Blackbaud Named to Forbes America’s Best Employers 2018 List

Blackbaud has been named to the Forbes America’s Best Mid-Size Employers 2018 list for the third year in a row! This year, Blackbaud ranked #97, an impressive jump up from #236 in 2017. Blackbaud was recognized in the IT/Internet software category alongside 34 other comparable leading companies, including TripAdvisor, Indeed, Workday, Twitter, and HomeAdvisor. Blackbaud employees and non-employees (who were asked to name companies they would refer) responded in the survey at a volume that elevated us into the top 20% of midsize companies ranked nationwide.

Blackbaud is the technology behind transformative outcomes for global good, a thought leader and direct participant in change. With the world’s largest giving trends database, the company donates more research (Blackbaud Institute for Philanthropic Impact™) to power good than any company of its kind. Giving back drives 86% of employees to join; 1/3+ previously worked in the social sector; 25%+ serve on nonprofit boards; and they volunteer 100,000+ hours annually. For more information about a career at Blackbaud, visit www.blackbaud.com/careers/.

 

Blackbaud Acquires Market Leading Fundraising Performance Management Provider Reeher

Acquisition will provide Blackbaud customers with unmatched benchmarking capabilities, driving more effective fundraising and greater social good outcomes for customers  

Charleston, S.C. (May 1, 2018) — Blackbaud, Inc. (NASDAQ: BLKB), the world’s leading cloud software company powering social good, today announced the acquisition of Reeher, the industry leader in fundraising performance management for higher education.

Reeher drives fundraising effectiveness and increased impact by equipping individual fundraisers and their teams with the tools and insight they need to assess their performance, as well as benchmark it within their own institution and more broadly. Reeher’s customized predictive models also help institutions analyze and score the giving behaviors and characteristics of their constituents to identify and target the highest-potential prospects.

“Bringing together Blackbaud’s industry-leading analytics and benchmarking capabilities with Reeher’s best-in-class individual fundraiser benchmarking is going to create an unparalleled advantage for our customers,” said Blackbaud Chief Products Officer Kevin McDearis. “The fundraising organizations driving the most significant impact for their causes and institutions are those with the greatest insight into their own performance. By adding Reeher’s exceptional, proven benchmarking capabilities to the already rich analytics and benchmarking portfolio we offer today, we’re giving our customers a 360 view into their performance that is unmatched.”

Today, Blackbaud’s extensive benchmarking capabilities enable organizations and institutions to understand how their fundraising programs compare to others. With Reeher, these benchmarking capabilities will be expanded to also include internal benchmarking to assess fundraising team performance – from understanding how the performance of individual gift officers compare to one another within the same team, to comparing gift officer performance against the staff at other similar organizations. This means that organizations will have unmatched insight both into how their programs and people are performing – insight that can drive more effective fundraising programs.

“This is one more way Blackbaud is delivering on our commitment to increase outcomes for the social good community,” said Mike Gianoni, President and CEO of Blackbaud. “Just a one percent increase in fundraising effectiveness in the nonprofit space makes $2.8 billion more available for social good impact. Helping institutions ensure that their individual fundraisers are as effective as possible can play a key role in driving more effective fundraising programs – and ultimately, more powerful outcomes.”

Reeher’s St. Paul, Minnesota-based team will join Blackbaud. “Since founding Reeher in 2002, I have been committed to driving impact for fundraisers and the institutions they support,” said Andy Reeher, CEO of Reeher. “I am thrilled to take this impact to the next level, as we accelerate our innovation velocity and scale by joining with the world’s leading cloud software company powering social good.”

In the near term, Reeher customers will experience the benefit of Blackbaud’s best-in-class predictive analytics, which will enhance the predictive capabilities available to Reeher customers today. Blackbaud customers will benefit from the addition of fundraising performance management capabilities to Blackbaud’s portfolio. In the future, Blackbaud intends to bring Reeher’s capabilities to its broader customer base, including future expansion to other markets outside of higher education that have major gift officer and annual fund functions.

Reeher is headquartered in St. Paul, Minnesota. Blackbaud is headquartered in Charleston, South Carolina, with operations around the globe, including in Minneapolis, Minnesota.

For more information, visit www.Blackbaud.com/Better-Together.

About Blackbaud
Blackbaud (NASDAQ: BLKB) is the world’s leading cloud software company powering social good. Serving the entire social good community—nonprofits, foundations, corporations, education institutions, healthcare institutions and individual change agents—Blackbaud connects and empowers organizations to increase their impact through 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.

About Reeher
Reeher is a leading developer of cutting-edge software services to improve the efficiency and effectiveness of higher education fundraising efforts. Its signature Reeher Platform provides university development leaders at institutions of all sizes with tools to track and measure effectiveness, discover new opportunities, engage constituents and improve ROI. Based in St. Paul, Minn., Reeher works with leading universities across the country, including Johns Hopkins University, Fordham University, University of New Hampshire, Saint John’s University, Duke University and more. For more information, please visit www.reeher.com, call (651) 313-6000 or email info@reeher.com.

Blackbaud Media Contact
Nicole McGougan
Public Relations Manager
843.654.3307
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 that 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: general economic risks; uncertainty regarding increased business and renewals from existing customers; continued success in sales growth; management of integration of acquired companies and other risks associated with acquisitions; risks associated with successful implementation of multiple integrated software products; the ability to attract and retain key personnel; risks related to our dividend policy and share repurchase program, including potential limitations on our ability to grow and the possibility that we might discontinue payment of dividends; risks relating to restrictions imposed by the credit facility; risks associated with management of growth; lengthy sales and implementation cycles, particularly in larger organization; technological changes that make our products and services less competitive; 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. All Blackbaud product names appearing herein are trademarks or registered trademarks of Blackbaud, Inc.

Blackbaud Announces 2018 First Quarter Results

First Quarter Recurring Revenue Grows 13% representing 89% of total revenue;
Reaffirms 2018 Full Year Financial Guidance

Charleston, S.C. (April 30, 2018) – Blackbaud (NASDAQ: BLKB), the world’s leading cloud software company powering social good, today announced financial results for its first quarter ended March 31, 2018.

“We’ve continued moving the business towards a subscriptions-based revenue model with our mix of recurring revenue now standing at 89% of total, a new all-time high for us,” said Mike Gianoni, Blackbaud’s president and CEO. “The market remains strong and we continue to integrate our solution portfolio at a rapid pace and deliver innovative new software capabilities to our growing base of over 40,000 customers and to the millions of individual change makers using our platforms.”

First Quarter 2018 Results Compared to First Quarter 2017 Results:

  • Total GAAP revenue was $204.2 million, up 10.3%, with $180.8 million in GAAP recurring revenue, representing 88.6% of total GAAP revenue. GAAP recurring revenue was up 13.0%.
  • Total non-GAAP revenue was $204.5 million, up 10.5%, with $181.1 million in non-GAAP recurring revenue, representing 88.6% of total non-GAAP revenue. Non-GAAP recurring revenue was up 13.2%.
  • Non-GAAP organic revenue increased 5.3% and non-GAAP organic recurring revenue increased 7.2%.
  • GAAP income from operations increased 32.5% to $17.6 million, with GAAP operating margin increasing 140 basis points to 8.6%.
  • Non-GAAP income from operations increased 18.0% to $43.2 million, with non-GAAP operating margin increasing 130 basis points to 21.1%.
  • GAAP net income increased 35.1% to $17.8 million, with GAAP diluted earnings per share of $0.37, up $0.09.
  • Non-GAAP net income increased 35.8% to $31.9 million, with non-GAAP diluted earnings per share of $0.66, up $0.16.
  • Non-GAAP free cash flow was $(1.1) million, a decrease of $4.6 million.

“Execution against our strategic plan allowed us to post solid results for the quarter,” said Tony Boor, Blackbaud’s executive vice president and CFO. “We’ve adopted ASC 606 using the full retrospective method and we’re now reporting maintenance and subscriptions combined as recurring revenue given the tremendous progress we’ve made in shifting our revenue model towards cloud-based subscriptions.”

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:

Visit www.blackbaud.com/press-room/ for more information about Blackbaud’s recent highlights.

Dividend
Blackbaud announced today that its Board of Directors has declared a second quarter 2018 dividend of $0.12 per share payable on June 15, 2018 to stockholders of record on May 25, 2018.

Financial Outlook
Blackbaud today reaffirmed its 2018 full year financial guidance:

  • Non-GAAP revenue of $870 million to $890 million
  • Non-GAAP operating margin of 20.6% to 21.0%
  • Non-GAAP diluted earnings per share of $2.75 to $2.88
  • Non-GAAP free cash flow of $165 million to $175 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.

Reclassifications
Our revenue from “subscriptions” and “maintenance” and a portion of our “services and other” revenue have been combined within “recurring” revenue beginning in 2018. In order to provide comparability between periods presented, those amounts of revenue have been combined within “recurring” revenue in the previously reported consolidated statements of comprehensive income to conform to presentation of the current period. Similarly, “cost of subscriptions” and “cost of maintenance” and a portion of “cost of services and other” have been combined within “cost of recurring” in the previously reported consolidated statements of comprehensive income to conform to presentation of the current period. “Services and other” revenue has been renamed as “one-time services and other” and consists of revenue that did not meet the description of “recurring” revenue in the consolidated statements of comprehensive income.

Adoption of New Revenue Accounting Standard
On January 1, 2018, we adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), using the full retrospective method of transition, which requires that the standard be applied to all periods presented. The impacts of adoption are reflected in the financial information herein. We have provided more detailed information regarding the impact of our adoption of ASU 2014-09 in a Form 8-K filed with the SEC today. We have also made that information accessible via the Investor Relations section of our website.

Conference Call Details

What:           Blackbaud’s 2018 First Quarter Conference Call
When:          May 1, 2018
Time:           8:00 a.m. (Eastern Time)
Live Call:     800-289-0462 (US/Canada); passcode 788816.
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, corporations, education institutions, healthcare institutions and individual change agents—Blackbaud connects and empowers organizations to increase their impact through 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.

Investor Contact: Media Contact:
Mark Furlong Nicole McGougan
Director of Investor Relations Public Relations Manager
843-654-2097 843-654-3307
mark.furlong@blackbaud.com nicole.mcgougan@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 2018 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 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.

As previously disclosed, beginning in 2018, Blackbaud applies a non-GAAP effective tax rate of 20.0% when calculating non-GAAP net income and non-GAAP diluted earnings per share. The non-GAAP tax rate will be reviewed annually to determine whether it remains appropriate in consideration of Blackbaud’s financial results including its periodic effective tax rate calculated in accordance with GAAP, its operating environment and related tax legislation in effect and other factors deemed necessary. All first quarter 2017 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 32.0%.

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.