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Blackbaud Announces 2023 Fourth Quarter and Full Year Results

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Full Year 2023 Financial Results Met or Exceeded Financial Guidance Ranges; Blackbaud Announces Refreshed Capital Allocation Strategy

CHARLESTON, S.C., Feb. 12, 2024 /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, 2023.

“The fourth quarter concluded a year of substantial transformation for Blackbaud,” said Mike Gianoni, president, CEO and vice chairman of the board, Blackbaud. “Approximately a year and a half ago, we implemented our five-point operating plan, and it has put our company on a clear trajectory of improving performance. During the year, we delivered innovative new products and feature enhancements to our customers, made significant progress modernizing our software contract renewal terms, and delivered excellent fundraising results for our customers.  Our financial results were strong, and we were able to expand and replenish our previous stock repurchase program and begin repurchasing shares. Looking ahead to 2024, we expect to be a Rule of 40 company for the full year and will remain focused on delivering significant, sustainable value for our shareholders.”

Fourth Quarter 2023 Results Compared to Fourth Quarter 2022 Results:

GAAP total revenue was $295.0 million, up 7.4%, with $287.4 million in GAAP recurring revenue, up 8.4%. GAAP recurring revenue was 97% of total revenue.Non-GAAP organic recurring revenue increased 8.4%.GAAP income from operations was $32.3 million, inclusive of security incident-related costs of $4.8 million, with GAAP operating margin of 11.0%, an increase of 1,670 basis points.Non-GAAP income from operations was $83.8 million, with non-GAAP operating margin of 28.4%, an increase of 840 basis points.GAAP net income was $5.4 million, with GAAP diluted earnings per share of $0.10, up $0.51 per share.Non-GAAP net income was $62.2 million, with non-GAAP diluted earnings per share of $1.14, up $0.46 per share.Non-GAAP adjusted EBITDA was $99.3 million, up $31.3 million, with non-GAAP adjusted EBITDA margin of 33.6%, an increase of 890 basis points.GAAP net cash used in operating activities was $(3.3) million, inclusive of security incident-related payments of $54.9 million. GAAP net cash used in operating activities decreased $17.4 million and GAAP operating cash flow margin was (1.1)%, a decrease of 620 basis points.Non-GAAP free cash flow was $(18.6) million, inclusive of security incident-related payments of $54.9 million. Non-GAAP free cash flow decreased $14.9 million and non-GAAP free cash flow margin was (6.3)%, a decrease of 500 basis points.Non-GAAP adjusted free cash flow was $36.3 million, an increase of $28.7 million, with non-GAAP adjusted free cash flow margin of 12.3%, an increase of 950 basis points.

“The fourth quarter demonstrated continued progress on our five-point operating plan, which has transformed our financial results,” said Tony Boor, executive vice president and CFO, Blackbaud. “In the fourth quarter, revenue grew 7.4% with 33.6% adjusted EBITDA margin for a Rule of 40 of 41.0%. For the full year 2023, we met our guidance range for revenue and exceeded the high end of our guidance ranges for adjusted EBITDA margin, non-GAAP EPS and adjusted free cash flow. The mid-point of our 2024 financial guidance calls for approximately 7% revenue growth and 33% adjusted EBITDA margin to achieve Rule of 40 for the full year. Adjusted free cash flow of $264 million at the midpoint of guidance represents a 22.3% adjusted free cash flow margin and a significant improvement of 300bps over 2023. With our recently announced $500 million stock repurchase authorization, we plan to offset the dilution from annual stock-based compensation, while also opportunistically pursuing additional share repurchases, accretive M&A, and debt repayment to maximize value for our stockholders.”

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 released Prospect Insights Pro for Blackbaud Raiser’s Edge NXT®, supporting advanced fundraising organizations with more AI-driven recommendations, including planned gift likelihood and detailed wealth and asset data.Blackbaud announced the newest cohort of its Social Good Startup Program, welcoming eight new startups that are bringing cutting edge technology to the social impact sector.In the TrustRadius 2023 “Best Of” Awards, Blackbaud Raiser’s Edge NXT® and Blackbaud Financial Edge NXT® were recognized for Best Value, Best Feature Set and Best Relationship.Newsweek honored Blackbaud on its Excellence 1000 2024 Index, as well as its list of America’s Most Responsible Companies for the third consecutive year, recognizing the company’s commitment to social responsibility.Blackbaud was named Corporate Governance Team of the Year in the small-mid cap category at the 2023 Corporate Governance Awards, hosted by Governance Intelligence. The awards recognize outstanding achievements in governance, risk and compliance.Blackbaud appointed Kristian Talvitie, executive vice president and CFO of PTC Inc., to its board of directors. Talvitie brings 30 years of experience with a diverse background ranging across corporate finance, FP&A, sales, marketing and communications.Blackbaud announced a reauthorized, expanded and replenished $500M stock repurchase program. about Blackbaud’s recent highlights.

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

Full-Year 2023 Results Compared to Full-Year 2022 Results:

GAAP total revenue was $1.1 billion, up 4.5%, with $1.1 billion in GAAP recurring revenue, up 5.9%.Non-GAAP organic recurring revenue increased 6.3%.GAAP income from operations was $44.7 million, inclusive of security incident-related costs of $53.4 million, with GAAP operating margin of 4.0%, an increase of 670 basis points.Non-GAAP income from operations was $294.1 million, with non-GAAP operating margin of 26.6%, an increase of 750 basis points.GAAP net income was $1.8 million, with GAAP diluted earnings per share of $0.03, up $0.91 per share.Non-GAAP net income was $213.6 million, with non-GAAP diluted earnings per share of $3.98, up $1.29 per share.Non-GAAP adjusted EBITDA was $356.5 million, up $93.9 million, with non-GAAP adjusted EBITDA margin of 32.2%, an increase of 740 basis points.GAAP net cash provided by operating activities was $199.6 million, inclusive of security incident-related payments of $78.0 million. GAAP net cash provided by operating activities decreased $4.3 million and GAAP operating cash flow margin was 18.1%, a decrease of 120 basis points.Non-GAAP free cash flow was $135.5 million, inclusive of security incident-related payments of $78.0 million. Non-GAAP free cash flow increased $2.7 million and non-GAAP free cash flow margin of 12.3%, a decrease of 30 basis points.Non-GAAP adjusted free cash flow was $213.5 million, an increase of $59.8 million, with non-GAAP adjusted free cash flow margin of 19.3%, an increase of 480 basis points.

Financial Outlook
Blackbaud today announced its 2024 full year financial guidance:

Non-GAAP revenue of $1.170 billion to $1.200 billionNon-GAAP adjusted EBITDA margin of 32.5% to 33.5%Non-GAAP earnings per share of $4.12 to $4.38Non-GAAP adjusted free cash flow of $254 million to $274 million

Included in its 2024 full year financial guidance are the following assumptions:

Non-GAAP annualized effective tax rate is expected to be approximately 24.5%Interest expense for the year is expected to be approximately $34 million to $38 millionFully diluted shares for the year are expected to be approximately 53.5 million to 54.5 millionCapital expenditures for the year are expected to be approximately $65 million to $75 million, including approximately $60 million to $70 million of capitalized software and content development costs

Blackbaud has not reconciled forward-looking full-year non-GAAP financial measures contained in this news release to their most directly comparable GAAP measures, as permitted by Item 10(e)(1)(i)(B) of Regulation S-K. Such reconciliations would require unreasonable efforts at this time to estimate and quantify with a reasonable degree of certainty various necessary GAAP components, including for example those related to compensation, acquisition transactions and integration, tax items or others that may arise during the year. These components and other factors could materially impact the amount of the future directly comparable GAAP measures, which may differ significantly from their non-GAAP counterparts.

In order to provide a meaningful basis for comparison, Blackbaud uses non-GAAP adjusted free cash flow in analyzing its operating performance. Non-GAAP adjusted free cash flow is defined as operating cash flow less capital expenditures, including costs required to be capitalized for software and content development, capital expenditures for property and equipment, plus cash outflows, net of insurance, related to the previously disclosed Security Incident discovered in May 2020 (the “Security Incident”). Total costs related to the Security Incident exceeded the limit of our insurance coverage during the first quarter of 2022. For full year 2024, Blackbaud currently expects net cash outlays of $8 million to $13 million for ongoing legal fees related to the Security Incident. In line with the company’s policy, all associated costs due to third-party service providers and consultants, including legal fees, are expensed as incurred. Please refer to the section below titled “Non-GAAP Financial Measures” for more information on Blackbaud’s use of non-GAAP financial measures.

Stock Repurchase Program
As of January 19, 2024, Blackbaud had approximately $499 million remaining under its approved common stock purchase program that was authorized in January 2024.

Conference Call Details

What:

Blackbaud’s Fourth Quarter and Full Year 2023 Conference Call

When:

February 13, 2024

Time:

8:00 a.m. (Eastern Time)

Live Call:

1-877-407-3088 (US/Canada)

Webcast:

Blackbaud’s Investor Relations Webpage

About Blackbaud
Blackbaud (NASDAQ: BLKB) is the leading software provider exclusively dedicated to powering social impact. Serving the nonprofit and education sectors, companies committed to social responsibility and individual change makers, Blackbaud’s essential software is built to accelerate impact in fundraising, nonprofit financial management, digital giving, grantmaking, corporate social responsibility and education management. With millions of users and over $100 billion raised, granted or managed through Blackbaud platforms every year, Blackbaud’s solutions are unleashing the potential of the people and organizations who change the world. Blackbaud has been named to Newsweek’s list of America’s Most Responsible Companies, Quartz’s list of Best Companies for Remote Workers and Forbes’ list of America’s Best Employers. A remote-first company, Blackbaud has operations in the United States, Australia, Canada, Costa Rica and the United Kingdom, supporting users in 100+ countries. Learn more at www.blackbaud.com, or follow us on X/Twitter, LinkedIn, Instagram, and Facebook.

Investor Contact 
IR@blackbaud.com

Media Contact
media@blackbaud.com

Forward-Looking Statements
Except for historical information, all of the statements, expectations, and assumptions contained in this news release are forward-looking statements which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding the predictability of our financial condition and results of operations. These statements involve a number of risks and uncertainties. Although Blackbaud attempts to be accurate in making these forward-looking statements, it is possible that future circumstances might differ from the assumptions on which such statements are based. In addition, other important factors that could cause results to differ materially include the following: management of integration of acquired companies; uncertainty regarding increased business and renewals from existing customers; a shifting revenue mix that may impact gross margin; continued success in sales growth; cybersecurity and data protection risks and related liabilities; potential litigation involving us; and the other risk factors set forth from time to time in the SEC filings for Blackbaud, copies of which are available free of charge at the SEC’s website at www.sec.gov or upon request from Blackbaud’s investor relations department. Blackbaud assumes no obligation and does not intend to update these forward-looking statements, except as required by law.

Trademarks
All Blackbaud product names appearing herein are trademarks or registered trademarks of Blackbaud, Inc.

Non-GAAP Financial Measures
Blackbaud has provided in this release financial information that has not been prepared in accordance with GAAP. Blackbaud uses non-GAAP financial measures internally in analyzing its operational performance. Accordingly, Blackbaud believes these non-GAAP measures are useful to investors, as a supplement to GAAP measures, in evaluating its ongoing operational performance and trends and in comparing its financial results from period-to-period with other companies in Blackbaud’s industry, many of which present similar non-GAAP financial measures to investors. However, these non-GAAP financial measures may not be completely comparable to similarly titled measures of other companies due to potential differences in the exact method of calculation between companies.

The non-GAAP financial measures discussed above exclude the impact of certain transactions that Blackbaud believes are not directly related to its operating performance in any particular period, but are for its long-term benefit over multiple periods. Blackbaud believes these non-GAAP financial measures reflect its ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of trends in its business.

While Blackbaud believes these non-GAAP measures provide useful supplemental information, non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliations of these non-GAAP measures to their most directly comparable GAAP financial measures.

Beginning in 2024, we intend to update the non-GAAP tax rate we apply when calculating non-GAAP net income and non-GAAP diluted earnings per share in future periods. Since the first quarter of 2018, for the purposes of determining non-GAAP net income, we have utilized a non-GAAP tax rate of 20.0% in our calculation of the assumed non-GAAP income tax provision. We intend to adjust this rate to 24.5% to better reflect our periodic effective tax rate calculated in accordance with GAAP and our current expectations. The increase in our non-GAAP tax rate is primarily driven by increases in income tax rates in jurisdictions we operate in. Furthermore, as profitability increases, the effect of tax impacting items, including research and development credits, lessens such that our assumed non-GAAP tax rate moves closer to the statutory rate. 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 fourth quarter and full year 2023 measures of the tax impact related to non-GAAP net income and non-GAAP diluted earnings per share included in this news release are calculated under Blackbaud’s historical methodology.

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 now 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, net of insurance, 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 adjusted free cash flow is not intended to represent and should not be viewed as the amount of residual cash flow available for discretionary expenditures.

In addition, Blackbaud uses non-GAAP organic revenue growth, non-GAAP organic revenue growth on a constant currency basis, non-GAAP organic recurring revenue growth and non-GAAP organic recurring revenue growth on a constant currency basis, in analyzing its operating performance. Blackbaud believes that these non-GAAP measures are useful to investors, as a supplement to GAAP measures, for evaluating the periodic growth of its business on a consistent basis. Each of these measures excludes incremental acquisition-related revenue attributable to companies acquired in the current fiscal year. For companies acquired in the immediately preceding fiscal year, each of these measures reflects presentation of full-year incremental non-GAAP revenue derived from such companies as if they were combined throughout the prior period. In addition, each of these measures excludes prior period revenue associated with divested businesses. The exclusion of the prior period revenue is to present the results of the divested businesses within the results of the combined company for the same period of time in both the prior and current periods. Blackbaud believes this presentation provides a more comparable representation of its current business’ organic revenue growth and revenue run-rate.

Rule of 40 is defined as non-GAAP organic revenue growth plus non-GAAP adjusted EBITDA margin. Non-GAAP adjusted EBITDA is defined as GAAP net income plus interest, net; income tax provision (benefit); depreciation; amortization of intangible assets from business combinations; amortization of software and content development costs; stock-based compensation; employee severance; acquisition and disposition-related costs; restructuring and other real estate activities; costs, net of insurance, related to the Security Incident; and impairment of capitalized software development costs.

Blackbaud, Inc.

Consolidated Balance Sheets

(Unaudited)

(dollars in thousands, except per share amounts)

December 31,
2023

December 31,
2022

Assets

Current assets:

Cash and cash equivalents

$           31,251

$           31,691

Restricted cash

697,006

702,240

Accounts receivable, net of allowance of $6,907 and $7,318 at December 31, 2023 and
December 31, 2022, respectively

101,862

102,809

Customer funds receivable

353

249

Prepaid expenses and other current assets

99,285

81,654

Total current assets

929,757

918,643

Property and equipment, net

98,689

107,426

Operating lease right-of-use assets

36,927

45,899

Software and content development costs, net

160,194

141,023

Goodwill

1,053,738

1,050,272

Intangible assets, net

581,937

635,136

Other assets

51,037

94,304

Total assets

$      2,912,279

$      2,992,703

Liabilities and stockholders’ equity

Current liabilities:

Trade accounts payable

$           25,184

$           42,559

Accrued expenses and other current liabilities

64,322

86,002

Due to customers

695,842

700,860

Debt, current portion

19,259

18,802

Deferred revenue, current portion

392,530

382,419

Total current liabilities

1,197,137

1,230,642

Debt, net of current portion

760,405

840,241

Deferred tax liability

93,292

125,759

Deferred revenue, net of current portion

2,397

2,817

Operating lease liabilities, net of current portion

40,085

44,918

Other liabilities

10,258

4,294

Total liabilities

2,103,574

2,248,671

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, 69,188,304 and
67,814,044 shares issued at December 31, 2023 and December 31, 2022, respectively;
53,625,440 and 53,068,814 shares outstanding at December 31, 2023 and December 31,
2022, respectively

69

68

Additional paid-in capital

1,203,012

1,075,264

Treasury stock, at cost; 15,562,864 and 14,745,230 shares at December 31, 2023 and
December 31, 2022, respectively

(591,557)

(537,287)

Accumulated other comprehensive (loss) income

(1,688)

8,938

Retained earnings

198,869

197,049

Total stockholders’ equity

808,705

744,032

Total liabilities and stockholders’ equity

$      2,912,279

$      2,992,703

 

Blackbaud, Inc.

Consolidated Statements of Comprehensive Loss

(Unaudited)

(dollars in thousands, except per share amounts)

Three months ended
December 31,

Years ended
December 31,

2023

2022

2023

2022

Revenue

Recurring

$        287,381

$        265,173

$     1,071,520

$     1,011,733

One-time services and other

7,630

9,584

33,912

46,372

Total revenue

295,011

274,757

1,105,432

1,058,105

Cost of revenue

Cost of recurring

127,897

125,300

470,455

463,449

Cost of one-time services and other

7,938

10,183

31,733

41,940

Total cost of revenue

135,835

135,483

502,188

505,389

Gross profit

159,176

139,274

603,244

552,716

Operating expenses

Sales, marketing and customer success

52,120

57,088

212,158

221,455

Research and development

38,602

38,177

153,304

156,913

General and administrative

35,356

58,895

189,938

199,908

Amortization

784

662

3,139

2,925

Total operating expenses

126,862

154,822

558,539

581,201

Income (loss) from operations

32,314

(15,548)

44,705

(28,485)

Interest expense

(8,473)

(9,891)

(39,922)

(35,803)

Other income, net

2,414

5

12,861

8,713

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

26,255

(25,434)

17,644

(55,575)

Income tax provision (benefit)

20,856

(4,175)

15,824

(10,168)

Net income (loss)

$            5,399

$        (21,259)

$            1,820

$        (45,407)

Earnings (loss) per share

Basic

$              0.10

$             (0.41)

$              0.03

$             (0.88)

Diluted

$              0.10

$             (0.41)

$              0.03

$             (0.88)

Common shares and equivalents outstanding

Basic weighted average shares

52,697,294

51,716,948

52,546,406

51,569,148

Diluted weighted average shares

54,439,689

51,716,948

53,721,342

51,569,148

Other comprehensive (loss) income

Foreign currency translation adjustment

$            4,630

$            7,906

$            5,049

$        (16,160)

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

(14,459)

(1,684)

(15,675)

18,576

Total other comprehensive (loss) income

(9,829)

6,222

(10,626)

2,416

Comprehensive loss

$          (4,430)

$        (15,037)

$          (8,806)

$        (42,991)

 

Blackbaud, Inc.

Consolidated Statements of Cash Flows

(Unaudited)

Years ended
December 31,

(dollars in thousands)

2023

2022

Cash flows from operating activities

Net income (loss)

$             1,820

$          (45,407)

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

Depreciation and amortization

109,487

102,369

Provision for credit losses and sales returns

4,500

6,066

Stock-based compensation expense

127,762

110,294

Deferred taxes

(24,368)

(26,644)

Amortization of deferred financing costs and discount

1,775

2,364

Other non-cash adjustments

5,023

5,676

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

Accounts receivable

(3,237)

(7,340)

Prepaid expenses and other assets

16,851

26,235

Trade accounts payable

(18,576)

21,607

Accrued expenses and other liabilities

(30,275)

(2,386)

Deferred revenue

8,872

11,059

Net cash provided by operating activities

199,634

203,893

Cash flows from investing activities

Purchase of property and equipment

(4,685)

(12,289)

Capitalized software and content development costs

(59,443)

(58,774)

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

(13)

(20,912)

Cash received in sale of business

—

6,426

Other investing activities

(250)

—

Net cash used in investing activities

(64,391)

(85,549)

Cash flows from financing activities

Proceeds from issuance of debt

293,200

211,000

Payments on debt

(374,595)

(310,740)

Stock issuance costs

—

(1,339)

Employee taxes paid for withheld shares upon equity award settlement

(35,867)

(36,376)

Change in due to customers

(6,812)

111,386

Change in customer funds receivable

(60)

380

Purchase of treasury stock

(18,831)

—

Net cash used in financing activities

(142,965)

(25,689)

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

2,048

(10,486)

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

(5,674)

82,169

Cash, cash equivalents and restricted cash, beginning of year

733,931

651,762

Cash, cash equivalents and restricted cash, end of year

$         728,257

$         733,931

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,
2023

December 31,
2022

Cash and cash equivalents

$           31,251

$           31,691

Restricted cash

697,006

702,240

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

$         728,257

$         733,931

 

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,

2023

2022

2023

2022

GAAP Revenue

$     295,011

$     274,757

$ 1,105,432

$ 1,058,105

GAAP gross profit

$     159,176

$     139,274

$     603,244

$     552,716

GAAP gross margin

54.0 %

50.7 %

54.6 %

52.2 %

Non-GAAP adjustments:

Add: Stock-based compensation expense

4,416

3,109

16,658

14,436

Add: Amortization of intangibles from business combinations

13,099

11,686

52,463

48,492

Add: Employee severance

—

1,787

797

2,135

Subtotal

17,515

16,582

69,918

65,063

Non-GAAP gross profit

$     176,691

$     155,856

$     673,162

$     617,779

Non-GAAP gross margin

59.9 %

56.7 %

60.9 %

58.4 %

GAAP income (loss) from operations

$       32,314

$     (15,548)

$       44,705

$     (28,485)

GAAP operating margin

11.0 %

(5.7) %

4.0 %

(2.7) %

Non-GAAP adjustments:

Add: Stock-based compensation expense

32,094

26,635

127,762

110,294

Add: Amortization of intangibles from business combinations

13,883

12,348

55,602

51,417

Add: Employee severance

55

4,470

5,149

5,164

Add: Acquisition and disposition-related costs(1)(2)

657

430

7,456

6,135

Add: Restructuring and other real estate activities

—

—

—

71

Add: Security Incident-related costs, net of insurance(3)

4,780

26,516

53,426

55,723

Add: Impairment of capitalized software development costs

—

—

—

2,263

Subtotal

51,469

70,399

249,395

231,067

Non-GAAP income from operations

$       83,783

$       54,851

$     294,100

$     202,582

Non-GAAP operating margin

28.4 %

20.0 %

26.6 %

19.1 %

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

$       26,255

$     (25,434)

$       17,644

$     (55,575)

GAAP net income (loss)

$         5,399

$     (21,259)

$         1,820

$     (45,407)

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

54,439,689

51,716,948

53,721,342

51,569,148

GAAP diluted earnings (loss) per share

$           0.10

$         (0.41)

$           0.03

$         (0.88)

Non-GAAP adjustments:

Add: GAAP income tax provision (benefit)

20,856

(4,175)

15,824

(10,168)

Add: Total non-GAAP adjustments affecting income from operations

51,469

70,399

249,395

231,067

Non-GAAP income before provision for income taxes

77,724

44,965

267,039

175,492

Assumed non-GAAP income tax provision(4)

15,545

8,993

53,408

35,098

Non-GAAP net income

$       62,179

$       35,972

$     213,631

$     140,394

Shares used in computing non-GAAP diluted earnings per share

54,439,689

52,923,158

53,721,342

52,207,573

Non-GAAP diluted earnings per share

$           1.14

$           0.68

$           3.98

$           2.69

(1)

Includes a $2.0 million noncash impairment of certain intangible assets held for sale during the twelve months ended December 31, 2022.

(2)

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

(3)

Includes Security Incident-related costs incurred during the three and twelve months ended December 31, 2023 of $4.8 million and $53.4 million, respectively, which includes approximately $1.0 million and $31.0 million, respectively, in settlements and recorded liabilities for loss contingencies, net of insurance recoveries during the same periods of $0.0 million, and during the twelve months ended December 31, 2022 of $26.5 million and $57.6 million, respectively, which included approximately $18.0 million and $23.0 million, respectively, in recorded aggregate liabilities for loss contingencies, net of insurance recoveries during the same period that were $0.0 million and $1.9 million, respectively. Recorded expenses consisted primarily of payments to third-party service providers and consultants, including legal fees, as well as settlements of customer claims, negotiated settlements and accruals for certain loss contingencies. Not included in this adjustment were costs associated with enhancements to our cybersecurity program. For full year 2024, we currently expect net pre-tax expense of approximately $5 million to $10 million and net cash outlays of approximately $8 million to $13 million for ongoing legal fees related to the Security Incident. Not included in these ranges are our previous settlements or current accruals for loss contingencies related to the matters discussed below. In line with our policy, legal fees are expensed as incurred. As of December 31, 2023, we have recorded approximately $1.5 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. In connection with the settlement of the multi-state Attorneys General investigation (as previously disclosed on October 5, 2023), we paid $49.5 million during the fourth quarter of 2023. There are other Security Incident-related matters, including customer claims, customer constituent class actions and governmental investigations, for which we have not recorded a liability for a loss contingency as of December 31, 2023 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.

(4)

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
December 31,

Years ended
December 31,

2023

2022

2023

2022

GAAP revenue

$     295,011

$        274,757

$ 1,105,432

$     1,058,105

GAAP revenue growth

7.4 %

4.5 %

Less: Non-GAAP revenue from divested businesses(1)

—

(10)

—

(3,535)

Non-GAAP organic revenue(2)

$     295,011

$        274,747

$ 1,105,432

$     1,054,570

Non-GAAP organic revenue growth

7.4 %

4.8 %

Non-GAAP organic revenue(2)

$     295,011

$        274,747

$ 1,105,432

$     1,054,570

Foreign currency impact on non-GAAP organic revenue(3)

(1,284)

—

431

—

Non-GAAP organic revenue on constant currency basis(3)

$     293,727

$        274,747

$ 1,105,863

$     1,054,570

Non-GAAP organic revenue growth on constant currency basis

6.9 %

4.9 %

GAAP recurring revenue

$     287,381

$        265,173

$ 1,071,520

$     1,011,733

GAAP recurring revenue growth

8.4 %

5.9 %

Less: Non-GAAP recurring revenue from divested businesses(1)

—

(1)

—

(3,439)

Non-GAAP organic recurring revenue(2)

$     287,381

$        265,172

$ 1,071,520

$     1,008,294

Non-GAAP organic recurring revenue growth

8.4 %

6.3 %

Non-GAAP organic recurring revenue(2)

$     287,381

$        265,172

$ 1,071,520

$     1,008,294

Foreign currency impact on non-GAAP organic recurring revenue(3)

(1,157)

—

482

—

Non-GAAP organic recurring revenue on constant currency basis(3)

$     286,224

$        265,172

$ 1,072,002

$     1,008,294

Non-GAAP organic recurring revenue growth on constant
currency basis

7.9 %

6.3 %

(1)

Non-GAAP revenue from divested businesses excludes revenue associated with divested businesses. The exclusion of the prior period revenue is to present the results of the divested business with the results of the combined company for the same period of time in both the prior and current periods.

(2)

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.

(3)

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,

2023

2022

2023

2022

GAAP net income (loss)

$         5,399

$        (21,259)

$         1,820

$        (45,407)

Non-GAAP adjustments:

Add: Interest, net

6,208

9,053

31,101

34,057

Add: GAAP income tax provision (benefit)

20,856

(4,175)

15,824

(10,168)

Add: Depreciation

3,142

3,444

13,043

14,086

Add: Amortization of intangibles from business combinations

13,883

12,348

55,602

51,417

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

12,183

10,447

45,296

38,975

Subtotal

56,272

31,117

160,866

128,367

Non-GAAP EBITDA

$       61,671

$            9,858

$     162,686

$          82,960

Non-GAAP EBITDA margin(2)

20.9 %

14.7 %

Non-GAAP adjustments:

Add: Stock-based compensation expense

32,094

26,635

127,762

110,294

Add: Employee severance

55

4,470

5,149

5,164

Add: Acquisition and disposition-related costs(3)

657

430

7,456

6,135

Add: Restructuring and other real estate activities

—

—

—

71

Add: Security Incident-related costs, net of insurance(3)

4,780

26,516

53,426

55,723

Add: Impairment of capitalized software development costs

—

—

—

2,263

Subtotal

37,586

58,051

193,793

179,650

Non-GAAP adjusted EBITDA

$       99,257

$          67,909

$     356,479

$        262,610

Non-GAAP adjusted EBITDA margin(4)

33.6 %

32.2 %

Rule of 40(5)

41.0 %

37.0 %

Non-GAAP adjusted EBITDA

99,257

67,909

356,479

262,610

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

(716)

1,326

(7)

6,305

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

$       98,541

$          69,235

$     356,472

$        268,915

Non-GAAP adjusted EBITDA margin on constant currency basis

33.5 %

32.2 %

Rule of 40 on constant currency basis(7)

40.4 %

37.1 %

(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,

2023

2022

GAAP net cash provided by operating activities

$      199,634

$      203,893

GAAP operating cash flow margin

18.1 %

19.3 %

Non-GAAP adjustments:

Less: purchase of property and equipment

(4,685)

(12,289)

Less: capitalized software and content development costs

(59,443)

(58,774)

Non-GAAP free cash flow

$      135,506

$      132,830

Non-GAAP free cash flow margin

12.3 %

12.6 %

Non-GAAP adjustments:

Add: Security Incident-related cash flows, net of insurance

78,010

20,864

Non-GAAP adjusted free cash flow

$      213,516

$      153,694

Non-GAAP adjusted free cash flow margin

19.3 %

14.5 %

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/blackbaud-announces-2023-fourth-quarter-and-full-year-results-302059803.html

SOURCE Blackbaud

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First Partner Jennifer Siebel Newsom Unveils Tech/Life Balance Guide in Conversation with Jonathan Haidt at Milken Institute Global Conference

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May 5, 2025

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In a featured conversation with social psychologist and author Jonathan Haidt, First Partner Jennifer Siebel Newsom today announced a new resource to help families unplug, play, and thrive together.

LOS ANGELES, May 5, 2025 /PRNewswire/ — Today, California First Partner Jennifer Siebel Newsom announced the release of her Movement & Outdoor Activity Family Guide, the latest addition to the Tech/Life Balance parenting series created by Siebel Newsom’s non-profit, the California Partners Project. This new guide offers practical, family-tested tools to help caregivers balance screen time while weaving movement and outdoor activity into the rhythms of daily life. The family guide can be found here.

“This guide is rooted in everything I care about—stepping away from screens, moving your body outside in nature, and reconnecting with family and friends,” said First Partner Jennifer Siebel Newsom. “I want parents to know they have permission to say no to devices, and that there are little tricks and tools to make it easier. This guide is here to help you set intentional boundaries around screen time and have open, connected conversations with your kids.”

The new resource launched on May 1st as part of Move Your Body, Calm Your Mind Day—a statewide initiative promoting movement and mindfulness, led by the Governor’s Advisory Council on Physical Fitness and Mental Well-Being. First Partner Siebel Newsom announced the guide during her conversation with social psychologist and bestselling author Jonathan Haidt at the 2025 Milken Institute Global Conference.

The conversation highlighted Haidt’s book, The Anxious Generation, and touched on shared concerns around youth mental health and the urgency of helping kids thrive offline as well as online. Their discussion emphasized the importance of actionable steps—like encouraging more movement and outdoor play—to counterbalance the constant pull of devices.

“Families today are up against powerful forces that are rewiring childhood,” said Jonathan Haidt, who is leading a social impact campaign focused on rolling back the phone-based childhood and reigniting childhood independence and resilience through unstructured play. “What makes this guide so impactful is that it offers practical tools for families to push back against the overprotective, overconnected culture fueling so much anxiety, without asking parents to do more.” Haidt is also the co-founder of Let Grow, a nonprofit dedicated to promoting childhood independence and resilience through unstructured play and real-world experiences.

Rooted in expert research and informed by California caregivers, the Movement & Outdoor Activity Guide includes:

Easy, accessible strategies for active playGrab-and-go ideas that fit real family lifeGuidance on tech that supports—not replaces—real-world connectionConversation starters to help families align on goals and values

The free, bilingual guide is part of the broader Tech/Life Balance series, which examines the intersection of youth mental health and technology through four key pillars: social-emotional health, movement and outdoor activity, nutrition, and sleep.

Aligned with the First Partner’s California for ALL Kids initiative, this work reflects a shared commitment to supporting children’s mental and physical health, strengthening family connections, and creating environments where every California child has the opportunity to thrive—mind, body, and beyond.

To download the guide, visit: calpartnersproject.org/techlifebalance/movement

About the California Partners Project: Co-founded by California First Partner Jennifer Siebel Newsom and Olivia Morgan, and in partnership with the people of California, the California Partners Project is dedicated to championing gender equity across the state and promoting the mental, behavioral, and physical well-being of California’s children. For more information about the non-profit organization, visit www.calpartnersproject.org. Connect with the California Partners Project on LinkedIn and Instagram.

MEDIA CONTACT: press@calpartnersproject.org

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SOURCE California Partners Project

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DESERT FINANCIAL CREDIT UNION ANNOUNCES COLLABORATION WITH PERSONAL FINANCE EXPERT NICOLE LAPIN

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May 5, 2025

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PHOENIX, May 5, 2025 /PRNewswire/ — Nicole Lapin, a New York Times Bestselling Author and personal finance expert, is collaborating with Desert Financial Credit Union to empower and promote financial well-being to Arizonans.

“I’ve always been a huge believer in credit unions because they’ve consistently put people before profits. I’ve personally banked with credit unions for years because I love everything they stand for—lower fees, better rates, and a true commitment to helping members thrive,” said Nicole Lapin. “I believe Desert Financial, in particular, aligns perfectly with my mission to make financial literacy and education accessible while empowering people to take control of their finances.”

Lapin will share advice on budgeting, fraud prevention, the benefits of banking with a credit union and more. Through social media content, she will share practical tips to help Arizonans feel more confident about money.

“Healthy financial well-being starts with quality education, and this collaboration with Nicole is a great way to deliver fundamental information to our community,” said Jeremy Nelson, Chief Marketing Officer. “Nicole’s superpower is her ability to give exceptional financial advice in a relatable way — one that we believe will resonate with our members.”

Desert Financial Credit Union has championed financial well-being for its members since its inception more than 85 years ago. The largest locally owned credit union in Arizona provides personalized banking services, free checking with no minimum account balance, free financial workshops and online resources tailored to every stage of life — from saving for college to planning for retirement.

Lapin has authored five personal development and finance books, including her latest release The Money School: 12 Simple Lessons to Master Financial Markets and Investing. Formerly a news anchor on CNN, CNBC and Bloomberg, Lapin launched the Money News Network, a podcast network, under which she hosts her daily show Money Rehab. 

To stay in the know with the latest content from Nicole Lapin and Desert Financial, please visit desertfinancial.com/nicolelapin, or follow @desertfinancial on Instagram.

About Desert Financial Credit Union

For over 85 years, Desert Financial has been Arizona’s most trusted local credit union with more than 475,000 members and nearly $9 billion in assets. With 50+ locations across Arizona and top-rated digital banking, it’s easy for members to click, call or come in. In 2025, members received $16 million back via the Member Giveback Bonus. Desert Financial is the official retail banking partner of Arizona State University® and the official banking partner of the Arizona Cardinals, NAU Athletics and the NAU Alumni Association. Federally insured by NCUA. Learn more at DesertFinancial.com.

View original content to download multimedia:https://www.prnewswire.com/news-releases/desert-financial-credit-union-announces-collaboration-with-personal-finance-expert-nicole-lapin-302445757.html

SOURCE Desert Financial Credit Union

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FlexJobs Names Top 20 Entry-Level Remote Careers for Gen Z Graduates

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44 minutes ago

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May 5, 2025

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Customer service, sales, communications among in-demand industries for ‘Class of 2025’ job seekers

GUAYNABO, Puerto Rican, May 5, 2025 /PRNewswire-PRWeb/ — According to a recent survey by the National Association of Colleges and Employers (NACE), employers plan to hire 7.3% more graduates from the Class of 2025 than they did the year before. To help young professionals and early job seekers better evaluate their work options this spring, FlexJobs® has named the top 20 entry-level remote and hybrid careers in 2025.

“The real challenges most younger workers face are how to job search more effectively, build career readiness––and long-term job resilience––and present themselves as the best candidate out of the crowd,” said Toni Frana, Career Expert Manager at FlexJobs.

With remote work the most important factor when considering a new job opportunity for the majority of professionals, FlexJobs’ report outlines the top industries and in-demand roles for remote and hybrid work, as well as key advice from career experts on how Gen Z graduates can practice career readiness ahead of graduation season.

FlexJobs compiled the list by analyzing more than 60 career categories in its database and determining the industries with the highest volume of entry-level postings between January 1 and April 30, 2025, that offered any level of remote work, including fully remote and hybrid work arrangements.

Top 20 Career Categories for Entry-Level Remote & Hybrid Jobs

The top 20 career categories that posted the most entry-level remote and hybrid positions included:

1. Customer Service
2. Administrative
3. Medical & Health
4. Project Management
5. Operations
6. Accounting & Finance
7. Sales
8. Computer & IT
9. Education & Training
10. Insurance
11. Business Development
12. Communications
13. Marketing
14. Account Management
15. Bilingual
16. Software Development
17. Banking
18. HR & Recruiting
19. Legal
20. Nursing

Building on momentum from previous years, the top entry-level career categories for remote jobs were customer service, administrative, and medical and health. The top three fields were closely followed by accounting and finance and computer and IT, which maintained a consistently high volume of fully remote and hybrid entry-level roles.

Notably, sales and account management fields more than doubled in growth compared to 2024, signaling the accessibility of remote work options across career levels in the 2025 work landscape. Although lower in the total number of job postings, software development, HR and recruiting, and legal scaled enough to rank within the top 20.

Customer Service, Business Development Representatives Most In-Demand Entry-Level Jobs

The most in-demand entry-level remote and hybrid job titles were:

1. Customer Service Representative
2. Business Development Representative
3. Account Executive
4. Sales Representative
5. Licensed Insurance Agent
6. Customer Support Specialist
7. Financial Analyst
8. Administrative Assistant
9. Accountant
10. Project Coordinator

Reflective of the career categories, the most in-demand, entry-level jobs were for customer service and business development representatives. Account executives, sales representatives, insurance agents, and customer support specialists were also in high demand. Administrative assistants, accountants, and project coordinators showed steady growth to round out the list.

“It’s a tough time to job search as a new graduate, but not entirely for the reasons you’d expect,” said Toni Frana, Career Expert Manager at FlexJobs. “As our report found, entry-level remote openings are actually up across key industries. The real challenges most younger workers face are how to job search more effectively, build career readiness––and long-term job resilience––and present themselves as the best candidate out of the crowd.”

10 Ways to Land Jobs & Create Career Readiness After Graduation

A Zety survey found 92% of Gen Z workers rely on TikTok for career advice, yet 55% admit to following misleading advice. With social media a dominant platform for job advice, FlexJobs’ career experts advise younger workers to follow trusted guidance over controversial trends to develop post-grad job search skills and feel more confident, prepared, and competitive.

1. Treat Job Searching Like a Job
Landing jobs after college can take time, and the process itself can feel like full-time work. Treat job searching with the same structure and commitment required for a paid position, such as:

Setting specific hours during the week dedicated to job searching, application tracking, resume editing, and networking.Using spreadsheets or job search platforms with tracking features to stay organized.Writing down weekly goals, such as applying to a certain number of roles, researching five companies, or reaching out to new contacts.

2. Start With a Career Plan
Write out short-term and long-term career goals and identify job titles or industries that match. Then, use that framework to guide the job search. Having a plan in place offers clarity, and employers appreciate candidates who show intentionality and a sense of direction.

3. Customize Every Resume & Cover Letter
Generic applications rarely make it past automated filters. Most companies use applicant tracking systems (ATS) to screen resumes before they reach a hiring manager.
To stand out:

Tailor each resume and cover letter to the job.Use keywords from the job description.Mirror the language the employer uses to describe skills and responsibilities.Focus on accomplishments, not just duties.

4. Create & Maintain a Professional Online Presence
Employers will research a candidate’s online presence across social media platforms. Career experts recommend new graduates keep their LinkedIn profiles updated, showcase relevant skills, and engage intentionally with professional content to build credibility in their chosen field.

5. Develop a Personal Brand
Reflect key skills and interests across resumes, cover letters, and online profiles. Employers should see a coherent story that explains who a candidate is, what they offer, and why they’re a great fit.

6. Focus Efforts on Skill-Building, Not Viral Trends
FlexJobs’ career experts caution against following #CareerTok trends that can backfire. Instead, new grads should develop transferable skills like communication and time management, in addition to industry-specific skills that employers highly value.

7. Be Open to Internships and Contract Roles
Career experts advise keeping an open mind about internships and contract roles when job searching, as these experiences can be valuable stepping stones and lead to long-term employment.

8. Network Smarter, Not Harder
Networking is still one of the most effective ways to find a job, but it does not have to feel transactional. Rather than trying to follow and connect with every contact possible, focus instead on developing fewer and more meaningful relationships.

9. Vet Career Advice Sources
Career advice is everywhere, but not all of it is reliable. FlexJobs career experts advise graduates to cross-reference social media tips with trusted sources like university career centers, certified career coaches, or reputable career websites.

10. Stay Patient and Grounded
When looking for jobs after college, the process can be long and emotionally draining. Stay grounded by:

Taking regular breaksSetting achievable weekly goalsCelebrating small wins (like submitting a strong application or scheduling a networking call)Practicing self-care through exercise, sleep, and hobbies

For more information, please visit https://www.flexjobs.com/blog/post/entry-level-remote-jobs-new-college-graduates-v2 or contact Shanna Briggs at shanna.briggs@bold.com.

About FlexJobs
FlexJobs is the leading career service specializing in remote, hybrid, and flexible jobs, with over 135 million people having used its resources since 2007. FlexJobs provides the highest-quality database of vetted remote and flexible job listings, from entry-level to executive, startups to public companies, part-time to full-time. To support job seekers in all phases of their career journey, FlexJobs also offers extensive expert advice, webinars, and other resources. In parallel, FlexJobs works with leading companies to recruit quality remote talent and optimize their remote and flexible workplace. A trusted source for data, trends, and insight, FlexJobs has been cited extensively in top national outlets, including CNN, the Wall Street Journal, the New York Times, CNBC, Forbes magazine, and many more. FlexJobs also has partner sites Remote.co and Job-Hunt.org to help round out its content and job search offerings. Follow FlexJobs on LinkedIn, Facebook, X, Instagram, TikTok, and YouTube.

Media Contact

Shanna Briggs, FlexJobs, 866-991-9222, shanna.briggs@bold.com, www.flexjobs.com

View original content:https://www.prweb.com/releases/flexjobs-names-top-20-entry-level-remote-careers-for-gen-z-graduates-302446023.html

SOURCE FlexJobs

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