Blackbaud Announces 2024 Fourth Quarter and Full Year Results

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

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

Fourth Quarter 2024 Results Compared to Fourth Quarter 2023 Results:

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

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

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

An explanation of all non-GAAP financial measures referenced in this press release, including the Rule of 40, is included below under the heading "Non-GAAP Financial Measures." A reconciliation of the company's non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included below in this press release.

Recent Company Highlights

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

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

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

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

Financial Outlook

Blackbaud today announced its 2025 full year financial guidance:

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

Included in its 2025 full year financial guidance are the following updated assumptions:

• Non-GAAP annualized effective tax rate is expected to be approximately 24.5%
• Interest expense for the year is expected to be approximately $65 million to $69 million
• Fully diluted shares for the year are expected to be approximately 48.5 million to 49.5 million
• Capital expenditures for the year are expected to be approximately $55 million to $65 million, including approximately $50 million to $60 million of capitalized software development costs

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

In order to provide a meaningful basis for comparison, Blackbaud uses non-GAAP adjusted free cash flow in analyzing its operating performance. Non-GAAP adjusted free cash flow is defined as operating cash flow less capital expenditures, including costs required to be capitalized for software and content development, capital expenditures for property and equipment, plus cash outflows related to the previously disclosed Security Incident discovered in May 2020 (the "Security Incident"). Total costs related to the Security Incident exceeded the limit of our insurance coverage during the first quarter of 2022. For full year 2025, Blackbaud currently expects net cash outlays of $3 million to $4 million for ongoing legal fees related to the Security Incident. In line with the company's policy, all associated costs due to third-party service providers and consultants, including legal fees, are expensed as incurred. Please refer to the section below titled "Non-GAAP Financial Measures" for more information on Blackbaud's use of non-GAAP financial measures.

Stock Repurchase Program

As of December 31, 2024, Blackbaud had approximately $645 million remaining under its common stock repurchase program that was expanded, replenished and reauthorized in July 2024.

About Blackbaud

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

Investor Contact
IR@blackbaud.com

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