News Release

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Blackbaud Announces 2018 Fourth Quarter and Full Year Results
Fourth Quarter Recurring Revenue Grows 5% Representing 90% of Total Revenue;
Achieves Updated 2018 Financial Guidance Topping Profitability and Cash Estimates; Announces 2019 Financial Guidance

CHARLESTON, S.C., Feb. 6, 2019 /PRNewswire/ -- Blackbaud (NASDAQ: BLKB), the world's leading cloud software company powering social good, today announced financial results for its fourth quarter and full year ended December 31, 2018.

"We had a solid finish to 2018 and we furthered our strategic initiatives to position the company for long-term success," said Mike Gianoni, Blackbaud's president and CEO. "We continued shifting the business towards a recurring revenue model, with our recurring revenue mix comprising 90% of total revenue in 2018. This was a banner year for Blackbaud innovation to digitally transform the markets we serve. The Blackbaud SKY platform has reached a level of maturity that enables us to bring new solutions to market like our entirely new Cloud Solution for Faith Based Communities, expanded Cloud Solution for Higher Education Institutions, and Nonprofit Resource Management, which is part of a joint initiative with Microsoft. And, we're rapidly advancing existing capabilities for our growing base of over 45,000 customers and millions of individual users worldwide."

Fourth Quarter 2018 Results Compared to Fourth Quarter 2017 Results:

  • Total GAAP revenue was $221.2 million, up 1.8%, with $199.9 million in GAAP recurring revenue, representing 90.4% of total GAAP revenue. GAAP recurring revenue was up 4.9%.
  • Total non-GAAP revenue was $221.8 million, up 1.2%, with $200.5 million in non-GAAP recurring revenue, representing 90.4% of total non-GAAP revenue. Non-GAAP recurring revenue was up 4.2%.
  • Non-GAAP organic recurring revenue increased 2.8%.
  • GAAP income from operations decreased 26.5% to $14.7 million, with GAAP operating margin decreasing 260 basis points to 6.6%.
  • Non-GAAP income from operations decreased 10.3% to $42.3 million, with non-GAAP operating margin decreasing 240 basis points to 19.1%.
  • GAAP net income decreased 74.5% to $9.3 million, with GAAP diluted earnings per share of $0.19, down $0.57.
  • Non-GAAP net income increased 3.5% to $31.3 million, with non-GAAP diluted earnings per share of $0.65, up $0.02.
  • Non-GAAP free cash flow was $50.7 million, an increase of 17.0%.

"Our fourth quarter results allowed us to exceed the mid-point of our updated full year revenue guidance, and exceed the high-end of our updated ranges for both profitability and cash flow," said Tony Boor, Blackbaud's executive vice president and CFO. "In 2019, we expect the positive shift in revenue mix towards recurring revenue to continue, and from a profitability and cash flow perspective, 2019 is an investment year to further expand our selling footprint, drive cloud innovation for our customers, and ensure scalability in our business."

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

Full-Year 2018 Results Compared to Full-Year 2017 Results:

  • Total GAAP revenue was $848.6 million, up 7.6%, with $762.2 million in GAAP recurring revenue, representing 89.8% of total GAAP revenue.
  • Total non-GAAP revenue was $851.0 million, up 7.6%, with $764.5 million in non-GAAP recurring revenue, representing 89.8% of total non-GAAP revenue. Non-GAAP recurring revenue was up 11.3%.
  • Non-GAAP organic recurring revenue increased 5.6%.
  • GAAP income from operations decreased 12.9% to $59.4 million, with GAAP operating margin decreasing 160 basis points to 7.0%.
  • Non-GAAP income from operations increased 2.3% to $170.5 million, with non-GAAP operating margin decreasing 110 basis points to 20.0%.
  • GAAP net income decreased 39.1% to $44.8 million, with GAAP diluted earnings per share down $0.61 to $0.93.
  • Non-GAAP net income increased 16.9% to $124.6 million, with non-GAAP diluted earnings per share up $0.36 to $2.59.
  • Non-GAAP free cash flow was $149.0 million, an increase of 8.2%.

Dividend
Blackbaud announced today that its Board of Directors has declared a first quarter 2019 dividend of $0.12 per share payable on March 15, 2019 to stockholders of record on February 27, 2019.

Financial Outlook
Blackbaud today announced its 2019 full year financial guidance, which includes the acquisition of YourCause:

  • Non-GAAP revenue of $880 million to $910 million
  • Non-GAAP operating margin of 16.7% to 17.2%
  • Non-GAAP diluted earnings per share of $2.11 to $2.28
  • Non-GAAP free cash flow of $124 million to $134 million

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

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. "Cost of services and other" has been renamed as "cost of one-time services and other" and consists of costs that did not meet the description of those related to "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 Securities and Exchange Commission on April 30, 2018. We have also made that information accessible via the Investor Relations section of our website.

Conference Call Details

What:

Blackbaud's Fourth Quarter and Full Year 2018 Conference Call

When:

February 7, 2019

Time:

8:00 a.m. (Eastern Time)

Live Call:

800-289-0462 (US/Canada); passcode 784893.

Webcast:

Blackbaud's Investor Relations Webpage

About Blackbaud
Blackbaud (NASDAQ: BLKB) is the world's leading cloud software company powering social good. Serving the entire social good community—nonprofits, foundations, companies, education institutions, healthcare organizations and individual change agents—Blackbaud connects and empowers organizations to increase their impact through cloud software, services, expertise and data intelligence. The Blackbaud portfolio is tailored to the unique needs of vertical markets, with solutions for fundraising and CRM, marketing, advocacy, peer-to-peer fundraising, corporate social responsibility, school management, ticketing, grantmaking, financial management, payment processing and analytics. Serving the industry for more than three decades, Blackbaud is headquartered in Charleston, South Carolina and has operations in the United States, Australia, Canada and the United Kingdom. For more information, visit www.blackbaud.com, or follow us on Twitter, LinkedIn, and Facebook.

Investor Contact:


Media Contact:


Mark Furlong


Brian Kosoy


Director of Investor Relations


Director, External Affairs


843-654-2097


843-654-3004


mark.furlong@blackbaud.com 


brian.kosoy@blackbaud.com 


Forward-Looking Statements
Except for historical information, all of the statements, expectations, and assumptions contained in this news release are forward-looking statements which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding: the predictability of our financial results, expectations that our revenue will continue to grow, and expectations that we will achieve our projected 2019 full-year financial guidance. These statements involve a number of risks and uncertainties. Although Blackbaud attempts to be accurate in making these forward-looking statements, it is possible that future circumstances might differ from the assumptions on which such statements are based. In addition, other important factors that could cause results to differ materially include the following: management of integration of acquired companies; uncertainty regarding increased business and renewals from existing customers; a shifting revenue mix that may impact gross margin; continued success in sales growth; risks related to our dividend policy and stock repurchase program, including the possibility that we might discontinue payment of dividends; and the other risk factors set forth from time to time in the SEC filings for Blackbaud, copies of which are available free of charge at the SEC's website at 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 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.

 


Blackbaud, Inc.
Consolidated balance sheets
(Unaudited)


(dollars in thousands)

December 31,
 2018


December 31,
 2017


Assets



Current assets:



Cash and cash equivalents

$

30,866


$

29,830


Restricted cash due to customers

418,980


610,344


Accounts receivable, net of allowance of $4,722 and $5,141 at December 31,
2018 and December 31, 2017, respectively

86,595


95,679


Customer funds receivable

1,753


1,536


Prepaid expenses and other current assets

59,788


61,978


  Total current assets

597,982


799,367


Property and equipment, net

40,031


42,243


Software development costs, net

75,099


54,098


Goodwill

545,213


530,249


Intangible assets, net

291,617


314,651


Other assets

65,363


57,238


Total assets

$

1,615,305


$

1,797,846


Liabilities and stockholders' equity



Current liabilities:



Trade accounts payable

$

34,538


$

24,693


Accrued expenses and other current liabilities

46,893


54,399


Due to customers

420,733


611,880


Debt, current portion

7,500


8,576


Deferred revenue, current portion

295,991


275,063


  Total current liabilities

805,655


974,611


Debt, net of current portion

379,624


429,648


Deferred tax liability

44,291


48,023


Deferred revenue, net of current portion

2,564


3,643


Other liabilities

9,388


5,632


Total liabilities

1,241,522


1,461,557


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, 59,327,633
and 58,551,761 shares issued at December 31, 2018 and December 31, 2017,
respectively

59


59


Additional paid-in capital

399,241


351,042


Treasury stock, at cost; 10,760,574 and 10,475,794 shares at December 31,
2018 and December 31, 2017, respectively

(266,884)


(239,199)


Accumulated other comprehensive loss

(5,110)


(642)


Retained earnings

246,477


225,029


Total stockholders' equity

373,783


336,289


Total liabilities and stockholders' equity

$

1,615,305


$

1,797,846


 

 


Blackbaud, Inc.
Consolidated statements of comprehensive income
(Unaudited)


(dollars in thousands, except per share amounts)

Three months ended
 December 31,



Years ended
 December 31,


2018


2017



2018


2017


Revenue






Recurring

$

199,930


$

190,641



$

762,181


$

684,583


One-time services and other

21,288


26,761



86,425


103,904


Total revenue

221,218


217,402



848,606


788,487


Cost of revenue






Cost of recurring

83,517


80,839



305,481


277,639


Cost of one-time services and other

19,779


21,583



76,261


84,265


Total cost of revenue

103,296


102,422



381,742


361,904


Gross profit

117,922


114,980



466,864


426,583


Operating expenses






Sales, marketing and customer success

49,801


43,336



192,848


169,559


Research and development

23,338


22,264



98,811


89,911


General and administrative

27,962


27,520



106,354


94,870


Amortization

1,137


1,107



4,844


3,271


Restructuring

1,005


794



4,590


794


Total operating expenses

103,243


95,021



407,447


358,405


Income from operations

14,679


19,959



59,417


68,178


Interest expense

(3,938)


(3,412)



(15,898)


(12,097)


Other income, net

744


679



1,103


2,260


Income before provision for income taxes

11,485


17,226



44,622


58,341


Income tax provision (benefit)

2,151


(19,412)



(219)


(15,292)


Net income

$

9,334


$

36,638



$

44,841


$

73,633


Earnings per share






Basic

$

0.20


$

0.78



$

0.95


$

1.58


Diluted

$

0.19


$

0.76



$

0.93


$

1.54


Common shares and equivalents outstanding






Basic weighted average shares

47,300,931


46,794,744



47,206,669


46,669,440


Diluted weighted average shares

48,025,617


48,014,250



48,045,084


47,775,702


Dividends per share

$

0.12


$

0.12



$

0.48


$

0.48


Other comprehensive (loss) income






Foreign currency translation adjustment

(3,885)


(484)



(5,218)


(789)


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

(1,827)


840



583


751


Total other comprehensive (loss) income

(5,712)


356



(4,635)


(38)


Comprehensive income

$

3,622


$

36,994



$

40,206


$

73,595


 

 

Blackbaud, Inc.
Consolidated statements of cash flows
(Unaudited)



Years ended
 December 31,


(dollars in thousands)

2018


2017


Cash flows from operating activities



Net income

$

44,841


$

73,633


Adjustments to reconcile net income to net cash provided by operating activities:



Depreciation and amortization

79,566


73,948


Provision for doubtful accounts and sales returns

6,890


11,686


Stock-based compensation expense

48,274


40,631


Deferred taxes

(619)


(17,814)


Amortization of deferred financing costs and discount

752


838


Other non-cash adjustments

(1,912)


504


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



  Accounts receivable

2,166


(15,821)


  Prepaid expenses and other assets

(5,217)


(9,550)


  Trade accounts payable

9,487


1,024


  Accrued expenses and other liabilities

(2,027)


(4,973)


  Deferred revenue

19,184


22,184


 Net cash provided by operating activities

201,385


176,290


Cash flows from investing activities



Purchase of property and equipment

(14,719)


(10,208)


Capitalized software development costs

(37,629)


(28,345)


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

(44,943)


(146,789)


Purchase of derivative instruments


(568)


Proceeds from settlement of derivative instruments


1,030


Other investing activities

(500)



 Net cash used in investing activities

(97,791)


(184,880)


Cash flows from financing activities



Proceeds from issuance of debt

270,900


774,500


Payments on debt

(322,476)


(679,119)


Debt issuance costs


(3,085)


Employee taxes paid for withheld shares upon equity award settlement

(27,685)


(23,962)


Proceeds from exercise of stock options

11


15


Change in due to customers

(188,502)


226,717


Change in customer funds receivable

(844)


6,644


Dividend payments to stockholders

(23,312)


(23,069)


 Net cash provided by (used in) financing activities

(291,908)


278,641


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

(2,014)


(550)


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

(190,328)


269,501


Cash, cash equivalents, and restricted cash, beginning of year

640,174


370,673


Cash, cash equivalents, and restricted cash, end of year

$

449,846


$

640,174


 

 

Blackbaud, Inc.
Consolidated statements of cash flows
(Unaudited)


The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the condensed 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,
 2018


December 31,
 2017


Cash and cash equivalents

$

30,866


$

29,830


Restricted cash due to customers

418,980


610,344


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

$

449,846


$

640,174


 

 

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,


2018


2017



2018


2017


GAAP Revenue

$

221,218


$

217,402



$

848,606


$

788,487


Non-GAAP adjustments:






Add: Acquisition-related deferred revenue write-down

571


1,799



2,409


2,496


Non-GAAP revenue

$

221,789


$

219,201



$

851,015


$

790,983








GAAP gross profit

$

117,922


$

114,980



$

466,864


$

426,583


GAAP gross margin

53.3

%

52.9

%


55.0

%

54.1

%

Non-GAAP adjustments:






Add: Acquisition-related deferred revenue write-down

571


1,799



2,409


2,496


Add: Stock-based compensation expense

1,232


795



5,242


3,470


Add: Amortization of intangibles from business
combinations

10,545


10,196



42,233


40,099


Add: Employee severance

52


21



918


994


Add: Acquisition-related integration costs




25


86


Subtotal

12,400


12,811



50,827


47,145


Non-GAAP gross profit

$

130,322


$

127,791



$

517,691


$

473,728


Non-GAAP gross margin

58.8

%

58.3

%


60.8

%

59.9

%







GAAP income from operations

$

14,679


$

19,959



$

59,417


$

68,178


GAAP operating margin

6.6

%

9.2

%


7.0

%

8.6

%

Non-GAAP adjustments:






Add: Acquisition-related deferred revenue write-down

571


1,799



2,409


2,496


Add: Stock-based compensation expense

12,591


9,576



48,274


40,631


Add: Amortization of intangibles from business
combinations

11,682


11,303



47,077


43,370


Add: Employee severance

533


1,351



2,246


4,345


Add: Acquisition-related integration costs

300


353



3,683


966


Add: Acquisition-related expenses

972


2,063



2,846


5,914


Add: Restructuring costs

1,005


794



4,590


794


Subtotal

27,654


27,239



111,125


98,516


Non-GAAP income from operations

$

42,333


$

47,198



$

170,542


$

166,694


Non-GAAP operating margin

19.1

%

21.5

%


20.0

%

21.1

%







GAAP income before provision for income taxes

$

11,485


$

17,226



$

44,622


$

58,341


GAAP net income

$

9,334


$

36,638



$

44,841


$

73,633








Shares used in computing GAAP diluted earnings per share

48,025,617


48,014,250



48,045,084


47,775,702


GAAP diluted earnings per share

$

0.19


$

0.76



$

0.93


$

1.54








Non-GAAP adjustments:






Add: GAAP income tax provision (benefit)

2,151


(19,412)



(219)


(15,292)


Add: Total non-GAAP adjustments affecting income from
operations

27,654


27,239



111,125


98,516


Add (less): Loss (gain) on derivative instrument


10




(462)


Add: Loss on debt extinguishment





299


Non-GAAP income before provision for income taxes

39,139


44,475



155,747


156,694


Assumed non-GAAP income tax provision(1)

7,828


14,232



$

31,149


$

50,142


Non-GAAP net income

$

31,311


$

30,243



$

124,598


$

106,552








Shares used in computing non-GAAP diluted earnings per
share

48,025,617


48,014,250



48,045,084


47,775,702


Non-GAAP diluted earnings per share

$

0.65


$

0.63



$

2.59


$

2.23



(1)

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 2017 measures of non-GAAP net income and non-GAAP diluted earnings per share are calculated under Blackbaud's historical non-GAAP effective tax rate of 32.0%.

 

 


Blackbaud, Inc.
Reconciliation of GAAP to Non-GAAP financial measures (continued)
(Unaudited)


(dollars in thousands)

Three months ended
 December 31,



Years ended
 December 31,


2018


2017



2018


2017


GAAP revenue

$

221,218


$

217,402



$

848,606


$

788,487


GAAP revenue growth

1.8

%



7.6

%


(Less) Add: Non-GAAP acquisition-related revenue (1)

(2,117)


1,799



(4,911)


32,832


Total Non-GAAP adjustments

(2,117)


1,799



(4,911)


32,832


Non-GAAP organic revenue (2)

$

219,101


$

219,201



$

843,695


$

821,319


Non-GAAP organic revenue growth

%



2.7

%








Non-GAAP organic revenue (2)

$

219,101


$

219,201



$

843,695


$

821,319


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

1,057




(2,402)



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

$

220,158


$

219,201



$

841,293


$

821,319


Non-GAAP organic revenue growth on constant
currency basis

0.4

%



2.4

%








GAAP recurring revenue

$

199,930


$

190,641



$

762,181


$

684,583


GAAP recurring revenue growth

4.9

%



11.3

%


(Less) Add: Non-GAAP acquisition-related revenue (1)

(2,116)


1,754



(4,782)


32,503


Total Non-GAAP adjustments

(2,116)


1,754



(4,782)


32,503


Non-GAAP organic recurring revenue

$

197,814


$

192,395



$

757,399


$

717,086


Non-GAAP organic recurring revenue growth

2.8

%



5.6

%



(1)

Non-GAAP acquisition-related revenue excludes incremental acquisition-related revenue calculated in accordance with GAAP that is attributable to companies acquired in the current fiscal year. For companies acquired in the immediately preceding fiscal year, non-GAAP acquisition-related revenue reflects presentation of full-year incremental non-GAAP revenue derived from such companies, as if they were combined throughout the prior period, and it includes the non-GAAP revenue from the acquisition-related deferred revenue write-down attributable to those companies.

(2)

Non-GAAP organic revenue for the prior year periods presented herein may not agree to non-GAAP organic revenue presented in the respective prior period quarterly financial information solely due to the manner in which non-GAAP organic revenue growth is calculated.

(3)

To determine non-GAAP organic revenue growth on a constant currency basis, revenues from entities reporting in foreign currencies were translated to U.S. Dollars using the comparable prior period's quarterly weighted average foreign currency exchange rates. The primary foreign currencies creating the impact are the Canadian Dollar, EURO, British Pound and Australian Dollar.

 

 


(dollars in thousands)

Years ended
 December 31,


2018


2017


GAAP net cash provided by operating activities

$

201,385


$

176,290


Less: purchase of property and equipment

(14,719)


(10,208)


Less: capitalized software development costs

(37,629)


(28,345)


Non-GAAP free cash flow

$

149,037


$

137,737


 

 

Power your passion (PRNewsfoto/Blackbaud)

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/blackbaud-announces-2018-fourth-quarter-and-full-year-results-300791136.html

SOURCE Blackbaud