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Blackbaud Announces 2019 Second Quarter Results
Second Quarter Recurring Revenue Grows 8% Representing 92% of Total Revenue; Reaffirms 2019 Financial Guidance

CHARLESTON, S.C., July 30, 2019 /PRNewswire/ -- Blackbaud (NASDAQ: BLKB), the world's leading cloud software company powering social good, today announced financial results for its second quarter ended June 30, 2019.

"This year marks our 15th year as a Nasdaq listed public company, which is a testament to the incredible team we have and their dedication to drive powerful social impact and create shareholder value," said Mike Gianoni, Blackbaud's president and CEO. "We continued to drive market-specific innovation across our vertical markets. Soon we will be announcing general availability of Blackbaud Church Management, part of the Cloud Solution for Faith Communities, and we continue to see strong market traction with our new Education Management portfolio, part of the Cloud Solution for Higher Education."

Second Quarter 2019 Results Compared to Second Quarter 2018 Results:

  • Total GAAP revenue was $225.6 million, up 5.6%, with $208.5 million in GAAP recurring revenue, representing 92.4% of total GAAP revenue. GAAP recurring revenue was up 8.2%.
  • Total non-GAAP revenue was $226.4 million, up 5.5%, with $209.2 million in non-GAAP recurring revenue, representing 92.4% of total non-GAAP revenue. Non-GAAP recurring revenue was up 8.0%.
  • Non-GAAP organic recurring revenue increased 5.0%.
  • GAAP income from operations was $13.5 million, with GAAP operating margin of 6.0%, an increase of 70 basis points.
  • Non-GAAP income from operations was $43.5 million, with non-GAAP operating margin of 19.2%, a decrease of 190 basis points.
  • GAAP net income was $7.1 million, with GAAP diluted earnings per share of $0.15, up $0.01.
  • Non-GAAP net income was $31.9 million, with non-GAAP diluted earnings per share of $0.66, down $0.03.
  • Non-GAAP free cash flow was $38.0 million, a decrease of $3.6 million.

"Execution against our strategic plan drove solid results for the second quarter as we continue investing to further expand our selling footprint, drive cloud innovation for our customers and ensure scalability in our business," said Tony Boor, Blackbaud's executive vice president and CFO. "We're pleased with the progress of the new sales hires added to date as they ramp to targeted productivity, and we expect to continue hiring as we look to grow our full year sales headcount at an accelerated rate relative to our historical average."

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

Recent Company Highlights:

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

Dividend
Blackbaud announced today that its Board of Directors has declared a third quarter 2019 dividend of $0.12 per share payable on September 13, 2019 to stockholders of record on August 28, 2019.

Financial Outlook
Blackbaud today reaffirmed its 2019 full year financial guidance:

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

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

Adoption of New Lease Accounting Standard
On January 1, 2019, we adopted Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842) ("ASU 2016-02"), using the transition method that allowed us to initially apply the guidance at the adoption date of January 1, 2019 without adjusting comparative periods presented. ASU 2016-02 requires lessees to record most leases on their balance sheet but recognize expenses in the income statement in a manner similar to previous guidance. The impacts of adoption are reflected in Blackbaud's guidance and the other financial information herein. We have provided more detailed information regarding the impact of our adoption of ASU 2016-02 in our Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on May 3, 2019.

Conference Call Details
What: Blackbaud's 2019 Second Quarter Conference Call
When: July 31, 2019
Time: 8:00 a.m. (Eastern Time)
Live Call: 800-289-0462 (US/Canada); passcode 097160
Webcast: Blackbaud's Investor Relations Webpage

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

 

Investor Contact:

   

Media Contact:

Steve Hufford

   

media@blackbaud.com

Director of Investor Relations

     

843-654-2655

     

steve.hufford@blackbaud.com

     

 

Forward-Looking Statements
Except for historical information, all of the statements, expectations, and assumptions contained in this news release are forward-looking statements which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding: the predictability of our financial results, expectations that our revenue will continue to grow, and expectations that we will achieve our projected 2019 full-year financial guidance. These statements involve a number of risks and uncertainties. Although Blackbaud attempts to be accurate in making these forward-looking statements, it is possible that future circumstances might differ from the assumptions on which such statements are based. In addition, other important factors that could cause results to differ materially include the following: management of integration of acquired companies; uncertainty regarding increased business and renewals from existing customers; a shifting revenue mix that may impact gross margin; continued success in sales growth; risks related to our dividend policy and stock repurchase program, including the possibility that we might discontinue payment of dividends; and the other risk factors set forth from time to time in the SEC filings for Blackbaud, copies of which are available free of charge at the SEC's website at https://www.sec.gov or upon request from Blackbaud's investor relations department. Blackbaud assumes no obligation and does not intend to update these forward-looking statements, except as required by law.

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

Non-GAAP Financial Measures
Blackbaud has provided in this release financial information that has not been prepared in accordance with GAAP. This information includes non-GAAP revenue, non-GAAP recurring revenue, non-GAAP gross profit, non-GAAP gross margin, non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income and non-GAAP diluted earnings per share. Blackbaud has acquired businesses whose net tangible assets include deferred revenue. In accordance with GAAP reporting requirements, Blackbaud recorded write-downs of deferred revenue to fair value, which resulted in lower recognized revenue. Both on a quarterly and year-to-date basis, the revenue for the acquired businesses is deferred and typically recognized over a one-year period, so Blackbaud's GAAP revenues for the one-year period after the acquisitions will not reflect the full amount of revenues that would have been reported if the acquired deferred revenue was not written down to fair value. The non-GAAP measures described above reverse the acquisition-related deferred revenue write-downs so that the full amount of revenue booked by the acquired companies is included, which Blackbaud believes provides a more accurate representation of a revenue run-rate in a given period. In addition to reversing write-downs of acquisition-related deferred revenue, non-GAAP financial measures discussed above exclude the impact of certain items that Blackbaud believes are not directly related to its performance in any particular period, but are for its long-term benefit over multiple periods.

In addition, Blackbaud uses non-GAAP organic revenue growth, non-GAAP organic revenue growth on a constant currency basis and non-GAAP organic recurring revenue growth, in analyzing its operating performance. Blackbaud believes that these non-GAAP measures are useful to investors, as a supplement to GAAP measures, for evaluating the periodic growth of its business on a consistent basis. Each of these measures excludes incremental acquisition-related revenue attributable to companies acquired in the current fiscal year. For companies acquired in the immediately preceding fiscal year, each of these measures reflects presentation of full-year incremental non-GAAP revenue derived from such companies as if they were combined throughout the prior period, and it includes the non-GAAP revenue attributable to those companies, as if there were no acquisition-related write-downs of acquired deferred revenue to fair value as required by GAAP. In addition, each of these measures excludes prior period revenue associated with divested businesses. The exclusion of the prior period revenue is to present the results of the divested businesses within the results of the combined company for the same period of time in both the prior and current periods. Blackbaud believes this presentation provides a more comparable representation of its current business' organic revenue growth and revenue run-rate.

Non-GAAP free cash flow is defined as operating cash flow less capital expenditures, including costs required to be capitalized for software development, and capital expenditures for property and equipment.

Blackbaud uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating Blackbaud's ongoing operational performance. Blackbaud believes that these non-GAAP financial measures reflect Blackbaud's ongoing business in a manner that allows for meaningful period-to-period comparison and analysis of trends in its business. In addition, Blackbaud believes that the use of these non-GAAP financial measures provides additional information for investors to use in evaluating ongoing operating results and trends and in comparing its financial results from period-to-period with other companies in Blackbaud's industry, many of which present similar non-GAAP financial measures to investors. However, these non-GAAP financial measures may not be completely comparable to similarly titled measures of other companies due to differences in the exact method of calculation between companies. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures.

 

 

Blackbaud, Inc.

Consolidated balance sheets

(Unaudited)

 

 

 

 

(dollars in thousands)

June 30,
 2019

 

December 31,
 2018

 

Assets

   

Current assets:

   

Cash and cash equivalents

$

32,654

 

$

30,866

 

Restricted cash due to customers

354,133

 

418,980

 

Accounts receivable, net of allowance of $5,231 and $4,722 at June 30, 2019
and December 31, 2018, respectively

131,277

 

86,595

 

Customer funds receivable

5,349

 

1,753

 

Prepaid expenses and other current assets

76,728

 

59,788

 

Total current assets

600,141

 

597,982

 

Property and equipment, net

39,569

 

40,031

 

Operating lease right-of-use assets

107,165

 

 

Software development costs, net

87,880

 

75,099

 

Goodwill

632,269

 

545,213

 

Intangible assets, net

340,615

 

291,617

 

Other assets

66,319

 

65,363

 

Total assets

$

1,873,958

 

$

1,615,305

 

Liabilities and stockholders' equity

   

Current liabilities:

   

Trade accounts payable

$

35,749

 

$

34,538

 

Accrued expenses and other current liabilities

60,514

 

46,893

 

Due to customers

359,482

 

420,733

 

Debt, current portion

7,500

 

7,500

 

Deferred revenue, current portion

327,299

 

295,991

 

Total current liabilities

790,544

 

805,655

 

Debt, net of current portion

553,812

 

379,624

 

Deferred tax liability

48,658

 

44,291

 

Deferred revenue, net of current portion

2,324

 

2,564

 

Operating lease liabilities, net of current portion

100,116

 

 

Other liabilities

5,802

 

9,388

 

Total liabilities

1,501,256

 

1,241,522

 

Commitments and contingencies

   

Stockholders' equity:

   

Preferred stock; 20,000,000 shares authorized, none outstanding

 

 

Common stock, $0.001 par value; 180,000,000 shares authorized, 60,187,063
and 59,327,633 shares issued at June 30, 2019 and December 31, 2018,
respectively

60

 

59

 

Additional paid-in capital

427,950

 

399,241

 

Treasury stock, at cost; 11,017,004 and 10,760,574 shares at June 30, 2019
and December 31, 2018, respectively

(286,644)

 

(266,884)

 

Accumulated other comprehensive loss

(9,409)

 

(5,110)

 

Retained earnings

240,745

 

246,477

 

Total stockholders' equity

372,702

 

373,783

 

Total liabilities and stockholders' equity

$

1,873,958

 

$

1,615,305

 

 

 

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

 

(dollars in thousands, except per share amounts)

Three months ended
 June 30,

   

Six months ended
 June 30,

 

2019

 

2018

   

2019

 

2018

 

Revenue

         

Recurring

$

208,468

 

$

192,749

   

$

406,562

 

$

373,595

 

One-time services and other

17,166

 

20,923

   

34,902

 

44,261

 

Total revenue

225,634

 

213,672

   

441,464

 

417,856

 

Cost of revenue

         

Cost of recurring

86,657

 

76,350

   

171,368

 

145,429

 

Cost of one-time services and other

14,150

 

18,822

   

28,722

 

37,780

 

Total cost of revenue

100,807

 

95,172

   

200,090

 

183,209

 

Gross profit

124,827

 

118,500

   

241,374

 

234,647

 

Operating expenses

         

Sales, marketing and customer success

55,009

 

48,493

   

110,464

 

93,970

 

Research and development

25,902

 

25,297

   

54,363

 

51,255

 

General and administrative

28,543

 

28,447

   

55,660

 

53,498

 

Amortization

1,152

 

1,201

   

2,528

 

2,470

 

Restructuring

730

 

3,688

   

2,683

 

4,499

 

Total operating expenses

111,336

 

107,126

   

225,698

 

205,692

 

Income from operations

13,491

 

11,374

   

15,676

 

28,955

 

Interest expense

(5,799)

 

(4,303)

   

(11,122)

 

(7,820)

 

Other income, net

2,181

 

346

   

2,363

 

506

 

Income before provision for income taxes

9,873

 

7,417

   

6,917

 

21,641

 

Income tax provision (benefit)

2,733

 

825

   

899

 

(2,702)

 

Net income

$

7,140

 

$

6,592

   

$

6,018

 

$

24,343

 

Earnings per share

         

Basic

$

0.15

 

$

0.14

   

$

0.13

 

$

0.52

 

Diluted

$

0.15

 

$

0.14

   

$

0.13

 

$

0.51

 

Common shares and equivalents outstanding

         

Basic weighted average shares

47,714,621

 

47,222,657

   

47,622,740

 

47,121,692

 

Diluted weighted average shares

48,160,684

 

48,053,094

   

48,101,212

 

48,030,547

 

Other comprehensive (loss) income

         

Foreign currency translation adjustment

(6,018)

 

(8,817)

   

(1,428)

 

(2,380)

 

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

(1,939)

 

765

   

(2,871)

 

1,844

 

Total other comprehensive loss

(7,957)

 

(8,052)

   

(4,299)

 

(536)

 

Comprehensive (loss) income

$

(817)

 

$

(1,460)

   

$

1,719

 

$

23,807

 

 

 

 

Blackbaud, Inc.

Consolidated statements of cash flows

(Unaudited)

 

 

 

 
 

Six months ended
 June 30,

 

(dollars in thousands)

2019

 

2018

 

Cash flows from operating activities

   

Net income

$

6,018

 

$

24,343

 

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

   

Depreciation and amortization

43,113

 

39,847

 

Provision for doubtful accounts and sales returns

4,646

 

3,697

 

Stock-based compensation expense

28,755

 

24,953

 

Deferred taxes

465

 

1,121

 

Amortization of deferred financing costs and discount

376

 

376

 

Other non-cash adjustments

1,982

 

(419)

 

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

   

Accounts receivable

(45,071)

 

(38,092)

 

Prepaid expenses and other assets

(12,725)

 

(18,629)

 

Trade accounts payable

216

 

6,327

 

Accrued expenses and other liabilities

(9,014)

 

(6,675)

 

Deferred revenue

26,328

 

29,545

 

Net cash provided by operating activities

45,089

 

66,394

 

Cash flows from investing activities

   

Purchase of property and equipment

(6,375)

 

(9,575)

 

Capitalized software development costs

(23,206)

 

(16,359)

 

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

(109,386)

 

(45,315)

 

Other investing activities

500

 

 

Net cash used in investing activities

(138,467)

 

(71,249)

 

Cash flows from financing activities

   

Proceeds from issuance of debt

329,100

 

173,500

 

Payments on debt

(155,150)

 

(132,150)

 

Employee taxes paid for withheld shares upon equity award settlement

(19,760)

 

(25,184)

 

Proceeds from exercise of stock options

6

 

11

 

Change in due to customers

(107,808)

 

(309,189)

 

Change in customer funds receivable

(3,741)

 

(4,391)

 

Dividend payments to stockholders

(11,802)

 

(11,653)

 

Net cash provided by (used in) financing activities

30,845

 

(309,056)

 

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

(526)

 

(1,606)

 

Net decrease in cash, cash equivalents and restricted cash

(63,059)

 

(315,517)

 

Cash, cash equivalents and restricted cash, beginning of period

449,846

 

640,174

 

Cash, cash equivalents and restricted cash, end of period

$

386,787

 

$

324,657

 

 

The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown above in the consolidated statements of cash flows:

 

(dollars in thousands)

June 30,
 2019

 

December 31,
 2018

 

Cash and cash equivalents

$

32,654

 

$

30,866

 

Restricted cash due to customers

354,133

 

418,980

 

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

$

386,787

 

$

449,846

 

 

 

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

 

(dollars in thousands, except per share amounts)

Three months ended
 June 30,

   

Six months ended
 June 30,

 

2019

 

2018

   

2019

 

2018

 

GAAP Revenue

$

225,634

 

$

213,672

   

$

441,464

 

$

417,856

 

Non-GAAP adjustments:

         

Add: Acquisition-related deferred revenue write-down

716

 

919

   

1,432

 

1,267

 

Non-GAAP revenue

$

226,350

 

$

214,591

   

$

442,896

 

$

419,123

 
           

GAAP gross profit

$

124,827

 

$

118,500

   

$

241,374

 

$

234,647

 

GAAP gross margin

55.3

%

55.5

%

 

54.7

%

56.2

%

Non-GAAP adjustments:

         

Add: Acquisition-related deferred revenue write-down

716

 

919

   

1,432

 

1,267

 

Add: Stock-based compensation expense

791

 

1,645

   

1,765

 

2,740

 

Add: Amortization of intangibles from business combinations

11,329

 

10,677

   

22,745

 

21,063

 

Add: Employee severance

(4)

 

12

   

1,115

 

587

 

Add: Acquisition-related integration costs

 

25

   

 

25

 

Subtotal

12,832

 

13,278

   

27,057

 

25,682

 

Non-GAAP gross profit

$

137,659

 

$

131,778

   

$

268,431

 

$

260,329

 

Non-GAAP gross margin

60.8

%

61.4

%

 

60.6

%

62.1

%

           

GAAP income from operations

$

13,491

 

$

11,374

   

$

15,676

 

$

28,955

 

GAAP operating margin

6.0

%

5.3

%

 

3.6

%

6.9

%

Non-GAAP adjustments:

         

Add: Acquisition-related deferred revenue write-down

716

 

919

   

1,432

 

1,267

 

Add: Stock-based compensation expense

15,029

 

13,861

   

28,755

 

24,953

 

Add: Amortization of intangibles from business combinations

12,481

 

11,878

   

25,273

 

23,533

 

Add: Employee severance

191

 

100

   

3,612

 

1,031

 

Add: Acquisition-related integration costs

464

 

2,194

   

1,182

 

2,627

 

Add: Acquisition-related expenses

365

 

1,211

   

810

 

1,605

 

Add: Restructuring costs

730

 

3,688

   

2,683

 

4,499

 

Subtotal

29,976

 

33,851

   

63,747

 

59,515

 

Non-GAAP income from operations

$

43,467

 

$

45,225

   

$

79,423

 

$

88,470

 

Non-GAAP operating margin

19.2

%

21.1

%

 

17.9

%

21.1

%

           

GAAP income before provision for income taxes

$

9,873

 

$

7,417

   

$

6,917

 

$

21,641

 

GAAP net income

$

7,140

 

$

6,592

   

$

6,018

 

$

24,343

 
           

Shares used in computing GAAP diluted earnings per share

48,160,684

 

48,053,094

   

48,101,212

 

48,030,547

 

GAAP diluted earnings per share

$

0.15

 

$

0.14

   

$

0.13

 

$

0.51

 
           

Non-GAAP adjustments:

         

Add: GAAP income tax provision (benefit)

2,733

 

825

   

899

 

(2,702)

 

Add: Total non-GAAP adjustments affecting income from operations

29,976

 

33,851

   

63,747

 

59,515

 

Non-GAAP income before provision for income taxes

39,849

 

41,268

   

70,664

 

81,156

 

Assumed non-GAAP income tax provision(1)

7,970

 

8,254

   

$

14,133

 

$

16,232

 

Non-GAAP net income

$

31,879

 

$

33,014

   

$

56,531

 

$

64,924

 
           

Shares used in computing non-GAAP diluted earnings per share

48,160,684

 

48,053,094

   

48,101,212

 

48,030,547

 

Non-GAAP diluted earnings per share

$

0.66

 

$

0.69

   

$

1.18

 

$

1.35

 
 

(1)  Blackbaud applies a non-GAAP effective tax rate of 20.0% when calculating non-GAAP net income and non-GAAP diluted earnings per share.

 


 

 

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

   
 

(dollars in thousands)

Three months ended
 June 30,

   

Six months ended
 June 30,

 
 

2019

 

2018

   

2019

 

2018

 
 

GAAP revenue

$

225,634

 

$

213,672

   

$

441,464

 

$

417,856

 
 

GAAP revenue growth

5.6

%

   

5.6

%

 
 

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

(4,558)

 

1,771

   

(8,944)

 

4,485

 
 

Non-GAAP organic revenue (2)

$

221,076

 

$

215,443

   

$

432,520

 

$

422,341

 
 

Non-GAAP organic revenue growth

2.6

%

   

2.4

%

 
             
 

Non-GAAP organic revenue (2)

$

221,076

 

$

215,443

   

$

432,520

 

$

422,341

 
 

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

2,177

 

   

3,956

 

 
 

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

$

223,253

 

$

215,443

   

$

436,476

 

$

422,341

 
 

Non-GAAP organic revenue growth on constant currency basis

3.6

%

   

3.3

%

 
             
 

GAAP recurring revenue

$

208,468

 

$

192,749

   

$

406,562

 

$

373,595

 
 

GAAP recurring revenue growth

8.2

%

   

8.8

%

 
 

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

(4,298)

 

1,717

   

(8,473)

 

4,316

 
 

Non-GAAP organic recurring revenue

$

204,170

 

$

194,466

   

$

398,089

 

$

377,911

 
 

Non-GAAP organic recurring revenue growth

5.0

%

   

5.3

%

 
   

(1)

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

(2)

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

(3)

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

   
 

(dollars in thousands)

             

Six months ended
 June 30,

 
             

2019

 

2018

 
 

GAAP net cash provided by operating activities

             

$

45,089

 

$

66,394

 
 

Less: purchase of property and equipment

             

(6,375)

 

(9,575)

 
 

Less: capitalized software development costs

             

(23,206)

 

(16,359)

 
 

Non-GAAP free cash flow

             

$

15,508

 

$

40,460

 
 

 

Power your passion (PRNewsfoto/Blackbaud)

 

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/blackbaud-announces-2019-second-quarter-results-300893513.html

SOURCE Blackbaud