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Blackbaud Announces 2021 Second Quarter Results
Second Quarter Cash Flow from Operations Increases $8 Million Year-Over-Year with Non-GAAP Free Cash Flow Margin of 25%

CHARLESTON, S.C., Aug. 3, 2021 /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, 2021.

"Blackbaud had another strong quarter as our market's progress toward a post-pandemic recovery and the shift to a digital-first world continues to accelerate," said Mike Gianoni, president and CEO, Blackbaud. "We have so much to be excited about as a company. This year marks Blackbaud's 40th anniversary; and since day one, our focus has been on building a better world. Given our strong performance through the first half of 2021, we are well positioned for further success as we look ahead to the second half of this year and the next several years. We're making excellent progress executing against our strategic plan that will move us further toward our long-term aspirational goal of achieving the Rule of 40 through a balance of organic revenue growth and improved profitability."

Second Quarter 2021 Results Compared to Second Quarter 2020 Results:

  • Total GAAP revenue was $229.4 million, down 1.1%, with $217.0 million in GAAP recurring revenue, up 0.3%.
  • Non-GAAP organic recurring revenue increased 0.3%.
  • GAAP income from operations was $13.0 million, with GAAP operating margin of 5.7%, a decrease of 270 basis points.
  • Non-GAAP income from operations was $54.1 million, with non-GAAP operating margin of 23.6%, an increase of 10 basis points.
  • GAAP net income was $6.7 million, with GAAP diluted earnings per share of $0.14, down $0.10 per share.
  • Non-GAAP net income was $39.7 million, with non-GAAP diluted earnings per share of $0.82, down $0.03 per share.
  • Non-GAAP adjusted EBITDA was $65.8 million, down $3.1 million, with non-GAAP adjusted EBITDA margin of 28.7%.
  • GAAP net cash provided by operating activities was $69.8 million, an increase of $7.8 million.
  • Non-GAAP free cash flow was $56.6 million, an increase of $8.4 million.

"We had another solid quarter of execution, and our first half performance combined with our latest modeling suggests our upside revenue scenarios for the full year are looking more likely," said Tony Boor, executive vice president and CFO, Blackbaud. "Second quarter recurring revenue growth was roughly flat year-over-year inclusive of the tough compare in our payments revenue, which was expected given the elevated volumes we saw at the onset of the pandemic. Our contractual recurring revenue, which is the core of our business, grew during the quarter, and the trends we're seeing in bookings and renewals bode well for continued growth in the second half. We are continuing to make critical investments in the business, and our plans call for the level of investment to increase in the second half. Year-to-date we've generated roughly $74 million of free cash flow, and thus we feel very confident we will exceed the $100 million floor we set for 2021, with our latest models suggesting we could generate at least $120 million to $130 million of free cash flow this year. We will also continue executing against our capital deployment strategy focused on maximizing value for our shareholders. This includes opportunistic share repurchases and a renewed focus on M&A."

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

  • During the second quarter, Blackbaud repurchased 405,047 shares of its common stock at a total cost of $30 million, leaving approximately $151 million remaining under existing share repurchase authorization of $250 million.
  • The company released its ninth-annual Industry Review providing key learnings and trends related to companies' corporate social responsibility (CSR) programs and employees' philanthropic behavior.
  • Blackbaud launched a Payment Terminal solution that allows Arts and Cultural organizations to receive secure, contactless chip and tap payments for tickets and donations.
  • General availability of Blackbaud Peer-to-Peer Fundraising was announced in Canada, and in Australia and New Zealand, enabling organizations around the world to connect their supporters to the power of JustGiving, the world's largest giving platform, without subscription or set-up costs.
  • Blackbaud celebrated 40 years in business, marking four decades of the company's commitment to powering social good and helping good take over.
  • For the second consecutive year, Blackbaud's annual conference, bbcon, will be virtual and free for all to attend.
  • Blackbaud appointed Chris Singh as senior vice president of Customer Success.

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

Conference Call Details

What:

Blackbaud's 2021 Second Quarter Conference Call

When:

August 4, 2021 

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 world's leading cloud software company powering social good. Serving the entire social good community—nonprofits, higher education institutions, K–12 schools, healthcare organizations, faith communities, arts and cultural organizations, foundations, companies 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 four decades, Blackbaud is headquartered in Charleston, South Carolina, and has operations in the United States, Australia, Canada, Costa Rica and the United Kingdom. For more information, visit www.blackbaud.com, or follow us on Twitter, LinkedIn, Instagram, and Facebook.

Investor Contact:

 

Media Contact:

 

Steve Hufford

 

media@blackbaud.com

 

Director, Investor Relations                

     

IR@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; uncertainty regarding the COVID-19 disruption; 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.

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.

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.

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; depreciation; amortization of intangible assets from business combinations; amortization of software development costs; acquisition-related deferred revenue write-down; stock-based compensation; acquisition-related integration costs; acquisition-related expenses; employee severance; restructuring and other real estate activities; and security Incident-related costs, net of insurance.

Blackbaud, Inc. 

Consolidated Balance Sheets

(Unaudited)

 

(dollars in thousands)

June 30,
2021

December 31,
2020

Assets

   

Current assets:

   

Cash and cash equivalents

$

28,288

 

$

35,750

 

Restricted cash

434,567

 

609,219

 

Accounts receivable, net of allowance of $9,911 and $10,292 at June 30, 2021 and December 31, 2020, respectively

119,270

 

95,404

 

Customer funds receivable

5,390

 

321

 

Prepaid expenses and other current assets

103,493

 

78,366

 

Total current assets

691,008

 

819,060

 

Property and equipment, net

104,914

 

105,177

 

Operating lease right-of-use assets

22,630

 

22,671

 

Software development costs, net

116,562

 

111,827

 

Goodwill

637,510

 

635,854

 

Intangible assets, net

260,072

 

277,506

 

Other assets

70,666

 

72,639

 

Total assets

$

1,903,362

 

$

2,044,734

 

Liabilities and stockholders' equity

   

Current liabilities:

   

Trade accounts payable

$

30,605

 

$

27,836

 

Accrued expenses and other current liabilities

55,808

 

52,228

 

Due to customers

438,633

 

608,264

 

Debt, current portion

12,911

 

12,840

 

Deferred revenue, current portion

339,670

 

312,236

 

Total current liabilities

877,627

 

1,013,404

 

Debt, net of current portion

531,973

 

518,193

 

Deferred tax liability

56,227

 

54,086

 

Deferred revenue, net of current portion

5,749

 

4,678

 

Operating lease liabilities, net of current portion

17,173

 

17,357

 

Other liabilities

9,339

 

10,866

 

Total liabilities

1,498,088

 

1,618,584

 

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, 62,332,714 and 60,904,638 shares issued at June 30, 2021 and December 31, 2020, respectively

62

 

61

 

Additional paid-in capital

605,486

 

544,963

 

Treasury stock, at cost; 13,451,524 and 12,054,268 shares at June 30, 2021 and December 31, 2020, respectively

(449,877)

 

(353,091)

 

Accumulated other comprehensive income (loss)

6,291

 

(2,497)

 

Retained earnings

243,312

 

236,714

 

Total stockholders' equity

405,274

 

426,150

 

Total liabilities and stockholders' equity

$

1,903,362

 

$

2,044,734

 

 

 

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,

2021

2020

 

2021

2020

Revenue

         

Recurring

$

216,986

 

$

216,260

   

$

423,736

 

$

421,127

 

One-time services and other

12,454

 

15,731

   

24,895

 

34,485

 

Total revenue

229,440

 

231,991

   

448,631

 

455,612

 

Cost of revenue

         

Cost of recurring

94,435

 

91,370

   

183,300

 

180,921

 

Cost of one-time services and other

13,635

 

13,569

   

28,155

 

28,883

 

Total cost of revenue

108,070

 

104,939

   

211,455

 

209,804

 

Gross profit

121,370

 

127,052

   

237,176

 

245,808

 

Operating expenses

         

Sales, marketing and customer success

45,452

 

51,954

   

94,245

 

110,689

 

Research and development

30,222

 

24,895

   

59,401

 

49,872

 

General and administrative

32,008

 

29,842

   

62,595

 

55,697

 

Amortization

567

 

729

   

1,116

 

1,470

 

Restructuring

78

 

50

   

132

 

74

 

Total operating expenses

108,327

 

107,470

   

217,489

 

217,802

 

Income from operations

13,043

 

19,582

   

19,687

 

28,006

 

Interest expense

(5,054)

 

(3,893)

   

(10,168)

 

(8,052)

 

Other income (expense), net

487

 

630

   

(523)

 

1,700

 

Income before provision for income taxes

8,476

 

16,319

   

8,996

 

21,654

 

Income tax provision

1,745

 

4,496

   

2,429

 

5,192

 

Net income

$

6,731

 

$

11,823

   

$

6,567

 

$

16,462

 

Earnings per share

         

Basic

$

0.14

 

$

0.25

   

$

0.14

 

$

0.34

 

Diluted

$

0.14

 

$

0.24

   

$

0.14

 

$

0.34

 

Common shares and equivalents outstanding

         

Basic weighted average shares

47,756,326

 

48,239,928

   

47,560,847

 

48,138,125

 

Diluted weighted average shares

48,444,874

 

48,418,378

   

48,444,658

 

48,465,077

 

Other comprehensive income (loss)

         

Foreign currency translation adjustment

1,783

 

(887)

   

4,294

 

(6,615)

 

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

345

 

551

   

4,494

 

(2,571)

 

Total other comprehensive income (loss)

2,128

 

(336)

   

8,788

 

(9,186)

 

Comprehensive income

$

8,859

 

$

11,487

   

$

15,355

 

$

7,276

 

 

 

Blackbaud, Inc. 

Consolidated Statements of Cash Flows

(Unaudited)

 
 

Six months ended
June 30,

(dollars in thousands)

2021

2020

Cash flows from operating activities

   

  Net income

$

6,567

 

$

16,462

 

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

   

Depreciation and amortization

40,742

 

46,088

 

Provision for credit losses and sales returns

4,418

 

6,677

 

Stock-based compensation expense

60,554

 

33,713

 

Deferred taxes

276

 

1,945

 

Amortization of deferred financing costs and discount

879

 

376

 

Other non-cash adjustments

155

 

477

 

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

   

Accounts receivable

(27,134)

 

(48,167)

 

Prepaid expenses and other assets

(18,162)

 

(7,068)

 

Trade accounts payable

2,356

 

(8,984)

 

Accrued expenses and other liabilities

1,443

 

(26,520)

 

Deferred revenue

27,828

 

22,489

 

Net cash provided by operating activities

99,922

 

37,488

 

Cash flows from investing activities

   

Purchase of property and equipment

(6,128)

 

(5,887)

 

Capitalized software development costs

(19,862)

 

(21,679)

 

Net cash used in investing activities

(25,990)

 

(27,566)

 

Cash flows from financing activities

   

Proceeds from issuance of debt

128,300

 

202,100

 

Payments on debt

(113,477)

 

(185,250)

 

Employee taxes paid for withheld shares upon equity award settlement

(38,712)

 

(20,996)

 

Proceeds from exercise of stock options

 

4

 

Change in due to customers

(170,061)

 

(121,612)

 

Change in customer funds receivable

(5,014)

 

(828)

 

Purchase of treasury stock

(58,074)

 

 

Dividend payments to stockholders

 

(5,960)

 

Net cash used in financing activities

(257,038)

 

(132,542)

 

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

992

 

(2,229)

 

Net decrease in cash, cash equivalents and restricted cash

(182,114)

 

(124,849)

 

Cash, cash equivalents and restricted cash, beginning of period

644,969

 

577,295

 

Cash, cash equivalents and restricted cash, end of period

$

462,855

 

$

452,446

 

 

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,
2021

December 31,
2020

Cash and cash equivalents

$

28,288

 

$

35,750

 

Restricted cash

434,567

 

609,219

 

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

$

462,855

 

$

644,969

 

 

 

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,

2021

2020

 

2021

2020

GAAP Revenue

$

229,440

 

$

231,991

   

$

448,631

 

$

455,612

 
           

GAAP gross profit

$

121,370

 

$

127,052

   

$

237,176

 

$

245,808

 

GAAP gross margin

52.9

%

54.8

%

 

52.9

%

54.0

%

Non-GAAP adjustments:

         

Add: Stock-based compensation expense

5,237

 

2,570

   

10,595

 

3,435

 

Add: Amortization of intangibles from business combinations

8,880

 

9,686

   

18,008

 

20,616

 

Add: Employee severance

15

 

781

   

15

 

813

 

Subtotal

14,132

 

13,037

   

28,618

 

24,864

 

Non-GAAP gross profit

$

135,502

 

$

140,089

   

$

265,794

 

$

270,672

 

Non-GAAP gross margin

59.1

%

60.4

%

 

59.2

%

59.4

%

           

GAAP income from operations

$

13,043

 

$

19,582

   

$

19,687

 

$

28,006

 

GAAP operating margin

5.7

%

8.4

%

 

4.4

%

6.1

%

Non-GAAP adjustments:

         

Add: Stock-based compensation expense

30,549

 

20,133

   

60,554

 

33,713

 

Add: Amortization of intangibles from business combinations

9,447

 

10,415

   

19,124

 

22,086

 

Add: Employee severance

451

 

4,264

   

1,442

 

4,361

 

Add: Acquisition-related integration costs

 

(71)

   

(98)

 

(103)

 

Add: Acquisition-related expenses

64

 

85

   

129

 

224

 

Add: Restructuring and other real estate activities

118

 

50

   

7

 

74

 

Add: Security Incident-related costs, net of insurance(1)

470

 

   

470

 

 

Subtotal

41,099

 

34,876

   

81,628

 

60,355

 

Non-GAAP income from operations

$

54,142

 

$

54,458

   

$

101,315

 

$

88,361

 

Non-GAAP operating margin

23.6

%

23.5

%

 

22.6

%

19.4

%

           

GAAP income before provision for income taxes

$

8,476

 

$

16,319

   

$

8,996

 

$

21,654

 

GAAP net income

$

6,731

 

$

11,823

   

$

6,567

 

$

16,462

 
           

Shares used in computing GAAP diluted earnings per share

48,444,874

 

48,418,378

   

48,444,658

 

48,465,077

 

GAAP diluted earnings per share

$

0.14

 

$

0.24

   

$

0.14

 

$

0.34

 
           

Non-GAAP adjustments:

         

Add: GAAP income tax provision

1,745

 

4,496

   

2,429

 

5,192

 

Add: Total non-GAAP adjustments affecting income from operations

41,099

 

34,876

   

81,628

 

60,355

 

Non-GAAP income before provision for income taxes

49,575

 

51,195

   

90,624

 

82,009

 

Assumed non-GAAP income tax provision(2)

9,915

 

10,239

   

$

18,125

 

$

16,402

 

Non-GAAP net income

$

39,660

 

$

40,956

   

$

72,499

 

$

65,607

 
           

Shares used in computing non-GAAP diluted earnings per share

48,444,874

 

48,418,378

   

48,444,658

 

48,465,077

 

Non-GAAP diluted earnings per share

$

0.82

 

$

0.85

   

$

1.50

 

$

1.35

 
 

(1)

Includes Security Incident-related costs incurred during the three and six months ended June 30, 2021 of $11.7 million and $24.4 million, respectively, net of probable insurance recoveries during the same periods of $11.2 million and $23.9 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. Not included in this adjustment were costs associated with enhancements to our cybersecurity program.

(2)

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,

2021

2020

 

2021

2020

GAAP revenue

$

229,440

 

$

231,991

   

$

448,631

 

$

455,612

 

GAAP revenue growth

(1.1)

%

   

(1.5)

%

 

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

 

   

 

 

Non-GAAP organic revenue(2)

$

229,440

 

$

231,991

   

$

448,631

 

$

455,612

 

Non-GAAP organic revenue growth

(1.1)

%

   

(1.5)

%

 
           

Non-GAAP organic revenue(2)

$

229,440

 

$

231,991

   

$

448,631

 

$

455,612

 

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

(4,390)

 

   

(6,343)

 

 

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

$

225,050

 

$

231,991

   

$

442,288

 

$

455,612

 

Non-GAAP organic revenue growth on constant currency basis

(3.0)

%

   

(2.9)

%

 
           

GAAP recurring revenue

$

216,986

 

$

216,260

   

$

423,736

 

$

421,127

 

GAAP recurring revenue growth

0.3

%

   

0.6

%

 

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

 

   

 

 

Non-GAAP organic recurring revenue

$

216,986

 

$

216,260

   

$

423,736

 

$

421,127

 

Non-GAAP organic recurring revenue growth

0.3

%

   

0.6

%

 
 

(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 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
June 30,

 

Six months ended
June 30,

2021

2020

 

2021

2020

GAAP net income

$

6,731

 

$

11,823

   

$

6,567

 

$

16,462

 

Non-GAAP adjustments:

         

Add: Interest, net

4,977

 

3,783

   

9,939

 

7,420

 

Add: GAAP income tax provision

1,745

 

4,496

   

2,429

 

5,192

 

Add: Depreciation

3,140

 

3,595

   

6,351

 

7,136

 

Add: Amortization of intangibles from business combinations

9,447

 

10,415

   

19,124

 

22,086

 

Add: Amortization of software development costs(1)

8,119

 

10,367

   

16,082

 

17,039

 

Subtotal

27,428

 

32,656

   

53,925

 

58,873

 

Non-GAAP EBITDA

$

34,159

 

$

44,479

   

$

60,492

 

$

75,335

 

Non-GAAP EBITDA margin

14.9

%

   

13.5

%

 
           

Non-GAAP adjustments:

         

Add: Stock-based compensation expense

30,549

 

20,133

   

60,554

 

33,713

 

Add: Employee severance

451

 

4,264

   

1,442

 

4,361

 

Add: Acquisition-related integration costs

 

(71)

   

(98)

 

(103)

 

Add: Acquisition-related expenses

64

 

85

   

129

 

224

 

Add: Restructuring and other real estate activities

118

 

50

   

7

 

74

 

Add: Security Incident-related costs, net of insurance(2)

470

 

   

470

 

 

Subtotal

31,652

 

24,461

   

62,504

 

38,269

 

Adjusted Non-GAAP EBITDA

$

65,811

 

$

68,940

   

$

122,996

 

$

113,604

 

Adjusted Non-GAAP EBITDA margin

28.7

%

   

27.4

%

 
           

Rule of 40(3)

27.6

%

   

25.9

%

 
 

(1)

Includes amortization expense related to software development costs and amortization expense from capitalized cloud computing implementation costs.

(2)

Includes Security Incident-related costs incurred, net of probable insurance recoveries. See additional details in the reconciliation of GAAP to Non-GAAP operating income above.

(3)

Measured by non-GAAP organic revenue growth plus non-GAAP adjusted EBITDA margin. See Non-GAAP organic revenue growth table above.

 

 

(dollars in thousands)

Six months ended
June 30,

2021

2020

GAAP net cash provided by operating activities                              

$

99,922

 

$

37,488

 

Less: purchase of property and equipment

(6,128)

 

(5,887)

 

Less: capitalized software development costs

(19,862)

 

(21,679)

 

Non-GAAP free cash flow

$

73,932

 

$

9,922

 

 

Power your passion (PRNewsfoto/Blackbaud)

 

 

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SOURCE Blackbaud, Inc.