Blackbaud announces 2017 fourth quarter and full year results

Blackbaud, the world’s leading cloud software company powering social good, announced financial results for its fourth quarter and fiscal year ended December 31, 2017.

“This was a big year for Blackbaud; we furthered our strategic growth objectives, were named to Fortune’s 56 ‘Companies Changing the World’ list, climbed IDC’s ranking to the world’s 24th largest cloud software vendor, and most importantly, accelerated the pace of innovation and drove outcomes for our growing base of over 40,000 customers,” said Mike Gianoni, Blackbaud’s president and CEO.

Fourth Quarter 2017 Results Compared to Fourth Quarter 2016 Results:

• Total GAAP revenue was $217.0 million, up 9.4%, with $181.9 million in GAAP recurring revenue, representing 83.8% of total GAAP revenue, and $151.9 million in GAAP subscription revenue, representing 70.0% of total GAAP revenue.
• Total non-GAAP revenue was $218.8 million, up 10.3%, with $183.7 million in non-GAAP recurring revenue, representing 84.0% of total non-GAAP revenue, and $153.7 million in non-GAAP subscription revenue, representing 70.3% of total non-GAAP revenue.
• Non-GAAP organic revenue increased 4.4%, non-GAAP organic recurring revenue increased 8.8%, and non-GAAP organic subscription revenue increased 16.2%.
• GAAP income from operations decreased 22.0% to $18.7 million, with GAAP operating margin decreasing 350 basis points to 8.6%.
• Non-GAAP income from operations increased 5.0% to $46.0 million, with non-GAAP operating margin decreasing 110 basis points to 21.0%.
• GAAP net income increased 77.7% to $30.7 million, with GAAP diluted earnings per share of $0.64, up $0.28.
• Non-GAAP net income increased 5.1% to $29.4 million, with non-GAAP diluted earnings per share of $0.61, up $0.02.
• Non-GAAP free cash flow was $43.4 million, a decrease of $0.6 million.

Recent Company Highlights:

• Blackbaud announced it will integrate its cloud fundraising and engagement solutions with Facebook fundraising solutions.
• Blackbaud, whose systems process a majority of the online donations made in the United Stateson #GivingTuesday, processed more than $61 million from over 7,000 organizations receiving donations on November 28, 2017.
• Blackbaud announced that Catherine Cook LaCour has been named Chief Marketing Officer, overseeing global marketing and the Blackbaud Institute for Philanthropic Impact™.
• Blackbaud completed the acquisition of U.K.-based JustGiving™, whose online social giving platform has played a powerful role in the growth of peer-to-peer fundraising.
• Forbes named Blackbaud a leading employer for diversity: America’s Best Employers for Diversity 2018.