PrintPrintThe Daniel Island-based software development company’s earnings were up 34% from the same quarter last year. Earnings per share were $0.22 for the quarter ended Sept. 30, up from $0.17 in the same quarter of 2008.
Staff Report
Published Oct. 29, 2009
Blackbaud Inc., which provides software and related fundraising services for nonprofit organizations, reported Wednesday it had earnings of $9.8 million in the third quarter.
The Daniel Island-based company’s earnings were up 34% from the same quarter last year. Earnings per share were 22 cents for the quarter ended Sept. 30, up from 17 cents in the same quarter of 2008.
Blackbaud reported that revenue was down about 1% from the third quarter of 2008. Expenses were down about 7%.
In an earnings conference call on Wednesday afternoon, Marc Chardon, the company’s president and CEO, said he expects Blackbaud to exceed its 20% operating margin target for the year.
Blackbaud is continuing a shift to greater reliance on recurring revenue from subscriptions, rather than on license fees, which Chardon said is a positive trend for shareholders. Subscription revenue remained the highest-growth revenue component in the third quarter.
“It seems it was a short time ago when we were attempting to predict when subscriptions would eventually be larger than license revenue,” Chardon said. “In Q3, subscriptions were more than three times as large as license revenue, which now is the smallest contributor to our total revenue.”
In the third quarter, Blackbaud signed contracts to provide fundraising software to two major universities — the University of Michigan and The Ohio State University. Chardon said he expects Blackbaud will be able to leverage those deals to win additional higher education customers in the future.
“From an overall perspective, I am more encouraged about Blackbaud’s overall market position than at any time since I have been with the company,” Chardon said.
Also Wednesday, Blackbaud declared a fourth-quarter dividend of 10 cents per share, payable on Dec. 15 to stockholders of record on Nov. 27. As of Sept. 30, the company had about $30 million remaining under its common stock share repurchase program, which was authorized more than a year ago.
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