Blackbaud Inc., a Daniel Island-based tech company, reported an increase in revenue year over year for the third quarter. The company also adjusted its revenue and earnings guidance for the full year during a conference call today.
By Matt Tomsic
Published Nov. 1, 2012
Blackbaud Inc. reported increased revenue year over year and logged $2.8 million in net income for the third quarter, the company announced today.
Revenue increased 28% compared to the same period last year, but earnings fell by $7.4 million year over year, driven in part by increased expenses in sales and marketing, research and development, and other administrative costs.
For the third quarter, total operating expenses increased from $39.7 million last year to $61.2 million this year.
CEO Marc Chardon said the quarter was the first full quarter to include financial results from the company’s acquisition of Convio. The integration of the two companies impacted Blackbaud’s financial results, including its constituent relationship management systems, or CRM, deals. Some internal changes caused delays in some of those deals as the two companies integrated, Chardon said.
“It wouldn’t have been twice the number of CRM deals but would have been five or six opposed to four,” he said, adding the integration growing pains are now behind the company.
Blackbaud also adjusted its earnings guidance, pegging operating earnings for the year between $72 and $73 million, which is in the range of the previous guidance of between $72 and $75 million. The company reduced its total revenue guidance for the year by roughly $10 million to between $451 and $453 million.
Chardon said Blackbaud is finding $9 to $10 million in savings from its operating expenses and cost of goods.