By Liz Segrist
Published Feb. 13, 2014
Looking ahead, the Daniel Island-based technology firm plans to increase investment in its sales and marketing efforts, build upon online fundraising products and mobile solutions, and transition to a recurring revenue company, Boor said.
“We continue to see our customers shifting toward subscription and cloud-based products and services,” Boor said. “Our continued product optimization and innovation efforts are designed to seize opportunities presented by this trend, while we support our leading product and service offering to the nonprofit organization marketplace.”
The non-GAAP income excludes the deferred revenue write-down associated with the Convio acquisition, stock-based compensation expense, amortization of intangibles arising from business combinations, acquisition integration costs, restructuring costs, CEO and employee severance.
Non-GAAP net income was $58 million for the full year, compared with $42.3 million for 2012. Non-GAAP diluted earnings per share increased by 34.7% to $1.28 for the full year, compared with $0.95 for 2012.
“2013 brought significant changes to our company. It was a year of challenge and transition,” said Boor, noting the company launched new products and transitioned leadership twice.
On his first earnings call as president and CEO, Michael Gianoni said he plans to focus on increasing profitability, transitioning to a subscription-based model and focusing on product optimization in 2014.
“Our financial goals for 2014 reflect a heightened level of operating investments in areas that we expect will fuel accelerated growth, strengthen our competitive advantages and enable greater efficiencies throughout our global operations,” he said. “Many of these investments will provide significant leverage in our business model, which we expect will increase growth and profitability in 2015, and beyond.”
For the fourth quarter of 2013, Blackbaud’s non-GAAP revenue was $134.9 million, up from $120 million.
Non-GAAP income from operations was $25.1 million for the fourth quarter of 2013, up 12.7% from the same period last year. Non-GAAP net income increased by 20.4% to $14.5 million for the fourth quarter of 2013.
Non-GAAP diluted earnings per share were $0.32 for the fourth quarter of 2013, up from $0.27 in the same period last year.
“In the fourth quarter, the Blackbaud team delivered a solid finish to a very strong overall year in 2013,” Boor said. “Each of our business units performed well, with double-digit growth of recurring revenue in both our enterprise and general markets business units.”
Gianoni said he has spent his first month at Blackbaud meeting with the company’s senior team and management and immersing himself in the business.
Gianoni said his career spent at technology firms, most recently as Fiserv Inc.’s group president of the financial institutions group, has prepared him well to lead Blackbaud’s growth.
“I’m very excited to be here today and be part of Blackbaud here in Charleston ... I want to energize and lead the growth as a leading technology company serving nonprofit organizations.”
Blackbaud is traded on the NASDAQ under stock symbol BLKB.