Blackbaud revenue up 10.4% for 1Q

By Liz Segrist
Published May 5, 2014

Blackbaud reported total revenue of $127.6 million for the first quarter, up 10.4% from this time last year, according to first-quarter results for the period ended March 31.

The Daniel Island-based technology firm, which provides software and services for nonprofits, saw its operations income and net income increase from a year ago under generally accepted accounting principles.

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Operations income was $9.3 million for the first quarter, up 102% from the first quarter of 2013. Net income was $3.8 million for the first quarter, up roughly 40% from a year prior.

Diluted earnings per share were 8 cents for the first quarter of 2014, compared with 6 cents in the same period last year.

Blackbaud also generated $13.3 million of cash flow from operations in the first quarter.

“We have been investing in areas targeted to accelerate growth, increase total recurring revenue and continue to increase our operational efficiencies,” said Blackbaud CFO Tony Boor.

First-quarter company growth was driven by higher than expected growth in analytics, international and payments, as well as growth from other recurring revenue sources, according to Blackbaud President and CEO Mike Gianoni during the earnings call Thursday.

Looking ahead, Gianoni said the company will continue to focus on accelerating organic growth, optimizing its product portfolio and increasing both recurring revenue and operating efficiencies to “drive sustainable, high-quality growth in revenue, operating profit and cash flow over the long term.”

Blackbaud also reported non-GAAP results, which provide an “adjusted” earnings perspective that excludes nonrecurring items, such as costs associated with a restructure, for instance.

Blackbaud reported non-GAAP organic revenue growth of 6.9%, which includes $3.7 million of incremental revenue in the first quarter of 2013 as the company had applied gross revenue accounting for payments solutions on a basis consistent with the current period.

Non-GAAP income from operations — which excludes a write-down of acquisition-related deferred revenue, stock-based compensation expense, amortization of intangibles arising from business combinations, CEO transition costs, acquisition-related integration costs and restructuring costs — was $19.9 million for the first quarter of 2014, down from $20.9 million in the same period last year.

Non-GAAP net income, which also excludes a loss from debt extinguishment and termination of derivative instruments, was $11.1 million for the first quarter of 2014, down from $11.8 million in the same period last year.

Reach staff writer Liz Segrist at 843-849-3119 or @lizsegrist on Twitter.

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