Blackbaud announces total revenue increase of 14% for Q2 2013

Blackbaud, Inc. (NASDAQ: BLKB), a leading global provider of software and services for nonprofits, today announced financial results for its second quarter ended June 30, 2013.

“Blackbaud generated profitability that was ahead of our expectations as the cost rationalization efforts we have made in recent quarters are positively impacting our financial performance”

"Blackbaud generated strong second quarter results, with both revenue and profitability above the high-end of our guidance range," stated Marc Chardon, Chief Executive Officer of Blackbaud. "We saw strong performance across each of our business units and we are seeing positive signs that our integrated product strategy is resonating with customers and having a positive impact on our pipeline of opportunities."

Chardon added, "We see nonprofits across all sectors looking for ways to improve and increase their fundraising, and they are looking for powerful, easy-to-use technology that can help them meet their needs. We believe our best-of-breed offerings in both online fundraising and CRM position Blackbaud well to gain share in the multi-billion dollar nonprofit software market."

Second Quarter 2013 GAAP Financial Results

Blackbaud reported total revenue of $125.5 million for the second quarter of 2013, an increase of 14% compared to $110.2 million for the second quarter of 2012. GAAP income from operations and net income were $14.3 million and $6.6 million, respectively, compared to a loss of $1.9 million and $2.3 million, respectively, for the second quarter of 2012. Diluted earnings per share were $0.15 for the second quarter of 2013, compared to a loss of $0.05 in the same period last year.

Second Quarter 2013 Non-GAAP Financial Results

Total non-GAAP revenue, including $0.3 million of deferred revenue write-down associated with the Convio acquisition, was $125.7 million for the second quarter of 2013, which exceeded the high-end of the company's guidance. Non-GAAP income from operations, which excludes the write-down of Convio deferred revenue, stock-based compensation expense, amortization of intangibles arising from business combinations, integration and restructuring costs, and CEO severance costs, was $26.4 million for the second quarter of 2013, up from $19.3 million in the same period last year and above the high-end of the company's guidance. Non-GAAP net income was $15.0 million for the second quarter of 2013, up from $10.8 million in the same period last year. Non-GAAP diluted earnings per share were $0.33 for the second quarter of 2013, up from $0.25 in the same period last year and also above the high-end of the company's guidance.

A reconciliation between GAAP and non-GAAP results has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures."

"Blackbaud generated profitability that was ahead of our expectations as the cost rationalization efforts we have made in recent quarters are positively impacting our financial performance," said Tony Boor, Chief Financial Officer of Blackbaud. "The plans we have put in place to improve operational efficiency are yielding positive results which is allowing us to invest in our business."

Balance Sheet and Cash Flow

The company ended the second quarter with $7.3 million in cash, compared to $8.4 million on March 31, 2013. The company generated $24.5 million in cash flow from operations during the second quarter, returned $5.5 million to stockholders by way of dividend, invested $4.7 million in capital expenditures and capitalized software and reduced its debt balance by $15.5 million.

Dividend

Blackbaud announced today that its Board of Directors has approved a third quarter 2013 dividend of $0.12 per share payable on September 13, 2013, to stockholders of record on August 28, 2013.

SOURCE Blackbaud, Inc.