Blackbaud Newsroom

Blackbaud Announces 2021 Second Quarter Results

Second Quarter Cash Flow from Operations Increases $8 Million Year-Over-Year with Non-GAAP Free Cash Flow Margin of 25%

Charleston, S.C. (August 3, 2021) Blackbaud (NASDAQ: BLKB), the world’s leading cloud software company powering social good, today announced financial results for its second quarter ended June 30, 2021.

“Blackbaud had another strong quarter as our market’s progress toward a post-pandemic recovery and the shift to a digital-first world continues to accelerate,” said Mike Gianoni, president and CEO, Blackbaud. “We have so much to be excited about as a company. This year marks Blackbaud’s 40th anniversary; and since day one, our focus has been on building a better world. Given our strong performance through the first half of 2021, we are well positioned for further success as we look ahead to the second half of this year and the next several years. We’re making excellent progress executing against our strategic plan that will move us further toward our long-term aspirational goal of achieving the Rule of 40 through a balance of organic revenue growth and improved profitability.”

Second Quarter 2021 Results Compared to Second Quarter 2020 Results:

  • Total GAAP revenue was $229.4 million, down 1.1%, with $217.0 million in GAAP recurring revenue, up 0.3%.
  • Non-GAAP organic recurring revenue increased 0.3%.
  • GAAP income from operations was $13.0 million, with GAAP operating margin of 5.7%, a decrease of 270 basis points.
  • Non-GAAP income from operations was $54.1 million, with non-GAAP operating margin of 23.6%, an increase of 10 basis points.
  • GAAP net income was $6.7 million, with GAAP diluted earnings per share of $0.14, down $0.10 per share.
  • Non-GAAP net income was $39.7 million, with non-GAAP diluted earnings per share of $0.82, down $0.03 per share.
  • Non-GAAP adjusted EBITDA was $65.8 million, down $3.1 million, with non-GAAP adjusted EBITDA margin of 28.7%.
  • GAAP net cash provided by operating activities was $69.8 million, an increase of $7.8 million. 
  • Non-GAAP free cash flow was $56.6 million, an increase of $8.4 million.

“We had another solid quarter of execution, and our first half performance combined with our latest modeling suggests our upside revenue scenarios for the full year are looking more likely,” said Tony Boor, executive vice president and CFO, Blackbaud. “Second quarter recurring revenue growth was roughly flat year-over-year inclusive of the tough compare in our payments revenue, which was expected given the elevated volumes we saw at the onset of the pandemic. Our contractual recurring revenue, which is the core of our business, grew during the quarter, and the trends we’re seeing in bookings and renewals bode well for continued growth in the second half. We are continuing to make critical investments in the business, and our plans call for the level of investment to increase in the second half. Year-to-date we’ve generated roughly $74 million of free cash flow, and thus we feel very confident we will exceed the $100 million floor we set for 2021, with our latest models suggesting we could generate at least $120 million to $130 million of free cash flow this year. We will also continue executing against our capital deployment strategy focused on maximizing value for our shareholders. This includes opportunistic share repurchases and a renewed focus on M&A.”

An explanation of all non-GAAP financial measures referenced in this press release is included below under the heading “Non-GAAP Financial Measures.” A reconciliation of the company’s Non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included below in this press release.

Recent Company Highlights

  • During the second quarter, Blackbaud repurchased 405,047 shares of its common stock at a total cost of $30 million, leaving approximately $151 million remaining under existing share repurchase authorization of $250 million. 
  • The company released its ninth-annual Industry Review providing key learnings and trends related to companies’ corporate social responsibility (CSR) programs and employees’ philanthropic behavior.
  • Blackbaud launched a Payment Terminal solution that allows Arts and Cultural organizations to receive secure, contactless chip and tap payments for tickets and donations.
  • General availability of Blackbaud Peer-to-Peer Fundraising was announced in Canada, and in Australia and New Zealand, enabling organizations around the world to connect their supporters to the power of JustGiving, the world’s largest giving platform, without subscription or set-up costs.
  • Blackbaud celebrated 40 years in business, marking four decades of the company’s commitment to powering social good and helping good take over.
  • For the second consecutive year, Blackbaud’s annual conference, bbcon, will be virtual and free for all to attend.
  • Blackbaud appointed Chris Singh as senior vice president of Customer Success.

Visit for more information about Blackbaud’s recent highlights.

Conference Call Details

What: Blackbaud’s 2021 Second Quarter Conference Call

When: August 4, 2021 

Time: 8:00 a.m. (Eastern Time)

Live Call: 1-877-407-3088 (US/Canada)

Webcast: Blackbaud’s Investor Relations Webpage

About Blackbaud 
Blackbaud (NASDAQ: BLKB) is the world’s leading cloud software company powering social good. Serving the entire social good community—nonprofits, higher education institutions, K–12 schools, healthcare organizations, faith communities, arts and cultural organizations, foundations, companies and individual change agents—Blackbaud connects and empowers organizations to increase their impact through cloud software, services, expertise and data intelligence. The Blackbaud portfolio is tailored to the unique needs of vertical markets, with solutions for fundraising and CRM, marketing, advocacy, peer-to-peer fundraising, corporate social responsibility, school management, ticketing, grantmaking, financial management, payment processing and analytics. Serving the industry for four decades, Blackbaud is headquartered in Charleston, South Carolina, and has operations in the United States, Australia, Canada, Costa Rica and the United Kingdom. For more information, visit, or follow us on Twitter, LinkedIn, Instagram, and Facebook.

Investor Contact:

Steve Hufford
Director, Investor Relations

Media Contact:

Forward-Looking Statements
Except for historical information, all of the statements, expectations, and assumptions contained in this news release are forward-looking statements which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding the predictability of our financial condition and results of operations. These statements involve a number of risks and uncertainties. Although Blackbaud attempts to be accurate in making these forward-looking statements, it is possible that future circumstances might differ from the assumptions on which such statements are based. In addition, other important factors that could cause results to differ materially include the following: management of integration of acquired companies; uncertainty regarding increased business and renewals from existing customers; a shifting revenue mix that may impact gross margin; continued success in sales growth; cybersecurity and data protection risks and related liabilities; uncertainty regarding the COVID-19 disruption; potential litigation involving us; and the other risk factors set forth from time to time in the SEC filings for Blackbaud, copies of which are available free of charge at the SEC’s website at or upon request from Blackbaud’s investor relations department. Blackbaud assumes no obligation and does not intend to update these forward-looking statements, except as required by law.

All Blackbaud product names appearing herein are trademarks or registered trademarks of Blackbaud, Inc.

Non-GAAP Financial Measures 
Blackbaud has provided in this release financial information that has not been prepared in accordance with GAAP. Blackbaud uses non-GAAP financial measures internally in analyzing its operational performance. Accordingly, Blackbaud believes these non-GAAP measures are useful to investors, as a supplement to GAAP measures, in evaluating its ongoing operational performance and trends and in comparing its financial results from period-to-period with other companies in Blackbaud’s industry, many of which present similar non-GAAP financial measures to investors. However, these non-GAAP financial measures may not be completely comparable to similarly titled measures of other companies due to potential differences in the exact method of calculation between companies.

The non-GAAP financial measures discussed above exclude the impact of certain transactions that Blackbaud believes are not directly related to its operating performance in any particular period, but are for its long-term benefit over multiple periods. Blackbaud believes these non-GAAP financial measures reflect its ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of trends in its business.

While Blackbaud believes these non-GAAP measures provide useful supplemental information, non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliations of these non-GAAP measures to their most directly comparable GAAP financial measures.

Non-GAAP free cash flow is defined as operating cash flow less capital expenditures, including costs required to be capitalized for software development, and capital expenditures for property and equipment.

In addition, Blackbaud uses non-GAAP organic revenue growth, non-GAAP organic revenue growth on a constant currency basis and non-GAAP organic recurring revenue growth, in analyzing its operating performance. Blackbaud believes that these non-GAAP measures are useful to investors, as a supplement to GAAP measures, for evaluating the periodic growth of its business on a consistent basis. Each of these measures excludes incremental acquisition-related revenue attributable to companies acquired in the current fiscal year. For companies acquired in the immediately preceding fiscal year, each of these measures reflects presentation of full-year incremental non-GAAP revenue derived from such companies as if they were combined throughout the prior period, and it includes the non-GAAP revenue attributable to those companies, as if there were no acquisition-related write-downs of acquired deferred revenue to fair value as required by GAAP. In addition, each of these measures excludes prior period revenue associated with divested businesses. The exclusion of the prior period revenue is to present the results of the divested businesses within the results of the combined company for the same period of time in both the prior and current periods. Blackbaud believes this presentation provides a more comparable representation of its current business’ organic revenue growth and revenue run-rate.

Rule of 40 is defined as non-GAAP organic revenue growth plus non-GAAP adjusted EBITDA margin. Non-GAAP adjusted EBITDA is defined as GAAP net income plus interest, net; income tax provision; depreciation; amortization of intangible assets from business combinations; amortization of software development costs; acquisition-related deferred revenue write-down; stock-based compensation; acquisition-related integration costs; acquisition-related expenses; employee severance; restructuring and other real estate activities; and security Incident-related costs, net of insurance.