false000128005800012800582025-02-182025-02-18

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 18, 2025
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Blackbaud, Inc.
(Exact name of registrant as specified in its charter)
Delaware000-5060011-2617163
(State or other jurisdiction of incorporation)
(Commission File Number)(IRS Employer ID Number)
65 Fairchild Street, Charleston, South Carolina 29492
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (843) 216-6200
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities Registered Pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of Each Exchange on which Registered
Common Stock, $0.001 Par ValueBLKBNasdaq Global Select Market
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02. Results of Operations and Financial Condition.
On February 18, 2025, Blackbaud, Inc. (the "Company") issued a press release reporting unaudited financial results for the quarter and fiscal year ended December 31, 2024. A copy of this press release is attached hereto as Exhibit 99.1.
The information in this Form 8-K (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
Exhibit No.Description
Press release dated February 18, 2025 reporting unaudited financial results for the quarter and fiscal year ended December 31, 2024.
101.INSInline XBRL Instance Document - the Instance Document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL Document.
101.DEFInline XBRL Taxonomy Extension Definition Linkbase Document.
101.LABInline XBRL Taxonomy Extension Label Linkbase Document.
101.PREInline XBRL Taxonomy Extension Presentation Linkbase Document.
104Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).



SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
BLACKBAUD, INC.
Date: February 18, 2025/s/ Anthony W. Boor
Anthony W. Boor
Executive Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer)



 Exhibit 99.1
 
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PRESS RELEASE


Blackbaud Announces 2024 Fourth Quarter and Full Year Results
Charleston, S.C. (February 18, 2025) — Blackbaud (NASDAQ: BLKB), the leading provider of software for powering social impact, today announced financial results for its fourth quarter and full year ended December 31, 2024.
"2024 is a reflection of our successful work in solidifying Blackbaud’s attractive and improving financial model over the past five years where our revenue, cash flows and Rule of 40 metrics have all improved significantly," said Mike Gianoni, president, CEO and vice chairman of the board of directors, Blackbaud. "This success is the result of a proven operating plan, continuous product innovation, refinement of our go-to-market programs, a focus on efficiencies and effectiveness, and a steadfast dedication to not only powering social impact but centering it in all we do with both our customers and employees. Blackbaud’s multi-year trajectory will also be built on these tenets, and when combined with our future opportunities, we see a path to becoming a Rule of 45 company by 2030."
Fourth Quarter 2024 Results Compared to Fourth Quarter 2023 Results:
•GAAP total revenue was $302.2 million, up 2.4% and non-GAAP organic revenue increased 3.2%.
•GAAP recurring revenue was $296.2 million, up 3.1% and represented 98% of total revenue. Non-GAAP organic recurring revenue increased 3.1%.
•GAAP loss from operations was $367.1 million, inclusive of aggregate pre-tax EVERFI impairment and disposition charges of $405.4 million, with GAAP operating margin of (121.5)%, a decrease of 13,250 basis points.
•Non-GAAP income from operations was $82.7 million, with non-GAAP operating margin of 27.4%, a decrease of 100 basis points.
•GAAP net loss was $330.8 million, inclusive of aggregate pre-tax EVERFI impairment and disposition charges of $405.4 million, with GAAP diluted loss per share of $6.74, down $6.84 per share.
•Non-GAAP net income was $54.4 million, with non-GAAP diluted earnings per share of $1.08, down $0.06 per share.
•Non-GAAP adjusted EBITDA was $102.2 million, up $3.0 million, with non-GAAP adjusted EBITDA margin of 33.8%, an increase of 20 basis points.
•GAAP net cash provided by operating activities was $73.6 million, an increase of $76.9 million, with GAAP operating cash flow margin of 24.3%, an increase of 2,540 basis points.
•Non-GAAP free cash flow was $56.5 million, an increase of $75.1 million, with non-GAAP free cash flow margin of 18.7%, an increase of 2,500 basis points.
•Non-GAAP adjusted free cash flow was $57.3 million, an increase of $21.0 million, with non-GAAP adjusted free cash flow margin of 19.0%, an increase of 670 basis points.
"During 2024 we achieved several significant milestones, including the divestment of EVERFI and the finalization of nearly all of our outstanding security litigation efforts," said Tony Boor, executive vice president and CFO, Blackbaud. “By putting these items behind us, the company is 100% focused on providing our customers and prospects powerful solutions to allow them to spend more time on what matters to them: making a concrete difference through their vital social impact work and easing their administrative burdens.”


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PRESS RELEASE
"To our existing and prospective shareholders, we remain committed to delivering an attractive financial investment balanced between top-line growth, profitability, and cash flow, all of which are supported by our proven operating plan. In 2024, we repurchased 10% of our outstanding stock and if you add back in net share settlement on employee stock compensation, the number moves to 11%. We plan to continue to be purposeful about buying back our stock in 2025, anticipating buying back 3% to 5% of our total outstanding shares as we look to deliver on Blackbaud’s compelling investment thesis.”
An explanation of all non-GAAP financial measures referenced in this press release, including the Rule of 40, 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
•Blackbaud announced the sale of its EVERFI Inc. business to a private investment firm unaffiliated with Blackbaud.
•Blackbaud appointed Bradley Pyburn, former chief of staff of U.S. Cyber Command, to its board of directors.
•At its semi-annual Product Update Briefings in November, Blackbaud showcased recent innovation and future roadmap direction across its suite of solutions, diving further into the six waves of innovation the company announced at bbcon 2024.
•Blackbaud celebrated GivingTuesday, kicking off the global giving holiday at Nasdaq and also supporting customers through a Giving Glow-Up Giveaway contest for Blackbaud Donation Form users.
•For the fourth consecutive year, Blackbaud was named to Newsweek’s list of America’s Most Responsible Companies, which recognizes U.S.-based companies for their commitment to making a positive global impact.
•The company announced that its 2025 annual major gift will support the Center for Disaster Philanthropy (CDP), a nonprofit organization that helps individuals, foundations and corporations increase the effectiveness of their philanthropic response to disasters and humanitarian crises.
•Blackbaud marked five years of its Social Good Startup Program, which has now supported 77 startups with a 92% success rate, providing cutting edge social impact technology to the sector. The program welcomed its 10th cohort in January.
•Blackbaud announced an industry-leading partnership with True Impact® to bring predictive, outcome-based impact data into Blackbaud Impact Edge™, the company’s AI-powered social impact reporting and storytelling solution for YourCause® from Blackbaud® corporate customers.
•The company rolled out Blackbaud Donation Forms in Australia and New Zealand, with its Optimized Donation Forms now available for Raiser’s Edge NXT® users and its Standard and Optimized Donation Forms now available for Blackbaud CRM™ users in the region.
Visit www.blackbaud.com/newsroom for more information about Blackbaud’s recent highlights.
Full-Year 2024 Results Compared to Full-Year 2023 Results:
•GAAP total revenue was $1.2 billion, up 4.5% and non-GAAP organic revenue increased 5.2%.
•GAAP recurring revenue was $1.1 billion, up 5.4% and represented 98% of total revenue. Non-GAAP organic recurring revenue increased 5.4%.
•GAAP loss from operations was $270.5 million, inclusive of aggregate pre-tax EVERFI impairment and disposition charges of $405.4 million, with GAAP operating margin of (23.4)%, a decrease of 2,740 basis points.
•Non-GAAP income from operations was $320.1 million, with non-GAAP operating margin of 27.7%, an increase of 110 basis points.
•GAAP net loss was $283.2 million, inclusive of aggregate pre-tax EVERFI impairment and disposition charges of $405.4 million, with GAAP diluted loss per share of $5.60, down $5.63 per share.
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PRESS RELEASE
•Non-GAAP net income was $210.7 million, with non-GAAP diluted earnings per share of $4.07, up $0.09 per share.
•Non-GAAP adjusted EBITDA was $388.9 million, up $32.4 million, with non-GAAP adjusted EBITDA margin of 33.7%, an increase of 150 basis points.
•GAAP net cash provided by operating activities was $296.0 million, an increase of $96.3 million, with GAAP operating cash flow margin of 25.6%, an increase of 750 basis points.
•Non-GAAP free cash flow was $228.8 million, an increase $93.3 million, with non-GAAP free cash flow margin of 19.8%, an increase of 750 basis points.
•Non-GAAP adjusted free cash flow was $244.7 million, an increase of $31.2 million, with non-GAAP adjusted free cash flow margin of 21.2%, an increase of 190 basis points.
Financial Outlook
Blackbaud today announced its 2025 full year financial guidance:
•GAAP revenue of $1.115 billion to $1.125 billion
◦Organic revenue growth at constant currency of 4.5% to 5.4%
•Non-GAAP adjusted EBITDA margin of 34.9% to 35.9%
•Non-GAAP earnings per share of $4.16 to $4.35
•Non-GAAP adjusted free cash flow of $185 million to $195 million
Included in its 2025 full year financial guidance are the following updated assumptions:
•Non-GAAP annualized effective tax rate is expected to be approximately 24.5%
•Interest expense for the year is expected to be approximately $65 million to $69 million
•Fully diluted shares for the year are expected to be approximately 48.5 million to 49.5 million
•Capital expenditures for the year are expected to be approximately $55 million to $65 million, including approximately $50 million to $60 million of capitalized software development costs
Blackbaud has not reconciled forward-looking full-year non-GAAP financial measures contained in this news release to their most directly comparable GAAP measures, as permitted by Item 10(e)(1)(i)(B) of Regulation S-K. Such reconciliations would require unreasonable efforts at this time to estimate and quantify with a reasonable degree of certainty various necessary GAAP components, including for example those related to compensation, acquisition transactions and integration, tax items or others that may arise during the year. These components and other factors could materially impact the amount of the future directly comparable GAAP measures, which may differ significantly from their non-GAAP counterparts.
In order to provide a meaningful basis for comparison, Blackbaud uses non-GAAP adjusted free cash flow in analyzing its operating performance. Non-GAAP adjusted free cash flow is defined as operating cash flow less capital expenditures, including costs required to be capitalized for software and content development, capital expenditures for property and equipment, plus cash outflows related to the previously disclosed Security Incident discovered in May 2020 (the "Security Incident"). Total costs related to the Security Incident exceeded the limit of our insurance coverage during the first quarter of 2022. For full year 2025, Blackbaud currently expects net cash outlays of $3 million to $4 million for ongoing legal fees related to the Security Incident. In line with the company's policy, all associated costs due to third-party service providers and consultants, including legal fees, are expensed as incurred. Please refer to the section below titled "Non-GAAP Financial Measures" for more information on Blackbaud's use of non-GAAP financial measures.
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PRESS RELEASE
Stock Repurchase Program
As of December 31, 2024, Blackbaud had approximately $645 million remaining under its common stock repurchase program that was expanded, replenished and reauthorized in July 2024.
Conference Call Details
What:    Blackbaud's Fourth Quarter and Full Year 2024 Conference Call
When:    February 18, 2025
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 leading software provider exclusively dedicated to powering social impact. Serving the nonprofit and education sectors, companies committed to social responsibility and individual change makers, Blackbaud's essential software is built to accelerate impact in fundraising, nonprofit financial management, digital giving, grantmaking, corporate social responsibility and education management. With millions of users and over $100 billion raised, granted or managed through Blackbaud platforms every year, Blackbaud's solutions are unleashing the potential of the people and organizations who change the world. Blackbaud has been named to Newsweek’s list of America’s Most Responsible Companies, Quartz’s list of Best Companies for Remote Workers and Forbes’ list of America’s Best Employers. A remote-first company, Blackbaud has operations in the United States, Australia, Canada, Costa Rica, India and the United Kingdom, supporting users in 100+ countries. Learn more at www.blackbaud.com, or follow us on X/Twitter, LinkedIn, Instagram, and Facebook.
Investor Contact
IR@blackbaud.com
Media Contact
media@blackbaud.com
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PRESS RELEASE
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; 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 www.sec.gov 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.
Trademarks
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.
As previously disclosed, beginning in 2024, we apply a non-GAAP effective tax rate of 24.5% when calculating non-GAAP net income and non-GAAP diluted earnings per share. The non-GAAP tax rate utilized in future periods will be reviewed annually to determine whether it remains appropriate in consideration of our financial results including our periodic effective tax rate calculated in accordance with GAAP, our operating environment and related tax legislation in effect and other factors deemed necessary. All 2023 measures of non-GAAP net income and non-GAAP diluted earnings per share included in this news release are calculated under Blackbaud's historical non-GAAP effective tax rate of 20.0%.
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PRESS RELEASE
Non-GAAP free cash flow is defined as operating cash flow less capital expenditures, including costs required to be capitalized for software and content development, and capital expenditures for property and equipment. In addition, and in order to provide a meaningful basis for comparison, Blackbaud also uses non-GAAP adjusted free cash flow in analyzing its operating performance. Non-GAAP adjusted free cash flow is defined as operating cash flow less capital expenditures, including costs required to be capitalized for software and content development, and capital expenditures for property and equipment, plus cash outflows related to the Security Incident. Blackbaud believes non-GAAP free cash flow and non-GAAP adjusted free cash flow provide useful measures of the company's operating performance. Non-GAAP free cash flow and Non-GAAP adjusted free cash flow are not intended to represent and should not be viewed as the amount of residual cash flow available for discretionary expenditures.
In addition, Blackbaud uses non-GAAP organic revenue growth, non-GAAP organic revenue growth on a constant currency basis, non-GAAP organic recurring revenue growth and non-GAAP organic recurring revenue growth on a constant currency basis, 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, if any, 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. 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 (benefit); depreciation; amortization of intangible assets from business combinations; amortization of software and content development costs; stock-based compensation; employee severance; acquisition and disposition-related costs; Security Incident-related costs; and impairment and disposition charges.
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Blackbaud, Inc.
Consolidated Balance Sheets
(Unaudited)
(dollars in thousands, except per share amounts)December 31,
2024		December 31,
2023
Assets
Current assets:
Cash and cash equivalents$67,628 $31,251 
Restricted cash741,884 697,006 
Accounts receivable, net of allowance of $5,228 and $6,907 at December 31, 2024 and December 31, 2023, respectively
83,539 101,862 
Customer funds receivable1,970 353 
Prepaid expenses and other current assets81,287 99,285 
Total current assets976,308 929,757 
Property and equipment, net91,926 98,689 
Operating lease right-of-use assets26,554 36,927 
Software and content development costs, net148,319 160,194 
Goodwill1,052,506 1,053,738 
Intangible assets, net132,881 581,937 
Other assets67,221 51,037 
Total assets$2,495,715 $2,912,279 
Liabilities and stockholders’ equity
Current liabilities:
Trade accounts payable$50,810 $25,184 
Accrued expenses and other current liabilities75,543 64,322 
Due to customers742,340 695,842 
Debt, current portion23,875 19,259 
Deferred revenue, current portion359,529 392,530 
Total current liabilities1,252,097 1,197,137 
Debt, net of current portion1,051,110 760,405 
Deferred tax liability9,518 93,292 
Deferred revenue, net of current portion2,015 2,397 
Operating lease liabilities, net of current portion34,186 40,085 
Other liabilities4,796 10,258 
Total liabilities2,353,722 2,103,574 
Commitments and contingencies
Stockholders’ equity:
Preferred stock; 20,000,000 shares authorized, none outstanding
— — 
Common stock, $0.001 par value; 180,000,000 shares authorized, 70,943,373 and 69,188,304 shares issued at December 31, 2024 and December 31, 2023, respectively; 49,245,588 and 53,625,440 shares outstanding at December 31, 2024 and December 31, 2023, respectively
71 69 
Additional paid-in capital1,291,442 1,203,012 
Treasury stock, at cost; 21,697,785 and 15,562,864 shares at December 31, 2024 and December 31, 2023, respectively
(1,060,348)(591,557)
Accumulated other comprehensive loss(4,869)(1,688)
(Accumulated deficit) retained earnings(84,303)198,869 
Total stockholders’ equity141,993 808,705 
Total liabilities and stockholders’ equity$2,495,715 $2,912,279 

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Blackbaud, Inc.
Consolidated Statements of Comprehensive Loss
(Unaudited)
(dollars in thousands, except per share amounts)Three months ended
December 31,		Years ended
December 31,
2024202320242023
Revenue
Recurring$296,202 $287,381 $1,129,114 $1,071,520 
One-time services and other6,030 7,630 26,381 33,912 
Total revenue302,232 295,011 1,155,495 1,105,432 
Cost of revenue
Cost of recurring132,944 127,897 494,588 470,455 
Cost of one-time services and other4,925 7,938 21,704 31,733 
Total cost of revenue137,869 135,835 516,292 502,188 
Gross profit164,363 159,176 639,203 603,244 
Operating expenses
Sales, marketing and customer success50,099 52,120 197,499 212,158 
Research and development39,348 38,602 160,586 153,304 
General and administrative35,881 35,356 142,723 189,938 
Amortization817 784 3,541 3,139 
EVERFI disposition405,360 — 405,360 — 
Total operating expenses531,505 126,862 909,709 558,539 
(Loss) income from operations(367,142)32,314 (270,506)44,705 
Interest expense(15,503)(8,473)(55,634)(39,922)
Other income, net4,895 2,414 14,549 12,861 
(Loss) income before (benefit) provision for income taxes(377,750)26,255 (311,591)17,644 
Income tax (benefit) provision(46,986)20,856 (28,419)15,824 
Net (loss) income$(330,764)$5,399 $(283,172)$1,820 
(Loss) earnings per share
Basic$(6.74)$0.10 $(5.60)$0.03 
Diluted$(6.74)$0.10 $(5.60)$0.03 
Common shares and equivalents outstanding
Basic weighted average shares49,051,396 52,697,294 50,560,538 52,546,406 
Diluted weighted average shares49,051,396 54,439,689 50,560,538 53,721,342 
Other comprehensive income (loss)
Foreign currency translation adjustment$(8,439)$4,630 $(2,822)$5,049 
Unrealized gain (loss) on derivative instruments, net of tax10,457 (14,459)(359)(15,675)
Total other comprehensive income (loss)2,018 (9,829)(3,181)(10,626)
Comprehensive loss$(328,746)$(4,430)$(286,353)$(8,806)
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Blackbaud, Inc.
Consolidated Statements of Cash Flows
(Unaudited)
Years ended
December 31,
(dollars in thousands)20242023
Cash flows from operating activities
Net (loss) income$(283,172)$1,820 
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization121,665 109,487 
Provision for credit losses and sales returns4,932 4,500 
Stock-based compensation expense104,968 127,762 
Deferred taxes(85,011)(24,368)
Amortization of deferred financing costs and discount2,538 1,775 
Loss on disposition of businesses16,847 — 
EVERFI impairment charges390,204 — 
Other non-cash adjustments2,462 5,023 
Changes in operating assets and liabilities, net of acquisition and disposal of businesses:
Accounts receivable4,729 (3,237)
Prepaid expenses and other assets3,339 16,851 
Trade accounts payable28,336 (18,576)
Accrued expenses and other liabilities(13,328)(30,275)
Deferred revenue(2,541)8,872 
Net cash provided by operating activities295,968 199,634 
Cash flows from investing activities
Purchase of property and equipment(7,443)(4,685)
Capitalized software and content development costs(59,757)(59,443)
Purchase of net assets of acquired companies, net of cash and restricted cash acquired— (13)
Cash (used) received in disposition of business(1,179)— 
Other investing activities(5,029)(250)
Net cash used in investing activities(73,408)(64,391)
Cash flows from financing activities
Proceeds from issuance of debt1,441,400 293,200 
Payments on debt(1,144,709)(374,595)
Debt issuance costs(6,458)— 
Employee taxes paid for withheld shares upon equity award settlement(56,828)(35,867)
Change in due to customers46,957 (6,812)
Change in customer funds receivable(1,679)(60)
Purchase of treasury stock(418,034)(18,831)
Net cash used in financing activities(139,351)(142,965)
Effect of exchange rate on cash, cash equivalents and restricted cash(1,954)2,048 
Net increase (decrease) in cash, cash equivalents and restricted cash81,255 (5,674)
Cash, cash equivalents and restricted cash, beginning of year728,257 733,931 
Cash, cash equivalents and restricted cash, end of year$809,512 $728,257 
The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown above in the consolidated statements of cash flows:
(dollars in thousands)December 31,
2024		December 31,
2023
Cash and cash equivalents$67,628 $31,251 
Restricted cash741,884 697,006 
Total cash, cash equivalents and restricted cash in the statement of cash flows$809,512 $728,257 
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Blackbaud, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
(dollars in thousands, except per share amounts)Three months ended
December 31,		Years ended
December 31,
2024202320242023
GAAP Revenue$302,232 $295,011 $1,155,495 $1,105,432 
GAAP gross profit$164,363 $159,176 $639,203 $603,244 
GAAP gross margin54.4 %54.0 %55.3 %54.6 %
Non-GAAP adjustments:
Add: Stock-based compensation expense4,026 4,416 14,092 16,658 
Add: Amortization of intangibles from business combinations12,988 13,099 56,957 52,463 
Add: Employee severance— — — 797 
Subtotal17,014 17,515 71,049 69,918 
Non-GAAP gross profit$181,377 $176,691 $710,252 $673,162 
Non-GAAP gross margin60.0 %59.9 %61.5 %60.9 %
GAAP (loss) income from operations$(367,142)$32,314 $(270,506)$44,705 
GAAP operating margin(121.5)%11.0 %(23.4)%4.0 %
Non-GAAP adjustments:
Add: Stock-based compensation expense
28,538 32,094 104,968 127,762 
Add: Amortization of intangibles from business combinations
13,805 13,883 60,498 55,602 
Add: Employee severance
— 55 — 5,149 
Add: Acquisition and disposition-related costs(1)
1,201 657 6,100 7,456 
Add: Security Incident-related costs(2)
918 4,780 13,700 53,426 
Add: EVERFI impairment and disposition charges
405,360 — 405,360 — 
Subtotal449,822 51,469 590,626 249,395 
Non-GAAP income from operations$82,680 $83,783 $320,120 $294,100 
Non-GAAP operating margin27.4 %28.4 %27.7 %26.6 %
GAAP (loss) income before (benefit) provision for income taxes$(377,750)$26,255 $(311,591)$17,644 
GAAP net (loss) income$(330,764)$5,399 $(283,172)$1,820 
Shares used in computing GAAP diluted (loss) earnings per share49,051,396 54,439,689 50,560,538 53,721,342 
GAAP diluted (loss) earnings per share$(6.74)$0.10 $(5.60)$0.03 
Non-GAAP adjustments:
Add: GAAP income tax (benefit) provision(46,986)20,856 (28,419)15,824 
Add: Total non-GAAP adjustments affecting income from operations449,822 51,469 590,626 249,395 
Non-GAAP income before provision for income taxes72,072 77,724 279,035 267,039 
Assumed non-GAAP income tax provision(3)
17,658 15,545 68,364 53,408 
Non-GAAP net income$54,414 $62,179 $210,671 $213,631 
Shares used in computing non-GAAP diluted earnings per share50,591,254 54,439,689 51,750,308 53,721,342 
Non-GAAP diluted earnings per share$1.08 $1.14 $4.07 $3.98 
    
(1)Includes noncash impairment charges incurred during the twelve months ended December 31, 2024 and 2023 related to the subleases of our Washington, DC office location, the lease of which was acquired during the EVERFI acquisition.
(2)Includes Security Incident-related costs incurred during the three and twelve months ended December 31, 2024 of $0.9 million and $13.7 million, respectively, which included approximately $6.8 million in recorded liabilities for loss contingencies, and during the three and twelve months ended December 31, 2023 of $4.8 million and $53.4 million, respectively, which included approximately $1.0 million and $31.0 million, respectively, in recorded liabilities for loss contingencies. Recorded expenses consisted primarily of payments to third-party service providers and consultants, including legal fees, as well as settlements of customer claims, negotiated settlements and accruals for certain loss contingencies. Not included in this adjustment were costs associated with enhancements to our cybersecurity program. For the year ended December 31, 2025, we currently expect pre-tax expenses of approximately $2 million to $3 million and cash outlays of approximately $3 million to $4 million for ongoing legal fees related to the Security Incident. In line with our policy, legal fees are expensed as incurred. As of December 31, 2024, we have recorded approximately $0.7 million in aggregate liabilities for loss contingencies based primarily on recent negotiations with certain customers related to the Security Incident that we believe we can reasonably estimate. It is reasonably possible that our estimated or actual losses may change in the near term for those matters and be materially in excess of the amounts accrued, but we are unable at this time to reasonably estimate the possible additional loss. There are other Security Incident-related matters for which we have not recorded a liability for a loss contingency as of December 31, 2024 because we are unable at this time to reasonably estimate the possible loss or range of loss. Each of these matters could, separately or in the aggregate, result in an adverse judgment, settlement, fine, penalty or other resolution, the amount, scope and timing of which we are currently unable to predict, but could have a material adverse impact on our results of operations, cash flows or financial condition.
(3)Beginning in 2024, we now apply a non-GAAP effective tax rate of 24.5% when calculating non-GAAP net income and non-GAAP diluted earnings per share. For the twelve months ended December 31, 2023, the tax impact related to non-GAAP adjustments is calculated under our historical non-GAAP effective tax rate of 20.0%.
10
Blackbaud, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
(Unaudited)
(dollars in thousands)Three months ended
December 31,		Years ended
December 31,
2024202320242023
GAAP revenue(1)
$302,232 $295,011 $1,155,495 $1,105,432 
GAAP revenue growth2.4 %4.5 %
Less: Non-GAAP revenue from divested businesses(2)
— (2,213)— (7,402)
Non-GAAP organic revenue(2)
$302,232 $292,798 $1,155,495 $1,098,030 
Non-GAAP organic revenue growth3.2 %5.2 %
Non-GAAP organic revenue(3)
$302,232 $292,798 $1,155,495 $1,098,030 
Foreign currency impact on non-GAAP organic revenue(4)
(857)— (2,987)— 
Non-GAAP organic revenue on constant currency basis(4)
$301,375 $292,798 $1,152,508 $1,098,030 
Non-GAAP organic revenue growth on constant currency basis2.9 %5.0 %
GAAP recurring revenue$296,202 $287,381 $1,129,114 $1,071,520 
GAAP recurring revenue growth3.1 %5.4 %
Less: Non-GAAP recurring revenue from divested businesses(2)
— — — — 
Non-GAAP organic recurring revenue(3)
$296,202 $287,381 $1,129,114 $1,071,520 
Non-GAAP organic recurring revenue growth3.1 %5.4 %
Non-GAAP organic recurring revenue(2)
$296,202 $287,381 $1,129,114 $1,071,520 
Foreign currency impact on non-GAAP organic recurring revenue(4)
(843)— (2,913)— 
Non-GAAP organic recurring revenue on constant currency basis(4)
$295,359 $287,381 $1,126,201 $1,071,520 
Non-GAAP organic recurring revenue growth on constant currency basis2.8 %5.1 %
(1)Includes EVERFI revenue of $18.7 million and $26.4 million for the three months ended December 31, 2024 and 2023, respectively, and $85.5 million and $106.9 million for the year ended December 31, 2024 and 2023, respectively.
(2)Non-GAAP revenue from divested businesses excludes revenue associated with divested businesses in the prior period. The exclusion of the prior period revenue is to present the results of the divested business with the results of the combined company for the same period of time in both the prior and current periods.
(3)Non-GAAP organic revenue and non-GAAP organic recurring revenue for the prior year periods presented herein may not agree to non-GAAP organic revenue and non-GAAP organic recurring revenue presented in the respective prior period quarterly financial information solely due to the manner in which non-GAAP organic revenue growth and non-GAAP organic recurring revenue growth are calculated.
(4)To determine non-GAAP organic revenue growth and non-GAAP organic recurring revenue growth on a constant currency basis, revenues from entities reporting in foreign currencies were translated to U.S. Dollars using the comparable prior period's quarterly weighted average foreign currency exchange rates. The primary foreign currencies creating the impact are the Australian Dollar, British Pound, Canadian Dollar and Euro.

11
Blackbaud, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
(Unaudited)
(dollars in thousands)Three months ended
December 31,		Years ended
December 31,
2024202320242023
GAAP net (loss) income$(330,764)$5,399 $(283,172)$1,820 
Non-GAAP adjustments:
Add: Interest, net
13,638 6,208 45,788 31,101 
Add: GAAP income tax (benefit) provision
(46,986)20,856 (28,419)15,824 
Add: Depreciation
3,207 3,142 12,828 13,043 
Add: Amortization of intangibles from business combinations
13,805 13,883 60,498 55,602 
Add: Amortization of software and content development costs(1)
13,325 12,183 51,240 45,296 
Subtotal(3,011)56,272 141,935 160,866 
Non-GAAP EBITDA$(333,775)$61,671 $(141,237)$162,686 
Non-GAAP EBITDA margin(2)
(110.4)%(12.2)%
Non-GAAP adjustments:
Add: Stock-based compensation expense
$28,538 $32,094 $104,968 $127,762 
Add: Employee severance
— 55 — 5,149 
Add: Acquisition and disposition-related costs(3)
1,201 657 6,100 7,456 
Add: Security Incident-related costs(3)
918 4,780 13,700 53,426 
Add: EVERFI impairment and disposition charges
405,360 — 405,360 — 
Subtotal436,017 37,586 530,128 193,793 
Non-GAAP adjusted EBITDA$102,242 $99,257 $388,891 $356,479 
Non-GAAP adjusted EBITDA margin(4)
33.8 %33.7 %
Rule of 40(5)
37.0 %38.9 %
Non-GAAP adjusted EBITDA$102,242 $99,257 $388,891 $356,479 
Foreign currency impact on Non-GAAP adjusted EBITDA(6)
(559)(716)(1,618)(7)
Non-GAAP adjusted EBITDA on constant currency basis(6)
$101,683 $98,541 $387,273 $356,472 
Non-GAAP adjusted EBITDA margin on constant currency basis33.7 %33.6 %
Rule of 40 on constant currency basis(7)
36.6 %38.6 %
(1)Includes amortization expense related to software and content development costs, and amortization expense from capitalized cloud computing implementation costs.
(2)Measured by GAAP revenue divided by non-GAAP EBITDA.
(3)See additional details in the reconciliation of GAAP to Non-GAAP operating income above.
(4)Measured by non-GAAP organic revenue divided by non-GAAP adjusted EBITDA.
(5)Measured by non-GAAP organic revenue growth plus non-GAAP adjusted EBITDA margin. See Non-GAAP organic revenue growth table above.
(6)To determine non-GAAP adjusted EBITDA on a constant currency basis, non-GAAP adjusted EBITDA from entities reporting in foreign currencies were translated to U.S. Dollars using the comparable prior period's quarterly weighted average foreign currency exchange rates. The primary foreign currencies creating the impact are the Australian Dollar, British Pound, Canadian Dollar and Euro.
(7)Measured by non-GAAP organic revenue growth on constant currency basis plus non-GAAP adjusted EBITDA margin on constant currency basis.
12
Blackbaud, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
(Unaudited)
(dollars in thousands)Years ended
December 31,
20242023
GAAP net cash provided by operating activities$295,968 $199,634 
GAAP operating cash flow margin25.6 %18.1 %
Non-GAAP adjustments:
Less: purchase of property and equipment(7,443)(4,685)
Less: capitalized software and content development costs(59,757)(59,443)
Non-GAAP free cash flow$228,768 $135,506 
Non-GAAP free cash flow margin19.8 %12.3 %
Non-GAAP adjustments:
Add: Security Incident-related cash flows15,925 78,010 
Non-GAAP adjusted free cash flow$244,693 $213,516 
Non-GAAP adjusted free cash flow margin21.2 %19.3 %
13
v3.25.0.1
Document and Entity Information Document
Feb. 18, 2025
Document Information [Line Items]  
Document Type 8-K
Document Period End Date Feb. 18, 2025
Entity Registrant Name Blackbaud, Inc.
Entity Incorporation, State or Country Code DE
Entity File Number 000-50600
Entity Tax Identification Number 11-2617163
Entity Address, Address Line One 65 Fairchild Street
Entity Address, City or Town Charleston
Entity Address, State or Province SC
Entity Address, Postal Zip Code 29492
City Area Code 843
Local Phone Number 216-6200
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $0.001 Par Value
Trading Symbol BLKB
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0001280058
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