Blackbaud, Inc. Announces Fourth Quarter and Full Year 2008 Results
CHARLESTON, S.C. — Blackbaud, Inc. (Nasdaq: BLKB), the leading provider of software and related services designed specifically for nonprofit organizations, today announced financial results for its fourth quarter and full year ended December 31, 2008.
Marc Chardon, Chief Executive Officer of Blackbaud, stated, “The Company’s fourth quarter results were highlighted by better-than-expected profitability and solid execution in the face of an increasingly challenging macro environment. Moreover, during 2008, the Company made progress against multiple growth initiatives during what proved to be one of the most challenging periods non-profit organizations have ever faced. The continued progress with our eCRM initiative, growth of our online fundraising solutions, acquisition and integration of Kintera, momentum of eTapestry and growth of our international business were all quite encouraging. In addition, fourth quarter 2008 subscription revenue was approximately twice that of our perpetual license revenue. The continued growth of our subscription revenue is a significant and positive evolution of our already strong business model.”
Chardon continued, “As we enter 2009, we will continue to manage expenses carefully, balancing our desire to maintain high profitability levels with the opportunity to invest in initiatives that will enhance the Company’s long-term growth. We believe Blackbaud is well positioned to continue executing effectively through this difficult time period and we expect to emerge with our leadership position further enhanced.”
For the quarter ended December 31, 2008, Blackbaud reported total revenue of $80.4 million. GAAP income from operations and net income were $10.1 million and $6.5 million, respectively, compared with GAAP income from operations of $14.2 million and net income of $9.0 million in the fourth quarter of 2007. GAAP diluted earnings per share were $0.15 for the quarter ended December 31, 2008, compared with $0.20 in the same period last year.
For the quarter ended December 31, 2008, non-GAAP revenue, including a $1.5 million revenue adjustment related to Kintera purchase accounting, was $81.9 million, an increase of 17% compared with the fourth quarter of 2007. Non-GAAP income from operations, which excludes stock-based compensation expense and amortization of intangibles arising from business combinations, was $17.6 million, an increase from $17.3 million in the same period last year. Non-GAAP net income was $10.4 million for the quarter ended December 31, 2008, compared with $10.5 million in the same period last year. Non-GAAP diluted earnings per share were $0.24 for the quarter ended December 31, 2008, above the high-end of the Company’s guidance of $0.22 to $0.23 and up over the year ago period.