By Richard H. Levey
Blackbaud, a software provider that specializes in fundraising and other offerings for the social sector, reported total second-quarter 2024 revenue of $287.3 million, up 6% from second-quarter 2023 revenue of $271 million. For the most recent quarter, which ended on June 30, the Charleston, South Carolina-based firm had operating income of $42.1 million, a turnaround from the $300,000 operating income reported for second-quarter 2023, and net income of $21.8 million, up from $2.1 million.
Blackbaud’s second-quarter recurring revenue was $281.4 million, up 7.2% from $262.4 million and made up all but $5.9 million of all revenue. A year ago, Blackbaud’s second-quarter GAAP recurring revenue growth rate was 3.9% more than second-quarter 2022’s levels. The company reports more than 40,000 customers which include nonprofits, academic institutions, corporations, foundations, healthcare providers and other entities.
Blackbaud is also continuing to pursue its plans to repurchase between 7% and 10% of its outstanding common stock as of December 31, 2023. At the close of second quarter 2024, the company had repurchased roughly 5.5% of its common stock.
The year-ago second quarter income results included one-time expenses of $26.8 million which stemmed from “security incident-related costs,” according a press statement from a year ago. Blackbaud had a security breach in May 2020, and has paid a total of $56.25 million in settlement fees and other costs. https://thenonprofittimes.com/npt_articles/blackbaud-settles-with-california-for-6-75-million/
Revenue from the social service sector made up a slightly larger portion of Blackbaud’s second-quarter 2024 total revenue than it did a year earlier. The $252.2 million social sector operations pulled in accounted for 87.8% of total revenue, while the $232.4 million social services generated in second-quarter 2023 made up 85.7% of total revenue.
Blackbaud’s revenue increase was spurred at least in part by changes to its pricing structures. More than a year ago, Blackbaud began prompting customers to move from one-year contracts to two- and three-year contracts. Unlike previous multiyear deals, the new multiyear contracts included price increases during the second and third years. At the same time, Blackbaud raised prices on donation payment processing functions. https://thenonprofittimes.com/npt_articles/new-sales-lower-headcount-boosts-blackbaud-results/
It is unclear what impact, if any, these increases have had on Blackbaud’s own client retention rates. Blackbaud does not provide detailed customer counts in its earnings releases or quarterly financial statements. Blackbaud did not provide information regarding its own customer retention rates in its earnings announcement, nor did it offer payment processing quantities.
Blackbaud did announce, however, that its second-quarter recurring revenue was $281.4 million, up 7.2% from $262.4 million. A year ago, Blackbaud’s second-quarter GAAP recurring revenue growth rate was 3.9% above second-quarter 2022’s levels. The company has more than 40,000 customers which include nonprofits, academic institutions, corporations, foundations, healthcare providers and other entities.
Blackbaud is also continuing to pursue its plans to repurchase between 7% and 10% of its outstanding common stock as of December 31, 2023. At the close of second quarter 2024, the company had repurchased roughly 5.5% of its common stock.
