First quarter results for social impact software firm Blackbaud (NASDAQ: BLKB), showed mixed results, with generally accepted accounting principles (GAAP) total revenue declining by 3.1%, while non-GAAP organic revenue increasing 5.8%. Company officials blamed the GAAP revenue decline on the divestiture of EVERFI, an educational platform for K-12 students.
The firm reported GAAP total revenue of $270.7 million, of which GAAP recurring revenue was $264.1 million, down 2.8% and represented 97.6% of total revenue. GAAP income from operations was $20.4 million, with GAAP operating margin of 7.5%. Non-GAAP income from operations was $77.5 million, with non-GAAP operating margin of 28.6%.
“Financially, we grew the top line on an organic basis, while making substantial progress towards improved profitability and returning capital through stock repurchases,” Mike Gianoni, president, CEO and vice chairman of the board of directors at Blackbaud said via a statement. “Blackbaud is a much stronger company than it was just one year ago and remains the clear leader in the social impact software market. Our solid first quarter gives me confidence that Blackbaud is well positioned for 2025 and beyond as we aim to be a Rule of 45 company by 2030.”
As of March 31, Blackbaud had approximately $545 million remaining under its common stock repurchase program that was expanded, replenished and reauthorized in July 2024. The firm’s stock price is $61.25 per share, down from a 52-week high of $88.95 and up from a 52-week low of $58.05 per share.
Other reported results from the first quarter include:
* GAAP net income was $4.9 million, with GAAP diluted earnings per share of $0.10, unchanged from the prior year. Non-GAAP net income was $47.3 million, with non-GAAP diluted earnings per share of $0.96, up $0.03 per share.
* Non-GAAP adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) was $92.8 million, up $3.9 million, with non-GAAP adjusted EBITDA margin of 34.3%.
* GAAP net cash provided by operating activities was $1.4 million, a decrease of $63.2 million, with GAAP operating cash flow margin of 0.5%, driven primarily by one-time or unusual items such as the EVERFI divestiture.
* Non-GAAP adjusted free cash flow was negative $11.4 million, a decrease of $64.7 million, with non-GAAP adjusted free cash flow margin of negative 4.2%.
Blackbaud reaffirmed 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 updated assumptions that 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; and, 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.
