UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number: 000-50600 Blackbaud, Inc. (Exact name of registrant as specified in its charter) Delaware 11-2617163 (State or other jurisdiction of incorpor ...

Financial Data and Key Metrics Changes - Organic revenue growth for Q2 2024 was approximately 7%, significantly up from 2.8% in Q2 2023 [5] - Total revenue for Q2 2024 was $287 million, representing a 6% year-over-year increase and nearly 7% on an organic basis [49] - Adjusted EBITDA margin improved to 36%, up nearly 300 basis points year-over-year [19] - Non-GAAP earnings per share was $1.08, reflecting a 10% year-over-year increase [19] - Adjusted free cash flow for the first half of 2024 was up approximately 50% compared to the first half of 2023, totaling $89 million [12] Business Line Data and Key Metrics Changes - The social sector, which represents 88% of total revenue, grew 8.5% year-over-year in Q2 2024, a significant increase from 2% growth in Q2 2023 [9] - Contractual recurring revenue in the social sector grew 9.5% year-over-year, while transactional recurring revenue was up 8.2% [49] - The corporate sector, accounting for approximately 12% of total revenue, declined by 9.2%, primarily due to underperformance at EVERFI [49] Market Data and Key Metrics Changes - The company continues to focus on mid-size and enterprise nonprofits, leveraging its market leadership and strong brand recognition [8] - The U.S. charitable giving market was over $500 billion in 2023, with approximately $100 billion processed through Blackbaud's platforms [21] Company Strategy and Development Direction - The company is executing a five-point operating plan aimed at enhancing growth predictability and maintaining cost management [4] - There is a commitment to repurchase up to 10% of outstanding shares in 2024, with an expanded stock repurchase program totaling $800 million [10][26] - The company is actively considering strategic alternatives for EVERFI, including a potential divestiture [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term trajectory of the social sector, citing its resilience during downturns [9] - The company anticipates being at the low end of revenue guidance due to EVERFI's underperformance but expects to be at the high end of adjusted EBITDA margin guidance [28] - Management highlighted the removal of past challenges, including legal issues and a security incident, as a foundation for sustainable growth [43] Other Important Information - The company has implemented a modernized approach to contract renewals, moving customers to standard three-year contracts with annual price escalators [51] - The corporate sector's performance is impacted by EVERFI, which represents only 8% of total revenues but has been a drag on growth [25][48] Q&A Session Summary Question: Update on bookings environment in the social sector - Management indicated that bookings are doing well in the social sector, with new logos and product sales productivity up, and revenue drag is fully related to EVERFI [33] Question: Margin profile of EVERFI relative to the social side - Management clarified that EVERFI is dilutive to both growth and EBITDA, and they are working on plans to improve its performance [55] Question: Challenges faced in recent years - Management noted that past challenges included a security incident and legal issues, which are now resolved, allowing the company to focus on growth [43] Question: Visibility into viral charitable giving campaigns - Management acknowledged the unpredictability of viral charitable events but noted that they could provide upside if they occur in the second half of the year [44] Question: Importance of the corporate sector - Management affirmed that the corporate sector remains important, particularly the "Your Cause" business, which is performing well [58]

This quarterly report represents an earnings surprise of 3.85%. A quarter ago, it was expected that this software and services provider in the nonprofit sector would post earnings of $0.85 per share when it actually produced earnings of $0.93, delivering a surprise of 9.41%. Blackbaud, which belongs to the Zacks Computer - Software industry, posted revenues of $287.29 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 0.51%. This compares to year-ago revenues of $271.04 million ...

PRESS RELEASE Charleston, S.C. (July 30, 2024) — Blackbaud (NASDAQ: BLKB), the leading provider of software for powering social impact, today announced financial results for its second quarter ended June 30, 2024. Second Quarter 2024 Results Compared to Second Quarter 2023 Results: • GAAP recurring revenue was $281.4 million, up 7.2% and represented 98% of total revenue. Non-GAAP organic recurring revenue increased 7.2%. • GAAP income from operations was $42.1 million, with GAAP operating margin of 14.7%, a ...

Core Insights - Blackbaud reported a significant year-over-year revenue growth of 6.0% in Q2 2024, with non-GAAP organic revenue increasing by 6.7% [2][3] - The company has expanded its stock repurchase program from $500 million to $800 million, indicating strong cash flow and a commitment to enhancing shareholder value [4][9] - Blackbaud's Social Sector, which constitutes 88% of total revenue, experienced even higher growth at 8.5% [3] Financial Performance - GAAP total revenue for Q2 2024 was $287.3 million, up from $271.0 million in Q2 2023, while GAAP recurring revenue reached $281.4 million, representing 98% of total revenue [2][21] - GAAP net income was reported at $21.8 million, with diluted earnings per share increasing to $0.42, up from $0.04 in the same quarter last year [2][24] - Non-GAAP adjusted EBITDA for the quarter was $102.5 million, reflecting a margin of 35.7%, an increase of 290 basis points year-over-year [2][3] Strategic Initiatives - The company announced a strategic investment in UBIQ Education to enhance its Total School Solution, integrating advanced marketing and admissions tools [4] - Blackbaud has been recognized as one of America's Best Mid-Size Companies 2024 by TIME, ranking 195 out of 500 based on employee satisfaction and revenue growth [4] - The company is set to host its bbcon 2024 tech conference from September 24-26 in Seattle, showcasing its commitment to innovation and community engagement [5] Market Position - Blackbaud is positioned as a market leader in software solutions for social impact, serving the nonprofit and education sectors [7] - The company has a strong operational footprint, with millions of users and over $100 billion raised or managed through its platforms annually [7]

Blackbaud Forward-Looking Statements Except for historical information, all of the statements, expectations, and assumptions contained in this news release are forward-looking statements that involve a number of risks and uncertainties, including statements regarding expected benefits of products and product features. 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 b ...

The Past Year Saw a Significant Increase in In-Person Volunteering, Upward Trend in Giving to International Organizations CHARLESTON, S.C., July 24, 2024 /PRNewswire/ -- The Blackbaud Institute, a research lab at Blackbaud (NASDAQ: BLKB), the leading provider of software for powering social impact, today released a new spotlight brief sharing insights from the company's annual Corporate Social Responsibility (CSR) Industry Review, which analyzes CSR program data and employees' philanthropic engagement. The ...

"The Social Good Startup Program allows us to work with cutting edge startups in the social impact space to accelerate the speed and variety of innovation that our customers receive, on top of delivering the essential software and capabilities that Blackbaud is known for," said Jerry Needel, vice president and chief of innovation, Blackbaud. "We're excited to see what the companies in this cohort can bring to the table to benefit Blackbaud customers who are out there making a difference in the world every d ...

Blackbaud (BLKB) recently added a series of unique capabilities to its comprehensive grants management platform — Blackbaud Grantmaking. These enhancements aim to simplify the grantmaking process for fundraisers and grantmakers, allowing both parties to leverage the same portal for requesting applications and choosing the right organizations for donation. One of the standout features of the updated Blackbaud Grantmaking is the new applicant-centric portal. This innovative solution allows grant applicants to ...

CHARLESTON, S.C., July 18, 2024 /PRNewswire/ -- Blackbaud (NASDAQ: BLKB), the leading provider of software for powering social impact, today announced its board of directors has reauthorized, expanded and replenished the company's existing stock repurchase program, raising the total capacity from $500 million to $800 million available for repurchases of the company's common stock. "We believe there is no better use of capital at this time than repurchasing shares at this valuation to improve shareholder val ...