Blackbaud(US:BLKB)2025-04-30 20:28Revenue Performance - Total revenue decreased by $8.6 million, or 3.1%, during the three months ended March 31, 2025, compared to the same period in 2024[141]. - GAAP revenue for the three months ended March 31, 2025, was $270.7 million, a decrease from $279.3 million in the same period in 2024[175]. - Non-GAAP organic revenue for Q1 2025 was $270.7 million, reflecting a growth of 5.8% from $255.8 million in Q1 2024[181]. - Non-GAAP organic recurring revenue grew by 5.8% from $249.5 million in Q1 2024 to $264.1 million in Q1 2025[181]. - Approximately 15% of total revenue for the three months ended March 31, 2025, was generated from operations outside the U.S.[231]. Operational Performance - Income from operations increased by $9.7 million during the same period, driven by critical investments in innovation and cybersecurity[120]. - Gross dollar retention for the twelve months ended March 31, 2025, was approximately 92%, an increase from the previous year, attributed to the sale of EVERFI[126]. - Cost of revenue decreased by $11.4 million, or 9.0%, during the same period, leading to a gross margin increase of 280 basis points[142]. - GAAP gross profit increased to $155.8 million for the three months ended March 31, 2025, compared to $153.0 million in the same period in 2024, resulting in a gross margin of 57.6%[175]. Cash Flow and Liquidity - Cash and cash equivalents were $37.2 million as of March 31, 2025, with total debt at $1.1 billion and a net leverage ratio of 2.91 to 1.00[127]. - During the three months ended March 31, 2025, the company generated $1.4 million in cash from operations and returned $100.0 million to stockholders through share repurchases[128]. - Cash flow from operations decreased due to working capital changes, with a notable impact from a security incident[207]. - Net cash provided by operating activities fell by 97.9% to $1.4 million in Q1 2025, down from $64.6 million in Q1 2024[200]. - Non-GAAP free cash flow for Q1 2025 was $(12.3) million, compared to $51.3 million in Q1 2024, indicating a significant decline[196]. Expenses - Sales, marketing, and customer success expenses decreased by $6.2 million, or 12.2%, during the three months ended March 31, 2025, compared to the same period in 2024[149]. - Research and development expenses decreased by $9.2 million or 21.6% for the three months ended March 31, 2025, compared to the same period in 2024[150]. - General and administrative expenses increased by $8.9 million, or 18.7%, for the three months ended March 31, 2025, compared to the same period in 2024[155]. Debt and Interest - Total carrying value of debt increased by 12.2% to $1,205.7 million as of March 31, 2025, compared to $1,075.0 million at December 31, 2024[200]. - Interest expense is expected to be approximately $65 million to $69 million for the full year 2025, influenced by incremental borrowings for stock repurchases and the expiration of favorable interest rate swaps[157]. - Total remaining principal payments on debt amounted to $1.2 billion, with an average daily borrowing of $1.0 billion during the quarter[218]. - The net leverage ratio was 2.91 to 1.00, below the maximum requirement of 3.75 to 1.00 under the 2024 Credit Facilities[218]. Tax and Compliance - The effective income tax rate increased due to reduced current year stock-based compensation benefits and a valuation allowance against net U.S. deferred tax assets[170]. - The total liability for uncertain tax positions was $5.4 million as of March 31, 2025[227]. Stock Repurchase - The company plans to repurchase between 3% and 5% of its outstanding common stock during 2025, with $544.5 million remaining under the stock repurchase program as of March 31, 2025[114]. - The company repurchased 1,513,022 shares for $100.0 million, with $544.5 million remaining under the stock repurchase program as of March 31, 2025[216]. Acquisitions and Dispositions - The company recorded acquisition and disposition-related costs of $25.1 million during the three months ended March 31, 2025, primarily related to the release from a lease for office space[176].