CHARLESTON, S.C., Feb 07, 2011 (BUSINESS WIRE) --

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 ended December 31, 2010.

Marc Chardon, Chief Executive Officer of Blackbaud, stated, "The fourth quarter was a solid finish to a successful 2010. While our Blackbaud Index of Charitable Giving reports that overall giving remained flat year-over-year for the three months ended November 2010, Blackbaud's year-over-year revenue growth, which started 2010 essentially flat, improved each quarter throughout the year and approached 10% as we exited the year. The company's increased revenue growth was largely driven by improved execution and fundamentals in our two North American business units, driven by strong momentum associated with our expanding suite of subscription-based offerings, as well as the continued market reception for our Enterprise CRM solution."

"We believe our end-market conditions are stable, with isolated pockets of improvement, but it remains uncertain how quickly an economic improvement would have a materially positive impact on the nonprofit sector," added Chardon. "We remain optimistic about Blackbaud's future. Our market leadership position in both offline and online fundraising, strong product roadmap and successful initiative to optimize competitive win rates have not only served us well in 2010 they position us for greater success when the macro environment does improve."

Blackbaud reported total revenue of $87.0 million for the quarter ended December 31, 2010, an increase of approximately 10% compared to $79.0 million for the fourth quarter of 2009. Income from operations and net income, determined in accordance with GAAP, were $12.3 million and $8.5 million, respectively, compared with $13.3 million and $8.0 million, respectively, for the fourth quarter of 2009. Diluted earnings per share were $0.20 for the quarter ended December 31, 2010, compared with $0.18 in the same period last year.

Non-GAAP income from operations, which excludes stock-based compensation expense, amortization of intangibles arising from business combinations and a one-time expense incurred in connection with a recent acquisition, was $19.0 million, representing a non-GAAP operating margin of approximately 21.8% and compared with $19.2 million in the same period last year.

Non-GAAP net income was $11.7 million for the quarter ended December 31, 2010, compared with $12.1 million in the same period last year. Non-GAAP diluted earnings per share were $0.27 for the quarter ended December 31, 2010, consistent with the same period last year and at the high-end of the company's guidance.

A reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures."

The Company ended the fourth quarter with $28.0 million in cash, compared to $26.3 million at the end of the previous quarter.

Timothy V. Williams, Chief Financial Officer of Blackbaud, stated, "During 2010, our subscription-based offerings remained our highest growth revenue source and they increased to approximately three and a half times the size of our license revenue. Moreover, the growth of our subscription bookings was substantially greater than our reported subscription revenue growth during 2010, which bodes well for improved subscription revenue growth in 2011. We believe that strong demand for our subscription-based offerings will be a primary driver to Blackbaud's return to low-to-mid teens total revenue growth when the economic environment improves."

Full Year 2010 Results

For the year ended December 31, 2010, Blackbaud reported total revenue of $327.1 million, an increase of 6% compared with 2009. GAAP income from operations and net income were $46.3 million and $29.8 million, respectively, for the full year 2010. This compares with GAAP income from operations of $45.8 million and net income of $28.4 million for the full year 2009. GAAP diluted earnings per share were $0.68 and $0.65 for the years ended December 31, 2010 and 2009, respectively.

For the year ended December 31, 2010, non-GAAP income from operations, which excludes stock-based compensation expense and amortization of intangibles arising from business combinations, was $67.4 million, representing a non-GAAP operating margin of 20.6% and compares with $68.6 million for the full year 2009. Non-GAAP net income was $41.0 million for the year ended December 31, 2010, leading to non-GAAP diluted earnings per share of $0.93. This compares with non-GAAP net income of $41.8 million and diluted earnings per share of $0.96 for the full year 2009. The company generated cash from operations of $55.9 million in 2010.

First Quarter 2011 Dividend and Share Repurchase Program

Blackbaud announced today that its Board of Directors has approved a cash dividend of $0.48 for 2011, an increase from $0.44 paid in 2010. The Board also declared a first quarter dividend of $0.12 per share payable on March 15, 2011, to stockholders of record on February 28, 2011. Additionally, as of December 31, 2010, the amount remaining under the Company's share repurchase program, which became effective on August 1, 2010, was $50.0 million.

Conference Call Details

Blackbaud will host a conference call today, February 7, 2011, at 5:00 p.m. (Eastern Time) to discuss the Company's financial results, operations and related matters. To access this call, dial 877-719-9799 (domestic) or 719-325-4904 (international). A replay of this conference call will be available through February 14, 2011, at 877-870-5176 (domestic) or 858-384-5517 (international). The replay passcode is 7154085. A live webcast of this conference call will be available on the "Investor Relations" page of the Company's website at www.blackbaud.com/investorrelations, and a replay will be archived on the website as well.

About Blackbaud

Blackbaud is the leading global provider of software and services designed specifically for nonprofit organizations, enabling them to improve operational efficiency, build strong relationships, and raise more money to support their missions. Approximately 24,000 organizations -- including The American Red Cross, Cancer Research UK, Earthjustice, International Fund for Animal Welfare, Lincoln Center, The Salvation Army, The Taft School, Tulsa Community Foundation, Ursinus College, the WGBH Educational Foundation, and Yale University -- use one or more Blackbaud products and services for fundraising, constituent relationship management, financial management, website management, direct marketing, education administration, ticketing, business intelligence, prospect research, consulting, and analytics. Since 1981, Blackbaud's sole focus and expertise has been partnering with nonprofits and providing them the solutions they need to make a difference in their local communities and worldwide. Headquartered in the United States, Blackbaud also has operations in Australia, Canada, Hong Kong, the Netherlands, and the United Kingdom. For more information, visit www.blackbaud.com.

All Blackbaud product names appearing herein are trademarks or registered trademarks of Blackbaud, Inc.

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. 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 based. In addition, other important factors that could cause results to differ materially include the following: general economic risks; uncertainty regarding increased business and renewals from existing customers; continued success in sales growth; management of integration of acquired companies and other risks associated with acquisitions; risks associated with successful implementation of multiple integrated software products; the ability to attract and retain key personnel; risks related to our dividend policy and share repurchase program, including potential limitations on our ability to grow and the possibility that we might discontinue payment of dividends; risks relating to restrictions imposed by the credit facility; risks associated with management of growth; lengthy sales and implementation cycles, particularly in larger organizations; technological changes that make our products and services less competitive; and the other risk factors set forth from time to time in the SEC filings for Blackbaud, copies of which are available free of charge at the SEC's website at www.sec.gov or upon request from Blackbaud's investor relations department.

Non-GAAP Financial Measures

Blackbaud has provided in this release financial information that has not been prepared in accordance with GAAP. This information includes non-GAAP income from operations and margin, non-GAAP net income and non-GAAP diluted earnings per share. Blackbaud uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating Blackbaud's ongoing operational performance. Blackbaud believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing its financial results with other companies in Blackbaud's industry, many of which present similar non-GAAP financial measures to investors. As noted, the non-GAAP financial results discussed above exclude stock-based compensation expense, costs associated with amortization of intangibles arising from business combinations and one-time write-offs or expenses incurred in connection with acquisitions.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measure below. As previously mentioned, a reconciliation of our non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included below in this press release.

SOURCE: Blackbaud, Inc.

Investor Contact:
ICR
Tim Dolan, 617-956-6727
timothy.dolan@icrinc.com
or
Media Contact:
Blackbaud, Inc.
Melanie Mathos, 843-216-6200 x3307
melanie.mathos@blackbaud.com