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Blackbaud Announces 2018 Second Quarter Results

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Blackbaud Announces 2018 Second Quarter Results

PR Newswire

Second Quarter Recurring Revenue Grows 16% Representing 90% of Total Revenue; Reaffirms 2018 Full Year Financial Guidance

CHARLESTON, S.C., July 30, 2018 /PRNewswire/ -- Blackbaud (NASDAQ:BLKB), the world's leading cloud software company powering social good, today announced financial results for its second quarter ended June 30, 2018.

"We've continued moving the business toward a subscriptions-based revenue model with our mix of recurring revenue now standing at 90 percent of total, a new all-time high for us," said Mike Gianoni, Blackbaud's president and CEO. "We announced our Cloud Solution for Faith Communities with the introduction of Blackbaud Church Management™ which is a massive market for us and a tremendous opportunity to deliver integrated, end-to-end cloud capabilities through a single, connected experience. Our Cloud Solution for Faith Communities takes full advantage of the rapid innovation, modern user experience and enhanced capabilities made possible by our Blackbaud SKY® platform. No one in the industry has taken this approach with a modern platform and customers are lining up to be a part of our early adopter program."

Second Quarter 2018 Results Compared to Second Quarter 2017 Results:

  • Total GAAP revenue was $213.7 million, up 11.5%, with $192.7 million in GAAP recurring revenue, representing 90.2% of total GAAP revenue. GAAP recurring revenue was up 15.8%.
                                                              
  • Total non-GAAP revenue was $214.6 million, up 11.8%, with $193.6 million in non-GAAP recurring revenue, representing 90.2% of total non-GAAP revenue. Non-GAAP recurring revenue was up 16.2%.
                                                              
  • Non-GAAP organic revenue increased 4.8% and non-GAAP organic recurring revenue increased 8.0%.
                                                              
  • GAAP income from operations decreased 31.2% to $11.4 million, with GAAP operating margin decreasing 330 basis points to 5.3%.
                                                              
  • Non-GAAP income from operations increased 11.9% to $45.2 million, with non-GAAP operating margin increasing 10 basis points to 21.1%.
                                                              
  • GAAP net income decreased 40.2% to $6.6 million, with GAAP diluted earnings per share of $0.14, down $0.09.
                                                              
  • Non-GAAP net income increased 28.8% to $33.0 million, with non-GAAP diluted earnings per share of $0.69, up $0.15.
                                                              
  • Non-GAAP free cash flow was $41.6 million, an increase of $9.8 million.

"We've been diligently executing a workplace strategy to better align our organizational objectives with our geographically diverse workforce in the second quarter," said Tony Boor, Blackbaud's executive vice president and CFO. "We moved into our new state-of-the-art world headquarters in Charleston, SC, and continued upgrading and expanding our satellite office locations to be more centrally located for employees and closer to customers. We expect to incur near-term before tax restructuring charges from $6 to $8 million through 2019 with future expected annual before-tax savings of between $3 and $4 million beginning in 2020. We've also seen solid gains in our sales productivity and plan to ramp sales hiring heading into the second-half of 2018 with the expectation that we won't see material top-line return on these investments until 2019 and more fully in 2020."

An explanation of all non-GAAP financial measures referenced in this press release is included below under the heading "Non-GAAP Financial Measures." A reconciliation of the company's 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.

Recent Company Highlights:

Visit www.blackbaud.com/press-room for more information about Blackbaud's recent highlights.

Dividend
Blackbaud announced today that its Board of Directors has declared a third quarter 2018 dividend of $0.12 per share payable on September 14, 2018 to stockholders of record on August 28, 2018.

Financial Outlook
Blackbaud today reaffirmed its 2018 full year financial guidance:

  • Non-GAAP revenue of $870 million to $890 million
  • Non-GAAP operating margin of 20.6% to 21.0%
  • Non-GAAP diluted earnings per share of $2.75 to $2.88
  • Non-GAAP free cash flow of $165 million to $175 million

Blackbaud has not reconciled forward-looking full-year non-GAAP financial measures contained in this news release to their most directly comparable GAAP measures, as permitted by Item 10(e)(1)(i)(B) of Regulation S-K. Such reconciliations would require unreasonable efforts at this time to estimate and quantify with a reasonable degree of certainty various necessary GAAP components, including for example those related to compensation, acquisition transactions and integration, tax items or others that may arise during the year. These components and other factors could materially impact the amount of the future directly comparable GAAP measures, which may differ significantly from their non-GAAP counterparts.

Reclassifications
Our revenue from "subscriptions" and "maintenance" and a portion of our "services and other" revenue have been combined within "recurring" revenue beginning in 2018. In order to provide comparability between periods presented, those amounts of revenue have been combined within "recurring" revenue in the previously reported consolidated statements of comprehensive income to conform to presentation of the current period. Similarly, "cost of subscriptions" and "cost of maintenance" and a portion of "cost of services and other" have been combined within "cost of recurring" in the previously reported consolidated statements of comprehensive income to conform to presentation of the current period. "Services and other" revenue has been renamed as "one-time services and other" and consists of revenue that did not meet the description of "recurring" revenue in the consolidated statements of comprehensive income. "Cost of services and other" has been renamed as "cost of one-time services and other" and consists of costs that did not meet the description of those related to "recurring" revenue in the consolidated statements of comprehensive income.

Adoption of New Revenue Accounting Standard
On January 1, 2018, we adopted Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09"), using the full retrospective method of transition, which requires that the standard be applied to all periods presented. The impacts of adoption are reflected in the financial information herein. We have provided more detailed information regarding the impact of our adoption of ASU 2014-09 in a Form 8-K filed with the Securities and Exchange Commission on April 30, 2018. We have also made that information accessible via the Investor Relations section of our website.

Conference Call Details

What:

Blackbaud's 2018 Second Quarter Conference Call

When:

July 31, 2018

Time:

8:00 a.m. (Eastern Time)

Live Call:

800-289-0462 (US/Canada); passcode 367579.

Webcast:

Blackbaud's Investor Relations Webpage

About Blackbaud
Blackbaud (NASDAQ: BLKB) is the world's leading cloud software company powering social good. Serving the entire social good community—nonprofits, foundations, companies, education institutions, healthcare organizations and individual change agents—Blackbaud connects and empowers organizations to increase their impact through cloud software, services, expertise, and data intelligence. The Blackbaud portfolio is tailored to the unique needs of vertical markets, with solutions for fundraising and CRM, marketing, advocacy, peer-to-peer fundraising, corporate social responsibility, school management, ticketing, grantmaking, financial management, payment processing, and analytics. Serving the industry for more than three decades, Blackbaud is headquartered in Charleston, South Carolina and has operations in the United States, Australia, Canada and the United Kingdom. For more information, visit www.blackbaud.com.

Investor Contact:


Media Contact:


Mark Furlong


Nicole McGougan


Director of Investor Relations


Public Relations Manager


843-654-2097


843-654-3307


mark.furlong@blackbaud.com


nicole.mcgougan@blackbaud.com


Forward-Looking Statements
Except for historical information, all of the statements, expectations, and assumptions contained in this news release are forward-looking statements which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding: the predictability of our financial results, expectations that our revenue will continue to grow, and expectations that we will achieve our projected 2018 full-year financial guidance. These statements 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: management of integration of acquired companies; uncertainty regarding increased business and renewals from existing customers; a shifting revenue mix that may impact gross margin; continued success in sales growth; risks related to our dividend policy and stock repurchase program, including the possibility that we might discontinue payment of dividends; 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. Blackbaud assumes no obligation and does not intend to update these forward-looking statements, except as required by law.

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

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 revenue, non-GAAP recurring revenue, non-GAAP gross profit, non-GAAP gross margin, non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income and non-GAAP diluted earnings per share. Blackbaud has acquired businesses whose net tangible assets include deferred revenue. In accordance with GAAP reporting requirements, Blackbaud recorded write-downs of deferred revenue to fair value, which resulted in lower recognized revenue. Both on a quarterly and year-to-date basis, the revenue for the acquired businesses is deferred and typically recognized over a one-year period, so Blackbaud's GAAP revenues for the one-year period after the acquisitions will not reflect the full amount of revenues that would have been reported if the acquired deferred revenue was not written down to fair value. The non-GAAP measures described above reverse the acquisition-related deferred revenue write-downs so that the full amount of revenue booked by the acquired companies is included, which Blackbaud believes provides a more accurate representation of a revenue run-rate in a given period. In addition to reversing write-downs of acquisition-related deferred revenue, non-GAAP financial measures discussed above exclude the impact of certain items that Blackbaud believes are not directly related to its performance in any particular period, but are for its long-term benefit over multiple periods.

In addition, Blackbaud uses non-GAAP organic revenue growth, non-GAAP organic revenue growth on a constant currency basis and non-GAAP organic recurring revenue growth, in analyzing its operating performance. Blackbaud believes that these non-GAAP measures are useful to investors, as a supplement to GAAP measures, for evaluating the periodic growth of its business on a consistent basis. Each of these measures excludes incremental acquisition-related revenue attributable to companies acquired in the current fiscal year. For companies acquired in the immediately preceding fiscal year, each of these measures reflects presentation of full-year incremental non-GAAP revenue derived from such companies as if they were combined throughout the prior period, and it includes the non-GAAP revenue attributable to those companies, as if there were no acquisition-related write-downs of acquired deferred revenue to fair value as required by GAAP. In addition, each of these measures excludes prior period revenue associated with divested businesses. The exclusion of the prior period revenue is to present the results of the divested businesses within the results of the combined company for the same period of time in both the prior and current periods. Blackbaud believes this presentation provides a more comparable representation of its current business' organic revenue growth and revenue run-rate.

Non-GAAP free cash flow is defined as operating cash flow less capital expenditures, including costs required to be capitalized for software development, and capital expenditures for property and equipment.

As previously disclosed, beginning in 2018, Blackbaud applies a non-GAAP effective tax rate of 20.0% when calculating non-GAAP net income and non-GAAP diluted earnings per share. The non-GAAP tax rate will be reviewed annually to determine whether it remains appropriate in consideration of Blackbaud's financial results including its periodic effective tax rate calculated in accordance with GAAP, its operating environment and related tax legislation in effect and other factors deemed necessary. All 2017 measures of non-GAAP net income and non-GAAP diluted earnings per share included in this news release are calculated under Blackbaud's historical non-GAAP effective tax rate of 32.0%.

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 these non-GAAP financial measures reflect Blackbaud's ongoing business in a manner that allows for meaningful period-to-period comparison and analysis of trends in its business. In addition, Blackbaud believes that the use of these non-GAAP financial measures provides additional information for investors to use in evaluating ongoing operating results and trends and in comparing its financial results from period-to-period with other companies in Blackbaud's industry, many of which present similar non-GAAP financial measures to investors. However, these non-GAAP financial measures may not be completely comparable to similarly titled measures of other companies due to differences in the exact method of calculation between companies. 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 measures.

Blackbaud, Inc.

Consolidated balance sheets

(Unaudited)


(dollars in thousands)

June 30,

 2018

December 31,

 2017

Assets



Current assets:



Cash and cash equivalents

$

29,194

$

29,830

Restricted cash due to customers

295,463

610,344

Accounts receivable, net of allowance of $5,501 and $5,141 at June 30, 2018 and
December 31, 2017, respectively

130,509

95,679

Customer funds receivable

5,528

1,536

Prepaid expenses and other current assets

75,816

61,978

Total current assets

536,510

799,367

Property and equipment, net

44,531

42,243

Software development costs, net

62,023

54,098

Goodwill

547,312

530,249

Intangible assets, net

317,220

314,651

Other assets

64,089

57,238

Total assets

$

1,571,685

$

1,797,846

Liabilities and stockholders' equity



Current liabilities:



Trade accounts payable

$

31,141

$

24,693

Accrued expenses and other current liabilities

46,182

54,399

Due to customers

300,991

611,880

Debt, current portion

8,576

8,576

Deferred revenue, current portion

306,365

275,063

Total current liabilities

693,255

974,611

Debt, net of current portion

471,236

429,648

Deferred tax liability

48,055

48,023

Deferred revenue, net of current portion

3,442

3,643

Other liabilities

7,474

5,632

Total liabilities

1,223,462

1,461,557

Commitments and contingencies



Stockholders' equity:



Preferred stock; 20,000,000 shares authorized, none outstanding

Common stock, $0.001 par value; 180,000,000 shares authorized, 59,301,209
and 58,551,761 shares issued at June 30, 2018 and December 31, 2017, respectively

59

59

Additional paid-in capital

375,949

351,042

Treasury stock, at cost; 10,735,926 and 10,475,794 shares at June 30, 2018 and
December 31, 2017, respectively

(264,383)

(239,199)

Accumulated other comprehensive loss

(1,011)

(642)

Retained earnings

237,609

225,029

Total stockholders' equity

348,223

336,289

Total liabilities and stockholders' equity

$

1,571,685

$

1,797,846

 

 

Blackbaud, Inc.

Consolidated statements of comprehensive income

(Unaudited)


(dollars in thousands, except per share amounts)

Three months ended

 June 30,



Six months ended

 June 30,

2018

2017


2018

2017

Revenue






Recurring

$

192,749

$

166,389


$

373,595

$

326,436

One-time services and other

20,923

25,200


44,261

50,225

Total revenue

213,672

191,589


417,856

376,661

Cost of revenue






Cost of recurring

76,350

66,178


145,429

130,053

Cost of one-time services and other

18,822

20,817


37,780

42,424

Total cost of revenue

95,172

86,995


183,209

172,477

Gross profit

118,500

104,594


234,647

204,184

Operating expenses






Sales, marketing and customer success

48,493

42,580


93,970

83,577

Research and development

25,297

22,870


51,255

45,576

General and administrative

28,447

21,882


53,498

43,805

Amortization

1,201

739


2,470

1,430

Restructuring

3,688


4,499

Total operating expenses

107,126

88,071


205,692

174,388

Income from operations

11,374

16,523


28,955

29,796

Interest expense

(4,303)

(3,216)


(7,820)

(5,593)

Other income, net

346

827


506

1,113

Income before provision for income taxes

7,417

14,134


21,641

25,316

Income tax provision (benefit)

825

3,105


(2,702)

1,145

Net income

$

6,592

$

11,029


$

24,343

$

24,171

Earnings per share






Basic

$

0.14

$

0.24


$

0.52

$

0.52

Diluted

$

0.14

$

0.23


$

0.51

$

0.51

Common shares and equivalents outstanding






Basic weighted average shares

47,222,657

46,662,481


47,121,692

46,584,263

Diluted weighted average shares

48,053,094

47,691,340


48,030,547

47,586,893

Dividends per share

$

0.12

$

0.12


$

0.24

$

0.24

Other comprehensive (loss) income






Foreign currency translation adjustment

(8,817)

(349)


(2,380)

(197)

Unrealized gain (loss) on derivative instruments, net of tax

765

(4)


1,844

178

Total other comprehensive loss

(8,052)

(353)


(536)

(19)

Comprehensive (loss) income

$

(1,460)

$

10,676


$

23,807

$

24,152

 

Blackbaud, Inc.

Consolidated statements of cash flows

(Unaudited)



Six months ended
 June 30,

(dollars in thousands)

2018

2017

Cash flows from operating activities



Net income

$

24,343

$

24,171

Adjustments to reconcile net income to net cash provided by operating activities:



Depreciation and amortization

39,847

36,481

Provision for doubtful accounts and sales returns

3,697

5,469

Stock-based compensation expense

24,953

20,129

Deferred taxes

1,121

(1,524)

Amortization of deferred financing costs and discount

376

468

Other non-cash adjustments

(419)

(540)

Changes in operating assets and liabilities, net of acquisition and disposal of
businesses:



Accounts receivable

(38,092)

(44,809)

Prepaid expenses and other assets

(18,629)

(3,262)

Trade accounts payable

6,327

(3,951)

Accrued expenses and other liabilities

(6,675)

(8,467)

Deferred revenue

29,545

30,386

Net cash provided by operating activities

66,394

54,551

Cash flows from investing activities



Purchase of property and equipment

(9,575)

(5,666)

Capitalized software development costs

(16,359)

(13,614)

Purchase of net assets of acquired companies, net of cash and restricted cash acquired

(45,315)

(49,729)

Purchase of derivative instruments

(516)

Net cash used in investing activities

(71,249)

(69,525)

Cash flows from financing activities



Proceeds from issuance of debt

173,500

575,700

Payments on debt

(132,150)

(529,169)

Debt issuance costs

(3,085)

Employee taxes paid for withheld shares upon equity award settlement

(25,184)

(16,644)

Proceeds from exercise of stock options

11

14

Change in due to customers

(309,189)

(85,581)

Change in customer funds receivable

(4,391)

Dividend payments to stockholders

(11,653)

(11,530)

Net cash used in financing activities

(309,056)

(70,295)

Effect of exchange rate on cash, cash equivalents, and restricted cash

(1,606)

(196)

Net decrease in cash, cash equivalents, and restricted cash

(315,517)

(85,465)

Cash, cash equivalents, and restricted cash, beginning of period

640,174

370,673

Cash, cash equivalents, and restricted cash, end of period

$

324,657

$

285,208


The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amounts shown above in the consolidated statements of cash flows:

(dollars in thousands)

June 30,
 2018

December 31,
 2017

Cash and cash equivalents

$

29,194

$

29,830

Restricted cash due to customers

295,463

610,344

Total cash, cash equivalents and restricted cash in the statement of cash flows

324,657

640,174

 

 

Blackbaud, Inc.

Reconciliation of GAAP to non-GAAP financial measures

(Unaudited)


(dollars in thousands, except per share amounts)

Three months ended

 June 30,


Six months ended

 June 30,

2018

2017


2018

2017

GAAP Revenue

$

213,672


$

191,589



$

417,856


$

376,661


Non-GAAP adjustments:






Add: Acquisition-related deferred revenue write-down

919


348



1,267


348


Non-GAAP revenue

$

214,591


$

191,937



$

419,123


$

377,009








GAAP gross profit

$

118,500


$

104,594



$

234,647


$

204,184


GAAP gross margin

55.5

%

54.6

%


56.2

%

54.2

%

Non-GAAP adjustments:






Add: Acquisition-related deferred revenue write-down

919


348



1,267


348


Add: Stock-based compensation expense

1,645


950



2,740


1,741


Add: Amortization of intangibles from business combinations

10,677


10,072



21,063


19,927


Add: Employee severance

12


21



587


973


Add: Acquisition-related integration costs

25




25


86


Subtotal

13,278


11,391



25,682


23,075


Non-GAAP gross profit

$

131,778


$

115,985



$

260,329


$

227,259


Non-GAAP gross margin

61.4

%

60.4

%


62.1

%

60.3

%







GAAP income from operations

$

11,374


$

16,523



$

28,955


$

29,796


GAAP operating margin

5.3

%

8.6

%


6.9

%

7.9

%

Non-GAAP adjustments:






Add: Acquisition-related deferred revenue write-down

919


348



1,267


348


Add: Stock-based compensation expense

13,861


10,835



24,953


20,129


Add: Amortization of intangibles from business combinations

11,878


10,811



23,533


21,357


Add: Employee severance

100


120



1,031


2,866


Add: Acquisition-related integration costs

2,194




2,627


230


Add: Acquisition-related expenses

1,211


1,762



1,605


2,332


Add: Restructuring costs

3,688




4,499



Subtotal

33,851


23,876



59,515


47,262


Non-GAAP income from operations

$

45,225


$

40,399



$

88,470


$

77,058


Non-GAAP operating margin

21.1

%

21.0

%


21.1

%

20.4

%







GAAP income before provision for income taxes

$

7,417


$

14,134



$

21,641


$

25,316


GAAP net income

$

6,592


$

11,029



$

24,343


$

24,171








Shares used in computing GAAP diluted earnings per share

48,053,094


47,691,340



48,030,547


47,586,893


GAAP diluted earnings per share

$

0.14


$

0.23



$

0.51


$

0.51








Non-GAAP adjustments:






Add: GAAP income tax provision (benefit)

825


3,105



(2,702)


1,145


Add: Total non-GAAP adjustments affecting income from
operations

33,851


23,876



59,515


47,262


Add (less): Loss (gain) on derivative instrument


(475)




(475)


Add: Loss on debt extinguishment


162




162


Non-GAAP income before provision for income taxes

41,268


37,697



81,156


72,265


Assumed non-GAAP income tax provision(1)

8,254


12,063



$

16,232


$

23,125


Non-GAAP net income

$

33,014


$

25,634



$

64,924


$

49,140








Shares used in computing non-GAAP diluted earnings per share

48,053,094


47,691,340



48,030,547


47,586,893


Non-GAAP diluted earnings per share

$

0.69


$

0.54



$

1.35


$

1.03




(1)

Beginning in 2018, Blackbaud applies a non-GAAP effective tax rate of 20.0% when calculating non-GAAP net income and non-GAAP diluted earnings per share. The 2017 measures of non-GAAP net income and non-GAAP diluted earnings per share are calculated under Blackbaud's historical non-GAAP effective tax rate of 32.0%.

 

Blackbaud, Inc.

Reconciliation of GAAP to Non-GAAP financial measures (continued)

(Unaudited)


(dollars in thousands)

Three months ended

 June 30,


Six months ended

 June 30,

2018

2017


2018

2017

GAAP revenue

$

213,672


$

191,589



$

417,856


$

376,661


GAAP revenue growth

11.5

%



10.9

%


(Less) Add: Non-GAAP acquisition-related revenue (1)

(769)


11,603



(421)


20,805


Total Non-GAAP adjustments

(769)


11,603



(421)


20,805


Non-GAAP revenue (2)

$

212,903


$

203,192



$

417,435


$

397,466


Non-GAAP organic revenue growth

4.8

%



5.0

%








Non-GAAP revenue (2)

$

212,903


$

203,192



$

417,435


$

397,466


Foreign currency impact on non-GAAP revenue (3)

(1,890)




(3,983)



Non-GAAP revenue on constant currency basis (3)

$

211,013


$

203,192



$

413,452


$

397,466


Non-GAAP organic revenue growth on constant
currency basis

3.8

%



4.0

%








GAAP recurring revenue

$

192,749


$

166,389



$

373,595


$

326,436


GAAP recurring revenue growth

15.8

%



14.4

%


(Less) Add: Non-GAAP acquisition-related revenue (1)

(650)


11,558



(347)


20,567


Total Non-GAAP adjustments

(650)


11,558



(347)


20,567


Non-GAAP recurring revenue

$

192,099


$

177,947



$

373,248


$

347,003


Non-GAAP organic recurring revenue growth

8.0

%



7.6

%




(1)

Non-GAAP acquisition-related revenue excludes incremental acquisition-related revenue calculated in accordance with GAAP that is attributable to
companies acquired in the current fiscal year. For companies acquired in the immediately preceding fiscal year, non-GAAP acquisition-related revenue
reflects presentation of full-year incremental non-GAAP revenue derived from such companies, as if they were combined throughout the prior period, and
it includes the non-GAAP revenue from the acquisition-related deferred revenue write-down attributable to those companies.

(2)

Non-GAAP revenue for the prior year periods presented herein may not agree to non-GAAP revenue presented in the respective prior period
quarterly financial information solely due to the manner in which non-GAAP organic revenue growth is calculated.

(3)

To determine non-GAAP organic revenue growth on a constant currency basis, revenues from entities reporting in foreign currencies were translated to U.S.
Dollars using the comparable prior period's quarterly weighted average foreign currency exchange rates. The primary foreign currencies creating the impact
are the Canadian Dollar, EURO, British Pound and Australian Dollar.



(dollars in thousands)

Six months ended

 June 30,

2018

2017

GAAP net cash provided by operating activities

$

66,394


$

54,551


Less: purchase of property and equipment

(9,575)


(5,666)


Less: capitalized software development costs

(16,359)


(13,614)


Non-GAAP free cash flow

$

40,460


$

35,271


 

Power your passion

 

Cision View original content with multimedia:http://www.prnewswire.com/news-releases/blackbaud-announces-2018-second-quarter-results-300688683.html

SOURCE Blackbaud

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