Blackbaud Q2 2025 Earnings Call Transcript

Blackbaud, Inc. (BLKB) reported Q2 2025 earnings, with CEO Mike Gianoni and CFO Chad Anderson leading the conference call. The discussion focused on non-GAAP results, and the company provided full details on its financial performance in its press release and investor materials. The company has a history of making forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ materially from those projected.

Blackbaud Inc. (BLKB), the leading provider of software for powering social impact, announced its second-quarter 2025 earnings on July 30, 2025. The company reported strong financial performance, with CEO Mike Gianoni and CFO Chad Anderson leading the conference call. The discussion focused on non-GAAP results, and the company provided full details on its financial performance in its press release and investor materials.

Key highlights from the earnings report include:

- Revenue: GAAP total revenue was $281.4 million, down 2.1% from the same period last year, driven by the divestiture of EVERFI. Non-GAAP organic revenue increased by 6.8%.
- Recurring Revenue: GAAP recurring revenue was $275.6 million, down 2.0%, and represented 98.0% of total revenue. Non-GAAP organic recurring revenue increased by 6.9%.
- Income from Operations: GAAP income from operations was $56.7 million, with a GAAP operating margin of 20.1%, an increase of 540 basis points. Non-GAAP income from operations was $94.3 million, with a non-GAAP operating margin of 33.5%, an increase of 350 basis points.
- Net Income: GAAP net income was $26.0 million, with GAAP diluted earnings per share of $0.54, up $0.12 per share. Non-GAAP net income was $58.2 million, with non-GAAP diluted earnings per share of $1.21, up $0.13 per share.
- Free Cash Flow: Non-GAAP free cash flow was $51.5 million, an increase of $18.9 million, with a non-GAAP free cash flow margin of 18.3%, an increase of 690 basis points.
- Rule of 40: The company achieved a Rule of 40 score of 45.3%, the highest in its history.

Blackbaud also raised its full-year 2025 financial guidance across all key metrics, driven by its strong performance in the first half of the year. The updated guidance includes:

- GAAP revenue of $1.120 billion to $1.130 billion.
- Non-GAAP adjusted EBITDA margin of 35.4% to 36.2%.
- Non-GAAP earnings per share of $4.30 to $4.50.
- Non-GAAP adjusted free cash flow of $190 million to $200 million.

The company noted that these projections do not contemplate the future impact of the One Big Beautiful Bill Act.

Blackbaud highlighted its strategic integration with Constant Contact, the release of its 2025 Status of Fundraising report, and its commitment to environmental, social, and governance (ESG) priorities. The company also announced keynote speakers and sessions for its annual conference, bbcon 2025.

The earnings report reflects Blackbaud's commitment to delivering greater value to its customers and shareholders. However, the company cautioned that its forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected.

References:
[1] https://finance.yahoo.com/news/blackbaud-announces-2025-second-quarter-110000464.html