Blackbaud(BLKB) - 2024 Q4 - Annual Results

Revenue Performance - GAAP total revenue for Q4 2024 was $302.2 million, up 2.4% year-over-year, while non-GAAP organic revenue increased by 3.2%[6] - For the full year 2024, GAAP total revenue was$ 1.2 billion, up 4.5%, with non-GAAP organic revenue increasing by 5.2%[10] - Total revenue for Q4 2024 was $302.232 million, a slight increase from$ 295.011 million in Q4 2023, representing a year-over-year growth of 0.4%[31] - Recurring revenue for the year ended December 31, 2024, reached $1.129 billion, up from$ 1.072 billion in 2023, indicating a growth of approximately 5.4%[31] - GAAP revenue for Q4 2024 was $302,232 thousand, representing a 2.4% increase from$ 295,011 thousand in Q4 2023[40] - Non-GAAP organic revenue for Q4 2024 was $302,232 thousand, with a growth rate of 3.2% compared to$ 292,798 thousand in Q4 2023[40] Profitability and Loss - GAAP net loss for Q4 2024 was $330.8 million, including pre-tax EVERFI impairment charges of$ 405.4 million, resulting in a diluted loss per share of $6.74[6] - The company reported a net loss of$ 330.764 million for Q4 2024, compared to a net income of $5.399 million in Q4 2023, reflecting a significant decline in profitability[31] - Non-GAAP net income for the year ended December 31, 2024, was$ 210,671 thousand, slightly down from $213,631 thousand in 2023[40] - GAAP net loss for Q4 2024 was$ (330,764) thousand, compared to a net income of $5,399 thousand in Q4 2023[40] Operating Metrics - GAAP recurring revenue reached$ 296.2 million, representing 98% of total revenue, with a 3.1% increase compared to Q4 2023[6] - Non-GAAP adjusted EBITDA for Q4 2024 was $102.2 million, reflecting a margin of 33.8%, an increase of 20 basis points[6] - The company achieved a GAAP operating cash flow margin of 24.3% in Q4 2024, an increase of 2,540 basis points year-over-year[6] - Non-GAAP adjusted EBITDA for Q4 2024 was$ 102,242, reflecting a margin of 33.8%, slightly up from 33.7% in Q4 2023[45] - The company reported a GAAP operating cash flow margin of 25.6% for the year 2024, an increase from 18.1% in 2023[51] Cash Flow and Expenses - Blackbaud's non-GAAP adjusted free cash flow for 2025 is anticipated to be between $185 million to$ 195 million[13] - Cash and cash equivalents increased to $67.628 million as of December 31, 2024, from$ 31.251 million at the end of 2023, marking a growth of 116.4%[29] - Operating expenses surged to $531.505 million in Q4 2024, compared to$ 126.862 million in Q4 2023, primarily due to the $405.360 million expense related to the EVERFI disposition[31] - Non-GAAP free cash flow for the year ended December 31, 2024, was$ 228,768, with a margin of 19.8%, compared to $135,506 and 12.3% in 2023[51] Future Guidance and Plans - Blackbaud plans to repurchase 3% to 5% of its total outstanding shares in 2025, following a 10% repurchase in 2024[7] - Blackbaud's 2025 financial guidance includes expected GAAP revenue of$ 1.115 billion to $1.125 billion, with organic revenue growth projected at 4.5% to 5.4%[13] - Non-GAAP net income for 2025 is projected to be$ 210.7 million, with diluted earnings per share expected to be $4.07, an increase of$ 0.09[13] Balance Sheet and Liabilities - Total assets decreased to $2.496 billion in 2024 from$ 2.912 billion in 2023, a decline of approximately 14.3%[29] - The company's total liabilities increased to $2.354 billion in 2024, up from$ 2.104 billion in 2023, representing a rise of about 11.9%[29] Key Performance Indicators - The Rule of 40 metric, which combines non-GAAP organic revenue growth and adjusted EBITDA margin, is a key performance indicator for evaluating the company's financial health[26] - The Rule of 40 metric for Q4 2024 was 37.0%, down from 38.9% in Q4 2023[45]