CHARLESTON, S.C. - May 7, 2008 - Blackbaud, Inc. (Nasdaq: BLKB), the leading provider of software and related services designed specifically for nonprofit organizations, today announced financial results for its first quarter ended March 31, 2008.

Marc Chardon, Chief Executive Officer of Blackbaud, stated, "During the first quarter, the Company delivered revenue growth and operating profitability that were in the upper half of our expectations, and cash from operations was also strong. We were pleased with this growth and overall financial performance considering the more challenging macro-economic environment in which we are currently operating."

Chardon continued, "We believe that Blackbaud's large customer base, broad and deep suite of solutions, domain expertise and set of new growth initiatives position the Company well for long-term growth. During the first quarter, we expanded our addressable market opportunity with the latest release of NetCommunity. In addition, we continue to see solid interest in and a growing pipeline for our Enterprise CRM solution. We plan to continue to invest in our products and services as we believe we have a competitive advantage in this important growth segment of the nonprofit market."

For the quarter ended March 31, 2008, Blackbaud reported total revenue of $69.4 million, an increase of 26% compared with the first quarter of 2007. License revenue increased 19% to $9.6 million, subscription revenue increased 83% to $8.8 million, services revenue increased 29% to $23.6 million, and maintenance revenue increased 13% to $25.4 million, all compared with the same period in 2007.

Blackbaud's income from operations and net income, determined in accordance with generally accepted accounting principles ("GAAP"), were $11.3 million and $7.0 million, respectively, for the first quarter of 2008. This compares to GAAP income from operations of $9.3 million and net income of $5.8 million in the same period last year. GAAP diluted earnings per share were $0.16 for the quarter ended March 31, 2008, compared with $0.13 in the same period last year. For the quarter ended March 31, 2008, non-GAAP income from operations, which excludes stock-based compensation expense and amortization of intangibles arising from business combinations, was $14.7 million, an increase of 27% from $11.6 million in the same period last year.

Non-GAAP net income was $9.0 million for the quarter ended March 31, 2008, an increase of 29% from $7.0 million in the same period last year. Non-GAAP diluted earnings per share were $0.20 for the quarter ended March 31, 2008, an increase of 25% over the same period last year. 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."

Cash from operations for the quarter ended March 31, 2008 was $14.4 million, a significant increase compared to $7.5 million generated in the same period last year. Through March 31, 2008, the Company had repurchased approximately 921,000 shares of its stock for $22.6 million.

Timothy V. Williams, Chief Financial Officer of Blackbaud, stated, "During 2007, the Company significantly increased its sources of subscription-based revenue, and we believe the Company is well positioned to benefit from those efforts in 2008 and beyond. During the first quarter of 2008, subscription revenue remained the highest growth segment of Blackbaud's revenue and was over 90% of our license revenue run rate. In fact, approximately half of Blackbaud's total revenue is now derived from recurring subscription and maintenance-based contracts, which historically have had over a 90% aggregate renewal rate. Recurring revenue sources are an important driver to the Company's strong cash flow from operations, and they enhance visibility into total revenue for the year."

Second Quarter 2008 Dividend and Share Repurchase Authorization
Blackbaud announced today that its Board of Directors has declared a second quarter dividend of $0.10 per share payable on June 16, 2008 to stockholders of record on May 28, 2008. Additionally, the Board of Directors authorized an increase in the Company's common stock share repurchase authorization to $40.0 million.

Conference Call Details
Blackbaud will host a conference call today, May 7, 2008, at 5:00 p.m. (Eastern Time) to discuss the Company's financial results, operations and related matters. To access this call, dial 800-823-4842 (domestic) or 913-312-0843 (international). A replay of this conference call will be available through May 14, 2008, at 888-203-1112 (domestic) or 719-457-0820 (international). The replay passcode is 4094628.

A live webcast of this conference call will be available on the "Investor Relations" page of the Company's Web site, and a replay will be archived on the Web site 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 19,000 organizations – including the American Red Cross, Dartmouth College, the WGBH Educational Foundation, Episcopal High School, Lincoln Center, Cancer Research UK, Special Olympics, and Arthritis Foundation – use one or more of Blackbaud products and services for fundraising, constituent relationship management, financial management, direct marketing, school administration, ticketing, business intelligence, website management, 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 Canada, the United Kingdom, and Australia. 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: uncertainty regarding increased business and renewals from existing customers; continued success in sales growth; general economic risks; management of integration of recently acquired companies and other risks associated with acquisitions; risk associated with successful implementation of multiple integrated software products; lengthy sales and implementation cycles, particularly in larger organizations; 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; 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 and costs associated with amortization of intangibles arising from business combinations. 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.

CONTACT:
Investor:
ICR Tim Dolan
617-956-6727
timothy.dolan@icrinc.com

Media:
Blackbaud, Inc.
Melanie Milonas
843-216-6200 x3307
melanie.milonas@blackbaud.com

SOURCE: Blackbaud, Inc.