February 6, 2009

Blackbaud Reports Lower Earnings for Q4

By Staff  /  Charleston Regional Business Journal

Blackbaud Inc., the Daniel Island company that designs software and related services for nonprofit organizations, announced that its fourth-quarter earnings were down 27% from the prior year.

Net income for the fourth quarter was $6.5 million. Blackbaud reported $80.4 million in total revenue for the quarter. Earnings per share were 24 cents for the fourth quarter, higher than the expected 23 cents per share. For all of 2008, the company's earnings of $29.9 million were down about 6% from 2007. Total revenue for the year was $302.5 million, an 18% increase from the prior year.

CEO Marc Chardon said the company saw growth in its services and better-than-expected profitability, even during one of the most challenging times for nonprofit organizations. Fourth-quarter subscription revenue was about twice that of license revenue, a positive trend for the company's business model, he said.

"As we enter 2009, we will continue to manage expenses carefully, balancing our desire to maintain high profitability levels with the opportunity to invest in initiatives that will enhance the company's long-term growth," Chardon said. "We believe Blackbaud is well-positioned to continue executing effectively through this difficult time period, and we expect to emerge with our leadership position further enhanced."