February 8, 2011

Blackbaud Reports 2010 Profit

John McDermott  /  Post and Courier

Software provider projects growth of 10% this year

Charleston-based software firm Blackbaud Inc. reported growing sales and profits as it closed out 2010, a signal that the nonprofit groups it targets are starting to loosen their technology spending budgets.

The company on Monday also projected revenue growth of 10 percent this year, excluding a newly acquired business, while boosting its dividend payout by about 9 percent.

Fourth-quarter earnings at Blackbaud, the world's largest provider of fundraising software and services tailored especially for nonprofits, rose about 7.3 percent to $8.5 million compared to the same period of 2009. Revenue from software subscriptions, licensing fees, maintenance services and other sources increased about 10 percent to $87 million compared to the same period of 2009, with much of the gain coming from improved conditions in North America and an expanded product line.

The results met expectations.

For the full year, Blackbaud earned about $30 million, up 5 percent from 2009. Revenue totaled $327 million, or 6 percent higher.

Marc Chardon, president and chief executive officer, said he was encouraged that sales, which started out 2010 essentially flat, approached a double-digit increase as the year wound down.

But as in past quarters, Chardon tempered his optimism, saying the giving industry "has a long way to go to return to comparable levels of three or four years ago."

"We believe our end-market conditions are stable, with isolated pockets of improvement," he said. "But it remains uncertain how quickly a macro-economic improvement would have a materially positive impact on the nonprofit sector."

The company was bullish enough to predict "organic" revenue growth of 10 percent, not including its recently announced $17.5 million purchase of Public Interest Data Inc., an Alexandria, Va.-based firm that provides nonprofit groups with database management and other technical services.

Also, Blackbaud said it will be returning more profits to investors, as the Daniel Island-based tech company approved a 4 cents-per-share increase in its annual dividend, bringing the total to 48 cents. The first quarterly payment at the higher rate of 12 cents will be made March 15, to stockholders of record Feb. 28.

Blackbaud released its latest financial results after U.S. stock markets had closed. Shares gained 31 cents Monday, ending the trading session at $26.70.