Blackbaud (BLKB) Q1 2025 earnings summary

Executive summary

• Achieved Q1 2025 organic revenue growth of 5.8% and improved profitability, despite a 3.1% GAAP revenue decline due to the EVERFI divestiture.

• Maintained market leadership in social impact software, serving over 40,000 customers in 100+ countries, with customer retention above 90%.

• Operating income nearly doubled to $20.4M, driven by cost reductions and lower Security Incident costs, offset by a $24.3M lease termination charge.

• Continued innovation in AI-driven fundraising tools, product enhancements, and payment solutions to support customer value and retention.

• Transitioned CFO duties from Tony Boor to Chad Anderson, ensuring continuity in financial leadership.

Financial highlights

• Q1 2025 revenue was $270.7M, with non-GAAP organic revenue growth of 5.8% year-over-year.

• Non-GAAP adjusted EBITDA was $92.8M, margin 34.3%, up 250 bps year-over-year.

• Non-GAAP diluted EPS was $0.96, up from $0.93 last year; GAAP EPS was $0.10, unchanged.

• Adjusted free cash flow was negative $11.4M, impacted by a $24.3M office lease payment and Security Incident costs.

• Repurchased approximately 4% of outstanding shares in Q1 2025, with $545M remaining under authorization.

Outlook and guidance

• FY 2025 revenue guidance: $1,115M–$1,125M, organic growth of 4.5%–5.4% at constant currency.

• Adjusted EBITDA margin expected at 34.9%–35.9%; non-GAAP EPS guidance of $4.16–$4.35.

• Adjusted free cash flow guidance of $185M–$195M, including one-time investments and legal fees.

• Interest expense for 2025 expected at $65M–$69M; capital expenditures at $55M–$65M.

• Plan to repurchase 3%–5% of outstanding shares in 2025.