Blackbaud (BLKB) Q4 2024 earnings summary

Executive summary

• Divestiture of EVERFI completed in 2024, sharpening focus on core operations and removing a dilutive business.

• Achieved significant progress in innovation, new logo wins, and deepened customer relationships across verticals in 2024.

• AI initiatives, including Blackbaud Copilot and embedded machine learning, are driving customer efficiency and product differentiation.

• Market leader in social impact software, serving 40,000+ customers and generating over $1.1B in annual recurring revenue at the 2025 guidance midpoint.

• Five-point operating plan drives product innovation, bookings growth, transactional revenue optimization, modernized pricing, and cost management.

Financial highlights

• 2024 revenue reached $1.155 billion, up 4.5% year-over-year, with adjusted EBITDA margin of 33.7%.

• Non-GAAP diluted EPS was $4.07; Rule of 40 score was 38.9% in 2024.

• Adjusted free cash flow for 2024 was $214M–$245M (19.3%–21% of revenue), with 2025 guidance midpoint at $190M.

• Repurchased 10% of common stock outstanding in 2024; plan to repurchase 3%–5% in 2025.

• EVERFI divestiture resulted in a $390M–$405.4M non-cash impairment charge and $14M in transaction costs in 2024.

Outlook and guidance

• 2025 revenue guidance: $1.115B–$1.125B, organic growth of 4.2%–5.4% as reported or constant currency.

• 2025 non-GAAP EPS expected at $4.16–$4.35, up 2%–7% year-over-year.

• Adjusted free cash flow guidance for 2025: $185M–$195M, reflecting one-time investments and higher interest expense.

• EBITDA margin expected at 34.9%–35.9%; Rule of 40 at constant currency projected at 40.4%.

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