Summary
Blackbaud faced a transformative period during the nine months ending September 30, 2013. The company reported a significant increase in operating cash flow, which rose to $78 million, an uptick of $38.3 million compared to the same timeframe in 2012. This was attributed primarily to higher earnings and adjustments for non-cash transactions, coupled with a noteworthy enhancement in the company's working capital management.
In terms of cash flow dynamics, Blackbaud experienced a $10 million boost in cash flow from operations related to working capital. This increase was largely due to more effective collection of accounts receivable and reduced days sales outstanding, which contributed to the improved cash flows.
On the investing cash flow front, Blackbaud noted a slight reduction in expenditures for computer equipment and software supporting their subscription-based offerings, with spending dropping to $13.4 million from $15.4 million a year earlier. This reduction was somewhat balanced by a $1.8 million increase in capitalized software development costs, reflecting continued investment in their subscription services.
Financing activities over the same period showed Blackbaud's focus on reducing leverage, with a $41.8 million net reduction in debt, contrasting sharply with the previous year's $245 million increase in debt used for the Convio acquisition. The consistency in dividend payments, totaling $16.5 million, highlights the company's commitment to returning value to shareholders despite significant changes elsewhere in their financials.
Regarding future commitments, Blackbaud had $284.3 million in minimum commitments as of September 30, 2013, comprising operating leases, and debt and interest obligations. These commitments span different time frames, with notable payments expected in less than a year ($26.9 million) and significant long-term debt and interest payments projected.
Overall, Blackbaud's financial strategy during this period reflects a significant shift from debt-funded expansion with the Convio acquisition to a more balanced approach emphasizing operational efficiency and selective investment in technological infrastructure. Their financial condition underscores a solid cash position bolstered by improved operational cash flows and strategic debt reduction, setting a foundation for potential growth and stability going forward.
Forecast
No forward guidance in this quarter's filings.
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2013 | Q2 FY2013 | QoQ | Q3 FY2012 | YoY |
|---|---|---|---|---|---|
| Revenue | $127.9M | $125.5M | +1.9% | $122.5M | +4.4% |
| Gross profit | $71.7M | $68.9M | +4.2% | $67.3M | +6.5% |
| Gross margin | 56.1% | 54.9% | +1.2 pp | 55.0% | +1.1 pp |
| Research & development | $16.5M | $16.5M | +0.4% | $19.2M | -13.8% |
| Sales & marketing | $23.8M | $24.4M | -2.4% | $26.3M | -9.3% |
| General & administrative | $12.6M | $12.8M | -1.7% | $15.0M | -15.7% |
| Total operating expenses | $53.7M | $54.5M | -1.5% | $61.2M | -12.1% |
| Operating income (loss) | $18.0M | $14.3M | +25.8% | $6.2M | +191.2% |
| Operating margin | 14.1% | 11.4% | +2.7 pp | 5.0% | +9.0 pp |
| Net income (loss) | $9.4M | $6.6M | +41.8% | $2.8M | +232.5% |
| Net margin | 7.3% | 5.3% | +2.1 pp | 2.3% | +5.0 pp |
| Diluted EPS | $0.21 | $0.15 | +$0.06 | $0.06 | +$0.15 |
| Customers | 29,000 | — | — | — | — |
Summary, forecast, risks and KPIs are extracted from BLACKBAUD INC's SEC filings for Q3 FY2013 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Aug 4, 2026.