Summary
Blackbaud's third quarter of fiscal year 2015 was marked by significant financial maneuvers aimed at strengthening its operational capacity. The company reported substantial cash outlays amounting to $14.6 million for property and equipment and $10.9 million for software development costs during the first nine months of 2015. This represented increases of $6.2 million and $4.6 million, respectively, compared to the same period in 2014, driven by significant investments in technology infrastructure and cloud-based solutions like Raiser's Edge NXT and Financial Edge NXT.
Additionally, Blackbaud reduced its net borrowings by $39 million during the same nine-month period, contrasting with a net increase of $19.9 million in the previous year. This shift underscores a strategic move towards reducing debt, positioning the company for sustainable long-term growth. As of September 30, 2015, the company had $272.6 million in available borrowing capacity under its 2014 Credit Facility, which it believes will be sufficient to meet future financial needs.
One of the major strategic moves was the acquisition of Smart Tuition for $187.8 million in cash, which was financed by drawing down $186 million from the revolving credit. This highlights Blackbaud’s continuous endeavors to expand its footprint in the education technology sector, leveraging existing financial resources to support growth initiatives. Post-acquisition, the total amount outstanding on revolving credit loans and term loans reached approximately $429 million.
Interest rate volatility is also being mitigated through a $75 million swap agreement that effectively transforms portions of the variable rate debt to fixed rates, indicating prudent financial management to hedge against interest rate fluctuations.
Financial covenants under Blackbaud's credit facility displayed comfortable compliance levels, demonstrating a net leverage ratio of 1.79 to 1.00 against a maximum of 3.50 to 1.00 and an interest coverage ratio of 18.78 to 1.00 against a minimum of 2.50 to 1.00. These ratios confirm strong operational performance and reflect financial resilience in managing debt obligations.
While the disclosures did not provide specific forward-looking financial guidance, the strategic initiatives and financial maneuvers exhibited in the quarter position Blackbaud optimistically for future growth and operational expansion. However, no particular risk factors were highlighted in the filings, which suggests a stable risk environment or a lack of significant new threats identified during the period.
Forecast
No forward guidance in this quarter's filings.
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2015 | Q2 FY2015 | QoQ | Q3 FY2014 | YoY |
|---|---|---|---|---|---|
| Revenue | $158.8M | $156.3M | +1.6% | $144.6M | +9.8% |
| Gross profit | $84.6M | $82.8M | +2.2% | $76.5M | +10.7% |
| Gross margin | 53.3% | 53.0% | +0.3 pp | 52.9% | +0.4 pp |
| Research & development | $20.6M | $20.2M | +2.0% | $19.7M | +4.3% |
| Sales & marketing | $31.1M | $29.7M | +4.8% | $27.1M | +14.9% |
| General & administrative | $18.4M | $18.0M | +2.7% | $15.5M | +18.9% |
| Total operating expenses | $70.7M | $68.4M | +3.4% | $62.9M | +12.3% |
| Operating income (loss) | $14.0M | $14.5M | -3.4% | $13.5M | +3.5% |
| Operating margin | 8.8% | 9.3% | -0.4 pp | 9.3% | -0.5 pp |
| Net income (loss) | $7.9M | $7.0M | +12.3% | $10.4M | -23.8% |
| Net margin | 5.0% | 4.5% | +0.5 pp | 7.2% | -2.2 pp |
| Diluted EPS | $0.17 | $0.15 | +$0.02 | $0.23 | -$0.06 |
Summary, forecast, risks and KPIs are extracted from BLACKBAUD INC's SEC filings for Q3 FY2015 (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.