Summary
Blackbaud closed fiscal 2024 with a fourth quarter that held up on the top line and absorbed a large accounting hit on the bottom line. Revenue for the quarter ended December 31, 2024 was $302.2 million, up 2.4% from the prior-year quarter. Full-year revenue was $1.16 billion, up 4.5%. Gross profit was $164.4 million for the quarter, up 3.3%, and $639.2 million for the year, up 6.0%. Gross margin was 54.4% in the quarter, up 0.4 percentage points, and 55.3% for the full year, up 0.7 percentage points.
The GAAP loss lines carry the quarter's real story. Operating loss was $367.1 million, a swing to a loss from operating income of $32.3 million in the prior-year quarter. For the full year, operating loss was $270.5 million, also a swing to a loss from $44.7 million. Net loss was $330.8 million in the quarter against net income of $5.4 million a year earlier, and $283.2 million for the full year against net income of $1.8 million. Full-year diluted loss per share was $5.60, a swing to a loss from diluted earnings per share of $0.03. Operating margin was negative 121.5% in the quarter, down 132.4 percentage points, and negative 23.4% for the year, down 27.5 percentage points. Almost all of the damage sits in one line: $405.4 million of aggregate pre-tax EVERFI impairment and disposition charges, which included $390.2 million of noncash impairment charges and a $15.2 million loss on disposition.
Strip those charges out and the operating picture looks steadier. Non-GAAP income from operations was $82.7 million at a 27.4% margin, down 100 basis points. Non-GAAP net income was $54.4 million and non-GAAP diluted earnings per share was $1.08, down $0.06. Non-GAAP adjusted EBITDA was $102.2 million, up $3.0 million, at a 33.8% margin, up 20 basis points. Cash generation was the standout. Operating cash flow was $73.6 million for the quarter, up from negative $3.3 million a year earlier, and $296.0 million for the full year, up 48.3%. Non-GAAP free cash flow was $56.5 million in the quarter, up $75.1 million, and $228.8 million for the year, up $93.3 million. Capital expenditures were $0.2 million in the quarter, down 52.9%, and $7.4 million for the year, up 58.9%.
Management framed 2025 as another year of growth and margin expansion. Full-year guidance calls for organic revenue growth at constant currency of 4.5% to 5.4%, a non-GAAP adjusted EBITDA margin of 34.9% to 35.9%, non-GAAP earnings per share of $4.16 to $4.35, and non-GAAP adjusted free cash flow of $185 million to $195 million. Capital expenditures are guided to $55 million to $65 million for the full year, including $50 million to $60 million of capitalized software development costs. Interest expense is expected at $65 million to $69 million and fully diluted shares at 48.5 million to 49.5 million. The CEO pointed to a path to becoming a Rule of 45 company by 2030.
Capital returns remain central. Blackbaud repurchased 10% of its outstanding stock in 2024, a figure that rises to 11% when net share settlement on employee stock compensation is added back. The company plans to buy back 3% to 5% of total outstanding shares in 2025 and had roughly $645 million remaining under its repurchase program at December 31, 2024.
Operationally, the Social Sector carried the year. That segment represents about 88% of total revenue and grew $67.4 million, or 7.1%. The Corporate Sector, about 12% of revenue, fell $17.3 million, or 11.5%, dragged by EVERFI. Gross dollar retention was approximately 90% for 2024, consistent with 2023, and approximately 92% excluding EVERFI. Deferred revenue stood at $361.5 million at December 31, 2024, down 8.5%, largely because of the EVERFI divestiture. Headcount was about 2,600 after the sale, the net leverage ratio was 2.57 to 1.00, and cash and cash equivalents were $67.6 million.
The risk list is familiar but real. Blackbaud cites cybersecurity and data protection risks and related liabilities, potential litigation, a shifting revenue mix that may pressure gross margin, uncertainty around renewals from existing customers, and the challenge of integrating acquired companies. The Security Incident still costs money. Net pre-tax expenses tied to it were $13.7 million in 2024, and the company expects $2.0 million to $3.0 million of pre-tax expense and $3.0 million to $4.0 million of net cash outlays in 2025. In February 2025 the company made a one-time $28 million cash release payment to exit its Washington, DC office lease. A full valuation allowance now sits against all U.S. deferred tax assets, which will keep the GAAP tax line volatile.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2024 | Q3 FY2024 | QoQ | Q4 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $302.2M | $286.7M | +5.4% | $295.0M | +2.4% |
| Gross profit | $164.4M | $159.2M | +3.2% | $159.2M | +3.3% |
| Gross margin | 54.4% | 55.5% | -1.1 pp | 54.0% | +0.4 pp |
| Research & development | $39.3M | $39.4M | -0.1% | $38.6M | +1.9% |
| Sales & marketing | $50.1M | $49.5M | +1.3% | $52.1M | -3.9% |
| General & administrative | $35.9M | $25.6M | +39.9% | $35.4M | +1.5% |
| Total operating expenses | $531.5M | $115.4M | +360.6% | $126.9M | +319.0% |
| Operating income (loss) | -$367.1M | $43.8M | -937.7% | $32.3M | -1236.2% |
| Operating margin | -121.5% | 15.3% | -136.8 pp | 10.9% | -132.4 pp |
| Net income (loss) | -$330.8M | $20.5M | -1710.2% | $5.4M | -6226.4% |
| Net margin | -109.4% | 7.2% | -116.6 pp | 1.8% | -111.3 pp |
| Diluted EPS | -$6.54 | $0.40 | -$6.94 | $0.10 | -$6.64 |
| Customers | 100,000 | 13,000 | +669.2% | 100,000 | ±0.0% |
Risks
The FY2024 10-K discloses a $405.4 million pre-tax loss on the EVERFI disposition, including $390.2 million of noncash impairment charges, which drove FY2024 operating income to a loss of $270.5 million from income of $44.7 million in FY2023. The company may continue to face impairment or disposition-related write-downs if acquired assets underperform.
The 2020 Security Incident remains material: FY2024 net pre-tax expenses were $13.7 million and net cash outlays were $15.9 million, insurance coverage was exceeded in Q1 2022, and active litigation and regulatory orders could result in losses materially in excess of accrued amounts.
BLKB increased indebtedness to fund stock repurchases, with debt carrying amount of $1.0 billion and net leverage ratio of 2.57 to 1.00 at December 31, 2024. Credit facility covenants restrict dividends and share repurchases, and a default could require immediate repayment of borrowings.
Blackbaud is adding generative AI features such as Blackbaud Copilot and JustGiving AI while warning that AI technologies are early-stage, subject to evolving regulation and IP uncertainty, and could render existing solutions obsolete if competitors bring AI offerings to market faster. The company may need significant additional investment to keep pace.
As of December 31, 2024, Blackbaud recorded a valuation allowance against all U.S. deferred tax assets in excess of deferred tax liabilities due to a cumulative pretax loss position and the net deferred tax asset effect of the EVERFI divestiture. Failure to realize these assets could result in future charges against earnings and reduced cash flow.
Many nonprofit customers depend on U.S. federal and state grants and charitable giving. Changes or uncertainty in government funding programs, or a decline in charitable giving, could reduce customer spending and payment processing transaction volumes.
Subscription and maintenance arrangements are generally three-year contracts, and renewals represent a significant portion of revenue; gross dollar retention was approximately 90% in 2024 and approximately 92% excluding EVERFI. If customers do not renew on beneficial terms or delay renewals, revenue and profitability could be harmed.
Competition for highly qualified personnel is intense, and equity incentive programs may be less effective if the stock price declines. The company may need additional dilutive equity or cash compensation to retain key personnel.
SaaS KPIs
All quarters →Non-GAAP Adjusted EBITDA Margin
Non-GAAP Operating Margin
Non-GAAP Organic Recurring Revenue Growth
Rule of 40
Non-GAAP Organic Revenue Growth
Non-GAAP Adjusted Free Cash Flow Margin
Non-GAAP Free Cash Flow Margin
Non-GAAP organic revenue growth on constant currency basis
Non-GAAP organic recurring revenue growth on constant currency basis
Rule of 40 on constant currency basis
Non-GAAP Adjusted EBITDA Margin on Constant Currency Basis
Summary, forecast, risks and KPIs are extracted from BLACKBAUD INC's SEC filings for Q4 FY2024 (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 Oct 1, 2026.