Blackbaud Reports Q1 2025 Revenue of $270.7 Million, 3.1% Decline Year-Over-Year

Blackbaud, Inc. reported its financial results for the first quarter of 2025, revealing a revenue of $270.7 million, a decrease of 3.1% from $279.3 million in the same period last year. The decline was primarily attributed to a $14.9 million drop in contractual recurring revenue, largely due to the sale of its EVERFI business, which was partially offset by a $7.5 million increase in transactional recurring revenue. The company’s net income for the quarter was $4.9 million, compared to $5.2 million in the prior year, with earnings per share remaining stable at $0.10.

In terms of operational changes, Blackbaud has been transitioning its revenue contracts from primarily one-year to three-year terms, enhancing revenue predictability. The company also reported a significant reduction in operating expenses, which fell to $135.4 million from $142.3 million year-over-year. This decrease was driven by lower compensation costs and a reduction in expenses related to the Security Incident, which had previously impacted the company’s financials. However, general and administrative expenses rose by 18.7% due to acquisition-related costs associated with the lease release of its Washington, D.C. office.

Blackbaud's customer base and engagement metrics showed resilience, with a gross dollar retention rate of approximately 92% for the twelve months ending March 31, 2025. The company continues to support its customers through innovative solutions and has shifted most of its products to public cloud service providers, reducing reliance on private data centers. As of March 31, 2025, Blackbaud had 48,517,704 shares of common stock outstanding and repurchased 1.5 million shares for $100 million during the quarter, reflecting its commitment to returning value to shareholders.

The company’s cash and cash equivalents decreased to $37.2 million from $67.6 million at the end of 2024, while total debt rose to $1.2 billion. Blackbaud's net cash provided by operating activities was significantly lower at $1.4 million compared to $64.6 million in the previous year, primarily due to changes in working capital and a decrease in net income. The company anticipates that its available cash and credit facilities will be sufficient to meet its operational needs over the next twelve months.

Looking ahead, Blackbaud remains focused on innovation and operational efficiency, with plans to continue investing in its product offerings and customer support. The company is also monitoring its exposure to market conditions and foreign currency fluctuations, which could impact future performance. Blackbaud's management expressed confidence in its strategic direction and the resilience of its business model, despite the challenges posed by the current economic environment.