Blackbaud reports quarterly earnings
Blackbaud reported increased revenues but a net loss in the second quarter as it acquired former competitor Convio.
The Daniel Island-based software company’s $110.2 million in revenue for the April-June period was up 17 percent from the same period last year. But whereas Blackbaud reported diluted earnings per share of $0.21 in spring 2011, the combined Blackbaud-Convio lost $0.05 per share this past spring.
Not using generally accepted accounting principles or reporting just for standalone Blackbaud, the financial figures were better.
Non-GAAP earnings per share for the combined company were $0.24. Blackbaud by itself took in $99.6 million, a 6 percent uptick from second quarter 2011. Non-GAAP income for standalone Blackbaud was $17.1 million, as compared to $19.9 million last spring.
Blackbaud CFO Tony Boor called the quarter “a transition period” in a statement.
“The majority of the benefits we expect to realize as a result of our efforts, from both a growth and cost synergies perspective, are expected to occur during 2013 and beyond as a result of the longer than expected regulatory review process for the acquisition,” Boor said.
Tuesday’s earnings report was Blackbaud’s first since acquiring Convio in May.
The merger was announced in January but a U.S. Department of Justice regulatory review continued more than a month longer than CEO Marc Chardon had projected,
Since, the companies have been merging their overlapping products and workforces. Like Blackbaud, Convio also made fundraising software for nonprofits.
Blackbaud paid a total of $325 million for the Austin, Texas-based company, based on a $275 million valuation, or $16 per share, plus the $50 million Convio had in cash on hand.
Because the merger involved heavyweights in the nonprofit technology world, it was held in abeyance by a U.S. Department of Justice antitrust review. The government lawyers wanted to make sure the combination of the public companies would not hurt the competitiveness of the market.
Blackbaud had a pre-merger headcount of 2,400, with roughly 1,100 working out of the local headquarters building. Convio, which counted more than half the top 50 U.S. charities among its more than 1,500 customers, had about 450 employees.
In addition to discussion of the financial figures, Tuesday’s earnings call is likely to feature updated plans for Blackbaud’s melded product line.
Listen to the 5 p.m. webcast here.