Blackbaud Announces 2017 Third Quarter Results
Subscriptions Represent Roughly Two-Thirds of Total Revenue and Grew 21%; Profitability Hits a 2017 High;
Management Updates 2017 Full-Year Financial Guidance for JustGiving Acquisition
CHARLESTON, S.C., Oct. 25, 2017 /PRNewswire/ -- Blackbaud (NASDAQ: BLKB), the world's leading cloud software company powering social good, today announced financial results for its third quarter ended September 30, 2017.
"Our unique ability to maximize customer outcomes through innovative new technology and industry expertise is a powerful combination, and it is driving our strong financial performance," said Mike Gianoni, Blackbaud's president and CEO. "We just concluded our annual user conference bbcon, and it's quite clear to customers that our social good-optimized cloud Blackbaud SKY(TM) provides the industry's best cloud capabilities, and that we are rapidly evolving it with new innovation. Blackbaud SKY is fueling our strong revenue growth, which is becoming increasingly stable and predictable, as we shift our mix of revenue towards recurring subscriptions. Subscriptions revenue now represents 65 percent of our total revenue and non-GAAP organic subscriptions revenue was strong, growing 19 percent during the third quarter."
Third Quarter 2017 Results Compared to Third Quarter 2016 Results:
-- Total GAAP revenue was $195.5 million, up 6.8%, with $159.0 million in GAAP recurring revenue, representing 81.3% of total revenue, and $127.5 million in subscription revenue, representing 65.2% of total revenue. -- Total non-GAAP revenue was $195.9 million, up 7.0%, with $159.3 million in non-GAAP recurring revenue, representing 81.3% of total non-GAAP revenue, and $127.8 million in subscription revenue, representing 65.2% of total revenue. -- Non-GAAP organic revenue increased 5.6%, non-GAAP organic recurring revenue increased 10.7%, and non-GAAP organic subscription revenue increased 19.0%. -- GAAP income from operations increased 32.7% to $18.0 million, with GAAP operating margin increasing 180 basis points to 9.2%. -- Non-GAAP income from operations increased 23.3% to $42.0 million, with non-GAAP operating margin increasing 280 basis points to 21.4%. -- GAAP net income increased 40.5% to $12.5 million, with GAAP diluted earnings per share of $0.26, up $0.07. -- Non-GAAP net income increased 25.8% to $26.9 million, with non-GAAP diluted earnings per share of $0.56, up $0.11. -- Non-GAAP free cash flow was $59.1 million, an increase of $17.5 million.
"We posted a very solid third quarter balancing accelerated growth in revenue with improved profitability," said Tony Boor, Blackbaud's executive vice president and CFO. "The company's strong financial performance continues to position us well toward achieving our financial guidance and long-term aspirational goals. We've updated our financial expectation for 2017 to include the acquisition of peer-to-peer giving leader JustGiving(TM), which closed on October 2(nd), and we look forward to keeping this steady momentum by finishing the year strong. "
An explanation of all non-GAAP financial measures referenced in this press release, including Blackbaud's definition of non-GAAP free cash flow, is included below under the heading "Non-GAAP Financial Measures." A reconciliation of the company's non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included below in this press release.
Recent Company Highlights:
-- Blackbaud shared a series of announcements that deliver high impact for the social good community during bbcon 2017. A bbcon 2017 virtual pass is now available providing access to main stage, keynote presentations and premier content. -- Blackbaud and Microsoft announced plans to strengthen their strategic partnership to digitally transform the nonprofit sector. The companies announced a three-point commitment to collaboration, which includes going deeper on integrations, joint innovation and sector leadership to scale global good. -- Blackbaud was named to the Fortune 2017 Change the World List, which recognizes companies that have positive impact through activities that are part of their core business strategy. -- Blackbaud announced the results of a commissioned Total Economic Impact(TM) (TEI) study conducted by Forrester Consulting on behalf of Blackbaud, examining the return on investment that University of North Texas experienced by deploying Blackbaud Raiser's Edge NXT(TM). -- Blackbaud completed the acquisition of U.K.-based JustGiving(TM), whose online social giving platform has played a powerful role in the growth of peer-to-peer fundraising. -- IDC released its July 2017 Worldwide SaaS and Cloud Software Market Shares Report and since 2014 Blackbaud's rank has moved up from 30 to 24. -- Blackbaud's President and CEO Mike Gianoni was named to the list of Top 50 SaaS CEOs by The SaaS Report.
Visit www.blackbaud.com/press-room for more information about Blackbaud's recent highlights.
Dividend
Blackbaud announced today that its Board of Directors has declared a fourth quarter 2017 dividend of $0.12 per share payable on December 15, 2017 to stockholders of record on November 28, 2017.
Financial Outlook
Blackbaud today updated its 2017 full-year financial guidance to reflect the acquisition of JustGiving, which closed on October 2, 2017:
-- Non-GAAP revenue of $785 million to $795 million -- Non-GAAP income from operations of $159 million to $165 million -- Non-GAAP operating margin of 20.3% to 20.8% -- Non-GAAP diluted earnings per share of $2.12 to $2.20 -- Non-GAAP free cash flow of $125 million to $135 million
Blackbaud has not reconciled forward-looking full-year non-GAAP financial measures contained in this news release to their most directly comparable GAAP measures, as permitted by Item 10(e)(1)(i)(B) of Regulation S-K. Such reconciliations would require unreasonable efforts at this time to estimate and quantify with a reasonable degree of certainty various necessary GAAP components, including for example those related to compensation, acquisition transactions and integration, tax items or others that may arise during the year. These components and other factors could materially impact the amount of the future directly comparable GAAP measures, which may differ significantly from their non-GAAP counterparts.
Conference Call Details What: Blackbaud's 2017 Third Quarter Conference Call When: October 26, 2017 Time: 8:00 a.m. (Eastern Time) Live Call: 877-616-0061 (domestic) or 719-325-2171 (international); passcode 976294. Webcast: Blackbaud's Investor Relations Webpage
About Blackbaud
Blackbaud (NASDAQ: BLKB) is the world's leading cloud software company powering social good. Serving the entire social good community--nonprofits, foundations, corporations, education institutions, healthcare institutions and individual change agents--Blackbaud connects and empowers organizations to increase their impact through software, services, expertise, and data intelligence. The Blackbaud portfolio is tailored to the unique needs of vertical markets, with solutions for fundraising and CRM, marketing, advocacy, peer-to-peer fundraising, corporate social responsibility, school management, ticketing, grantmaking, financial management, payment processing, and analytics. Serving the industry for more than three decades, Blackbaud is headquartered in Charleston, South Carolina and has operations in the United States, Australia, Canada and the United Kingdom. For more information, visit www.blackbaud.com.
Investor Contact: Media Contact: Mark Furlong Nicole McGougan Director of Investor Relations Public Relations Manager 843-654-2097 843-654-3307 mark.furlong@blackbaud.com nicole.mcgougan@blackbaud.com -------------------------- -----------------------------
Forward-Looking Statements
Except for historical information, all of the statements, expectations, and assumptions contained in this news release are forward-looking statements which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding: expectations that certain aspects of our operations, financial results and financial condition will continue to improve, and expectations that we will achieve our projected 2017 full-year financial guidance and long-term aspirational goals. These statements involve a number of risks and uncertainties. Although Blackbaud attempts to be accurate in making these forward-looking statements, it is possible that future circumstances might differ from the assumptions on which such statements are based. In addition, other important factors that could cause results to differ materially include the following: management of integration of acquired companies; uncertainty regarding increased business and renewals from existing customers; a shifting revenue mix that may impact gross margin; continued success in sales growth; risks related to our dividend policy and stock repurchase program, including the possibility that we might discontinue payment of dividends; and the other risk factors set forth from time to time in the SEC filings for Blackbaud, copies of which are available free of charge at the SEC's website at www.sec.gov or upon request from Blackbaud's investor relations department. Blackbaud assumes no obligation and does not intend to update these forward-looking statements, except as required by law.
Trademarks
All Blackbaud product names appearing herein are trademarks or registered trademarks of Blackbaud, Inc.
Non-GAAP Financial Measures
Blackbaud has provided in this release financial information that has not been prepared in accordance with GAAP. This information includes non-GAAP revenue, non-GAAP recurring revenue, non-GAAP gross profit, non-GAAP gross margin, non-GAAP income from operations, non-GAAP operating margin, non-GAAP net income and non-GAAP diluted earnings per share. Blackbaud has acquired businesses whose net tangible assets include deferred revenue. In accordance with GAAP reporting requirements, Blackbaud recorded write-downs of deferred revenue to fair value, which resulted in lower recognized revenue. Both on a quarterly and year-to-date basis, the revenue for the acquired businesses is deferred and typically recognized over a one-year period, so Blackbaud's GAAP revenues for the one-year period after the acquisitions will not reflect the full amount of revenues that would have been reported if the acquired deferred revenue was not written down to fair value. The non-GAAP measures described above reverse the acquisition-related deferred revenue write-downs so that the full amount of revenue booked by the acquired companies is included, which Blackbaud believes provides a more accurate representation of a revenue run-rate in a given period. In addition to reversing write-downs of acquisition-related deferred revenue, non-GAAP financial measures discussed above exclude the impact of certain items that Blackbaud believes are not directly related to its performance in any particular period, but are for its long-term benefit over multiple periods.
In addition, Blackbaud discusses non-GAAP organic revenue growth, non-GAAP organic revenue growth on a constant currency basis, non-GAAP organic subscriptions revenue growth and non-GAAP organic recurring revenue growth, which it believes provides useful information for evaluating the periodic growth of its business on a consistent basis. Each of these measures excludes incremental acquisition-related revenue attributable to companies acquired in the current fiscal year. For companies acquired in the immediately preceding fiscal year, each of these measures reflects presentation of full-year incremental non-GAAP revenue derived from such companies as if they were combined throughout the prior period, and it includes the non-GAAP revenue attributable to those companies, as if there were no acquisition-related write-downs of acquired deferred revenue to fair value as required by GAAP. In addition, each of these measures excludes prior period revenue associated with divested businesses. The exclusion of the prior period revenue is to present the results of the divested businesses within the results of the combined company for the same period of time in both the prior and current periods. Blackbaud believes this presentation provides a more comparable representation of its current business' organic revenue growth and revenue run-rate.
Non-GAAP free cash flow is defined as operating cash flow less capital expenditures, including costs required to be capitalized for software development, and capital expenditures for property and equipment.
Blackbaud uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating Blackbaud's ongoing operational performance. Blackbaud believes that these non-GAAP financial measures reflect the Blackbaud's ongoing business in a manner that allows for meaningful period-to-period comparison and analysis of trends in its business. In addition, Blackbaud believes that the use of these non-GAAP financial measures provides additional information for investors to use in evaluating ongoing operating results and trends and in comparing its financial results from period-to-period with other companies in Blackbaud's industry, many of which present similar non-GAAP financial measures to investors. However, these non-GAAP financial measures may not be completely comparable to similarly titled measures of other companies due to differences in the exact method of calculation between companies. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures.
Blackbaud, Inc. Consolidated balance sheets (Unaudited) (dollars in thousands) September 30, December 31, 2017 2016 Assets Current assets: Cash and cash equivalents $17,050 $16,902 Restricted cash due to customers 139,095 353,771 Accounts receivable, net of allowance of $4,540 and $3,291 at September 30, 2017 and December 31, 2016, respectively 100,868 88,932 Prepaid expenses and other current assets 50,082 48,314 Total current assets 307,095 507,919 Property and equipment, net 43,903 50,269 Software development costs, net 48,618 37,582 Goodwill 472,776 438,240 Intangible assets, net 252,713 253,676 Other assets 21,889 22,524 ------ ------ Total assets $1,146,994 $1,310,210 Liabilities and stockholders' equity Current liabilities: Trade accounts payable $17,830 $23,274 Accrued expenses and other current liabilities 45,650 54,196 Due to customers 139,095 353,771 Debt, current portion 8,576 4,375 Deferred revenue, current portion 277,008 244,500 ------- ------- Total current liabilities 488,159 680,116 Debt, net of current portion 329,380 338,018 Deferred tax liability 39,352 29,558 Deferred revenue, net of current portion 5,412 6,440 Other liabilities 7,799 8,533 Total liabilities 870,102 1,062,665 ------- --------- Commitments and contingencies Stockholders' equity: Preferred stock; 20,000,000 shares authorized, none outstanding - - Common stock, $0.001 par value; 180,000,000 shares authorized, 58,503,687 and 57,672,401 shares issued at September 30, 2017 and December 31, 2016, respectively 59 58 Additional paid-in capital 341,476 310,452 Treasury stock, at cost; 10,426,122 and 10,166,801 shares at September 30, 2017 and December 31, 2016, respectively (234,329) (215,237) Accumulated other comprehensive loss (1,013) (457) Retained earnings 170,699 152,729 Total stockholders' equity 276,892 247,545 ------- ------- Total liabilities and stockholders' equity $1,146,994 $1,310,210 ------------------------------------------ ---------- ----------
Blackbaud, Inc. Consolidated statements of comprehensive income (Unaudited) (dollars in thousands, except per share amounts) Three months ended Nine months ended September 30, September 30, ------------- 2017 2016 2017 2016 Revenue Subscriptions $127,492 $105,440 $370,923 $306,330 Maintenance 31,486 36,410 98,184 111,019 Services and other 36,535 41,213 102,222 115,161 Total revenue 195,513 183,063 571,329 532,510 Cost of revenue Cost of subscriptions 58,045 51,943 170,336 153,772 Cost of maintenance 5,698 5,531 17,551 16,547 Cost of services and other 23,262 25,843 71,595 76,499 Total cost of revenue 87,005 83,317 259,482 246,818 ------ ------ ------- ------- Gross profit 108,508 99,746 311,847 285,692 ------- ------ ------- ------- Operating expenses Sales, marketing and customer success 44,193 40,690 129,394 115,707 Research and development 22,071 22,510 67,647 67,973 General and administrative 23,545 22,319 67,350 62,089 Amortization 734 687 2,164 2,147 Total operating expenses 90,543 86,206 266,555 247,916 ------ ------ ------- ------- Income from operations 17,965 13,540 45,292 37,776 ------ ------ ------ ------ Interest expense (3,092) (2,641) (8,685) (8,037) Other income (expense), net 468 (15) 1,581 (185) --- --- ----- ---- Income before provision for income taxes 15,341 10,884 38,188 29,554 Income tax provision 2,793 1,950 2,964 5,323 ----- ----- ----- ----- Net income $12,548 $8,934 $35,224 $24,231 ------- ------ ------- ------- Earnings per share Basic $0.27 $0.19 $0.76 $0.53 Diluted $0.26 $0.19 $0.74 $0.51 Common shares and equivalents outstanding Basic weighted average shares 46,711,709 46,159,956 46,627,213 46,078,306 Diluted weighted average shares 47,846,997 47,394,106 47,679,103 47,268,469 Dividends per share $0.12 $0.12 $0.36 $0.36 Other comprehensive (loss) income Foreign currency translation adjustment (188) 289 (467) 261 Unrealized (loss) gain on derivative instruments, net of tax (267) 409 (89) (378) ---- --- --- ---- Total other comprehensive (loss) income (455) 698 (556) (117) ---- --- ---- ---- Comprehensive income $12,093 $9,632 $34,668 $24,114 -------------------- ------- ------ ------- -------
Blackbaud, Inc. Consolidated statements of cash flows (Unaudited) Nine months ended September 30, (dollars in thousands) 2017 2016 Cash flows from operating activities Net income $35,224 $24,231 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 54,765 53,109 Provision for doubtful accounts and sales returns 7,246 3,139 Stock-based compensation expense 31,055 25,005 Deferred taxes (2,511) (225) Amortization of deferred financing costs and discount 650 718 Other non-cash adjustments 572 (634) Changes in operating assets and liabilities, net of acquisition and disposal of businesses: Accounts receivable (17,169) (9,288) Prepaid expenses and other assets 596 (934) Trade accounts payable (2,891) 267 Accrued expenses and other liabilities (9,522) (12,837) Restricted cash due to customers 214,244 119,291 Due to customers (214,244) (119,291) Deferred revenue 25,370 17,593 Net cash provided by operating activities 123,385 100,144 Cash flows from investing activities Purchase of property and equipment (8,417) (15,459) Capitalized software development costs (20,605) (19,078) Purchase of net assets of acquired companies, net of cash acquired (49,729) (3,377) Purchase of derivative instruments (516) - Proceeds from settlement of derivative instruments 1,030 - ----- --- Net cash used in investing activities (78,237) (37,914) Cash flows from financing activities Proceeds from issuance of debt 588,300 179,000 Payments on debt (594,144) (212,581) Debt issuance costs (3,085) - Employee taxes paid for withheld shares upon equity award settlement (19,092) (10,497) Proceeds from exercise of stock options 14 10 Dividend payments to stockholders (17,299) (17,108) Net cash used in financing activities (45,306) (61,176) Effect of exchange rate on cash and cash equivalents 306 46 Net increase in cash and cash equivalents 148 1,100 Cash and cash equivalents, beginning of period 16,902 15,362 ------ ------ Cash and cash equivalents, end of period $17,050 $16,462 -------------------- ------- -------
Blackbaud, Inc. Reconciliation of GAAP to non-GAAP financial measures (Unaudited) (dollars in thousands, except per share amounts) Three months ended Nine months ended September 30, September 30, 2017 2016 2017 2016 GAAP Revenue $195,513 $183,063 $571,329 $532,510 Non-GAAP adjustments: Add: Acquisition- related deferred revenue write-down 349 - 697 3,639 Non-GAAP revenue $195,862 $183,063 $572,026 $536,149 -------- -------- -------- -------- GAAP gross profit $108,508 $99,746 $311,847 $285,692 GAAP gross margin 55.5% 54.5% 54.6% 53.7% Non-GAAP adjustments: Add: Acquisition- related deferred revenue write-down 349 - 697 3,639 Add: Stock-based compensation expense 934 916 2,675 2,603 Add: Amortization of intangibles from business combinations 9,976 9,862 29,903 29,670 Add: Employee severance - 18 973 160 Add: Acquisition- related integration costs - - 86 - Subtotal 11,259 10,796 34,334 36,072 Non-GAAP gross profit $119,767 $110,542 $346,181 $321,764 -------- -------- -------- -------- Non-GAAP gross margin 61.1% 60.4% 60.5% 60.0% GAAP income from operations $17,965 $13,540 $45,292 $37,776 GAAP operating margin 9.2% 7.4% 7.9% 7.1% Non-GAAP adjustments: Add: Acquisition- related deferred revenue write-down 349 - 697 3,639 Add: Stock-based compensation expense 10,926 8,818 31,055 25,005 Add: Amortization of intangibles from business combinations 10,710 10,549 32,067 31,817 Add: Employee severance 128 72 2,994 473 Add: Acquisition- related integration costs 383 917 613 1,419 Add: Acquisition- related expenses 1,519 152 3,851 265 Subtotal 24,015 20,508 71,277 62,618 Non-GAAP income from operations $41,980 $34,048 $116,569 $100,394 -------- -------- Non-GAAP operating margin 21.4% 18.6% 20.4% 18.7% GAAP net income $12,548 $8,934 $35,224 $24,231 Shares used in computing GAAP diluted earnings per share 47,846,997 47,394,106 47,679,103 47,268,469 GAAP diluted earnings per share $0.26 $0.19 $0.74 $0.51 Non-GAAP adjustments: Add: Total Non-GAAP adjustments affecting income from operations 24,015 20,508 71,277 62,618 Add (less): Loss (gain) on derivative instrument 3 - (472) - Add: Loss on debt extinguishment 137 - 299 - Less: Tax impact related to Non-GAAP adjustments (9,846) (8,096) (32,010) (24,172) ------ ------ Non-GAAP net income $26,857 $21,346 $74,318 $62,677 ------- ------- ------- ------- Shares used in computing Non-GAAP diluted earnings per share 47,846,997 47,394,106 47,679,103 47,268,469 Non-GAAP diluted earnings per share $0.56 $0.45 $1.56 $1.33 ------------------- ----- ----- ----- -----
Blackbaud, Inc. Reconciliation of GAAP to Non-GAAP financial measures (continued) (Unaudited) (dollars in thousands) Three months ended Nine months ended September 30, September 30, 2017 2016 2017 2016 Detail of certain Non-GAAP adjustments: Stock-based compensation expense: Included in cost of revenue: Cost of subscriptions $331 $318 $963 $904 Cost of maintenance 103 137 294 391 Cost of services and other 500 461 1,418 1,308 Total included in cost of revenue 934 916 2,675 2,603 Included in operating expenses: Sales, marketing and customer success 1,686 1,055 4,906 2,972 Research and development 2,093 1,674 5,877 4,874 General and administrative 6,213 5,173 17,597 14,556 ----- ----- Total included in operating expenses 9,992 7,902 28,380 22,402 ----- ----- Total stock-based compensation expense $10,926 $8,818 $31,055 $25,005 ------- ------ ------- ------- Amortization of intangibles from business combinations: Included in cost of revenue: Cost of subscriptions $8,061 $7,790 $24,099 $23,454 Cost of maintenance 1,289 1,332 3,871 3,996 Cost of services and other 626 740 1,933 2,220 Total included in cost of revenue 9,976 9,862 29,903 29,670 Included in operating expenses 734 687 2,164 2,147 --- --- ----- ----- Total amortization of intangibles from business combinations $10,710 $10,549 $32,067 $31,817 --------------------------------- ------- ------- ------- -------
Blackbaud, Inc. Reconciliation of GAAP to Non-GAAP financial measures (continued) (Unaudited) (dollars in thousands) Three months ended Nine months ended September 30, September 30, 2017 2016 2017 2016 GAAP revenue $195,513 $183,063 $571,329 $532,510 GAAP revenue growth 6.8% 7.3% (Less) Add: Non-GAAP acquisition-related revenue (1) (2,134) - (4,048) 3,639 Total Non-GAAP adjustments (2,134) - (4,048) 3,639 Non-GAAP revenue (2) $193,379 $183,063 $567,281 $536,149 -------- -------- -------- -------- Non-GAAP organic revenue growth 5.6% 5.8% Non-GAAP revenue (2) $193,379 $183,063 $567,281 $536,149 Foreign currency impact on Non-GAAP revenue (3) (480) - 785 - Non-GAAP revenue on constant currency basis (3) $192,899 $183,063 $568,066 $536,149 -------- -------- -------- -------- Non-GAAP organic revenue growth on constant currency basis 5.4% 6.0% GAAP subscriptions revenue $127,492 $105,440 $370,923 $306,330 GAAP subscriptions revenue growth 20.9% 21.1% (Less) Add: Non-GAAP acquisition-related revenue (1) (1,986) - (3,749) 3,534 Total Non-GAAP adjustments (1,986) - (3,749) 3,534 Non-GAAP organic subscriptions revenue $125,506 $105,440 $367,174 $309,864 -------- -------- -------- -------- Non-GAAP organic subscriptions revenue growth 19.0% 18.5% GAAP subscriptions revenue $127,492 $105,440 $370,923 $306,330 GAAP maintenance revenue $31,486 $36,410 98,184 111,019 ------ ------- GAAP recurring revenue $158,978 $141,850 $469,107 $417,349 GAAP recurring revenue growth 12.1% 12.4% (Less) Add: Non-GAAP acquisition-related revenue (1) (1,986) - (3,749) 3,625 Total Non-GAAP adjustments (1,986) - (3,749) 3,625 Non-GAAP recurring revenue $156,992 $141,850 $465,358 $420,974 -------- -------- -------- -------- Non-GAAP organic recurring revenue growth 10.7% 10.5% ------------------ ---- ----
(1) Non-GAAP acquisition-related revenue excludes incremental acquisition-related revenue calculated in accordance with GAAP that is attributable to companies acquired in the current fiscal year. For companies acquired in the immediately preceding fiscal year, non-GAAP acquisition- related revenue reflects presentation of full-year incremental non-GAAP revenue derived from such companies, as if they were combined throughout the prior period, and it includes the non-GAAP revenue from the acquisition- related deferred revenue write- down attributable to those companies. (2) Non-GAAP revenue for the prior year periods presented herein may not agree to non-GAAP revenue presented in the respective prior period quarterly financial information solely due to the manner in which non-GAAP organic revenue growth is calculated. (3) To determine non-GAAP organic revenue growth on a constant currency basis, revenues from entities reporting in foreign currencies were translated to U.S. Dollars using the comparable prior period's quarterly weighted average foreign currency exchange rates. The primary foreign currencies creating the impact are the Canadian Dollar, EURO, British Pound and Australian Dollar.
(dollars in thousands) Nine months ended September 30, 2017 2016 GAAP net cash provided by operating activities $123,385 $100,144 Less: purchase of property and equipment (8,417) (15,459) Less: capitalized software development costs (20,605) (19,078) Non-GAAP free cash flow $94,363 $65,607 ----------------------- ------- -------
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SOURCE Blackbaud, Inc.