Blackbaud (NASDAQ: BLKB) has announced a settlement with the U.S. Federal Trade Commission (FTC) related to its 2020 security incident. The company's President and CEO, Mike Gianoni, expressed satisfaction with the resolution, stating, "Protecting our customers' and their constituents' privacy will always be of paramount importance to Blackbaud, and we continue to strengthen our cybersecurity and compliance programs with the goal of improving our resilience in an ever-changing threat landscape."
In the settlement, Blackbaud has not been fined by the FTC and is not required to make any payment. The company has neither admitted nor denied any of the allegations made by the FTC. The details of the settlement can be found in Blackbaud's Form 8-K filed with the Securities and Exchange Commission.
Blackbaud shares dropped -2.3% Friday to a price of $80.34.
Blackbaud, a leading software provider exclusively dedicated to powering social impact, serves the nonprofit and education sectors, companies committed to social responsibility, and individual change makers. The company's essential software is designed to accelerate impact in fundraising, nonprofit financial management, digital giving, grantmaking, corporate social responsibility, and education management.
The company's full 8-K submission is available here.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $849 | $900 | $913 | $928 | $1,058 | $1,085 |
| Revenue Growth | n/a | 6.11% | 1.42% | 1.59% | 14.05% | 2.56% |
| Gross Margins | 55% | 54% | 53% | 52% | 52% | 54% |
| Operating Margins | 7% | 3% | 4% | 3% | -3% | 0% |
| Net Margins | 5% | 1% | 1% | 1% | -4% | -2% |
| Net Income (MM) | $45 | $12 | $8 | $6 | -$45 | -$25 |
| Net Interest Expense (MM) | $16 | $21 | $17 | $18 | $36 | $41 |
| Depreciation & Amort. (MM) | $80 | $86 | $93 | $82 | $102 | $107 |
| Earnings Per Share | $0.93 | $0.25 | $0.16 | $0.12 | -$0.88 | -$0.48 |
| EPS Growth | n/a | -73.12% | -36.0% | -25.0% | -833.33% | 45.45% |
| Diluted Shares (MM) | 48 | 48 | 49 | 48 | 52 | 54 |
| Free Cash Flow (MM) | $187 | $171 | $118 | $202 | $192 | $211 |
| Capital Expenditures (MM) | $15 | $11 | $30 | $12 | $12 | $6 |
| Current Ratio | 0.74 | 0.74 | 0.81 | 0.77 | 0.75 | 0.62 |
Blackbaud has weak operating margins with a unknown rate of growth, declining EPS growth, and not enough current assets to cover current liabilities. On the other hand, the company has rapidly growing revenues and decreasing reinvestment in the business working in its favor. Furthermore, Blackbaud has positive cash flows.
