Blackbaud, Inc. has recently released its 10-K report, providing a comprehensive overview of its business operations and financial performance. The company, founded in 1981 and headquartered in Charleston, South Carolina, specializes in providing cloud software solutions to nonprofits, foundations, education institutions, and healthcare organizations globally. Blackbaud's offerings include fundraising and engagement solutions, financial management solutions, grant and award management solutions, education solutions, social responsibility solutions, payment services, and intelligence for good solutions. The company primarily generates revenue from software solutions in cloud and hosted environments, as well as payment and transaction services.
In its 10-K report, Blackbaud outlined five key operational initiatives aimed at driving innovation, bookings growth, revenue expansion, and cost management. The initiatives include product innovation and delivery, bookings growth and acceleration, transactional revenue optimization and expansion, a modernized approach to pricing and multi-year customer contracts, and keen attention to cost management.
During 2024, Blackbaud reported an increase in total revenue of $50.1 million, driven by growth in recurring revenue and transactional recurring revenue. The Social Sector revenue, representing approximately 88% of the total full-year revenue, increased by $67.4 million, or 7.1%, while the Corporate Sector revenue, representing approximately 12% of the total full-year revenue, decreased by $17.3 million, or 11.5%. The company attributed the decrease in Corporate Sector revenue to the underperformance of EVERFI and the disposition of EVERFI Limited in March 2024.
Blackbaud also highlighted its keen attention to cost management, reporting a reduction in headcount from approximately 3,600 in the third quarter of 2022 to approximately 3,000 as of December 31, 2023. After the divestiture of EVERFI on December 31, 2024, the company had approximately 2,600 employees. Additionally, the company continued to drive efficiencies in other areas of the business, including IT consolidation, renegotiated vendor contracts, and a reduction in real estate footprint as part of the shift to a remote-first workforce.
The 10-K report also detailed Blackbaud's financial performance, with a pre-tax loss on the disposition of EVERFI of $405.4 million, including noncash impairment charges of $390.2 million. The company reported an increase in income from operations, primarily driven by factors such as increases in compensation costs, hosting and data center costs, and marketing costs, as well as a decrease in stock-based compensation expense and commission expense.
As a result of these announcements, the company's shares have moved 3.1% on the market, and are now trading at a price of $68.24. If you want to know more, read the company's complete 10-K report here.
