Bob Scott reporting in his monthly Insights column on strong financials results for Blackbaud.
Blackbaud reported net income of $4.3 million for the first quarter ended March 31, an increase of 12.3 percent from $3.8 million a year earlier. Revenue for the first quarter of $150.5 million was 17.9-percent higher than the $127.6 million. In increased spending contributed to a 13. 6-percent drop in operating income. However, the bottom line was boosted by a 37.1-percent decrease in income tax expense. This week’s earnings webcast spent involved as much the transition to cloud products as it did more typical financial performance issues. The company’s cloud-based Raiser’s Edge NXT and Financial Edge NXT ship this fall. However, CEO Mike Gianoni noted, “We have sold several hundred units of Financial Edge and Raiser’s Edge NXT in advance of the release.” He also said there are 30 customers live on pre-release versions. CFO Tony Boor noted the transition to the new subscription based products is expected to last from 24 through 36 months. Customers purchasing the current desktop products are in essence buying an upgrade that includes the purchase of the NXT products when they are available. That will shift license revenue from the installed base to the future and includes bundled components that had previously been sold and priced separately.