Blackbaud, Inc. (NASDAQ: BLKB) stock plunged 14.03% on October 9th, 2018 (Source: Google finance) after the company lowered its outlook for the year, saying it now expects full-year adjusted revenue to be between $844 million and $854 million, compared with a previous guidance of adjusted revenue between $870 million and $890 million. The company expects full-year adjusted earnings between $2.46 a share and $2.52 a share, from previous expectations between $2.75 a share and $2.88 a share. This is due to the continued transition to a software-as-a-service business model, which is putting downward pressure on revenue, the reduced transaction revenue due to a behavior shift in its United Kingdom business and a reduction in subscription-based recurring revenue.
Meanwhile, BLKB has recently announced the Cloud Solution for Higher Education with the introduction of a new Education Management portfolio and the addition of stewardship management and guided fundraising tailored for higher education. Blackbaud offers the most robust advancement capabilities on the market and is now enabling higher education institutions to manage the complete student lifecycle—from admissions to alumni engagement. The announcement was made during bbcon 2018, the premier tech gathering for social good, taking place this week in Orlando, Fla.
Blackbaud’s new Education Management portfolio includes student information, recruiting and enrollment management, school website systems and learning management, enabling institutions to build a connected campus that delivers a better student experience. Blackbaud’s Cloud Solution for Higher education combines Blackbaud’s proven leadership in higher education, including fundraising and relationship management, analytics, financial management, grant and award management, and marketing with its new education management capabilities. Key outcomes of Blackbaud’s Cloud Solution for Higher Education include enabling universities and colleges to advance their institutions with increased revenue, deepen alumni engagement and enhance community outreach, connect departments and students, and improve the student and alumni experience through high-impact lifecycle management.
Moreover, for the second quarter, BLKB has reported Total non-GAAP revenue was $214.6 million, up 11.8%, with $193.6 million in non-GAAP recurring revenue, representing 90.2% of total non-GAAP revenue. Non-GAAP recurring revenue was up 16.2%. Non-GAAP organic revenue increased 4.8% and non-GAAP organic recurring revenue increased 8.0%. Non-GAAP net income increased 28.8% to $33.0 million, with non-GAAP diluted earnings per share of $0.69, up $0.15. Non-GAAP free cash flow was $41.6 million, an increase of $9.8 million.