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BLACKBAUD NET DROPS, REVS SAG Featured

The pandemic took a toll on Blackbaud’s growth for the second quarter ended June 30. The nonprofit software company reported a 43-percent decline in net income on a .8 percent drop in revenue.

A $6-million drop in onetime services and other revenue for the most recently ended quarter took a toll on results and CFO Tony Boor said during this week’s earnings webcast, “the shortfalls in bookings that began at the start of the pandemic are putting pressure on our contractual recurring revenue growth in the near term.” Net income fell to $6.7 million for the quarter, compared to $11.8 million in last year’s corresponding period. Revenue fell slightly to $229.4 million in the most recently ended period, down from slightly less than $232 million a year ago. CEO  Mike Gianoni said there was also a “tough compare in our payments business, which was expected given the elevated volumes we saw at the onset of the pandemic.” Boor expects the pressure on bookings will abate this year with Blackbaud while Gianoni predicts the drag from one-time revenue will bottom out next year. He also commented,  “I do not expect our sales and marketing and customer success expense to return to pre-pandemic levels.”

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