Blackbaud Q3: GAAP net loss $0.20/sh, non-GAAP EPS $0.69; raises FY22 Rule of 40 to ~29%

We now anticipate meeting or exceeding our 2022 financial guidance which increases our 28% Rule of 40 performance expectation to roughly 29% on a constant currency basis.

We plan to carry that momentum into 2023, targeting the mid-30s on Rule of 40 at constant currency, through a combination of mid-single digit organic revenue growth and an adjusted EBITDA margin approaching 29% next year.

Third Quarter 2022 Results Compared to Third Quarter 2021 Results: • GAAP total revenue was $261.3 million, up 13.0%, with $249.4 million in GAAP recurring revenue, up 14.1%. • Non-GAAP organic recurring revenue increased 3.5%. • GAAP loss from operations was $7.0 million, inclusive of security incident-related costs, net of insurance recoveries of $13.7 million, with GAAP operating margin of (2.7)%, a decrease of 780 basis points • Non-GAAP income from operations was $49.8 million, with non-GAAP operating margin of 19.1%, a decrease of 270 basis points. • GAAP net loss was $10.3 million, with GAAP diluted loss per share of $0.20, down $0.33 per share. • Non-GAAP net income was $36.0 million, with non-GAAP diluted earnings per share of $0.69, down $0.09 per share.