Blackbaud Q Investor Presentation. Ticker: BLKB February 2017

Transcription

1 Blackbaud Q Investor Presentation Ticker: BLKB February

2 Forward-Looking Statements Forward-Looking Statements: This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements in this presentation consist of, among other things, statements regarding future operating results, all of which are based on current expectations, estimates, and forecasts, and the beliefs and assumptions of the Company s management. Words such as expects, anticipates, aims, projects, intends, plans, likely, will, should, believes, estimates, seeks, variations of such words, and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are subject to risks, uncertainties and assumptions that are difficult to predict. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. Factors that could cause actual results to differ materially from the Company s expectations expressed in this presentation include: expectations for achievement of 2017 financial guidance; risks associated with fluctuations in foreign exchange rates and the related impact on 2017 financial guidance; expectations for achievement of long-term aspirational goals; expectations for continuing to successfully execute the Company s growth and operational improvement strategies; expectations of future growth in the global giving software solutions market, segments within that market and the Company s total addressable market; expectations that achieving the Company s goals will extend its competitive advantage and provide improved product quality and innovative solutions for its customers; expectations that the consolidation of legacy systems into best-of-breed platforms will drive increasing operating efficiency and contribute to the margin improvement plan the Company is focused on executing through 2017; expectations that the Company s financial position provides flexibility to fuel future growth through acquisitions or other opportunities; expectations that past acquisitions have expanded the Company s customer and market opportunities; risks associated with acquisitions; uncertainty regarding increased business and renewals from existing customers; risks associated with implementation of software products; the ability to attract and retain key personnel; risks related to the Company s leverage, credit facility, dividend policy and share repurchase program, lengthy sales and implementation cycles; technological changes that make the Company s products and services less competitive; and the other risk factors set forth from time to time in the Company s SEC filings. Factors that could cause or contribute to such differences include, but are not limited to, those summarized under Risk Factors in the Company s most recent annual report on Form 10-K, and any quarterly reports on Forms 10-Q thereafter, copies of which are available free of charge at the SEC s website at or upon request from the Company s investor relations department. Given these risks and uncertainties, you should not place undue reliance on these forward-looking statements. Also, forward-looking statements represent the Company s beliefs and assumptions only as of the date of this presentation. Except as required by law, the Company does not intend, and undertakes no obligation, to revise or update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. Trademark Usage: All Blackbaud product names appearing herein are trademarks or registered trademarks of Blackbaud, Inc. This presentation contains trade names, trademarks and service marks of other companies. The Company does not intend its use or display of other parties trade names, trademarks and service marks to imply a relationship with, or endorsement or sponsorship of, these other parties. 2

3 Historical Financials and Non-GAAP Financial Measures Use of Non-GAAP Financial Measures: The Company has provided in this presentation financial information that has not been prepared in accordance with GAAP. The Company uses these non-gaap financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating the Company s ongoing operational performance. The Company believes that the use of these non-gaap financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing its financial results from period to period with other companies in the Company s industry, many of which present similar non-gaap financial measures to investors. These non-gaap financial measures may not be completely comparable to similarly titled measures of other companies due to potential differences in the exact method of calculation between companies. The Company believes that these non-gaap financial measures reflect the Company s ongoing business in a manner that allows for meaningful period-to-period comparison and analysis of trends in the Company s business. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-gaap measures to their most directly comparable GAAP financial measures. Blackbaud discusses non-gaap organic revenue growth measures, including non-gaap organic revenue growth, non-gaap organic revenue growth on a constant currency basis, non-gaap organic subscriptions revenue growth and non-gaap organic recurring revenue growth, which Blackbaud believes provides useful information for evaluating the periodic growth of its business as well as growth on a consistent basis. Each measure of non-gaap organic revenue growth excludes incremental acquisition-related revenue attributable to companies acquired in the current fiscal year. For companies acquired in the immediately preceding fiscal year, each measure of non-gaap organic revenue growth reflects presentation of full year incremental non-gaap revenue derived from such companies as if they were combined throughout the prior period, and it includes the current period non-gaap revenue attributable to those companies, as if there were no acquisition-related writedowns of acquired deferred revenue to fair value as required by GAAP. In addition, each measure of non-gaap organic revenue growth excludes prior period revenue associated with divested businesses. The exclusion of the prior period revenue is to present the results of the divested businesses within the results of the combined company for the same period of time in both the prior and current periods. Blackbaud believes this presentation provides a more comparable representation of our current business organic revenue growth and revenue run-rate. In these materials, Blackbaud is presenting the following unaudited information: historical subscriptions, recurring and total revenue for the fiscal years ended December 31, 2016 and 2015 and the interim periods therein; calculations of subscriptions revenue growth, recurring revenue growth and total revenue growth for the fiscal year ended December 31, 2016 and the interim periods therein; and calculations of non-gaap organic subscriptions revenue growth, non-gaap organic recurring revenue growth, non-gaap organic revenue growth and non-gaap organic revenue growth on a constant currency basis for the same periods. Historical Financial Statements Being Presented: In these materials, Blackbaud is presenting the following unaudited historical financial information: historical consolidated balance sheets as of the fiscal years ended December 31, 2016, 2015, and 2014 and interim consolidated balance sheets for each of the quarters within fiscal 2016, 2015 and 2014; historical consolidated statements of comprehensive income for the fiscal years ended December 31, 2016, 2015 and 2014 and interim consolidated statements of comprehensive income for each of the quarters within fiscal 2016, 2015 and 2014; historical consolidated statements of cash flows for the fiscal years ended December 31, 2016, 2015 and 2014 and interim consolidated statements of cash flows for each of the interim year-to-date periods within fiscal 2016, 2015 and 2014; and historical non-gaap financial information for the fiscal years ended December 31, 2016, 2015 and 2014 and for each of the quarters within fiscal 2016, 2015 and 2014 as well as reconciliations of the non-gaap measures to their most directly comparable GAAP measures and related non-gaap adjustments. Blackbaud is providing this unaudited financial information to allow for investors and analysts to more easily access and review the Company s historical consolidated financial data by including such information in one document. In order to provide comparability between periods presented, certain previously reported historical financial information has been reclassified to conform to the presentation of the most recent reporting period which is discussed in more detail with that information. In addition, certain of the unaudited historical financial statements have been adjusted for the effects of recently adopted accounting pronouncements, which are discussed in more detail with that information. Reconciliation of Non-GAAP Financial Measures to GAAP: Reconciliations of non-gaap financial measures to the most directly comparable GAAP measures and related adjustments, as well as details of Blackbaud's methodology for calculating non-gaap organic revenue growth, non-gaap organic revenue growth on a constant currency basis, non-gaap organic subscriptions revenue growth and non-gaap organic recurring revenue growth can be found in the Appendix to these materials and on the "Investor Relations" page of the company's website at Blackbaud has not reconciled forward-looking non-gaap financial measures contained in this investor material to their most directly comparable GAAP measures. Such reconciliations would require unreasonable efforts at this time to estimate and quantify with a reasonable degree of certainty various necessary GAAP components, including for example those related to compensation, acquisition transactions and integration, tax items or others that may arise. These components and other factors could materially impact the amount of the future directly comparable GAAP measures, which may differ significantly from their non-gaap counterparts. 3

4 Key Messages The leader in a large and growing market Highly differentiated from the competition Executing a clear growth strategy 4

5 Our Markets Key Differentiators Strategy for Growth Financial Performance 5

6 Philanthropy is Large, Stable and Growing US Statistics Sizeable & Growing (3) 1.6M Nonprofits $ Billions $400 (1) Charitable Giving Meaningful to Economy (2) 3 rd Largest Employer $300 $200 Significant Industry (3) $2T+ Annual Revenue & Expense $100 Giving is Consistent (1) Tracks GDP Tracks S&P 500 $ Inflation-adjusted dollars Current dollars Inflation-adjusted dollars in recession Source: (1) Giving USA 2016 (2) Center for Civil Society Study 2012 Johns Hopkins University, (3) The Urban Institute National Center for Charitable Statistics 6

7 Charitable Giving is Significant and Diverse Sources 80% Individuals 16% Foundations 5% Corporations $373 Billion Recipients Recipients 32% Religion $119B 15% Education $57B 12% Human Services $45B 11% Foundations $42B 8% Health $30B 7% Public Society Benefit $27B 5% Arts, Culture, Humanities $17B 4% International Affairs $16B 3% Environment/Animals $11B 2% To Individuals $7B Only manages charitable giving end to end Source: GivingUSA 2016, The Annual Report on Philanthropy 7

8 Substantial TAM with Significant Penetration Opportunity 2017 TAM Penetration > $7B < 15% Corporate Social Responsibility < 15% Penetration Foundation Solutions < 15% Penetration Arts & Cultural Solutions < 5% Penetration $375 $185 $335 $1,050 CRM < 25% Penetration TAM CAGR > 7% K 12 Solutions < 15% Penetration $ TAM $960 Digital Marketing < 25% Penetration Total market opportunity $15B Financial < 10% Penetration $940 Analytics & Data < 15% Penetration $530 $1,605 Payments < 5% Penetration TAM represents total estimated annual spend. FY 2016 TAM $6.7B. FY 2017 TAM $7.3B Sources: Based on 2013 data derived from primary research Boston Analytics, Blackbaud Data IRS, Canadian Customs & Revenue Agency, Caritas, Private School Universe, Carnegie Higher Education, Guidestar; estimated FY 2016 Blackbaud Revenue, OECD, CIA World Factbook, Johns Hopkins University, NTEN 2014 Nonprofit Technology Staffing and Investments Report, Blackbaud internal data 8

9 Clear Market Leader Wide Economic Moat Fundraising Engagement Financials Program Management Payment Processing Analytics Blackbaud is the largest software vendor focused on the social good community Only Blackbaud offers the full portfolio of purpose-built, integrated solutions (and partners) Highly fragmented competition offering single-point solutions Large customer base with high retention 9

10 Our Markets Key Differentiators Strategy for Growth Financial Performance 10

11 The Market s Only Complete Solution Offering Differentiator 1 Enterprise Constituent Relationship Management Digital Marketing Peer-to- Peer Fundraising Financials Program Management Mid Market Enterprise CRM Raisers Edge NXT Luminate CRM Salesforce Platform Luminate Online TeamRaiser Financial Edge NXT K 12 Private Schools ON Suite SmartTuition Arts and Cultural Altru Foundations GIFTS FIMS Outcomes Mass Market etapestry Online Express everydayhero Corporations Angelpoints Payments Analytics 11

12 Industry Leading Cloud Technology Differentiator 2 consistent user experience Application Services micro-services architecture Cloud Infrastructure strategic partners Cloud Operations industry-leading standards open source technology 12

13 Unmatched Domain Expertise and Capability Differentiator 3 Market Leadership Big Data and Analytics Thought Leadership Sales Services Solutions Customer Success Philanthropic focus Industry s largest dataset Prospect research Database maintenance Campaign optimization Performance benchmarking Blackbaud Institute Employ industry experts Educate our customers Generate industry reports Host industry conferences 13

14 Our Markets Key Differentiators Strategy for Growth Financial Performance 14

15 Executing a Clear Four-Point Growth Strategy 1. Deliver Integrated and open solutions in the cloud 2. Drive sales effectiveness 3. Expand total addressable market 4. Improve operating efficiency 15

16 Deliver Integrated and Open Solutions in the Cloud STRATEGY 1 $433M Integration delivers total solutions Open architecture extends functionality +45% Subscription CAGR Modern micro-services architecture Rapid feature & functionality delivery $104M Common user experience Accessible anytime, anywhere $11M % 28% 59% Subscriptions Revenue as a % of Total Revenue Non-GAAP revenue 16

17 Drive Sales Effectiveness STRATEGY 2 Strategy Result Organizational framework common playbook Increase efficiency systems, tools, automation Market coverage deploy headcount Add: Direct sales new logo focus Add: Indirect sales sell subset of solutions Add: Customer success existing base focus Best practices consistently applied Equip for success Increase number of deal opportunities Topline growth expands the base VARs widen distribution expands the base Customer satisfaction retains the base 17

18 Expand TAM with Acquisitions STRATEGY 3 Acquisitions Vertical Expand TAM Accelerate shift to cloud Accelerate rev growth Accretive to margins K-12 Private Schools +$0.7B Foundations & Corporations +$0.6B K-12 Private Schools +$0.3B Smart Tuition 10/2015 $187.8M purchase price MicroEdge 10/2014 $159.8M purchase price WhippleHill 6/2014 $35.0M purchase price TAM source: from Boston Analytics research and Blackbaud internal data 18

19 Improve Operating Efficiency STRATEGY 4 Strategy Results Infrastructure investments Best-of-breed platforms >75% systems reduction Operational excellence Simplify, standardize, optimize, automate Productivity improvement R&D, G&A, Support, Professional Services Enhanced speed Better accuracy Enriched quality Highly scalable Improved efficiency Margin expansion Delivered +260bps Exiting CC *Goals are based on long-term aspirational financial goals updated 2/9/15, assuming 2014 constant currency presentation. Without normalizing for constant currency, non-gaap operating margin in 2016 was 19.6%. 19

20 Our Markets Key Differentiators Strategy for Growth Financial Performance 20

21 Business Model Drives Recurring Revenue $785M 14% Revenue CAGR $735M Subscriptions Revenue 11x 59% CAGR 45% Recurring Revenue $191M 1.6x 79% CAGR 20% 2006 Subscriptions Maintenance Services License & Other Guidance* Non-GAAP Revenue *Guidance issued 2/8/17. $785M is the mid-point of the range 21

22 Balancing Investments with Margin Expansions 25% 24% 23% 22% 21% 20% 19% 18% 17% 17.8% Executing Strategy Infrastructure Investments Operational Excellence Productivity Gains 19.1% 20.1% ~ 20.5% 23.5% 20.5% Future expansion depends on level of investments in: Sales and marketing Customer success Engineering Investments fuel future organic revenue growth 16% 15% Guidance* 2017 Aspirational Goal* Non-GAAP operating margin *Goals are based on long-term aspirational financial goals re-issued 2/9/16, assuming 2014 constant currency presentation. Without normalizing for constant currency, FY15 operating margin was 18.8%, FY16 operating margin was 19.6%, and the mid-pt of FY17 guidance is 20.3%. 22

23 Delivering Revenue Growth and Improved Profitability Total Revenue Operating Margin Diluted EPS Free Cash Flow $785 ~ 20.5% $2.12 $125 $ % 17.8% +15% $ % $94 +33% EST EST EST EST Non-GAAP revenues, operating margin and diluted EPS estimate assumes mid-point of guidance issued 2/8/2017. Without normalizing for constant currency the mid-pt of FY17 guidance for operating margin is 20.3%. Operating cash reflects adoption of ASU

24 Maintaining a Disciplined Capital Strategy Annual Free Cash Flow $125M* ~35% ~50% Growth and operating initiatives Capital investments consistent with solution roadmap and strategy Invest in operational efficiencies Strategic acquisitions Maintain strong balance sheet Cash balances Debt maintenance Debt to EBITDA < 3.5X ~15% Return of capital to shareholders* Dividend of $0.48 per share Share repurchase $50M authorized and available *2017 guidance at mid-point, issued in 2/8/2017. Free cash flow is defined as operating cash flow less capital expenditures, including costs required to be capitalized for software development, and capital expenditures for property and equipment. Dividend payments are not guaranteed and our Board of Directors may decide, in its absolute discretion, at any time and for any reason, not to declare or pay further dividends and/or repurchase our common stock 24

25 Leverage Ratio Proven History of Deleveraging 3.5x Targeted Max Leverage 3.5x 3.0x 2.5x 2.0x 1.5x Optimal Leverage 1.8x 1.0x 0.5x 0.0x Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Note: Current covenant for leverage ratio is less than or equal to 3.5x. Calculation of debt over TTM EBITDA is based on credit agreement in place at the end of the respective reporting quarter 25

26 Cash Flow ($ millions) Generating Healthy Cash Flows Inclusive of Investments Free Cash Flow Uses and Investments $180 $160 $140 $120 Investing in Innovation (capitalized software) Back office and cloud infrastructure investments (capitalized expenditures) Full cash taxpayer in 2017 (est. $10M-$15M in incremental cash taxes) $100 $80 $60 $40 $20 $ EST* Capital Expenditures and Capitalized Software Revised FCF for adoption of ASU Free Cash Flow *Calculations based on 2017 guidance issued 2/8/2017; free cash flow of $125M at the mid-pt, total capital expenditures of ~$40M, and capitalized software development of $25-$30M (chart assumes mid-pt of $27.5M). Free cash flow calculated as operating cash less purchases of property and equipment and capitalized software development costs. 26

27 Early Adoption of ASU (1) Summary of Changes Impact on Operating Cash Flow (4) APIC Net Income Excess Tax Benefits (2) Employee Tax Withholding (3) (in $ millions) FY 2014 FY H 2016 Cash from Ops (as reported) $102.3 $114.3 $38.0 Excess Tax Benefits $7.5 $5.5 $2.7 Operating Cash Flow Employee Tax Withholding $7.2 $9.4 $8.0 Financing Cash Flow Cash from Ops (as adjusted) $116.9 $129.2 $48.8 (1) Adopted in Q3 2016, effective as of January 1, 2016 (2) Arises when the amount deductible for an award of equity instruments on the employer s tax return is more than the cumulative compensation cost recognized for financial reporting purposes (3) Common stock withheld by us to satisfy statutory tax obligations of employees due upon exercise of stock appreciation rights and vesting of restricted stock awards and units. Historically, Blackbaud has taken a conservative approach by flowing through operating cash flow. (4) For more detailed financial information regarding early adoption of ASU see our Current Report on Form 8-K filed 10/24/2016 and our Quarterly Report on Form 10-Q for our quarter ended September 30,

28 Strong Returns on Increasing Investment Base Strong Returns 2016 WACC: 7.9% 2.8x 2016 ROIC*: 21.9% 24.9% CAGR $1,044M $343M *See appendix for detailed ROIC calculation Invested Capital 28

29 On Track to Achieve Long-Term Aspirational Goals Goals assume 2014 constant currency Guidance Mid-Point 2017 Goals Non-GAAP organic revenue growth 7.1% 7.7% 9.8% ~7.5% 6% 10% Annually Non-GAAP operating margin 17.8% 19.1% 20.1% ~20.5% 20.5% 23.5% Exiting 2017 Aggregate cash flow from operations $102M $114M $154M* $165M* $500M $550M *Assumes mid-pt of 2017 free cash flow guidance of $125M and approximately $40M in combined capital expenditures and 2017 include benefit from adoption of ASU (refer to slide 27) Goals are based on long-term aspirational financial goals re-issued 2/9/16, assuming 2014 constant currency presentation estimate assumes mid-point of guidance issued 2/8/2017. Without normalizing for constant currency, organic revenue growth in 2015 was 6.1% and operating margin 18.8%, organic revenue growth in 2016 was 9.2% and operating margin was 19.6%, and 2017 guidance mid-point for organic revenue growth would be 6.9% and operating margin would be 20.3%. 29

30 Guidance (February 2017) Strong Double-Digit Growth Across Categories Mid-Point YoY Growth Est. FX Impact Non-GAAP Revenue $775 million $795 million $785M 7% $4M $5M Non-GAAP Operating Income $155 million $163 million $159M 20% $1M $2M Non-GAAP Operating Margin 20.0% 20.5% 20.3% 60 bps ~10 bps Non-GAAP Diluted EPS $2.06 $2.18 $ % ~$0.02 Free Cash Flow $120 million $130 million $125M 14% $1M $2M Est. FX Impact shown is negative impact related to foreign currency fluctuations relative to prior year. 30

31 Improving Shareholder Value SUMMARY Performance Strategy execution is accelerating financial performance Goals On track to deliver long-term aspirational goals Technology Early days of integrated cloud solution strategy Capital Strategy Significant cash flow and strong balance sheet 31

32 Appendix 32

33 Return on Invested Capital (ROIC) Calculation 2016 Total Assets $1,310,210 Less restricted cash (353,771) Less non-interest bearing current liabilities (431,241) Add: Accumulated depreciation 95,901 Add: Accumulated amortization of software development 17,544 Add: Accumulated amortization of intangibles 168,429 Add: Research & development (including stock-based compensation) 3Y Expense 1 237,089 Invested Capital $1,044,161 Income from Operations $61,800 Add: Depreciation 19,763 Add: Amortization of software development 8,300 Add: Amortization of intangibles 42,398 EBITDA 132,291 Add: Stock-based compensation 32,638 Add: R&D Exp (excl SBC) 83,403 Adjusted EBITDA 248,332 Less: Implied taxes (assumes 32% tax rate) (19,776) Adjusted NOPAT $228,556 Return on invested capital (ROIC) 21.9% 1. Sum of previous three years R&D expense including any stock-based compensation Note: Non-GAAP EBITDA, Adjusted EBITDA, Adjusted NOPAT 33

34 Historical Reconciliations of GAAP and Non-GAAP Organic Revenue Growth (Unaudited) (dollars in thousands) Years ended Three months ended Year ended Three months ended 12/31/ /31/ /31/ /30/ /30/ /31/ /31/ /31/ /30/ /30/ /31/2015 GAAP revenue $ 730,815 $ 637,940 $ 198,305 $ 183,063 $ 180,191 $ 169,256 $ 637,940 $ 175,877 $ 158,811 $ 156,259 $ 146,993 GAAP revenue growth 14.6% 12.8% 15.3% 15.3% 15.1% Add: Non-GAAP acquisition-related revenue (1) 3,639 35,480 1,853 1,786 35,480 2,239 10,505 10,395 12,341 Less: Revenue from divested businesses (2) (586) (586) (191) (395) Total Non-GAAP adjustments 3,639 34,894 1,853 1,786 34,894 2,239 10,505 10,204 11,946 Non-GAAP revenue (3) $ 734,454 $ 672,834 $ 198,305 $ 183,063 $ 182,044 $ 171,042 $ 672,834 $ 178,116 $ 169,316 $ 166,463 $ 158,939 Non-GAAP organic revenue growth 9.2% 11.3% 8.1% 9.4% 7.6% Non-GAAP revenue (3) $ 734,454 $ 672,834 $ 198,305 $ 183,063 $ 182,044 $ 171, ,834 $ 178,116 $ 169,316 $ 166,463 $ 158,939 Foreign currency impact on Non-GAAP revenue (4) 4, ,527 Non-GAAP revenue on constant currency basis (4) $ 738,624 $ 672,834 $ 199,098 $ 184,026 $ 182,931 $ 172,569 $ 672,834 $ 178,116 $ 169,316 $ 166,463 $ 158,939 Non-GAAP organic revenue growth on constant currency basis 9.8% 11.8% 8.7% 9.9% 8.6% (1) Non-GAAP acquisition-related revenue excludes incremental acquisition-related revenue calculated in accordance with GAAP that is attributable to companies acquired in the current fiscal year. For companies acquired in the immediately preceding fisca l year, non-gaap acquisition-related revenue reflects presentation of full-year incremental non-gaap revenue derived from such companies, as if they were combined throughout the prior period, and it includes the non-gaap revenue from the acquisition-related deferred revenue write-down attributable to those companies. (2) For businesses divested in the prior fiscal year, non-gaap organic revenue growth excludes revenue associated with divested businesses. The exclusion of the prior period revenue is to present the results of the divested business with the results of the combined company for the same period of time in both the prior and current periods. (3) Non-GAAP revenue for the prior year periods presented herein may not agree to non -GAAP revenue presented in the respective prior period quarterly financial information solely due to the manner in which non -GAAP organic revenue growth is calculated. (4) To determine non-gaap organic revenue growth on a constant currency basis, revenues from entities reporting in foreign curre ncies were translated to U.S. Dollars using the comparable period's quarterly weighted average foreign currency exchange rate s. The primary foreign currencies creating the impact are the Canadian Dollar, EURO, British Pound and Australian Dollar. 34

35 Historical Reconciliations of GAAP and Non-GAAP Organic Revenue Growth (Unaudited) (dollars in thousands) Years ended Three months ended Year ended Three months ended 12/31/ /31/ /31/ /30/ /30/ /31/ /31/ /31/ /30/ /30/ /31/2015 GAAP subscriptions revenue $ 428,987 $ 331,759 $ 122,657 $ 105,440 $ 104,039 $ 96,851 $ 331,759 $ 98,336 $ 80,901 $ 80,009 $ 72,513 GAAP subscriptions revenue growth 29.3% 24.7% 30.3% 30.0% 33.6% Add: Non-GAAP acquisition-related subscriptions revenue (1) 3,534 31,189 1,780 1,754 31,189 1,920 9,721 9,038 10,510 Less: subscriptions revenue from divested businesses (2) (202) (202) (76) (126) Total Non-GAAP adjustments 3,534 30,987 1,780 1,754 30,987 1,920 9,721 8,962 10,384 Non-GAAP subscriptions revenue $ 432,521 $ 362,746 $ 122,657 $ 105,440 $ 105,819 $ 98,605 $ 362,746 $ 100,256 $ 90,622 $ 88,971 $ 82,897 Non-GAAP organic subscriptions revenue growth 19.2% 22.3% 16.4% 18.9% 18.9% GAAP subscriptions revenue $ 428,987 $ 331,759 $ 122,657 $ 105,440 $ 104,039 $ 96, ,759 $ 98,336 $ 80,901 $ 80,009 $ 72,513 GAAP maintenance revenue 146, ,801 35,927 36,410 37,449 37, ,801 38,069 38,209 38,627 38,896 GAAP recurring revenue 575, , , , , , , , , , ,409 GAAP recurring revenue growth 18.6% 16.3% 19.1% 19.3% 20.3% Add: Non-GAAP acquisition-related recurring revenue (1) 3,625 34,477 1,844 1,781 34,477 2,194 10,335 10,046 11,902 Less: recurring revenue from divested businesses (2) (378) (378) (133) (245) Total Non-GAAP adjustments 3,625 34,099 1,844 1,781 34,099 2,194 10,335 9,913 11,657 Non-GAAP recurring revenue $ 579,558 $ 519,659 $ 158,584 $ 141,850 $ 143,332 $ 135,792 $ 519,659 $ 138,599 $ 129,445 $ 128,549 $ 123,066 Non-GAAP organic recurring revenue growth 11.5% 14.4% 9.6% 11.5% 10.3% (1) Non-GAAP acquisition-related revenue excludes incremental acquisition-related revenue calculated in accordance with GAAP that is attributable to companies acquired in the current fiscal year. For companies acquired in the immediately preceding fisca l year, non-gaap acquisition-related revenue reflects presentation of full-year incremental non-gaap revenue derived from such companies, as if they were combined throughout the prior period, and it includes the non-gaap revenue from the acquisition-related deferred revenue write-down attributable to those companies. (2) For businesses divested in the prior fiscal year, non-gaap organic revenue growth excludes revenue associated with divested businesses. The exclusion of the prior period revenue is to present the results of the divested business with the results of the combined company for the same period of time in both the prior and current periods. Note: Recurring revenue is equal to the sum of subscriptions revenue and maintenance revenue as reported in quarterly financial reports and as presented in these materials. Non-GAAP recurring revenue is equal to the sum of non-gaap subscriptions revenue and non-gaap maintenance revenue as presented in these materials. 35

36 Reconciliation of GAAP to Non-GAAP Consolidated Statement of Operations (Unaudited) (dollars in thousands, except per share amounts) GAAP Three Months Ended December 31, 2016 Stock-based Compensation Expense Amortization of Intangibles from Business Combinations Employee Severance Acquisitionrelated Deferred Revenue Writedown Acquisitionrelated Integration Costs Acquisitionrelated Expenses Non-GAAP Adjustments Subtotal Revenue Subscriptions $ 122,657 $ $ $ $ $ $ $ $ 122,657 Maintenance 35,927 35,927 Services 35,247 35,247 License fees and other 4,474 4,474 Total revenue 198, ,305 Cost of revenue Cost of subscriptions 60,111 (264) (7,816) (138) (8,218) 51,893 Cost of maintenance 5,547 (117) (1,331) (1,448) 4,099 Cost of services 23,352 (313) (656) (84) (1,053) 22,299 Cost of license fees and other 3,392 (85) (85) 3,307 Total cost of revenue 92,402 (694) (9,888) (222) (10,804) 81,598 Gross profit 105, , , ,707 Subscriptions gross margin 51.0% 6.7% 57.7% Maintenance gross margin 84.6% 4.0% 88.6% Services gross margin 33.7% 3.0% 36.7% License fees and other gross margin 24.2% 1.9% 26.1% Total Gross Margin 53.4% 5.5% 58.9% Operating expenses Sales, marketing and customer success 40,047 (872) (371) (1,243) 38,804 Research and development 21,897 (1,593) (481) (2,074) 19,823 General and administrative 19,242 (4,474) (448) (36) (4,958) 14,284 Amortization 693 (693) (693) Total operating expenses 81,879 (6,939) (693) (1,300) (36) (8,968) 72,911 Income from operations 24,024 7,633 10,581 1, ,772 43,796 Total Operating Margin 12.1% 10.0% 22.1% Net Income $ 17,284 $ 27,978 Shares used in computing diluted earnings per share 47,436 47,436 Diluted earnings per share $ 0.36 $ 0.59 Non-GAAP 36

37 Reconciliation of GAAP to Non-GAAP Consolidated Statement of Operations (Unaudited) (dollars in thousands, except per share amounts) GAAP Years Ended December 31, 2016 Stock-based Compensation Expense Amortization of Intangibles from Business Combinations Employee Severance Acquisitionrelated Deferred Revenue Writedown Acquisitionrelated Integration Costs Acquisitionrelated Expenses Non-GAAP Adjustments Subtotal Revenue Subscriptions $ 428,987 $ 3,534 $ $ $ $ $ $ 3,534 $ 432,521 Maintenance 146, ,037 Services 139, ,704 License fees and other 15,192 15,192 Total revenue 730,815 3,639 3, ,454 Cost of revenue Cost of subscriptions 213,883 (1,168) (31,270) (231) (32,669) 181,214 Cost of maintenance 22,094 (508) (5,327) (16) (5,851) 16,243 Cost of services 96,488 (1,621) (2,621) (135) (4,377) 92,111 Cost of license fees and other 6,755 (340) (340) 6,415 Total cost of revenue 339,220 (3,297) (39,558) (382) (43,237) 295,983 Gross profit 391,595 3,639 3,297 39, , ,471 Subscriptions gross margin 50.1% 8.0% 58.1% Maintenance gross margin 85.0% 4.0% 89.0% Services gross margin 30.9% 3.2% 34.1% License fees and other gross margin 55.5% 2.3% 57.8% Total Gross Margin 53.6% 6.1% 59.7% Operating expenses Sales, marketing and customer success 155,754 (3,844) (542) (4,386) 151,368 Research and development 89,870 (6,467) (516) (6,983) 82,887 General and administrative 81,331 (19,030) (555) (1,419) (301) (21,305) 60,026 Amortization 2,840 (2,840) (2,840) Total operating expenses 329,795 (29,341) (2,840) (1,613) (1,419) (301) (35,514) 294,281 Income from operations 61,800 3,639 32,638 42,398 1,995 1, , ,190 Total Operating Margin 8.5% 11.1% 19.6% Net Income $ 41,515 $ 90,655 Shares used in computing diluted earnings per share 47,317 47,317 Diluted earnings per share $ 0.88 $ 1.92 Non-GAAP 37

38 Reconciliation of GAAP to Non-GAAP Consolidated Statement of Operations (Unaudited) (dollars in thousands, except per share amounts) GAAP Three Months Ended December 31, 2015 Stock-based Compensation Expense Amortization of Intangibles from Business Combinations Employee Severance Impairment of capitalized software development costs Acquisitionrelated Deferred Revenue Writedown Acquisitionrelated Integration Costs Acquisitionrelated Expenses Non-GAAP Adjustments Subtotal Revenue Subscriptions $ 98,336 $ 1,920 $ $ $ $ $ $ $ 1,920 $ 100,256 Maintenance 38, ,343 Services 32, ,145 License fees and other 7,372 7,372 Total revenue 175,877 2,239 2, ,116 Cost of revenue Cost of subscriptions 52,278 (449) (5,775) (2) (6,226) 46,052 Cost of maintenance 5,887 (67) (1,003) (9) (1,079) 4,808 Cost of services 23,694 (259) (375) (15) (649) 23,045 Cost of license fees and other 3,357 (83) (83) 3,274 Total cost of revenue 85,216 (775) (7,236) (26) (8,037) 77,179 Gross profit 90,661 2, , , ,937 Subscriptions gross margin 46.8% 7.3% 54.1% Maintenance gross margin 84.5% 3.0% 87.5% Services gross margin 26.2% 2.1% 28.3% License fees and other gross margin 54.5% 1.1% 55.6% Total Gross Margin 51.5% 5.2% 56.7% Operating expenses Sales, marketing and customer success 34,222 (706) (73) (779) 33,443 Research and development 22,633 (1,556) (72) (239) (1,867) 20,766 General and administrative 22,840 (4,310) (790) (367) (2,859) (8,326) 14,514 Amortization 695 (695) (695) Total operating expenses 80,390 (6,572) (695) (935) (239) (367) (2,859) (11,667) 68,723 Income from operations 10,271 2,239 7,347 7, ,859 21,943 32,214 Total Operating Margin 5.8% 12.3% 18.1% Net Income $ 6,411 $ 17,810 Shares used in computing diluted earnings per share 46,714 46,714 Diluted earnings per share $ 0.14 $ 0.38 Non-GAAP 38

39 Reconciliation of GAAP to Non-GAAP Consolidated Statement of Operations (Unaudited) (dollars in thousands, except per share amounts) GAAP Years Ended December 31, 2015 Stock-based Compensation Expense Amortization of Intangibles from Business Combinations Employee Severance Impairment of capitalized software development costs Acquisitionrelated Deferred Revenue Writedown Acquisitionrelated Integration Costs Acquisitionrelated Expenses Non-GAAP Adjustments Subtotal Revenue Subscriptions $ 331,759 $ 5,545 $ $ $ $ $ $ $ 5,545 $ 337,304 Maintenance 153,801 3,288 3, ,089 Services 132, ,516 License fees and other 19,402 19,402 Total revenue 637,940 9,371 9, ,311 Cost of revenue Cost of subscriptions 167,341 (1,130) (23,075) (234) (24,439) 142,902 Cost of maintenance 27,066 (420) (4,162) (111) (4,693) 22,373 Cost of services 102,815 (1,944) (2,382) (1,147) (5,473) 97,342 Cost of license fees and other 7,409 (368) (368) 7,041 Total cost of revenue 304,631 (3,494) (29,987) (1,492) (34,973) 269,658 Gross profit 333,309 9,371 3,494 29,987 1,492 44, ,653 Subscriptions gross margin 49.6% 8.0% 57.6% Maintenance gross margin 82.4% 3.4% 85.8% Services gross margin 22.7% 4.4% 27.1% License fees and other gross margin 61.8% 1.9% 63.7% Total Gross Margin 52.2% 6.1% 58.3% Operating expenses Sales, marketing and customer success 123,646 (2,979) (242) (3,221) 120,425 Research and development 84,636 (4,865) (340) (239) (5,444) 79,192 General and administrative 76,084 (13,908) (1,100) (1,091) (3,904) (20,003) 56,081 Amortization 2,231 (2,231) (2,231) Total operating expenses 286,597 (21,752) (2,231) (1,682) (239) (1,091) (3,904) (30,899) 255,698 Income from operations 46,712 9,371 25,246 32,218 3, ,091 3,904 75, ,955 Total Operating Margin 7.3% 11.5% 18.8% Net Income $ 25,649 $ 69,645 Shares used in computing diluted earnings per share 46,499 46,499 Diluted earnings per share $ 0.55 $ 1.50 Non-GAAP 39

40 Historical Financial Statements and Non-GAAP Financial Information Being Presented Reclassifications to the historical unaudited financial information: In order to provide comparability between periods presented, certain previously reported historical financial information has been reclassified to conform to the presentation of the most recent reporting period. A summary of those prior period reclassifications is as follows: "Donor restricted cash" and "donations payable" have been renamed as "restricted cash due to customers" and "due to customers", respectively, in the consolidated balance sheets. "Software development costs, net" have been separated from "other assets" and "property and equipment, net" in the consolidated balance sheets. License fees" and "other revenue" have been combined within "license fees and other" in the consolidated statements of comprehensive income. Similarly, "cost of license fees" and "cost of other revenue" have been combined within "cost of license fees and other" in the consolidated statements of comprehensive income. Restructuring expenses have been separated from general and administrative expenses in the consolidated statements of comprehensive income. "Interest income", "loss on sale of business", "loss on debt extinguishment and termination of derivative instruments" and "other income (expense), net" have been combined within "other income (expense), net" in the consolidated statements of comprehensive income. Non-cash charges for amortization of deferred financing costs and discount have been separated from other non-cash adjustments in the consolidated statements of cash flows. Non-cash charges for amortization of software development costs have been separated from other non-cash adjustments in the consolidated statements of cash flows. Payments related to employee income tax withholding upon the net share settlement of equity awards have been reclassified from the "accrued expenses and other liabilities" line item within operating cash flow to a separate financing cash flow line item in the consolidated statement of cash flows. Excess tax benefits generated upon the settlement or exercise of equity awards are no longer displayed gross as an operating cash outflow and a financing cash inflow but are instead combined with other income tax cash flows within operating cash flow in the consolidated statement of cash flows. 40

41 Historical Financial Statements and Non-GAAP Financial Information Being Presented Recently adopted accounting pronouncements: In November 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") No , Income Taxes (Topic 740)-Balance Sheet Classification of Deferred Taxes ("ASU "), which simplifies the presentation of deferred income taxes. ASU requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as non-current on the balance sheet. As a result, each jurisdiction will now only have one net non-current deferred tax asset or liability. The guidance does not change the existing requirement that only permits offsetting within a jurisdiction. The Company adopted ASU , utilizing the prospective application as permitted, and therefore have not retrospectively adjusted prior period information. In April 2015, the FASB issued ASU , Interest - Imputation of Interest - Simplifying the Presentation of Debt Issuance Costs ("ASU "). ASU sets forth a requirement that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs is not affected by the amendments in this update. The Company adopted ASU on January 1, 2016 on a retrospective basis and only adjusted the balance sheet as of December 31, In March 2016, the FASB issued ASU , Compensation Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting ("ASU "), which addresses, among other items, the accounting for income taxes, forfeitures and cash flow presentation. Under ASU , excess tax benefits generated upon the settlement or exercise of stock awards are no longer recognized as additional paid-in capital but are instead recognized as a reduction to income tax expense. This amendment to the accounting for income taxes is effective on a prospective basis as of the beginning of the 2016 fiscal year. The cash flows related to excess tax benefits are required to be presented as an operating activity rather than a financing activity. In addition, all cash tax payments made on an employee s behalf for shares withheld upon settlement or exercise are required to be presented as a financing activity. Blackbaud adopted all amendments related to cash flow presentation on a retrospective basis. With respect to 2016 fiscal year amounts previously reported, the early adoption of ASU increased GAAP net income by $1.2 million for both the three months ended March 31, 2016 and June 30, 2016, respectively, and increased net cash provided by operating activities and net cash used in financing activities by $6.7 million and $4.1 million for the three months ended March 31, 2016 and June 30, 2016, respectively. Blackbaud will provide more detailed information regarding the impact of the early adoption of ASU in its annual report on Form 10-K for the year ended December 31,

42 Historical Consolidated Balance Sheets (Unaudited) (in thousands) Q Q Q Q Q Q Q Q (1) Q Q Q Q Assets Current assets: Cash and cash equivalents $ 32,550 $ 24,847 $ 53,960 $ 14,735 $ 13,286 $ 13,227 $ 17,555 $ 15,362 $ 12,084 $ 15,263 $ 16,462 $ 16,902 Restricted cash due to customers 43,534 44,339 50, ,709 58,355 61,055 63, , , , , ,771 Accounts receivable, net of allowance 63,368 84,425 69,194 77,523 74,901 87,462 78,152 80,046 78, ,749 86,111 88,932 Prepaid expenses and other current assets 29,940 28,271 30,800 40,392 39,074 41,628 39,557 48,666 48,435 53,797 52,145 48,314 Deferred tax asset, current portion 12,103 10,241 6,807 14,423 14,119 11,967 10,608 Total current assets 181, , , , , , , , , , , ,919 Property and equipment, net 47,925 47,390 47,537 49,896 46,878 48,476 48,670 52,651 54,543 54,144 52,466 50,269 Software development costs, net 4,976 5,942 8,366 9,420 11,834 14,619 16,834 19,551 23,021 27,793 32,539 37,582 Goodwill 264, , , , , , , , , , , ,240 Intangible assets, net 137, , , , , , , , , , , ,676 Other assets 14,962 14,726 14,758 17,770 15,400 18,457 18,820 20,901 20,207 21,847 18,102 22,524 Total assets $ 651,749 $ 688,258 $ 702,984 $ 943,183 $ 843,362 $ 855,360 $ 844,164 $ 1,223,336 $ 1,071,928 $ 1,185,084 $ 1,098,786 $ 1,310,210 Liabilities and stockholders equity Current liabilities: Trade accounts payable $ 9,469 $ 8,904 $ 13,346 $ 11,436 $ 11,203 $ 18,100 $ 13,137 $ 19,208 $ 18,286 $ 27,817 $ 19,601 $ 23,274 Accrued expenses and other current liabilities 36,775 45,160 42,938 52,201 35,270 45,357 45,576 57,461 37,577 44,739 44,441 54,196 Due to customers 43,534 44,339 50, ,709 58,355 61,055 63, , , , , ,771 Debt, current portion 4,375 4,375 4,372 4,375 4,375 4,375 4,375 4,375 4,375 4,375 4,375 4,375 Deferred revenue, current portion 173, , , , , , , , , , , ,500 Total current liabilities 267, , , , , , , , , , , ,116 Debt, net of current portion 168, , , , , , , , , , , ,018 Deferred tax liability 36,532 36,323 30,447 43,639 42,443 37,469 34,800 27,996 28,008 27,059 26,688 29,558 Deferred revenue, net of current portion 8,405 10,187 9,440 8,991 9,102 8,796 7,369 7,119 6,583 6,212 6,594 6,440 Other liabilities 6,298 7,994 6,140 7,437 7,445 6,747 7,025 7,623 8,000 8,102 7,467 8,533 Total liabilities 487, , , , , , ,196 1,012, , , ,066 1,062,665 Commitments and contingencies Stockholders equity: Preferred stock Common stock, $0.001 par value Additional paid-in capital 225, , , , , , , , , , , ,452 Treasury stock, at cost (183,882) (184,173) (184,299) (190,440) (192,038) (192,665) (193,168) (199,861) (205,377) (207,898) (210,357) (215,237) Accumulated other comprehensive loss (518) (1,297) (1,061) (1,032) (1,827) (1,926) (2,020) (825) (1,091) (1,640) (942) (457) Retained earnings 123, , , , , , , , , , , ,729 Total stockholders equity 164, , , , , , , , , , , ,545 Total liabilities and stockholders equity $ 651,749 $ 688,258 $ 702,984 $ 943,183 $ 843,362 $ 855,360 $ 844,164 $ 1,223,336 $ 1,071,928 $ 1,185,084 $ 1,098,786 $ 1,310,210 1) As discussed on the previous slide, ASU was adopted by the Company in 2016 on a retrospective basis. With respect to the consolidated balance sheets presented herein prior to Q1 2016, o nly the Q balance sheet herein was adjusted for application of ASU , which resulted in $517 reduction to other assets and total assets and an offsetting reduction to debt, net of current portion, total liabilities and total liabilities and stockholder's equity. 42

43 Historical Consolidated Statements of Comprehensive Income (Unaudited) (in thousands, except share and per share amounts) Q Q Q Q FY 2014 Q Q Q Q FY 2015 Q Q Q Q FY 2016 Revenue Subscriptions $ 58,268 $ 64,985 $ 67,043 $ 73,139 $ 263,435 $ 72,513 $ 80,009 $ 80,901 $ 98,336 $ 331,759 $ 96,851 $ 104,039 $ 105,440 $ 122,657 $ 428,987 Maintenance 35,652 36,527 36,821 38, ,418 38,896 38,627 38,209 38, ,801 37,160 37,449 36,410 35, ,946 Services 28,130 31,795 35,843 32, ,371 31,306 33,667 35,905 32, ,978 32,414 35,419 36,610 35, ,690 License fees and other 5,572 6,081 4,891 8,653 25,197 4,278 3,956 3,796 7,372 19,402 2,831 3,284 4,603 4,474 15,192 Total revenue 127, , , , , , , , , , , , , , ,815 Cost of revenue Cost of subscriptions 30,124 31,749 33,257 38, ,221 36,178 39,400 39,485 52, ,341 49,666 52,163 51,943 60, ,883 Cost of maintenance 5,414 5,983 6,147 7,904 25,448 7,502 6,969 6,708 5,887 27,066 5,318 5,698 5,531 5,547 22,094 Cost of services 26,263 25,540 27,111 27, ,506 26,971 25,915 26,235 23, ,815 24,303 24,731 24,102 23,352 96,488 Cost of license fees and other 1,529 1,424 1,633 3,677 8,263 1,161 1,146 1,745 3,357 7, ,020 1,741 3,392 6,755 Total cost of revenue 63,330 64,696 68,148 77, ,438 71,812 73,430 74,173 85, ,631 79,889 83,612 83,317 92, ,220 Gross profit 64,292 74,692 76,450 75, ,983 75,181 82,829 84,638 90, ,309 89,367 96,579 99, , ,595 Operating expenses Sales, marketing and customer success 25,116 26,433 27,098 28, ,360 28,562 29,723 31,139 34, ,646 35,609 39,408 40,690 40, ,754 Research and development 16,494 18,064 19,707 22,914 77,179 21,276 20,166 20,561 22,633 84,636 22,715 22,748 22,510 21,897 89,870 General and administrative 12,818 13,781 15,519 16,159 58,277 16,843 17,955 18,446 22,840 76,084 19,679 20,091 22,319 19,242 81,331 Amortization , , ,840 Restructuring Total operating expenses 55,015 58,696 62,948 67, ,619 67,169 68,368 70,670 80, ,597 78,755 82,955 86,206 81, ,795 Income from operations 9,277 15,996 13,502 7,589 46,364 8,012 14,461 13,968 10,271 46,712 10,612 13,624 13,540 24,024 61,800 Interest expense (1,459) (1,328) (1,272) (1,952) (6,011) (1,686) (1,873) (1,816) (2,698) (8,073) (2,675) (2,721) (2,641) (2,546) (10,583) Other income (expense), net (1,216) (187) (1,119) (287) (1,274) 192 (318) (1,687) (105) (65) (15) (106) (291) Income before provision for income taxes 6,602 14,906 12,276 5,450 39,234 6,039 11,314 12,344 7,255 36,952 7,832 10,838 10,884 21,372 50,926 Income tax provision 2,788 5,626 1, ,944 1,754 4,272 4, ,303 1,595 1,778 1,950 4,088 9,411 Net income $ 3,814 $ 9,280 $ 10,380 $ 4,816 $ 28,290 $ 4,285 $ 7,042 $ 7,911 $ 6,411 $ 25,649 $ 6,237 $ 9,060 $ 8,934 $ 17,284 $ 41,515 Earnings per share Basic $ 0.08 $ 0.21 $ 0.23 $ 0.11 $ 0.63 $ 0.09 $ 0.15 $ 0.17 $ 0.14 $ 0.56 $ 0.14 $ 0.20 $ 0.19 $ 0.37 $ 0.90 Diluted $ 0.08 $ 0.20 $ 0.23 $ 0.10 $ 0.62 $ 0.09 $ 0.15 $ 0.17 $ 0.14 $ 0.55 $ 0.13 $ 0.19 $ 0.19 $ 0.36 $ 0.88 Common shares and equivalents outstanding Basic weighted average shares 45,127,645 45,155,955 45,196,277 45,377,465 45,215,138 45,529,668 45,579,345 45,616,832 45,766,891 45,623,854 45,967,863 46,083,055 46,159,956 46,272,031 46,132,389 Diluted weighted average shares 45,552,451 45,660,910 45,883,570 46,055,420 45,799,874 46,168,096 46,402,707 46,596,714 46,714,204 46,498,704 47,064,164 47,263,844 47,394,106 47,436,116 47,316,538 Dividends per share $ 0.12 $ 0.12 $ 0.12 $ 0.12 $ 0.48 $ 0.12 $ 0.12 $ 0.12 $ 0.12 $ 0.48 $ 0.12 $ 0.12 $ 0.12 $ 0.12 $ 0.48 Other comprehensive income (loss) Foreign currency translation adjustment 555 (385) (232) (326) (196) (431) Unrealized gain (loss) on derivative instruments, net of tax 312 (394) 468 (295) 92 (469) 97 (262) (669) (118) Total other comprehensive income (loss) 867 (779) (795) (99) (94) 1, (266) (549) Comprehensive income $ 4,681 $ 8,501 $ 10,616 $ 4,844 $ 28,643 $ 3,490 $ 6,943 $ 7,817 $ 7,606 $ 25,856 $ 5,971 $ 8,511 $ 9,632 $ 17,769 $ 41,883 Note: The individual amounts for each quarter may not sum to full year totals due to rounding. 43