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SUBS BOOST BLACKBAUD IN 2016 Featured

Tony Boor, BlackbaudBlackbaud's move to subscription revenue has reached the point the coming is looking to the day it sells zero software. But in the meantime, subscription represented 62 percent of sales for the fourth quarter ended December 31 and as the company turned in a good year.

"We had a very strong quarter and an exceptionally strong finish to the year," CEO Tony Boor said during this week's earnings webcast. Net income for the year was $41.5 million, an increase of 61.9 percent $25.6 million for 2015. Last year's revenue reached $730.8 million, up 14.6 percent from $637.9 million. Executives noted the company's work to build its direct sales force, which closed the year with 399 representatives, 35 more than in 2015. CEO Mike Gianoni talked about a goal of expanding the sales force, but gave no hiring targets. The nonprofit software company is experiencing one impact from the cloud—less reliance on services with less need for customizations. Services still rose for the year, hitting $139.9 million for 2016, a rise of 5 percent from slightly less than $133 million the prior year. There was a bigger effect on maintenance revenue which dropped 4.5 percent to $146.9 million from $153.8 million.

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