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BLACKBAUD REPORTS GOOD QUARTER Featured

Mike Gianoni, Blackbaud Nonprofit software vendor Blackbaud turned in a good performance for the second quarter ended June 30. The Charleston, S.C.-based company said net income rose to $11.2 million in the most recently ended period, an increase of 23.2 percent over $9.1 million a year earlier.

Revenue of $192.2 million was 6.7 percent higher than the $180.2 million in last year's corresponding quarter. An important topic in Blackbaud's recent earnings webcast was the discussion increased sales force. "We started a couple of years ago to build more muscle around sales operations," CEO Mike Giononi said. He said that last year the company increased the size of its sales force by 10 percent over 2015 and it intends to do the same this year. He also noted the reorganization of the sales force into one group to pursue new customers and the other to sell to the installed based. "Several years ago, the entire sales team was mixed," Gianoni said. "Now, it's very separate in the last year or so including separate leadership." Revenue growth came entirely from increased subscription revenue, which rose to $125.3 million in the June quarter, up 20.4 percent from $104 million a year earlier. Maintenance revenue fell 12.1 percent to $32.9 percent from $37.4 million. Reasons given included the migration to the cloud, although Blackbaud did not specify which factors had the biggest impact. Services revenue dropped by the same percentage, falling to $34 million from $38.7 million, but the company pointed to the cloud migration as contributing to the decline since fewer implementation services are needed for cloud sales.

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