“At this point, we are currently expecting a significant shortfall in bookings versus plan on the year,” CFO Anthony Boor said during the webcast. Efforts to help customers include a 60-day extension of payment terms on new sales, which Boor said has been allowed “on a limited basis” and he continued, “We've also partnered to offer 0-percent financing options for new sales on a case-by-case basis.” Among steps announced in early April were a hiring freeze, a ban on non-essential travel, a temporary suspension of 401(k) matches for American employees and the stock dividend. Cash merit raises and bonuses were replaced with stock while employees with annual salary of less than $75,000 were granted a $1,000 cash payment. The company said it also took steps to create an additional $300 million in borrowing capacity. Blackbaud had a decent first quarter, reporting net income of $4.6 million, compared to a loss of $1.1 million in last year’s corresponding period. Revenue for the most recently ended period were $223.6 million, an increase of 3.6 percent from $215.8 million in a year earlier. Contributing to the bottom line was a 3.5-percent drop in operating expenses to $110.3 million in the quarter, down from $114.4 million in last year’s corresponding period. The drop in business started in the second half of March. CEO Mike Gianoni, who is forgoing his pay for the foreseeable future, said Blackbaud’s K-12 customers were able to quickly to online education and that there has been demand for the Financial Edge NEXT accounting software as financial staff shifted to working at home.Last modified on Wednesday, 13 May 2020
BOOKINGS FALL SHARPLY AT BLACKBAUD Featured
Renewal rates are ahead of expectations but bookings have dropped significantly for Blackbaud, the nonprofit software said during its recent financial webcast. Given the impact of the Coronavirus epidemic, the company has taken a number of actions, which began in early March.