The nonprofit software company will combine its subscription and maintenance revenue into one category in future reports, CEO Mike Gianoni said during this week's earnings webcast. "Maintenance is becoming less significant," he said. He expects by the end of 2018, Blackbaud will be approaching 80 percent of revenue from subscriptions, and 10 percent for maintenance and also for services. The growth in subscriptions contributed to what Gianoni called a good year with a very strong finish. Net income for the year just ended was slightly less than $66 million, an increase of 58.8 percent from $41.5 million for 2016. Revenue reached $788.3 million, up 7.7 percent from $730.8 million the prior year—5.4 percent on organic basis. Maintenance revenue was $128.2 million for 2017, a drop of 12.8 percent from $146.9 million a year earlier while services dropped 11.4 percent to $137.3 million from $154.9 million. The bulk of the revenue, subscriptions, rose 21.9 percent to $522.9 million from slightly less than $429 million.
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BLACKBAUD MAINTENANCE DROPS Featured
Blackbaud saw maintenance revenue drop by 12.8 percent for the year ended December 31. But the story is not just a decline for one period, it is about the decline of maintenance revenue throughout the industry as subscription revenue increases.
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