Blackbaud (BLKB) 8-K Regulation FD Disclosure

Exhibit 99.2

BLACKBAUD, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Unaudited)

	Trailing Twelve Months Ended						Year Ended
	June 30,						December 31,
	2004			2003			2003
GAAP revenue	$	127,788		$	111,027		$	118,093
GAAP gross margin	$	87,437		$	75,378		$	78,719
Pro forma adjustments:
Amortization of deferred stock compensation		2,868			1,608			3,847
Pro forma gross profit	$	90,305		$	76,986		$	82,566
Pro forma gross margin		71	%		69	%		70	%
GAAP income from operations	$	17,711		$	17,590		$	5,696
Pro forma adjustments:
Amortization of deferred stock compensation		16,538			12,822			27,538
Costs of initial public offering		1,650			—			—
Total pro forma adjustments		18,188			12,822			27,538
Pro forma income from operations	$	35,899		$	30,412		$	33,234
Pro forma operating margin		28	%		27	%		28	%
GAAP net income(loss)	$	9,159		$	7,177		$	(478	)
Pro forma adjustments:
Total pro forma adjustments affecting income from operations		18,188			12,822			27,538
Tax impact related to pro forma adjustments		(5,627	)		(3,180	)		(7,767	)
Pro forma net income	$	21,720		$	16,819		$	19,293

BLACKBAUD, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Unaudited)
(In thousands, except per share amounts; unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2004			2003			2004			2003
GAAP revenue	$	35,489		$	29,840		$	66,844		$	57,148
GAAP gross margin	$	25,070		$	19,889		$	46,798		$	38,080
Pro forma adjustments:
Amortization of deferred stock compensation		298			893			629			1608
Pro forma gross profit	$	25,368		$	20,782		$	47,427		$	39,688
Pro forma gross margin		71	%		70	%		71	%		69	%
GAAP income/(loss) from operations	$	9,062		$	2,447		$	15,654		$	3,640
Pro forma adjustments:
Amortization of deferred stock compensation		824			6,661			1,822			12,822
Costs of initial public offering		700			—			1,650			—
Total pro forma adjustments		1,524			6,661			3,472			12,822
Pro forma income from operations	$	10,586		$	9,108		$	19,126		$	16,462
Pro forma operating margin		30	%		31	%		29	%		29	%
GAAP net income(loss)	$	5,343		$	(246	)	$	9,340		$	(297	)
Pro forma adjustments:
Total pro forma adjustments affecting income from operations		1,524			6,661			3,472			12,822
Tax impact related to pro forma adjustments		(419	)		(1,142	)		(1,056	)		(3,180	)
Pro forma net income	$	6,448		$	5,273		$	11,756		$	9,345
GAAP shares used in computing diluted income(loss) per share		45,984			42,403			45,944			42,382
Pro forma adjustments:
Incremental shares related to stock options		(198	)		2,171			(175	)		1,764
Shares used in computing proforma earnings per diluted share		45,786			44,574			45,769			44,146
Pro forma earnings per diluted share	$	0.14		$	0.12		$	0.26		$	0.21