Document
Document - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 29, 2024 | |
Document Information [Line Items] | ||
Document type | 10-Q | |
Document quarterly report | true | |
Document period end date | Jun. 30, 2024 | |
Document transition report | false | |
Entity file number | 000-50600 | |
Entity registrant name | Blackbaud, Inc. | |
Entity incorporation, state or country code | DE | |
Entity tax identification number | 11-2617163 | |
Entity address, address line one | 65 Fairchild Street | |
Entity address, city | Charleston | |
Entity address, state | SC | |
Entity address, postal zip code | 29492 | |
City area code | 843 | |
Local phone number | 216-6200 | |
Title of 12(b) security | Common Stock, $0.001 Par Value | |
Trading symbol | BLKB | |
Security exchange name | NASDAQ | |
Entity current reporting status | Yes | |
Entity interactive data current | Yes | |
Entity filer category | Large Accelerated Filer | |
Entity small business | false | |
Entity emerging growth company | false | |
Entity shell company | false | |
Entity common stock, shares outstanding | 51,626,340 | |
Amendment flag | false | |
Document fiscal year focus | 2024 | |
Document fiscal period focus | Q2 | |
Entity central index key | 0001280058 | |
Current fiscal year end date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 30,438 | $ 31,251 |
Total restricted cash | 800,670 | 697,006 |
Accounts receivable, net of allowance of $6,006 and $6,907 at June 30, 2024 and December 31, 2023, respectively | 152,832 | 101,862 |
Customer funds receivable | 2,943 | 353 |
Prepaid expenses and other current assets | 92,290 | 99,285 |
Total current assets | 1,079,173 | 929,757 |
Property and equipment, net | 98,066 | 98,689 |
Operating lease right-of-use assets | 28,489 | 36,927 |
Software and content development costs, net | 165,465 | 160,194 |
Goodwill | 1,053,249 | 1,053,738 |
Intangible assets, net | 549,521 | 581,937 |
Other assets | 68,785 | 51,037 |
Total assets | 3,042,748 | 2,912,279 |
Current liabilities: | ||
Trade accounts payable | 44,038 | 25,184 |
Accrued expenses and other current liabilities | 51,682 | 64,322 |
Due to customers | 802,372 | 695,842 |
Debt, current portion | 23,786 | 19,259 |
Deferred revenue, current portion | 427,098 | 392,530 |
Total current liabilities | 1,348,976 | 1,197,137 |
Debt, net of current portion | 998,071 | 760,405 |
Deferred tax liability | 75,397 | 93,292 |
Deferred revenue, net of current portion | 2,315 | 2,397 |
Operating lease liabilities, net of current portion | 36,290 | 40,085 |
Other liabilities | 4,362 | 10,258 |
Total liabilities | 2,465,411 | 2,103,574 |
Commitments and contingencies (see Note 9) | ||
Stockholders' equity: | ||
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Preferred stock; 20,000,000 shares authorized, none outstanding | $ 0 | $ 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 180,000,000 | 180,000,000 |
Common stock, shares issued | 70,883,488 | 69,188,304 |
Common stock, $0.001 par value; 180,000,000 shares authorized, 70,883,488 and 69,188,304 shares issued at June 30, 2024 and December 31, 2023, respectively; 51,623,951 and 53,625,440 shares outstanding at June 30, 2024 and December 31, 2023, respectively | $ 71 | $ 69 |
Additional paid-in capital | $ 1,208,624 | $ 1,203,012 |
Treasury stock, shares | 19,259,537 | 15,562,864 |
Treasury stock, at cost; 19,259,537 and 15,562,864 shares at June 30, 2024 and December 31, 2023, respectively | $ (857,452) | $ (591,557) |
Accumulated other comprehensive income (loss) | 175 | (1,688) |
Retained earnings | 225,919 | 198,869 |
Total stockholders' equity | 577,337 | 808,705 |
Total liabilities and stockholders' equity | $ 3,042,748 | $ 2,912,279 |
Common Stock, Shares, Outstanding | 51,623,951 | 53,625,440 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 6,006 | $ 6,907 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue | ||||
Revenue | $ 287,286 | $ 271,042 | $ 566,536 | $ 532,795 |
Cost of revenue | ||||
Cost of revenue | 124,700 | 121,475 | 250,906 | 244,587 |
Gross profit | 162,586 | 149,567 | 315,630 | 288,208 |
Operating expenses | ||||
Sales, marketing and customer success | 47,081 | 53,191 | 97,946 | 107,576 |
Research and development | 39,068 | 36,146 | 81,870 | 76,737 |
General and administrative | 33,443 | 59,148 | 81,197 | 111,986 |
Amortization | 902 | 788 | 1,806 | 1,562 |
Total operating expenses | 120,494 | 149,273 | 262,819 | 297,861 |
Income (loss) from operations | 42,092 | 294 | 52,811 | (9,653) |
Interest expense | (15,715) | (11,167) | (25,991) | (21,829) |
Other income, net | 3,310 | 2,778 | 6,657 | 4,785 |
Income (loss) before provision (benefit) for income taxes | 29,687 | (8,095) | 33,477 | (26,697) |
Income tax provision (benefit) | 7,883 | (10,200) | 6,427 | (14,101) |
Net income (loss) | $ 21,804 | $ 2,105 | $ 27,050 | $ (12,596) |
Earnings (loss) per share | ||||
Basic earnings per share | $ 0.43 | $ 0.04 | $ 0.53 | $ (0.24) |
Diluted earnings per share | $ 0.42 | $ 0.04 | $ 0.52 | $ (0.24) |
Common shares and equivalents outstanding | ||||
Basic weighted average shares | 50,747,337 | 52,642,411 | 51,399,853 | 52,389,112 |
Diluted weighted average shares outstanding | 51,677,418 | 53,643,124 | 52,371,927 | 52,389,112 |
Other comprehensive (loss) income | ||||
Foreign currency translation adjustment | $ 339 | $ 3,055 | $ (846) | $ 5,213 |
Unrealized (loss) gain on derivative instruments, net of tax | (1,386) | 5,383 | 2,709 | (5,309) |
Total other comprehensive (loss) income | (1,047) | 8,438 | 1,863 | (96) |
Comprehensive income (loss) | 20,757 | 10,543 | 28,913 | (12,692) |
Recurring [Member] | ||||
Revenue | ||||
Revenue | 281,376 | 262,390 | 552,894 | 515,138 |
Cost of revenue | ||||
Cost of revenue | 119,810 | 113,926 | 238,998 | 228,426 |
One-time services and other [Member] | ||||
Revenue | ||||
Revenue | 5,910 | 8,652 | 13,642 | 17,657 |
Cost of revenue | ||||
Cost of revenue | $ 4,890 | $ 7,549 | $ 11,908 | $ 16,161 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | |
Cash flows from operating activities | ||
Net income (loss) | $ 27,050 | $ (12,596) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 60,553 | 53,622 |
Provision for doubtful accounts and sales returns | 519 | 3,798 |
Stock-based compensation expense | 57,856 | 63,289 |
Deferred taxes | (18,810) | (33,101) |
Amortization of deferred financing costs and discount | 984 | 963 |
Loss on disposition of business | 1,561 | 0 |
Other non-cash adjustments | 2,462 | (1,569) |
Changes in operating assets and liabilities, net of acquisition and disposal of businesses: | ||
Accounts receivable | (53,062) | (69,624) |
Prepaid expenses and other assets | (2,473) | 9,470 |
Trade accounts payable | 19,146 | (3,431) |
Accrued expenses and other liabilities | (13,579) | 11,948 |
Deferred revenue | 36,228 | 52,233 |
Net cash provided by operating activities | 118,435 | 75,002 |
Cash flows from investing activities | ||
Purchase of property and equipment | (6,118) | (2,779) |
Capitalized software and content development costs | (28,392) | (28,756) |
Net cash used in disposition of business | (1,179) | 0 |
Other investing activities | (5,029) | 0 |
Net cash used in investing activities | (40,718) | (31,535) |
Cash flows from financing activities | ||
Proceeds from issuance of debt | 1,211,600 | 158,000 |
Payments on debt | (966,680) | (171,824) |
Debt issuance costs | (6,458) | 0 |
Employee taxes paid for withheld shares upon equity award settlement | (54,483) | (33,687) |
Change in due to customers | 106,851 | 61,313 |
Change in customer funds receivable | (2,577) | (3,359) |
Purchase of treasury stock | (262,596) | 0 |
Net cash provided by financing activities | 25,657 | 10,443 |
Effect of exchange rate on cash, cash equivalents and restricted cash | (523) | 2,489 |
Net increase in cash, cash equivalents and restricted cash | 102,851 | 56,399 |
Cash, cash equivalents and restricted cash, beginning of period | 728,257 | 733,931 |
Cash, cash equivalents and restricted cash, end of period | 831,108 | $ 790,330 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||
Cash and cash equivalents | 30,438 | |
Total restricted cash | 800,670 | |
Total cash, cash equivalents and restricted cash in the statement of cash flows | $ 831,108 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common stock [Member] | Treasury stock, common [Member] | Additional paid-in capital [Member] | Accumulated other comprehensive income (loss) [Member] | Retained earnings [Member] |
Balance (in shares) at Dec. 31, 2022 | 67,814,044 | |||||
Balance at Dec. 31, 2022 | $ 744,032 | $ 68 | $ (537,287) | $ 1,075,264 | $ 8,938 | $ 197,049 |
Treasury Stock, Common, Shares at Dec. 31, 2022 | (14,745,230) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (14,701) | (14,701) | ||||
Vesting of restricted stock units (in shares) | 954,147 | |||||
Vesting of restricted stock units | 0 | 0 | ||||
Share-Based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | (533,597) | |||||
Employee taxes paid for withheld shares upon equity award settlement | (30,990) | $ (30,990) | ||||
Stock-based compensation | 29,925 | 29,925 | 0 | |||
Restricted stock grants (in shares) | 427,941 | |||||
Restricted stock grants | 1 | $ 1 | ||||
Restricted stock cancellations (in shares) | (41,269) | |||||
Other comprehensive income | (8,534) | (8,534) | ||||
Balance (in shares) at Mar. 31, 2023 | 69,154,863 | |||||
Balance at Mar. 31, 2023 | 719,733 | $ 69 | $ (568,277) | 1,105,189 | 404 | 182,348 |
Treasury Stock, Common, Shares at Mar. 31, 2023 | (15,278,827) | |||||
Balance (in shares) at Dec. 31, 2022 | 67,814,044 | |||||
Balance at Dec. 31, 2022 | 744,032 | $ 68 | $ (537,287) | 1,075,264 | 8,938 | 197,049 |
Treasury Stock, Common, Shares at Dec. 31, 2022 | (14,745,230) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (12,596) | |||||
Balance (in shares) at Jun. 30, 2023 | 69,164,244 | |||||
Balance at Jun. 30, 2023 | 761,370 | $ 69 | $ (570,547) | 1,138,553 | 8,842 | 184,453 |
Treasury Stock, Common, Shares at Jun. 30, 2023 | (15,311,367) | |||||
Balance (in shares) at Mar. 31, 2023 | 69,154,863 | |||||
Balance at Mar. 31, 2023 | 719,733 | $ 69 | $ (568,277) | 1,105,189 | 404 | 182,348 |
Treasury Stock, Common, Shares at Mar. 31, 2023 | (15,278,827) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 2,105 | 2,105 | ||||
Vesting of restricted stock units (in shares) | 23,550 | |||||
Vesting of restricted stock units | 0 | 0 | ||||
Share-Based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | (32,540) | |||||
Employee taxes paid for withheld shares upon equity award settlement | (2,270) | $ (2,270) | ||||
Stock-based compensation | 33,364 | 33,364 | 0 | |||
Restricted stock grants (in shares) | 6,031 | |||||
Restricted stock grants | 0 | $ 0 | ||||
Restricted stock cancellations (in shares) | (20,200) | |||||
Other comprehensive income | 8,438 | 8,438 | ||||
Balance (in shares) at Jun. 30, 2023 | 69,164,244 | |||||
Balance at Jun. 30, 2023 | 761,370 | $ 69 | $ (570,547) | 1,138,553 | 8,842 | 184,453 |
Treasury Stock, Common, Shares at Jun. 30, 2023 | (15,311,367) | |||||
Balance (in shares) at Dec. 31, 2023 | 69,188,304 | |||||
Balance at Dec. 31, 2023 | $ 808,705 | $ 69 | $ (591,557) | 1,203,012 | (1,688) | 198,869 |
Treasury Stock, Common, Shares at Dec. 31, 2023 | (15,562,864) | (15,562,864) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | $ 5,246 | 5,246 | ||||
Treasury Stock, Shares, Acquired | (2,954,211) | |||||
Purchase of treasury shares under stock repurchase program, cost method | (263,656) | $ (211,412) | (52,244) | |||
Vesting of restricted stock units (in shares) | 1,357,125 | |||||
Vesting of restricted stock units | 0 | 0 | ||||
Share-Based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | (720,189) | |||||
Employee taxes paid for withheld shares upon equity award settlement | (52,723) | $ (52,723) | ||||
Stock-based compensation | 33,570 | 33,570 | 0 | |||
Restricted stock grants (in shares) | 335,237 | |||||
Restricted stock grants | 2 | $ 2 | ||||
Restricted stock cancellations (in shares) | (19,159) | |||||
Other comprehensive income | 2,910 | 2,910 | ||||
Balance (in shares) at Mar. 31, 2024 | 70,861,507 | |||||
Balance at Mar. 31, 2024 | 534,054 | $ 71 | $ (855,692) | 1,184,338 | 1,222 | 204,115 |
Treasury Stock, Common, Shares at Mar. 31, 2024 | (19,237,264) | |||||
Balance (in shares) at Dec. 31, 2023 | 69,188,304 | |||||
Balance at Dec. 31, 2023 | $ 808,705 | $ 69 | $ (591,557) | 1,203,012 | (1,688) | 198,869 |
Treasury Stock, Common, Shares at Dec. 31, 2023 | (15,562,864) | (15,562,864) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | $ 27,050 | |||||
Balance (in shares) at Jun. 30, 2024 | 70,883,488 | |||||
Balance at Jun. 30, 2024 | $ 577,337 | $ 71 | $ (857,452) | 1,208,624 | 175 | 225,919 |
Treasury Stock, Common, Shares at Jun. 30, 2024 | (19,259,537) | (19,259,537) | ||||
Balance (in shares) at Mar. 31, 2024 | 70,861,507 | |||||
Balance at Mar. 31, 2024 | $ 534,054 | $ 71 | $ (855,692) | 1,184,338 | 1,222 | 204,115 |
Treasury Stock, Common, Shares at Mar. 31, 2024 | (19,237,264) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 21,804 | 21,804 | ||||
Vesting of restricted stock units (in shares) | 10,719 | |||||
Vesting of restricted stock units | 0 | 0 | ||||
Share-Based Payment Arrangement, Shares Withheld for Tax Withholding Obligation | (22,273) | |||||
Employee taxes paid for withheld shares upon equity award settlement | (1,760) | $ (1,760) | ||||
Stock-based compensation | 24,286 | 24,286 | 0 | |||
Restricted stock grants (in shares) | 21,164 | |||||
Restricted stock grants | 0 | $ 0 | ||||
Restricted stock cancellations (in shares) | (9,902) | |||||
Other comprehensive income | (1,047) | (1,047) | ||||
Balance (in shares) at Jun. 30, 2024 | 70,883,488 | |||||
Balance at Jun. 30, 2024 | $ 577,337 | $ 71 | $ (857,452) | $ 1,208,624 | $ 175 | $ 225,919 |
Treasury Stock, Common, Shares at Jun. 30, 2024 | (19,259,537) | (19,259,537) |
Organization
Organization | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | 1. Organization We are the leading software provider exclusively dedicated to powering social impact. Serving the nonprofit and education sectors, companies committed to social responsibility and individual change makers, our essential software is built to accelerate impact in fundraising, nonprofit financial management, digital giving, grantmaking, corporate social responsibility and education management. A remote-first company, we have operations in the United States, Australia, Canada, Costa Rica and the United Kingdom, supporting users in 100+ countries. |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 2. Basis of Presentation Unaudited condensed consolidated interim financial statements The accompanying condensed consolidated interim financial statements have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission ("SEC") for interim financial reporting. These condensed consolidated statements are unaudited and, in the opinion of management, include all adjustments (consisting of normal recurring adjustments and accruals) necessary to state fairly the consolidated balance sheets, consolidated statements of comprehensive income, consolidated statements of cash flows and consolidated statements of stockholders’ equity, for the periods presented in accordance with accounting principles generally accepted in the United States ("U.S.") ("GAAP"). The condensed consolidated balance sheet at December 31, 2023 has been derived from the audited consolidated financial statements at that date. Operating results and cash flows for the six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2024, or any other future period. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been omitted in accordance with the rules and regulations for interim reporting of the SEC. These unaudited, condensed consolidated interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023, and other forms filed with the SEC from time to time. Basis of consolidation The unaudited, condensed consolidated financial statements include the accounts of Blackbaud, Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Reportable segment We report our operating results and financial information in one operating and reportable segment. Our chief operating decision maker uses consolidated financial information to make operating decisions, assess financial performance and allocate resources. Our chief operating decision maker is our chief executive officer. Use of estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. On an ongoing basis, we reconsider and evaluate our estimates and assumptions, including those that impact revenue recognition, long-lived and intangible assets, income taxes, business combinations, stock-based compensation, capitalization of software and content development costs, our allowances for credit losses and sales returns, costs of obtaining contracts, valuation of derivative instruments, loss contingencies and insurance recoveries, among others. Changes in the facts or circumstances underlying these estimates could result in material changes and actual results could materially differ from these estimates. Recently issued accounting pronouncements There are no recently issued accounting pronouncements that we expect to have a material impact on our consolidated financial statements when adopted in the future. Summary of significant accounting policies There have been no material changes to our significant accounting policies described in our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 21, 2024. |
Business Combinations
Business Combinations | 6 Months Ended |
Jun. 30, 2024 | |
Business Combinations [Abstract] | |
Business Combinations and Dispositions | 3. Business Combinations and Dispositions 2024 disposition On March 2, 2024, we completed a transaction to divest our U.K.-based creative services business EVERFI Limited, formerly a wholly-owned subsidiary of EVERFI Inc, which is a wholly-owned subsidiary of Blackbaud, Inc. EVERFI Limited's total revenue during 2023 was $8.4 million. We incurred an insignificant amount of legal costs associated with the disposition of this business. As a result of the disposition, we recorded a $1.6 million loss, which was recorded in general and administrative expense in the unaudited, condensed consolidated statement of comprehensive income for the six months ended June 30, 2024. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 4. Earnings (Loss) Per Share We compute basic earnings (loss) per share by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares and dilutive potential common shares outstanding during the period. Diluted earnings (loss) per share reflects the assumed exercise, settlement and vesting of all dilutive securities using the “treasury stock method” except when the effect is anti-dilutive. Potentially dilutive securities consist of shares issuable upon vesting of restricted stock awards and units. Diluted loss per share for the six months ended June 30, 2023 was the same as basic loss per share as there was a net loss in the period and inclusion of potentially dilutive securities was anti-dilutive. The following table sets forth the computation of basic and diluted earnings (loss) per share: Three months ended June 30, Six months ended June 30, (dollars in thousands, except per share amounts) 2024 2023 2024 2023 Numerator: Net income (loss) $ 21,804 $ 2,105 $ 27,050 $ (12,596) Denominator: Weighted average common shares 50,747,337 52,642,411 51,399,853 52,389,112 Add effect of dilutive securities: Restricted stock and units 930,081 1,000,713 972,074 — Weighted average common shares assuming dilution 51,677,418 53,643,124 52,371,927 52,389,112 Earnings (loss) per share Basic $ 0.43 $ 0.04 $ 0.53 $ (0.24) Diluted $ 0.42 $ 0.04 $ 0.52 $ (0.24) Anti-dilutive shares excluded from calculations of diluted earnings (loss) per share 12,367 9,487 1,023,093 1,151,974 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. Fair Value Measurements We use a three-tier fair value hierarchy to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows: • Level 1 - Quoted prices for identical assets or liabilities in active markets; • Level 2 - Quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and • Level 3 - Valuations derived from valuation techniques in which one or more significant inputs are unobservable. Recurring fair value measurements Financial assets and liabilities that are measured at fair value on a recurring basis consisted of the following, as of the dates indicated below: Fair value measurement using (dollars in thousands) Quoted Prices in Active Markets for Identical Assets and Liabilities Significant Other Observable Inputs Significant Unobservable Inputs Total Fair value as of June 30, 2024 Financial assets: Interest rate swaps $ — $ 14,282 $ — $ 14,282 Foreign currency forward contracts — 252 — 252 Total financial assets $ — $ 14,534 $ — $ 14,534 Fair value as of June 30, 2024 Financial liabilities: Foreign currency forward contracts $ — $ 56 $ — $ 56 Total financial liabilities $ — $ 56 $ — $ 56 Fair value as of December 31, 2023 Financial assets: Interest rate swaps $ — $ 16,198 $ — $ 16,198 Total financial assets $ — $ 16,198 $ — $ 16,198 Fair value as of December 31, 2023 Financial liabilities: Interest rate swaps $ — $ 5,004 $ — $ 5,004 Foreign currency forward contracts — 536 — 536 Contingent consideration obligations — — 1,403 1,403 Total financial liabilities $ — $ 5,540 $ 1,403 $ 6,943 Our derivative instruments within the scope of Accounting Standards Codification ("ASC") 815, Derivatives and Hedging , are required to be recorded at fair value. Our derivative instruments that are recorded at fair value include interest rate swaps and foreign currency forward contracts. See Note 8 to these unaudited, condensed consolidated financial statements for additional information about our derivative instruments. The fair value of our interest rate swaps and foreign currency forward contracts are based on model-driven valuations using Secured Overnight Financing Rate ("SOFR") rates and foreign currency forward rates, respectively, which are observable at commonly quoted intervals. Accordingly, our interest rate swaps and foreign currency forward contracts are classified within Level 2 of the fair value hierarchy. Contingent consideration obligations arise from business acquisitions. The fair values are based on discounted cash flow analyses reflecting a probability-weighted assessment approach derived from the likelihood of possible achievement of specified performance measures or events and captures the contractual nature of the contingencies, commercial risk, and the time value of money. As the fair value measurements for our contingent consideration obligations contain significant unobservable inputs, they are classified within Level 3 of the fair value hierarchy. We believe the carrying amounts of our cash and cash equivalents, restricted cash, accounts receivable, trade accounts payable, accrued expenses and other current liabilities and due to customers approximate their fair values at June 30, 2024 and December 31, 2023, due to the immediate or short-term maturity of these instruments. We believe the carrying amount of our debt approximates its fair value at June 30, 2024 and December 31, 2023, as the debt bears interest rates that approximate market value. As SOFR rates are observable at commonly quoted intervals, our debt under the 2024 Credit Facilities (as defined below) is classified within Level 2 of the fair value hierarchy. The fair value of our fixed rate debt does not exceed the carrying amount. We did not transfer any assets or liabilities among the levels within the fair value hierarchy during the six months ended June 30, 2024. Non-recurring fair value measurements Assets and liabilities that are measured at fair value on a non-recurring basis include long-lived assets, intangible assets, goodwill and operating lease right-of-use ("ROU") assets. These assets are recognized at fair value during the period in which an acquisition is completed or at lease commencement, from updated estimates and assumptions during the measurement period, or when they are considered to be impaired. These non-recurring fair value measurements, primarily for long-lived assets, intangible assets acquired and operating lease ROU assets, are based on Level 3 unobservable inputs. In the event of an impairment, we determine the fair value of these assets other than goodwill using a discounted cash flow approach, which contains significant unobservable inputs and, therefore, is considered a Level 3 fair value measurement. The unobservable inputs in the analysis generally include future cash flow projections and a discount rate. For goodwill impairment testing, we estimate fair value using market-based methods including the use of market capitalization and consideration of a control premium. In June 2024, we entered into a sublease for an additional portion of our Washington, DC office location, which we previously closed for our own use in February 2023 to align with our remote-first workforce strategy. We considered our entry into the sublease an impairment indicator. As a result, during the three and six months ended June 30, 2024, we recorded noncash impairment charges of $3.1 million against certain operating lease ROU assets and noncash impairment charges against certain property and equipment assets which were insignificant. We present these impairment charges in general and administrative expense on our unaudited, condensed consolidated statements of comprehensive income (loss) and as other non-cash adjustments within operating activities on our unaudited condensed consolidated statements of cash flows. There were no other significant non-recurring fair value adjustments to our long-lived assets, intangible assets, goodwill or operating lease ROU assets during the six months ended June 30, 2024. |
Consolidated Financial Statemen
Consolidated Financial Statement Details | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidated Financial Statement Details | 6. Consolidated Financial Statement Details Restricted cash (dollars in thousands) June 30, December 31, Restricted cash due to customers $ 799,429 $ 695,489 Real estate escrow balances and other 1,241 1,517 Total restricted cash $ 800,670 $ 697,006 Prepaid expenses and other assets (dollars in thousands) June 30, December 31, Costs of obtaining contracts (1)(2) $ 60,680 $ 62,377 Prepaid software maintenance and subscriptions (3) 35,600 35,169 Derivative instruments 14,534 16,198 Implementation costs for cloud computing arrangements, net (4)(5) 10,262 9,259 Prepaid insurance 7,078 3,940 Unbilled accounts receivable 5,789 5,615 Equity method investment (6) 5,029 — Taxes, prepaid and receivable 5,549 3,418 Other assets 16,554 14,346 Total prepaid expenses and other assets 161,075 150,322 Less: Long-term portion 68,785 51,037 Prepaid expenses and other current assets $ 92,290 $ 99,285 (1) Amortization expense from costs of obtaining contracts was $4.9 million and $9.7 million for the three and six months ended June 30, 2024, respectively, and $8.1 million and $16.4 million for the three and six months ended June 30, 2023, respectively. (2) The current portion of costs of obtaining contracts as of June 30, 2024 and December 31, 2023 was $19.6 million and $25.3 million, respectively. (3) The current portion of prepaid software maintenance and subscriptions as of June 30, 2024 and December 31, 2023 was $32.1 million and $32.4 million, respectively. (4) These costs primarily relate to the multi-year implementations of our new global enterprise resource planning, customer relationship management systems and other cloud-based systems. (5) Amortization expense from capitalized cloud computing implementation costs was $0.7 million and insignificant for the three months ended June 30, 2024 and 2023, respectively, and $1.4 million and $1.1 million for the six months ended June 30, 2024 and 2023, respectively. Accumulated amortization for these costs was $9.1 million and $7.7 million as of June 30, 2024 and December 31, 2023, respectively. (6) Represents a strategic investment that did not result in Blackbaud having significant influence over the investee. Accrued expenses and other liabilities (dollars in thousands) June 30, December 31, Accrued legal costs (1) $ 10,473 $ 3,659 Taxes payable 10,428 21,282 Customer credit balances 7,631 10,238 Operating lease liabilities, current portion 4,887 6,701 Accrued commissions and salaries 2,995 4,413 Accrued vacation costs 2,594 2,452 Accrued health care costs 2,230 3,865 Accrued transaction-based costs related to payments services 1,934 4,323 Derivative instruments 56 5,540 Contingent consideration liability — 1,403 Other liabilities 12,816 10,704 Total accrued expenses and other liabilities 56,044 74,580 Less: Long-term portion 4,362 10,258 Accrued expenses and other current liabilities $ 51,682 $ 64,322 (1) All accrued legal costs are classified as current. See Note 9 to these unaudited, condensed consolidated financial statements for additional information about our loss contingency accruals and other legal expenses. Other income, net Three months ended June 30, Six months ended June 30, (dollars in thousands) 2024 2023 2024 2023 Interest income $ 2,815 $ 2,308 $ 4,863 $ 3,544 Currency revaluation losses (380) (535) (97) (779) Other income, net 875 1,005 1,891 2,020 Other income, net $ 3,310 $ 2,778 $ 6,657 $ 4,785 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Debt | 7. Debt The following table summarizes our debt balances and the related weighted average effective interest rates, which includes the effect of interest rate swap agreements. Debt balance at Weighted average (dollars in thousands) June 30, December 31, June 30, December 31, Credit facility: Revolving credit loans $ 167,300 $ 114,100 7.78 % 7.52 % Term loans 800,000 607,500 4.61 % 3.51 % Real estate loans 55,965 56,745 5.23 % 5.22 % Other debt 2,782 2,800 8.77 % 8.42 % Total debt 1,026,047 781,145 5.17 % 4.24 % Less: Unamortized discount and debt issuance costs 4,190 1,481 Less: Debt, current portion 23,786 19,259 7.28 % 7.02 % Debt, net of current portion $ 998,071 $ 760,405 5.12 % 4.17 % 2024 refinancing On April 30, 2024, we entered into the Third Amendment to Credit Agreement (the "Amendment"), by and among us, the lenders party thereto and Bank of America N.A., as administrative agent (the "Agent"). The Amendment amends the Amended and Restated Credit Agreement, dated as of October 30, 2020 (as previously amended, the "2020 Credit Agreement" and the 2020 Credit Agreement as amended by the Amendment, the “2024 Credit Agreement”), by and among us, the lenders from time-to-time party thereto and the Agent. The Amendment amends the 2020 Credit Agreement to, among other things, (a) refinance the existing $1.1 billion credit facilities under the 2020 Credit Agreement to provide for new credit facilities in the aggregate principal amount of $1.5 billion consisting of (i) a $700.0 million revolving credit facility (the “2024 Revolving Facility”) and (ii) a $800.0 million term loan facility (the “2024 Term Facility” and together with the 2024 Revolving Facility, the “2024 Credit Facilities”), (b) extend the maturity date to April 30, 2029, (c) modify the definition of Applicable Margin (as defined below) and (iv) modify certain negative and financial covenants to provide additional operational flexibility. Upon closing, we borrowed $800.0 million pursuant to the 2024 Term Facility and $208.2 million pursuant to the 2024 Revolving Facility and used the proceeds to repay the outstanding principal balances of the term loans under the 2020 Credit Agreement (the "2020 Term Facilities"), and repay $196.6 million of outstanding revolving credit loans under the 2020 Credit Agreement (the "2020 Revolving Facility"). Certain lenders of the 2024 Term Facility participated in the 2020 Term Facilities and the change in present value of our future cash flows to these lenders under the 2020 Term Facilities and under the 2024 Term Facility was less than 10%. Accordingly, we accounted for the refinancing event for these lenders as a debt modification. Certain lenders of the 2020 Term Facilities did not participate in the 2024 Term Facility. Accordingly, we accounted for the refinancing event for these lenders as a debt extinguishment. Certain lenders of the 2020 Revolving Facility participated in the 2024 Revolving Facility and provided increased borrowing capacities. Accordingly, we accounted for the refinancing event for these lenders as a debt modification. Certain lenders of the 2020 Revolving Facility did not participate in the 2024 Revolving Facility. Accordingly, we accounted for the refinancing event for these lenders as a debt extinguishment. We recorded an insignificant loss on debt extinguishment related to the write-off of debt discount and deferred financing costs for the portions of the 2020 Credit Agreement considered to be extinguished. This loss was recognized in the consolidated statements of comprehensive income within other income, net. In connection with our entry into the 2024 Credit Agreement, we paid $6.5 million in financing costs, of which $1.6 million were capitalized in other assets and, together with a portion of the unamortized deferred financing costs from the 2020 Credit Agreement and prior agreements, are being amortized into interest expense over the term of the new facility. As of June 30, 2024, deferred financing costs totaling $1.9 million were included in other assets on our consolidated balance sheets. We recorded aggregate financing costs of $3.6 million as a direct deduction from the carrying amount of our debt liability, which related to debt discount (fees paid to lenders) and debt issuance costs for the 2024 Term Facility. Summary of the 2024 Credit Facilities The 2024 Revolving Facility includes (i) a $50.0 million letter of credit subfacility, (ii) a $50.0 million swingline subfacility and (iii) a $150.0 million sublimit available for multicurrency borrowings. Under the 2024 Credit Facilities, dollar tranche revolving loans and term loans bear interest at a rate per annum equal to, at the option of the Company: (a) a base rate equal to the highest of (i) the Federal Funds Rate plus 0.50%, (ii) the prime rate announced by Bank of America, N.A., and (iii) Term SOFR plus 1.00% (the “Base Rate”), plus an applicable margin as specified in the 2024 Credit Agreement (the “Applicable Margin”); (b) Term SOFR plus the Applicable Margin; or (c) the Daily SOFR Rate plus the Applicable Margin. The Applicable Margin shall be adjusted quarterly, varies based on our net leverage ratio and varies based on whether the loan is a Base Rate Loan (0.375% to 1.500%), or a Term SOFR Loan/Daily SOFR Loan (1.375% to 2.500%). The 2024 Credit Agreement also provides for a commitment fee of between 0.250% and 0.500% of the unused commitment under the 2024 Revolving Facility depending on our net leverage ratio. Under the 2024 Credit Facilities, designated currency tranche revolving loans bear interest at a rate per annum equal to, at the option of the Company: (a) the Designated Currency Daily Rate (as defined in the 2024 Credit Agreement) plus the Applicable Margin; or (b) the Designated Currency Term Rate (as defined in the 2024 Credit Agreement) plus the Applicable Margin. The Applicable Margin shall be adjusted quarterly and varies based on our net leverage ratio for both Designated Currency Daily Rate Loans and Designated Currency Term Rate Loans (1.375% to 2.500%). We may prepay the 2024 Credit Agreement in whole or in part at any time without premium or penalty, other than customary breakage costs with respect to certain types of loans. Under the terms of the 2024 Credit Agreement, we are entitled on one or more occasion, subject to the satisfaction of certain conditions, to request an increase in the commitments under the 2024 Revolving Facility and/or request additional incremental term loans in the aggregate principal amount of up to the sum of (i) the greater of (A) $360.0 million and (B) 100% of EBITDA (as defined in the 2024 Credit Agreement), plus (ii) at our option, up to an amount such that the net leverage ratio shall be no greater than 3.50 to 1.00. The 2024 Credit Agreement contains various representations, warranties and affirmative, negative and financial covenants customary for financings of this type. Financial covenants include a net leverage ratio and an interest coverage ratio. At June 30, 2024, we were in compliance with our debt covenants under the 2024 Credit Facilities. Real estate loans In August 2020, we completed the purchase of our global headquarters facility. As part of the purchase price, we assumed the seller’s obligations under two senior secured notes with a then-aggregate outstanding principal amount of $61.1 million (collectively, the “Real Estate Loans”). The Real Estate Loans require periodic principal payments and the balance of the Real Estate Loans are due upon maturity in April 2038. At June 30, 2024, we were in compliance with our debt covenants under the Real Estate Loans. Other debt From time to time, we enter into third-party financing agreements for purchases of software and related services for our internal use. Generally, the agreements are non-interest-bearing notes requiring annual payments. Interest associated with the notes is imputed at the rate we would incur for amounts borrowed under our then-existing credit facility at the inception of the notes. The following table summarizes our currently effective supplier financing agreements as of June 30, 2024: (dollars in thousands) Term Number of First Annual Original Loan Effective dates of agreements (1) : December 2022 39 3 January 2023 $ 1,710 January 2023 36 3 April 2023 $ 2,491 April 2024 36 3 May 2024 $ 2,073 (1) Represent noncash investing and financing transactions during the periods indicated as we purchased software and services by assuming directly related liabilities. The changes in supplier financing obligations during the six months ended June 30, 2024, consisted of the following: (dollars in thousands) Total Balance at December 31, 2023 $ 2,800 Additions 2,073 Settlements (2,091) Balance at June 30, 2024 $ 2,782 As of June 30, 2024, the required annual maturities related to the 2024 Credit Facilities, the Real Estate Loans and our other debt were as follows: Years ending December 31, Annual 2024 - remaining $ 10,829 2025 23,875 2026 22,660 2027 22,166 2028 22,375 Thereafter 924,142 Total required maturities $ 1,026,047 |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives Instruments | 8. Derivative Instruments We generally use derivative instruments to manage our interest rate and foreign currency exchange risk. We currently have derivatives classified as cash flow hedges and net investment hedges. We do not enter into any derivatives for trading or speculative purposes. All of our derivative instruments are governed by International Swap Dealers Association, Inc. master agreements with our counterparties. As of June 30, 2024 and December 31, 2023, we have presented the fair value of our derivative instruments at the gross amounts in the condensed consolidated balance sheets as the gross fair values of our derivative instruments equaled their net fair values. Cash flow hedges We have entered into interest rate swap agreements, which effectively convert portions of our variable rate debt under the 2024 Credit Facilities to a fixed rate for the term of the swap agreements. We designated each of the interest rate swaps as cash flow hedges at the inception of the contracts. Our entry into the 2024 Credit Agreement in April 2024 did not affect our interest rate swap agreements, including their designation as cash flow hedges, as the 2024 Credit Agreement has substantially the same critical terms as the the 2020 Credit Agreement. As of June 30, 2024 and December 31, 2023, the aggregate notional values of the interest rate swaps were $935.0 million and $935.0 million, respectively. All of the contracts have maturities on or before October 2028. We have entered into foreign currency forward contracts to hedge revenues denominated in the Canadian Dollar ("CAD") against changes in the exchange rate with the United States Dollar ("USD"). We designated each of these foreign currency forward contracts as cash flow hedges at the inception of the contracts. As of June 30, 2024 and December 31, 2023, the aggregate notional values of the foreign currency forward contracts designated as cash flow hedges that we held to buy USD in exchange for Canadian Dollars were $32.1 million CAD and $29.9 million CAD, respectively. All of the contracts have maturities of 12 months or less. Net investment hedges We have entered into foreign currency forward contracts to hedge a portion of the foreign currency exposure that arises on translation of our investments denominated in British Pounds ("GBP") into USD. We designated each of these foreign currency forward contracts as net investment hedges at the inception of the contracts. As of June 30, 2024 and December 31, 2023, the aggregate notional values of the foreign currency forward contracts designated as net investment hedges to reduce the volatility of the U.S. dollar value of a portion of our GBP-denominated investments was £14.0 million and £13.2 million, respectively. The fair values of our derivative instruments were as follows as of: Asset derivatives Liability derivatives (dollars in thousands) Balance sheet location June 30, December 31, Balance sheet location June 30, December 31, Derivative instruments designated as hedging instruments: Interest rate swaps, current portion Prepaid expenses $ 7,362 $ 16,198 Accrued expenses $ — $ — Foreign currency forward contracts, current portion Prepaid expenses and other current assets 252 — Accrued expenses 56 536 Interest rate swaps, long-term Other assets 6,920 — Other liabilities — 5,004 Total derivative instruments designated as hedging instruments $ 14,534 $ 16,198 $ 56 $ 5,540 The effects of derivative instruments in cash flow and net investment hedging relationships were as follows: Gain (loss) recognized in accumulated other comprehensive income (loss) as of Location of gain (loss) reclassified from accumulated other comprehensive income (loss) into income (loss) Gain reclassified from accumulated other comprehensive income (loss) into income (loss) (dollars in thousands) June 30, Three months ended June 30, 2024 Six months ended June 30, 2024 Cash Flow Hedges Interest rate swaps $ 14,282 Interest expense $ 5,456 $ 10,929 Foreign currency forward contracts $ 252 Revenue $ 129 $ 163 Net Investment Hedges Foreign currency forward contracts $ (56) $ — $ — June 30, Three months ended June 30, 2023 Six months ended June 30, 2023 Cash Flow Hedges Interest rate swaps $ 25,204 Interest expense $ 5,083 $ 9,582 Foreign currency forward contracts $ (292) Revenue $ 109 $ 234 Net Investment Hedges Foreign currency forward contracts $ (401) $ — $ — Our policy requires that derivatives used for hedging purposes be designated and effective as a hedge of the identified risk exposure at the inception of the contract. Accumulated other comprehensive income (loss) includes unrealized gains or losses from the change in fair value measurement of our derivative instruments each reporting period and the related income tax expense or benefit. Excluding net investment hedges, changes in the fair value measurements of the derivative instruments and the related income tax expense or benefit are reflected as adjustments to accumulated other comprehensive income (loss) until the actual hedged expense is incurred or until the hedge is terminated at which point the unrealized gain (loss) and related tax effects are reclassified from accumulated other comprehensive income (loss) to current earnings. For net investment hedges, changes in the fair value measurements of the derivative instruments and the related income tax expense or benefit are reflected as adjustments to translation adjustment, a component of accumulated other comprehensive income (loss), and recognized in earnings only when the hedged GBP investment is liquidated. The estimated accumulated other comprehensive income as of June 30, 2024 that is expected to be reclassified into earnings within the next twelve months is $11.6 million. There were no ineffective portions of our interest rate swap or foreign currency forward derivatives during the six months ended June 30, 2024 and 2023. See Note 11 to these unaudited, condensed consolidated financial statements for a summary of the changes in accumulated other comprehensive income (loss) by component. We classify cash flows related to derivative instruments as operating activities in the condensed consolidated statements of cash flows. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies Leases We have operating leases for corporate offices, subleased offices and certain equipment and furniture. As of June 30, 2024, we did not have any operating leases that had not yet commenced. The following table summarizes the components of our lease expense: Three months ended June 30, Six months ended June 30, (dollars in thousands) 2024 2023 2024 2023 Operating lease cost (1) $ 1,625 $ 2,304 $ 3,611 $ 4,689 Variable lease cost 299 395 612 827 Sublease income (906) (854) (1,604) (1,665) Net lease cost $ 1,018 $ 1,845 $ 2,619 $ 3,851 (1) Includes short-term lease costs, which were immaterial. Maturities of our operating lease liabilities as of June 30, 2024 were as follows: Years ending December 31, Operating leases 2024 - remaining $ 3,376 2025 6,258 2026 6,106 2027 6,207 2028 6,101 Thereafter 20,689 Total lease payments 48,737 Less: Amount representing interest 7,560 Present value of future payments $ 41,177 Other commitments The term loans under the 2024 Credit Facilities require periodic principal payments. The balance of the term loans and any amounts drawn on the revolving credit loans are due upon maturity of the 2024 Credit Facilities in April 2029. The Real Estate Loans also require periodic principal payments and the balance of the Real Estate Loans are due upon maturity in April 2038. We have contractual obligations for third-party technology used in our solutions and for other services we purchase as part of our normal operations. In certain cases, these arrangements require a minimum annual purchase commitment by us. As of June 30, 2024, the remaining aggregate minimum purchase commitment under these arrangements was approximately $228.0 million through 2029. Solution and service indemnifications In the ordinary course of business, we provide certain indemnifications of varying scope to customers against claims of intellectual property infringement made by third parties arising from the use of our solutions or services. We have not identified any losses that might be covered by these indemnifications. Legal proceedings We are subject to legal proceedings and claims that arise in the ordinary course of business, as well as certain other non-ordinary course proceedings, claims and investigations, as described below. We make a provision for a loss contingency when it is both probable that a material liability has been incurred and the amount of the loss can be reasonably estimated. If only a range of estimated losses can be determined, we accrue an amount within the range that, in our judgment, reflects the most likely outcome; if none of the estimates within that range is a better estimate than any other amount, we accrue the low end of the range. For proceedings in which an unfavorable outcome is reasonably possible but not probable and an estimate of the loss or range of losses arising from the proceeding can be made, we disclose such an estimate, if material. If such a loss or range of losses is not reasonably estimable, we disclose that fact. We review any such loss contingency provisions at least quarterly and adjust them to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular case. We recognize insurance recoveries, if any, when they are probable of receipt. All associated costs due to third-party service providers and consultants, including legal fees, are expensed as incurred. Legal proceedings are inherently unpredictable. However, we believe that we have valid defenses with respect to the legal matters pending or threatened against us and intend to defend ourselves vigorously against all claims asserted. It is possible that our consolidated financial position, results of operations or cash flows could be materially negatively affected in any particular period by an unfavorable resolution of one or more of such legal proceedings. Security incident As previously disclosed, we are subject to risks and uncertainties as a result of a ransomware attack against us in May 2020 in which a cybercriminal removed a copy of a subset of data from our self-hosted environment (the "Security Incident"). Based on the nature of the Security Incident, our research and third party (including law enforcement) investigation, we do not believe that any data went beyond the cybercriminal, has been misused, or has been disseminated or otherwise made available publicly. Our investigation into the Security Incident remains ongoing. As a result of the Security Incident, we are currently subject to certain legal proceedings, claims and investigations, as discussed below, and could be the subject of additional legal proceedings, claims, inquiries and investigations in the future that might result in adverse judgments, settlements, fines, penalties or other resolution. To limit our exposure to losses related to claims against us, including data breaches such as the Security Incident, we maintain $50 million of insurance above a $250 thousand deductible payable by us. As noted below, this coverage reduced our fina ncial exposure related to the Security Incident in prior years. We recorded expenses and offsetting insurance recoveries related to the Security Incident as follows: Three months ended June 30, Six months ended June 30, (dollars in thousands) 2024 2023 2024 2023 Gross expense $ 1,822 $ 26,777 $ 12,145 $ 44,560 Offsetting insurance recoveries — — — — Net expense $ 1,822 $ 26,777 $ 12,145 $ 44,560 The following summarizes our cumulative expenses, insurance recoveries recognized and insurance recoveries paid as of: (dollars in thousands) June 30, December 31, Cumulative gross expense $ 173,576 $ 161,431 Cumulative offsetting insurance recoveries recognized (50,000) (50,000) Cumulative net expense $ 123,576 $ 111,431 Cumulative offsetting insurance recoveries paid $ (50,000) $ (50,000) Recorded expenses have consisted primarily of payments to third-party service providers and consultants, including legal fees, settlement of the previously disclosed SEC investigation, multi-state Attorneys General investigation, and Attorney General of the State of California investigation (discussed below), settlements of customer claims and accruals for certain loss contingencies. Not included in the expenses discussed above were costs associated with enhancements to our cybersecurity program. We present expenses and insurance recoveries related to the Security Incident in general and administrative expense on our unaudited, condensed consolidated statements of comprehensive income (loss) and as operating activities on our unaudited, condensed consolidated statements of cash flows. Total costs related to the Security Incident exceeded the limit of our insurance coverage during the first quarter of 2022. We expect to continue to experience significant expenses related to our response to the Security Incident, resolution of legal proceedings, claims and investigations, including those discussed below, and our efforts to further enhance our cybersecurity measures. For the three and six months ended June 30, 2024, we incurred net pre-tax expenses of $1.8 million and $12.1 million, respectively, related to the Security Incident, which included $1.8 million and $5.1 million, respectively, for ongoing legal fees and additional accruals for loss contingencies of $0.0 million and $7.0 million, respectively. During the six months ended June 30, 2024, we had net cash outlays of $5.8 million related to the Security Incident for ongoing legal fees. In line with our policy, legal fees are expensed as incurred. For full year 2024, we currently expect pre-tax expenses of approximately $5.0 million to $10.0 million and cash outlays of approximately $8.0 million to $13.0 million for ongoing legal fees related to the Security Incident. Not included in these ranges are our previous settlements or current accruals for loss contingencies related to the matters discussed below. As of June 30, 2024, we have recorded approximately $8.5 million in aggregate liabilities for loss contingencies, which included $6.8 million for our settlement with the Attorney General of the State of California on June 13, 2024, and other accruals based primarily on recent negotiations with certain customers related to the Security Incident that we believed we could reasonably estimate in accordance with our loss contingency procedures described above. Our liabilities for loss contingencies are recorded in accrued expenses and other current liabilities on our unaudited, condensed consolidated balance sheets. It is reasonably possible that our estimated actual losses may change in the near term for those matters and be materially in excess of the amounts accrued, but we are unable at this time to reasonably estimate the possible additional loss. There are other Security Incident-related matters, including customer claims, customer constituent class actions and governmental investigations, for which we have not recorded a liability for a loss contingency as of June 30, 2024 because we are unable at this time to reasonably estimate the possible loss or range of loss. Each of these matters could, separately or in the aggregate, result in an adverse judgment, settlement, fine, penalty or other resolution, the amount, scope and timing of which we are currently unable to predict, but could have a material adverse impact on our results of operations, cash flows or financial condition. Customer claims. To date, we have received approximately 260 specific requests from customers for reimbursement of expenses incurred by them related to the Security Incident, all of which have been fully resolved and closed or are inactive and are considered by us to have been abandoned by the customers. We have also received approximately 400 reservations of the right to seek expense recovery in the future from customers or their attorneys in the U.S., U.K. and Canada related to the Security Incident, none of which resulted in claims submitted to us and are considered by us to have been abandoned by the customers. We have also received notices of proposed claims on behalf of a number of U.K. data subjects, which we are reviewing. In addition, insurance companies representing various customers’ interests through subrogation claims have contacted us, and certain insurance companies have filed subrogation claims in court, of which three cases remain active and unresolved. Customer constituent class actions. Presently, we are a defendant in putative consumer class action cases in U.S. federal courts (which have been consolidated under multi district litigation to a single federal court) and in Canadian courts alleging harm from the Security Incident. The plaintiffs in these cases, who purport to represent various classes of individual constituents of our customers, generally claim to have been harmed by alleged actions and/or omissions by us in connection with the Security Incident and assert a variety of common law and statutory claims seeking monetary damages, injunctive relief, costs and attorneys’ fees and other related relief. Lawsuits that are putative class actions require a plaintiff to satisfy a number of procedural requirements before proceeding to trial. These requirements include, among others, demonstration to a court that the law proscribes in some manner our activities, the making of factual allegations sufficient to suggest that our activities exceeded the limits of the law and a determination by the court—known as class certification—that the law permits a group of individuals to pursue the case together as a class. If these procedural requirements are not met, the lawsuit cannot proceed as a class action and the plaintiff may lose the financial incentive to proceed with the case. We are currently engaged in court proceedings to determine whether this will proceed as a class action. Frequently, a court’s determination as to these procedural requirements is subject to appeal to a higher court. As a result of these uncertainties, we may be unable to determine the probability of loss until, or after, a court has finally determined that a plaintiff has satisfied the applicable class action procedural requirements. Furthermore, for putative class actions, it is often not possible to reasonably estimate the possible loss or a range of loss amounts, even where we have determined that a loss is reasonably possible. Generally, class actions involve a large number of people and raise complex legal and factual issues that result in uncertainty as to their outcome and, ultimately, making it difficult for us to estimate the amount of damages that a plaintiff might successfully prove. This analysis is further complicated by the fact that the plaintiffs lack contractual privity with us. On May 14, 2024, the United States District Court for the District of South Carolina (the "Court") issued a memorandum opinion and order (1) denying the multi district litigation plaintiffs' motion for class certification because of the plaintiffs' failure to meet their burden of proof as to ascertainability, (2) granting our motion to exclude the multi district litigation plaintiffs' expert on the issue of ascertainability, and (3) denying the multi district litigation plaintiffs' motion to exclude our expert on the issue of ascertainability. Further, the Court denied as moot all other pending motions. On May 28, 2024, the plaintiffs filed a petition for permission to appeal under Rule 23(f) of the Federal Rules of Civil Procedure with the Fourth Circuit Court of Appeals (the “Fourth Circuit”) and we subsequently filed an opposition to such petition. On July 30, 2024, the Fourth Circuit denied the plaintiffs' petition. This litigation remains ongoing. Governmental investigations. As previously disclosed, we are subject to an ongoing investigation by the U.S. Department of Health and Human Services. We also responded to inquiries from the Office of the Australian Information Commissioner in September 2020 and the Office of the Privacy Commissioner of Canada in October 2020. As previously disclosed, on June 13, 2024, we agreed to a Final Judgment and Permanent Injunction with the Attorney General of the State of California (the "Final Judgment") relating to the Security Incident. This settlement fully resolved the last remaining U.S. state attorney general investigation into the Security Incident. Under the terms of the settlement, we agreed to comply with applicable laws; not to make misleading statements related to our data protection, privacy, security, confidentiality, integrity, breach notification requirements, and similar matters; and to implement and improve certain cybersecurity programs and tools. The terms of the settlement with California are generally consistent with those to which we agreed in settling with the other 49 state Attorneys General and the District of Columbia on October 5, 2023, as discussed below. As part of the settlement, we also agreed to pay a total of $6.8 million to the State of California. This amount was fully accrued as a contingent liability in the Company's financial statements as of March 31, 2024 and June 30, 2024, and subsequently paid in the third quarter of 2024. Nothing contained in the Final Judgment is intended to be, and shall not in any event be construed or deemed to be, an admission or concession or evidence of any liability or wrongdoing whatsoever on the part of Blackbaud or any fact or violation of law, rule, or regulation. For more information, see the Final Judgment and Permanent Injunction of the State of California, County of San Diego that was furnished as Exhibit 99.1 to our Current Report on Form 8-K filed with the SEC on June 14, 2024. On May 20, 2024, the U.S. Federal Trade Commission (the "FTC") finalized an Order (the “FTC Order”) evidencing its settlement with us in connection with the Security Incident. As part of the FTC Order, we were not fined and were not otherwise required to make any payment. Furthermore, we agreed to the FTC Order without admitting or denying any of the FTC’s allegations, except as expressly stated otherwise in the FTC Order. The settlement described in the FTC Order fully resolved the FTC investigation. For more information, see the form of proposed order that was furnished as Exhibit 99.2 to our Current Report on Form 8-K filed with the SEC on February 2, 2024 and is identical in substance to the final FTC Order, and in Note 11 to our audited consolidated financial statements contained in our Annual Report on Form 10-K filed with the SEC on February 21, 2024. As previously disclosed, on October 5, 2023, we entered into separate, substantially similar Administrative Orders with each of 49 state Attorneys General and the District of Columbia relating to the Security Incident which fully resolved the previously disclosed multi-state Civil Investigative Demand and the separate Civil Investigative Demand from the Office of the Indiana Attorney General relating to the Security Incident. On March 9, 2023, we reached a settlement with the SEC in connection with the Security Incident that fully resolved the previously disclosed SEC investigation of the Security Incident. On September 28, 2021, the Information Commissioner’s Office in the United Kingdom under the U.K. Data Protection Act 2018 notified us that it has closed its investigation of the Security Incident. On September 24, 2021, we received notice from the Spanish Data Protection Authority that it has concluded its investigation of the Security Incident. On January 15, 2021, we were notified by the Data Protection Commission of Ireland that it has concluded its investigation of the Security Incident. For more information about these completed government investigations and related actions, see Note 11 to our audited consolidated financial statements contained in our Annual Report on Form 10-K filed with the SEC on February 21, 2024. We continue to cooperate with all ongoing investigations, which include various requests for documents, policies, narratives and communications, as well as requests to interview or depose various Company-related personnel. As noted above, each of these separate governmental investigations could result in adverse judgments, settlements, fines, penalties or other resolution, the amount, scope and timing of which we are currently unable to predict, but could have a material adverse impact on our results of operations, cash flows or financial condition. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes Our income tax provision (benefit) and effective income tax rates, including the effects of period-specific events, were: Three months ended June 30, Six months ended June 30, (dollars in thousands) 2024 2023 2024 2023 Income tax provision (benefit) $ 7,883 $ (10,200) $ 6,427 $ (14,101) Effective income tax rate 26.6 % 126.0 % 19.2 % 52.8 % The change in our effective income tax rate for the three and six months ended June 30, 2024, when compared to the same periods in 2023 were largely driven by prior year pre-tax losses versus current year pre-tax income. Additionally, the 2024 periods were favorably impacted by benefits attributable to stock-based compensation and research and development tax credits whereas stock-based compensation negatively impacted our effective income tax rates for the 2023 periods. Lastly, the 2023 periods were negatively impacted by non-deductible accruals related to security incident, which have impacted the 2024 periods to a much lesser degree. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Stockholders' Equity | 11. Stockholders' Equity Stock repurchase program Under our stock repurchase program, we are authorized to repurchase shares from time to time in accordance with applicable laws both on the open market, including under trading plans established pursuant to Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, and in privately negotiated transactions. The timing and amount of repurchases depends on several factors, including market and business conditions, the trading price of our common stock and the nature of other investment opportunities. The repurchase program does not have an expiration date and may be limited, suspended or discontinued at any time without prior notice. Under the 2024 Credit Agreement, we have restrictions on our ability to repurchase shares of our common stock, which are summarized on page 47 We account for purchases of treasury stock under the cost method. On January 17, 2024, our Board of Directors reauthorized, expanded and replenished our stock repurchase program by expanding the total capacity under the program from $250.0 million to $500.0 million available for repurchases. In March 2024, we entered into an issuer forward repurchase transaction with a large financial institution to repurchase an aggregate $200 million of shares of our common stock (the additional shares of our common stock to us or, under certain circumstances, we may be required to deliver a cash payment or shares of our common stock to the financial institution, with the method of settlement at our election. The final settlement of the ASR Transaction is scheduled to occur by the fourth quarter of 2024, unless settled earlier at the election of the financial institution. The difference of $52.2 million between the prepayment of $200 million and the value of the shares repurchased on the ASR Transaction date represents an unsettled prepaid forward contract indexed to our common stock and met all of the applicable criteria for equity classification; therefore, it was not accounted for as a derivative instrument as of June 30, 2024. Because of our ability to settle in shares, the $52.2 million prepaid forward contract was classified as a reduction to additional paid-in capital within our unaudited, condensed consolidated statement of stockholders' equity. We funded the ASR Transaction prepayment with borrowings pursuant to a revolving credit loan under the 2020 Credit Agreement. During the three months ended June 30, 2024, we did not repurchase any shares. During the six months ended June 30, 2024, we repurchased an aggregate of 2,954,211 shares for $262.6 million, including the initial delivery of shares repurchased pursuant to the ASR Transaction. The remaining amount available to purchase stock under the approved stock repurchase program was $259.7 million as of June 30, 2024. On July 16, 2024, our Board of Directors reauthorized, expanded and replenished our stock repurchase program by expanding the total capacity under the program from $500.0 million to $800.0 million available for repurchases. As of July 16, 2024, the amount available to purchase stock under the Company's repurchase program was $800.0 million. See Note 13 to these unaudited, condensed financial statements for additional information. Changes in accumulated other comprehensive income (loss) by component The changes in accumulated other comprehensive income (loss) by component, consisted of the following: Three months ended June 30, Six months ended June 30, (in thousands) 2024 2023 2024 2023 Accumulated other comprehensive income (loss), beginning of period $ 1,222 $ 404 $ (1,688) $ 8,938 By component: Gains and losses on cash flow hedges: Accumulated other comprehensive income balance, beginning of period $ 12,253 $ 13,141 $ 8,158 $ 23,833 Other comprehensive income before reclassifications, net of tax effects of $(974), $(3,238), $(3,940) and $(672) 2,731 9,231 10,852 1,942 Amounts reclassified from accumulated other comprehensive income (5,585) (5,192) (11,092) (9,816) Tax expense included in provision for income taxes 1,468 1,344 2,949 2,565 Total amounts reclassified from accumulated other comprehensive income (4,117) (3,848) (8,143) (7,251) Net current-period other comprehensive (loss) income (1,386) 5,383 2,709 (5,309) Accumulated other comprehensive income balance, end of period $ 10,867 $ 18,524 $ 10,867 $ 18,524 Foreign currency translation adjustment: Accumulated other comprehensive loss balance, beginning of period $ (11,031) $ (12,737) $ (9,846) $ (14,895) Translation adjustment 339 3,055 (846) 5,213 Accumulated other comprehensive loss balance, end of period (10,692) (9,682) (10,692) (9,682) Accumulated other comprehensive income, end of period $ 175 $ 8,842 $ 175 $ 8,842 |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | 12. Revenue Recognition Transaction price allocated to the remaining performance obligations As of June 30, 2024, approximately $1.3 billion of revenue under contract is expected to be recognized from remaining performance obligations. We expect to recognize revenue on approximately 55% of these remaining performance obligations over the next 12 months, with the remainder recognized thereafter. We applied the practical expedient in ASC 606-10-50-14 and have excluded the value of unsatisfied performance obligations for contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed (transactional revenue). Contract balances Our contract assets as of June 30, 2024 and December 31, 2023 were insignificant. Our closing balances of deferred revenue were as follows: (in thousands) June 30, December 31, Total deferred revenue $ 429,413 $ 394,927 The increase in deferred revenue during the six months ended June 30, 2024 was primarily due to a seasonal increase in customer contract renewals. Historically, due to the timing of customer budget cycles, we have an increase in customer contract renewals at or near the beginning of our third quarter. Generally, our lowest balance of deferred revenue during the year is at the end of our first quarter. The amount of revenue recognized during the six months ended June 30, 2024 that was included in the deferred reven ue balance at the beginning of the period was approximately $279 million. The amount of revenue recognized during the six months ended June 30, 2024 from performance obligations satisfied in prior periods was insignificant . Disaggregation of revenue We sell our cloud solutions and related services in three primary geographical markets: to customers in the United States, to customers in the United Kingdom and to customers located in other countries. The following table presents our revenue by geographic area based on the address of our customers: Three months ended June 30, Six months ended June 30, (dollars in thousands) 2024 2023 2024 2023 United States $ 241,831 $ 228,744 $ 479,940 $ 450,413 United Kingdom 29,980 28,234 56,109 54,282 Other countries 15,475 14,064 30,487 28,100 Total revenue $ 287,286 $ 271,042 $ 566,536 $ 532,795 The Social Sector and Corporate Sector market groups comprised our go-to-market organizations as of June 30, 2024. The following is a description of each market group as of that date: • The Social Sector market group focuses on sales to customers and prospects in the social sector, such as nonprofits, foundations, education institutions, healthcare organizations and other not-for-profit entities globally, and includes JustGiving; and • The Corporate Sector market group focuses on sales to customers and prospects in the corporate sector globally, and includes EVERFI and YourCause. The following table presents our revenue by market group: Three months ended June 30, Six months ended June 30, (dollars in thousands) 2024 2023 2024 2023 Social Sector $ 252,164 $ 232,381 $ 496,608 $ 457,278 Corporate Sector 35,122 38,661 69,928 75,517 Total revenue $ 287,286 $ 271,042 $ 566,536 $ 532,795 The following table presents our recurring revenue by type: Three months ended June 30, Six months ended June 30, (dollars in thousands) 2024 2023 2024 2023 Contractual recurring $ 193,542 $ 181,235 $ 384,397 $ 358,838 Transactional recurring 87,834 81,155 168,497 156,300 Total recurring revenue $ 281,376 $ 262,390 $ 552,894 $ 515,138 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | 13. Subsequent Events Stock Repurchase Program On July 16, 2024, our Board of Directors reauthorized, expanded and replenished our existing stock repurchase program. The expansion raised the total capacity under the stock repurchase program from $500.0 million to $800.0 million available for repurchases. The program does not have an expiration date. From January 1, 2024 and prior to the replenishment on July 16, 2024, we repurchased 2,954,211 shares of our stock for $262.6 million under the stock repurchase program, representing approximately 5.5% of our common stock outstanding as of December 31, 2023. As of July 16, 2024, the amount available to purchase stock under our repurchase program was $800.0 million. Repurchases by us will be subject to available liquidity, general market and economic conditions, alternate uses for the capital and other factors. Stock repurchases may be made from time to time in open market transactions, in private transactions or otherwise in accordance with applicable securities laws and regulations and other legal requirements, including compliance with our finance agreements. There is no minimum number of shares that we are required to repurchase and the repurchase program may be suspended or discontinued at any time without prior notice. All shares purchased will be held in our treasury for possible future use. We anticipate funding any stock repurchases from its cash flow from operations, though we may fund repurchases through borrowings or otherwise in our discretion. Additional information regarding the stock repurchase program reauthorization is contained in our Current Report on Form 8-K filed with the SEC on July 18, 2024. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||||
Net income (loss) | $ 21,804 | $ 5,246 | $ 2,105 | $ (14,701) | $ 27,050 | $ (12,596) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | The following table provides information about trading arrangements adopted or terminated by certain of our officers and directors during the three months ended June 30, 2024. Trading arrangement (1) Aggregate Name and Title Action Date of Action Plan Plan Plan Rule 10b5-1 Non-Rule 10b5-1 Michael P. Gianoni Chief Executive Officer, President and Vice Chairman of the Board Termination 4/10/24 2/26/24 8/09/24 Six X 50,000 Kevin R. McDearis Executive Vice President and Chief Technology Officer Adoption 5/24/24 8/30/24 2/28/25 Six X 28,195 (1) An SEC "Rule 10b5-1(c) trading arrangement" is a trading arrangement made by a person through entering into a binding contract, verbal instruction or adoption of a written plan prior to becoming aware of material non-public information. The contract, instruction or written plan must specify the amount, price and date of securities to be sold; include the means for determining the amount, price and date of the sale or sales; and not permit the person to have subsequent influence over the sale or sales. The compliant plan must be entered into and operated in good faith, include a specified cooling off period, be certified by an authorized officer and is restricted from having multiple or overlapping plans. A non-compliant trading arrangement, or a "non-Rule 10b5-1 trading arrangement," is a trading arrangement that has similar requirements to a Rule 10b5-1(c) trading arrangement except that it must be in written form and does not require a cooling off period or certification of an authorized officer and there is no restriction from having multiple or overlapping plans. None of our officers or directors adopted or terminated a non-Rule 10b5-1 trading arrangement during the three months ended June 30, 2024. |
Non-Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Michael P. Gianoni [Member] | |
Trading Arrangements, by Individual | |
Name | Michael P. Gianoni |
Title | Chief Executive Officer, President and Vice Chairman of the Board |
Rule 10b5-1 Arrangement Terminated | true |
Termination Date | 4/10/24 |
Arrangement Duration | 6 months 3 days |
Aggregate Available | 50,000 |
Kevin R. McDearis [Member] | |
Trading Arrangements, by Individual | |
Name | Kevin R. McDearis |
Title | Executive Vice President and Chief Technology Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | 5/24/24 |
Arrangement Duration | 6 months 3 days |
Aggregate Available | 28,195 |
Basis of Presentation (Policy)
Basis of Presentation (Policy) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Unaudited interim consolidated financial statements | Unaudited condensed consolidated interim financial statements The accompanying condensed consolidated interim financial statements have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission ("SEC") for interim financial reporting. These condensed consolidated statements are unaudited and, in the opinion of management, include all adjustments (consisting of normal recurring adjustments and accruals) necessary to state fairly the consolidated balance sheets, consolidated statements of comprehensive income, consolidated statements of cash flows and consolidated statements of stockholders’ equity, for the periods presented in accordance with accounting principles generally accepted in the United States ("U.S.") ("GAAP"). The condensed consolidated balance sheet at December 31, 2023 has been derived from the audited consolidated financial statements at that date. Operating results and cash flows for the six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2024, or any other future period. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been omitted in accordance with the rules and regulations for interim reporting of the SEC. These unaudited, condensed consolidated interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023, and other forms filed with the SEC from time to time. |
Basis of consolidation | Basis of consolidation The unaudited, condensed consolidated financial statements include the accounts of Blackbaud, Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Reportable segment | Reportable segment We report our operating results and financial information in one operating and reportable segment. Our chief operating decision maker uses consolidated financial information to make operating decisions, assess financial performance and allocate resources. Our chief operating decision maker is our chief executive officer. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. On an ongoing basis, we reconsider and evaluate our estimates and assumptions, including those that impact revenue recognition, long-lived and intangible assets, income taxes, business combinations, stock-based compensation, capitalization of software and content development costs, our allowances for credit losses and sales returns, costs of obtaining contracts, valuation of derivative instruments, loss contingencies and insurance recoveries, among others. Changes in the facts or circumstances underlying these estimates could result in material changes and actual results could materially differ from these estimates. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings (loss) per share: Three months ended June 30, Six months ended June 30, (dollars in thousands, except per share amounts) 2024 2023 2024 2023 Numerator: Net income (loss) $ 21,804 $ 2,105 $ 27,050 $ (12,596) Denominator: Weighted average common shares 50,747,337 52,642,411 51,399,853 52,389,112 Add effect of dilutive securities: Restricted stock and units 930,081 1,000,713 972,074 — Weighted average common shares assuming dilution 51,677,418 53,643,124 52,371,927 52,389,112 Earnings (loss) per share Basic $ 0.43 $ 0.04 $ 0.53 $ (0.24) Diluted $ 0.42 $ 0.04 $ 0.52 $ (0.24) Anti-dilutive shares excluded from calculations of diluted earnings (loss) per share 12,367 9,487 1,023,093 1,151,974 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Financial assets and liabilities that are measured at fair value on a recurring basis consisted of the following, as of the dates indicated below: Fair value measurement using (dollars in thousands) Quoted Prices in Active Markets for Identical Assets and Liabilities Significant Other Observable Inputs Significant Unobservable Inputs Total Fair value as of June 30, 2024 Financial assets: Interest rate swaps $ — $ 14,282 $ — $ 14,282 Foreign currency forward contracts — 252 — 252 Total financial assets $ — $ 14,534 $ — $ 14,534 Fair value as of June 30, 2024 Financial liabilities: Foreign currency forward contracts $ — $ 56 $ — $ 56 Total financial liabilities $ — $ 56 $ — $ 56 Fair value as of December 31, 2023 Financial assets: Interest rate swaps $ — $ 16,198 $ — $ 16,198 Total financial assets $ — $ 16,198 $ — $ 16,198 Fair value as of December 31, 2023 Financial liabilities: Interest rate swaps $ — $ 5,004 $ — $ 5,004 Foreign currency forward contracts — 536 — 536 Contingent consideration obligations — — 1,403 1,403 Total financial liabilities $ — $ 5,540 $ 1,403 $ 6,943 |
Consolidated Financial Statem_2
Consolidated Financial Statement Details (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Components of Restricted Cash | Restricted cash (dollars in thousands) June 30, December 31, Restricted cash due to customers $ 799,429 $ 695,489 Real estate escrow balances and other 1,241 1,517 Total restricted cash $ 800,670 $ 697,006 |
Components of Prepaid Expenses and Other Assets | Prepaid expenses and other assets (dollars in thousands) June 30, December 31, Costs of obtaining contracts (1)(2) $ 60,680 $ 62,377 Prepaid software maintenance and subscriptions (3) 35,600 35,169 Derivative instruments 14,534 16,198 Implementation costs for cloud computing arrangements, net (4)(5) 10,262 9,259 Prepaid insurance 7,078 3,940 Unbilled accounts receivable 5,789 5,615 Equity method investment (6) 5,029 — Taxes, prepaid and receivable 5,549 3,418 Other assets 16,554 14,346 Total prepaid expenses and other assets 161,075 150,322 Less: Long-term portion 68,785 51,037 Prepaid expenses and other current assets $ 92,290 $ 99,285 (1) Amortization expense from costs of obtaining contracts was $4.9 million and $9.7 million for the three and six months ended June 30, 2024, respectively, and $8.1 million and $16.4 million for the three and six months ended June 30, 2023, respectively. (2) The current portion of costs of obtaining contracts as of June 30, 2024 and December 31, 2023 was $19.6 million and $25.3 million, respectively. (3) The current portion of prepaid software maintenance and subscriptions as of June 30, 2024 and December 31, 2023 was $32.1 million and $32.4 million, respectively. (4) These costs primarily relate to the multi-year implementations of our new global enterprise resource planning, customer relationship management systems and other cloud-based systems. (5) Amortization expense from capitalized cloud computing implementation costs was $0.7 million and insignificant for the three months ended June 30, 2024 and 2023, respectively, and $1.4 million and $1.1 million for the six months ended June 30, 2024 and 2023, respectively. Accumulated amortization for these costs was $9.1 million and $7.7 million as of June 30, 2024 and December 31, 2023, respectively. (6) Represents a strategic investment that did not result in Blackbaud having significant influence over the investee. |
Components of Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities (dollars in thousands) June 30, December 31, Accrued legal costs (1) $ 10,473 $ 3,659 Taxes payable 10,428 21,282 Customer credit balances 7,631 10,238 Operating lease liabilities, current portion 4,887 6,701 Accrued commissions and salaries 2,995 4,413 Accrued vacation costs 2,594 2,452 Accrued health care costs 2,230 3,865 Accrued transaction-based costs related to payments services 1,934 4,323 Derivative instruments 56 5,540 Contingent consideration liability — 1,403 Other liabilities 12,816 10,704 Total accrued expenses and other liabilities 56,044 74,580 Less: Long-term portion 4,362 10,258 Accrued expenses and other current liabilities $ 51,682 $ 64,322 (1) All accrued legal costs are classified as current. See Note 9 to these unaudited, condensed consolidated financial statements for additional information about our loss contingency accruals and other legal expenses. |
Components of Other Income and Expense | Other income, net Three months ended June 30, Six months ended June 30, (dollars in thousands) 2024 2023 2024 2023 Interest income $ 2,815 $ 2,308 $ 4,863 $ 3,544 Currency revaluation losses (380) (535) (97) (779) Other income, net 875 1,005 1,891 2,020 Other income, net $ 3,310 $ 2,778 $ 6,657 $ 4,785 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Summary of Debt | The following table summarizes our debt balances and the related weighted average effective interest rates, which includes the effect of interest rate swap agreements. Debt balance at Weighted average (dollars in thousands) June 30, December 31, June 30, December 31, Credit facility: Revolving credit loans $ 167,300 $ 114,100 7.78 % 7.52 % Term loans 800,000 607,500 4.61 % 3.51 % Real estate loans 55,965 56,745 5.23 % 5.22 % Other debt 2,782 2,800 8.77 % 8.42 % Total debt 1,026,047 781,145 5.17 % 4.24 % Less: Unamortized discount and debt issuance costs 4,190 1,481 Less: Debt, current portion 23,786 19,259 7.28 % 7.02 % Debt, net of current portion $ 998,071 $ 760,405 5.12 % 4.17 % |
Summary of Currently Effective Supplier Financing Agreements | The following table summarizes our currently effective supplier financing agreements as of June 30, 2024: (dollars in thousands) Term Number of First Annual Original Loan Effective dates of agreements (1) : December 2022 39 3 January 2023 $ 1,710 January 2023 36 3 April 2023 $ 2,491 April 2024 36 3 May 2024 $ 2,073 (1) Represent noncash investing and financing transactions during the periods indicated as we purchased software and services by assuming directly related liabilities. |
Changes in Supplier Financing Obligations | The changes in supplier financing obligations during the six months ended June 30, 2024, consisted of the following: (dollars in thousands) Total Balance at December 31, 2023 $ 2,800 Additions 2,073 Settlements (2,091) Balance at June 30, 2024 $ 2,782 |
Annual Maturities Related to Credit Facility, Real Estate Loans and other debt | As of June 30, 2024, the required annual maturities related to the 2024 Credit Facilities, the Real Estate Loans and our other debt were as follows: Years ending December 31, Annual 2024 - remaining $ 10,829 2025 23,875 2026 22,660 2027 22,166 2028 22,375 Thereafter 924,142 Total required maturities $ 1,026,047 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Values of Derivative Instruments | The fair values of our derivative instruments were as follows as of: Asset derivatives Liability derivatives (dollars in thousands) Balance sheet location June 30, December 31, Balance sheet location June 30, December 31, Derivative instruments designated as hedging instruments: Interest rate swaps, current portion Prepaid expenses $ 7,362 $ 16,198 Accrued expenses $ — $ — Foreign currency forward contracts, current portion Prepaid expenses and other current assets 252 — Accrued expenses 56 536 Interest rate swaps, long-term Other assets 6,920 — Other liabilities — 5,004 Total derivative instruments designated as hedging instruments $ 14,534 $ 16,198 $ 56 $ 5,540 |
Effects of Derivative Instruments in Cash Flow Hedging Relationships | The effects of derivative instruments in cash flow and net investment hedging relationships were as follows: Gain (loss) recognized in accumulated other comprehensive income (loss) as of Location of gain (loss) reclassified from accumulated other comprehensive income (loss) into income (loss) Gain reclassified from accumulated other comprehensive income (loss) into income (loss) (dollars in thousands) June 30, Three months ended June 30, 2024 Six months ended June 30, 2024 Cash Flow Hedges Interest rate swaps $ 14,282 Interest expense $ 5,456 $ 10,929 Foreign currency forward contracts $ 252 Revenue $ 129 $ 163 Net Investment Hedges Foreign currency forward contracts $ (56) $ — $ — June 30, Three months ended June 30, 2023 Six months ended June 30, 2023 Cash Flow Hedges Interest rate swaps $ 25,204 Interest expense $ 5,083 $ 9,582 Foreign currency forward contracts $ (292) Revenue $ 109 $ 234 Net Investment Hedges Foreign currency forward contracts $ (401) $ — $ — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Components of Lease Expense | The following table summarizes the components of our lease expense: Three months ended June 30, Six months ended June 30, (dollars in thousands) 2024 2023 2024 2023 Operating lease cost (1) $ 1,625 $ 2,304 $ 3,611 $ 4,689 Variable lease cost 299 395 612 827 Sublease income (906) (854) (1,604) (1,665) Net lease cost $ 1,018 $ 1,845 $ 2,619 $ 3,851 (1) Includes short-term lease costs, which were immaterial. |
Schedule of Maturities of Operating Lease Liabilities | Maturities of our operating lease liabilities as of June 30, 2024 were as follows: Years ending December 31, Operating leases 2024 - remaining $ 3,376 2025 6,258 2026 6,106 2027 6,207 2028 6,101 Thereafter 20,689 Total lease payments 48,737 Less: Amount representing interest 7,560 Present value of future payments $ 41,177 |
Schedule of Security Incident Expense and Probable Insurance Recoveries | We recorded expenses and offsetting insurance recoveries related to the Security Incident as follows: Three months ended June 30, Six months ended June 30, (dollars in thousands) 2024 2023 2024 2023 Gross expense $ 1,822 $ 26,777 $ 12,145 $ 44,560 Offsetting insurance recoveries — — — — Net expense $ 1,822 $ 26,777 $ 12,145 $ 44,560 The following summarizes our cumulative expenses, insurance recoveries recognized and insurance recoveries paid as of: (dollars in thousands) June 30, December 31, Cumulative gross expense $ 173,576 $ 161,431 Cumulative offsetting insurance recoveries recognized (50,000) (50,000) Cumulative net expense $ 123,576 $ 111,431 Cumulative offsetting insurance recoveries paid $ (50,000) $ (50,000) |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rates | Our income tax provision (benefit) and effective income tax rates, including the effects of period-specific events, were: Three months ended June 30, Six months ended June 30, (dollars in thousands) 2024 2023 2024 2023 Income tax provision (benefit) $ 7,883 $ (10,200) $ 6,427 $ (14,101) Effective income tax rate 26.6 % 126.0 % 19.2 % 52.8 % |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) by Component | The changes in accumulated other comprehensive income (loss) by component, consisted of the following: Three months ended June 30, Six months ended June 30, (in thousands) 2024 2023 2024 2023 Accumulated other comprehensive income (loss), beginning of period $ 1,222 $ 404 $ (1,688) $ 8,938 By component: Gains and losses on cash flow hedges: Accumulated other comprehensive income balance, beginning of period $ 12,253 $ 13,141 $ 8,158 $ 23,833 Other comprehensive income before reclassifications, net of tax effects of $(974), $(3,238), $(3,940) and $(672) 2,731 9,231 10,852 1,942 Amounts reclassified from accumulated other comprehensive income (5,585) (5,192) (11,092) (9,816) Tax expense included in provision for income taxes 1,468 1,344 2,949 2,565 Total amounts reclassified from accumulated other comprehensive income (4,117) (3,848) (8,143) (7,251) Net current-period other comprehensive (loss) income (1,386) 5,383 2,709 (5,309) Accumulated other comprehensive income balance, end of period $ 10,867 $ 18,524 $ 10,867 $ 18,524 Foreign currency translation adjustment: Accumulated other comprehensive loss balance, beginning of period $ (11,031) $ (12,737) $ (9,846) $ (14,895) Translation adjustment 339 3,055 (846) 5,213 Accumulated other comprehensive loss balance, end of period (10,692) (9,682) (10,692) (9,682) Accumulated other comprehensive income, end of period $ 175 $ 8,842 $ 175 $ 8,842 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Contract Balances | Our closing balances of deferred revenue were as follows: (in thousands) June 30, December 31, Total deferred revenue $ 429,413 $ 394,927 |
Disaggregation of Revenue | The following table presents our revenue by geographic area based on the address of our customers: Three months ended June 30, Six months ended June 30, (dollars in thousands) 2024 2023 2024 2023 United States $ 241,831 $ 228,744 $ 479,940 $ 450,413 United Kingdom 29,980 28,234 56,109 54,282 Other countries 15,475 14,064 30,487 28,100 Total revenue $ 287,286 $ 271,042 $ 566,536 $ 532,795 The following table presents our revenue by market group: Three months ended June 30, Six months ended June 30, (dollars in thousands) 2024 2023 2024 2023 Social Sector $ 252,164 $ 232,381 $ 496,608 $ 457,278 Corporate Sector 35,122 38,661 69,928 75,517 Total revenue $ 287,286 $ 271,042 $ 566,536 $ 532,795 |
Disaggregation Of Revenue, Recurring | The following table presents our recurring revenue by type: Three months ended June 30, Six months ended June 30, (dollars in thousands) 2024 2023 2024 2023 Contractual recurring $ 193,542 $ 181,235 $ 384,397 $ 358,838 Transactional recurring 87,834 81,155 168,497 156,300 Total recurring revenue $ 281,376 $ 262,390 $ 552,894 $ 515,138 |
Business Combinations (Details)
Business Combinations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Mar. 02, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Revenue | $ 287,286 | $ 271,042 | $ 566,536 | $ 532,795 | ||
Loss on disposal | $ 1,600 | |||||
EVERFI Limited | ||||||
Revenue | $ 8,400 |
Earnings Per Share (Computation
Earnings Per Share (Computation of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings Per Share [Abstract] | ||||||
Net income (loss) | $ 21,804 | $ 5,246 | $ 2,105 | $ (14,701) | $ 27,050 | $ (12,596) |
Weighted average common shares | 50,747,337 | 52,642,411 | 51,399,853 | 52,389,112 | ||
Restricted stock and units | 930,081 | 1,000,713 | 972,074 | 0 | ||
Weighted average common shares assuming dilution | 51,677,418 | 53,643,124 | 52,371,927 | 52,389,112 | ||
Basic earnings per share | $ 0.43 | $ 0.04 | $ 0.53 | $ (0.24) | ||
Diluted earnings per share | $ 0.42 | $ 0.04 | $ 0.52 | $ (0.24) | ||
Anti-dilutive shares excluded from calculations of diluted earnings (loss) per share | 12,367 | 9,487 | 1,023,093 | 1,151,974 |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2024 | Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | ||
Operating lease right-of-use assets, impairments | $ 3.1 | $ 3.1 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration obligations | $ 0 | $ 1,403 |
Fair value measurements, recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps, derivative assets | 14,282 | 16,198 |
Foreign currency forward contracts, derivative assets | 252 | |
Total financial assets | 14,534 | 16,198 |
Foreign currency forward contracts, derivative liabilities | 56 | 536 |
Interest rate swaps, derivative liabilities | 5,004 | |
Contingent consideration obligations | 1,403 | |
Total financial liabilities | 56 | 6,943 |
Fair value measurements, recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps, derivative assets | 0 | 0 |
Foreign currency forward contracts, derivative assets | 0 | |
Total financial assets | 0 | 0 |
Foreign currency forward contracts, derivative liabilities | 0 | 0 |
Interest rate swaps, derivative liabilities | 0 | |
Contingent consideration obligations | 0 | |
Total financial liabilities | 0 | 0 |
Fair value measurements, recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps, derivative assets | 14,282 | 16,198 |
Foreign currency forward contracts, derivative assets | 252 | |
Total financial assets | 14,534 | 16,198 |
Foreign currency forward contracts, derivative liabilities | 56 | 536 |
Interest rate swaps, derivative liabilities | 5,004 | |
Contingent consideration obligations | 0 | |
Total financial liabilities | 56 | 5,540 |
Fair value measurements, recurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps, derivative assets | 0 | 0 |
Foreign currency forward contracts, derivative assets | 0 | |
Total financial assets | 0 | 0 |
Foreign currency forward contracts, derivative liabilities | 0 | 0 |
Interest rate swaps, derivative liabilities | 0 | |
Contingent consideration obligations | 1,403 | |
Total financial liabilities | $ 0 | $ 1,403 |
Consolidated Financial Statem_3
Consolidated Financial Statement Details (Components of Restricted Cash) (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Restricted cash due to customers | $ 799,429 | $ 695,489 |
Real estate escrow balances and other | 1,241 | 1,517 |
Total restricted cash | $ 800,670 | $ 697,006 |
Consolidated Financial Statem_4
Consolidated Financial Statement Details (Components of Prepaid Expenses and Other Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | ||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||
Costs of obtaining contracts | [1],[2] | $ 60,680 | $ 60,680 | $ 62,377 | ||||
Prepaid software maintenance and subscriptions, current and long-term | [3] | 35,600 | 35,600 | 35,169 | ||||
Derivative instruments | 14,534 | 14,534 | 16,198 | |||||
Implementation costs for cloud computing arrangements | [4],[5] | 10,262 | 10,262 | 9,259 | ||||
Prepaid insurance | 7,078 | 7,078 | 3,940 | |||||
Unbilled accounts receivable | 5,789 | 5,789 | 5,615 | |||||
Equity method investments | 5,029 | [6] | 5,029 | [6] | 0 | |||
Taxes, prepaid and receivable | 5,549 | 5,549 | 3,418 | |||||
Other assets | 16,554 | 16,554 | 14,346 | |||||
Total prepaid expenses and other assets | 161,075 | 161,075 | 150,322 | |||||
Less: Long-term portion | 68,785 | 68,785 | 51,037 | |||||
Prepaid expenses and other current assets | 92,290 | 92,290 | 99,285 | |||||
Amortization expense from costs of obtaining contracts | 4,900 | $ 8,100 | 9,700 | $ 16,400 | ||||
Current portion of costs of obtaining contracts | 19,600 | 19,600 | 25,300 | |||||
Prepaid software maintenance and subscriptions, current | 32,100 | 32,100 | 32,400 | |||||
Implementation costs for cloud computing arrangements, accumulated amortization | 9,100 | 9,100 | $ 7,700 | |||||
Implementation costs for cloud computing arrangements, amortization | $ 700 | $ 1,400 | $ 1,100 | |||||
[1] Amortization expense from costs of obtaining contracts was $4.9 million and $9.7 million for the three and six months ended June 30, 2024, respectively, and $8.1 million and $16.4 million for the three and six months ended June 30, 2023, respectively. The current portion of costs of obtaining contracts as of June 30, 2024 and December 31, 2023 was $19.6 million and $25.3 million, respectively. The current portion of prepaid software maintenance and subscriptions as of June 30, 2024 and December 31, 2023 was $32.1 million and $32.4 million, respectively. Amortization expense from capitalized cloud computing implementation costs was $0.7 million and insignificant for the three months ended June 30, 2024 and 2023, respectively, and $1.4 million and $1.1 million for the six months ended June 30, 2024 and 2023, respectively. Accumulated amortization for these costs was $9.1 million and $7.7 million as of June 30, 2024 and December 31, 2023, respectively. These costs primarily relate to the multi-year implementations of our new global enterprise resource planning, customer relationship management systems and other cloud-based systems. Represents a strategic investment that did not result in Blackbaud having significant influence over the investee. |
Consolidated Financial Statem_5
Consolidated Financial Statement Details (Components of Accrued Expenses and Other Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Taxes payable | $ 10,428 | $ 21,282 | |
Accrued legal costs | [1] | 10,473 | 3,659 |
Customer credit balances | 7,631 | 10,238 | |
Operating lease liabilities, current portion | 4,887 | 6,701 | |
Accrued commissions and salaries | 2,995 | 4,413 | |
Accrued health care costs | 2,230 | 3,865 | |
Accrued vacation costs | 2,594 | 2,452 | |
Accrued transaction-based costs related to payments services | 1,934 | 4,323 | |
Contingent consideration obligations | 0 | 1,403 | |
Derivative instruments | 56 | 5,540 | |
Other liabilities | 12,816 | 10,704 | |
Total accrued expenses and other liabilities | 56,044 | 74,580 | |
Less: Long-term portion | 4,362 | 10,258 | |
Accrued expenses and other current liabilities | $ 51,682 | $ 64,322 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities | |
[1] All accrued legal costs are classified as current. See Note 9 to these unaudited, condensed consolidated financial statements for additional information about our loss contingency accruals and other legal expenses. |
Consolidated Financial Statem_6
Consolidated Financial Statement Details (Components of Other Income and Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Interest income | $ 2,815 | $ 2,308 | $ 4,863 | $ 3,544 |
Currency revaluation losses | (380) | (535) | (97) | (779) |
Other income, net | 875 | 1,005 | 1,891 | 2,020 |
Other income, net | $ 3,310 | $ 2,778 | $ 6,657 | $ 4,785 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | 6 Months Ended | ||||||
Apr. 30, 2024 | Oct. 30, 2020 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | Jan. 31, 2022 | Aug. 31, 2020 | |
Business Acquisition [Line Items] | |||||||
Credit facility, maximum borrowing capacity | $ 1,500,000 | $ 1,100,000 | |||||
Payment of financing costs | 6,500 | $ 6,458 | $ 0 | ||||
Capitalized financing costs to be amortized over term of facility | 1,600 | ||||||
Total deferred financing costs included in other assets | 1,900 | ||||||
Aggregate financing costs related to debt discount and debt issuance costs | 3,600 | $ 4,190 | $ 1,481 | ||||
Line of credit facility, available increase capacity, amount | $ 360,000 | ||||||
Line of credit facility, available increase capacity, percent of EBITDA | 100% | ||||||
Minimum [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Line of credit facility, unused capacity, commitment fee percentage | 0.25% | ||||||
Maximum [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Net leverage ratio | 3.50 | ||||||
Line of credit facility, unused capacity, commitment fee percentage | 0.50% | ||||||
Fed funds effective rate overnight index swap rate [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Line of credit facility variable interest rate | 0.50% | ||||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Line of credit facility variable interest rate | 1% | ||||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Minimum [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 1.375% | ||||||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | Maximum [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 2.50% | ||||||
Base rate [Member] | Minimum [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 0.375% | ||||||
Base rate [Member] | Maximum [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 1.50% | ||||||
Designated Currency Rate [Member] | Minimum [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 1.375% | ||||||
Designated Currency Rate [Member] | Maximum [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 2.50% | ||||||
Term loans [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Credit facility, maximum borrowing capacity | $ 800,000 | ||||||
Proceeds from lines of credit | 800,000 | ||||||
Revolving credit loans [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Credit facility, maximum borrowing capacity | 700,000 | ||||||
Proceeds from lines of credit | 208,200 | ||||||
Repayments of lines of credit | $ 196,600 | ||||||
Standby letters of credit [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Credit facility, maximum borrowing capacity | 50,000 | ||||||
Swingline loans | |||||||
Business Acquisition [Line Items] | |||||||
Credit facility, maximum borrowing capacity | 50,000 | ||||||
Foreign line of credit [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Credit facility, maximum borrowing capacity | $ 150,000 | ||||||
Global HQ [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Debt, face amount | $ 61,100 |
Debt (Summary of Debt) (Details
Debt (Summary of Debt) (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Apr. 30, 2024 | Dec. 31, 2023 |
Line of Credit Facility [Line Items] | |||
Debt, gross | $ 1,026,047 | $ 781,145 | |
Other debt | 2,782 | 2,800 | |
Less: Unamortized discount and debt issuance costs | 4,190 | $ 3,600 | 1,481 |
Less: Debt, current portion | 23,786 | 19,259 | |
Debt, net of current portion | $ 998,071 | $ 760,405 | |
Weighted average effective interest rate | 5.17% | 4.24% | |
Revolving credit loans [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt, gross | $ 167,300 | $ 114,100 | |
Weighted average effective interest rate | 7.78% | 7.52% | |
Term loans [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt, gross | $ 800,000 | $ 607,500 | |
Weighted average effective interest rate | 4.61% | 3.51% | |
Mortgages [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt, gross | $ 55,965 | $ 56,745 | |
Weighted average effective interest rate | 5.23% | 5.22% | |
Loans payable [Member] | |||
Line of Credit Facility [Line Items] | |||
Weighted average effective interest rate | 8.77% | 8.42% | |
Short-term debt [Member] | |||
Line of Credit Facility [Line Items] | |||
Weighted average effective interest rate | 7.28% | 7.02% | |
Long-term debt [Member] | |||
Line of Credit Facility [Line Items] | |||
Weighted average effective interest rate | 5.12% | 4.17% |
Debt (Summary of Currently Effe
Debt (Summary of Currently Effective Third-Party Financing Agreements) (Details) - USD ($) $ in Thousands | Apr. 30, 2024 | Jan. 31, 2023 | Dec. 31, 2022 | ||
Loans payable [Member] | |||||
Debt Instrument [Line Items] | |||||
Original Loan Value | $ 2,073 | $ 2,491 | [1] | $ 1,710 | [1] |
[1] Represent noncash investing and financing transactions during the periods indicated as we purchased software and services by assuming directly related liabilities. |
Debt (Changes in Supplier Finan
Debt (Changes in Supplier Financing Obligations) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Debt Disclosure [Abstract] | ||
Balance at December 31, 2023 | $ 2,800 | |
Supplier Finance Program, Obligation, Addition | 2,073 | |
Settlements | (2,091) | |
Balance at June 30, 2024 | $ 2,782 | |
Supplier Finance Program, Obligation, Statement of Financial Position [Extensible Enumeration] | Debt, current portion, Debt, net of current portion | Debt, current portion, Debt, net of current portion |
Debt (Annual Maturities Related
Debt (Annual Maturities Related to Credit Facility, Real Estate Loans and other debt) (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Debt Disclosure [Abstract] | |
2024 - remaining | $ 10,829 |
2025 | 23,875 |
2026 | 22,660 |
2027 | 22,166 |
2028 | 22,375 |
Thereafter | 924,142 |
Long-term Debt | $ 1,026,047 |
Derivative Instruments (Details
Derivative Instruments (Details) £ in Millions, $ in Millions, $ in Millions | 6 Months Ended | ||||||
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 CAD ($) | Jun. 30, 2024 GBP (£) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 CAD ($) | Dec. 31, 2023 GBP (£) | |
Derivative [Line Items] | |||||||
Accumulated other comprehensive loss expected to be reclassified into earnings within next 12 months | $ (11.6) | ||||||
Ineffective portion of interest rate swap(s) | $ 0 | $ 0 | |||||
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities | |
Interest rate swap [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative, notional amount | $ 935 | $ 935 | |||||
Foreign currency forward contracts [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative, notional amount | $ 32.1 | £ 14 | $ 29.9 | £ 13.2 |
Derivative Instruments (Fair Va
Derivative Instruments (Fair Value of Derivative Instruments) (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration] | Prepaid expenses and other current assets | Prepaid expenses and other current assets |
Derivative Asset, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities |
Designated as hedging instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | $ 14,534 | $ 16,198 |
Derivative liabilities, fair value | 56 | 5,540 |
Designated as hedging instrument [Member] | Foreign currency forward contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, foreign currency forward contracts, current | 252 | 0 |
Derivative liability, foreign currency forward contracts, current | 56 | 536 |
Designated as hedging instrument [Member] | Interest rate swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, foreign currency forward contracts, current | 7,362 | 16,198 |
Derivative liability, foreign currency forward contracts, current | 0 | 0 |
Derivative asset, interest rate swaps, long-term | 6,920 | 0 |
Derivative liability, interest rate swaps, long-term | $ 0 | $ 5,004 |
Derivative Instruments (Effects
Derivative Instruments (Effects of Derivative Instruments in Cash Flow Hedging Relationships) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest Expense, Operating and Nonoperating, Revenue | Interest Expense, Operating and Nonoperating, Revenue | ||
Interest rate swap [Member] | Cash flow hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in accumulated other comprehensive income (loss) as of | $ 14,282 | $ 25,204 | ||
Gain reclassified from accumulated other comprehensive income (loss) into income (loss) | $ 5,456 | $ 5,083 | 10,929 | 9,582 |
Foreign currency forward contracts [Member] | Cash flow hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in accumulated other comprehensive income (loss) as of | 252 | (292) | ||
Gain reclassified from accumulated other comprehensive income (loss) into income (loss) | 129 | 109 | 163 | 234 |
Foreign currency forward contracts [Member] | Net investment hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) recognized in accumulated other comprehensive income (loss) as of | (56) | (401) | ||
Gain reclassified from accumulated other comprehensive income (loss) into income (loss) | $ 0 | $ 0 | $ 0 | $ 0 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 13, 2024 USD ($) | Jun. 30, 2024 USD ($) cases | Jun. 30, 2024 USD ($) cases | |
Loss Contingencies [Line Items] | |||
Liability insurance, amount, total | $ 50,000 | $ 50,000 | |
Liability insurance, amount, deductible | 250 | 250 | |
Security Incident, net pre-tax expense | 1,800 | 12,100 | |
Security Incident, ongoing legal fees | 1,800 | 5,100 | |
Loss contingency accrual, period increase (decrease) | 0 | 7,000 | |
Security Incident, net cash outlays | 5,800 | 5,800 | |
Loss contingency accrual | $ 8,500 | $ 8,500 | |
Plaintiffs, number | cases | 260 | ||
Pending claims, number | cases | 400 | 400 | |
Security incident, subrogation claims, number | cases | 3 | ||
Security incident, penalty | $ 6,800 | ||
Security incident, number of state Attorneys General | cases | 49 | ||
Minimum [Member] | |||
Loss Contingencies [Line Items] | |||
Security Incident, expected cost | $ 5,000 | $ 5,000 | |
Expected net cash outlays for ongoing legal fees | 8,000 | 8,000 | |
Maximum [Member] | |||
Loss Contingencies [Line Items] | |||
Security Incident, expected cost | 10,000 | 10,000 | |
Expected net cash outlays for ongoing legal fees | 13,000 | 13,000 | |
Third-party technology [Member] | |||
Long-term Purchase Commitment [Line Items] | |||
Remaining aggregate minimum purchase commitment | $ 228,000 | $ 228,000 |
Commitments and Contingencies_3
Commitments and Contingencies (Components of Lease Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | ||
Commitments and Contingencies Disclosure [Abstract] | |||||
Operating lease cost | [1] | $ 1,625 | $ 2,304 | $ 3,611 | $ 4,689 |
Variable lease cost | 299 | 395 | 612 | 827 | |
Sublease income | (906) | (854) | (1,604) | (1,665) | |
Net lease cost | $ 1,018 | $ 1,845 | $ 2,619 | $ 3,851 | |
[1] Includes short-term lease costs, which were immaterial. |
Commitments and Contingencies_4
Commitments and Contingencies (Schedule of Maturities of Operating Lease Liabilities) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Maturities of Operating Lease Liabilities | Maturities of our operating lease liabilities as of June 30, 2024 were as follows: Years ending December 31, Operating leases 2024 - remaining $ 3,376 2025 6,258 2026 6,106 2027 6,207 2028 6,101 Thereafter 20,689 Total lease payments 48,737 Less: Amount representing interest 7,560 Present value of future payments $ 41,177 |
2024 - remaining | $ 3,376 |
2025 | 6,258 |
2026 | 6,106 |
2027 | 6,207 |
2028 | 6,101 |
Thereafter | 20,689 |
Total lease payments | 48,737 |
Less: Amount representing interest | 7,560 |
Present value of future payments | $ 41,177 |
Commitments and Contingencies_5
Commitments and Contingencies (Schedule of Security Incident Expense and Probable Insurance Recoveries) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |||||
Security Incident, gross expense | $ 1,822 | $ 26,777 | $ 12,145 | $ 44,560 | |
Security Incident, offsetting probable insurance recoveries | 0 | 0 | 0 | 0 | |
Security Incident, net expense | 1,822 | $ 26,777 | 12,145 | 44,560 | |
Security Incident, cumulative gross expense | 173,576 | 173,576 | $ 161,431 | ||
Security Incident, cumulative offsetting probable insurance recoveries | (50,000) | (50,000) | (50,000) | ||
Security Incident, cumulative net expense | $ 123,576 | 123,576 | $ 111,431 | ||
Security Incident, cumulative offsetting insurance recoveries paid | $ (50,000) | $ (50,000) |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Income Tax Rates) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision (benefit) | $ 7,883 | $ (10,200) | $ 6,427 | $ (14,101) |
Effective income tax rate | 26.60% | 126% | 19.20% | 52.80% |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2024 | Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2024 | Jul. 16, 2024 | Jan. 17, 2024 | |
Purchase of treasury shares under stock repurchase program, cost method, value | $ 263,656 | |||||
Stock repurchase program, remaining authorized repurchase amount | $ 259,700 | $ 259,700 | ||||
December 2021 Stock Repurchase Program | ||||||
Stock repurchase program, authorized amount | $ 250,000 | |||||
January 2024 Stock Repurchase Program | ||||||
Stock repurchase program, authorized amount | $ 500,000 | |||||
Purchase of treasury shares under stock repurchase program (in shares) | 0 | 2,954,211 | ||||
Purchase of treasury shares under stock repurchase program, cost method, value | $ 262,600 | |||||
July 2024 Stock Repurchase Program | Subsequent event [Member] | ||||||
Stock repurchase program, authorized amount | $ 800,000 | |||||
Stock repurchase program, remaining authorized repurchase amount | $ 800,000 | |||||
Q12024ASR | ||||||
Accelerated share repurchases, cash or stock settlement | 200 million | |||||
Accelerated share repurchases, settlement (payment) or receipt | $ 200,000 | $ 200,000 | ||||
Purchase of treasury shares under stock repurchase program (in shares) | 2,100,000 | |||||
Accelerated share repurchases, initial delivery percentage of shares | 70% | |||||
Accelerated Share Repurchases, Adjustment to Recorded Amount | $ 52,200 |
Stockholders' Equity (Changes i
Stockholders' Equity (Changes in Accumulated Other Comprehensive Loss by Component) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Accumulated other comprehensive (loss) income, beginning of period | $ 1,222 | $ 404 | $ (1,688) | $ 8,938 |
Other comprehensive income before reclassifications, net of tax effects of $(974), $(3,238), $(3,940) and $(672) | (974) | (3,238) | (3,940) | (672) |
Net current-period other comprehensive (loss) income | 1,047 | (8,438) | (1,863) | 96 |
Translation adjustment | 339 | 3,055 | (846) | 5,213 |
Accumulated other comprehensive income (loss), end of period | 175 | 8,842 | 175 | 8,842 |
Gains and losses on cash flow hedges [Member] | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Accumulated other comprehensive (loss) income, beginning of period | 12,253 | 13,141 | 8,158 | 23,833 |
Other comprehensive income (loss) before reclassifications, net of tax effects | (2,731) | (9,231) | (10,852) | (1,942) |
Amounts reclassified from accumulated other comprehensive income | (5,585) | (5,192) | (11,092) | (9,816) |
Tax expense included in provision for income taxes | 1,468 | 1,344 | 2,949 | 2,565 |
Total amounts reclassified from accumulated other comprehensive income | (4,117) | (3,848) | (8,143) | (7,251) |
Net current-period other comprehensive (loss) income | (1,386) | 5,383 | 2,709 | (5,309) |
Accumulated other comprehensive income (loss), end of period | 10,867 | 18,524 | 10,867 | 18,524 |
Foreign currency translation adjustment [Member] | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Accumulated other comprehensive (loss) income, beginning of period | (11,031) | (12,737) | (9,846) | (14,895) |
Translation adjustment | 339 | 3,055 | (846) | 5,213 |
Accumulated other comprehensive income (loss), end of period | $ (10,692) | $ (9,682) | $ (10,692) | $ (9,682) |
Revenue Recognition (Details)
Revenue Recognition (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue recognized that was included in deferred revenue at beginning of period | $ 279 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 1,300 |
Revenue, remaining performance obligation, percentage to be recognized | 55% |
Revenue, remaining performance obligation, expected timing of satisfaction | 12 months |
Revenue Recognition (Contract B
Revenue Recognition (Contract Balances) (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Revenue from Contract with Customer [Abstract] | ||
Total deferred revenue | $ 429,413 | $ 394,927 |
Revenue Recognition (Disaggrega
Revenue Recognition (Disaggregation of Revenue by Geography) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 287,286 | $ 271,042 | $ 566,536 | $ 532,795 |
United States [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 241,831 | 228,744 | 479,940 | 450,413 |
United Kingdom [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 29,980 | 28,234 | 56,109 | 54,282 |
Other countries [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 15,475 | $ 14,064 | $ 30,487 | $ 28,100 |
Revenue Recognition (Disaggre_2
Revenue Recognition (Disaggregation of Revenue by Market Group) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 287,286 | $ 271,042 | $ 566,536 | $ 532,795 |
Social Sector | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 252,164 | 232,381 | 496,608 | 457,278 |
Corporate Sector | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 35,122 | $ 38,661 | $ 69,928 | $ 75,517 |
Revenue Recognition (Disaggre_3
Revenue Recognition (Disaggregation of Recurring Revenue by Type) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 287,286 | $ 271,042 | $ 566,536 | $ 532,795 |
Contractual recurring [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 193,542 | 181,235 | 384,397 | 358,838 |
Transactional recurring [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 87,834 | 81,155 | 168,497 | 156,300 |
Recurring [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 281,376 | $ 262,390 | $ 552,894 | $ 515,138 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2024 | Jul. 16, 2024 | Jan. 17, 2024 | |
Subsequent Event [Line Items] | |||||
Treasury stock, value, acquired, cost method | $ 263,656 | ||||
Stock repurchase program, remaining authorized repurchase amount | $ 259,700 | $ 259,700 | |||
January 2024 Stock Repurchase Program | |||||
Subsequent Event [Line Items] | |||||
Stock repurchase program, authorized amount | $ 500,000 | ||||
Purchase of treasury shares under stock repurchase program (in shares) | 0 | 2,954,211 | |||
Treasury stock, value, acquired, cost method | $ 262,600 | ||||
Subsequent event [Member] | July 2024 Stock Repurchase Program | |||||
Subsequent Event [Line Items] | |||||
Stock repurchase program, authorized amount | $ 800,000 | ||||
Stock repurchase program, remaining authorized repurchase amount | $ 800,000 |
Uncategorized Items - blkb-2024
Label | Element | Value |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | $ 728,257,000 |