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PRESS RELEASE blackbaud Blackbaud Announces 2021 Second Quarter Results Second Quarter Cash Flow from Operations Increases $ 8 Million Year - Over - Year with Non - GAAP Free Cash Flow Margin of 25 % Charleston , S.C. ( August 3 , 2021 ) Blackbaud ( NASDAQ : BLKB ) , the world's leading cloud software company powering social good , today announced financial results for its second quarter ended June 30 , 2021 . ● " Blackbaud had another strong quarter as our market's progress toward a post - pandemic recovery and the shift to a digital - first world continues to accelerate , " said Mike Gianoni , president and CEO , Blackbaud . " We have so much to be excited about as a company . This year marks Blackbaud's 40th anniversary ; and since day one , our focus has been on building a better world . Given our strong performance through the first half of 2021 , we are well positioned for further success as we look ahead to the second half of this year and the next several years . We're making excellent progress executing against our strategic plan that will move us further toward our long - term aspirational goal of achieving the Rule of 40 through a balance of organic revenue growth and improved profitability . " Second Quarter 2021 Results Compared to Second Quarter 2020 Results : Total GAAP revenue was $ 229.4 million , down 1.1 % , with $ 217.0 million in GAAP recurring revenue , up 0.3 % . Non - GAAP organic recurring revenue increased 0.3 % . GAAP income from operations was $ 13.0 million , with GAAP operating margin of 5.7 % , a decrease of 270 basis points . Non - GAAP income from operations was $ 54.1 million , with non - GAAP operating margin of 23.6 % , an increase of 10 basis points . GAAP net income was $ 6.7 million , with GAAP diluted earnings per share of $ 0.14 , down $ 0.10 per share . Non - GAAP net income was $ 39.7 million , with non - GAAP diluted earnings per share of $ 0.82 , down $ 0.03 per share . Non - GAAP adjusted EBITDA was $ 65.8 million , down $ 3.1 million , with non - GAAP adjusted EBITDA margin of 28.7 % . GAAP net cash provided by operating activities was $ 69.8 million , an increase of $ 7.8 million . ● Non - GAAP free cash flow was $ 56.6 million , an increase of $ 8.4 million . " We had another solid quarter of execution , and our first half performance combined with our latest modeling suggests our upside revenue scenarios for the full year are looking more likely , " said Tony Boor , executive vice president and CFO , Blackbaud . " Second quarter recurring revenue growth was roughly flat year - over - year inclusive of the tough compare in our payments revenue , which was expected given the elevated volumes we saw at the onset of the pandemic . Our contractual recurring revenue , which is the core of our business , grew during the quarter , and the trends we're seeing in bookings and renewals bode well for continued growth in the second half . We are continuing to make critical investments in the business , and our plans call for the level of investment to increase in the second half . Year - to - date we've generated roughly $ 74 million of free cash flow , and thus we feel very confident we will exceed the $ 100 million floor we set for 2021 , with our latest models suggesting we could generate at least $ 120 million to $ 130 million of free cash flow this year . We will also continue executing against our capital deployment strategy focused on maximizing value for our shareholders . This includes opportunistic share repurchases and a renewed focus on M & A . " An explanation of all non - GAAP financial measures referenced in this press release is included below under the heading " Non - GAAP Financial Measures . " A reconciliation of the company's Non - GAAP financial measures to their