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PRESS RELEASE blackbaud Blackbaud Announces 2021 Third Quarter Results Third Quarter Recurring Revenue Increases 9 % Year - Over - Year ; Drives 30 % Growth in Earnings Per Share Charleston , S.C. ( November 3 , 2021 ) - Blackbaud ( NASDAQ : BLKB ) , the world's leading cloud software company powering social good , today announced financial results for its third quarter ended September 30 , 2021 . " Third quarter results reflected a fantastic quarter of execution for Blackbaud , exceeding our expectations on a much improved market backdrop , " said Mike Gianoni , president and CEO , Blackbaud . " We achieved near double - digit recurring revenue growth , a roughly ten - point improvement on the Rule of 40 year - over - year , and we're on pace to potentially have one of our best years in the company's history in terms of free cash flow generation . I firmly believe our market and our company is in the midst of an inflection point as the shift to a digital - first world continues to accelerate . Our vision for the SKY platform is becoming a reality , and we're fueling future growth opportunities through additional investment in innovation , customer success , security , cloud infrastructure and a higher velocity go - to market motion . We are raising our financial outlook for full year 2021 revenue , profitability and free cash flow , and we expect to see further acceleration in our full - year recurring revenue growth rate into 2022. " ● Third Quarter 2021 Results Compared to Third Quarter 2020 Results : Total GAAP revenue was $ 231.2 million , up 7.5 % , with $ 218.5 million in GAAP recurring revenue , up 9.2 % . Non - GAAP organic recurring revenue increased 9.2 % . GAAP income from operations was $ 11.8 million , with GAAP operating margin of 5.1 % , an increase of 40 basis points . Non - GAAP income from operations was $ 50.5 million , with non - GAAP operating margin of 21.8 % , a decrease of 60 basis points . GAAP net income was $ 6.2 million , with GAAP diluted earnings per share of $ 0.13 , up $ 0.03 per share . Non - GAAP net income was $ 37.9 million , with non - GAAP diluted earnings per share of $ 0.78 , up $ 0.05 per share . Non - GAAP adjusted EBITDA was $ 62.4 million , up $ 3.0 million , with non - GAAP adjusted EBITDA margin of 27.0 % . GAAP net cash provided by operating activities was $ 69.9 million , a decrease of $ 1.8 million . Non - GAAP free cash flow was $ 57.9 million , an increase of $ 16.5 million . " We expected an acceleration of revenue performance in the second half of 2021 , and Q3 not only delivered , but exceeded that expectation , serving as a proof point for what's achievable as we progress against the growth and margin initiatives laid out at our investor session earlier this year , " said Tony Boor , executive vice president and CFO , Blackbaud . " With three quarters behind us , and a particularly strong third quarter , we have high confidence in our ability to exceed the $ 920 million high end of our upside revenue scenario for 2021. This may even prove to be conservative depending on our fourth quarter transactional revenue performance . We expect to achieve an adjusted EBITDA margin of at least 26 % for full year 2021 , inclusive of heightened investments planned for the fourth quarter , and our strong performance year - to - date combined with our outlook for Q4 suggests we should generate at least