Blackbaud announced its financial results for the third quarter ended September 30, 2024, reporting total revenue of $287 million, an increase of 3.3% year-over-year, and 4.3% on an organic basis. The company's social sector, which constitutes 89% of total revenue, demonstrated strong growth of 6.6%. However, the corporate sector experienced a decline, primarily due to the underperformance of the EVERFI business, which represents approximately 7% of total revenue and declined 26% year-over-year.
The company's non-GAAP adjusted EBITDA margin for the quarter was 33.2%, and it generated $97.6 million in adjusted free cash flow, bringing the year-to-date total to $187 million, an increase from $177 million in the same period of 2023. Blackbaud also confirmed it had repurchased approximately 8% of its common stock outstanding as of year-end 2023 through October, with a goal to reach 10% by year-end 2024, and has $737 million remaining under its repurchase program.
Due to the continued underperformance of EVERFI, Blackbaud revised its full-year 2024 financial guidance. The company now projects revenue in the range of $1.150 billion to $1.160 billion, with an organic growth rate of 5.2% at the midpoint. Adjusted EBITDA margin guidance was slightly increased to 33% to 34%, while non-GAAP EPS is expected to be between $3.98 and $4.16. Blackbaud has hired Goldman Sachs as a strategic advisor to evaluate options for EVERFI and has rightsized the business to align costs with revenues.
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