Document
Document - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 28, 2021 | |
Cover [Abstract] | ||
Document type | 10-Q | |
Document quarterly report | true | |
Document period end date | Mar. 31, 2021 | |
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, $0.001 Par Value | |
Trading symbol | BLKB | |
Security exchange name | NASDAQ | |
Entity current reporting status | Yes | |
Entity interactive data current | Yes | |
Entity filer category | Large Accelerated Filer | |
Entity small business | false | |
Entity emerging growth company | false | |
Entity shell company | false | |
Entity common stock, shares outstanding | 48,818,991 | |
Amendment flag | false | |
Document fiscal year focus | 2021 | |
Document fiscal period focus | Q1 | |
Entity central index key | 0001280058 | |
Current fiscal year end date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 27,753 | $ 35,750 |
Total restricted cash | 255,158 | 609,219 |
Accounts receivable, net of allowance of $10,361 and $10,292 at March 31, 2021 and December 31, 2020, respectively | 83,333 | 95,404 |
Customer funds receivable | 945 | 321 |
Prepaid expenses and other current assets | 98,095 | 78,366 |
Total current assets | 465,284 | 819,060 |
Property and equipment, net | 105,124 | 105,177 |
Operating lease right-of-use assets | 20,055 | 22,671 |
Software development costs, net | 113,624 | 111,827 |
Goodwill | 637,113 | 635,854 |
Intangible assets, net | 269,118 | 277,506 |
Other assets | 74,022 | 72,639 |
Total assets | 1,684,340 | 2,044,734 |
Current liabilities: | ||
Trade accounts payable | 35,274 | 27,836 |
Accrued expenses and other current liabilities | 53,013 | 52,228 |
Due to customers | 254,947 | 608,264 |
Debt, current portion | 12,875 | 12,840 |
Deferred revenue, current portion | 290,025 | 312,236 |
Total current liabilities | 646,134 | 1,013,404 |
Debt, net of current portion | 537,924 | 518,193 |
Deferred tax liability | 54,444 | 54,086 |
Deferred revenue, net of current portion | 4,495 | 4,678 |
Operating lease liabilities, net of current portion | 15,744 | 17,357 |
Other liabilities | 9,439 | 10,866 |
Total liabilities | 1,268,180 | 1,618,584 |
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 | 61,595,276 | 60,904,638 |
Common stock, $0.001 par value; 180,000,000 shares authorized, 61,595,276 and 60,904,638 shares issued at March 31, 2021 and December 31, 2020, respectively | $ 62 | $ 61 |
Additional paid-in capital | $ 574,958 | $ 544,963 |
Treasury stock, shares | 12,760,956 | 12,054,268 |
Treasury stock, at cost; 12,760,956 and 12,054,268 shares at March 31, 2021 and December 31, 2020, respectively | $ (399,583) | $ (353,091) |
Accumulated other comprehensive income (loss) | 4,163 | (2,497) |
Retained earnings | 236,560 | 236,714 |
Total stockholders' equity | 416,160 | 426,150 |
Total liabilities and stockholders' equity | $ 1,684,340 | $ 2,044,734 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 10,361 | $ 10,292 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue | ||
Revenue | $ 219,191 | $ 223,621 |
Cost of revenue | ||
Cost of revenue | 103,385 | 104,865 |
Gross profit | 115,806 | 118,756 |
Operating expenses | ||
Sales, marketing and customer success | 48,793 | 58,735 |
Research and development | 29,179 | 24,977 |
General and administrative | 30,587 | 25,855 |
Amortization | 549 | 741 |
Restructuring | 54 | 24 |
Total operating expenses | 109,162 | 110,332 |
Income from operations | 6,644 | 8,424 |
Interest expense | (5,114) | (4,159) |
Other (expense) income, net | (1,010) | 1,070 |
Income before provision for income taxes | 520 | 5,335 |
Income tax provision | 684 | 696 |
Net (loss) income | $ (164) | $ 4,639 |
Earnings (loss) per share | ||
Basic earnings per share | $ 0 | $ 0.10 |
Diluted earnings per share | $ 0 | $ 0.10 |
Common shares and equivalents outstanding | ||
Basic weighted average shares | 47,363,197 | 48,036,300 |
Diluted weighted average shares outstanding | 47,363,197 | 48,455,751 |
Other comprehensive income (loss) | ||
Foreign currency translation adjustment | $ 2,511 | $ (5,728) |
Unrealized gain (loss) on derivative instruments, net of tax | 4,149 | (3,122) |
Total other comprehensive income (loss) | 6,660 | (8,850) |
Comprehensive income (loss) | 6,496 | (4,211) |
Recurring [Member] | ||
Revenue | ||
Revenue | 206,750 | 204,867 |
Cost of revenue | ||
Cost of revenue | 88,865 | 89,551 |
One-time services and other [Member] | ||
Revenue | ||
Revenue | 12,441 | 18,754 |
Cost of revenue | ||
Cost of revenue | $ 14,520 | $ 15,314 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities | ||
Net (loss) income | $ (164) | $ 4,639 |
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 20,461 | 21,804 |
Provision for doubtful accounts and sales returns | 2,141 | 2,488 |
Stock-based compensation expense | 30,005 | 13,580 |
Deferred taxes | (1,142) | 954 |
Amortization of deferred financing costs and discount | 506 | 188 |
Other non-cash adjustments | (32) | 102 |
Changes in operating assets and liabilities, net of acquisition and disposal of businesses: | ||
Accounts receivable | 10,407 | (3,876) |
Prepaid expenses and other assets | (17,426) | (5,303) |
Trade accounts payable | 7,550 | (4,021) |
Accrued expenses and other liabilities | 549 | (31,694) |
Deferred revenue | (22,752) | (23,364) |
Net cash provided by (used in) operating activities | 30,103 | (24,503) |
Cash flows from investing activities | ||
Purchase of property and equipment | (3,470) | (2,867) |
Capitalized software development costs | (9,302) | (10,937) |
Net cash used in investing activities | (12,772) | (13,804) |
Cash flows from financing activities | ||
Proceeds from issuance of debt | 80,700 | 144,700 |
Payments on debt | (59,667) | (86,075) |
Employee taxes paid for withheld shares upon equity award settlement | (18,426) | (19,782) |
Proceeds from exercise of stock options | 0 | 1 |
Change in due to customers | (353,597) | (311,095) |
Change in customer funds receivable | (563) | (733) |
Purchase of treasury stock | (28,066) | 0 |
Dividend payments to stockholders | 0 | (5,960) |
Net cash used in financing activities | (379,619) | (278,944) |
Effect of exchange rate on cash, cash equivalents and restricted cash | 230 | (2,822) |
Net decrease in cash, cash equivalents and restricted cash | (362,058) | (320,073) |
Cash, cash equivalents and restricted cash, beginning of period | 644,969 | 577,295 |
Cash, cash equivalents and restricted cash, end of period | 282,911 | $ 257,222 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||
Cash and cash equivalents | 27,753 | |
Total restricted cash | 255,158 | |
Total cash, cash equivalents and restricted cash in the statement of cash flows | $ 282,911 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common stock [Member] | Additional paid-in capital [Member] | Treasury stock [Member] | Accumulated other comprehensive income (loss) [Member] | Retained earnings [Member] |
Balance (in shares) at Dec. 31, 2019 | 60,206,091 | |||||
Balance at Dec. 31, 2019 | $ 396,764 | $ 60 | $ 457,804 | $ (290,665) | $ (5,290) | $ 234,855 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | 4,639 | 4,639 | ||||
Exercise of stock options and vesting of restricted stock units (in shares) | 210,057 | |||||
Exercise of stock options and vesting of restricted stock units | $ 1 | 1 | ||||
Employee taxes paid for withheld shares upon equity award settlement (in shares) | 245,358 | |||||
Employee taxes paid for withheld shares upon equity award settlement | $ (19,782) | (19,782) | ||||
Stock-based compensation | 13,580 | 13,539 | 41 | |||
Restricted stock grants (in shares) | 563,947 | |||||
Restricted stock grants | 1 | $ 1 | ||||
Restricted stock cancellations (in shares) | (47,456) | |||||
Other comprehensive income | $ (8,850) | (8,850) | ||||
Dividends per share (in dollars per share) | $ 0.12 | |||||
Payment of dividends | $ (5,960) | (5,960) | ||||
Balance (in shares) at Mar. 31, 2020 | 60,932,639 | |||||
Balance at Mar. 31, 2020 | 380,393 | $ 61 | 471,344 | (310,447) | (14,140) | 233,575 |
Balance (in shares) at Dec. 31, 2020 | 60,904,638 | |||||
Balance at Dec. 31, 2020 | 426,150 | $ 61 | 544,963 | (353,091) | (2,497) | 236,714 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | $ (164) | (164) | ||||
Purchase of treasury shares under stock repurchase program (in shares) | 465,821 | |||||
Purchase of treasury shares under stock repurchase program, cost method | $ (28,066) | (28,066) | ||||
Exercise of stock options and vesting of restricted stock units (in shares) | 206,418 | |||||
Exercise of stock options and vesting of restricted stock units | 0 | 0 | ||||
Employee taxes paid for withheld shares upon equity award settlement | (18,426) | (18,426) | ||||
Stock-based compensation | 30,005 | 29,995 | 10 | |||
Restricted stock grants (in shares) | 519,009 | |||||
Restricted stock grants | 1 | $ 1 | ||||
Restricted stock cancellations (in shares) | (34,789) | |||||
Other comprehensive income | 6,660 | 6,660 | ||||
Balance (in shares) at Mar. 31, 2021 | 61,595,276 | |||||
Balance at Mar. 31, 2021 | $ 416,160 | $ 62 | $ 574,958 | $ (399,583) | $ 4,163 | $ 236,560 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | 1. Organization We are the world’s leading cloud software company powering social good. Serving the entire social good community—nonprofits, higher education institutions, K–12 schools, healthcare organizations, faith communities, arts and cultural organizations, foundations, companies and individual change agents—we connect and empower organizations to increase their impact through cloud software, services, expertise and data intelligence. Our portfolio is tailored to the unique needs of vertical markets, with solutions for fundraising and CRM, marketing, advocacy, peer-to-peer fundraising, corporate social responsibility, school management, ticketing, grantmaking, financial management, payment processing and analytics. Serving the industry for nearly four decades, we are headquartered in Charleston, South Carolina, and have operations in the United States, Australia, Canada, Costa Rica and the United Kingdom. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
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 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 consolidated balance sheet at December 31, 2020 has been derived from the audited consolidated financial statements at that date. Operating results and cash flows for the three months ended March 31, 2021 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2021, 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 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, 2020, and other forms filed with the SEC from time to time. Basis of consolidation The 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 ("CEO"). Risks and uncertainties related to COVID-19 We are subject to risks and uncertainties as a result of the global COVID-19 pandemic. We believe that COVID-19 may continue to impact our vertical markets and geographies, but the significance and duration of the impact on our business cannot be determined at this time due to numerous uncertainties, including the duration of the outbreak, travel restrictions and business closures, the effectiveness of vaccination programs and other actions taken to contain the disease and other unforeseeable consequences. 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 development costs, our allowances for credit losses and sales returns, costs of obtaining contracts, valuation of derivative instruments and loss contingencies, among others. Changes in the facts or circumstances underlying these estimates, including due to COVID-19, 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 new or material changes to our significant accounting policies described in our Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on February 23, 2021. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 3. Goodwill and Other Intangible Assets The change in goodwill during the three months ended March 31, 2021, consisted of the following: (dollars in thousands) Total Balance at December 31, 2020 $ 635,854 Effect of foreign currency translation 1,259 Balance at March 31, 2021 $ 637,113 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 4. Earnings (Loss) Per Share We compute basic earnings (loss) per share by dividing net income 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 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 reflect 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 the exercise of stock options, settlement of stock appreciation rights and vesting of restricted stock awards and units. Diluted loss per share for the three months ended March 31, 2021 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 March 31, (dollars in thousands, except per share amounts) 2021 2020 Numerator: Net (loss) income $ (164) $ 4,639 Denominator: Weighted average common shares 47,363,197 48,036,300 Add effect of dilutive securities: Stock-based awards — 419,451 Weighted average common shares assuming dilution 47,363,197 48,455,751 Earnings (loss) per share: Basic $ — $ 0.10 Diluted $ — $ 0.10 Anti-dilutive shares excluded from calculations of diluted earnings (loss) per share 1,360,378 1,170,289 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
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 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) Level 1 Level 2 Level 3 Total Fair value as of March 31, 2021 Financial assets: Derivative instruments $ — $ 2,851 $ — $ 2,851 Total financial assets $ — $ 2,851 $ — $ 2,851 Financial liabilities: Derivative instruments $ — $ 1,431 $ — $ 1,431 Total financial liabilities $ — $ 1,431 $ — $ 1,431 Fair value as of December 31, 2020 Financial liabilities: Derivative instruments $ — $ 4,159 $ — $ 4,159 Total financial liabilities $ — $ 4,159 $ — $ 4,159 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. The fair value of our interest rate swaps was based on model-driven valuations using LIBOR rates, which are observable at commonly quoted intervals. Accordingly, our interest rate swaps are classified within Level 2 of the fair value hierarchy. The Financial Co nduct Authority in the U.K. has stated that it plans to phase out LIBOR by the end of calendar year 2021. We do not currently anticipate a significant impact to our financial position or results of operations as a result of this action as we expect that our financial contracts currently indexed to LIBOR will either expire or be modified without significant financial impact before the p hase out occurs. 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 March 31, 2021 and December 31, 2020, due to the immediate or short-term maturity of these instruments. We believe the carrying amount of our debt approximates its fair value at March 31, 2021 and December 31, 2020, as the debt bears interest rates that approximate market value. As LIBOR rates are observable at commonly quoted intervals, our debt under the 2020 Credit Facility (as defined below) is classified within Level 2 of the fair value hierarchy. Our fixed rate debt is also classified within Level 2 of the fair value hierarchy. We did not transfer any assets or liabilities among the levels within the fair value hierarchy during the three months ended March 31, 2021. Additionally, we did not hold any Level 3 assets or liabilities during the three months ended March 31, 2021. 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. |
Consolidated Financial Statemen
Consolidated Financial Statement Details | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidated Financial Statement Details | 6. Consolidated Financial Statement Details Restricted cash (dollars in thousands) March 31, December 31, Restricted cash due to customers $ 254,002 $ 607,943 Real estate escrow balances 1,156 1,276 Total restricted cash 255,158 609,219 Prepaid expenses and other assets (dollars in thousands) March 31, December 31, Costs of obtaining contracts (1)(2) $ 83,421 $ 84,914 Prepaid software maintenance and subscriptions (3) 33,113 24,471 Receivables for probable insurance recoveries (4) 15,723 6,288 Implementation costs for cloud computing arrangements, net (5)(6) 11,451 11,298 Unbilled accounts receivable 7,660 10,385 Prepaid insurance 6,397 1,426 Derivative instruments 2,851 — Taxes, prepaid and receivable 1,486 1,891 Other assets 10,015 10,332 Total prepaid expenses and other assets 172,117 151,005 Less: Long-term portion 74,022 72,639 Prepaid expenses and other current assets $ 98,095 $ 78,366 (1) Amortization expense from costs of obtaining contracts was $9.2 million and $9.5 million for the three months ended March 31, 2021 and 2020, respectively. (2) The current portion of costs of obtaining contracts as of March 31, 2021 and December 31, 2020 was $31.6 million and $31.9 million, respectively. (3) The current portion of prepaid software maintenance and subscriptions as of March 31, 2021 and December 31, 2020 was $28.0 million and $19.8 million, respectively. (4) See discussion of the Security Incident at Note 9. (5) These costs primarily relate to the multi-year implementations of our new global enterprise resource planning and customer relationship management systems. (6) Amortization expense from capitalized cloud computing implementation costs was insignificant for the three months ended March 31, 2021 and 2020, respectively. Accumulated amortization for these costs was $1.6 million as of March 31, 2021 and $1.1 million as of December 31, 2020. Accrued expenses and other liabilities (dollars in thousands) March 31, December 31, Taxes payable (1) $ 16,458 $ 19,577 Accrued legal costs 12,055 4,808 Operating lease liabilities, current portion 7,191 9,359 Customer credit balances 5,891 5,874 Accrued commissions and salaries 5,524 5,010 Unrecognized tax benefit 3,546 3,351 Accrued health care costs 2,389 2,341 Accrued vacation costs 2,304 2,311 Derivative instruments 1,431 4,159 Other liabilities 5,663 6,304 Total accrued expenses and other liabilities 62,452 63,094 Less: Long-term portion 9,439 10,866 Accrued expenses and other current liabilities $ 53,013 $ 52,228 (1) We deferred payments of the employer's portion of Social Security taxes during 2020 under the Coronavirus, Aid, Relief and Economic Security Act ("CARES Act"), half of which is due by the end of calendar year 2021 with the remainder due by the end of calendar year 2022. Other (expense) income, net Three months ended March 31, (dollars in thousands) 2021 2020 Interest income $ 152 $ 522 Other (expense) income, net (1,162) 548 Other (expense) income, net $ (1,010) $ 1,070 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2021 | |
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) March 31, December 31, March 31, December 31, Credit facility: Revolving credit loans $ 93,425 $ 69,625 1.80 % 1.83 % Term loans 397,500 400,000 3.13 % 3.12 % Real estate loans 60,358 60,626 5.22 % 5.22 % Other debt 2,232 3,926 5.00 % 5.00 % Total debt 553,515 534,177 3.14 % 3.21 % Less: Unamortized discount and debt issuance costs 2,716 3,144 Less: Debt, current portion 12,875 12,840 2.67 % 2.61 % Debt, net of current portion $ 537,924 $ 518,193 3.15 % 3.22 % 2020 credit facility In October 2020, we entered into a five-year $900.0 million senior credit facility (the "2020 Credit Facility"). At March 31, 2021, we were in compliance with our debt covenants under the 2020 Credit Facility. 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 an aggregate outstanding principal amount of $61.1 million (collectively, the “Real Estate Loans”). At March 31, 2021, 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 financing agreements as of March 31, 2021: (dollars in thousands) Term Number of First Annual Payment Due Original Loan Value Effective dates of agreements: December 2019 51 4 January 2020 $ 2,150 January 2020 39 3 March 2020 3,470 As of March 31, 2021, the required annual maturities related to the 2020 Credit Facility, the Real Estate Loans and our other debt were as follows: Years ending December 31, Annual 2021 - remaining $ 8,378 2022 12,985 2023 11,982 2024 11,609 2025 455,209 Thereafter 53,352 Total required maturities $ 553,515 |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives Instruments | 8. Derivative Instruments Cash flow hedges We generally use derivative instruments to manage our variable interest rate risk. We have entered into interest rate swap agreements, which effectively convert portions of our variable rate debt under the 2020 Credit Facility to a fixed rate for the term of the swap agreements. We designated each of the interest rate swap agreements as a cash flow hedge at the inception of the contracts. The terms and notional values of our derivative instruments were as follows as of March 31, 2021: (dollars in thousands) Term of derivative instrument Notional Derivative instruments designated as hedging instruments: Interest rate swap July 2017 - July 2021 $ 150,000 Interest rate swap February 2018 - June 2021 50,000 Interest rate swap June 2019 - June 2021 75,000 Interest rate swap November 2020 - October 2024 60,000 Interest rate swap November 2020 - October 2024 60,000 $ 395,000 Forward-starting interest rate swap June 2021 - October 2024 120,000 Forward-starting interest rate swap July 2021 - October 2024 120,000 $ 240,000 The fair values of our derivative instruments were as follows as of: Asset derivatives Liability derivatives (dollars in thousands) Balance sheet location March 31, December 31, Balance sheet location March 31, December 31, Derivative instruments designated as hedging instruments: Interest rate swaps, current portion Prepaid expenses $ — $ — Accrued expenses $ 1,431 $ 2,698 Interest rate swaps, long-term portion Other assets 2,851 — Other liabilities — 1,461 Total derivative instruments designated as hedging instruments $ 2,851 $ — $ 1,431 $ 4,159 The effects of derivative instruments in cash flow hedging relationships were as follows: Gain (loss) recognized Location Gain (loss) reclassified from accumulated (dollars in thousands) March 31, Three months ended March 31, 2021 Interest rate swaps $ 1,420 Interest expense $ (1,373) March 31, Three months ended March 31, 2020 Interest rate swaps $ (5,979) Interest expense $ (205) 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. 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) is reclassified from accumulated other comprehensive income (loss) to current earnings. The estimated accumulated other comprehensive loss as of March 31, 2021 that is expected to be reclassified into earnings within the next twelve months is $2.2 million. There were no ineffective portions of our interest rate swap derivatives during the three months ended |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021, we had operating leases for office space that had not yet commenced with future rent payments of $3.5 million. These operating leases are expected to commence during 2021 with lease terms of 3 years. The components of lease expense were as follows: Three months ended March 31, (dollars in thousands) 2021 2020 Operating lease cost (1) $ 2,841 $ 6,311 Variable lease cost 699 1,258 Sublease income (460) (913) Net lease cost $ 3,080 $ 6,656 (1) Includes short-term lease costs, which were immaterial. Other commitments The term loans under the 2020 Credit Facility 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 2020 Credit Facility in October 2025. 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 March 31, 2021, the remaining aggregate minimum purchase commitment under these arrangements was approximately $79.0 million through 2024. 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. If we determine that it is probable that a loss has been incurred related to solution or service indemnifications, any such loss that could be reasonably estimated would be recognized. We have not identified any losses and, accordingly, we have not recorded a liability related to 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 inquiries, 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 legal costs 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. We further believe that the amount or range of reasonably possible losses related to such pending or threatened legal proceedings will not have a material adverse effect on our business, operating results, cash flows, or financial condition should such litigation be resolved unfavorably. It is possible, nevertheless, 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 have no reason to believe that any data went beyond the cybercriminal, was or will be misused, or will be disseminated or otherwise made available publicly. Our investigation into the Security Incident by our cybersecurity team and third-party forensic advisors remains ongoing. As a result of the Security Incident, we are currently subject to certain legal proceedings, claims, inquiries and investigations, as discussed below, and could be the subject of additional legal proceedings, claims, inquires 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 has reduced our financial exposure related to the Security Incident, and we will continue to seek recoveries under these insurance policies. Although it is possible that total losses related to the Security Incident will ultimately exceed the limits of our insurance coverage, we are currently unable to determine if or when that will be the case and, if so, the approximate amount or range of any such excess. In the three months ended March 31, 2021, we recorded $12.8 million of expenses related to the Security Incident and offsetting probable insurance recoveries of $12.8 million. As of March 31, 2021, we have recorded cumulative expenses related to the Security Incident of $22.6 million and cumulative probable insurance recoveries of $22.1 million. Due to the time required to submit and process such insurance claims, we have not yet received all of the accrued insurance recoveries. Of the insurance recoveries recorded, $6.4 million had been paid as of March 31, 2021. Recorded expenses consisted primarily of payments to third-party service providers and consultants, including legal fees. We present expenses and insurance recoveries related to the Security Incident in general and administrative expense on our condensed consolidated statements of comprehensive income. We expect to continue to experience significant expenses related to our response to the Security Incident, resolution of legal proceedings, claims, inquiries and investigations discussed below, and our efforts to further enhance our security measures, which expenses may be material. Based on our analysis of the factors described above, we have not recorded a liability related to the Security Incident as of March 31, 2021 because we are unable at this time to reasonably estimate the possible loss or range of loss. Customer claims. To date, we have received approximately 630 claims for reimbursement of expenses from customers or their attorneys in the U.S., U.K. and Canada related to the Security Incident (none of which have as yet been filed in court or in arbitration). Possible exposure could result from our customers’ costs and expenses associated with notifying their own customers of the Security Incident and taking steps to assure that personal information has not been compromised as a result of the Security Incident. We are in the process of analyzing individual customer contracts into which we have entered, the specific claims made and applicable law. Customer constituent class actions. Presently, we are a defendant in 30 putative consumer class action cases [27 in U.S. federal courts (some of which have been consolidated under multi district litigation to a single federal court), 1 in a U.S. state court and 2 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. 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 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. Governmental inquiries and investigations. To date, we have received a consolidated, multi-state Civil Investigative Demand issued on behalf of 47 state Attorneys General and the District of Columbia and a separate Civil Investigative Demand from the office of the Illinois Attorney General’s Office relating to the Security Incident. In addition, we have received communications, inquires and requests from the U.S. Federal Trade Commission, the U.S. Securities and Exchange Commission, the U.S. Department of Health and Human Services, the Information Commissioner’s Office in the United Kingdom (the “ICO”) under the U.K. Data Protection Act 2018, the Office of the Australian Information Commissioner and the Office of the Privacy Commissioner of Canada. We are cooperating with these offices and responding to their inquiries, 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 inquiries and investigations could result in adverse judgements, settlements, fines, penalties, or other resolution, the amount, scope and timing of which we are currently unable to predict, but could be material. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes Our income tax provision and effective income tax rates, including the effects of period-specific events, were: Three months ended March 31, (dollars in thousands) 2021 2020 Income tax provision $ 684 $ 696 Effective income tax rate 131.5 % 13.0 % The increase in our effective income tax rate for the three months ended March 31, 2021, when compared to the same period in 2020, was primarily attributable to higher 2021 discrete tax expense against lower pre-tax income. The 2020 effective income tax rate was positively impacted by benefits attributable to stock-based compensation. The 2021 effective income tax rate was negatively impacted by tax expense attributable to stock-based compensation against lower pre-tax income. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 11. Stock-based Compensation Stock-based compensation expense is allocated to cost of revenue and operating expenses on the condensed consolidated statements of comprehensive income based on where the associated employee’s compensation is recorded. The following table summarizes stock-based compensation expense: Three months ended March 31, (dollars in thousands) 2021 2020 Included in cost of revenue: Cost of recurring $ 2,411 $ 470 Cost of one-time services and other 2,947 395 Total included in cost of revenue 5,358 865 Included in operating expenses: Sales, marketing and customer success 5,428 2,478 Research and development 6,714 2,799 General and administrative 12,505 7,438 Total included in operating expenses 24,647 12,715 Total stock-based compensation expense $ 30,005 $ 13,580 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | 12. Stockholders' Equity Stock repurchase program In November 2020, our Board of Directors reauthorized and expanded a stock repurchase program that authorizes us to purchase up to $250.0 million of our outstanding shares of common stock. The program does not have an expiration date. Under the 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 may be limited, suspended or discontinued at any time without prior notice. Under the 2020 Credit Facility, we have restrictions on our ability to repurchase shares of our common stock. We account for purchases of treasury stock under the cost method. During the three months ended March 31, 2021, we purchased 465,821 shares for $28.1 million. The remaining amount available to purchase stock under the stock repurchase program was $180.9 million as of March 31, 2021. 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 March 31, (dollars in thousands) 2021 2020 Accumulated other comprehensive loss, beginning of period $ (2,497) $ (5,290) By component: Gains and losses on cash flow hedges: Accumulated other comprehensive loss balance, beginning of period $ (3,101) $ (1,323) Other comprehensive income (loss) before reclassifications, net of tax effects of $(1,100) and $1,154 3,130 (3,273) Amounts reclassified from accumulated other comprehensive income (loss) to interest expense 1,376 205 Tax benefit included in provision for income taxes (357) (54) Total amounts reclassified from accumulated other comprehensive income (loss) 1,019 151 Net current-period other comprehensive income (loss) 4,149 (3,122) Accumulated other comprehensive income (loss) balance, end of period $ 1,048 $ (4,445) Foreign currency translation adjustment: Accumulated other comprehensive income (loss) balance, beginning of period $ 604 $ (3,967) Translation adjustments 2,511 (5,728) Accumulated other comprehensive income (loss) balance, end of period 3,115 (9,695) Accumulated other comprehensive income (loss), end of period $ 4,163 $ (14,140) |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | 13. Revenue Recognition Transaction price allocated to the remaining performance obligations As of March 31, 2021, approximately $776 million of revenue is expected to be recognized from remaining performance obligations. We expect to recognize revenue on approximately 60% 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 (i) contracts with an original expected length of one year or less (one-time services); and (ii) 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 March 31, 2021 and December 31, 2020 were insignificant. Our opening and closing balances of deferred revenue were as follows: (in thousands) March 31, December 31, Total deferred revenue $ 294,520 $ 316,914 The decrease in deferred revenue during the three months ended March 31, 2021 was primarily due to a seasonal decrease 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 resulting in our lowest balance of deferred revenue at the end of our first quarter. The amount of revenue recognized during the three months ended March 31, 2021 that was included in the deferred reven ue balance at the beginning of the period was approximately $134 million. The amount of revenue recognized during the three months ended March 31, 2021 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 March 31, (dollars in thousands) 2021 2020 United States $ 185,327 $ 193,959 United Kingdom 22,305 15,825 Other countries 11,559 13,837 Total revenue $ 219,191 $ 223,621 The General Markets Group ("GMG"), the Enterprise Markets Group ("EMG"), and the International Markets Group ("IMG") comprised our go-to-market organizations as of March 31, 2021. The following is a description of each market group as of that date: • The GMG focuses on sales primarily to all K-12 private schools, faith communities and arts and cultural organizations, as well as emerging and mid-sized prospects in the U.S.; • The EMG focuses on sales primarily to all healthcare and higher education institutions, corporations and foundations, as well as large and/or strategic prospects in the U.S.; and • The IMG focuses on sales primarily to all prospects and customers outside of the U.S. The following table presents our revenue by market group: Three months ended March 31, (dollars in thousands) 2021 2020 GMG $ 93,339 $ 95,453 EMG 89,527 98,123 IMG 36,370 30,081 Other (45) (36) Total revenue $ 219,191 $ 223,621 The following table presents our recurring revenue by type: Three months ended March 31, (dollars in thousands) 2021 2020 Contractual recurring $ 146,821 $ 147,744 Transactional recurring 59,929 57,123 Total recurring revenue $ 206,750 $ 204,867 |
Basis of Presentation (Policy)
Basis of Presentation (Policy) | 3 Months Ended |
Mar. 31, 2021 | |
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 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 consolidated balance sheet at December 31, 2020 has been derived from the audited consolidated financial statements at that date. Operating results and cash flows for the three months ended March 31, 2021 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2021, 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 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, 2020, and other forms filed with the SEC from time to time. |
Basis of consolidation | Basis of consolidation The 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 ("CEO"). |
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 development costs, our allowances for credit losses and sales returns, costs of obtaining contracts, valuation of derivative instruments and loss contingencies, among others. Changes in the facts or circumstances underlying these estimates, including due to COVID-19, could result in material changes and actual results could materially differ from these estimates. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Change in Goodwill | The change in goodwill during the three months ended March 31, 2021, consisted of the following: (dollars in thousands) Total Balance at December 31, 2020 $ 635,854 Effect of foreign currency translation 1,259 Balance at March 31, 2021 $ 637,113 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, (dollars in thousands, except per share amounts) 2021 2020 Numerator: Net (loss) income $ (164) $ 4,639 Denominator: Weighted average common shares 47,363,197 48,036,300 Add effect of dilutive securities: Stock-based awards — 419,451 Weighted average common shares assuming dilution 47,363,197 48,455,751 Earnings (loss) per share: Basic $ — $ 0.10 Diluted $ — $ 0.10 Anti-dilutive shares excluded from calculations of diluted earnings (loss) per share 1,360,378 1,170,289 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | 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) Level 1 Level 2 Level 3 Total Fair value as of March 31, 2021 Financial assets: Derivative instruments $ — $ 2,851 $ — $ 2,851 Total financial assets $ — $ 2,851 $ — $ 2,851 Financial liabilities: Derivative instruments $ — $ 1,431 $ — $ 1,431 Total financial liabilities $ — $ 1,431 $ — $ 1,431 Fair value as of December 31, 2020 Financial liabilities: Derivative instruments $ — $ 4,159 $ — $ 4,159 Total financial liabilities $ — $ 4,159 $ — $ 4,159 |
Consolidated Financial Statem_2
Consolidated Financial Statement Details (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Components of Restricted Cash | Restricted cash (dollars in thousands) March 31, December 31, Restricted cash due to customers $ 254,002 $ 607,943 Real estate escrow balances 1,156 1,276 Total restricted cash 255,158 609,219 |
Components of Prepaid Expenses and Other Assets | Prepaid expenses and other assets (dollars in thousands) March 31, December 31, Costs of obtaining contracts (1)(2) $ 83,421 $ 84,914 Prepaid software maintenance and subscriptions (3) 33,113 24,471 Receivables for probable insurance recoveries (4) 15,723 6,288 Implementation costs for cloud computing arrangements, net (5)(6) 11,451 11,298 Unbilled accounts receivable 7,660 10,385 Prepaid insurance 6,397 1,426 Derivative instruments 2,851 — Taxes, prepaid and receivable 1,486 1,891 Other assets 10,015 10,332 Total prepaid expenses and other assets 172,117 151,005 Less: Long-term portion 74,022 72,639 Prepaid expenses and other current assets $ 98,095 $ 78,366 (1) Amortization expense from costs of obtaining contracts was $9.2 million and $9.5 million for the three months ended March 31, 2021 and 2020, respectively. (2) The current portion of costs of obtaining contracts as of March 31, 2021 and December 31, 2020 was $31.6 million and $31.9 million, respectively. (3) The current portion of prepaid software maintenance and subscriptions as of March 31, 2021 and December 31, 2020 was $28.0 million and $19.8 million, respectively. (4) See discussion of the Security Incident at Note 9. (5) These costs primarily relate to the multi-year implementations of our new global enterprise resource planning and customer relationship management systems. (6) Amortization expense from capitalized cloud computing implementation costs was insignificant for the three months ended March 31, 2021 and 2020, respectively. Accumulated amortization for these costs was $1.6 million as of March 31, 2021 and $1.1 million as of December 31, 2020. |
Components of Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities (dollars in thousands) March 31, December 31, Taxes payable (1) $ 16,458 $ 19,577 Accrued legal costs 12,055 4,808 Operating lease liabilities, current portion 7,191 9,359 Customer credit balances 5,891 5,874 Accrued commissions and salaries 5,524 5,010 Unrecognized tax benefit 3,546 3,351 Accrued health care costs 2,389 2,341 Accrued vacation costs 2,304 2,311 Derivative instruments 1,431 4,159 Other liabilities 5,663 6,304 Total accrued expenses and other liabilities 62,452 63,094 Less: Long-term portion 9,439 10,866 Accrued expenses and other current liabilities $ 53,013 $ 52,228 (1) We deferred payments of the employer's portion of Social Security taxes during 2020 under the Coronavirus, Aid, Relief and Economic Security Act ("CARES Act"), half of which is due by the end of calendar year 2021 with the remainder due by the end of calendar year 2022. |
Components of Other Income and Expense | Other (expense) income, net Three months ended March 31, (dollars in thousands) 2021 2020 Interest income $ 152 $ 522 Other (expense) income, net (1,162) 548 Other (expense) income, net $ (1,010) $ 1,070 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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) March 31, December 31, March 31, December 31, Credit facility: Revolving credit loans $ 93,425 $ 69,625 1.80 % 1.83 % Term loans 397,500 400,000 3.13 % 3.12 % Real estate loans 60,358 60,626 5.22 % 5.22 % Other debt 2,232 3,926 5.00 % 5.00 % Total debt 553,515 534,177 3.14 % 3.21 % Less: Unamortized discount and debt issuance costs 2,716 3,144 Less: Debt, current portion 12,875 12,840 2.67 % 2.61 % Debt, net of current portion $ 537,924 $ 518,193 3.15 % 3.22 % |
Annual Maturities Related to Credit Facility, Real Estate Loans and other debt | As of March 31, 2021, the required annual maturities related to the 2020 Credit Facility, the Real Estate Loans and our other debt were as follows: Years ending December 31, Annual 2021 - remaining $ 8,378 2022 12,985 2023 11,982 2024 11,609 2025 455,209 Thereafter 53,352 Total required maturities $ 553,515 |
Summary of Other Debt | The following table summarizes our currently effective financing agreements as of March 31, 2021: (dollars in thousands) Term Number of First Annual Payment Due Original Loan Value Effective dates of agreements: December 2019 51 4 January 2020 $ 2,150 January 2020 39 3 March 2020 3,470 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Swaps | The terms and notional values of our derivative instruments were as follows as of March 31, 2021: (dollars in thousands) Term of derivative instrument Notional Derivative instruments designated as hedging instruments: Interest rate swap July 2017 - July 2021 $ 150,000 Interest rate swap February 2018 - June 2021 50,000 Interest rate swap June 2019 - June 2021 75,000 Interest rate swap November 2020 - October 2024 60,000 Interest rate swap November 2020 - October 2024 60,000 $ 395,000 Forward-starting interest rate swap June 2021 - October 2024 120,000 Forward-starting interest rate swap July 2021 - October 2024 120,000 $ 240,000 |
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 March 31, December 31, Balance sheet location March 31, December 31, Derivative instruments designated as hedging instruments: Interest rate swaps, current portion Prepaid expenses $ — $ — Accrued expenses $ 1,431 $ 2,698 Interest rate swaps, long-term portion Other assets 2,851 — Other liabilities — 1,461 Total derivative instruments designated as hedging instruments $ 2,851 $ — $ 1,431 $ 4,159 |
Effects of Derivative Instruments in Cash Flow Hedging Relationships | The effects of derivative instruments in cash flow hedging relationships were as follows: Gain (loss) recognized Location Gain (loss) reclassified from accumulated (dollars in thousands) March 31, Three months ended March 31, 2021 Interest rate swaps $ 1,420 Interest expense $ (1,373) March 31, Three months ended March 31, 2020 Interest rate swaps $ (5,979) Interest expense $ (205) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Components of Lease Expense | The components of lease expense were as follows: Three months ended March 31, (dollars in thousands) 2021 2020 Operating lease cost (1) $ 2,841 $ 6,311 Variable lease cost 699 1,258 Sublease income (460) (913) Net lease cost $ 3,080 $ 6,656 (1) Includes short-term lease costs, which were immaterial. |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rates | Our income tax provision and effective income tax rates, including the effects of period-specific events, were: Three months ended March 31, (dollars in thousands) 2021 2020 Income tax provision $ 684 $ 696 Effective income tax rate 131.5 % 13.0 % |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock-Based Compensation Expense | The following table summarizes stock-based compensation expense: Three months ended March 31, (dollars in thousands) 2021 2020 Included in cost of revenue: Cost of recurring $ 2,411 $ 470 Cost of one-time services and other 2,947 395 Total included in cost of revenue 5,358 865 Included in operating expenses: Sales, marketing and customer success 5,428 2,478 Research and development 6,714 2,799 General and administrative 12,505 7,438 Total included in operating expenses 24,647 12,715 Total stock-based compensation expense $ 30,005 $ 13,580 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, (dollars in thousands) 2021 2020 Accumulated other comprehensive loss, beginning of period $ (2,497) $ (5,290) By component: Gains and losses on cash flow hedges: Accumulated other comprehensive loss balance, beginning of period $ (3,101) $ (1,323) Other comprehensive income (loss) before reclassifications, net of tax effects of $(1,100) and $1,154 3,130 (3,273) Amounts reclassified from accumulated other comprehensive income (loss) to interest expense 1,376 205 Tax benefit included in provision for income taxes (357) (54) Total amounts reclassified from accumulated other comprehensive income (loss) 1,019 151 Net current-period other comprehensive income (loss) 4,149 (3,122) Accumulated other comprehensive income (loss) balance, end of period $ 1,048 $ (4,445) Foreign currency translation adjustment: Accumulated other comprehensive income (loss) balance, beginning of period $ 604 $ (3,967) Translation adjustments 2,511 (5,728) Accumulated other comprehensive income (loss) balance, end of period 3,115 (9,695) Accumulated other comprehensive income (loss), end of period $ 4,163 $ (14,140) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Contract Balances | Our opening and closing balances of deferred revenue were as follows: (in thousands) March 31, December 31, Total deferred revenue $ 294,520 $ 316,914 |
Disaggregation of Revenue | The following table presents our revenue by geographic area based on the address of our customers: Three months ended March 31, (dollars in thousands) 2021 2020 United States $ 185,327 $ 193,959 United Kingdom 22,305 15,825 Other countries 11,559 13,837 Total revenue $ 219,191 $ 223,621 The following table presents our revenue by market group: Three months ended March 31, (dollars in thousands) 2021 2020 GMG $ 93,339 $ 95,453 EMG 89,527 98,123 IMG 36,370 30,081 Other (45) (36) Total revenue $ 219,191 $ 223,621 |
Disaggregation Of Revenue, Recurring | The following table presents our recurring revenue by type: Three months ended March 31, (dollars in thousands) 2021 2020 Contractual recurring $ 146,821 $ 147,744 Transactional recurring 59,929 57,123 Total recurring revenue $ 206,750 $ 204,867 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Change in Goodwill) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Goodwill [Roll Forward] | |
Balance at December 31, 2020 | $ 635,854 |
Effect of foreign currency translation | 1,259 |
Balance at March 31, 2021 | $ 637,113 |
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 | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Net (loss) income | $ (164) | $ 4,639 |
Weighted average common shares | 47,363,197 | 48,036,300 |
Stock-based awards | 0 | 419,451 |
Weighted average common shares assuming dilution | 47,363,197 | 48,455,751 |
Earnings (Loss) Per Share, Basic and Diluted [Abstract] | ||
Basic earnings per share | $ 0 | $ 0.10 |
Diluted earnings per share | $ 0 | $ 0.10 |
Anti-dilutive shares excluded from calculations of diluted earnings (loss) per share | 1,360,378 | 1,170,289 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - Fair value measurements, recurring [Member] - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 2,851 | |
Total financial assets | 2,851 | |
Derivative liabilities | 1,431 | $ 4,159 |
Total financial liabilities | 1,431 | 4,159 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | |
Total financial assets | 0 | |
Derivative liabilities | 0 | 0 |
Total financial liabilities | 0 | 0 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 2,851 | |
Total financial assets | 2,851 | |
Derivative liabilities | 1,431 | 4,159 |
Total financial liabilities | 1,431 | 4,159 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | |
Total financial assets | 0 | |
Derivative liabilities | 0 | 0 |
Total financial liabilities | $ 0 | $ 0 |
Consolidated Financial Statem_3
Consolidated Financial Statement Details (Components of Restricted Cash) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Restricted cash due to customers | $ 254,002 | $ 607,943 |
Real estate escrow balances | 1,156 | 1,276 |
Total restricted cash | $ 255,158 | $ 609,219 |
Consolidated Financial Statem_4
Consolidated Financial Statement Details (Components of Prepaid Expenses and Other Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Costs of obtaining contracts | [1],[2] | $ 83,421 | $ 84,914 | ||
Prepaid software maintenance and subscriptions, current and long-term | [3] | 33,113 | 24,471 | ||
Receivables for probable insurance recoveries | 15,723 | [4] | 6,288 | ||
Implementation costs for cloud computing arrangements | [5],[6] | 11,451 | 11,298 | ||
Unbilled accounts receivable | 7,660 | 10,385 | |||
Prepaid insurance | 6,397 | 1,426 | |||
Derivative instruments | 2,851 | 0 | |||
Taxes, prepaid and receivable | 1,486 | 1,891 | |||
Other assets | 10,015 | 10,332 | |||
Total prepaid expenses and other assets | 172,117 | 151,005 | |||
Less: Long-term portion | 74,022 | 72,639 | |||
Prepaid expenses and other current assets | 98,095 | 78,366 | |||
Amortization expense from costs of obtaining contracts | 9,200 | $ 9,500 | |||
Current portion of costs of obtaining contracts | 31,600 | 31,900 | |||
Prepaid software maintenance and subscriptions, current | 28,000 | 19,800 | |||
Implementation costs for cloud computing arrangements, accumulated amortization | $ 1,600 | $ 1,100 | |||
[1] | Amortization expense from costs of obtaining contracts was $9.2 million and $9.5 million for the three months ended March 31, 2021 and 2020, respectively. | ||||
[2] | The current portion of costs of obtaining contracts as of March 31, 2021 and December 31, 2020 was $31.6 million and $31.9 million, respectively. | ||||
[3] | The current portion of prepaid software maintenance and subscriptions as of March 31, 2021 and December 31, 2020 was $28.0 million and $19.8 million, respectively. (4) See discussion of the Security Incident at Note 9. | ||||
[4] | See discussion of the Security Incident at Note 9. | ||||
[5] | Amortization expense from capitalized cloud computing implementation costs was insignificant for the three months ended March 31, 2021 and 2020, respectively. Accumulated amortization for these costs was $1.6 million as of March 31, 2021 and $1.1 million as of December 31, 2020. | ||||
[6] | These costs primarily relate to the multi-year implementations of our new global enterprise resource planning and customer relationship management systems. |
Consolidated Financial Statem_5
Consolidated Financial Statement Details (Components of Accrued Expenses and Other Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Taxes payable | [1] | $ 16,458 | $ 19,577 |
Accrued legal costs | 12,055 | 4,808 | |
Operating lease liabilities, current portion | 7,191 | 9,359 | |
Customer credit balances | 5,891 | 5,874 | |
Accrued commissions and salaries | 5,524 | 5,010 | |
Unrecognized tax benefit | 3,546 | 3,351 | |
Accrued health care costs | 2,389 | 2,341 | |
Accrued vacation costs | 2,304 | 2,311 | |
Derivative instruments | 1,431 | 4,159 | |
Other liabilities | 5,663 | 6,304 | |
Total accrued expenses and other liabilities | 62,452 | 63,094 | |
Less: Long-term portion | 9,439 | 10,866 | |
Accrued expenses and other current liabilities | $ 53,013 | $ 52,228 | |
[1] | We deferred payments of the employer's portion of Social Security taxes during 2020 under the Coronavirus, Aid, Relief and Economic Security Act ("CARES Act"), half of which is due by the end of calendar year 2021 with the remainder due by the end of calendar year 2022. |
Consolidated Financial Statem_6
Consolidated Financial Statement Details (Components of Other Income and Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Interest income | $ 152 | $ 522 |
Other (expense) income, net | (1,162) | 548 |
Other (expense) income, net | $ (1,010) | $ 1,070 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Oct. 30, 2020 | Aug. 31, 2020 |
Business Acquisition [Line Items] | ||||
Credit facility, maximum borrowing capacity | $ 900,000 | |||
Aggregate principal amount assumed | $ 553,515 | $ 534,177 | ||
Global HQ [Member] | ||||
Business Acquisition [Line Items] | ||||
Aggregate principal amount assumed | $ 61,100 |
Debt (Summary of Debt) (Details
Debt (Summary of Debt) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Line of Credit Facility [Line Items] | ||
Debt, gross | $ 553,515 | $ 534,177 |
Other debt | 2,232 | 3,926 |
Less: Unamortized discount and debt issuance costs | 2,716 | 3,144 |
Less: Debt, current portion | 12,875 | 12,840 |
Debt, net of current portion | $ 537,924 | $ 518,193 |
Weighted average effective interest rate | 3.14% | 3.21% |
Revolving credit loans [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt, gross | $ 93,425 | $ 69,625 |
Weighted average effective interest rate | 1.80% | 1.83% |
Term loans [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt, gross | $ 397,500 | $ 400,000 |
Weighted average effective interest rate | 3.13% | 3.12% |
Mortgages [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt, gross | $ 60,358 | $ 60,626 |
Weighted average effective interest rate | 5.22% | 5.22% |
Loans payable [Member] | ||
Line of Credit Facility [Line Items] | ||
Weighted average effective interest rate | 5.00% | 5.00% |
Short-term debt [Member] | ||
Line of Credit Facility [Line Items] | ||
Weighted average effective interest rate | 2.67% | 2.61% |
Long-term debt [Member] | ||
Line of Credit Facility [Line Items] | ||
Weighted average effective interest rate | 3.15% | 3.22% |
Debt (Summary of Other Debt) (D
Debt (Summary of Other Debt) (Details) - USD ($) $ in Thousands | Jan. 31, 2020 | Dec. 31, 2019 |
Loans payable [Member] | ||
Debt Instrument [Line Items] | ||
Other debt, face amount | $ 3,470 | $ 2,150 |
Debt (Annual Maturities Related
Debt (Annual Maturities Related to Credit Facility, Real Estate Loans and other debt) (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Debt Disclosure [Abstract] | |
2021 - remaining | $ 8,378 |
2022 | 12,985 |
2023 | 11,982 |
2024 | 11,609 |
2025 | 455,209 |
Thereafter | 53,352 |
Total required maturities | $ 553,515 |
Derivative Instruments (Details
Derivative Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Accumulated other comprehensive loss expected to be reclassified into earnings within next 12 months | $ (2.2) | |
Ineffective portion of interest rate swap(s) | $ 0 | $ 0 |
Derivative Instruments Derivati
Derivative Instruments Derivative Instruments (Schedule of Interest Rate Swaps) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Nov. 30, 2020 | Sep. 30, 2019 | Feb. 28, 2018 | Jul. 31, 2017 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative, notional amount | $ 395,000 | ||||
July 2017 Swap [Member] | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative, notional amount | $ 150,000 | ||||
February 2018 Swap [Member] | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative, notional amount | $ 50,000 | ||||
June 2019 Swap [Member] | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative, notional amount | $ 75,000 | ||||
November 2020 Swap 1 | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative, notional amount | $ 60,000 | ||||
November 2020 Swap 2 | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative, notional amount | 60,000 | ||||
November 2020 Swap 3 | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative, notional amount | 120,000 | ||||
November 2020 Swap 4 | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative, notional amount | $ 120,000 | ||||
Forward-Starting Interest Rate Swaps | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative, notional amount | $ 240,000 |
Derivative Instruments (Fair Va
Derivative Instruments (Fair Value of Derivative Instruments) (Details) - Designated as hedging instrument [Member] - Interest rate swap [Member] - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets, fair value | $ 2,851 | $ 0 |
Derivative liabilities, fair value | 1,431 | 4,159 |
Prepaid expenses and other current assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, current portion | 0 | 0 |
Accrued expenses and other current liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, current portion | 1,431 | 2,698 |
Other assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, long-term portion | 2,851 | 0 |
Other liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities, long-term portion | $ 0 | $ 1,461 |
Derivative Instruments (Effects
Derivative Instruments (Effects of Derivative Instruments in Cash Flow Hedging Relationships) (Details) - Interest rate swap [Member] - Cash flow hedging [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) recognized in accumulated other comprehensive loss | $ 1,420 | $ (5,979) |
Interest expense [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) reclassified from accumulated other comprehensive loss into income | $ (1,373) | $ (205) |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($)cases | |
Lessee, Lease, Description [Line Items] | |
Operating lease, lease not yet commenced, expense | $ 3,500 |
Operating lease, lease not yet commenced, term of contract | 3 years |
Liability insurance, amount, total | $ 50,000 |
Liability insurance, amount, deductible | 250 |
Security incident, expense | 12,800 |
Security incident, accrued insurance recoveries | (12,800) |
Security incident, cumulative expense | 22,600 |
Security incident, cumulative accrued insurance recoveries | (22,100) |
Insurance recoveries | $ (6,400) |
Security incident, number of customer claims | cases | 630 |
Security incident, number of consumer class action cases | cases | 30 |
Security incident, number of state Attorneys General | cases | 47 |
US Federal [Member] | |
Lessee, Lease, Description [Line Items] | |
Security incident, number of consumer class action cases | cases | 27 |
US States [Member] | |
Lessee, Lease, Description [Line Items] | |
Security incident, number of consumer class action cases | cases | 1 |
Canada [Member] | |
Lessee, Lease, Description [Line Items] | |
Security incident, number of consumer class action cases | cases | 2 |
Third-party technology [Member] | |
Long-term Purchase Commitment [Line Items] | |
Remaining aggregate minimum purchase commitment | $ 79,000 |
Commitments and Contingencies_3
Commitments and Contingencies (Components of Lease Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Commitments and Contingencies Disclosure [Abstract] | |||
Operating lease cost | [1] | $ 2,841 | $ 6,311 |
Variable lease cost | 699 | 1,258 | |
Sublease income | (460) | (913) | |
Net lease cost | $ 3,080 | $ 6,656 | |
[1] | Includes short-term lease costs, which were immaterial. |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Income Tax Rates) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Income tax provision | $ 684 | $ 696 |
Effective income tax rate | 131.50% | 13.00% |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Employee Service Stock-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated stock-based compensation expense | $ 30,005 | $ 13,580 |
Cost of recurring [Member] | ||
Employee Service Stock-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated stock-based compensation expense | 2,411 | 470 |
One-time services and other [Member] | ||
Employee Service Stock-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated stock-based compensation expense | 2,947 | 395 |
Total included in cost of revenue [Member] | ||
Employee Service Stock-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated stock-based compensation expense | 5,358 | 865 |
Sales, marketing and customer success [Member] | ||
Employee Service Stock-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated stock-based compensation expense | 5,428 | 2,478 |
Research and development [Member] | ||
Employee Service Stock-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated stock-based compensation expense | 6,714 | 2,799 |
General and administrative [Member] | ||
Employee Service Stock-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated stock-based compensation expense | 12,505 | 7,438 |
Total included in operating expenses [Member] | ||
Employee Service Stock-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated stock-based compensation expense | $ 24,647 | $ 12,715 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Nov. 30, 2020 | |
Equity [Abstract] | ||
Stock repurchase program, authorized amount | $ 250,000 | |
Purchase of treasury shares under stock repurchase program (in shares) | 465,821 | |
Treasury Stock, Value, Acquired, Cost Method | $ 28,066 | |
Stock repurchase program, remaining authorized repurchase amount | $ 180,900 |
Stockholders' Equity (Changes i
Stockholders' Equity (Changes in Accumulated Other Comprehensive Loss by Component) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Accumulated Other Comprehensive Income [Roll Forward] | ||
Accumulated other comprehensive (loss) income, beginning of period | $ (2,497) | $ (5,290) |
Translation adjustments | 2,511 | (5,728) |
Accumulated other comprehensive income (loss), end of period | 4,163 | (14,140) |
Gains and losses on cash flow hedges [Member] | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Accumulated other comprehensive (loss) income, beginning of period | (3,101) | (1,323) |
Other comprehensive (loss) income before reclassifications, net of tax effects | 3,130 | (3,273) |
Amounts reclassified from accumulated other comprehensive income (loss) to interest expense | 1,376 | 205 |
Tax benefit included in provision for income taxes | (357) | (54) |
Total amounts reclassified from accumulated other comprehensive income (loss) | 1,019 | 151 |
Net current-period other comprehensive income (loss) | 4,149 | (3,122) |
Accumulated other comprehensive income (loss), end of period | 1,048 | (4,445) |
Other comprehensive income (loss), unrealized gain (loss) on derivatives arising during period, tax | (1,100) | 1,154 |
Foreign currency translation adjustment [Member] | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Accumulated other comprehensive (loss) income, beginning of period | 604 | (3,967) |
Translation adjustments | 2,511 | (5,728) |
Accumulated other comprehensive income (loss), end of period | $ 3,115 | $ (9,695) |
Revenue Recognition (Details)
Revenue Recognition (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue recognized that was included in deferred revenue at beginning of period | $ 134 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 776 |
Revenue, remaining performance obligation, percentage to be recognized | 60.00% |
Revenue, remaining performance obligation, expected timing of satisfaction | 12 months |
Revenue Recognition (Contract B
Revenue Recognition (Contract Balances) (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Total deferred revenue | $ 294,520 | $ 316,914 |
Revenue Recognition (Disaggrega
Revenue Recognition (Disaggregation of Revenue by Geography) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 219,191 | $ 223,621 |
United States [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 185,327 | 193,959 |
United Kingdom [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 22,305 | 15,825 |
Other countries [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 11,559 | $ 13,837 |
Revenue Recognition (Disaggre_2
Revenue Recognition (Disaggregation of Revenue by Market Group) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 219,191 | $ 223,621 |
GMG [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 93,339 | 95,453 |
EMG [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 89,527 | 98,123 |
IMG [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 36,370 | 30,081 |
Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ (45) | $ (36) |
Revenue Recognition (Disaggre_3
Revenue Recognition (Disaggregation of Recurring Revenue by Type) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 219,191 | $ 223,621 |
Contractual recurring [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 146,821 | 147,744 |
Transactional recurring [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 59,929 | 57,123 |
Recurring [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 206,750 | $ 204,867 |
Uncategorized Items - blkb-2021
Label | Element | Value |
Surrender Of Shares Upon Restricted Stock And Restricted Unit Vesting And Exercise of Stock Appreciation Rights | blkb_SurrenderOfSharesUponRestrictedStockAndRestrictedUnitVestingAndExerciseofStockAppreciationRights | 240,867 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | $ 644,969,000 |