Blackbaud, Inc. (NASDAQ: BLKB) shares fell hard Tuesday, after the company lowered its FY18 earnings and sales guidance.
The company revealed non-GAAP revenue projections were subject to an updated guidance of $844-$854 million, down from previous guidance of $870-$890 million. The updated guidance on non-GAAP free cash flow ranged from $143-$147 million, compared to $165-$175 million.
Reduction in one-time services revenue resulting from the continued business model transformation towards subscriptions-based recurring revenues, representing roughly half of the updated change in the outlook.
The reduction in transaction-based revenue associated with recent shift in trends in consumer behavior within the U.K. market, a shift in the mix of payment methods within its Tuition Management business, and less major one-time events during 2018.
Also today, the company announced the Cloud Solution for Higher Education with the introduction of a new Education Management portfolio and the addition of stewardship management and guided fundraising tailored for higher education.
CEO Mike Gianoni"Today's announcement of the Cloud Solution for Higher Education is the next step in Blackbaud's continued commitment to provide comprehensive, purpose-built cloud solutions that drive digital transformation in every market we serve."
The South Caolina-based Blackbaud is the world's leading cloud software company powering social good. Serving the entire social good community—nonprofits, foundations, companies, education institutions, health-care organizations and individual change agents—Blackbaud connects and empowers organizations to increase their impact through cloud software, services, expertise and data intelligence.
Blackbaud shares nosedived $11.75, or 13.1%, to $78.26 as the clock approached noon Tuesday
