BLACKBAUD INC 10-K

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Our common stock is trading on the Nasdaq Stock Market LLC (“Nasdaq”) under the symbol “BLKB.” As of February 10, 2021, there were approximately 96 stockholders of record of our common stock. Because many of our shares of common stock are held by brokers and other institutions on behalf of stockholders, this number is not representative of the total number of beneficial owners of our stock. On February 10, 2021, the closing price of our common stock was $78.34. Stock Performance Graph The following performance graph shall not be deemed to be “soliciting material” or “filed” or incorporated by reference in future filings with the SEC, or subject to the liabilities of Section 18 of the Exchange Act except as shall be expressly set forth by specific reference in such filing. The performance graph compares the performance of our common stock to the Nasdaq Composite Index and the Nasdaq Computer and Data Processing Index. The graph covers the most recent five-year period ended December 31, 2020. The graph assumes that the value of the investment in our common stock and each index was $100.00 at December 31, 2015, and that all dividends are reinvested. December 31, 2015 2016 2017 2018 2019 2020 Blackbaud, Inc. $ 100.00 $ 97.92 $ 145.40 $ 97.30 $ 123.87 $ 89.73 Nasdaq Composite Index 100.00 108.87 141.13 137.12 187.44 271.64 Nasdaq Computer & Data Processing Index 100.00 107.35 150.04 152.52 213.66 305.01 2020 Form 10-K 29 Table of Contents Blackbaud, Inc. Common Stock Acquisitions and Repurchases The following table provides information about shares of common stock acquired or repurchased during the three months ended December 31, 2020 under the stock repurchase program then in effect, as well as common stock withheld by us to satisfy the minimum tax obligations of employees due upon vesting of restricted stock awards and units. Period Total number of shares purchased (1) Average price paid per share Total number of shares purchased as part of publicly announced plans or programs (2) Approximate dollar value of shares that may yet be purchased under the plans or programs (in thousands) Beginning balance, October 1, 2020 $ 50,000 October 1, 2020 through October 31, 2020 — $ — — 50,000 November 1, 2020 through November 30, 2020 2,733 50.01 — 250,000 December 1, 2020 through December 31, 2020 714,049 57.42 714,000 208,999 Total 716,782 $ 57.40 714,000 $ 208,999 (1) Includes 2,782 shares (2,733 in November and 49 in December) withheld by us to satisfy the minimum tax obligations of employees due upon vesting of restricted stock awards and units. The level of this acquisition activity varies from period to period based upon the timing of award grants and vesting. (2) In November 2020, our Board of Directors reauthorized and expanded our stock repurchase program to authorize us to purchase up to $ 250.0 million of our outstanding shares of common stock. The program does not have an expiration date. Dividends Our Board of Directors had previously adopted a dividend policy which reflected an intention to distribute to our stockholders a portion of the cash generated by our business that exceeds our operating needs and capital expenditures as regular quarterly dividends. In accordance with our previous dividend policy, we paid quarterly dividends at an annual rate of $ 0.48 per share in 2019, resulting in aggregate dividend payments to stockholders of $23.6 million in 2019. As a part of a series of measures to better enable us to weather the extraordinary business challenges occasioned by COVID-19 and further effect our long-term strategy to deliver the greatest value to our stockholders, we announced on April 6, 2020 that our Board of Directors had rescinded its previously announced policy to pay an annual dividend at a rate of $ 0.48 per share of common stock and discontinued the declaration and payment of all cash dividends beginning with the second quarter of 2020 and thereafter until such time, if any, as the Board of Directors may determine in its sole discretion. As a result, we paid a first quarter dividend of $0.12 per share in 2020 resulting in aggregate dividend payments to stockholders of $6.0 million, but no further dividends were declared or paid in 2020. We currently do not anticipate declaring or paying any cash dividends for the foreseeable future. 30 2020 Form 10-K Table of Contents Blackbaud, Inc. ITEM 6. SELECTED FINANCIAL DATA The selected financial data set forth below should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Item 7 in this report and our financial statements and the related notes included elsewhere in this report to fully understand factors, including our business acquisitions and dispositions, that may affect the comparability of the information presented below. Year ended December 31, (in thousands, except per share data) 2020 2019 (1) 2018 2017 (2) 2016 (2) SUMMARY OF OPERATIONS Total revenue $ 913,219 $ 900,423 $ 848,606 $ 788,487 $ 731,642 Total cost of revenue 428,065 418,424 381,742 361,904 339,220 Gross profit 485,154 481,999 466,864 426,583 392,422 Total operating expenses 447,911 454,854 407,447 358,405 324,198 Income from operations 37,243 27,145 59,417 68,178 68,224 Net income 7,717 11,908 44,841 73,633 45,404 PER SHARE DATA Basic net income $ 0.16 $ 0.25 $ 0.95 $ 1.58 $ 0.98 Diluted net income 0.16 0.25 0.93 1.54 0.96 Cash dividends 0.12 0.48 0.48 0.48 0.48 BALANCE SHEET DATA Total assets $ 2,044,734 $ 1,992,963 $ 1,615,305 $ 1,797,846 $ 1,345,009 Deferred revenue, including current portion 316,914 316,137 298,555 278,706 250,289 Total debt, including current portion 531,033 467,100 387,124 438,224 342,393 Total long-term liabilities 605,180 607,362 435,867 486,946 396,466 (1) Reflects the impact of adopting Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842) in 2019, on a prospective basis. See Note 2 of our consolidated financial statements in this report for further discussion. (2) Reflects the impact of adopting ASU 2014-09, Revenue from Contracts with Customers (Topic 606) in 2018, on a retrospective basis. 2020 Form 10-K 31 Table of Contents Blackbaud, Inc.