Blackbaud Outlines Initial Actions to Strengthen Financial Position Amid COVID-19
Wednesday, April 8th, 2020
Blackbaud, Inc. (NASDAQ: BLKB), the world's leading cloud software company powering social good, outlined actions taken to ensure financial strength and flexibility in response to current global market conditions while remaining critically focused on the success of its customers and the health and economic stability of its employees. Given the uncertainty related to COVID-19, Blackbaud has withdrawn its full year 2020 financial guidance issued on February 10, 2020. Learn more about the resources and measures that Blackbaud is taking for its customers.
"Our top priority is protecting the safety and welfare of our people and continuing to be a strong global partner for social good organizations around the world during this unprecedented time," said Mike Gianoni, Blackbaud's president and CEO. "We acted quickly to transition our 3,600 employees to work remotely in a matter of days, and I'm proud of how our teams have risen to the challenge to maintain continuity in our business operations, while continuing to support our customers. Blackbaud serves many different organization types, and the impact of COVID‑19 is manifesting in different ways across our customer base. We're seeing many cases in which our customers are using Blackbaud technology to quickly mobilize and adopt to a more digital and virtual environment. For example, private K–12 schools across the U.S. are benefitting from Blackbaud's cloud solutions by being able to move classes and the in-school experience online. Meanwhile, we're working diligently to provide resources, guidance and technology to other nonprofits like arts and cultural organizations that are facing an entirely different set of challenges as they look to pivot their engagement strategies during temporary closures. While we cannot predict how long this current situation will last, Blackbaud remains deeply committed to supporting our customers and employees while ensuring the long-term success of the company."
Blackbaud has taken several immediate steps to provide additional near-term liquidity and financial flexibility while implementing employee relief measures in light of the COVID-19 pandemic. These actions include:
Blackbaud's Board of Directors has eliminated the payment of quarterly cash dividends on Blackbaud's common stock, effective immediately
Restriction of non-essential employee travel and other operating cost reductions
Temporary freeze on company hiring efforts
Blackbaud's 401(k) match program will be temporarily suspended for US-based employees
Mike Gianoni, Blackbaud's president and CEO, will forgo his paycheck for the foreseeable future
Employee cash merit increases and 2020 cash bonus plans will be replaced with one-time equity awards
All worldwide employees that have a base salary equal to or less than $75,000 USD will receive additional financial support in the form of a one-time bonus of $1,000 USD (adjusted for local currency)
"We had a strong start to the year, however, there is now a great deal of uncertainty in terms of how this COVID-19 disruption will impact our market, the economy and our company. We have acted quickly to preserve our strong balance sheet and capital structure with a focus on protecting our people, continuing to support our customers, and providing long-term value to our shareholders," said Tony Boor, executive vice president and CFO. "Given our inability to accurately predict the duration and magnitude of potential impacts associated with COVID-19, we believe it is appropriate to withdraw full year financial guidance for 2020."