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Investor Presentaiton

Reconciliation of GAAP to Non-GAAP Consolidated Statements of Operations (Unaudited) (in thousands, except per share amounts) Revenue Recurring One-time services and other Total revenue GAAP $ 218,530 $ 12,688 231,218 Three Months Ended September 30, 2021 Amortization of Stock-based Compensation Expense Intangibles from Business Combinations Employee Severance $ $ Cost of revenue Cost of recurring 95,823 (2,997) (8,209) | Cost of one-time services and other 11,858 (1,266) (386) (14) Total cost of revenue 107,681 (4,263) (8,595) (14) Acquisition-related Integration Costs Acquisition-related Expenses $ $ Restructuring and Other Real Estate Activities $ Security Incident- related costs, net of insurance (1) Non-GAAP Adjustments Subtotal $ Non-GAAP $ 218,530 12,688 231,218 (11,206) 84,617 (1,666) 10,192 (12,872) 94,809 Gross profit 123,537 4,263 8,595 14 12,872 136,409 Recurring gross margin 56.2% One-time services and other gross margin 6.5 % Total gross margin 53.4 % 5.1 % 61.3 % 13.2% 19.7 % 5.6% 59.0 % Operating expenses Sales, marketing and customer success 44,703 (4,942) Research and development 31,566 (6,110) General and administrative 34,733 (13,611) | | | (36) Amortization Restructuring Total operating expenses 558 (558) 131 111,691 (24,663) (558) 13 (18) (54) TIETE (4,942) 39,761 17 (67) 17 ཕྱེ|| | ཕྱེ| | (6,146) 25,420 551 (851) (13,979) 20,754 (558) (131) (131) (67) 420 (851) (25,756) 85,935 11,846 28,926 9,153 68 (17) 67 (420) 851 38,628 50,474 Income from operations Total operating margin 5.1 % 16.7 % 21.8% Net Income $ Shares used in computing diluted earnings per share Diluted earnings per share $ 6,188 48,274 0.13 $ 37,866 48,274 $ 0.78 (1) Includes Security Incident -related costs incurred, net of probable insurance recoveries. Recorded expenses consisted primarily of payments to third-party service providers and consultants, including legal fees, as well as settlements of customer claims. Not included in this adjustment were costs associated with enhancements to our cybersecurity program. blackbaud 44
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