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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 Nine Months Ended September 30, 2021 Amortization of GAAP Stock-based Compensation Expense Intangibles from Business Combinations Employee Severance Acquisition-related Integration Costs Acquisition-related Expenses $ 642,266 $ $ $ $ 37,583 679,849 $ Restructuring and Other Real Estate Activities $ Security Incident- related costs, net of insurance (1) Non-GAAP Adjustments Subtotal $ Non-GAAP $ 642,266 37,583 679,849 Cost of revenue Cost of recurring 279,123 (8,900) (25,309) | Cost of one-time services and other 40,013 (5,958) (1,294) (29) Total cost of revenue 319,136 (14,858) (26,603) (29) Gross profit 360,713 14,858 26,603 29 41,490 (34,209) 244,914 (7,281) 32,732 (41,490) 277,646 402,203 Recurring gross margin 56.5% One-time services and other gross margin (6.5)% Total Gross Margin 53.1 % 5.4% 61.9% 19.4 % 12.9% 6.1 % 59.2 % Operating expenses Sales, marketing and customer success 138,948 (15,048) Research and development 90,967 (19,725) General and administrative 97,328 (39,849) | | | (1,342) (36) (103) 115 (196) 676 । । Amortization Restructuring Total operating expenses 1,674 (1,674) 263 329,180 (74,622) (1,674) (1,481) 115 (196) དྨེ8 |3|| (16,390) 122,558 (19,761) 71,206 (1,321) (40,678) 56,650 (1,674) (263) (263) (1,321) (78,766) 250,414 31,533 89,480 28,277 1,510 (115) 196 (413) 1,321 120,256 151,789 Income from operations Total Operating Margin 4.6 % Net Income $ Shares used in computing diluted earnings per share Diluted earnings per share $ 12,755 48,260 0.26 17.7 % 22.3 % $ 110,365 48,260 $ 2.29 (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 45
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