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Investor Presentaiton

Reconciliation of GAAP to Non-GAAP Consolidated Statements of Operations (Unaudited) Three Months Ended September 30, 2020 blackbaud Amortization of Stock-based Compensation Expense Intangibles from Business Combinations Employee Severance 200,102 $ $ 14,899 215,001 (in thousands, except per share amounts) GAAP Revenue Recurring One-time services and other Total revenue Cost of revenue Cost of recurring 84,251 (1,608) (7,732) Cost of one-time services and other 14,434 (2,080) (1,487) Total cost of revenue 98,685 (3,688) (9,219) Acquisition-related Integration Costs $ Acquisition-related Expenses Restructuring and Other Real Estate Activities Gross profit 116,316 3,688 9,219 Recurring gross margin 57.9 % One-time services and other gross margin 3.1% Total Gross Margin 54.1 % Operating expenses Sales, marketing and customer success 48,460 (4,004) (127) Research and development 22,783 (4,098) (29) General and administrative 34,132 (9,053) (76) 15 Amortization Restructuring Total operating expenses 749 (749) 105 106,229 (17,155) (749) (232) 15 Income from operations 10,087 Total Operating Margin 4.7 % Net Income $ 4,876 Shares used in computing diluted earnings per share 48,860 Diluted earnings per share $ 0.10 $ Non-GAAP Adjustments Subtotal Non-GAAP $ 200,102 14,899 215,001 (9,340) 74,911 (3,567) 10,867 (12,907) 85,778 12,907 129,223 4.7 % 62.6 % 24.0% 27.1 % 6.0% 60.1 % । । छ । । दु (4,131) 44,329 (4,127) 18,656 (64) (6,838) (16,016) 18,116 (749) (105) (105) (64) (6,943) (25,128) 81,101 20,843 9,968 232 (15) 64 6,943 38,035 48,122 17.7 % 22.4 % $ 35,734 48,860 $ 0.73 46 46
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