Revenue during the quarter grew 8.49 percent to $183.62 million from $169.26 million in the previous year period. Gross margin for the quarter expanded 65 basis points over the previous year period to 53.45 percent. Total expenses were 94.24 percent of quarterly revenues, up from 93.73 percent for the same period last year. That has resulted in a contraction of 51 basis points in operating margin to 5.76 percent.

Operating income for the quarter was $10.58 million, compared with $10.61 million in the previous year period.

However, the adjusted operating income for the quarter stood at $33.96 million compared to $31.56 million in the prior year period. At the same time, adjusted operating margin contracted 15 basis points in the quarter to 18.50 percent from 18.65 percent in the last year period.

"The market remains strong, the pace of innovation we're delivering is unmatched in our industry, and we're seeing very positive traction with our next generation cloud solutions, which are powering impressive results for our customers," said Mike Gianoni, Blackbaud's president and chief executive officer. "Solid growth in subscriptions revenue continues to fuel recurring revenue growth, adding stability and predictability to our already strong business. Our non-GAAP organic subscriptions revenue grew 20 percent this quarter, and represented 64 percent of total revenue. And, our non-GAAP organic recurring revenue grew 12 percent, representing 83 percent of total revenue, a new all-time high for Blackbaud."

For fiscal year 2017, Blackbaud Inc. projects adjusted revenue to be in the range of $775 million to $795 million. It projects adjusted operating income to be in the range of $155 million to $163 million. It forecasts diluted earnings per share to be in the range of $2.06 to $2.18 on adjusted basis for the same period.

The company has spent $9.24 million cash to meet investing activities during the quarter as against cash outgo of $13.64 million in the last year period.

The company has spent $6.78 million cash to carry out financing activities during the quarter as against cash inflow of $2.89 million in the last year period.

Cash and cash equivalents stood at $13.87 million as on Mar. 31, 2017, up 14.80 percent or $1.79 million from $12.08 million on Mar. 31, 2016.

Working capital remains negative
Working capital of Blackbaud Inc. was negative $147.66 million on Mar. 31, 2017 compared with negative $143.68 million on Mar. 31, 2016. Current ratio was at 0.68 as on Mar. 31, 2017, up from 0.64 on Mar. 31, 2016.

Days sales outstanding were almost stable at 42 days for the quarter, when compared with the last year period.

At the same time, days payable outstanding was almost stable at 21 days for the quarter, when compared with the previous year period.