Professional Documents
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BBBB 04ar
BBBB 04ar
BBBB 04ar
FINANCIAL Highlights
($ in millions)
Revenues
Product $ 62.4 $83.3 $ 98.6
Professional Services 7.5 9.2 12.8
$111.4
2004 total revenues
TOTAL REVENUES
($ in millions)
million
’02 $69.9
’03 $92.5
’04 $111.4
$32.7
2004 cash flow from operations ($ in millions)
’02 $1.4
’03 $19.7
million
’04 $32.7
TO OUR FELLOW Shareholders
2004 was a milestone year for Blackboard. We are pleased to share a few words to The Blackboard Community of Practice…
highlight our accomplishments, thank those responsible and, most importantly, There is no question as to who deserves our sincere appreciation for accomplishing
outline the critical elements of our growth strategy that will drive Blackboard the milestones listed above. The concept of a “Community of Practice” is an
to new heights in 2005. We founded Blackboard with the vision of transforming important one for Blackboard. Our combination of over 2,200 clients, millions
the Internet into a powerful environment for teaching and learning. And of end users, 420 independent software vendors (ISVs), leading education-
while we still have a long way to go, 2004 brought great progress towards that publishing partners, 600 merchants, and 481 employees at the end of 2004,
important goal. positions Blackboard uniquely in the global education market. Our network—
of people, ideas and technology—is both our platform for growth and the
Driving Shareholder Value Through Client Success…
object of our fiduciary responsibility. We thank our clients, partners, and you, our
When we speak of a milestone year in 2004, we do so across a number of the
investors, for helping make possible our record positive financial and strategic
strategic objectives that drive Blackboard’s growth strategy. Our strategy can
performance. We especially thank our hard-working and talented employees.
be thought of most simply as continuing to establish Blackboard as a leading
technology platform for the global education industry, and the consequent The Year Ahead…
weaving of our applications into the fabric of our clients’ teaching, learning As we proceed into 2005, our goals include continued revenue growth, diligent
and commerce activities. operational cost control, and ongoing strategic investments to increase market
share in the global higher education and U.S. K–12 markets. Again, we are
Our progress in 2004 towards this end has been noteworthy:
focused on the following major strategic objectives:
1. Our core U.S. higher education license count grew by 15% over 2003.
1. Increasing the breadth of our U.S. higher education leadership position;
2. We demonstrated the opportunities that lie beyond the U.S. higher education
2. Growing the depth of our existing client relationships;
market, by having stronger than expected growth in the U.S. K–12 and
international markets. 3. Expanding our leadership position in the fast-growing emerging markets of
U.S. K–12 and global higher education;
3. We grew the average number of licenses a client runs and our average contract
value per client, confirming the value of our broader suites of solutions and 4. Retaining our clients through great products and high-quality service
the strength of our client relationships. and support;
4. We achieved 92% renewal rates, exceeding our own expectations and validating 5. Continuing our pace of innovation through new product introductions; and
the value of Blackboard solutions to our clients. 6. Selectively considering the acquisition or license of businesses, products or
5. We made significant progress expanding the client base of our two newest technologies that are complementary to our business and the objectives set forth.
applications—Blackboard Content System™ and BbOne . ® Our future depends on making the client experience with Blackboard the best
6. We saw our first joint venture, the Chinese eLearning company Cerbibo, in the industry. The Blackboard Academic Suite™ and Blackboard Commerce
build a strong foothold in a fast-growing market. Suite ™ software product lines support a broad spectrum of mission-critical
activities, including course creation and management, content management,
What do these strategic milestones mean for increasing shareholder value? Our
performance evaluation, online community development, campus transaction
financial performance for 2004 provides the answer. For the full year 2004, we
processing and off-campus merchant relations, to name a few. Students, faculty
generated revenues of $111.4 million, a 20% increase over 2003, and earnings
and administrators in 64 countries depend on our success.
per diluted share of $0.21, a 110% increase over 2003. We expanded our gross
margins to a Company record of 70% while investing $13.7 million in product Again, we express our thanks to you, our shareholders, for your continued support—
development. Blackboard again generated significant cash, ending the year with support that will help Blackboard to succeed and grow in 2005 and beyond.
cash flow from operations of $32.7 million, a 66% increase compared to 2003 cash We remain steadfastly committed to enhancing shareholder value and ensuring
flow from operations of $19.7 million. We are proud of these accomplishments the long-term success of our business through the accomplishments of our
and expect to build on our success in 2005. global client base. It is our pleasure to serve you and our clients everywhere.
Todd E. Gibby
Senior Vice President, Sales