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BLACKHAWK NETWORK HOLDINGS, INC

No Longer Reporting

The company has not filed an annual or quarterly report since its Q1 FY2018 10-Q, filed May 2, 2018. Its latest SEC filing is a 15-12B from Jun 25, 2018.

The sections below describe the company as of the FY2017 annual report.

What Did They Do?

Sells merchant gift cards and other prepaid products to consumers through retail and online channels; provides incentive, loyalty and employee-engagement programs to businesses.

How Did They Make Money?

Blackhawk earns commissions when content-provider cards are activated; consumers pay purchase fees when open-loop cards are activated or GPR cards are loaded, while interchange and some program fees are earned over the card-redemption period. Business clients pay for incentive products and services, with billings tied to product delivery or services performed.

FY2017 revenue

Who Were Their Customers?

Consumers buy prepaid cards through grocery, specialty and convenience stores, Blackhawk's websites and third-party online retailers. Businesses buy incentive and employee-engagement programs directly; some prepaid rewards are distributed through those programs.

Customers above 10% of revenue, FY2017
of revenue from one customer
FY2015: 15% from one customer

Did Revenues Turn Into Profits?

No. It lost $155.8M in FY2017.

Operating income, FY2017
0% of revenue
▼ Now a loss vs FY2016 ($23.2M, 1%)
Net income, FY2017
−7% of revenue
▼ Now a loss vs FY2016 ($4.7M, 0%)

How Were They Changing?

Since the FY2017 annual report
Latest quarter: Q1 FY2018, the three months to Mar 24, 2018
Revenue
▲ +11%
vs $386.4M in Q1 FY2017
Net income
▼ −10% (Loss)
vs −$17.5M in Q1 FY2017
  • Jun 15, 2018 Silver Lake and P2 Capital Partners completed their acquisition of Blackhawk Blackhawk became a wholly owned subsidiary, and stockholders were entitled to $45.25 per share in cash.
  • May 1, 2018 Blackhawk sold its Grass Roots Meetings and Events business The sale closed in December 2017 for $45.2 million.

Grew. Revenue grew 96% in 4 years, from $1.1B in FY2013 to $2.2B in FY2017, about 18% a year.

First-party digital gift cards The older report describes gift-card sales through Blackhawk's own and third-party websites; the latest report adds CashStar's platform for retailers to distribute digital and physical gift cards directly to consumers and businesses.

Employee engagement software The older report describes employee rewards using prepaid products; the latest report also describes a hosted software platform for social recognition, wellness incentives and achievement awards.

Who Did They Compete With?

Competes with Visa, Western Union, MoneyGram, Green Dot, NetSpend, Euronet, InComm, Young America, ACB, Maritz, Aimia, OC Tanner, Globoforce, Citibank, First Data, and Amazon

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