UPDATE 2-Blackbaud Q3 results beat market view, Q4 view in-line

* Q3 Adj. EPS $0.26 vs est $0.22

* Sees Q4 Adj. EPS $0.23-$0.24 vs est $0.23

* Sees Q4 rev $77 mln-$79 mln vs est of $78.7 mln

(Adds outlook from conference call)

BANGALORE, Oct 28 (Reuters) - Blackbaud Inc (BLKB.O) posted better-than-expected quarterly profit driven by strong demand for its software, which is used mostly by non-profit organizations, but forecast fourth-quarter results largely in line with Wall Street estimates.

The company expects fourth-quarter adjusted earnings of 23 cents to 24 cents, a share.

Non-GAAP revenue for the quarter is expected to be $77 million to $79 million, the company said on a conference call with analysts.

Analysts' were expecting fourth-quarter earnings 23 cents a share on revenue of $78.7 million, according to Thomson Reuters I/B/E/S.

The company also said it expects to achieve full-year 2009 non-GAAP operating margin of about 21.5 percent, up from its previous target of 20 percent.

Blackbaud posted a third-quarter profit of $9.8 million, or 22 cents a share, compared with $7.3 million, or 17 cents a share, a year ago. Excluding special items, it earned 26 cents a share.

Analysts on average were looking for earnings, excluding special items, of 22 cents a share.

"The company's strong third-quarter financial results were enhanced by a couple of large Blackbaud Enterprise CRM deals that closed and were recognized during the quarter," Chief Financial Officer Timothy Williams said in a statement.

Blackbaud's software assists non-profit organizations in fund-raising and direct marketing.

The company's quarterly revenue rose 1 percent to $79.2 million, beating analysts' expectations of $77.2 million.

Revenue from subscriptions rose 23 percent to $19.2 million and maintenance revenue rose 8 percent to $29.7 million, the company said.

Total operating expenses fell 7 percent to $34.8 million.

Shares of the Charleston, South Carolina-based Blackbaud closed at $21.18 Wednesday on Nasdaq.

For the alerts, double-click. [ID:nWNAB6182] and [ID:nWNAB6020]. (Reporting by Saqib Iqbal Ahmed in Bangalore; Editing by Pradeep Kurup, Saumyadeb Chakrabarty)