2026 Blackbaud Impact Awards to Celebrate Social Impact Organizations Advancing Missions Globally Accessibility StatementSkip Navigation Awards Will Spotlight the Outstanding Achievements and Mission Impact of Nonprofits, Education Institutions and Companies Around the World; Nominations Open Through May 15 CHARLESTON, S.C., March 23, 2026 /PRNewswire/ -- Blackbaud (NASDAQ: BLKB), the world's leading provider of AI-powered solutions for social impact, today opened nominations for the 2026 Blackbaud Impact A ...

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Blackbaud Launches New Category of AI Agent with General Availability of its First Agent for Goodâ"¢ Accessibility StatementSkip Navigation The Development Agent, designed to help personalize donor engagement and grow giving at scale, is the first- ever expert agent to be embedded in a dedicated social impact platform CHARLESTON, S.C., March 17, 2026 /PRNewswire/ -- Blackbaud (NASDAQ: BLKB), the world's leading provider of AI-powered solutions for social impact, today announced the general availability of t ...

Company Overview - Blackbaud Inc. is a leading cloud software company focused on social causes, providing a range of cloud-based and on-premise software solutions for organizations of all sizes, including fundraising, marketing, and financial management [11] - The company’s SKY platform is a modern cloud platform that drives innovation and offers tools for clients and partners to extend the Blackbaud ecosystem [11] Investment Ratings - Blackbaud has a Zacks Rank of 2 (Buy) and a VGM Score of A, indicating strong potential for investment [12] - The company also has a Value Style Score of A, supported by attractive valuation metrics such as a forward P/E ratio of 9.27, making it appealing to value investors [12] Earnings Estimates - In the last 60 days, two analysts have revised their earnings estimates higher for fiscal 2026, with the Zacks Consensus Estimate increasing by $0.13 to $5.19 per share [12] - Blackbaud has demonstrated an average earnings surprise of +7.1%, indicating a positive trend in earnings performance [12] Investment Recommendation - With a solid Zacks Rank and top-tier Value and VGM Style Scores, Blackbaud is recommended for investors looking for strong investment opportunities [13]

Core Insights - Blackbaud, Inc. (BLKB) showcases customer outcomes that highlight the effectiveness of its platforms tailored for nonprofits and socially responsible organizations [1][10] - The company emphasizes the importance of contextual understanding in AI, positioning itself as a leader in purpose-built technology for social impact [2] Customer Outcomes - A grantmaking customer reported saving up to 30 days annually and accessing insights nearly 10 times faster [3] - A financial management customer reclaimed up to 25% of time in daily operations and reduced reporting workloads by several days [3] - A CSR customer achieved a 96% employee engagement rate through the YourCause CSRconnect platform [3] Organizational Performance - Nonprofits using the Raiser's Edge NXT platform raised 44% more funds [4] - A K-12 school management customer saw a 21% increase in inquiries, a 12% rise in applications, and a 28% growth in contracts [4] - A financial management client reported a 25% increase in grant funding [4] Sector Collaboration - The Blackbaud Verified Network connects 1.65 million nonprofits and has facilitated donations to 195,000 organizations [5] - The Expedited Giving capability allows nonprofits to receive corporate donations up to 95% faster, reducing the waiting period from weeks to days [5] Operational Efficiency and Future Outlook - Blackbaud's solutions enhance operational efficiency, measurable outcomes, and connectivity across the social impact sector [6] - The company is committed to supporting the broader social impact ecosystem [6] - For 2026, Blackbaud projects GAAP revenue between $1.173 billion and $1.179 billion, with non-GAAP adjusted EBITDA expected to reach between $430 million and $438 million [8]

Core Insights - Blackbaud, the leading provider of AI-powered solutions for social impact, emphasizes the positive customer outcomes resulting from its innovative solutions [1] Company Highlights - Blackbaud's solutions are designed to create a significant real-world impact, showcasing the effectiveness of its intuitive technology [1]

Summary of Blackbaud FY Conference Call (March 02, 2026) Company Overview - **Company**: Blackbaud (NasdaqGS:BLKB) - **Industry**: Cloud software focused on K12 education, nonprofits, and foundations - **Revenue**: Approximately $1.2 billion, with 85% from North America - **Business Model**: 98% recurring revenue, with a mix of transaction processing (one-third) and subscription services [2][7][12] Core Business Insights - **Growth Profile**: Achieved Rule of 40 in 2025, with organic growth of 5.5% and mid-30s EBITDA margin [2][7] - **Long-term Goals**: Aspiring to become a Rule of 45 company [7][9] - **Total Addressable Market (TAM)**: Estimated at $10 billion across various sectors [13] AI Innovations - **Product Launch**: Introduction of "Agents for Good," including a Development Agent that automates fundraising [18][19] - **Early Adoption**: Initial rollout with early adopter customers, generating contracts and interest across K12 schools, universities, and nonprofits [19][21] - **Monetization Potential**: Expected annual fees for the Development Agent between $25,000 and $35,000, with thousands of potential customers [22][25] Customer Base and Market Dynamics - **Customer Segmentation**: Diverse customer base including K12 schools, universities, healthcare systems, and nonprofits [21] - **Fundraising Capabilities**: AI agents can target untapped donor bases, enhancing fundraising efficiency [30][33] - **Retention Strategy**: Transitioned to multi-year contracts with annual price increases, resulting in over 20% of customers on four-year or longer contracts [42][44] Competitive Landscape - **K12 Market**: Limited competition with no vendor offering a complete suite of services; Blackbaud integrates fundraising, tuition management, and financials [94][96] - **Nonprofit Sector**: Few small competitors, but none of significant size directly competing with Blackbaud [105] Transactional Business Growth - **Revenue Composition**: Transaction business accounts for over one-third of total revenue, with growth opportunities in donation processing and tuition management [110] - **Online Giving Trends**: Online giving is in the mid-teens percentage of total giving, which exceeds $600 billion annually in the U.S. [117][123] Financial Performance and Capital Allocation - **Cash Flow**: Strong cash flow generation, with $208 million last year and a projected $285 million this year [156] - **Stock Buyback**: Significant stock buyback program with approximately $500 million remaining under authorization [153][151] - **EPS Growth**: Mid-teens EPS growth expected this year, with long-term aspirational goals set for the next five years [158] Margin Improvement Strategies - **EBITDA Growth**: Increased from low 20s to above 35% over the past four years, with further opportunities for improvement [135] - **Operational Efficiency**: Closing legacy data centers and transitioning to direct employees in India to enhance gross margins [137][139] Conclusion - **Overall Health**: The customer base remains strong, with resilience demonstrated during economic downturns like COVID-19 [130][133] - **Future Outlook**: Continued focus on innovation, AI integration, and expanding product offerings to drive growth and enhance customer retention [64][70]

Group 1 - Blackbaud, Inc. (NASDAQ:BLKB) is recognized as one of the best 52-week low technology stocks to buy, with a maintained Neutral rating from Robert W. Baird and a lowered price target from $70 to $60, indicating a potential upside of 25.76% from current levels [1] - Raymond James also reduced its price target for Blackbaud, Inc. from $85 to $60 while maintaining an Outperform rating, citing better-than-expected fourth-quarter results and a positive 2026 outlook [2] - The company aims for mid-single digit growth through 2030 and is focused on improving margins, positioning itself as a leader in the vertical software market despite overall weak sentiment in the software sector [2] Group 2 - Blackbaud, Inc. operates as a provider of cloud software and services, offering solutions for fundraising, financial management, grant management, and education, and has been in operation since 1981 [3] - The company is noted for its compelling valuation, broad product portfolio, and AI initiatives that are expected to yield measurable returns, making it an attractive investment option [2]

Industry Overview - The technology sector has seen significant returns since the rise of generative AI, with expectations for continued strong performance this year. However, concerns about infrastructure spending and the potential threat of AI to certain domains, such as software engineering, are negatively impacting the sector [1]. Market Sentiment - Nick Evans, a fund manager at Polar Capital, expressed that only a few firms may survive the rise of AI, indicating that application software faces an existential threat from AI coding tools that allow clients to become competitors [2]. - Marta Norton, Chief Investment Strategist at Empower, noted a perplexing market dynamic where what worked in 2025 is struggling in 2026, while previously overlooked stocks are now performing well [3]. Investment Opportunities - A focus on technology stocks trading at their 52-week lows has been identified as a potential opportunity for investors. A list of 11 technology stocks meeting this criterion has been compiled, targeting companies with a market cap of at least $2 billion and trading within a 0% to 3% range of their 52-week lows [5]. Hedge Fund Activity - Research indicates that imitating the top stock picks of leading hedge funds can lead to market outperformance. A quarterly newsletter strategy has achieved a return of 427.7% since May 2014, significantly outperforming its benchmark [6]. Company Analysis: Blackbaud, Inc. (NASDAQ:BLKB) - Blackbaud, Inc. has a potential upside of 25.76% based on a lowered price target of $60 from Robert W. Baird, which reflects a neutral rating. The company reported strong Q4 performance and provided an encouraging outlook for 2026 [7][8]. - Raymond James also lowered its price target for Blackbaud to $60 while maintaining an outperform rating, highlighting better-than-expected Q4 results and a long-term growth plan aiming for mid-single-digit growth through 2030 [9]. Company Analysis: Qualys, Inc. (NASDAQ:QLYS) - Qualys, Inc. has a potential upside of 35.6% based on a revised price target of $140 from UBS, maintaining a neutral rating. The company reported a revenue growth of 10% in Q4, with total revenue of $175.3 million [11][12]. - For 2026, Qualys projects revenue between $717 million and $725 million, indicating a growth rate of 7% to 8%. The first quarter of 2026 is expected to show revenue growth of 8% to 9% [14].

Core Viewpoint - The Delaware Supreme Court has allowed cyber insurers to pursue recovery of claims payments made to their insureds who took independent action following a ransomware attack on Blackbaud Inc., which allegedly failed to respond adequately to the incident [1][7]. Group 1: Incident Overview - In July 2020, a cyber attacker accessed Blackbaud Inc.'s systems for several months, exfiltrating confidential customer data and demanding a ransom [2]. - Following the attack, Blackbaud's customers felt compelled to conduct their own investigations and remediation efforts due to dissatisfaction with Blackbaud's response [4]. Group 2: Insurance Claims and Legal Proceedings - Four insurers provided coverage to 97 of Blackbaud's clients, with Philadelphia Indemnity paying over $600,000 and Travelers Casualty and Surety paying more than $1.5 million in claims [5]. - The insurers initially faced a setback when a Superior Court dismissed their complaints, citing a lack of factual support for the claims [6]. Group 3: Supreme Court Ruling - The Delaware Supreme Court reversed the lower court's decision, stating that the insurers met the pleading requirements under both New York contract law and Delaware's standards [7][8]. - The Supreme Court noted that the insurers adequately identified Blackbaud's contractual duties and alleged breaches, including ignoring cybersecurity warnings [10]. Group 4: Damages and Legal Implications - The insurers claimed damages related to costs incurred for investigations, legal counsel, and credit monitoring, which were necessary due to Blackbaud's alleged negligence [11]. - The Supreme Court emphasized that a reasonable factfinder could determine that Blackbaud's breaches were a substantial factor in causing the insureds' expenses [14]. Group 5: Blackbaud's Response and Consequences - Blackbaud initially downplayed the severity of the breach, later revealing that sensitive information may have been accessed [15]. - In 2023, Blackbaud agreed to pay a $3 million fine to the SEC for misleading disclosures and $49 million to resolve claims from all 50 states [15].