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Blackbaud(BLKB) - 2023 Q4 - Earnings Call Presentation
2024-02-13 16:17
This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements in this presentation consist of, among other things, statements regarding future operating results, all of which are based on current expectations, estimates, and forecasts, and the beliefs and assumptions of the Company's management. Words such as "believes," "seeks," "expects," "may, ...
Blackbaud(BLKB) - 2023 Q4 - Earnings Call Transcript
2024-02-13 16:17
Financial Data and Key Metrics - Adjusted free cash flow margin improved to 22% at the midpoint of guidance, up from 14% in 2022 and 19% in 2023 [6] - Full-year revenues for 2023 were $1,105 million, up 4.8% organically, with adjusted EBITDA of $356 million, a 36% increase year-over-year [20] - Earnings per share increased to $3.98 in 2023, compared to $2.69 in 2022 [21] - Adjusted free cash flow for 2023 was $214 million, up from $154 million in 2022, representing a 19.3% margin [21] - For 2024, revenue is expected to be between $1,170 million and $1,200 million, with organic growth projected at 7.2% [22] - Adjusted free cash flow for 2024 is guided at $254 million to $274 million, with a midpoint margin of 22.3% [38] Business Line Data and Key Metrics - Contractual recurring revenues grew 6.4%, transactional recurring revenues grew 12.5%, and total recurring revenue grew 8.4% in Q4 2023 [19] - Non-strategic one-time revenues declined by $2 million in Q4 2023, representing a 1-point drag on total revenue growth [19] - The company is accelerating investments in AI and cybersecurity, with incremental costs expected to ramp up throughout 2024 [26][27] Market Data and Key Metrics - The UK statutory tax rate increased from 19% to 25%, impacting the company's cash tax rate, which is expected to rise to 24.5% in 2024 [6][37] - The company is leveraging cloud environments, with CapEx expected to decline substantially as data centers are shut down and migrated to the cloud [6] Company Strategy and Industry Competition - The company is focused on driving innovation, particularly in AI and cybersecurity, to improve efficiency and profitability [6][26] - The company is transitioning from 1-year to 3-year contracts, with 35% of the base renewed on multiyear contracts in 2023 and an additional 30% expected in 2024 [46][52] - The company is investing in AI-driven product capabilities, such as online donation forms and AI-powered insights, to enhance customer value and drive revenue growth [27][28] Management Commentary on Operating Environment and Future Outlook - The company expects continued improvement in profitability and cash flow, driven by cost reductions, revenue growth, and operational efficiencies [6][20] - Management is optimistic about 2024, with expectations of higher growth rates, improved margins, and continued momentum in the business [33][75] Other Important Information - The company repurchased approximately 500,000 shares for $41 million in December 2023 and January 2024, with a new $500 million repurchase authorization [16][17] - The company is focused on returning capital to shareholders through stock repurchases and maintaining a strong balance sheet, with a debt-to-adjusted EBITDA ratio of approximately 2x [39][40] Summary of Q&A Session Question: Impact of data center shutdowns on cost reduction and gross margins - The company expects substantial CapEx reductions as data centers are shut down and migrated to the cloud, with some duplicative costs remaining during the transition [6] - Long-term efficiency gains are expected from cloud environments, with additional cost savings from automation and AI investments [6] Question: Sales capacity and productivity improvements - The company has the right team in place, with no substantial headcount increases planned, but significant opportunities for productivity improvements and quota attainment [13] Question: Timing and impact of AI investments on EBITDA margins - AI investments began ramping up in Q4 2023 and are expected to continue throughout 2024, with some costs falling off towards the end of the year [26] Question: Pricing strategy and contribution to revenue growth - The pricing optimization program is going well, with 35% of the base renewed on multiyear contracts in 2023 and an additional 30% expected in 2024 [46][52] - The company is focused on driving innovation to justify price increases and multiyear contracts [46][52] Question: Corporate impact market dynamics - The corporate impact market is large, with potential for multi-million-dollar contracts, but it is subject to discretionary spending [63] - The company has a strong presence in this market, with significant opportunities for cross-selling and growth [63]
Mississippi State University Leverages Blackbaud CRM™ to Drive Fundraising and Engagement Strategies
Prnewswire· 2024-02-09 14:00
Blackbaud's Innovative Software Solution Helps Provide Holistic View of Constituents CHARLESTON, S.C., Feb. 9, 2024 /PRNewswire/ -- Blackbaud (NASDAQ: BLKB), the leading provider of software for powering social impact, today shared how Mississippi State University's Division of Development and Alumni is using Blackbaud CRM™ for alumni engagement and to help drive fundraising efforts. A Blackbaud customer since 2005, the Division of Development and Alumni at Mississippi State University serves its 161,000 li ...
Morehead State University Foundation Adopts Blackbaud Financial Edge NXT® to Deliver Greater Efficiency and Data Confidence
Prnewswire· 2024-02-08 18:00
Integration Between Blackbaud Products Enables MSU to Integrate Their Fundraising and Accounting Software CHARLESTON, S.C., Feb. 8, 2024 /PRNewswire/ -- Blackbaud (NASDAQ: BLKB), the leading provider of software for powering social impact, today shared how Morehead State University Foundation has integrated Blackbaud Financial Edge NXT® with its existing Blackbaud Raiser's Edge NXT® software to elevate their operations. The Morehead State University (MSU) Foundation fundraises and invests funds to support c ...
Blackbaud Raises Awareness for Heart Month Through Ongoing Partnership with the American Heart Association
Prnewswire· 2024-02-08 14:00
Through Partnership, Blackbaud Invests in Employee Wellbeing and Community Health CHARLESTON, S.C., Feb. 8, 2024 /PRNewswire/ -- Blackbaud (NASDAQ: BLKB), the leading provider of software for powering social impact, today shared ways the company and its employees are recognizing American Heart Month in February through an ongoing partnership with the American Heart Association, the nation's oldest and largest voluntary organization dedicated to fighting heart disease and stroke. Blackbaud has been an Ameri ...
Blackbaud to Bring Powerful, New Capabilities to Raiser's Edge NXT®
Prnewswire· 2024-02-07 17:30
Through Connected Systems, Blackbaud is Helping Social Impact Organizations Grow Their Donor Base and Raise More Funds CHARLESTON, S.C., Feb. 7, 2024 /PRNewswire/ -- Blackbaud (NASDAQ: BLKB), the leading provider of software for powering social impact, today announced it is bringing new capabilities to Blackbaud Raiser's Edge NXT®. These capabilities will enable social impact organizations to grow their donor base and funds with Optimized Donation Forms, harness the power of predictive analytics with Prospe ...
What Analyst Projections for Key Metrics Reveal About Blackbaud (BLKB) Q4 Earnings
Zacks Investment Research· 2024-02-07 15:21
Wall Street analysts expect Blackbaud (BLKB) to post quarterly earnings of $1.04 per share in its upcoming report, which indicates a year-over-year increase of 52.9%. Revenues are expected to be $298.09 million, up 8.5% from the year-ago quarter.The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.Before a company reveals its ea ...
Truth Initiative and Kaiser Permanente Join Forces with EVERFI from Blackbaud to Teach Students About the Dangers of Vaping Cannabis
Prnewswire· 2024-02-05 19:00
New education lessons will be part of Vaping: Know the truth, a digital tobacco prevention & cessation curriculum, which has enrolled more than one million students in less than three years CHARLESTON, S.C. and WASHINGTON, Feb. 5, 2024 /PRNewswire/ -- Truth Initiative, the organization behind truth®, the nationally recognized, proven-effective youth and young adult tobacco and opioid prevention public education campaigns, and Kaiser Permanente have teamed up again with EVERFI® from Blackbaud®, the leader in ...
Blackbaud Reaches Agreement with the Federal Trade Commission Related to 2020 Security Incident
Prnewswire· 2024-02-02 13:54
CHARLESTON, S.C., Feb. 2, 2024 /PRNewswire/ -- Blackbaud (NASDAQ: BLKB), the leading provider of software for powering social impact, announced a settlement with the U.S. Federal Trade Commission (the "FTC") related to its 2020 security incident. When finalized, this settlement will fully resolve the previously disclosed matter with the FTC. "We are pleased to resolve this matter with the FTC," said Mike Gianoni, president and CEO, Blackbaud. "Protecting our customers' and their constituents' privacy will a ...
All You Need to Know About Blackbaud (BLKB) Rating Upgrade to Strong Buy
Zacks Investment Research· 2024-01-31 18:01
Blackbaud (BLKB) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Si ...