Core Insights - Blackbaud's share price has fluctuated between approximately $60 and $70 per share for nearly a decade, currently trading around $60, reflecting a year-to-date decline of about 14% [1] Summary by Category - **Share Price Performance** - The current trading price of Blackbaud is around $60, which is a decrease of approximately 14% year-to-date [1] - **Historical Price Range** - Over the past decade, Blackbaud's shares have consistently traded in the range of $60 to $70 per share [1]

Core Insights - Blackbaud is hosting its in-person K–12 User Conference from July 15–17, 2026, at the Boston Marriott Copley Place, aiming to inspire innovation and foster connections within the K–12 community [1][2]. Event Highlights - The conference will feature a variety of learning opportunities, including visionary keynotes, role-based learning tracks, interactive product labs, and networking sessions with peers and experts [4][7]. - An "Unconference" format will allow educators to lead discussions on topics that are most relevant to their schools, promoting collaboration and idea exchange [3][5]. Company Overview - Blackbaud is recognized as a leading software provider dedicated to social impact, serving the nonprofit and education sectors, with over $100 billion raised or managed annually through its platforms [6]. - The company has been acknowledged in various rankings, including Newsweek's list of America's Most Responsible Companies and Forbes' list of America's Best Employers [6]. Community Engagement - The event aims to bring together private and independent school professionals, thought leaders, and technology partners to enhance the student experience through technology [4][5]. - The conference is described as a heartfelt homecoming for the K–12 community, emphasizing the importance of peer interactions and support [5].

Revenue Performance - Total revenue decreased by $5.5 million (1.9%) and $19.4 million (2.3%) for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024[166]. - GAAP revenue for Q3 2025 was $281.1 million, a decrease of 1.9% compared to Q3 2024's $286.6 million[205]. - Non-GAAP organic revenue for Q3 2025 was $281.1 million, reflecting a growth of 5.2% from Q3 2024's $267.3 million[212]. - Non-GAAP organic recurring revenue growth for Q3 2025 was 5.5%, with non-GAAP organic recurring revenue at $275.8 million compared to $261.5 million in Q3 2024[212]. - Approximately 16% of total revenue for the nine months ended September 30, 2025, was generated from operations outside the U.S.[265]. Profitability Metrics - Income from operations increased by $13.4 million and $35.7 million for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024[144]. - GAAP gross profit for Q3 2025 increased to $167.5 million, resulting in a gross margin of 59.6%, up from 54.9% in Q3 2024[212]. - Non-GAAP income from operations for Q3 2025 was $84.0 million, with a non-GAAP operating margin of 29.9%, compared to 27.5% in Q3 2024[212]. - GAAP net income for the nine months ended September 30, 2025, was $78.3 million, an increase from $46.8 million in the same period of 2024[212]. - GAAP net income for Q3 2025 was $47.5 million, compared to $18.3 million in Q3 2024, representing a 159.6% increase[218]. Expenses and Cost Management - Cost of revenue decreased by $15.6 million (12.1%) and $41.5 million (10.8%) for the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024[167]. - Sales, marketing and customer success expenses decreased by $5.7 million, or 11.4%, and $14.6 million, or 9.9%, for the three and nine months ended September 30, 2025, compared to the same periods in 2024[174]. - Research and development expenses decreased by $0.7 million, or 1.9%, and $11.7 million, or 10.1%, for the three and nine months ended September 30, 2025, compared to the same periods in 2024[175]. - General and administrative expenses increased by $3.5 million, or 12.8%, and $13.7 million, or 12.9%, for the three and nine months ended September 30, 2025, compared to the same periods in 2024[181]. Cash Flow and Liquidity - Cash and cash equivalents were $38.3 million as of September 30, 2025, with a net leverage ratio of 2.45 to 1.00[150]. - Cash and cash equivalents decreased by 43.4% to $38.3 million as of September 30, 2025, down from $67.6 million at the end of 2024[233]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $207.5 million, a decrease of 6.7% from $222.4 million in 2024[233]. - Non-GAAP free cash flow for the nine months ended September 30, 2025, was $162.5 million, a decrease of 5.2% from $172.3 million in 2024[227]. - The company incurred $24.3 million in charges related to the release from a lease for office space during the nine months ended September 30, 2025[206]. Share Repurchase and Debt Management - The company repurchased 459,528 shares for $30.1 million during the three months ended September 30, 2025, and a total of 1,972,550 shares for $130.2 million during the nine months ended September 30, 2025[141]. - The company expects total share repurchases during 2025 to represent between 5.2% and 7.0% of its outstanding common stock as of December 31, 2024[141]. - Total carrying value of debt as of September 30, 2025, was $1,064.6 million, a slight decrease of 1.0% from $1,075.0 million at the end of 2024[233]. - The net leverage ratio as of September 30, 2025, was 2.45 to 1.00, well below the maximum requirement of 3.75 to 1.00 under the 2024 Credit Facilities[253]. - Total remaining principal payments due as of September 30, 2025, were approximately $1.1 billion, with expected future interest payments of about $230.0 million[258][259]. Tax and Regulatory Impacts - The effective income tax rate decreased due to a favorable impact of a valuation allowance reduction against net U.S. deferred tax assets[197]. - The company expects the OBBBA to significantly reduce cash taxes through 2027[198]. - The company applies a non-GAAP effective tax rate of 24.5% for calculating non-GAAP net income and diluted earnings per share[208]. Strategic Initiatives - The company is transitioning its contractual revenue contracts from primarily 1-year to primarily 3-year renewal terms, enhancing revenue predictability for customers[136]. - The company is expanding operations in India to access talent and reduce costs, with hiring beginning in 2024[136]. - The new agentic AI suite, "Agents for Good™," was launched to help social impact organizations enhance their operations[139]. - The company continues to invest in innovative and secure cloud solutions, including AI technology, to enhance customer satisfaction[175]. - The company implemented software tools to enhance its digital footprint and drive lead generation, aiming to reduce customer acquisition costs[173].

Core Insights - The Q3 earnings season is expected to be challenging, with many companies experiencing slowing growth and weaker macroeconomic fundamentals [1] - Elevated stock valuations will require companies to demonstrate strong performance in their earnings releases [1] Industry Summary - The technology sector is facing significant scrutiny as analysts with extensive experience in both Wall Street and Silicon Valley highlight the current trends impacting the industry [1] - The involvement of seasoned analysts in advising startups indicates a focus on emerging themes within the technology landscape [1]

Core Insights - The Q3 earnings season is expected to be challenging, with many companies experiencing slowing growth and weaker macroeconomic fundamentals [1] - Elevated stock valuations will require companies to demonstrate strong performance in their earnings releases [1] Industry Analysis - The technology sector is particularly highlighted, with insights from an analyst who has extensive experience in both Wall Street and Silicon Valley [1] - The analyst has been actively contributing to discussions on industry trends since 2017, indicating a long-term engagement with the sector [1]

Core Insights - Blackbaud, Inc. (BLKB) reported third-quarter 2025 non-GAAP EPS of $1.10, exceeding the Zacks Consensus Estimate by 2.8%, with an 11.1% year-over-year increase in earnings [1][8] - Total revenues decreased by 1.9% year over year to $281.1 million, primarily due to the divestiture of EVERFI, but still surpassed the Zacks Consensus Estimate by 0.5% [1][2] Financial Performance - Non-GAAP organic revenues increased by 5.2% on a reported basis and 4.8% on a constant-currency basis year over year [3] - Non-GAAP organic recurring revenues rose by 5.5% on a reported basis and 5.1% on a constant-currency basis [3] - Non-GAAP gross margin improved to 63% from 61% a year ago, while total operating expenses fell by 2.8% year over year to $112.9 million [4] - GAAP operating margin increased by 500 basis points to 19.4%, and non-GAAP operating margin rose by 240 basis points to 29.9% [4] Balance Sheet & Cash Flow - As of September 30, 2025, Blackbaud had total cash and equivalents of $457.4 million, down from $911.8 million as of June 30, 2025 [5] - Total debt decreased to $1 billion from $1.1 billion over the same period [5] - Cash provided by operating activities was $207.5 million, compared to $222.4 million in the prior-year quarter [6] Share Repurchase Program - Blackbaud has nearly $514 million available under its stock buyback program, which was expanded and renewed in July 2024 [9] - The company expects total share repurchases in 2025 to represent between 5.2% and 7.0% of its outstanding common stock as of December 31, 2024 [9] 2025 Outlook - Blackbaud reiterated its guidance for full-year 2025, projecting GAAP revenues between $1.120 billion and $1.130 billion, reflecting approximately 5% organic growth at the midpoint on a constant currency basis [10] - Non-GAAP adjusted EBITDA margin is expected to be in the range of 35.4-36.2%, with non-GAAP EPS anticipated between $4.30 and $4.50 [11] - Non-GAAP adjusted free cash flow for 2025 is forecasted to be in the range of $195-$205 million [11] Recent Developments - Blackbaud introduced new embedded AI capabilities across its product portfolio, marking a significant advancement towards its vision for intelligent action [13] - The company launched the 2025 Ultimate End-of-Year Fundraising Toolkit to assist organizations in maximizing fundraising success [14]

Group 1 - The article does not provide any specific content related to a company or industry [1]

Core Insights - Blackbaud (BLKB) reported quarterly earnings of $1.1 per share, exceeding the Zacks Consensus Estimate of $1.07 per share, and up from $0.99 per share a year ago [1] - The company achieved an earnings surprise of +2.80% for the quarter, and has surpassed consensus EPS estimates three times in the last four quarters [2] - Blackbaud's revenues for the quarter were $281.14 million, slightly above the Zacks Consensus Estimate by 0.53%, but down from $286.73 million year-over-year [3] Financial Performance - The earnings surprise of +2.80% indicates strong performance relative to expectations [2] - The company has consistently exceeded revenue estimates, achieving this three times in the last four quarters [3] - Year-to-date, Blackbaud shares have declined by approximately 13.2%, contrasting with a 17.2% gain in the S&P 500 [4] Future Outlook - The future performance of Blackbaud's stock will largely depend on management's commentary during the earnings call and the subsequent earnings outlook [4][5] - Current consensus EPS estimate for the upcoming quarter is $1.17, with expected revenues of $293.91 million, and for the current fiscal year, the EPS estimate is $4.40 on revenues of $1.13 billion [8] - The Zacks Rank for Blackbaud is currently 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [7] Industry Context - The Computer - Software industry, to which Blackbaud belongs, is currently ranked in the top 37% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [9] - The performance of Blackbaud may also be influenced by the overall industry outlook, as top-ranked industries tend to outperform lower-ranked ones significantly [9]

Financial Data and Key Metrics Changes - Blackbaud generated revenue of $281 million, representing a 5.2% organic growth year-over-year [4] - Adjusted EBITDA margin improved to 35.4%, up more than 200 basis points year-over-year [4] - Non-GAAP diluted earnings per share increased to $1.10, an 11% rise year-over-year [4] - Free cash flow was particularly strong at $125 million, up from $98 million last year, indicating a 28% growth year-over-year [16] Business Line Data and Key Metrics Changes - The company continues to focus on acquiring new logos, driving innovation, and strengthening customer relationships through additional solutions and renewals [5] - Significant new logo wins include St. Mary's College and Concordia College, with multi-year agreements signed for their fundraising goals [7][8] - The average annual recurring revenue (ARR) from new logo deals is increasing, with a minimum contract length of three years [30] Market Data and Key Metrics Changes - Annual charitable giving in the U.S. is nearing $600 billion, up more than 6% year-over-year, indicating a resilient market for Blackbaud's offerings [5] - Corporate giving has reached an all-time high, becoming the fastest-growing nonprofit revenue source over the last five years [5] Company Strategy and Development Direction - Blackbaud is focused on mid-single-digit organic revenue growth, EBITDA growth exceeding revenue growth, and double-digit diluted EPS growth [12] - The company is increasing its stock repurchase target from 5% to a range of 5.2% to 7% for 2025, reflecting confidence in its value [12] - Investments in product innovation, particularly in AI capabilities, are a priority to enhance customer engagement and operational efficiency [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to create substantial shareholder value, supported by strong year-to-date performance [12] - The anticipated cash tax benefits from recent tax law changes are expected to positively impact free cash flow through 2027 [18] - The company is committed to maintaining a balance between growth and profitability while focusing on capital allocation strategies [15] Other Important Information - The company identified a prior period non-cash error related to income tax calculations, which resulted in immaterial impacts on previously filed financial statements [19][34] - Blackbaud's operational discipline and efficiencies are yielding positive results, contributing to higher profitability [6] Q&A Session Summary Question: Customer feedback on AI and agentic functionality - Management noted excitement around AI capabilities, with 40% of customers adopting new features quickly, and plans to monetize these solutions in the near future [24][25] Question: New logo wins and contract sizes - New logo wins are showing larger average ARR deals, with contracts typically being a minimum of three years [30][31] Question: Revenue reclassification rationale - The revenue reclassification was due to an immaterial non-cash error related to income tax calculations, corrected as a best practice [32][34] Question: Monetization timeline for agentic AI - Monetization of agentic AI solutions is expected to start modestly next year, with clear ROI anticipated for customers [39][40] Question: Structural drivers for transactional revenue growth - Transactional revenue is performing well across all platforms, with no viral events impacting growth, indicating strong fundamentals [47]

Financial Data and Key Metrics Changes - Blackbaud generated revenue of $281 million, representing a 5.2% organic growth year-over-year [4] - Adjusted EBITDA margin improved to 35.4%, up more than 200 basis points year-over-year [4] - Non-GAAP diluted earnings per share increased to $1.10, an 11% rise year-over-year [4] - Free cash flow was particularly strong at $125 million, up from $98 million last year, indicating a 28% growth year-over-year [16] Business Line Data and Key Metrics Changes - The company continues to focus on acquiring new logos, driving innovation, and strengthening customer relationships through additional solutions and renewals [5] - Significant new logo wins include St. Mary's College and Concordia College, with multi-year agreements signed for their fundraising goals [7][8] - The average annual recurring revenue (ARR) from new logo deals is increasing, with a minimum contract length of three years [30] Market Data and Key Metrics Changes - Annual charitable giving in the U.S. is nearing $600 billion, up more than 6% year-over-year, indicating a resilient market for Blackbaud's offerings [5] - Corporate giving has reached an all-time high, becoming the fastest-growing nonprofit revenue source over the last five years [5] Company Strategy and Development Direction - Blackbaud is focusing on mid-single-digit organic revenue growth, EBITDA growth exceeding revenue growth, and double-digit diluted EPS growth [12] - The company is increasing its stock repurchase target from 5% to a range of 5.2% to 7% for 2025, demonstrating confidence in its value [12] - Investments in product innovation, particularly in AI capabilities, are a priority for future growth [18][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to create substantial shareholder value, supported by strong year-to-date performance [12] - The company anticipates continued strong performance in Q4, with a focus on driving adjusted free cash flow and returning capital to shareholders [21] - Management noted that the operational discipline and efficiencies are yielding positive results, contributing to higher profitability [6] Other Important Information - The company identified a prior period non-cash error related to income tax calculations, which resulted in immaterial impacts to previously filed financial statements [19][34] - Blackbaud's guidance for 2025 includes projected revenue in the range of $1,120 million to $1,130 million, with an anticipated EBITDA margin of approximately 35.4% to 36.2% [20] Q&A Session Summary Question: Customer feedback on AI and agentic functionality - Management noted excitement around AI capabilities, with about 40% of customers quickly adopting new features [23][24] Question: New logo wins and contract sizes - New logo wins are showing larger average ARR deals, with contracts typically being a minimum of three years [30] Question: Revenue reclassification and tax restatement - The revenue reclassification was due to an immaterial non-cash error related to income tax calculations, which was corrected as a best practice [32][34] Question: Monetization of agentic AI - Monetization of agentic AI solutions is expected to start modestly next year, with clear ROI anticipated for customers [38][40] Question: Structural drivers for higher growth in transactional revenue - Management indicated strong performance across all transaction platforms, with no viral events impacting growth [47]