Blackbaud, Inc. (NASDAQ:BLKB) Q3 2020 Earnings Conference Call October 29, 2020 8:00 AM ET Company Participants Mark Furlong - Senior Director of Finance Mike Gianoni - President and CEO Tony Boor - Executive Vice President and CFO Conference Call Participants Tom Roderick - Stifel Brian Peterson - Raymond James Rob Oliver - Baird Kirk Materne - Evercore ISI Ryan MacWilliams - Stephens Incorporated Operator Good day and welcome to Blackbaud's Third Quarter 2020 Earnings Call. Today's conference is being rec ...

| --- | --- | --- | |-------|-----------------------------------------|-----------------------| | | | | | | | | | | Blackbaud October 28, 2020 TICKER: BLKB | Investor Presentation | Forward-Looking Statements 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 fut ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 or ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number: 000-50600 Blackbaud, Inc. (Exact name of registrant as specified in its charter) Delaware 11-2617163 (State or other jurisdiction of incorpora ...

Financial Data and Key Metrics Changes - Revenue for Q2 2020 increased by 2.5% compared to Q2 2019, while recurring revenue grew by 3.4% on an organic basis [27] - Gross margin for Q2 was 60.4%, with operating income of $54 million, representing an operating margin of 23.5% and diluted earnings per share of $0.85 [30] - Free cash flow increased by 27% over Q2 2019 to $48 million, representing a free cash flow margin of 20.8% [32] Business Line Data and Key Metrics Changes - Contracted recurring revenue, which constitutes roughly two-thirds of total revenue, remains healthy but fell short of original plans [27] - Renewal rates have trended ahead of expectations through July, indicating strong customer retention [27][46] - The company reclassified approximately $4 million from recurring revenue to one-time services, impacting organic recurring revenue growth by about 200 basis points [28][29] Market Data and Key Metrics Changes - The impact of COVID-19 has varied across the markets served, with non-profits, higher education, and healthcare institutions relying heavily on technology for operations [13][17] - Two-thirds of surveyed churches reported that giving has increased or remained stable during the pandemic, indicating resilience in the market [16] Company Strategy and Development Direction - The company is focusing on profitability and cash flow, pivoting investments towards digital marketing and solutions with the highest lifetime value [21][26] - A balanced approach to growth and profitability remains central to the company's strategy, with an emphasis on delivering shareholder value [24][26] - The pandemic is seen as a catalyst for accelerated adoption of modern cloud solutions, positioning the company as a leader in this market [24] Management's Comments on Operating Environment and Future Outlook - Management expressed pride in employee dedication and the company's ability to adapt to a remote work environment [7][10] - The uncertainty of the pandemic is expected to create short-term challenges in building a pipeline and achieving revenue growth [21][25] - Despite short-term challenges, management remains optimistic about long-term opportunities and the company's ability to drive profitability [26][34] Other Important Information - The company is in the process of hiring a head of diversity and inclusion to strengthen its workplace culture [12] - Significant investments have been made in cybersecurity, with no data breaches reported from a recent ransomware attack [42][45] Q&A Session Summary Question: Cost-saving measures and structural changes - Management discussed driving productivity through digital capabilities and establishing centers of excellence to scale without significantly increasing costs [38][39] Question: Ransomware attack impact - Management expressed confidence that the ransomware issue has been resolved and renewal rates remain strong, with no anticipated material financial impact [46][47] Question: Renewal environment and customer feedback - Renewal rates are running ahead of budget, indicating that products are essential to customers' operations [51][54] Question: Focus on high-value products and markets - The company is concentrating on core products that are resilient and essential for customers, while sun-setting older solutions [62] Question: Bookings from existing customers vs. new logos - There is pressure on pipeline building, but the company is closing deals with both existing customers and new logos [66] Question: Future investments and hiring - The company is backfilling sales positions and maintaining a cautious approach to hiring amid market uncertainties [70] Question: Recurring gross margin decline - The decline in gross margin is attributed to charges related to end-of-support products and increased amortization of capitalized software [72][74] Question: Corporate Social Responsibility market demand - There is growing interest in the YourCause platform, indicating a positive trend in the CSR market [77] Question: Higher education market impact - The company's solutions support both in-person and virtual environments, making them essential for higher education institutions [80]

| --- | --- | --- | |-------|--------------------------------------|-----------------------| | | | | | | | | | | Blackbaud July 29, 2020 TICKER: BLKB | Investor Presentation | Forward-Looking Statements 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 op ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 or ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number: 000-50600 Blackbaud, Inc. (Exact name of registrant as specified in its charter) Delaware 11-2617163 (State or other jurisdiction of incorpor ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number: 000-50600 Blackbaud, Inc. (Exact name of registrant as specified in its charter) Delaware 11-2617163 (State or other jurisdiction of incorporatio ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 or ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number: 000-50600 Blackbaud, Inc. (Exact name of registrant as specified in its charter) Delaware 11-2617163 (State or other jurisdiction of inco ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 or ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number: 000-50600 Blackbaud, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2019 or ¨TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number: 000-50600 Blackbaud, Inc. (Exact name of registrant as specified in its charter) Delaware 11-2617163 (State or other jurisdiction of incorpor ...