Core Viewpoint - Blackbaud has partnered with Nacional Monte de Piedad to enhance corporate giving and grant processing to vetted charities in Mexico, enabling companies to facilitate employee donations and corporate grants effectively [1][2][4]. Group 1: Partnership Details - The partnership allows Blackbaud's corporate clients to utilize the YourCause CSRconnect® and GrantsConnect® platforms for employee giving and corporate gift matching in Mexico [2][4]. - Employees in Mexico will be able to donate to local charities in their home currency and receive tax benefits, enhancing the appeal of corporate social responsibility initiatives [2][4]. Group 2: Platform Capabilities - Blackbaud's YourCause platform connects companies and employees to millions of nonprofits globally, facilitating employee giving, volunteering, grantmaking, and impact reporting [3][4]. - The platform supports engagement in over 170 countries, with 26 languages and 172 currencies available, making it a comprehensive solution for corporate social impact [5]. Group 3: Compliance and Security - Blackbaud has engaged in extensive vetting to ensure compliance with U.S. regulations and local laws for the movement of foreign charitable funds, partnering with Nacional Monte de Piedad to process donations securely [4][5]. - Nacional Monte de Piedad will vet charities and facilitate cross-border funds, ensuring that donations reach trusted organizations in key areas such as health, education, and food security [5][9]. Group 4: Company Background - Blackbaud is a leading software provider dedicated to social impact, with over $100 billion raised, granted, or managed through its platforms annually [7]. - Nacional Monte de Piedad has a 250-year history of improving lives through financial services and social investment, focusing on reducing inequality and promoting sustainable development in Mexico [9].

Group 1 - The article discusses the significant changes brought by President Trump's executive orders in early 2025, indicating a broad remaking of the executive branch and cultural shifts across various sectors [1] - Gary Alexander, with extensive experience in technology companies and startups, has been a contributor to Seeking Alpha since 2017, providing insights into industry trends [1] Group 2 - The article does not provide any specific financial data or performance metrics related to companies or industries [2][3]

Financial Data and Key Metrics Changes - For the full year 2024, Blackbaud produced revenue of $1,155 million, with an adjusted EBITDA margin of nearly 34% and non-GAAP diluted earnings per share of $4.07, reflecting a significant improvement from previous years [14][24] - The company's organic growth rate increased from 1.2% in 2020 to 5.2% in 2024, while the adjusted EBITDA margin improved from 26.5% to 33.7% during the same period [17][24] - Adjusted free cash flow for 2024 was approximately $245 million, representing a margin of 21.2%, up from 19.3% in 2023 [15][24] Business Line Data and Key Metrics Changes - Revenue in the social sector grew by 7% in 2024, with contractual recurring revenue increasing by 8% and transactional recurring revenue growing by 6% [14][24] - The divestiture of the Everfi business, which was dilutive to revenue growth and profitability, was completed on December 31, 2024, allowing the company to focus on its core business [7][8] Market Data and Key Metrics Changes - The company reported a gross dollar retention rate of approximately 92%, excluding Everfi, indicating strong customer satisfaction and loyalty [15] - The anticipated impact of currency fluctuations is expected to negatively affect revenue and adjusted EBITDA by $2 million to $3 million for the year [32] Company Strategy and Development Direction - Blackbaud aims to become a Rule of 45 company by 2030, focusing on mid single-digit organic revenue growth and improving operational efficiencies [18][40] - The company is investing in AI initiatives, including the Blackbaud Copilot, which enhances customer interactions and operational efficiencies [12][78] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive revenue growth and profitability despite potential challenges in the macroeconomic landscape [19][22] - The company expects to continue its stock repurchase program, targeting the buyback of 3% to 5% of outstanding shares in 2025 [20][36] Other Important Information - The company plans to invest in product innovation and refine its go-to-market strategies to maximize new logo acquisition and expansion within its customer base [26][36] - A one-time cash release payment of $28 million was made in connection with the lease for office space acquired as part of the Everfi acquisition, which is expected to improve adjusted EBITDA by $3 million to $3.5 million annually going forward [28][36] Q&A Session Summary Question: What are the biggest opportunities for new market growth in 2025? - Management indicated a shift in focus towards net new logos, particularly in K-12 education and other verticals, with expectations for increased bookings [42][45] Question: How does the company view the impact of federal dollar allocation changes on its customers? - Management noted that they have not seen any significant impact yet, as their platforms primarily drive donations through individual donors rather than federal funding [54][56] Question: Can you elaborate on the factors affecting the free cash flow guidance for 2025? - Management highlighted several impacts, including a $28 million one-time lease buyout, investments in India, and increased interest expenses due to stock repurchases [58][61] Question: How does the company plan to achieve the Rule of 45 target by 2030? - Management discussed a mix of cost savings, operational efficiencies, and leveraging AI to drive productivity as key strategies to reach this target [66][70] Question: How is the company's data impacting AI development opportunities? - Management emphasized the extensive data available within the industry, which is being utilized to enhance AI capabilities and drive revenue growth through improved customer interactions [75][78]

Company Performance - Blackbaud reported quarterly earnings of $1.08 per share, matching the Zacks Consensus Estimate, but down from $1.14 per share a year ago [1] - The company posted revenues of $302.23 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 0.87%, compared to $295.01 million in the same quarter last year [2] - Over the last four quarters, Blackbaud has surpassed consensus EPS estimates two times but has not beaten consensus revenue estimates [2] Stock Movement and Outlook - Blackbaud shares have increased approximately 8.1% since the beginning of the year, outperforming the S&P 500's gain of 4% [3] - The future performance of Blackbaud's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is $0.98 on revenues of $292.03 million, and for the current fiscal year, it is $4.50 on revenues of $1.22 billion [7] Industry Context - The Computer - Software industry, to which Blackbaud belongs, is currently ranked in the bottom 46% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Blackbaud's stock performance [5]

Core Insights - Blackbaud reported significant improvements in its financial model over the past five years, with a focus on revenue growth, cash flows, and operational efficiency, aiming to become a Rule of 45 company by 2030 [2][4] Financial Performance - For Q4 2024, GAAP total revenue was $302.2 million, a 2.4% increase from Q4 2023, while non-GAAP organic revenue rose by 3.2% [7] - Full-year 2024 GAAP total revenue reached $1.2 billion, up 4.5%, with non-GAAP organic revenue increasing by 5.2% [11] - GAAP recurring revenue for 2024 was $1.1 billion, representing 98% of total revenue, with a 5.4% increase year-over-year [11] - The company reported a GAAP net loss of $330.8 million for 2024, primarily due to impairment and disposition charges related to EVERFI [7][11] Cash Flow and Stock Repurchase - GAAP net cash provided by operating activities was $73.6 million for Q4 2024, an increase of $76.9 million compared to the previous year [7] - Non-GAAP free cash flow for 2024 was $228.8 million, up $93.3 million from 2023 [11] - The company repurchased 10% of its outstanding stock in 2024 and plans to buy back an additional 3% to 5% in 2025 [4][12] Future Guidance - For 2025, Blackbaud expects GAAP revenue between $1.115 billion and $1.125 billion, with organic revenue growth projected at 4.5% to 5.4% [11] - Non-GAAP adjusted EBITDA margin is anticipated to be between 34.9% and 35.9% for 2025 [11] Company Highlights - Blackbaud has divested from EVERFI and resolved most of its outstanding security litigation, allowing it to focus on enhancing customer solutions [4] - The company emphasizes its commitment to social impact and operational efficiency as key drivers for future growth [2][4]

Hundreds of Thousands of U.S. Charities Can Now Receive Cryptocurrency Donations through JustGivingCHARLESTON, S.C., Feb. 12, 2025 /PRNewswire/ -- Blackbaud (NASDAQ: BLKB), the leading provider of software for powering social impact, today announced that it is enabling cryptocurrency donations to U.S. nonprofits through its JustGiving platform for peer-to-peer fundraising.Cryptocurrency donations are already seamlessly integrated into all JustGiving fundraising pages in the U.K., and this feature is now ext ...

CHARLESTON, S.C., Feb. 5, 2025 /PRNewswire/ -- Blackbaud (NASDAQ: BLKB), the leading provider of software for powering social impact, will report its fourth quarter 2024 financial results on Tuesday, February 18, before the U.S. financial markets open for trading. In conjunction with this announcement, Blackbaud will host a conference call at 8:00 a.m. ET to discuss the company's financial results. Event: Blackbaud's Fourth Quarter 2024 Financial Results Conference Call Date: Tuesday, February 18, 20 ...

Members Bring Deep Expertise on the Needs of the K–12 Independent School Market and Advise on Technology Development CHARLESTON, S.C., Feb. 5, 2025 /PRNewswire/ -- Blackbaud (NASDAQ: BLKB), the leading provider of software for powering social impact, has welcomed a new executive director and new members to its K–12 Executive Advisory Board, which gathers leaders from prominent K–12 independent schools across the U.S. and Canada to offer their expertise on the needs of the sector. The 19 members on the curre ...

Blackbaud, Inc. (BLKB) has collaborated with True Impact, a platform that helps organizations measure the real outcomes of their donations, volunteer work and other contributions. This partnership introduces a unique integration between True Impact and Blackbaud Impact Edge, an artificial intelligence (AI)-powered tool for social impact reporting and storytelling designed for YourCause corporate clients.YourCause acquisition in January 2019 enabled Blackbaud to boost the renewal of cloud solution contracts ...

Multi-Year Gift Will Help Strengthen Communities' Ability to Withstand Disaster and Recover Equitably CHARLESTON, S.C., Jan. 29, 2025 /PRNewswire/ -- Blackbaud (NASDAQ: BLKB), the leading provider of software for powering social impact, today announced that its 2025 annual major gift will support the Center for Disaster Philanthropy (CDP), a nonprofit organization that helps individuals, foundations and corporations increase the effectiveness of their philanthropic response to disasters and humanitarian cri ...