Financial Data and Key Metrics Changes - In Q1 2025, the company generated revenue of $271 million, reflecting a 5.8% organic growth [7][19] - Non-GAAP adjusted EBITDA margin was 34.3%, with adjusted EBITDA of $93 million, an increase of approximately $4 million [7][19] - Non-GAAP diluted earnings per share (EPS) increased to $0.96 compared to $0.93 in the previous year [20][24] Business Line Data and Key Metrics Changes - The transactional business was a significant driver of overperformance in Q1, with approximately 9% growth in transactional revenue [35][36] - The company has transitioned the majority of its products and customers to third-party cloud services, enhancing operational efficiency [10] Market Data and Key Metrics Changes - The company reported strong performance in both domestic and international markets, with good sales bookings in Asia Pacific and Europe [54][62] - JustGiving, a platform in the UK, continues to perform well, leveraging brand recognition and donor-driven campaigns [54][62] Company Strategy and Development Direction - The company aims to achieve a Rule of 45 by 2030, focusing on organic revenue growth and margin expansion [7][16] - There is a strong emphasis on innovation, particularly through AI capabilities, to enhance customer engagement and operational efficiency [11][62] - The company is transitioning to longer-term contracts, primarily three-year renewals, to provide better predictability for revenue [9][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the social impact market, noting that their solutions are critical for customers amid economic uncertainties [8][32] - The guidance for 2025 remains unchanged, projecting revenue between $1.5 billion and $1.125 billion, with organic growth of 4.2% to 5.1% [22][24] Other Important Information - The company repurchased approximately 4% of its outstanding shares in Q1 2025, continuing its commitment to return capital to shareholders [13][21] - The transition of CFO duties from Anthony Boor to Chad Anderson was highlighted, with a focus on maintaining operational excellence [14][15] Q&A Session Summary Question: Impact of federal grant funding on customers - Management noted that their solutions are not reliant on federal grants, and they have not seen any impact on sales bookings or customer retention [31][32] Question: Performance of the transactional business - The transactional business exceeded expectations, contributing significantly to Q1 performance, with strong bookings and retention [35][36] Question: Guidance and macroeconomic considerations - Management maintained guidance for the year, indicating no material changes in the macro environment affecting their business [42][48] Question: International market performance - The company reported good performance in international markets, particularly with the JustGiving platform in the UK [54][62] Question: AI technology monetization - The company is exploring monetization models for its AI solutions but has not charged separately for existing AI capabilities included in contracts [79][80] Question: Share buyback program - Management confirmed that they are on track to repurchase 3% to 5% of outstanding shares in 2025 and will evaluate the program based on market conditions [70][72]

[Blackbaud Q1 2025 Earnings Release](index=1&type=section&id=Blackbaud%20Q1%202025%20Earnings%20Release) [First Quarter 2025 Financial Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20Highlights) The company reported a GAAP revenue decline due to a divestiture but achieved strong non-GAAP organic growth and margin expansion Q1 2025 Key Financial Metrics (vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | Change | Note | | :--- | :--- | :--- | :--- | :--- | | GAAP Total Revenue | $270.7M | $279.3M | -3.1% | Driven by EVERFI divestiture | | Non-GAAP Organic Revenue | - | - | +5.8% | Excludes divestiture impact | | GAAP Operating Margin | 7.5% | 3.8% | +370 bps | - | | Non-GAAP Operating Margin | 28.6% | 25.9% | +270 bps | - | | GAAP Diluted EPS | $0.10 | $0.10 | Unchanged | - | | Non-GAAP Diluted EPS | $0.96 | $0.93 | +$0.03 | - | | Non-GAAP Adjusted EBITDA | $92.8M | $88.9M | +$3.9M | - | | Non-GAAP Adjusted EBITDA Margin | 34.3% | 31.8% | +250 bps | - | | GAAP Net Cash from Operations | $1.4M | $64.6M | -$63.2M | Driven by one-time items | | Non-GAAP Free Cash Flow | $(12.3)M | $51.3M | -$63.6M | Driven by one-time items | [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlighted strong execution, organic growth, and improved profitability while explaining one-time impacts on free cash flow - CEO Mike Gianoni stated that Blackbaud is a much stronger company than a year ago and is aiming to be a **'Rule of 45' company by 2030**[2](index=2&type=chunk) - CFO Tony Boor attributed the strong quarter to **5.8% non-GAAP organic revenue growth** and a **250 basis point increase** in non-GAAP adjusted EBITDA margin[4](index=4&type=chunk) - The year-over-year decline in free cash flow was primarily due to a previously discussed Washington D.C. **lease cash release payment**, increased interest expense, and timing of vendor payments[4](index=4&type=chunk) [Business Updates and Financial Outlook](index=2&type=section&id=Business%20Updates%20and%20Financial%20Outlook) The company highlighted recent operational achievements and reaffirmed its full-year 2025 financial guidance [Recent Company Highlights](index=2&type=section&id=Recent%20Company%20Highlights) Key initiatives included AI integration in the YourCause platform and the launch of Blackbaud Integrated Payments - Showcased **AI integration** and other innovations for its YourCause® Corporate Social Impact Summit[10](index=10&type=chunk) - Announced the launch of **Blackbaud Integrated Payments**, extending payment processing to third-party software providers[10](index=10&type=chunk) - Continued the global rollout of Blackbaud Donation Forms, launching in Canada for Raiser's Edge NXT® users[10](index=10&type=chunk) [2025 Financial Outlook](index=2&type=section&id=2025%20Financial%20Outlook) Blackbaud reaffirmed its full-year 2025 guidance, projecting continued organic growth and margin expansion Full Year 2025 Financial Guidance | Metric | Guidance Range | | :--- | :--- | | GAAP Revenue | $1.115B - $1.125B | | Organic Revenue Growth (Constant Currency) | 4.5% - 5.4% | | Non-GAAP Adjusted EBITDA Margin | 34.9% - 35.9% | | Non-GAAP Earnings Per Share | $4.16 - $4.35 | | Non-GAAP Adjusted Free Cash Flow | $185M - $195M | [Shareholder and Capital Allocation](index=1&type=section&id=Shareholder%20and%20Capital%20Allocation) The company actively returned capital to shareholders by repurchasing approximately 4% of its outstanding common stock - The company repurchased approximately **4% of its common stock outstanding** in the first quarter of 2025[4](index=4&type=chunk) - As of March 31, 2025, Blackbaud had approximately **$545 million remaining** under its common stock repurchase program[14](index=14&type=chunk) [Financial Statements](index=6&type=section&id=Financial%20Statements) The unaudited statements detail the company's financial position, performance, and cash flows for the first quarter of 2025 [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) The balance sheet shows a decrease in total assets and stockholders' equity as of March 31, 2025 Key Balance Sheet Items (in thousands) | Account | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $37,243 | $67,628 | | Total current assets | $627,452 | $976,308 | | Total assets | $2,102,219 | $2,495,715 | | Total current liabilities | $863,898 | $1,252,097 | | Total liabilities | $2,069,044 | $2,353,722 | | Total stockholders' equity | $33,175 | $141,993 | [Consolidated Statements of Comprehensive Income](index=7&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) The income statement reflects lower GAAP revenue but improved gross profit and operating income year-over-year Q1 Income Statement Highlights (in thousands) | Account | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $270,661 | $279,250 | | Gross Profit | $155,846 | $153,044 | | Income from Operations | $20,430 | $10,719 | | Net Income | $4,867 | $5,246 | | Diluted EPS | $0.10 | $0.10 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The cash flow statement highlights a significant year-over-year decrease in cash from operations due to one-time payments Q1 Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,388 | $64,619 | | Net cash used in investing activities | $(25,893) | $(14,510) | | Net cash used in financing activities | $(330,032) | $(394,637) | | Net decrease in cash, cash equivalents and restricted cash | $(352,869) | $(345,388) | [Reconciliation of GAAP to Non-GAAP Measures](index=9&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) This section provides detailed reconciliations of GAAP results to key non-GAAP metrics used by management [Revenue Reconciliation](index=10&type=section&id=Revenue%20Reconciliation) The reconciliation adjusts for a divestiture, showing non-GAAP organic revenue growth of 5.8% despite a GAAP decline Q1 Revenue Growth Reconciliation (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | GAAP Revenue | $270,661 | $279,250 | | Less: Non-GAAP revenue from divested businesses | - | $(23,409) | | Non-GAAP Organic Revenue | $270,661 | $255,841 | | **Non-GAAP Organic Revenue Growth** | **5.8%** | | [Profitability Reconciliation (Operating Income, Net Income, EPS)](index=9&type=section&id=Profitability%20Reconciliation%20(Operating%20Income%2C%20Net%20Income%2C%20EPS)) GAAP operating income is adjusted for items like stock-based compensation and acquisition costs to derive non-GAAP profitability Q1 Net Income and EPS Reconciliation (in thousands, except per share) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | GAAP Net Income | $4,867 | $5,246 | | Total Non-GAAP Adjustments | $57,791 | $60,259 | | Assumed Non-GAAP Income Tax Provision | $(15,351) | $(16,049) | | **Non-GAAP Net Income** | **$47,307** | **$49,456** | | GAAP Diluted EPS | $0.10 | $0.10 | | **Non-GAAP Diluted EPS** | **$0.96** | **$0.93** | - Major adjustments to operating income included **$22.2M for stock-based compensation**, **$7.6M for amortization**, **$25.1M for acquisition/disposition costs** (including a $24.3M lease release), and **$2.2M for Security Incident costs**[34](index=34&type=chunk) [Adjusted EBITDA Reconciliation](index=11&type=section&id=Adjusted%20EBITDA%20Reconciliation) The reconciliation details adjustments from GAAP net income to arrive at non-GAAP adjusted EBITDA of $92.8 million Q1 Adjusted EBITDA Reconciliation (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | GAAP Net Income | $4,867 | $5,246 | | Add: Interest, Taxes, D&A, etc. | $38,446 | $37,504 | | **Non-GAAP EBITDA** | **$43,313** | **$42,750** | | Add: Stock-based compensation | $22,170 | $33,570 | | Add: Acquisition & Security Incident costs | $27,312 | $12,578 | | **Non-GAAP Adjusted EBITDA** | **$92,795** | **$88,898** | - The company's 'Rule of 40' calculation for the quarter, defined as non-GAAP organic revenue growth (5.8%) plus non-GAAP adjusted EBITDA margin (34.3%), was **40.1%**[41](index=41&type=chunk)[42](index=42&type=chunk) [Free Cash Flow Reconciliation](index=11&type=section&id=Free%20Cash%20Flow%20Reconciliation) GAAP operating cash flow is reconciled to non-GAAP adjusted free cash flow, showing a significant year-over-year decrease Q1 Free Cash Flow Reconciliation (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | GAAP Net Cash Provided by Operating Activities | $1,388 | $64,619 | | Less: Capital Expenditures & Software Costs | $(13,658) | $(13,331) | | **Non-GAAP Free Cash Flow** | **$(12,270)** | **$51,288** | | Add: Security Incident-related cash flows | $852 | $2,028 | | **Non-GAAP Adjusted Free Cash Flow** | **$(11,418)** | **$53,316** | [Notes and Definitions](index=3&type=section&id=Notes%20and%20Definitions) This section provides context for financial results, including the use of non-GAAP measures and key metric definitions - The company uses non-GAAP measures to supplement GAAP results, believing they provide a better view of ongoing operational performance[20](index=20&type=chunk)[21](index=21&type=chunk) - Non-GAAP organic revenue growth excludes revenue from acquisitions and divestitures to represent core business growth more comparably[25](index=25&type=chunk) - Beginning in 2025, revenue and cost line items were combined due to the immateriality of one-time services revenue[15](index=15&type=chunk)

Company Overview - Blackbaud is a market leader in software for powering social impact, serving over 40,000 customers in 100+ countries[13, 15] - The company facilitates over $100 billion in donations, grants, and investments through its platforms annually and has approximately 2,600 employees[15] - Blackbaud's annual recurring revenue is $11 billion[15] Market Opportunity and Financial Performance - Blackbaud operates in a large and underpenetrated total addressable market (TAM) exceeding $10 billion across various segments[30] - The company has demonstrated improved financial performance with organic revenue growth increasing from 12% in 2020 to 52% in 2024[32] - Non-GAAP gross margin has risen from 590% in 2020 to 615% in 2024[32] - The Rule of 40, defined as non-GAAP organic revenue growth plus non-GAAP adjusted EBITDA margin, improved from 277% in 2020 to 337% in 2024[6, 32] Q1 2025 Performance and 2025 Guidance - Q1 2025 organic revenue growth was 58%[60] - The Rule of 40 for Q1 2025 was 401% as reported and 402% on a constant currency basis[63] - The company projects total revenue between $1115 million and $1125 million for 2025, implying organic growth at constant currency of 45% to 54%[68] - Adjusted EBITDA margin is expected to be between 349% and 359% for 2025, a 170 bps improvement over FY24[68] - Adjusted free cash flow is projected to be between $185 million and $195 million for 2025[68]

Core Insights - Blackbaud is enhancing K-12 independent schools' technology capabilities through its flexible partner ecosystem, allowing for customized software solutions tailored to specific needs [1][2][3] Group 1: Blackbaud's Offerings - Blackbaud's Total School Solution enables schools to improve enrollment, retention, family engagement, and academic programs by providing a comprehensive software suite [3] - The SKY API® facilitates easy customization of software solutions, ensuring schools can leverage the latest innovations while maintaining reliability [2][3] - Integration with various partners, such as Odin and BrightArrow, allows schools to streamline operations and enhance communication and payment processes [3][4] Group 2: Partner Solutions - Almabase offers a platform for digital engagement and fundraising, ensuring data consistency across systems through integration with Blackbaud's Raiser's Edge NXT® [5] - August Schools provides a centralized hub for student health and wellness information, improving efficiency and data-driven decision-making [5] - BrightArrow specializes in customized communication solutions, enhancing emergency notifications and mass communication capabilities for schools [5][6] Group 3: Company Background - Blackbaud is a leading software provider focused on social impact, serving nonprofit and education sectors, with over $100 billion managed through its platforms annually [8] - The company has been recognized in various lists for its responsible business practices and employee satisfaction [8]

Core Insights - Blackbaud is the presenting sponsor of the AFP ICON conference, which will take place from April 27-29, 2025, in Seattle, focusing on "Elevating Impact" [1][2] - The conference will feature educational sessions on human-centric fundraising, including building donor trust and leveraging human-AI partnerships [2][3] - Blackbaud aims to empower fundraisers through scholarships, leadership development, and educational programs, reflecting its commitment to effective and ethical fundraising [3][4] Company Overview - Blackbaud is a leading software provider dedicated to social impact, serving nonprofit and education sectors, with over $100 billion raised or managed annually through its platforms [5][6] - The company has a remote-first operation model, with a presence in multiple countries, supporting users in over 100 countries [5] - Blackbaud has received recognition from various organizations, including Newsweek and Forbes, for its responsible business practices [5] Industry Context - The Association of Fundraising Professionals (AFP) has been promoting professionalism in fundraising since 1960, with 26,000 members raising over $100 billion annually for charitable causes [6][7] - The AFP Partners Program allows organizations to engage with the fundraising community and support ethical philanthropy through various initiatives [7]

Core Insights - Blackbaud has launched Blackbaud Integrated Payments, enhancing payment processing capabilities for social impact organizations and third-party software providers [1][2] - The new solution aims to streamline donation processing, improve donor experience, and reduce administrative burdens for organizations [2][4] Payment Processing Capabilities - Blackbaud Integrated Payments extends its payment processing to any software provider that integrates with Blackbaud's Payments API, creating a "Payments-as-a-Service" model [1][10] - Key features include optimized checkout, automated credit card updates, fraud detection, recurring gift retention, simplified reconciliation, and centralized transaction reporting [2][5] Integration with Partners - Various partners, such as GivBee and Almabase, are leveraging Blackbaud Integrated Payments to enhance their offerings, providing tools like text-to-give and alumni engagement without disrupting existing processes [3][4] - The integration allows organizations to send personalized donation requests via text, simplifying the donation process for both donors and organizations [3] Expedited Giving Feature - The integration with YourCause will introduce an Expedited Giving feature, allowing faster donation distribution from corporate employee giving programs, with funds reaching nonprofits up to 95% faster [4][10] - This feature aims to eliminate friction in the donation process, making it easier for employees to engage in matching gift programs [4] Impact on Fundraising - Organizations using Blackbaud's Optimized Donation Forms have reported up to a 30% conversion rate and a 40% increase in donations [5][6] - Blackbaud customers utilizing Complete Cover™ experienced 0% processing fees, saving millions in fees last year [6] Company Overview - Blackbaud is a leading software provider dedicated to social impact, serving nonprofits, educational institutions, and corporations committed to social responsibility [8] - The company has facilitated over $100 billion in fundraising and grant management annually, supporting users in over 100 countries [8]

Applications are Now Open for Seven Award Categories, Recognizing Social Impact Organizations for their Use of Technology to Drive Impact CHARLESTON, S.C., April 14, 2025 /PRNewswire/ -- Blackbaud (NASDAQ: BLKB), the leading provider of software for powering social impact, today opened nominations for the 2025 Blackbaud Impact Awards, which will celebrate organizations and people achieving incredible results with Blackbaud software. For over 40 years, Blackbaud has partnered with changemakers, organizations ...

Core Insights - Blackbaud has opened registration for bbcon 2025, with early bird pricing available until July 8, 2025, and the conference scheduled for October 6-8 in Philadelphia [1][2]. Company Overview - Blackbaud is a leading software provider focused on social impact, serving nonprofit and education sectors, as well as companies committed to social responsibility [4]. - The company has facilitated over $100 billion raised, granted, or managed through its platforms annually, showcasing its significant impact in the sector [4]. Conference Highlights - The bbcon 2025 conference will feature top-tier keynote speakers, hands-on workshops, and opportunities for networking among peers in the social impact space [2][6]. - Attendees can enhance their experience by adding a pre-conference pass, which provides access to specialized workshops aimed at skill development [2]. Product Innovations - Blackbaud will host virtual Product Update Briefings from May 6-9, 2025, to share updates on six major waves of innovation in its solutions [3].

Core Insights - Blackbaud hosted the YourCause® from Blackbaud® Corporate Social Impact Summit, gathering social good professionals and corporate leaders to discuss innovation and collaboration in corporate social responsibility [1][2] - The event highlighted themes of engagement, innovation, partnership, and impact, aiming to inspire attendees to drive meaningful change [2] Product Innovations - Blackbaud unveiled an innovation roadmap for YourCause, focusing on enhancing employee giving, volunteering, engagement, and grantmaking [2] - New features include Expedited Giving, which allows donations to be delivered to nonprofits up to 95% faster, and new payment modalities for easier employee engagement [5] - Streamlined event management tools and Mobile Check-In features are designed to enhance volunteer engagement [5] - AI integration is being utilized to improve grant application processes and workflows for corporate grantmakers [5] - YourCause is expanding globally to create inclusive experiences and enhance platform localization [5] - Partnerships with organizations like True Impact are providing customers with data to inform funding decisions [5] - The Blackbaud Impact Edge™ with built-in AI assistant aims to transform corporate social responsibility reporting from static to dynamic, enabling real-time insights [5] Customer Support and Training - Blackbaud offers comprehensive customer success, support, and training programs to ensure companies can effectively utilize the YourCause platform [3] - Support is available globally, with new training courses introduced regularly to focus on practical applications and best practices [3] Upcoming Events - Blackbaud will host a virtual Product Update Briefings event from May 6-9, 2025, to provide further insights into YourCause enhancements [4]

Investors in Blackbaud, Inc. (BLKB) need to pay close attention to the stock based on moves in the options market lately. That is because the June 20, 2025 $100 Call had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also m ...