Blackbaud Divests EVERFI Amid Slow Growth and Business Challenges

Core Insights - Blackbaud, Inc. has announced the sale of its EVERFI Inc. business to an independent private investment firm, with the transaction finalized on December 31, 2024, for a nominal amount [1] - The company is working closely with the buyer and EVERFI leadership to ensure a smooth transition while maintaining commitment to educational programs [2] - Blackbaud is reaffirming its focus on core offerings, including the YourCause portfolio and Impact Edge solution, aimed at enhancing corporate giving and impact reporting [3] Financial Performance - Blackbaud has faced slow growth, particularly in the EVERFI business, which saw a 26% year-over-year decline in revenue, contributing to a 17.3% drop in the corporate sector's performance [4] - The company has lowered its annual revenue forecast for 2024 to a range of $1.150 billion to $1.160 billion, down from previous guidance of $1.164 billion to $1.194 billion [5] - Blackbaud's shares have declined 11.7% over the past year, contrasting with the industry's growth of 17.9% [6] Strategic Adjustments - The company is right-sizing its business to align costs with revenues and has engaged Goldman Sachs to evaluate options for EVERFI [5]