Summary of Blackbaud FY Conference Call (March 02, 2026) Company Overview - **Company**: Blackbaud (NasdaqGS:BLKB) - **Industry**: Cloud software focused on K12 education, nonprofits, and foundations - **Revenue**: Approximately $1.2 billion, with 85% from North America - **Business Model**: 98% recurring revenue, with a mix of transaction processing (one-third) and subscription services [2][7][12] Core Business Insights - **Growth Profile**: Achieved Rule of 40 in 2025, with organic growth of 5.5% and mid-30s EBITDA margin [2][7] - **Long-term Goals**: Aspiring to become a Rule of 45 company [7][9] - **Total Addressable Market (TAM)**: Estimated at $10 billion across various sectors [13] AI Innovations - **Product Launch**: Introduction of "Agents for Good," including a Development Agent that automates fundraising [18][19] - **Early Adoption**: Initial rollout with early adopter customers, generating contracts and interest across K12 schools, universities, and nonprofits [19][21] - **Monetization Potential**: Expected annual fees for the Development Agent between $25,000 and $35,000, with thousands of potential customers [22][25] Customer Base and Market Dynamics - **Customer Segmentation**: Diverse customer base including K12 schools, universities, healthcare systems, and nonprofits [21] - **Fundraising Capabilities**: AI agents can target untapped donor bases, enhancing fundraising efficiency [30][33] - **Retention Strategy**: Transitioned to multi-year contracts with annual price increases, resulting in over 20% of customers on four-year or longer contracts [42][44] Competitive Landscape - **K12 Market**: Limited competition with no vendor offering a complete suite of services; Blackbaud integrates fundraising, tuition management, and financials [94][96] - **Nonprofit Sector**: Few small competitors, but none of significant size directly competing with Blackbaud [105] Transactional Business Growth - **Revenue Composition**: Transaction business accounts for over one-third of total revenue, with growth opportunities in donation processing and tuition management [110] - **Online Giving Trends**: Online giving is in the mid-teens percentage of total giving, which exceeds $600 billion annually in the U.S. [117][123] Financial Performance and Capital Allocation - **Cash Flow**: Strong cash flow generation, with $208 million last year and a projected $285 million this year [156] - **Stock Buyback**: Significant stock buyback program with approximately $500 million remaining under authorization [153][151] - **EPS Growth**: Mid-teens EPS growth expected this year, with long-term aspirational goals set for the next five years [158] Margin Improvement Strategies - **EBITDA Growth**: Increased from low 20s to above 35% over the past four years, with further opportunities for improvement [135] - **Operational Efficiency**: Closing legacy data centers and transitioning to direct employees in India to enhance gross margins [137][139] Conclusion - **Overall Health**: The customer base remains strong, with resilience demonstrated during economic downturns like COVID-19 [130][133] - **Future Outlook**: Continued focus on innovation, AI integration, and expanding product offerings to drive growth and enhance customer retention [64][70]

Core Insights - Fortinet's stock has decreased by 28% year-to-date, trading at $77 as of February 25, 2026, despite achieving a record free cash flow of $2.21 billion in 2025 [1] - The company reported a 16% increase in billings to $7.55 billion and a non-GAAP operating margin of 35.5% for the full year 2025, marking its sixth consecutive year exceeding the "Rule of 45" [1] - Fortinet's Unified SASE segment saw a significant growth, with billings increasing by 40% in Q4 and FortiSASE ARR rising over 90% [1] Financial Performance - Fortinet's free cash flow reached a record $2.21 billion in 2025 [1] - The company’s billings for the year grew by 16% to $7.55 billion [1] - Non-GAAP operating margin for 2025 was reported at 35.5% [1] SASE Segment Growth - Unified SASE billings grew by 40% in Q4 2025, indicating strong demand [1] - FortiSASE ARR increased by more than 90%, showcasing significant adoption [1] - CEO Ken Xie highlighted the unique offering of Sovereign SASE, which has potentially doubled the total addressable market [1] Share Repurchase and Insider Activity - The board approved a $1 billion expansion of the share repurchase program, with approximately $1.4 billion remaining in authorization [1] - Fortinet's CFO described the buyback strategy as a disciplined approach to capital allocation [1] - CEO Ken Xie and CTO Michael Xie sold around $47 million in shares, which was a tax-efficient move rather than a clear confidence signal [1] Guidance and Market Outlook - For Q1 2026, Fortinet's operating margin guidance is set at 30-32%, down from Q4's 37.3% due to planned infrastructure investments [1] - The company anticipates billings of $8.4-$8.6 billion and revenue of $7.5-$7.7 billion for 2026, indicating continued growth [1] - Analysts are closely monitoring SASE momentum and margin trajectory as key variables for future performance [1]

Blackbaud Ticker: BLKB February 10, 2026 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 operating results, all of which are based on current expectations, estimates, and forecasts, and the beliefs and assumptions of the Compa ...

Core Insights - Wix.com Ltd. has partnered with Monotype Imaging Inc. to significantly enhance its font library, providing users access to a diverse range of high-quality typefaces that support unique brand identities [1][2][9] - The collaboration aims to cater to various users, including small business owners, entrepreneurs, and creative agencies, by offering a globally inclusive and stylistically varied library [2][3] - Wix's commitment to improving design tools reflects its transition from a template-based website builder to a comprehensive design platform, emphasizing ease of use and extensive customization options [3] Strategic Initiatives - Wix is investing in AI capabilities, Studio, and commerce platforms to advance its strategic priorities, including a partnership with Alibaba.com to enhance global trade opportunities for digital entrepreneurs and small businesses [4] - The company has also partnered with ActiveCampaign to provide an all-in-one solution for businesses, simplifying website and marketing tools to boost customer engagement [5] - Wix aims to achieve the "Rule of 45" by 2025, focusing on balancing revenue growth with improved operating efficiencies, driven by strong execution in AI and operational cost management [6] Market Outlook - Despite ongoing economic uncertainty, Wix remains cautious about its full-year outlook, particularly regarding its Business Solutions unit, which is sensitive to consumer spending [7] - The company's stock has experienced a decline of 26% over the past six months, compared to a 5.4% decline in the Computers - IT Services industry [8]

Financial Performance - Q1 2025 - Fortinet's Q1 2025 billings reached $1.597 billion, a 13.5% year-over-year increase[35] - The company's Q1 2025 revenue was $1.540 billion, representing a 13.8% year-over-year growth[35] - Service revenue for Q1 2025 amounted to $1.081 billion, a 14.4% increase compared to the previous year, and accounted for 70% of total revenue[35] - Non-GAAP operating income for Q1 2025 was $526.2 million, resulting in an operating margin of 34.2%[36] - Non-GAAP net income for Q1 2025 reached $452.3 million, with a diluted net income per share of $0.58[36] Cash Flow and Balance Sheet - Fortinet's Q1 2025 free cash flow was $782.8 million[40] - Deferred revenue increased to $6.42 billion[36] - Remaining Performance Obligations reached $6.49 billion[36] Geographic Revenue - Americas revenue in Q1 2025 was $629.8 million, a 13.1% year-over-year increase[39] - EMEA revenue in Q1 2025 reached $628.4 million, a 16.5% year-over-year increase[39] - APAC revenue in Q1 2025 was $281.5 million, a 9.6% year-over-year increase[39] Guidance - Fortinet projects Q2 2025 billings to be between $1.685 billion and $1.765 billion, representing a mid-point growth of 12.0%[46] - The company anticipates Q2 2025 revenue to be in the range of $1.590 billion to $1.650 billion, with a mid-point growth of 12.9%[46]

Financial Data and Key Metrics Changes - In Q1 2025, the company generated revenue of $271 million, reflecting a 5.8% organic growth, with a non-GAAP adjusted EBITDA margin of 34.3% and non-GAAP diluted earnings per share of $0.96, achieving a Rule of 40 score of 40.1% [6][19][20] - Non-GAAP adjusted EBITDA increased by approximately $4 million compared to the previous year, with a 250 basis point improvement in margin [19][20] - Adjusted free cash flow was negative $11 million in Q1, primarily due to a one-time $28 million cash release payment related to the Washington DC office lease and increased interest expenses [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, contributing about $2 million in incremental revenue for the quarter [34][35] - The company has transitioned the majority of its products and customers to third-party cloud solutions, enhancing operational efficiency [8] Market Data and Key Metrics Changes - The company reported strong performance in international markets, particularly in Asia Pacific and Europe, with good sales bookings and customer retention [53] - JustGiving, a platform in the UK, continues to perform well, benefiting from brand recognition and participation in major events [54] Company Strategy and Development Direction - The company aims to achieve a Rule of 45 by 2030, focusing on organic revenue growth driven by innovation and a strong capital allocation strategy [6][15][26] - The company is investing in AI capabilities to enhance customer engagement and improve internal productivity, with plans to integrate these innovations into existing products [9][10][76] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the social impact market, noting that the company has not seen any negative impact on sales bookings or customer retention despite macroeconomic challenges [6][32][46] - The guidance for 2025 remains unchanged, projecting revenue in the range of $1.5 billion to $1.125 billion, with organic growth of 4.2% to 5.1% [22][23] Other Important Information - The company repurchased approximately 4% of its outstanding shares in Q1 2025, continuing its commitment to return capital to shareholders [12][21] - The transition of CFO duties from Tony Bohr to Chad Anderson was highlighted, with both executives expressing confidence in the company's future [13][14] Q&A Session Summary Question: Impact of federal grant funding on customers - Management clarified that their solutions are not reliant on federal grants, and while some customers may be affected, there has been no impact on sales bookings or customer retention [31][32][46] Question: Performance of the transactional business - The transactional business was a key driver of overperformance in Q1, with strong growth and good performance across the board [34][35] Question: Guidance and macroeconomic considerations - Management maintained that the guidance for the year does not anticipate material changes in the macro environment, expressing optimism for continued growth [41][46] Question: Net new bookings and international market performance - New bookings have increased significantly in Q1, with a positive outlook for international markets, particularly for the JustGiving platform [51][53] Question: Contract renewals and customer retention - Customer retention remains high, with a standard practice of notifying customers well in advance of contract renewals, ensuring smooth transitions [63][66] Question: Share buyback program - The company is on track to meet its share buyback target for 2025 and will continue to evaluate its capital allocation strategy [70][73] Question: Monetization of AI technologies - The company is exploring monetization models for its AI solutions but has not charged separately for these capabilities to date, focusing on delivering value to customers [76][81]

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]