Core Insights - Blackbaud is showcasing its AI strategy and product enhancements during its semi-annual Product Update Briefings, emphasizing the commitment to accelerate innovation for social impact organizations [1][2] Product Innovations - The introduction of Blackbaud Copilot, an AI-powered assistant, aims to enhance fundraising success by automating routine tasks and providing data-driven insights [6] - Upcoming integration with Constant Contact in mid-2025 will enhance digital marketing capabilities within Raiser's Edge NXT, streamlining marketing efforts for customers [6] - Enhanced identity resolution in predictive modeling with LiveRamp is expected to improve match rates for wealth and charitable giving records, with a full rollout anticipated by the end of Q2 [6] - New features in Blackbaud Grantmaking will streamline the grant application process and integrate with Financial Edge NXT for better financial data connectivity [11] Corporate Social Responsibility - The Expedited Giving functionality from YourCause will deliver donations made through corporate employee giving programs to nonprofits 95% faster than existing options [9] - Blackbaud Impact Edge™ is now available, incorporating the Blackbaud Copilot AI assistant to help corporate social responsibility departments track and share their impact [9] Education Solutions - The Common Records Engine in Blackbaud Education Management minimizes duplicate data entry, providing a single source of truth for student information [12] - The Award Cycle Manager Dashboard in Blackbaud Award Management improves visibility into award performance and fund utilization [12] Online Giving and Payments - New tools like Donor Cover and Complete Cover allow donors to cover transaction costs, helping organizations retain up to 100% of donations [11] - Expanded payment processing solutions enable a cohesive "Payments-as-a-Service" experience, including Tap-to-Pay on iPhone for contactless payments [11]

Core Viewpoint - Blackbaud, Inc. reported strong first-quarter 2025 results with non-GAAP EPS of 96 cents, exceeding estimates and showing a year-over-year increase, despite a decline in total revenues due to the divestiture of EVERFI [1][2]. Financial Performance - Non-GAAP EPS for Q1 2025 was 96 cents, surpassing the Zacks Consensus Estimate by 6.7% and increasing 3.2% year over year [1]. - Total revenues decreased 3.1% year over year to $270.7 million, primarily due to the divestiture of EVERFI, but still exceeded the Zacks Consensus Estimate by 0.9% [1][2]. - GAAP recurring revenue declined 2.8% to $264.1 million, accounting for 97.6% of total revenue [2]. - Non-GAAP organic revenues increased by 5.8% on a reported basis and 5.9% on a constant-currency basis year over year [4]. - Non-GAAP gross margin was 61.2%, slightly down from 61.4% a year ago, while total operating expenses fell 4.9% to $135.4 million [4]. Profitability Metrics - GAAP operating margin increased by 370 basis points to 7.5%, and non-GAAP operating margin rose by 270 basis points to 28.6% [5]. - Non-GAAP adjusted EBITDA margin was reported at 34.3% [5]. Balance Sheet and Cash Flow - As of March 31, 2025, total cash and equivalents were $456.6 million, down from $809.5 million at the end of 2024, while total debt increased to $1.2 billion from $1.1 billion [6]. - Cash provided by operating activities was $1.4 million, a significant decrease from $64.6 million in the prior-year quarter, with non-GAAP adjusted free cash outflow of $12.3 million compared to a free cash flow of $51.3 million in the previous year [7]. Share Buyback and Future Outlook - Blackbaud repurchased around 4% of its outstanding shares in Q1 2025, aligning with its plan to buy back 3% to 5% of shares [9]. - The company reaffirmed its 2025 guidance, projecting GAAP revenues between $1.115 billion and $1.125 billion, with non-GAAP adjusted EBITDA margin expected in the range of 34.9-35.9% [10][11]. Recent Developments - Blackbaud has been actively supporting disaster relief efforts and showcased innovations in corporate giving at the YourCause Corporate Social Impact Summit [12]. - The company introduced Blackbaud Integrated Payments, enhancing its payment processing capabilities [13]. - Blackbaud also launched Optimized Donation Forms for users in Canada and published its 2024 Trends in Giving report [14].

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]