Core Insights - Blackbaud is hosting the North America Corporate Social Impact Summit from March 30 to April 1, 2026, in Nashville, Tennessee, aimed at CSR professionals [1][4] - The event will feature over 250 attendees, focusing on corporate philanthropy, employee engagement, and product innovation [1][2] - The Summit will include high-impact keynotes, breakout sessions, and networking opportunities, maintaining an intimate experience despite expected growth [2][3] Event Details - The Summit will showcase product innovations, including exclusive previews of YourCause products for 2026 [2] - Attendees can participate in strategic one-on-ones, interactive activities, and evening receptions designed to foster community and collaboration [3] - Registration opens in October 2025, with early access for bbcon 2025 attendees [4] Company Overview - Blackbaud is a leading software provider dedicated to social impact, serving nonprofits, education sectors, and companies focused on social responsibility [6] - The company has facilitated over $100 billion in fundraising, grantmaking, and financial management annually through its platforms [6] - Blackbaud has received recognition from Newsweek, Quartz, and Forbes for its commitment to social responsibility and employee satisfaction [6]

Financial Data and Key Metrics Changes - In Q2 2025, the company generated revenue of $281 million, representing a 6.8% organic growth year over year [6][23] - Adjusted EBITDA margin improved to 38.5%, up nearly 300 basis points year over year [6][23] - Non-GAAP diluted earnings per share (EPS) increased to $1.21, up 12% year over year [6][23] - Adjusted free cash flow was $53 million, up from $36 million last year, representing an adjusted free cash flow margin of 18.9% compared to 12.7% in Q2 2024 [23][24] Business Line Data and Key Metrics Changes - The company highlighted strong performance in transaction solutions, contributing to revenue overperformance [23] - New customer acquisitions included significant deals with organizations like a large youth development organization and Sunnybrook Foundation, showcasing the company's strength in the nonprofit sector [9][11] Market Data and Key Metrics Changes - The company reported strong growth in the higher education vertical, with California Polytechnic State University selecting Blackbaud's solutions for its digital transformation [11][12] - The YourCause solution saw strong expansion with large customers like NASDAQ and Tyson Foods, indicating robust demand in the corporate employee engagement space [12] Company Strategy and Development Direction - The company is focused on acquiring new logos, driving innovation, and strengthening customer relationships through additional solutions and renewals [7][8] - Continued investment in innovation is a priority, with advancements in AI capabilities and product offerings like the AgenTeq AI strategy [17][80] - The company aims for mid-single-digit organic revenue growth, EBITDA growth exceeding revenue growth, and double-digit EPS growth moving forward [20][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's long-term success, citing consistent growth and profitability [22] - The company raised its guidance for 2025, projecting revenue between $1.12 billion and $1.13 billion, reflecting strong first-half performance [27][28] - Management noted that while transactional revenue can be volatile, they do not expect the same level of overperformance in the second half of the year [42] Other Important Information - The company has reduced leverage to 2.7 times, down from 2.9 times, indicating improved financial health [25] - The impact of recent tax law changes is being analyzed, with expectations of reduced cash taxes in the near term [26][87] Q&A Session Summary Question: How is AI impacting customer conversations and budget considerations? - Management noted that AI has been a topic of interest among customers, with ongoing investments in AI capabilities and new product offerings expected to drive revenue [34][36] Question: How should investors think about transactional revenue relative to long-term growth rates? - Management indicated that while the first half saw strong transactional performance, they do not expect this to recur in the second half, and any viral giving events would represent upside [42][43] Question: What are the priorities for the new Head of North American Sales? - The new hire is expected to bring fresh ideas and best practices, enhancing the company's ability to compete and drive new customer acquisitions [49][50] Question: What is the thought process behind stock buybacks? - The company has repurchased approximately 4% of its shares and is focused on balancing stock repurchases with debt repayment, considering interest rates and market conditions [52][54] Question: How is the company approaching upsell opportunities with existing customers? - Management stated that upselling is an ongoing activity, not limited to contract renewals, with a focus on cross-selling across various customer types [67] Question: What are the implications of the recent tax law changes? - The primary impact is expected from the repeal of Section 174, which will favorably affect cash taxes related to domestic R&D expenditures [87][88]

Financial Data and Key Metrics Changes - In Q2 2025, Blackbaud generated revenue of $281 million, representing a 6.8% organic growth year over year [6][22] - Adjusted EBITDA margin improved to 38.5%, up nearly 300 basis points year over year [6][22] - Non-GAAP diluted earnings per share (EPS) increased to $1.21, up 12% year over year [6][22] - Adjusted free cash flow was $53 million, up from $36 million last year, representing an adjusted free cash flow margin of 18.9% compared to 12.7% in Q2 2024 [22] Business Line Data and Key Metrics Changes - The company highlighted strong performance in transaction solutions, contributing to revenue overperformance [22] - New customer acquisitions included significant deals with organizations like a large youth development organization and Sunnybrook Foundation, showcasing growth in the nonprofit and higher education sectors [7][10] Market Data and Key Metrics Changes - Blackbaud's YourCause solution saw strong customer additions, including large brands like NASDAQ and Tyson Foods, indicating growth in corporate engagement [11] - The company is experiencing a growing momentum in the higher education vertical, as evidenced by partnerships with institutions like California Polytechnic State University [10] Company Strategy and Development Direction - The company is focused on acquiring new logos, driving innovation, and strengthening customer relationships through additional solutions and renewals [7] - Blackbaud is investing aggressively in innovation, particularly in AI, with initiatives like the AI Everywhere strategy and the upcoming AgenTeq offerings [16][17] - The company aims for mid-single-digit organic revenue growth, EBITDA growth exceeding revenue growth, and double-digit diluted EPS growth [19][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's long-term success, citing consistent growth and profitability [21] - The company raised its guidance for the remainder of 2025, projecting revenue between $1.12 billion and $1.13 billion, reflecting strong first-half performance [26] - Management noted that while transactional revenue can be volatile, they do not expect the same level of overperformance in the second half of the year [40] Other Important Information - The company is analyzing the tax implications of recent legislation, which is expected to reduce cash taxes in the near term [24][88] - Blackbaud's leverage decreased to 2.7 times in Q2, down from 2.9 times in the previous quarter, indicating improved financial health [23] Q&A Session Summary Question: How is AI coming up in customer conversations and budget considerations? - Management indicated that AI is a significant topic in customer discussions, with ongoing investments in AI capabilities and new product developments expected to drive revenue [31][34] Question: How should investors think about transactional revenue relative to long-term growth rates? - Management acknowledged strong transactional performance in the first half but cautioned that such overperformance may not recur in the second half, emphasizing the importance of monitoring [40] Question: What are the priorities for the new Head of North America, Bill Ford? - Management expressed optimism about Bill Ford's experience and insights, expecting him to enhance the company's ability to compete and drive new customer acquisitions [48] Question: What is the thought process behind the stock buyback strategy? - Management clarified that while stock repurchases are a priority, they are also focused on debt repayment, with a balanced approach to capital allocation [51] Question: How are contract renewals structured and what is the expected impact? - Management noted that renewals are typically higher in Q2 and Q4, with a smooth process expected as the company approaches the end of its three-year contract cycle [58] Question: What are the implications of the recent tax law changes? - Management highlighted that the repeal of Section 174 related to R&D expenditures is expected to have a favorable impact on cash taxes, although specific sizing is still under analysis [88]

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]

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]

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]