Core Insights - Blackbaud announced new AI capabilities aimed at enhancing social impact organizations' ability to tackle significant challenges, including the formation of an AI Coalition for Social Impact to address systemic barriers [1][2][4] Group 1: AI Initiatives and Product Enhancements - Blackbaud launched its agentic AI suite, Agents for Good™, designed to act as virtual team members that autonomously execute complex workflows, thereby expanding the capacity of social impact organizations [3] - The first agent, a Development Agent, will help teams identify and engage donors they currently cannot reach, unlocking new revenue streams at a lower cost [3] - Key enhancements include AI-powered insights and automated follow-up processes, transforming traditional systems into intelligent action platforms [7][9] Group 2: AI Coalition for Social Impact - The AI Coalition for Social Impact was established to promote responsible AI adoption and equip the sector with necessary skills and resources [4][6] - Founding members include various organizations such as the Association of Corporate Citizenship Professionals and the Responsible AI Institute, collaborating on a free AI certification course tailored for the social impact sector [5][10] - The coalition aims to ensure that responsible AI practices are integrated into governance, training, and product design [6] Group 3: Future Vision and Market Position - Blackbaud envisions creating an agentic ecosystem where its AI can seamlessly integrate with other AI systems, enhancing operational efficiency for users [8][9] - The company reported a 22% increase in connections to third-party applications over the past year, indicating a strong commitment to expanding its partner integrations [8] - Blackbaud's platform generates over 30 billion predictions annually, showcasing its extensive data capabilities to assist customers in reaching their target prospects [9]

Core Insights - Blackbaud has announced significant updates to its AI-powered social impact data reporting solution, Blackbaud Impact Edge, aimed at enhancing CSR reporting and providing deeper data insights [1][3][6] Group 1: Product Enhancements - The integration with True Impact allows for real-time insights on CSR initiatives, featuring a new Charity Discovery Tool powered by Candid, which provides detailed charity profiles and impact metrics [2][4] - Impact Edge now includes enhanced AI capabilities that allow users to ask natural-language questions and receive narrative responses, along with new AI-powered charts and graphs for dynamic data visualization [5] - Custom goal tracking capabilities have been introduced, enabling organizations to define success metrics and track progress with precision [5] Group 2: Strategic Importance - The updates are designed to assist CSR professionals in reporting and demonstrating the value of their programs, thereby supporting strategic decisions related to funding and partnerships [3][4] - The Charity Discovery Tool empowers CSR teams to make informed decisions on nonprofit partnerships by providing curated information and detailed community investment data [5] Group 3: Broader Corporate Impact Innovation - These updates are part of Blackbaud's broader initiative to innovate corporate impact solutions, including AI translations for custom text and an early adoption program for Form Intelligence in grant applications [6]

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]