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 - 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]