Blackbaud(US:BLKB)2025-07-30 12:00Financial Performance & Outlook - Blackbaud's Q2 2025 non-GAAP organic revenue grew by 68% year-over-year, reaching $281382 thousand[66, 90] - The company's Rule of 40 reached 453% in Q2 2025, a 290 bps increase in constant currency compared to 424% in Q2 2024[69, 71] - Blackbaud increased its 2025 total revenue guidance to a midpoint of $1125 million, with organic revenue growth at constant currency of approximately 5%[73] - The adjusted EBITDA margin guidance was revised to 358% at the midpoint, implying approximately 7% growth after normalizing for the EVERFI divestiture[73] - The company anticipates adjusted free cash flow between $190 million and $200 million for 2025[73] Strategic Initiatives & Capital Allocation - Blackbaud aims to achieve a Rule of 45 by fiscal year 2030, driven by consistent mid-single-digit organic revenue growth and margin expansion[75, 77] - The company intends to repurchase up to 5% of its outstanding stock in 2025, with approximately 3% already repurchased in the first half of the year[82, 84] - Blackbaud had approximately $545 million remaining under its $800 million repurchase authorization as of June 30, 2025[84] Business Overview & Market Opportunity - Blackbaud estimates its total addressable market (TAM) to be over $10 billion across various segments, including Fundraising, Financial Management, and Corporate Social Responsibility[35] - The company reports annual recurring revenue of $11 billion, based on the midpoint of 2025 financial guidance[17] - Transactional recurring revenue streams consist of Donation Processing (55%), Consumer Giving (20%), Tuition Processing (20%), and Event-Based Usage (5%)[50]