Blackbaud (BLKB) 1 May 182018 Q1 Earnings call transcript

Good day, everyone and welcome to the Blackbaud Inc. Q1 2018 Earnings Conference Call. Today's conference is being recorded. At this time I'd like to turn the conference over to the Director of Investor Relations, Mark Furlong. Please go ahead.

everyone. morning, Good us joining First XXXX Quarter Thanks on Call. Earnings for Blackbaud's four-point and review in and our will we operational the strategy. our of performance Today, our financial results on provide context growth commentary

results revenue that XXXX detailed XXX related specified comparable we ASC in is will we with non-GAAP measures. Investor and GAAP financial projected. this to CEO; for uncertainties representative contain to from more and your the on Form and our adjusted refer Please open call be today refer up cause then to our statements combination our specified, note reconciliation or GAAP Vice is Mike Unless results President a January available those GAAP Blackbaud's Joining XX-K we me results otherwise and actual questions. how make the to in A that believe of contracts customers. Please both that we risks our recent supplemental available and information adoption and more could release differ issued on CFO. substitute measure considered prepared comments last also today non-GAAP Boor, non-GAAP Mike results unless of materially on most measures We Tony and schedule we'll for of Please Relations will will our more should subject Gianoni, presentation to note not filings to from as business. for those note measures isolation a non-GAAP financial the on are risks. Please forward-looking Blackbaud's website. call. are press and a internally from X that on line and SEC Tony our measures XXXX President reflect and Executive comments, other that refer as in only to of night, and

I'll Mike investor call is I or activity, over which on Before briefly to available marketing upcoming cover the turn website. our Relations Investor

our in attending team Monica, quarter, Conference Conference York, in and in Boston. B. During Technology Conference in will Citi's the Riley Jefferies and Technology Consumer York, Stifel's the Conference New Global Small Hills, Services be and Baird's second New Cross-sector Insight Midcap in FBR's Institutional Santa Investor Beverly Conference

the the XX will also We also statement meetings Please in Florida for user's was our Dallas mark our Annual be I'll conference, Denver. Orlando, in April With investors call filed with that, be annual Mike. will June the is your XX calendars holding Meeting now that on proxy bbcon. for note Day available. our York, And New hand in with Investor XX, Shareholder conjunction and which held to please with finally, SEC October over on Boston, and

XX% Good full-year and year industry. after the our basis. millions and very XX,XXX innovation reoccurring individuals comparable move reaffirming a Mark. grow to remains Thanks, the continued a delivering guidance. unmatched a us of we're to Charitable for are new revenue today. We've high market is our total last and over customers now XX%, base financial and solid morning, of subscription-based at pace the call The in continues joining thanks of giving momentum had furthering full-year growing all-time strong. on from model our to our a start towards our of for We our everyone, finishing at mix XXXX with standing revenue reoccurring year,

of changes. bringing with want weeks development, few leadership financial Kevin I'll run Blackbaud's more on experience responsibilities our detail XX I A the years growth industry provide business Enterprise in key announcing Blackbaud joined more a to But has sent release Group, Gregoire ago, provide software strategy. few on Global management, out that leadership As veteran support a executive more. Markets spanning four-point an to our Partner usual, leadership will than with press instrumental our results of played also context and update I himself, the Tony and our first, an press product growth. sales, him as Fiserv cover lead expanded partnership lead his provide Alliances transitioned Ecosystem team, a program company's business. has former Boruff, build we mentioned That on formerly will role to where our last and in Brian fall. emphasis Microsoft will the and partner He's release XX-year who that of Brian Enterprise the growing & more announced led a

Box leadership. last London his be be our serve office. delivered XX Benjamin week and also executive Markets Moisan's David and taking with International our and announced executive best. report directly that to will time to has telecommunication in growth Group David team. outstanding David the Jerome on seasoned results of with will a based professional is and drive the great taking to me David technology, within in is Jerome wish David we spend from his We lead will joining his leadership are media family, to a Brian experience position. Blackbaud career, years Kevin, we internationally off sectors. all is our under him and position and throughout

against our Now, growth strategies. the progress made cover let's we've

and and strategies The Grantmaking, first Blackbaud cloud. open four grant is integrated comprehensive introduced of most solution. the in management We our solutions growth is which our newest

experience drive that previously and modern with capabilities and outcomes. impact called for grants cloud making saying their evolves of grantees the be deliver improve generation early The rapid Our cloud it receiving Blackbaud Online. the for able design configurable feedback by and to that to find make are intuitive takes made MicroEdge will with like quickly, high our marks approve positive, SKY and workflows ultimately they acquired very Customers data platform. collaboration Blackbaud GIFTS Aetna next Foundation product more easy adopter quickly and enhanced advantage act. greater with available been offering we has Grantmaking full possible experience innovation, a user grant the

Raiser's example, Our the adopted of Scholarship organizations That SKY-powered scholarships. with this improved access solutions, manage financial of differentiator point Omnibar able because their saving through are rapidly tracking donor sales and the just Edge ability customers which sales solutions. Edge ensures providing now customers. view our means and major them NXT, more Along better cloud teams. shifted of the theme visibility of solutions funding us to Blackbaud we Foundation our automation our fully to grant integration Health given our integrated for drive scholarships, resulting Grantmaking integrated now innovate integration, announced seamless organizations integration cloud the SKY-powered portfolio from competitive solutions they them is of the customers' power and granting our a integration a individual in tools to NXT strategy the really for and marketing Missouri for to second solutions. robust manage instead gains of to have financial is which reporting our granted Financial sign-on, one NXT. through are in that both effectiveness. is for of experience, which is also success. of with continuing and of key We've with our user AcademicWorks a We're growth seamlessly with time our with to set to digital and for consistent cloud. for me selling This scholarship. a integration Edge customers, Blackbaud will Donors leads bolstering and This holistic integration reasons also one benefiting with enable exciting a told the The Blackbaud is to Blackbaud

our within common productivity through improved procedures, metrics, driving and compensation existing on is plans sales key focus operating training, Our force reporting.

execute training solutions levels, provide virtually training those help exceeded We training outcomes, to skill results products over hours six in both drives Trillium improves largest extends expectations Trillium's our the customer and customer implemented Health our Partners, strategy in their funds XX% with their in They're customer, University. over more courses of Blackbaud lifetime of all our one acute to solutions mission Health that ASPs per care affiliated for account Trillium with example. lead now by Trillium experience, customers with great more value. comprehensive for and to retention organizational solutions total onsite Our of believe Canada. and to we is of long effectively. in advantage accelerate programs the enrolled cloud solution facilities Partners the sales attaching community-based, We and Blackbaud's customer over portfolio offered logging training, Foundation a raising and a deal executives dedicated objectives. increased of and take and them work full selling paired staff efficiently a training, analytics their term. the cloud higher retention know academically a more payments XXX and enabling improves which

third our which strategy to is expansion. turn TAM Let's

into goal expand with years. TAM we this strategy Last last expanded and scholarship sales and scale stewardship expanded software closed on consistency their them Canada into AcademicWorks management moved our businesses the $X product few our Our by now We for Blackbaud's through TAM over portfolio. and second for sales our to and years integrating is international integrate We've acquisitions the year, adjacencies quickly in new roughly quarter, near and by into investments. billion office been adding or back to acquired channel. and several executing UK to

giving quarter last platforms, of the our year, ability both JustGiving donors to leading closed fourth We individual broadening also and world's online in serve one non-profits. the

of and Olympic acquisitions JustGiving integration Just active JustGiving's is evaluation campaign to millions lives. DeGeneres money on expand the remain fundraising opportunities Show. we for changing users JustGiving our in one launched We're future development. recently, and GLAAD his skater, TAM of Rippon, are continuing on internal that raising Adam and the XXXX through Ellen work figure product Adam of The

is and profitability. Our on initiative a the operational strengthen final efficiency to deliver strategic business focus improved

in scalable You've model the productivity transformational the investments, lot we've up us efficiency continuous ago, few improvement. creates to organizational consistency us of through a changes A through years that execute making operational function been a driving towards effectiveness the more the of business maximizing about stood how heard focus and inside we Blackbaud and infrastructure operating business talk excellence initiatives, I an realignments. on in

certified we over leadership example, global For focused our a on on program management capabilities. team XXX associates in

of forward. and move to has strategic drive different for we've our functions the America's for Forbes' the enabling one different lives, within for efficiency, in our company strides objectives, our I'm reoccurring Overall, customers. towards ownership ultimately, turn ahead greater row. business. opportunity This in improve courses the us in to-date role, and empowered XXXX to we their employees take list our Employers reasons of made to and performance the and the now financial their optimize Best innovation the further single named levels a we're more customers over more cover and have Blackbaud value to year XXXX. significant call of delivering Q&A. Tony employee subscription-based Tony? pleased to spanning up It's advance We before daily been improving operating open Blackbaud's our shift every ahead there's third We've it with to opportunity I'll the in for strategic detail revenue,

forward Mike. questions. of and our QX morning, our revenue The materials press you get from highlights to XXX. of can to on focus I'll the the ASC we XXX direct Thanks, ASC to website financial recognition yesterday's we've an services so impact and moving towards what true your performance have of the and investor detail posted the immateriality a everyone. reclassified combined recurring for adoption immaterial line maintenance revenue progress Today, also Good adoption I'll key revenue subscriptions release and mix had full of in into given a tremendous revenue recurring the revenue remaining the nature been standpoint. single would of historically and We've We've stream. subscriptions given revenue made relative other revenue. from maintenance into shifting revenue recurring

University in shared these some and is line, of for that out appropriate into the we in offered a investor recurring hence, which our XXXX model, impact that is our example, of the subscription For Blackbaud classification. recurring historical we've revenue the XXXX by materials. moved mentioned it training reclassifications point Mike I'll

was revenue XX% represented total Recurring growth revenue every of out X.X% now quarter never XXX basis. is and an our over business first history. million, The XXXX. with XX X.X% more an an stable, our has higher increase organic basis company's This XXXX basis quarter, X the organic points highest $XXX the than to of recurring. dollars Moving on in revenue, of of QX been on

any low meaningful revenue full-year. customers' reforms. point our donations in in growth, identified and We haven't to expect revenue was be U.S. organic healthy QX acceleration terms budget impact recent anticipate and to-date contemplated I'll that of our our tax we've for in from note seen which growth the the

and drag We continue revenue revenue X% rate mix revenue which represent of will on growth. a revenue that slower versus We our also company XX% anticipate continued reducing revenue other QX One-time XXXX and mix declined a in of services than is total total services the to one-time although decline and of services XXXX. other at in XXXX.

profitability. to Turning

to to margin Our accretive within operating improvement earnings attributable was XX.X% It's our is items, for to upside in is margin. to land gross low. operating a margins of still also of which created XX%. income operating important million, improvement year guidance our XXX-basis-point and solid QX services first note typically This and seasonal representing diluted share the primarily particularly gross $X.XX. strong per of margin generated which of XX.X%, our We acquisitions and in We're XX.X% quarter, full versus the expecting is that some performance one-time our an XXXX. margin of $XX

a As rather This cash-based will to impact will benefits ASC the what increased cash was impact flows. three-year no from be than a longer deferral largest the margins which effect and on positively generally a commissions reminder, financial related relates five-year operating amortized life with life. XXX over of

QX to expectations in the largely seasonality free statement the cash with our is and line Moving our flow our million, $X flow negative given sheet, business. was balance which of cash typical

participate and investments of project and development. capitalized the cash move in employees million one-time all completed employee tax infrastructure owners in associated each We continued million currently to And to that any $X,XXX a cloud paying cash planning approximately federal receiving that significant Blackbaud anticipate with and XXXX new success. for company's We so February our support innovation making to can currently the headquarters amounting are I'll in we not $X and in software grant XXXX. CapEx necessary note our $X investment don't a infrastructure provided and taxes in equity in to equity

During the $X in ended cash quarter, in million we and net shareholders to paid million dividends with $XXX out debt.

to of X.X we a of off debt paying hedged portion Our less for end that calls and EBITDA capital stood times, we QX, the at X.X interest strategy times. ratio at a It's of our rate. than

very a is and efficient model our rate We effective have financing X.X%. tax roughly interest

workplace sales, You'll remember R&D strategy. from incremental marketing, that making investments call we're and last our into key XXXX our

continue scale relocate well headquarters Our objectives, effort In recorded will summary, efficiency new an short-term quarter million of one-time future expecting of in to improve before term. over sheet, in XXXX. and and collaborative We're and approximately Also costs $X strengthen that to $X XXXX We to the organizational financial for gain those $X a we prospects. and between term the of to with are the currently on our return long highly before and our a in required beginning to the plan commitment. scalability. strong of to to incurred and investments business XXXX. with our operating We're global operating majority first to for workspaces our capital and growth to between expect million activities our with be consolidate closer these create more drive And centrally in continued with beyond workspaces financial deployment investments this restructuring and plan maintaining improved an us charges more with estimated position costs of is shareholders, XXXX strategy restructuring and profitability, employees allowing in efficiencies strategic our tax our that existing maintain the balance XXXX, located and to multi-year savings against growth annual customers us growth, we and offices tax to and some payback associated and capital also associated with between modern roughly to $XXX,XXX execute full-year execution million expected further incur we initiated disciplined These two $X future our balance years long track initiative. of million guidance. approach to will

a Before Minnesota-based yesterday called approximately I Paul, to we $XX million. Q&A, Reeher want acquired company go we that St. share to for

education a This will release Blackbaud. like remain for our improve of outcomes. Their base. customers Calvin effectiveness fundraising also solution fundraising this our higher in include Reeher, out morning. and annual industry-leading sent institutions, range gifts accelerate have extend performance help a management and and will Duke major acquisition We press earlier Andy these that University, fund The College programs. capabilities customers capabilities drive intend founder, customer to to with we broader Reeher's

to the XXXX And February. contemplated in acquisition issued the size your back for our margin. our business, that of expect guidance up given dilutive We relative contribution within operating line be the the and to we let's revenue is XXXX open slightly full-year additive to questions. With financial that, originally the

have Roderick first Tom from our We'll question with Stifel.

morning. Good gentlemen. Thanks Hey, questions. for taking my

that and no understand mix out sub-seasonal guys. what's maybe – and and outperformance, revenue like mix that? for in sort between us thinking we deferred here, So, I were It revenue subscription meant payments, on what about a nice kind marry for blend of recurring and the of declining, inside broken towards we could of how, terms on numbers, the itself growing, going sort subscription it. quarter the was should revenue between of – really number, quarter which parts just guess, in deferred Thanks, with If a it's then, is that number and for perhaps the seem thinking more relative outperformance think bookings maintenance. with line, the of bit maintenance that longer and QX, question about so we but perhaps how the the first fourth but would help of there moving payments about quarter since to the sub-seasonal

difficulty just, is payments the The Thanks well, question. know, run around a related product, the Hey, Luminate some through we XXX. going our of place seasonality QX. ASC deferred. transactional bigger that as you changes see got with the end Tom. the through and And Tony. the some renewals takes lot deferred for It's we on is We've doesn't billings highest revenue, for But our result into that QX on and services-related and there have a as doesn't side impact through doesn't revenue of run like usage, as deferreds. run the of typically,

perspective, over I side we can the comparison. a expectation the transaction political business. of an of guidance and was from and the growth the transactional as of made causes QX a compares say both on specific mix to the QX think that XXXX actually So, just think to side the the tough there just We're to QX I part of lot anything holding We because XXXX our specifically. on of that to a election. I related and in versus a anything giving allude carried actually don't payments lower probably a in a there's election saw other XXXX year. from – probably comparatively, tough of total environment saw the actually compare result. than QX were various as of I would tough XXXX, don't

Blair to We'll Furby, Company. Justin go next & William

the the of you months, Tony, sort you look gave over was interpretation what on based services in Is how back growth last really a you those if just recurring impacts, few bit number us. when maybe changes? decelerated that been to right go for maybe any some noise next quickly impacts months, some growth digit was from positive Mike, looked XXX you. growth like a XX from the ASC of also sort either organically of revenue slower, the organic low-single higher guys. or recurring were wondering near-term It revenue, that what it Thanks, expect you And your treatment? obviously quarter-over-quarter, negative? there's guess then type if then, are maybe into but some growing shifted the to I'm obviously, the of And you just Thanks. the sales with and I reclassified. of on out like to recurring There've we looks changes XX

It's Justin. Sure, Mike.

changes to vertical settled market units had sales the So, The units in our we while is now. down are vertical future, now. the amount There business sales, several and months. business things facing of in territory be some we've that there the a really and minimum one last model place for have of a assignments the change has like could in but more been in related

continues that's on. in. The So settled pretty sales program though excellence

that have productivity of best really the We we which global that keep productivity program. and head to well, operating adding plans of again, performance a focus and use got where on. because and common And count a to from around practices on, focus have a as focus metrics good our selling continues returns driving on We've and systems we on international now in in tools and optimization is now is in a productivity. common see common training, environment future that driving and more sales. appropriate big a on which We'll comp and business

And is Justin, Tony. this

starting our with all that the that sell related in lot and of We recurring and to a are face moved P&L you to up change there presenting of services training, investor – as how the we're revenue with subscription On the ended of ASC in a one-time schedules parts we've and recurring other, or show well. recurring-type on got will and things of XXXX. part more model. materials moving good XXX, those relations the XXXX and re-class more then lines out the re-class, we along as and We're sold for that a was with services the chunk

where starting offer in recalculate a to impact. dollars So, move We didn't of actual restate more those go I'd the we're and recurring model. to or of expect continue back – those out to one-time move to

not. other bit recurring a our as we instance, growing We probably those nicely, moves overall have we revenue for result I the of it's growth would really expect that some of rate training, services like that were dilutive where made. a pieces that move, some to is pieces of

it. got Thank Okay, you.

business for That's It's in to that that line Justin, our basically SaaS rates additive business over a add, healthy recurring just business to related along to of I'll training bit a that attach one really customer very in and and our adopted solutions training now our the a of that. a is customers remark go I with unit. my is quite to six customer mentioned Tony's point. cloud prepared also

next to D. Davidson. Jaluria go We'll Rishi with A.

Hey, guys. Thanks for quick Two taking questions. ones. my

First, me can I you. This about ed follow-up your your and in recent help for ed. And from second strategy higher you acquisition mean, a Mike, road your is higher thinking let start us with how a perspective, Tony. you're longer have term broadly higher then ed understand I map?

ed, Yeah. of higher Sure. obviously. in see We lots opportunity

about one think have to pipeline and As like This business of science unit happens higher in have. strategies businesses a units that for of spread particular we strategy a business our in one vertical it's we lens well, focus. always to a continues. expansion that through verticals think in we where Frankly, will TAM as which given us feed education be life will this, general by big this other we the vertical of that education. is pretty higher one There's acquisitions continue beyond

move it's that unit, eliminating over solutions it's providing we as in our TAM cases, of a business more supporting think really, vertical. our to because in we're few expansion, than for higher one lot to cloud another better applicable So as frictionless vertical it's about particular just ed customers a and operating solutions but for customers, about integrating we'll But, well. time we a by verticals other win and solutions also, point through just it's And again, integration note.

you also just function Is revenue to organic be recurring revenue services should drag that the see lower growth And through growth is going a mentioned see one-time the we point helpful. organic in growth to prepared year. That's of growth QX composition being Tony, acceleration great. of less in should revenue revenue the given remarks, or Okay, low that and the your organic of of rest a that we expect accelerate? on of an

Yeah.

in going last as and this in again earlier as just election question, the happen, I associated to of saw XXXX year, QX country. I expect but I of we throughout think, services with certainly is compare, what the biggest presidential giving uncertainty we to we've of think, think, certain stated to again, an Rishi, to places Services, tough compared spoke was the year I to impacts shrink what the one not at a nearly the decline you saw about have full-year before then as and so before, and rate will as guide, accelerate it's been we'll quarter where full-year of we us for that sticking there low the be We've helpful. That prior quarter-to-quarter. saw linear in not out And year. here of we the last number. year we good to we're the again year and feel the with know,

Raymond Peterson, James. We'll to Brian go next

performance margin taking Good question, this quarter. congrats and the morning, gentlemen. the Thanks on for

are be the related going composition technology question a, going those you on of big guys. or going partnership maybe Can me, Mike, just some projects just an those mentioned forward. I know partners. for talk services Blackbaud how how from effort Thanks, one the relationship, change an a forward? to CRM, there SI to especially you area partnerships stuff. were So increased that'll about from historically,

Yes, sure.

there what going really, So, it's quarter of way transitioning an really, like is than is be to with with been a growth-oriented I leader the on with view to continuation haven't it's expand the of that. emphasis in change, think Brian's an Group. to like a Microsoft in on the before partners a global opportunity partnership. and this I with focus a would just with emerging a, classify us to and doing someone And, partnership a before. which but reach had a partners lot way dedicated we it with Enterprise still our in this we with starting Gregoire have Brian's basically we've a for partners with we've Kevin growth done as background, global is Brian. bigger

Thanks, Mike.

Yeah.

to ISI. We'll Evercore next Materne, Kirk go

the on as And Tom Kirk. in Mao for dialing you're have does a you granularity provide how acquisition at And Hi. versus those could more space? plans marketing do all, today's the in investments I such This follow-up. building and sales alter buying Mike, is in looking to R&D? some maybe

Sure. Yeah.

teams. say I'd sales America that lots and last So, We in head in we invest continue changed particular innovation. and progress count in invest we're with return a the sales. strategy way sales year R&D, architecture in we've increasing of again because the we our in on expansion quite built excellence is communicated bit productivity opportunity program, And hasn't reusable North frankly, Also the the seeing to we've quarters good that that both internationally. to driving where last see existing vertical continue and in over that. the that of of It around expansion multiple components return SKY sales we of which is consists systems. are markets, several investments Over some a and drive productivity, And better program. good

I'll user products. all shared The teams just our and our So, use one all engineering example. experience of by of is

the five every by eliminates percentage have user now toolkit a four that a of user you to back application pretty if we were product individually where experience, years, single large components time. building we related experience or So, development go

productivity. large that that that scratch that's set services architecture of you components of a to. very used lot shared a SKY have just from a one because drive are start you share And engineering when like drive tools. don't that time kind you There multiple to every and productivity across And team, of it's example. we Now, of build to

road an related talked morning, with that acquisition the announced advancement capabilities engineering map and earlier Now, don't currently to this really advanced we have. Reeher, about is that I of

strategy, engineering really significantly in doesn't change major advances our and gift officers larger but institutions. So, customers, it for for our capabilities for us pretty it

advancement And so, it capabilities. really is an our of

cool already current other several The is is our really thing platform their integrated of to solutions.

throughout markets that vertical is initially done, again, then of So, so, an education, year. and us, we other this higher in for work few as advancement a in is, move largely the and just capabilities

or Microsoft, it. how with does your a bit about deeper and XXXX? Got little you relationship results in And that talk can XXXX impact your

and lot partnership, a still and to mention much really and a of product There's market different go-to-market, on ways, road work not integration, product there's in lot going Yeah, there. map. of

take big relationship is – quite but to been We're a There's engineering, them The that which it's well. well. them in is going great. quite multiple they're on a time with growing going mature. working relationship in and it's markets, multi-year because commercial So, some which company, with vertical is

market to So, back long but this to I a lot progress. and of related is with I'm of well. again, And, his I'm the bunch spent with their relationship. Brian and knows much our their on going focus to company has about and Microsoft time metrics, time while pleased think relationships talk and there's and a a he not good at their a quite pleased model

Rob to next go We'll Oliver, Baird.

landscape if noted on Hi. had I my Mike, the bit, morning, moving question. was muted into past. out And competitive with the any did – for that been salespeople presence there's been to Good guys. that, wondering if the you you and it progress Salesforce's at adjacent in taking in landscape can Thanks competitive Tech little touch change or a much We Nonprofit just the and along in the negative? Conference year than this positive was more the either that, field.

runway more been any you, salespeople in to open there's for Thank competitive there's if the you some the field if guys. of – curious conversions? guys, moving bidding on if out successful and has Just addressing

Yeah, Rob, sure.

three made made lot last hit we've Tony years, sales important sales think we've a And That on continues. of progress sales, for to and a mentioned. close to into what on I moving people it's of But the customers, also So, progress. lot engineers. markets in

sales distributed And as to as something a progress and more should lot customers the way we've real is made engineers, described in sales in of be field So, estate close I've the that big on. strategy that what well. to specific and a related roles team is our

move right in think around returns roles the are headquarters, the you which several I any a as we a this we we our And have toward next with that we're we don't also more flexibility field. years rent, close real some we've But real the will great estate more the having think model created have well. new estate tightly a strategy as linked the lot distributed team, to world office yes, estate, real really know supports good strategy, own renters. also distributed includes the together. also but a Those customer in

a are the to We typically Related last solution. also investment So, the so. or customers quite us verticals. to the in big competitors different for institutions, it's well. competitors and in model with of Most in for single-point continues a a addition any smaller-size seen haven't model positive that proximity still all year competition, I'd we have changes, say,

change really And focused seen us. But haven't we're so, marked we at on a all.

innovation. focused predominant advance so one our competitive We're that's tuck-in good focused acquisitions our We're we're And focused like the today productivity, on focus. that and so, sales on on capabilities. our

Great. much. Thanks very

welcome. You're

Riley to FBR. B. next go Kevin We'll Liu,

Good Hi. morning.

couple ed acquisition. of then, at customer what you you'd the that follow-ups deal vertical, you. typical base Could you Thank Reeher today? a get look extent of provide? And overlap your guys does if uplift talk about in higher Just to the have kind size on you sort this within what

Sure. Yeah.

it's some have we customer percentage. So, a overlap, but not high

solution there's bigger which existing really with analytics into prospective to because which pull platform our great. then uses I in customers well to as cool really higher attach of opportunity as performance. is it mentioned, that that cross-sell base a other officers. high drive users I describe the really end strengthens market, is would and a and It's to position power our ed gift to their The customer major as So, solution the opportunity existing verticals, or them, at

compare is also to officer for that's can so this drive And about. team it So, to platform gift you what a data customers, of a team's that from major that multiple team-based think really performance performance. And performance. could their the industry team as basis pulls platform of the

So ours. it's a some we additive their performance-based that very data-driven platform. will additive platform is system, data and be to Their analytics and analytics to system, it's an and have

So, a overlap. lot we're and of about customer that, really not excited

market We know years. have platform several taking immediately. been well. their business be that we'll to about So, A folks them lot for knowledgeable our of

business. a it's Founder really job think who's we building really good the CEO, Andy, that has a leading and in fit. So, and done good

skill-wise for a it's us. so, fit great and And platform-wise,

Walravens Securities. We'll Pat JMP from have our with next question

Matt my for on Pat. Thank question. Spencer is you taking This Hi. for

are team highlighted you shuffling leadership in respective the organizations? of now, how to right the confident what you that With place in changes kind the you and right their have ranks, are making they

This Yeah. Sure, Matt. use been for months. a long planned shuffling. wouldn't many I word time; many, has the

me, involved come of speed. known And to helping for Enterprise, Kevin months, measured And has Brian several couple here from Gregoire, with is skills a a been been this Kevin executive in a the that's in program add some our Fiserv. to has related been weeks to for Kevin up so team. to background now. has partnership to and So, was partnerships, Brian change building. been Brian's

executive So, Kevin is a to add team. really the good

going Brian's partnerships his yesterday. to a think great I in given started do And then background. David job

know is. David So, words companies is I be in off that those Jerome, started not to a time remarks, family. actually lot that's prepared my I And of mentioned taking some and maybe with Benjamin yesterday. He sometimes was in actually use who role, accurate. his

that. and fact, to has to he speed already do in coming help In to started is up David Jerome come

head measured And so, be that to will seasoned up I very change our a International executive with think another Group.

planned So, months operations underway. expect those good got units bumps road. We've I both the really several in of don't and business in over any solid transitions

Great. Thank you.

welcome. You're

to next Schappel, We'll Mark go Benchmark.

you thank wondering and some this growth second and JustGiving's rate them. I for purchased indication the with JustGiving whether you taking I is you Hi. was consistent us Mike, full could Good give growth when if quarter the is rate believe my had morning question. with

to two There's really team prepared scalable consumer, Yes, the got us. add we plan. global us. integration a it so in. one that platform it's in it's I has really been unique fit The exciting really mentioned where us. a for new be. underway a things Yeah, It's and to expect interesting quarters of on for been my They're The campaign notoriety. executing a lot category great the just executive some is good Yeah. platform for is that's growth there. a remarks direct

quarters going in, with the pleased very the two is the integration for focus always really well we're plans a which growth, So, big fit, business, our us.

So, very pleased yeah, with JustGiving.

respect with what just Reeher growing? you they was then And at as rate how as revenue could well you. to an the that us Thank the firm were run quickly idea Great. of acquisition, give

through this back kind the that. closed just the multiple write-offs guidance in of come given growth good fits to had see to have, no paid of giving to et update of we'll we've you on a what accounting, thinking that done what within to well deferred it Mark, not more purchase that into granularity but at range to revenue we accounting understand acquisitions the the is morning the number immaterial an one and expect But mean, on I'd overall cetera. there. We'll any tell and so, front. that beginning acquisition. We're similar recent we that get I on hence I'm have we a year,

our think we really fit. so to mentioned XXXX revenue, it'll it's be additive I margin, slightly a Yeah. dilutive growth, organic to solid operating good

Yes.

Okay. you. Thank

bet. You

for the or additional session. question-and-answer back to turn conference We'll today's any remarks. closing Gianoni concludes That Mike

just strategic I'll pleased further on this our these really the you And to your close with we've financial objectives. our the on look progress made progress I operator. We we're Tony that plan updating thanks, XXXX the participation saying guidance. our achieve against for and next and Thanks, call morning. forward in by everyone, to call.

does That conference. conclude today's

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