Blackbaud (BLKB) 4 Aug 212021 Q2 Earnings call transcript

Good day, and welcome to Blackbaud's Second Quarter 2021 Earnings Call. Today's conference is being recorded. I'll now turn the conference over to Steve Hufford, Director of Investor Relations at Blackbaud. Please go ahead, sir.

Good morning, everyone. on quarter us earnings joining for Blackbaud's XXXX second call. Thanks

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

are shows the Virtual will and quarter, our investor road Conference, XXth attending in Software that investors and Conference be in I'll I'll and Jefferies and Annual both Investor that Technology third virtual abroad. Oppenheimer will non-deal we Internet call with participating Mike, recording domestically remind the available of turn and Communications during be team Relations the our our March the mention website. I Before held on also you over full presentation to session a virtually

you're turn in connecting one of Mike. at that please I'll call these the to interested you events With If over email ir@blackbaud.com.

Thank joining to quarter progress to as you for digital-first you recovery the accelerate. shift call world had Steve. markets Good morning, toward continues today. everyone. a another and Blackbaud a Thank post-pandemic strong our our

our much We ahead as strong half half, performance given so second to we year be have company. to as we detail we're several And the revenue cover QX the look about and continuing out the but scenarios a the for excited with years. could through financial through outlook success of likely. more financials will upside combined our trends our more suggests Tony best the exceed well-positioned next to this first first our call with in on latest shortly, look estimate earnings our half the to laid scenario

over the past last adopt capabilities will the in even say X.X taken solutions. have me cloud and heard industry place to catalyst be years You've faster the digital that modern events purpose-built towards for move the

company hold the our half as our first customers we I behind we're on and take the our bullish through I'm seeing for this With and outlook believe market, XXXX. move increasingly us,

recovery now We of impact our across across quarter. second in broker different the the pandemic we're is we itself continue share board. encouraging believe ways outlook we seeing program in signs our stock the given markets thus Blackbaud's continued The but undervalued serve, to manifested buyback and the of

on highest according Charitable of year growing XXXX billion Giving over record US fact was $XXX Giving the USA. In to to

organizations leadership our And conference K-XX in-person again event rise. featured A having K-XX the also we learning to done by stay. the events of customers Giving addition with to overall, the innovation on month, private for positioned as we as the our remain market percentage now believe fundraising. thought is record sessions see around levels great revenue registrants XXXX. schools. in-person for practice across in We're as vertical payments and planning half for a from vertical, in-person X% the grew the across social year-over-year were for and from well organizations physical platform, second and from with markets in more and of best school virtually zoos, here XX%. planning admissions thousands our good schools are attendance of organizations for serve. upcoming in online now virtual and Blackbaud total the dives navigated absence management. example events arts best data and areas Last the In year the the as long-term leader This XX% annual see our at last are went cultural challenged overall Giving to trend return education associated and volume all tech and where and events we to The lost other school cultural industry We is partner the of to but management of beginning is a can of we in updates of deep well museums all the very during the K-XX year, hosted hybrid

with enhancements the to a operate few the pandemic updates year, customers' start innovative last cloud we've our to reprioritize Turning support provide in I'll as to changing strategy. I'll quick the our product to with expedite our strategy they four-point quarter. began needs solutions. and delight digitally. more context to of been customers Since adopt

we're open seeing For the organizations cultural doors. and mentioned begin arts to I example,

the they maintaining as high and standards security for patrons a As their of top priority. reopen, safety

three their encryption. credit donations of card card magnetic offer certified to and from This faster handling Merchant and them staff Services. organization minimize and of enables it during chip payments point-of-sale, So Altru credit fraud solution weeks swipe cards with with that contactless for few tickets this tap than device and Blackbaud just a protects but constituents allows to Not process times readers EMV end-to-end payments only to a organizations the availability Blackbaud and ago, does terminal. announced we general secure receive payment

announced by of fundraising Canada. the availability peer-peer powered and also Blackbaud quarter, in general During JustGiving New Australia, we Zealand second

looking JustGiving bring even has fees changer subscription and no organizations already raise be this sub the funds more across with to to to globe, more a costs. organizations solution digitally turnkey or thrilled proven to game we're for

We a to and away We've customers. pricing recent and our fixed platform have unique model, structure JustGiving our us JustGiving of a this. voluntary tremendous from globalizing true progress fee years another for is approach contribution example a products in with a win-win yet made

long-term. and YourCause market the mass Additionally, forthcoming US, market Canada participation see in And events poised continue we have made sustained return The international capture our our to innovation I the tremendous us investments, out in medium Australia as with build as we international drive further look in and pricing globalization, in engineering Canada, optimistic our strong to a that for efforts, is ability innovation short, before, Blackbaud's no we said partner Australia. the of UK as growth the programs. longer to launch is about plus alongside opportunity we'll markets just launches and

alike. last we with year-over-year, and annual partners Conference, where was resonating our for Just and customers in hosted Developers' our support attendance month, APIs investments open up XX%

are new their possible and of community Our we're vision beginning passionate power of here. scratch a create just to needs evolve, as capabilities of evolve is amazing what's social and about to who organizations partners, developers the good the to that surface

to ESG day around Blackbaud's anniversary. some on I'll focused just our building capped employees whom good industry. initiatives. good since and work; have communities on watch on And cover one off our grow business reflect inside product are to been focus world. this our both social support of our This enable And year entire marks been success. XXth a with celebrate customers We providing culture Next, a social employees month-long as one, better and more from celebration the just strategy our drive has our steadfast we outside commitment to to all we of to remain our which purpose-built milestone, people solutions and to we in our

and come reflect we experiences, to diverse and honored Our and backgrounds that these made take the a of we're promote over. alone, good Juneteenth. justice company to PRIDE help over celebrations month honoring from In unique and observances purpose employees is who from and to world, equality, and differences higher thrilled contributions celebrate up June further all

culture retain a which to new And site. with attract This is QX, reduced focused efforts campus our hires to understand and recent marketplace organizations. and AI, enables data presence social strategy pipelines accept device. of diverse for programs, to employee personalized applications more launch furthered creation to operations. environment. a inform of me apply brings teams talent roles top candidate, the our on the this the when half, to including in off Our globe, big experience our critical create leverage of our our to us to is best-in-class to key via around and and HBCU strong and talent, investments. lead future with the us new today's diverse with a workforce even by enables approach. to start also step build It This This outreach careers create we new national of visibility, of with internal time combined world-class we're and strength corporate candidates building enables to our especially digital-first talent parts also us strategy establishing In on better and finish experiences mobile analytics lift the

drive retention one to improving effectiveness support Market this the expands of in improve who Enterprise of to sales create the from customer reporting include US growth. to In our company to XX. you towards operating align said, our heard our previous and Market Group We merged group Rule and as session strategy Gregoire investor an quarter, strategy during did better overall second our I've this resources and we efficiency to market performance measured by March. As Group General upon Kevin many of

incredibly executive delivering all and strong We a strategy. team. We're our on executing mission have our on leaders capable

General of building by Which Business to me partnering markets acquiring into As Group M&A strategy Markets Mooney, Kevin as our existing and now change, Strategy President near-adjacent addressable led who to our Vice on is markets. focusing this and total our part expanding our and Development. Executive brings expand within recent previously market

and year a exception our M&A with primary driving pandemic. was growth our customers, liquidity We strong employees, our during of have historical given the track being inorganic record last an revenue on preserving focus through

showing acquisitions and reiterating about of post-pandemic of our you that opportunities history of by recovery. is growth. are remind to summarize double-digit a important bullish be M&A, the evaluating combination strategy actively revenue of element organic ahead market of for as signs we strength now I planning opportunity that I'll The us. continue are organizations and the growth I'll with remain going We forward. have an growth

leadership our position. to customer make success like continue in we areas to investments We and key security, innovation, as extend marketing, look digital

we of sights We and the had to on inorganic our ahead of over growth front drive financial performance I'll of acceleration about a in up opportunities and solid Tony turn Blackbaud Overall, XX. the With Tony? meaningful us we it organic substantial opportunity and the first have to to in Rule set in is quarters a context call us. years. next of for several before capture coming open Q&A. I'm the half the that the excited well-positioned

Thanks opening cover morning outlook up I'll results our full before the Today year QX Mike. for line our for the your for questions. and Good everyone. latest

which positioned to our XXXX half financial execution posted detail another had refer the our performance. materials We to for press QX the quarter well the the release of has second solid year. of You into yesterday's investor of heading and full us can website

was quarter pandemic. volumes the the we saw payments expected of revenue recurring flat was roughly onset year-over-year at our the given compare tough the of growth which in elevated inclusive Second business,

the on said recurring during bode half. macro-level in services grew levels as and of is growth renewals well on early second a other as declined result mid-single-digit us online revenue continued trends demand in future. increased total last in as which million drivers, giving, revenue to the bottom on total a soon we revenue lift growth approximately to growth million XXX drag we're which point and and for was and core quarter XXXX basis as should our XXXX. as our Again this And pent-up in coupled $X contractual the create drag Our seeing achieve which low with revenue opportunities of growth. call, $X I expect bookings for to the the One-time business revenue

EBITDA of adjusted Moving representing quarter was margin to of of and generated second earnings, our We gross an XX.X% EBITDA margin million, $X.XX. earnings $XX XX.X%. per diluted adjusted share

cost -- committed was which digital-first pleased in enhance As progress payback base our last to further sales year our I'm improving you strategy really and with evolved productivity which made sales go-to-market to has substantially reduced we velocity. being increasing know remain with CAC the go-forward we substantially marketing. sales our and a mindset and

make business and of level as of critical in customer providers. our in increase We like XX% best are current security, statement I'll continued to year that's brings our full for holds half. to success roughly engineering, plans estimate reiterate and the investment our areas margin, cloud second the cloud sheet. investments service balance our of EBITDA estimate marketing, the that cash for third-party shift me also continuing to related digital infrastructure to call to the And flow adjusted XXXX. That the

and flow a was an free QX representing margin cash cash Our free million, approximately million $X of year-over-year, flow of $XX XX%. increase

$XX And just customers and market ended with best company, collection performance the cash in the still quarter example opportunistic the are repurchases where and in June. quarter. million heading we're valuation month one As We ever our today fully showing as $XXX feel the use reflect the of company. to had that We completed we share debt. Mike net signs We put of strong million of does as cash recovery. not out, month a pointed a this, as that, of during our

capacity. a Our of we at ratio X.X our $XXX less times. which leverage ratio. the calls X.X And end for we QX debt-to-EBITDA And of capital times optimal targeted stood strategy had than is at borrowing million of

current our authorization. repurchase remaining As $XXX of million under had approximately available share June and XXth, we

look we determined are plan share by to estimates our we continue executing opportunistically internal that undervalued market. the repurchases, on company's forward, As shares when the

first now performance. into we half the durability visibility from greater our performance our our revenue second outlook us, half to Moving quarters for behind a XXXX, two we're perspective, of revenue and streams. by recurring encouraged our have With

for our a pandemic out, accurately done the we've on And put call. said ranges again it like predicting However, we XXXX, revenue perspective in guidance definitive best remains laid provide past. the particular, magnitude our on the us estimates out I'll QX to heightened relation for transactional the makes challenge. That of scenarios difficult in the level duration in variability our latest in to

and our This to million performance our in combined roughly $XX we latest to anticipated million we suggest estimate one-time half growth, scenarios grow $XX of is in may Contractual our in which revenue in and modeling of And confidence, that expected is first us inclusive Our with other of best exceed modestly gives set revenue. for, achieve post-pandemic. services acceleration revenue could decline million the additional we're $XXX upside million recurring million. the is $XXX an revenue business XXXX. an we'll optimistic core to of up $XXX

as pickup At see the in-person which half beginning in year. for the associated revenue to second continue the through pre-pandemic effectively And our success on our exchange and I encouraged recovery expect Shifting velocity. levels. first as and The to our return off like and We second and in combined own events, expect average acquisition taken the to And in improvement, reduce table. seeing half, expect foreign bodes our this reduce a as a while result do customer to in progress cloud our to to revenue we continue profitability not rates COLO future bookings sales half. the we're costs. to we're we in cloud we're of enhancements able related to see go-to-market marketing service expense, to of customers of flow, have payback making providers, period schedule associated third-party the the migration increasing well in gross duplication customer initiatives scenario point, with significantly margin transactional will our infrastructure favorable the downside cost which footprint cash we're our the to well sales trends

profitability. costs While revenue in we're and term remains variable ultimately somewhat to in manage ability our near the confident

approximately earlier, year. expected adjusted be mentioned I thus, more full latest weighted As call second modeling the of to for margin continues XXXX an our and of half to XX% towards the investments EBITDA heavily for certain are

the bookings Our be half flow. transactional a flow a to challenging free pivot a And table. million our downside With variability flow confident very now for $XXX our vary we've the second precise the effectively XX feel positions million cash on on gives flow and million revenue for modeling that bookings to in we $XX us second of revenue is future free post-pandemic investments revenue. inclusive Rule could to our it given heightened The half. on suggests will $XXX of year, case significantly flow at we XXXX, of potential in free this makes second greater generation. roughly floor, transactional performance, improve profitability $XXX cash we heightened depending and confidence set in generate million free materially exceed said, we our Again, cash emphasis cash and to free us cash least environment, for the half off expected thus, year-to-date of XXXX. latest But in could of estimates in generated place,

were capital positioned year excess us, grow the with repurchases. We also deployment behind returning strong and at positive for strategy, against beginning management, the balance including executing the business, for for in adequate shareholders, sheet more and half which to the incrementally levels access identifying are we rigorous our option investments well oversight very additional will capital first the we calls business ensuring and continue of efficiently summary, of including XXXX. to the share through acquisitions a of to capital In than

as significant we And exit performance. of us. visibility see greater the our ahead opportunities have growth near-term we We into pandemic,

the see to our as low ability our early to with allocate And combined value long revenue repurchase on capital open growth up potential your which share program, with margin a expansion questions. We of as proven as ample and capital to us XX are a accelerating path. next I'd for the to our our long-term initiatives, aiming our with that optionality provides the and like hit includes our With that, the term. to over in growth year. on We're mid-single-digit line mid- goals renewed focus and achieve that strategy, for shareholders way Rule increasingly confident growth, company maximizes M&A our us in puts to

you. Thank proceed Lane comes question. with Please line from Stifel. first Our your [Operator Instructions] the Parker with of question

seen reckoned Hi, solid better particular my the better than back I contractual or here trended that for Has planned. have areas play taking been much environment and year seen guys. recurring according or move Thanks to that at of the question better any strength there the If year? Are markets a bookings across end business and renewals quarter. all revenue, little have look in? that and this obviously, a into as you bit the you the half of also

morning. the well. this back are so Hey, Bookings area no doing others. Parker, stronger far it's Mike. come renewals Good pretty and have pretty than that's No, particular much year well

sort seeing slow a areas. of looks we're two in So plan pretty recovery those and good to everything

alluded bit And it. on there. you the script little to then, Got a it

you the is everyone you uneven conversations obviously around existing variants a that here, reformatting year, sort that potentially lot plotting to different half? the events back ahead half or as little they've customers news real-time potentially Some of there's of your events for And stuff back from with of the seeing return a the to of expected the be are plans made any in going COVID. seem Are any in disrupted with opening. things around

Yes.

events are around are lot as So well. events high. is Australia still is look It scheduled, But as like moving U.K. delta is open. smaller cases world. far, still pretty good are There's U.K. the different you planned. everyone are marathons, just major struggling. still outdoor The of the is major Canada in is on. following a wide The those ahead, Vaccinations

But, year this coming a time. back planned. having general, the events the in tough ones major we they're So are and see still

So no changes yet.

that, So watch obviously.

and lot of spring stuff was Yes. note, time walks will in runs to as the going and I fall a big and And the rides well.

of already kind those we planned be year the year. of as this So missed hit well. And first in for kind they'll next to half of

Great guys. feedback. it. Got Thank you,

Sure.

Thank you.

from James. Our the next Peterson question your Raymond Please of Brian with proceed question. line comes with

gentlemen. morning, Good

marketing the that started is any I the we middle of of investments So you the maybe pipeline? way see more investments, some on to hit Is have on overall and efficiency impact to comp? wanted the of those And on made there bookings some market or that that's what investments. digital impact to the other to or the size done

mentioned and in This with things I pretty holding lead on investments call, Mike. maybe Yes. and made is bookings gen. the a well is, marketing to of Yes, is one of Good less this year-over-year are digital we true we've to which and morning. point quite And headcount. the think bit QX lot plan doing that we've a

So sales productivity. that goes towards

Some we've the digital attributed to investments of is that made. that

to So the was again year. total better much is it than the pretty bookings could ratio pipeline -- And last build is headcount just you good. see

other comes Brian, on offers a is the of velocity the with down lot I on that to headcount. again, over that with add a heads shrink -- periods. is seeing of we've velocity still of moving more less that's good bookings the thing a But do work the productivity down all We're at of seeing focus, to less the especially we're got cycle, the Tony. kind results. improving end and and improvements There's trying hit also significant heightened to units with sales Mike mid-market we're lot would in simplifying opportunity, sales day. coming this the

hit on K XX to to I maybe good the And That's space. just Understood. hear. to wanted

we it's K more that's the that's into characterization resources. the coming lot get seeing of market. local head for as guys. and XXXX funded a school of been environment reasons. year? also news we're your been demand Thanks of state kind funding the But historically, for to I to XX And obvious into think Mike, in by I want the federal

really Sure. not that I'll private the great we've a for space. and you portfolio got us, school in Strong there product public Yes. that remind the we're market continues. K-XX space,

different related faith-based it's after market, And a we there's funding. lot K-XX opportunities new of So us got there for well, to market market on really new also But continue getting a because it's schools solid in all-in-all, and opportunities a the the concentration there. that market to and go in faith-based we've as so. we're

you. Thank

Our line of Koji next the question comes proceed Ikeda with Bank Please your with of America. from question.

No. Maybe he’s not there.

Sorry. Thank you.

Our your Baird. next of Oliver question comes with line from question. the Rob with Please proceed

two. Great. you guys. Appreciate, you, morning. had Good one taking then and the follow-up Thanks for I questions. you. Mike for Tony

where market the investor So world one-third the like I investments. those like you market. quick had pandemic or and where about you opportunity, of see And -- an ed. and And their you any initiative be seems higher I kind just Mike, the still I'm the might expecting migration think of a buy. everybody event guys the guys reimagine then, a that those at two. Giving here, But the give a in really that markets because out with initiatives to of good said ago curious, jibes away follow-up. I two and seems still like a just faith-based profit emerging not about Charitable still think But and few and you has calling And you you mean plan just McDearis all be, Kevin are from is most couple know exactly near-term are to that curious the the taking pandemic kind I had -- that guys laid in I world opportunity faith-based for out that and know that is laid held you near-term the how where great. created was change that not-for-profit cloud to years of product attractive

sure. Yes,

I So platforms opportunities, the as ahead. those are categorize and moving wouldn't the there we -- good opportunities keep tough but those

ahead our portfolio space faith of area our more one that it's driving Management solution we're in the we then now and -- and the So Church existing in that still a selling those platform, in keep new and space. portfolio in

second education is management. The one

platform a sold and and that universities and being to do that that continuing is new we're platform have out. smaller We build to colleges

mention The acquisition, corporations investments third of is Very, I'll YourCause in We're as the and very capabilities space more though some while engineering area well. engineering platform is on down the made there lot we that a growth well in strong. really our as of international and capabilities a in back. YourCause with doubling for adding

so, are a It in we're all get and logos are moving continuing those closing confident the along. move deals feel new we time along pretty And for those new of them. going all to but takes all and of new while the ones to and

I year? little heard or half that right. increase the in some the you second team. Okay. changes reason if bit for had a making about a And sales just a that sales are -- Great. Thanks guys Is will investments could on this expense of is know that bit little And consolidating that the Mike. then, Tony mentioned you – profile Mike that, second half, I about that talked think I you talk said you bit

security that's investments to going Rob, those No areas core be so more Yes. our and in fits. IT, is in R&D where

increasing to Hardening NXT environment, all kind platforms on doing. that there We're our security those work investment we've and to So continuing of more investments, move resources. that's been out of just to of one data SKY innovate seem third-party crazy in always COLO get take we Getting is our to and that's that centers and things world cloud live a to continues quickly. providers.

area. RDO, done velocity Those believe digital marketing going more improving of more but on and improve sales bookings focus and the spend that We back quickly. get marketing the trying net less kind and it to before. allow to with the us of major investments that day. think was I are simplifying, So buckets the is levels redeployment streamlining of this don't increasing at IT, to to end We that expect the come corporate security

you. Thank

with Ikeda of next comes Bank Our with question question. line Koji your proceed of Please from the America.

guys. Hey,

was for Sorry question. taking Good about my I that. mute. everyone. Thanks morning, on

me. from couple a Just

being last XQ? just understand mechanics to how Just I understand pandemic. payments in thinking had with quarter about being the I'm of compare the last trying thinking you. about third a I be the it over in year quarters, should onset payments with and down think next being forward the with last QX. quarter the up fourth payments there tough few we year in – looking then Thank payments

Yes.

payments. The just we holidays have GivingTuesday fourth different just that is it's around and with So the some do events normal seasonality quarter and ramp-up seasonality. like a always

back. with the capabilities press centers quarter, some We got with ticket that are this comprehensive week that payment now, museums, release performing and we've opening up, two centers runs platform seeing there's starting are a our year closed and with Altru just like or is changes For sales, new out back. ticketing with coming institutions Altru Altru that about platform. art some presence Also ago. We payments to announced were strong which there last institutions some of art a terminal. on a are including those that. And We're events that coming sent QX and performing come right the

fourth pretty that see they're quarter dormant ago to year. and starting we're year again this the market in in quarter So and a last operate

some good markets. those regarding So stuff happening

across out as the the this we've board. – the for and discussed. the to That's predict one again our to payments what's second hardest half probably biggest going it's wildcard the of kind Probably is Tony, is shake

for maybe Got Thanks. Tony. it. follow-up And it. you a Got

that comp. I we you pandemic changes bridge from that curious levels way to remind I lapping almost change? with up the year that Just was for taking our now trying comp if believe made the my comp Thank in really last to a about showed stock comp the around non-GAAP to stock I stock good here. were around that think we're going recall And decision. models. see forward us is think about questions. you Could there some GAAP, about it during

Yes.

be stock-based bad with that to taken pandemic year going merit those one-year moved some increases So promotional we We turned initially around had to how not just a to last vest. knowing and discontinued action be. the XXX(k) was

So there. there's of lot a parts moving in

to promotional then the into accruals you bonuses cash the the because vesting and when moved moved those That an had May of So also increases, of period merit comp. way items on from also impact XXXX. for stock timing all had increases

and out forward, and back a going because cash shifted of timing keep bonuses Merit, to contemplate periods. and And those accruals going as the equity all XXX(k), forward. expense of to are into we XXXX. for it currently just items the of bit XXXX XXXX So vesting base the promotional,

in or rate stated kind comments, So bit item the non-GAAP forward. a of then that million quarter. GAAP as a run comp have stock we would buyback we another course, going to $XX the of And of in did reconciling heightened of also prepared

-- three with is at stocked. QX, bonus undervalued. this think point we've about being QX still years the we've I the that buybacks four stock purchased And of I think between QX, to right think years worth I now done it's believe or the comparable we

certainly still quarters. the are in play buybacks coming I for us So think in

you. Thank

of Our next question Kirk Please with your ISI. the Evercore with Materne proceed question. from comes line

guys a I into how M&A wondering around you focus on comments XX solid And M&A. five seems Thanks the are has core to about maybe to right around like quarter. expand But from process on very assume could vendor picked and time you of But if hearing just that's six just if shake. just thought ago maybe finding bit. much Mike the also wanting given clients little little really a of terms you process more years Rule one in or not. your was and It you're say versus little up are I of about this you at thought of on type your feeling are sort was of your that deals because look approaching a that you that Hi. balance differently around a business. bit just plays kind I years hand consolidation curious the growth congrats between have good bit what margin?

Yes, sure.

I'll on of part So Rule the second XX. answer first

down Rule have help XX down journey. So of that slow the down journey our on of path goal from acquisitions perspective an M&A not moving and us to that of us

out. those in we'll when mind we're So keep that things modeling

of, it. So one that's, of part sort

most that. cash of year-to-date Kevin decade to moved there. see long solution. the markets $XXX executives of being Tony's have time. of our out is do go senior of and role. million. he's opportunities opportunity a one and flow like has point planning and more in for given part a so our other on lot Kevin think integrated in position There's half we and of about just lot has We We million forward. The We're there $XXX moved run been cash the a a now good flow sheet company he's $XXX lots with about strategic that business into million a Mooney, full opportunities. or many so over time preferred our there's M&A and and balance

focused which cross-sell products integrating simplifies from And gives vertical the strategy for good the standpoint, so that we our from at upside into on adding really look opportunity IT that platforms customers our capabilities well. fit is markets and those companies we're also a important of as us environments but

of a because year different really structure none of recall We year business just last given quarter very, changed. fourth we in this the And from so company. made also strategies the standpoint. those pandemic a the changes took in are and cash very with a last recapitalized So pause or we position also flow the we have

group as deal new we bank a we capacity with that well have so that And did. lot of

think and a that I So capacity flow we're in standpoint. from really between an standpoint good deal M&A and in spot the a cash opportunities market, from new

to something question of comments and donors just you have on pricing the and sort model you're customers helpful, one, unique your about – that Super of, adding don't And commentary, it's sort the price fixed have a more mentioned maybe separate now is Mike. tons makes -- growth As has basis. been some always transactional -- the necessarily on change, meaning any, of which that a of of it things that not issue is that way? sense. Is back of, there comp offset kind come or when sort front

So huge latter, or I'm clarify material? change the just that. trying but to want understand guessing I if only to a just it's that's

Yes. what the because breaking was It you you, little question changes to there. hear said I but think up pricing kind was if about. what hard you were of, got But I

those have on We a is catch-up done increased just focused that areas. market And would in a a were a of couple models competition and we categorize the really where hadn't areas that other because of in the in of bit in and pricing changed we couple One years. areas two we there. and general I were behind

implemented of those. have we so And some

is which our rolling mentioned I model in with my proven area a prepared in the we've second as new out in platform And which The the JustGiving platform. we're UK remarks. JustGiving fact out globally well

customers small win-win well So passed we customers' and a and of model it accepted for of there decreases very, percentage been and our Blackbaud to there's our increases really good cost us have end for a last good on couple U.K. the owners. it's really the model revenue sort a because it's for where in a and It's very years. very

because but not the other in JustGiving on as like us. win-win other just We for markets are it's model US, with platforms that well testing model a

Customers drives good upside newer we catch some And these like our to it that continue and with there's opportunity revenue. models. think and it so we

with proceed from VanVliet comes of question Please line Matt BTIG. next your Our the question. with

these just and how back year stop half year of guess hybrid you you Does especially wanted offering giving sort to alluded get in work a Thanks Mike my at that question. better event, into more, and a next it do fully in-person to Hey by guys. of understand might for online opportunity more kind good the we participants. near the of very I of or some events engagement hybrid but early until events and back morning kind the into to future? a gap the you entire taking of the more of made, in last environments robust or platform give some with in-person both online around sort hopefully monetize still comment they

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to going all Some our of be are of some hybrid in-person in-person. them go will support But fully that. back in-virtual to platform

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stories how train to so them success other lot customers. sort examples of that with And we and a of do from

shift. were back hybrid stay go they And that now making to continue and to to events. so to going choose And in virtual go in-person we're successful either

are All and of our platforms been our those customers successful. available on have super

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our the virtual in-person and customers. of and platforms so is doable choice on having And events our

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how in that are of next curious what couple your for bookings that years area So have in been expectations the and vertical?

the corporate a investments fast. a rocking from successful industry we've for with us some growing engineering there got markets. the it. and outside new a experience fully for a company the in of moved services in increased leaders place. international hired from doing financial successful international has He's he's They're been very it's air. customers There's ago. adding bit in one moved of name engineering We've unit, the there. We closing It's quite household a new running been General success, customer head He's there Yes, business a who of capabilities great with We've over business. over job. Blackbaud They're our of our leaders our and couple there. logos. new sales got years. months leaders one We've that for YourCause while, very Manager several We

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So we're with in really happy there future. what's happening the and

we the doubled on that down well. we've and engineering we growth I is As adding lot engineers there. as And see because very mentioned, headcount, term a really for of long the

you. Thank

with your Mark of with final Our Benchmark question morning comes Please Schappel from the line this proceed Company. question.

where my you retention was out the with for just could quarter? rates question. you was if in respect growth I Tony, strategy. components Thank taking the retention fell to Hi. rates, wondering, one of your of that address

Yeah. In we'll maybe Mark slight XX% think decline the from to see XX%. a I just quarter,

But impact on in a some replacing like platform down an the had see the are we You'll didn't the that the world, other Q, believe. the The the Those the have New and we and few in I Zealand unit low products. -- dollar JustGiving that product Australia with in units. very of around that life, volume. of everydayhero shutting with most the places where everydayhero

I But dividends side as downtick, well likes. know, you the the other as improvements that's are we improving other next little gross unit expect years. those hopeful are net dollar efforts improve. think the to to the would the I got will starting We've the other in core really of direction, that retention on And think focus, quarter. get over I see to So retention on and several as of continue retention. products kind renewals the back big well. caused both a within all as holding and more bounce that We'll here a pay

on the model that company that press executive to And add release got out very a customers platform months I'll a on globally. been add. too. shut rolled growing He's down, great sent very, we and executive everydayhero, And function. Customer at that Singh, SAP running in that really Yeah, a small new JustGiving fast. been pricing we were our it's JustGiving Success is long-term couple we new out Chris have ago, We've of a that because And successful. the

So it we a that that rolled we right, small shut great had with But off out replacement a it. is a of really legacy for everydayhero customers on platform platform. JustGiving bunch older globally, which

globally So move that on positive really with model. was bringing platform a that that pricing new

your Okay. new or the were year were Great. the this is the these investments at of Thanks. the And planned to in set, then, Tony remarks, beginning addressed spend? budgets when investments prepared with respect

these largely would investments, them we're Mark timing to in the bit year budget. process on track things so That No on related there expected can getting on have be. hiring so But beginning were with a many cause headcount shift. the Yeah. of little -- all of we where planned been those of of the and at many the

budget I in than may the line. we think have the planned slower with onboarded, is in have little run but overall getting a we would folks budget largely

floor back Mr. session. question-and-answer I'll and Ladies for final Gianoni to, concludes you. our Thank gentlemen, this turn comments. any the

this just about, signs of tracking very And uniquely positioned we in I close recovery, lot We're to excited of half to elevate and seeing positive market. a as potential half the lot of with mentioned. as Operator. by be a to the year. you, really second I saying leader, I'm have I'll where our a first pleased we're Thank believe, status we're

just accelerate which that general first, bookings, have ahead, event-driven across margin revenue pandemic and that couple the Looking you post-pandemic. we with, are remind transactional I'll multiple levels, revenue growth recovery returning of a and areas,

our will price believe, times, against substantial We everyone. at few And capital and XX opportunities. continued the Second, about value. of framework, a third, well. execution Rule catch-up disciplined shareholder we're a opportunities talked as and looking M&A financial model few generate to deployment steady pricing actively as we Thanks that commitment the

today's Thank conference. concludes you. This

this disconnect participation. your your Thank lines may time. You you at for