Blackbaud (BLKB) 4 May 222022 Q1 Earnings call transcript

Good day and welcome to Blackbaud's Q1 2022 Earnings Call. Today's conference is being recorded. I'll now turn the conference over to Steve Hufford. Please go ahead, sir.

Good morning, everyone. on quarter us earnings joining for Blackbaud's XXXX first 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

on Consumer Investor Conference day. the June XXth, team website XXXX Annual to our The and Technology Proxy XXth attending Stockholders Global Global Conference, I'll materials our that on call Mike, of the quarter, the briefly Needham Communications Conference statement April May And our XXth Xth. Relations turn our XXth the and Media annual JPMorgan Xth and Stifel and the second on Conference posted meeting I Technology on Before Media XXth same June virtually. of XXth Sector were mentioned the during May over Baird were be and filed to Annual Meeting Insight and Annual Services will and Technology notice Cross

virtual We XXth May investor XXth. on hosted participating Raymond James in by be will meetings and also

available As we during I'll you'd ir@blackbaud.com, if a reminder, to the are you, the also to Mike. at call With connect like over turn that, quarter.

Thanks, everyone the us Steve. thank call you for today. and Welcome joining on

The midpoint approximately first significant XX for guidance Two quarter XXXX nearly to Rule of was we X% the organic and financial months constant at call a provided revenue XX% XX% on guidance year. that at our range, the approximately of of growth growth revenue start our strong in a to ago, currency. total acceleration

well quarter, total to outlook. growth see It's our driven to was in reoccurring XX.X% return QX. had contractual growth growth by largely the this our and reoccurring organic and our of guidance the we tracking in are this really full-year remain volumes and revenues. We first in our grew transactional great In continued confident revenue to revenue which in strength X.X%,

of just focusing financial significant progress a XX% opportunity plans over initially inclusive literacy corporate made promotes our outperformed recognized understanding month, our we which evolving quarter. awareness of we've here, began of and carried our last well acquisition metrics financial with and each we integration, the now corporate we YourCause since raises the addressable efforts with social products and internal key over in month, recently are acquisition and of in and year XX.X%, execution, sector. on and half spaces on on position during anticipated was our our team EVERFI, systems margin spend these In months of point we a underway achieved constant ESG on EBITDA in few as plans integration adjusted as leader advances Our key A together. XX that currency. rapidly the marketing This Rule synergy as preparedness. cross-selling responsibility Last the from

move the lessons and financial they most independence, people important this foundational it's financial in understand As critically basic fulfill need. toward EVERFI young helps

companies grant-making in types meaningful them a back communities As partner of get be education from program employees, volunteering to programs large more community impact to areas continue their technology-enabled to to invest across of in help and leading philanthropy. will to span we to drive these a social

for of of the single-digit acquisition goal revenue our year, recent remainder to high combined forward organic performance allowed the EVERFI growth achieving timeline company the to mid with long-term to Looking our XXXX. pull our us significantly into

and against well help to key of It Blackbaud with we're closely continue response remainder supporting full-year focus drivers funds to as growth the always solid the relief. humanitarian how and pacing execute our customers XXXX. are in the expectations our see role play global on have margin else, into achieve in also everyone environment. visibility Like customers been our to together need increases unique has to services the come for Ukraine conflict we their crisis times monitoring We as in millions macro them of is raise of our a our on inspiring many our for to missions. has customer to in

relief. a for (ph) operations, of Since XXth, have crisis. is leveraged be have that [paring] our the start the supporters have conflict critical not by to conflict that in difference in employees February Blackbaud area does based were this proud the organizations the of making real been on raise work engage to lives technology upended humanitarian Blackbaud funds While and

model basic supplies and over For people others partnering people Tick of and in for work of and Ukraine example, has related in of causes the we're million with and On evacuated funds continue Ukraine's donated raised Ministry providing cover critical with need provide to medical tons of than been X Home even faster. to in Health country. proactively with reaching and care need. and hard shipments those $XX Direct goal Bite teams aid giving process, fleeing vetting Ukraine for of refugees JustGiving through CARE the more X,XXX get is Relief platform, successfully to XXX accelerate more our families to our services individual Children's our complete insuring our for million is

as to in Additionally relief $XXX,XXX provide helping of more are with solution, effort funds great on Blackbaud's were those employees, and this Wells have making who YourCause YourCause able programs the Fortune grant the even relying resources program. than companies for donated example donations Ukraine three XXX to Ukraine. CSR in one to overarching portal customers affected Fargo and launch more verified we A response build help of of the to crisis their an relief a impact those list quickly through

with between donors role is long-term our giving online on their in product they Merchant mobile annual the grew to significantly optimize in which a integration solutions percent PayPal's to innovative to in Services, and active overall than and solution online year-over-year in those to PayPal as XXX delight we of Blackbaud checkout interfaces. user X% will post-pandemic charitable accounts Blackbaud honored I'm low-teens. option We are a to customers satisfying tailwind made mobile recovery to Blackbaud really markets done technology Through display in process a XX% first are up released continue allowing mobile U.S. to of about broader way February, the with donors more partner million process Blackbaud excited donations missions. innovation, the giving playing to device, or for a announced mindset. of consumer in good social will as organizations from diversify Venmo. have they report, Nearly the audience our the PayPal impact. donations processing giving with XXXX customers being developing donations. we we levels holding integration And Recently, new equip and key a end-to-end resilience a In to offer as giving steady our see pre-pandemic expand end organizations through digital the payment we continue our access experience be the enabling our customers pursue more its our customers receive industry-leading for the with Institute this

Services, projecting Intelligence, important Change We Team-Raiser, of that, we're including NXT, our run briefly campaigns through and a loyalty relationships developers hosted the enabling the sale ability making Raiser's product updates held Blackbaud this in best week which for our of designed pipeline in to by innovations Payment collaborate our few. share roadmaps. space, giving our frontier we corporate developer turnout a experts donation new event semi-annual be good charitable an a Blackbaud's build platform with a options all partnership Sky on to features technology just Luminate ever visiting a purchase, Data developers is of are provided after our and share and and update social new learning through is the also our sessions Financial and Online all their match good most mission-driven customer provide in month, in last with enhancements highest start peers. up with Roundup also programs. accessed experience with to product NXT, we that briefings, enthusiasts of together website, And Edge designed highlighted the just session at strategies, commerce cryptocurrency. an we like product and are driving We new corporate a already an executive program, can conference over JustGiving to that name differentiated option impact Edge our ecosystem And a point to year, offer and at summary with the customers, giving Change as Grantmaking, levels along practices, brings of building product to donations example

growth and significant agents. developer individual drive change to partners, ecosystem continue our consultants, of We customers, in consisting

press and product track Sudip at Product delight. accomplished executive drive Sudip Additionally, value leading accomplished as releases hired portfolios, companies product to creating technology welcoming and Datta Chief roles future and most while and such minded as look delivering as to Oracle to Broadcom. has executive team oversee recently and held portfolio. customers. outcome-driven innovation stellar engineering IBM global managing record large recently we Sudip leadership our in two business teams growth We we Officer a and with recently our leaders an issued is customer for

and leadership Both cyber organizations Security our Trust elements Truist, Chuck and and including and Security We Verizon. like in also of Chief technology Capital Chuck Program security all areas. respective gained to bring hired expertise their domain XX-years proven One of in recently Miller security. experience and has services oversee SunTrust, Chuck Sudip deep Information as Global Officer over

while energy XX%, corporate commute a to our carbon achieved in we look Blackbaud neutrality emissions, announced social environmental we and focusing Blackbaud headway to for for employee by by forward shift culture, initiatives. first ESG is its by been enabled on XX%, real XXXX, and that about this strategy, has thriving more and this we to responsibility towards cover and have like made for a using workforce energy accelerate XX%. run recently global I'd launching multi-pronged office space estate employees, sustainable us we've our some efficiently climate strategy emissions Since more sharing XXXX, our With our now goal on investing strategy footprint recent ESG on month. Next, reducing is future our remote projects to our We later timeline. a a reduced website focused to emissions on

labor has attractive As culture since mission-driven I DNA in been market. our very is and mentioned inception in our competitive it a before,

number continue our more incoming foster remote have entry-level we underrepresented where class historically proof connectedness focused to first just summer environment from diverse for from groups We inclusive recognition a engagement intern one come collegegrad.com hires, strategy. just a have with point our our intern in jumped A workforce being recent XX% for XX% and employee that top on of received employer. to and

to role strong summary, built, social our space advances play I'm against continue today's the In executing proud in significant driving we're culture and a corporate the to of in have in plan. well we've environment. We good cultivate

XX% of The our roughly beyond. a improvement have guidance on total of to integrate year-over-year the revenue nearly cost and which XX, EVERFI recent at significant for our of midpoint XX%, is of XXXX remainder constant approximately quickly growth visibility revenue EVERFI, and basis financial in the currency. into acceleration Moving point organic to of XXX ranges year for Rule inclusive acquisition approximately X% this and solid of

drive significant as few next that, the to call revenue XXXX XX over We Rule we of believe expect sustainable we mid-term the we high and over for Rule our improvement expansion growth With in turn in meaningful employees, similar value balancing of Tony. margin single-digit shareholders. few a mid our goal the organic and can XX years, the on years. I'll in By XX of customers, to the target roughly next

for Before up we open Tony? it Q&A.

I'll several the our in expected the materials first cover before total quarters growth year to for full-year results the grew year press XXXX as yesterday's recurring to us investor We Organic contractual Mike. continued versus quarter. revenue guidance. growth review start Thanks, the revenue our of started both and everyone. solid to refer revenue Good in achieve the for and representing for X.X%, QX full in our quarter. outlook our XX% a Today, the the with morning, release for full-year revenue and $XXX performance. transactional revenue line which total first opening and row prior of our questions. XXXX We year that website quarter is up on of the for financial details to solid a posted has recurring Please the million, posted revenue track and

exceeded we in the own point our fact, largely growth drag revenue elevated quarter. to other XXX the In One our time and roughly transactional on services plans was basis quarter revenue volume. due total for

assumed full-year we guiding growth. contributing the we for million revenue XXXX in on minimal had what services approximately total $XX reminder, with a in line a one-time are to guidance have our As was total quarter. in impact EVERFI's revenue

to Moving earnings.

$X.XX. earnings gross of adjusted Our share of of XX.X%. first We diluted margin and generated million, margin EBITDA quarter representing per an adjusted XX.X% $XX EBITDA was

discussed reflects that planned As we year occur market issued areas to expected incremental into when and like security, XXXX, as to our in and spend was February, profitability start the our addition we guidance of XXXX. the EVERFI go originally but in innovation, to and pushed in

and we our there the our internal in to Our that continue and progress sheet. high and pacing we again, have financial guidance. plan material progress as this reiterate to meaningful Mike plan we're this against front-end cash our considerable our margin call the ability outperformed upside for to balance To statement is to year. plans in a said for forward. and earlier, year work full-year in well QX we're likely of flow related confidence revenue to spend we achieve pursue both on expansion profitability margin loaded going we And That continues through me improvement Overall, as believe EVERFI synergies. cost we integration and inclusive well positioned our brings what

million with I'll to payroll equity-based on now have to typically share quarter a compensation cash free X%. margin flow adjusted quarter previous you at the on an a cash to impact representing to remind $XX exceeded cash lesser $XXX debt free switch quarter full-year plan $X rapidly though when be ratio our capacity. remain cash deleveraging historically, is well $XXX we spend with an primarily additional was our taxes intently flow of X.X approximately tracking in first of more borrower throughout free Our to a to in in flow our been the ended our million for of where the focused decrease are of net times. adjusted quarter, net first end inclusive extent, our stood incremental remainder profitability, settlements. the XXXX the We QX, year-on-year expectations. consistent the acquisitions. million, of net debt of We we with EBITDA of we million plans At borrowing and Similar limited

opportunities. evaluating in active future remain also acquisition We

just the to earnings financial reiterating on our our two remainder ago QX of are issued months we full-year call. Turning XXXX, guidance

assumptions. underway and for of our our $X.XXX From our as as in substantial to the margin acquisition drive products minimal our Also, a our positioned debt basis. pretax associated our we including expansion million $XX a well X% in annual for us as our on achieve constant pacing differences, revenue quarter well more first profitability rate XX% in has perspective, to our at beyond be inclusive expectations services versus roughly hold the estimate given we go-to-market adjusted the Combining one-time a full-year infrastructure, decision to to margin to should effective relative anticipate growth permanent to accelerated additional revenue the of from From full-year tax EVERFI. the for at of income drag a on overperformance interest we XXX our appropriate basis tax We're tax growth with estimated calling made we're We the EBITDA our billion we've 'XX. our roughly efforts our discrete expectations and XX% revenue our $XX of potential guidance, organic revenue track We range well and underlying scalability improvement and similar and plan midpoint at believe to currency. forecasted are point perspective, year, our method in a revenue incremental XX% we're recurring our organic anticipate remain year-on-year are to our unchanged, effective other drive organic utilize is currency, approximately in efficiencies full-year XX.X%. XX, full-year. method million on non-GAAP which We the distort of a profitability and this plan the at with constant rate. forecasted will growth, is Rule to targeting anticipating expense

years. for and target XX% on and our Rule we in Rule XX next of EVERFI, respectively, targets that of few a Given 'XX the to our as goal proxy our see mid-term our XX% raised our you'll performance XX performance recent 'XX in roughly incentive acquisition of we've XX%, and

of adjusted flow million that inclusive free adjusted the flow the into in $XXX be flow, of in for spend of range $XXX pushed half cash our expecting cash year. cash further We in free to our full-year. XXXX of the first anticipate some we're this to on Moving to million the growth

$XX million. combined $XX to for estimate million is expenditures Our capital

reminder, exceeded be our the costs net for $X.X limits million. relating related the guidance spent, incident previously adjusted ongoing We to first of a As incident. insurance disclosed of quarter our recorded coverage cash litigation of flow to security free net our the and of excludes cash insurance insurance in security of

million for were roughly related security quarter of In the XXXX. We flows payments. to of a the continuation strong a incident. for outlay related ongoing $XX due fees to cash million to security the However, the timing legal cash $XX insurance to XXXX net still anticipate solid summary, incident net $XXX,XXX, the was a very full-year of first

We And are company. Rule plan that will next to growth margin executing well XX for adjusted our against focus a and through approach meaningful the with of earnings of ‘XX on we years. expect our balanced a cash generate drive significant free and growth a accelerated expansion, as several over initiatives achieving flow

our deployment that remain questions. on the way that, We and line for strategy I'd our to capital to maximizes value your continue like allocating up open execute to capital a for in With committed shareholders.

now our the you. of Stifel. Parker Please proceed Lane with line [Operator first will Thank We from with question Instructions] question. take your

the efforts. Yes. together, beyond? that to YourCause hearing question. the customer YourCause the XXXX hear Hi, to co-marketing or recently around EVERFI feedback good base those And and the initial course from curious of EVERFI mentioned began you sort morning. you for potential over their taking Thanks anything existing you're on Mike, of

the started well. same a opportunity do lot quarter Yes. Thanks, We overlap is so target Parker. as don't the to in the same It's customer. customers, in there as have that planned. a buyer, we cross-sell of nice existing Yes, first

that ESG social early in us, But footprint corporate responsibility. a it’s So focused are with on we've for EVERFI, corporate -- that space got and bigger on it's of buyers much days that.

synergy with So was opportunity. the that we're about case super go-to-market the part It acquisition. excited of

Yes. Got it.

you these actually achieve today? the then Blackbaud sense of and international those a support Merchant support integration then availability between channels Services can Okay, many Giving of And more like for products Blackbaud of those will online channels and channels? how Thanks. and us and some Venmo, sort when you PayPal give

channels today. of our choice support It's customer product those about that lot partnership. all Yes,

others, Venmo, want for So those while the in Blackbaud and products those Services are all hearing out we've marketplace been Merchant customers choices. that a PayPal,

new So we us it's offer for for customers of a and opening given platforms. great made think that that popularity of investment. the those opportunities We to

super announce a and work that while partnership quarter. finally we're be about we're And out. excited in able happy So the has that going for rolling to that been first on

it. Appreciate feedback. again. the Got Thanks

Yes.

You're welcome.

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

you of pipeline. see the on side, much, what's Yes, good sort right thanks -- working about some business in contractual talk organic that takes can Mike, and now the on very puts of you some the and morning. of the what just

front? kind interested you're on what Just seeing of that in

and post-pandemic, Yes, of, in well buying a behavior a the to contractual pretty -- side even picked markets markets organic opportunities open we're cultural behavior arts solid of pipeline business And vertical the portfolio contractual is the so business JustGiving non-profit and transaction our well. fully across add these of at a business. lot our sides the kind as the point days, like both like from platforms where K-XX buying being up transactional the helping lot on looks the looks in organic and has I'll to and that

and of well, so, healthy we're time good in our really big a the see market, lot come pipeline CAC we've opportunities see build and as to a that improving we XX-months fruition. seeing spent or which So productivity we last

year for pretty happy as XXXX guidance pretty we guidance we're well, we're about all the first our feel quarter's good the that’s around. So the rest keeping results the of opportunity why and intact, about

buying thought around an give you of process that? you're impact Thanks. whether us opportunity some some of coming Thanks, right maybe see that's in of helpful what sense some your cross How on with decisions of you or now? some your terms impacting right obviously not pandemic. Could discussions of all seeing macro just at then lot out now the if do or a of is counter that and things inflation, cetera currents having that customers follow-up, inflation be just these balancing and the would of one customers et

initiatives we lot few Kirk, the of like the price seen of marketplace payments Yes, increases, year, the out see some a opportunities new that conversation. last we've Obviously, that we customers, and multiple to the big that actually or catch models folks folks and that pricing are impacting buying rollout work well the over A we pricing of favorable our we driving are based haven't as payments decisions. laid that our in how other our it's initiatives up are world and changing. on with either models to those about talked for us in a market don't see platforms, anything

And so top bottom we have and both pricing line. the still same which drive opportunities, our

se side the we on healthy activity, impact per giving lot last haven't based our across do drives markets. in buying inflation see a market seen year, transactions So, behavior our so We that the of super growing cultural grew JustGiving we're of in the arts and and markets I've transaction well. the our our as as on and it like just business we're and U.S. well platform seeing that quite non-profit in mentioned seeing

Thanks, Mike. it. Appreciate

bet. you Yes,

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

for morning, taking Thanks Good questions. gentlemen. the

it's the transaction So, situation, odds curious what sustainable big how to how is? I'm a but impact but think in, curious just of, that are guys volumes you events quarter. hear realize back, has I'm are the coming big up I'm Mike, kind we did pick the see volumes transaction I -- this first and off, you on help had an that of Ukraine doing impact to great

going I'd on. -- always Yes, say that Brian, we always there's something

from some If in Ukraine, area. our pickup I and school and see it's the in over the Ukraine the food opening you closures, bank but giving go years material the U.S. that and business, we impact two performing public arts in standpoint COVID. of size revenue improvement see given saw drives We as selling a the last could centers fundraising because back things. again in the you of us say wouldn't see what and just years in growth that pickup for in transactional tickets just the We of that fundraising museums a

natural are time, just the something guess, business things size given a unfortunately the and I and world our our revenue transaction at wouldn't not those but I there's level. always material going us you So for if go a level over back material on the then was business, in fortunately being that so at disaster, per Blackbaud It pickup, se. look total it at really as the of

a CSR Mike, that look you and than if have other little some half at at Understood. that's of there higher of now the level more it's the you penetration TAM question, interesting have know, but maybe kind you about sub-X% of ESG, we slides, investment versus kind are higher. perspective end you a your and required do markets in sort products think versus of a what in your How from today? the there, go-to-market philosophy what product looking

cover quite right, financial with just well. well other so EVERFI in that they corporations Yes, and and services space big quite ad

their a sports If our well-known see institutions you that customers. you very list website, can and of go on companies

IT of where And XXXX importance with and board. ESG their at is ESG we're adding big the that at global we interesting for you or the ad big institutions the a selling there there's and spend started in so committees in growing a of So opportunity, spend. a see was big the governance Board opportunity a public a level, the the oversight there, us lot that X,XXX YourCause companies to big adding acquisition it’s EVERFI

stewards war to their of reasons employees brand You good and reason some of the drive for and driving it's are and of ability are that see give talent be improve are initiatives requiring their companies reasons to is of ESG company's lots a another CEOs for kind the back, giving lot back. driving that

Board is the we and to to happen there massive that have Management allow and at meet ESG so ESG their platforms, initiatives prospective our SaaS and a products customers push level. And customers around

do more So to for there. big us opportunity

they combined You is the experience lot EVERFI an bring bring know, market, R&D, lot at fits executive more capabilities, us, there space, looking M&A of lot what of relationships team the for be organic of more a an serve. might right the really space, markets that YourCause, in in it's we do we're that we space enterprise there our great exciting in there kind knowledge, opportunity just of well with it of that in from standpoint, lot in with and culture

about So for but right, that so for really it days us drive doubled early it's EVERFI we're runway excited our been to a think TAM, and I quarter, super a opportunity. Blackbaud long that,

Good to hear. Thanks, Mike.

Yes.

welcome. You're

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

Hey, Mike. questions Hey, Tony. Thanks taking here. the for

Sure, sounds a first sounds me, growth to of pretty organic very, be XX% up. economy nice like the from X%. metrics performance nice about very question. like here appears growth, it opening It couple a Just total in

had guys some good really comments that. You to

on a little the seeing the maybe mean why raise on an You there so perspective there? growth that's I that internal of from the end bit you're guide something full-year market outperformed is a not here, or guide. you holding kind question a back plan, metrics

gave $XX Hi Koji, range as the year side. of talk this total we you million end to one morning. guidance and on is Tony. know, just revenue this Good I a quarter the No, to think it's this year you on

of 'XX, to kind carry our board So 'XX from really yet, numbers. and feel on good the across beat strength into the it's early had we we to

on confidence So more it start that obviously us does to give year the strong.

the the really really have business. We've really most yet all impact that other will over on that thing of positive that on business. is me performance Blackbaud seem seen the that not was The EVERFI core impressive to

recurring accretive our actually really revenue on EVERFI the is driven up slightly of starts business. X% revenue were business, EVERFI they X.X% bit recurring the start growth, to of positive the to was dilutive all that one-time, but to impact just by So organic ramp growth which be was that long-term we for should just core really when to on as see the talking Mike Blackbaud as the a

that's the it, of are Got kind for taking about your Thanks M&A M&A it. And on. the for on question market Thanks kind my front, my here, of, got given guys. current you just follow-up thinking strategy, environment that. going guys question how

the going we're in Koji. I still active very making understand we're what's related sure Yes, to mean, we on active marketplace.

are that we serve. natural the buyer a acquisitions of our Given we in history markets

ESG his good more the So a an new EVERFI in. build in a opportunity have we I it's in deck, whole we're part a opens at capacity, or deleveraging, just, super X.X% space doing. job Tony years world and of you last our M&A. strategy. the we got our organic doing integration of to an M&A presentation of delever important corporation's remain EBITA our standpoint, prepared delever. We've in active historically, space. in whether eight think, in mentioned at the It look coming we from which We've and if lot it's a now, with that R&D remarks, you will done We're in we're lot debt

remain quarter in We've all on our big the really business around market a around bigger will We've the the of a we active, But us. what of to across had So, part forward driving which a for do. M&A is really the got there. of we we tenant down a reach so also into but corporate remains EVERFI of good we're core functions, hedged will integrating the said remain on gate, start-ups started the going out integration. what's verticals big companies that, we smaller and having

taking my thanks guys, appreciate Great color. for it. questions, Thanks,

Thanks Koji.

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

Thanks, Great. Appreciate it. morning guys. good

to to the think bit little was year on bit. them, a business about last one you Just a start, in a growth talked it organic of couple guys for you I that question, you some a to Kirk's and dive of had earlier, alluded the I little wanted in in of pricing one drivers response Mike, but to

in the you US that I guys the well. to showing, you of as drivers of which some How and follow-up great bring pricing a there Tony. think the would organic board prices any were we're off based year? start you it are seeing those European to other I appreciated. it be other to talked for and And it guys talk to and that the quick rolling a color Can contribution are is pricing initiatives there is uplift the some have renewal about about of or then this across going is be the upon

categories change or well. couple to all executing up tell laid take we we get losing at quite implemented in the change a too, And we years model in that years implementing we behind are early are model got a And of JustGiving customers and for And it's on model those basis, in long we what's level, that customers we're that bit a the those in I across model of done be some year, and is which to deck. and adoption transaction platform into effect don't multiple beneficial laid are the that, so to of happy the ago realizing couple implementing on changes, going over board, it's out for and catching beneficial a lastly, changes, as Rob win-win you some bit going initiatives are per-item going a a from us that it's and all the well, to the of those. some initiatives changes, so for up they marketplace that a so the it not we've catch call the model price out laid away. right across competition tested we're but either on of stuff of this it's full-year are for to very ones out, we're implemented Hey, and our our could them as whole investor are but change. where and bringing it, little pricing out we're of going We platforms, our U.S.; days, time executing proven some some of platform to get are we it's price little in are cases in these customers and break and different too. more a time But got some marketplace, and most it's

curious from I'd Thanks, cloud-related customers your curious put where some period, had Okay, some off you seeing great, are your industries investing we're then, you're And numbers commentary that to rapid that any your both seeing mix? that. that hearing do of gross is and just guys improving, more pick in through seems and operating heavily Thanks, that you margin of that what and on impact targets And obviously you start Tony. or more certainly -- Colo for off be One non-profit means not to and whether then else move anything what it that means you, what the just Mike. their year? were some that could see Tony. we And for specifically customer that's just up helpful, work during plans, pandemic the relative conversations? so for cloud

Thanks, Yes. Rob.

space for continue focus you on a side obviously of in investment day will customers. including see cyber, We a the corporate the lot is non-profit then our into much big for of so corporate with obviously news big every cloud, are our a all it the be seeing been focus, area TAM has to and and moving

a big us So, I Rob. think that's certainly long-term for driver

that's that are said fronts. as of year data made data customers we a have our process, shutting move lot moves large, efforts the will in customers, which got seeing some out the start drag, about As start a security-related the customer those think a we Colo and the in actually we the QX to gross centers and side our public we profit benefits are gross be the a lot on our down early of this lots of The those, that to base be with for of Colo very of down but of of year that for some margins pleased been big the with I starting over impact Colo this and a a spoken products duplicative cloud, of of to benefits, we've multi-year shutting our may we've will margins that's will be drag to on those first shift all few costs. the year data call, a and but some material centers lot to years our well us to continue centers of different been last driver, is all will stuff the continue as positive

XXX impact as -- start positive line should So, more on will imagine better will sight kind we're point, will to finally those, of releases is Rule the over this XX% I XX, over drivers of seeing rolling acceleration seeing the those we for we to last those plan. get point, think on 'XX, which earnings we visible. become that as gross that to our more the range we're last of that 'XX, help performed start profits basis us part into over 'XX those that And that But nice we on year kind that's upcoming time year, to targeting to you of points which we're fully finally discuss frames. I get impact of year, some

So margin well of very to to up then and can mid-term the target we that of a and if not XX% distant sets -- contributions very the with of of initiatives obviously us of XX Rule us positive some XX that continue productivity get the of to too pricing Rule Colo of should XX to to get in future. and sales and EVERFI and that allow other the the or expect

we we're this So, feel about headed at point. where really positive

Mike. lot. Thanks, color. Great. a Appreciate all that Tony. Thanks

welcome. You're

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

the of and smaller thanks that these seeing, guys, just the lot also expecting just -- bit going question. and guess guess the the morning events component, through how picked what's set what rest I for the events to run kind interim, through of in Good out I return platform volume taking they've of the in on and little a events Yes. thesis around to organizations my a nice more you're platform skill sort dig of transactional on after year both more to a virtual But the ongoing the first I the up wanted sort you're in-person see year? start virtual there. of supporting not in person the to pandemic. of will wanted that events the of that or maybe total play on on

online because they reach. the walks improves virtual that events, some and you're are will are pick learned the world and and a And the about we're seeing events it the in -- won't lot only. events, still switch rides. But marathons their are that customers Matt, events our in-person runs think but hybrid major healthy, seeing a virtual come are of right in [indiscernible] Yes, to in-person growing it's It’s the just stuff live that's back. our world, have them The and Mike. to a binary around going customers back we do mix, I a in-person fact up all

it's to performing think in the are some be a well. going lot virtual’s ones I healthy so centers, and continue drive events for as in-person And for Blackbaud come and back, arts the institutions of schools like and while back it's a mix who the our in-person will coming full time customers that of

our their for healthy it's for us. customers for ability drive and so to And revenue

they're an also I'll just utilizing that it's that, conjunction And just some I've not at in in-person, least with add virtual is is Tony, seen Matt this that participated what but I an on in-person. in

XXX a we folks who room. I portion just not in just participate, recent to ball, So everybody, Charleston. to to one went auction virtually the The up one, wanted had was opened in here the

you're jumped a for those those, seeing last And which up to year drive percentages then those significantly, as more mind see going I overall So hold. giving helps in also combination percentage keep that events. we're just think giving of online a

that less online we're giving So XX% up or where in XX% range, now those low-teens. seen than X% historically we've in

see that And positive. so hold continuing to trend we're is which well, as

Tony about cost how base All of built think into look forward and YourCause, of you it model sell only pull cross especially around right, out those plan the expected how going you pretty apparent holistically kind total there the then combine then, if sort that that and costs plan pick a look is and of costs of tackling accelerate seeing possibility might very topline, should that some with start not the we the or success but that ’XX is integration of we not in for 'XX? only more you as sort to but blocking, helpful. sort the of impact as the up, EVERFI, at the And in

Yes, Matt.

get think some items EVERFI to I all is be end it and it's and expect we QX some integrated especially good towards in cost largely synergies rate, in you as question, pretty rate and efforts, I and offset for But 'XX. this in weighted than would the to below increased we 'XX Blackbaud investment heightened would business as be gross that joint of and saw find opportunity, and for go-to-market those good opportunities as so the year. margin a line EVERFI, more probably worthwhile we run are good that expect R&D see at the run rates I with opportunities point planned sales return. for we could the back a But built define new run continue see would later you between year do 'XX, have core comments. R&D the year, as good the but rate think sales marketing QX and into for of and that and business Mike the run in I G&A prepared in go-to-market I would things 'XX and increases our as R&D and think to spoke spoke we those potentially areas, in marketing

helpful. very right, All Thank you.

for have the reached Gianoni we And the remarks. to question-and-answer Mike turn session. over the end closing I'll of call back now

years, year. internal well on executing the shareholders. and We flow the high I'll we over was quarter currency. a margin our customers, free Thank X% for can the few balancing employees recent We're for growth revenue plan single-digit roughly and approximately year-over-year XX, basis midpoint significant you, to in mid revenue and on revenue profitability, financial total of growth, significant and inclusive beyond. expansion acquisition to believe plans we remain growth cash integrate remainder XXX value which against meaningful of our operator. strong XX%, The a quarter. outlook of and with at to of close by constant the into organic our of drive next sustainable a quickly improvement adjusted our Rule and during visibility acceleration the a reiterating first of approximately XXXX start for By point EVERFI, calls year ranges guidance this our our growth organic XX% full-year solid Thanks everyone. confident moving to EVERFI outperformed in nearly is

at and today's this this time. for you conference concludes disconnect And may your Thank participation. your you lines