Blackbaud (BLKB) 14 Feb 232022 Q4 Earnings call transcript

Good day, and welcome to Blackbaud's First -- Fourth Quarter and Full Year 2022 Earnings Conference Call. Today's conference is being recorded. I'll now turn the call over to Steve Hufford. Please go ahead, sir.

Good morning, everyone. us Call. Fourth joining Year and for Earnings XXXX you on Quarter Blackbaud's Full Thank

on call Blackbaud's me make up CEO; and Joining the the Mike prepared and President Gianoni, CFO. your we and comments, Blackbaud's line and Tony will Tony for Boor, and Executive then President today Vice will are open Mike questions.

Please today cause refer to risks from that could actual Please Form to other subject those our XX-K note those and SEC more to statements projected. that most recent filings contain forward-looking our information materially results comments risks. differ and uncertainties on for

substitution available refer on We believe detailed measures turn on and to call. are is over A Relations for a internally or measures call more how considered non-GAAP in Please that reconciliation non-GAAP this we supplemental as press measures. financial With from non-GAAP isolation note be that, last website. combination will Mike. and a measure not our GAAP otherwise measures Investor the only to GAAP issued and representative presentation in Unless our should the of both we in available financial you, more of GAAP business. night, that of we a is our schedule results I'll non-GAAP release specified,

you taken several another IR I last Thank Congratulations, has Thank is transitioning you, Steve and to like would the take his role for today. internal us the program Steve. leading mention over career in company. a further call that advance Good morning, moment Blackbaud the everyone. joining Thank opportunity you to our Steve. on years. at brief to to for an

take Mooney, of team the and Executive program. over our and will leadership and Durkee Corporate Moving his Strategy Jeff our of Relations President Klein, Kevin Investor forward, of Alex Development Vice

to improve X steps will took company today year focus on the numerous performance. start key we review throughout a I'll of the remarks areas: My with

Next, of I'll year versus fourth brief to over before overview detail. And XXXX and with Tony then a XXXX end call results outlook quarter guidance. to the additional provide I'll give our full our turning

was company, better efficiently progress in and substantial it company. and steps the a of XXXX flow position of Rule for drive We proactively manage to weakened and effectively took cash year a XX. improvement on profitability, economy our

pricing X- On X-year our our approach. fees retention and embedded remaining by contract renewal establishing We and dedicated prices our customer a processes transaction in warranted, on the set where revenue we on contract and term renewals. improved front, increased team based subscription and lengths institutionalized escalators We success. focused

fourth and In expense, X-figure enterprise business. several the in is active and a We of signed side including team. XXXX reduction the people closed We managed our existing largest EVERFI cost work were X- the largest new open to also requisitions replace costs. selectively on the customers company's which late and deal the contracts, had ARR tightly year. We last quarter, attrition, by force we closed

of end fewer ended year had the than we result, a with XXXX. we As at the employees

closing costs. We AWS and rate Microsoft renegotiated simultaneously maintained as well run of our also and some rent lower reduced largest as Azure contracts travel last Further, our footprint as such expense data vendor on our by centers year. we X

took our in examine company. out a business critical short, lot the with In cost a of of driver every which we cost eye,

XX. generate every and focus a at We the Rule strong substantial to of the level drive have improvement value on company internal of significant

EBITDA Adjusted on at grew X% organic point quarter, was drag an grew sector. constant roughly revenue results. financial of year-over-year In XX%. Onetime our a with revenue our to had strong fourth X EBITDA margin overall December turn the the total and of constant our currency. We let's revenue saw we approximately fourth XX%, in growth XX% improvement of quarter currency with at bookings quarter. organic growth and adjusted social Now performance in

together, for Taken Rule currency was XX% of XX constant approximately quarter. the in

performance we last our year. $X,XXX full gave history, XX% and for year-over-year. ], exceeded or financial QX the in [ a in guidance time call revenues the increase our ranges $X met on our We milestone first significant year, the billion reaching surpassed mark million For XXXX a achieved our

revenue X% constant at Organic currency. grew

full our the transactional year of full at over year. Rule contributor to range growth and year XX% XX% currency constant towards XX our a margin came exceeded constant top continue meaningful at and increased currency terms, contract at EBITDA the renewals as XXXX. improve we of guidance Adjusted in by points to year throughout the end for business Our for shifted the multiyear was and X at

The year our full schedule. strong range of generated flow cash the free of business guidance which enable million, exceeded high adjusted $XXX debt repayments of end ahead and

member to the board and on skills Most year, X Yogesh corporate have of formalizing and a by Board business digital transformation been improvements December that have. operations. Chou diverse in Hollenbeck our global our in During Tim our I the cybersecurity, replacing Nelson more pleased In independent who appointed. provides newly directors be made retired. X This Gupta over new year, of only governance appreciative little perspectives, we we tenure. joined but our also Board added Rupal and Directors enterprise and has Joyce recently, also of policy not couldn't important a software,

market, There is is total million in X.X EVERFI reminding end serve employment greatly our And we you that $XXX sector were orders. U.S. annual footprint nonprofits Turning our large I'll the the billion. by this with and third are we to registered in expanded markets [ largest ] And space clear and the sustainable the over resilient, start that economic XXXX. giving U.S. it's choppy it's are the acquisition. to nonprofit corporate market alone,

downward the of past and total about company. for in than GDP driving and In fact, comprised That years XX said, X% modestly in of [ the recessions. on improving laser-focused only the charitable has United X fluctuated efficiencies X performance we in ] remain giving more operating States has

positions in other teams in in strong we'll QX, continue cost revenue we to less pipeline these areas the areas, we with that, work sales perspective, our Most a And following overhead hire combined taking We in important notifications with reductions lightly effectively to We're are of did XXXX. From action of to reducing it at our our efficiently took force expect affects relative as our XXXX. business we necessary in decision into while eliminating slowdown the in QX not our are a We total starting planned further we reduction the valued a we approximately steps actions are in since to that original we be when or company, the head experienced sales. and of beginning reduce fully a achieve to the rebalance some attrition that customer-facing this We're reduced know headcount and we areas. see to note plan. in voluntary workforce, quarter starting XX% to by coverage not to staffed. employees. U.S. come to it's as are workforce. the will have and fourth today leading With expectations, are more attrition, the as

while early shift to Our improve slightly on see expect still to by we renewed customer are operating the year. quarter successive throughout terms. initiatives, continued the And contracts contract with teams retention as success improving well, the rates multiyear it's pricing and expect renewals performance and stable to days accompanied are we each

profit. benefit to a revenue have double these much Rule initiatives Additionally, pricing the of XX through with falling to of upside

profitability. Turning to

We have a this the high driving level step into throughout The margin and are efficiencies scale taken and early business. actions expansion in visibility XXXX. we've in XXXX year

and several for years. substantial well-positioned over sustainable is improvement next company margin Our the

full At While detail, provide of guidance organic cover year. year ranges, will midpoint the X%, currency anticipate with we Tony in financial revenue of XXXX growth financial constant guidance highlights. I'll last the the at consistent our more

which constant consistent optimizing expand currency last focus EBITDA increase expect And towards XX% X-point with to attaining march XX% to we we Rule XXXX. business, XX%. expect from of year is versus We of adjusted as XX%, at XX this our a on the year margin

$XXX Further, flow we of expect adjusted free million. cash

X.Xx. strategy gain XXXX financial in the we Collectively, improve performance to successive quarter take the our more leverage incident expect deleveraging less We're initiatives related cost at each ended on meaningful in targeting with allocation significantly XXXX. for where capital to Our pricing cost call as security a and with as second we visibility to hold. improvement Xx, we starting near-term in the quarter ratio approximately continues of

place in significant a in throughout achieve journey. our value. had XXXX. we execution improvements the XXXX our enhanced Rule as strong continued the shareholder in and XX summary, on across deliver We're confident focused performance substantial We're in with year we outlook progress plans along business of acceleration In to

Tony. that, With I'll to the turn call over

and Today, morning, website refer Please results details everyone. of year year materials for to investor QX posted press our Mike. financial line up full Thanks, full I'll guidance quarter of XXXX before the fourth well yesterday's for and our and our XXXX full questions. as Good XXXX outlook our release as and the to for for performance. cover opening the the

focused environment, weakening related change. COVID. pandemic. economy XXXX strong exited to global minimal remained and started the changing the Conversely, we flow. efficiency Despite lingering the We year a significant overhang we or year adjusted strong we free impacts our year a a across from call Against on with was revenue, full of met this and with gave we EBITDA intently adjusted year economy revenue, exceeded backdrop, on gains execution profitability flow. and ranges for and cash margin our this cash and guidance QX

contractual EBITDA we of of In and million [ $XXX $XXX of EBITDA revenue of reported represented XX.X%. margin XX Revenue $XX the and ] constant was impacts, adjusted total of quarter, the growth was of Rule largely by ], million exchange organic [ X.X%. million, in negative of million Growth adjusted fourth XX.X% at for $X currency growth foreign when recurring of quarter revenue. driven X.X% organic adjusted

roughly rates the quarter adjusted drag revenue, quarter of addition We earlier with services some actions XX.X%. of quarter and XX.X%. offset million saw from of fourth was XX% in improvements strong in in and services other of in This onetime XX actions continue point the to bookings EBITDA the operational in in we Adjusted of EBITDA see taken at the constant quarter. taken partially from experienced Rule and was beginning the to renewal currency at softness U.S. the the by early margin in X $XX benefits grew in We an year. some payment

balance and sheet. cash our to Turning

cash by in shift a QX. our cash the fourth driven shifting Our free into flow was the collections payments QX million tax quarter, largely cash timing QX and into of from adjusted $X in QX from

those we for quarter severance Additionally, by reduction million was had employee We with impacted we capacity. spend related in in ended the quarter the debt-to-EBITDA year. with of remain near-term. the ratio borrowing $XXX X.Xx, last the and an incremental additional on $XXX The deleveraging focused rapidly in debt workforce to late million net

For range. the for year of full exceeded full year our our within was fell and constant margin a XXXX, EBITDA million end guidance XX% at us range. currency of record of the $X,XXX revenue and top guidance Adjusted

a our Taken was improvement range. with also full XX% of adjusted of together, of free expectations. We Rule top of in our line and which last of the guidance exceeded end XX exceeded flow high our range, year EPS at cash end $XXX over year $X.XX million, and constant generated of currency guidance the X-point

We remain to let's the business generate operational to will across that profitability Now in of XXXX. improvements on XX. Rule our focused significant execution turn

Mike of lead the That, quarter. realizing should beginning with to actions throughout prices year. with we cost in today software second quarters the higher increased improving renewal the dates mentioned, contractual financial our starting performance combined As successive at announced acceleration

of Our in is yesterday's some release. financial press year I'll XXXX guidance full highlights. cover available the

the We revenue. in of organic currency front million movements million constant no material midpoint, We X%. impact revenue $X,XXX assumes foreign for with rates. of being loaded. anticipate exchange unfavorable see FX range negative half roughly the at to anticipate we of the $X,XXX with Starting year, in growth At further revenue This $X most million. a full

as We with revenue pricing our initiatives well expect coming our pricing an as year acceleration growth as initiatives that online in are during the already progresses place new in XXXX.

and to And the Also, effect December. other renewal. and the reminder, EVERFI go core pipeline anticipate XXXX migration opportunity year, basis an XXXX. bookings versus have 'XX. to sales quotas season fall out and we contracts strong July a pricing between XX% on up of our as At cloud fully staffed renewal services with teams as a onetime as opportunity revenue rolled increasing business to that for start to contract will our we of total end new fourth in and by come XXX to XX% the a place expect peak saw strong that into quarter in revenue drag to for as onetime last well our to We continue recurring We decline continued by growth revenue driven points XXX model. shift in

profitability. to on managing nearly year-over-year midpoint. intently costs XX.X% year. driving adjusted improvement Shifting the EBITDA margins to range significant We and margin in at the remain the focused throughout improvement XX.X%, of We to a X-point anticipate

employee reminder, seasonal low QX related is a As the certain costs fall in our at annual to typically quarter. profitability benefits in

QX. margin the force are expect we to in reduction until Additionally, to a today taking we have impact meaningful don't

the currency of a largely by driven X-point at our Taken targeting margin constant year-over-year Rule XX%, together, we improvement expansion at XX efforts. midpoint, of are

some to in fourth for recorded probable the liabilities related turn additional at the incident this recorded liability, a we quarter, million reasonably as we $XX incident-related estimate. we're security we in the matters There loss cash potentially now security reasonably for I believe can loss Before to to time. aggregate contingencies have material estimate we possible certain an which not that unable are

the flow. higher year-over-year $XXX to flow with range changes by partially adjusted and working expansion, increase cash cash in capital our XX% cash is year-over-year taxes. margin [indiscernible]. $XXX offset driven The moving to We million Lastly, significant million, by the free expected anticipate approximately growth of

reminder, a figure related excludes security adjusted cash be to incidents. to spent our As the

the incident. for fees is security million legal full $XX expectation net outlay of year Our $XX for million to a cash ongoing to the related

other any on visibility near-term, our to we gain generation, deploy debt reducing of targeted the we costs, incident cash as will probable and our to debt clear focused lower magnitude timing into to security range. In well our alternatives with consider as the net remain continue our cash our as we

As will filings. SEC updates always, through our regulatory the appropriate to provide bodies in we community investment disclosures and

that and we In we the In the exceeded board. had year operational potential. expect to throughout or drive year and deliver improvements summary, a met guidance 'XX, substantial further expansion strong earnings full across XXXX margin

points year XXXX, a expect our As of ranges, goal ability the result, next XX the XX% up constant few guidance years. Rule at further our reach we currency our giving on of at a in XX% of X in full midpoint versus confidence to

With your line that, like to I'd open up the for questions.

Peterson [Operator Instructions] We'll Raymond now take our first question James. from from Brian

So pricing I wanted on of the have to start initiatives you guys some mentioned.

forward? of kind components. in question the do transactional about the of or contracts think get from are get going think on some about you that's coming I we of any I impacts? tailwind helping we should know those we arc how a some And provide lot color as how on them think could and kind that much durable I investors of growth a how

is, couple contractual. A also. started that things. of of beginning The And this in aligned contract historically begun. transaction some this Those has the July at is already year, if of in Mike. big have it's timeframe those with has of sort on us so ramp have Brian, will, November, and renewals and Sure, really Price initiative timeframe. we renewal then for December though seasons, kind pretty you year June,

year that year get see in this -- in well those in of some as year, and impact will benefit that our get we'll and the you XXXX we'll from more this get a some in back So 'XX. full build significantly this will year half guidance initiatives

Mike, this want a take to maybe one. for Tony, you And you it. if or follow-up Got

U.S. variability over kind in the transactional of You perspective what Any transpired particular. fourth growth on the in of XXXX? on some about the mentioned any components thoughts the And think transactional quarter? in how some on to maybe

Brian, it in year-over-year. was did volumes December Yes, saw the actually year average up full side little bit giving business. in was on the end as of softness bit Bigger year, in the down We tuition bit of saw a was all and We but with A were we mainly transactions little softness good frankly, year-end overall impact the BBMS the actually -- management December in transaction growth, at well. for year. of of the size largely well a the FX.

negative in had a side. also FX to we think I the a about $X on to impact the good transaction million is start. off quarter January

we XX% transactions. feel the overall for So pretty good on number

Parker from The question from Lane is next coming Stifel.

there, up last to that Tony. on point follow wanted Just

guys I XX down about sustained is Or that periods, transaction period in think Is come average that you time? quarter? something for recessions. is those being year it over of the talked to years. charitable think size of fourth the relatively typical of anomaly giving you see In an sort that a stable last

we at this you I when pretty past look we talked industry look and on we've has. back call Well, bit a as certainly up about -- think recessions, when last the the well held back at well,

we worst any 'XX, was saw I impact think 'XX that overall period. giving to the of the

giving the think volume and X this then transactions of past it all started slightly said, We transaction we I industry JustGiving was market good nearly or we've had do off X through for in years business. in really year that before today. the mix the That to fully January back didn't down like the in have recovered.

we So war giving drive the big up as or with really that's cetera. well. the held like well Again, et can saw events pandemic,

that drivers hold lot a well. we've there's up seen of there. really So different But

amount impact, tough. an the up year see is we volumes was even overall the this Tuesday the did obviously, economy has little though that that driving which probably higher said, of I in a finish be may bit little the disposable that, biggest maybe down been giving on a income being transaction December, And think bit to dollar thing we potentially per saw economy.

kind a off So little January bit and that a mixed of to bag a on of is start. good front

far. and have wait see what shakes out pretty feel So we to good We'll thus there.

Park, Yes, Mike. it's

JustGiving which much in is been really QX part services really transactions. strong, drag onetime and was FX And transaction of more bigger mix. has another a our our than

Got guys in of like on step it. with How Tony, impact the of function last public should it the Like share you versus like providers. then, I cloud you the what centers some renegotiated And about data year, look think the 'XX margin when in gross OpEx? closed about contracts margins sounds EBITDA? X think gross fact that I does

have puts there, data centers to got takes other We because to some Those very more We'll moving in Yes. are It's X and providers. third-party those we're colo going Parker. renegotiations positive. help closed. cloud obviously volume

all a R&D a because on positive been and of So enhancements. we've that's lot been capitalizing innovation security spending we've lot

costs So going you're amortization which there. COGS. lot of We've more a also making those of in just software to in those overall fall costs up little up enhanced cyber, been see investments in a

So takes. this next I'd puts we'll say and see over several a margins It in have the good you're is that longer-term start, going years. to to improvement though gross

data shut to several networks down. have still We centers and to close more

spread I that gross the of in margin that the So over improvements to kind X we'll would next see continue X to years line.

I just of other those offsets because spoke Some to. items

question from next coming Baird. from Oliver is The Rob

Can okay? you hear me

Yes.

it's Brian's the and is renegotiating software hearing something me. coverage cost for progress on One, side. of on vendors, about a we're throughout contracts Okay. follow-up earlier Two Clearly, part you lot side guys question yourselves the a industry. ton have and and pricing of pressuring questions that a in our made just the to

guys then will around for of a year-end gives guys, that So I you about wanted had quick I better pricing how and confidence these that? a follow-up. to summer get you renewals sense think And stick you just the what

Sure.

that. answer I'll So

it have up. those we but focused pricing And contracts initiatives of the the ramps gone historic including multiyear to So well last since started we're moving very well, some contracts contracts. multiyear X-year on actually fall, as

quite June, between fall us gone get build we'll now this significantly of bigger line. right, far, the through, is ramping big And XX first fall. it's some fall. the go started and and, so pricing it increases, then top going to the is well back deal last call Also, July. -- on impacts It it too it, So, deal Rule it's half a get pretty It's all, year. for we in of nice up with will think you in a the for of And bottom us well.

we've full get also those. implemented next And effect we'll of well. a full of year then get a year next some we'll cost the And year, effect that of as year, actions

year, for as that see we'll mostly the year half So some well. second the billing in next of this

had intense focus is the years. Rob, business rates got -- that renewal of the the rolled big is nice initiatives and price few that side improving, And we've inclusive on thus of far obviously, we're customer satisfaction Tony. on last we've out. and over We've an have this made have been thing renewal the investments seeing And

over very are close expect we'd So we year. focus that's rates and areas those where eye to we'll increases a on discounting then watch as renewal keep potential pressure coming price the with X see as the as key

Okay.

really Great. Very Mike, you it. other helpful. My Okay. for is EVERFI. question, Yes, around appreciate

out your with street was large in there And an potential? then of of to cross-sell -- is are terms were helpful. on how Maybe bumps a guys just mean a Blackbaud would way. about largest business excited account? we I that in in of acquisition, EVERFI that speed be little some idea that remarks deal. expectations? exciting. the where relative I some talk bit existing X- color really any us of deal said Was that now kind know Can you about X-figure more you feel deal, was there give deal, when the an along it prepared called and ARR your you deals, made You think that the you I kind Was

sure. Yes,

EVERFI, in, higher settled year call last much the them, had closed and few we attrition, sales. half quality. year of of lower financial back for it, EVERFI first on like announced with So attrition one We've the nice that all the we That's some audit half throughout the year, of center deals the some has The team settled main in down. a in year team. sales

deal of my in multi a I them, ARR referenced customers like X-figure deal don't. we the I our But name was was example, -- a so a contract. For that lot prepared to referenced don't remarks

looks So in QX QX substantial well. job this deal they a a in the building with good and We've and on pipeline that as The year. closed there customer. done great integration

So well we've the and we functions wanted integrated departments translate given in of took into really out cost, lot our with scale. that a -- to

had founder. It's really in the [ ] good We still the customer progress. [indiscernible] Tom was integrated same the driving base. that, because we're business

say rough So a the and to building, last half half outlook year the back in deals close the some of I'd front pipeline year well. year pretty start of as year, this pipeline the good good

The Materne Evercore ISI. next Kirk coming from from question is

you about just bit the little can particular you wise? color start? little us strength Mike, in you a in bit give just sort that that more bookings Can quarter, a anything detail in talk more on in product the of noted that fourth

good last aside, sales quota We year. bookings fourth the of year, Blackbaud we the sure. strong year, the up original our them but exceeded Yes, for quarter. finishing EVERFI business, saw really year rest the again slower,

the January product And of strong. in So we we original pretty in our number set across portfolio, beat budget the 'XX.

year. sales under up. really driving is go-to-market. We year feel Benjamin, the ended consolidated reports good and to good Pipeline we So me global this Dave our looks who how about consolidated

we year. beating year. a off really number sales, see last leadership good year see lower full good year much didn't We the really a about attrition slowdown in in this the solid starting pipeline feel we bookings, So team, and

momentum this to that potentially a But bookings a better, sort guide how -- from between, of that And one it pricing. to can of there's seeing connect Obviously, you're what think of doing sort continues you would year? guide upside the you thinking lift sort pace. does that going nice I'm from it? dots are into of also factor get the just if way bookings coming that with for guys perspective. the Is obviously, that about trying room lift, to that but bookings pricing right the at for seems

into this year. positive and on good is have that shortfall is, to be significantly the near The the bookings the it's Kirk, as of year, latter turns Yes, recognition year drag end on, spoke the Tony. part in bookings we a saw Mike But going revenue revenues, EVERFI's last to 'XX. the we the going in improve the feel time to, by unfortunately. of going is 'XX

So as you see prepared saw the QX. our we're commentary, in year starting throughout a expecting to in ramp

to loaded. back we of just improved impact some So the at as We a about impact expect late a half year front $X into have last still 'XX as we and actions much will of we recently well obviously, bigger rate. cost much year. that then head took get the million run half the And a FX negative on revenue

numbers. when in you mind you look growth So those at keep that

also as 'XX XXX basis we of in we the said drag from the onetime prepared points in XXX expect commentary, then And to services.

a what impact Our we largely much. little The places. was few recurring in There's model transitioned. EVERFI are many and Blackbaud has bit a is not there, bigger in core exiting but to onetime cases converting

we're from a drag see fairly significant to onetime continued the still as well going So overall.

diminish of they pricing, improvement should behind into bookings compounding improvement rate I think drag the of those as run effect things, And with heading onetime 'XX. falls all should currency all services something things line going 'XX. and really exit the into then would and up, quarter-over-quarter-over-quarter the like year positive nice of a I the of expect rates, we see at these the starting QX nice in run

'XX improvement in profitability a XX of and So improvement result hopefully, in 'XX, and continued revenue as in we rates see in growth both and on Rule improvement 'XX. continued

That's super.

one Just for one you. last quick

mean it Or sort is deals? more that multiyear I You the do mentioned I you're your -- with any to you're go that sort of Does the pricing do impact that upfront? to that they assume assumptions more deals do expect out? you're take multiyear of discounts balance pricing, really trying how more making trying consideration, have meaning you obviously, to on clients. into

are initiatives built-in of inclusive increases price multiyear contracts. the those Kirk, on and multiyear has Yes, contracts the price

The of Koji from next is from Ikeda coming Bank America. question

I question. just back wanted the to to a reduction news of had I rebalance for go this kind morning. workforce

fully what to meant. wanted understand you exactly Just

jot in Is sales headcount employees resources, XX% use think total you I reduction. the when the it our to that did about -- reallocating You kind just XX% that right? fully And the and say staffed. down then less. of right Is your reported that is capacity you X,XXX K numbers

hiring from going year forward? other where XX today are workforce some capacity of So maybe trying over going it's And you moving sense a people a sales capacity into next how overall timing the get and perspective? thinking months. this to about the you about Just thinking are

sure. Yes,

So what XX% is and last efficiency a getting is seeing That we're in from you're the year. more business. the scale lot

QX it's the And to that now XX%. is you right year those mentioned numbers are last of on. So

had we've kind So some the Board. reductions of across

know, as been services some revenue, much services us. onetime total, We've revenue for taken that onetime Our falling. a and is implementations percentage smaller has you and of that on do partners

with resources So needed less hours. less there we've

a few integration the with on layers some and span of year. had We areas. We like throughout with also other EVERFI and and things control focused that corporate really functions good

is like engineering, Some areas down. way we've attrition added our in

plan add continue And that. don't we'll some areas customer-facing like in We then on attrition if like in to sales. go we reducing have forward, roles

The manage kind are big environment build of just for on but those we're and platforms. a X of us, get centers AWS pretty is business, to getting the less more single Azure efficiency point able data So center at lot colos. for we're where a data out to

And having less so centers. colo data it's less X complex,

and the reduction growing combination and plan So out to efficiency business to. we're make in data of would business, able continue it EVERFI bringing of and happen more look I a that the at as as getting we centers, in scale

view kind as Got at it. maybe And here, looking just wanted are XXXX to you bunch. thinking verticals about year? And this your question you others most XXXX of contributors of target a ask that challenged for excited versus you particularly I growth verticals may as the to more which you got

products, fundraising platforms some fundraising same verticals, that of outside remember, lot online are the transaction look to but we marketplace. go last fundraising we a digital corporate pretty those sold we bookings, all we our the verticals of core Yes. board. if just a others sell right? solutions to of strong and at We I So lot platforms, the systems, the have year's across CRM -- across And products that verticals, have and were

So for portfolio we've still last strong bookings vertical. There's solutions. concerned our a any space not We're product had modern need cloud in our a overly pretty representation big about in year.

corporate impact between out a There's YourCause space in related and areas there. opportunities we've some pretty like of lot good And cross-sell. cross-sell space the got to still EVERFI white in K-XX,

last way us of we year the those expect accelerate vertical exceed big any for quota and So allowed closed healthy, sort don't but pretty across a in deals that significantly, all of year. to pretty our they're all we to

from The Matt next question is coming VanVliet BTIG. from

here and the I and U.S. you're of JustGiving near how the first at question, guess in that on any Curious you platform? expansion of to for terms mentioned end particularly markets the expanding been looking maybe migrating Mike, potential performing year. especially other well, that progressing

it's Yes, amazing. Sure.

get or using campaigns globally are ] much Some XX what all folks sort particular folks a a we have you. XX, disaster platform for over from of natural worldwide, mostly things that are or on world. of pain We'll the get donating the very that [ countries JustGiving

several and for business the platform recognition growth that good it's brand And year-to-date, in great including presence pretty organic this for last around biggest year, did getting it's really lesser its years, market us a as but still in So it's in strong footprint, far really good as world mostly but got much and U.S. and an margins been We global good great U.K.-based in the accelerator Europe. us. so a a job QX.

been good a us. really fit it's for So

guess can particular how Okay. higher there impacting is some needs outside fundraising there Great. meet there's or when the look And side how ed if the expansions you're that some platform of impact you in of larger the the higher from ed I then of of going size fundraising ed? any of transaction platform, and or sort seeing maybe across average progressing? higher the at the deal the curious space, And

Yes, year, for will. We've the you President's on in the team ed we that year. year that a bookings, got had Club if last made higher sales folks good

bigger well. our vertical So our still salespeople customers, A there as presence pipeline. schools, universities the got strong. of in long is tenured that strong lot really or We've

presence a well. that last bookings including So it's a time. been year solid the us for had long for as And we

end of reached the turn or the further floor We to our closing question-and-answer I'd for session. like back over comments. any

in across our strong as business focused journey. close of I'll execution Thanks, Thank XXXX in on that by improvements you. and we Rule XX remain 'XX the just progress along had reiterating we a operator.

into Our plan accelerates and the half 'XX second in XXXX. carries of

points significant confident improvement in to meaningful second year. the expansion. place Rule add least of substantial the demonstrating year, We everyone. throughout continuing in on this acceleration achieve expect quarter to in with XX our the plans performance starting outlook with at X Thanks, margin We're

That you. conclude does and Thank today's webcast. teleconference

your you a participation this for have day. You time, at thank line your may and wonderful today. disconnect We