Blackbaud (BLKB) 3 May 232023 Q1 Earnings call transcript

Good day, and welcome to Blackbaud's First Quarter 2023 Earnings Conference Call. Today's conference is being recorded. I'll now turn the call over to Kevin Muni. Please go ahead, sir.

Good morning, everyone. us call. first joining year and for earnings XXXX you on quarter Blackbaud's full Thank

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

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

We measures believe we measures internally of this on only specified, GAAP how are business. our and refer Unless otherwise call. that non-GAAP a combination measure we of financial more non-GAAP representative will both to

be in non-GAAP isolation website. and this release measures. our Relations A morning Please financial in is available Investor as substitution non-GAAP not presentation and the detailed a available GAAP in on more should measures results for our considered a that is press reconciliation GAAP supplemental or schedule from issued note we of

and turn statement on we'll I commentary as April team during attending were our of sharing call Also, And Conference website our And Before our of be provide on briefly quarter, details well. same Relations proxy to annual Mike, meeting I key Annual on you operating Needham presentation second to XXth IR our notice filed the detail were XX. initiatives be that more and behind annual incremental the posted contains meeting Investor Technology the virtually our Media our additional XXXX today's stockholders of May these on our XX. plan. will over materials mentioned that day. review that I'll encourage the call, to to website

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with meetings James Additionally, we'll June X. Raymond on in be investor participating

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

with morning, and us today. Good of operating everyone. strength plan outlook report We're results performance improved continued underscore Kevin. momentum our and Thanks and plan. mid to the long you the Results each XXXX for spend quarter the beyond. today potential on expected fruit, further strong the and bear see to business reflecting accelerate with upside term. near, just on first pleased and our I the like our of are we've time and beginning of the actions call over Thank we successive quarter to taken, joining in to

from the factors. improved key stems beginning expected performance from a Our year of on outlook few than better the

is that touch our confidence a plan our full margin despite of transactional bookings macro on started costs these renewal detail strong beginning ahead momentarily. level of pricing rates improvement operating remaining challenge effect. to through we actions revenue meaningful and new as flow take I'll contractual by approach as But QX continued in expectations, were strong increased in our more driven in strength implementing

we Taken factors further together metrics all these a our in raising performance which will on across guidance supports bit. discuss

Non-GAAP currency Let's XX% currency currency, growth demonstrating EBITDA of a is five revenue at XX together on sequential organic first adjusted double $XX Taking of is margin three an point for revenues XXXX. year-over-year. constant which up review XXXX from reported constant which points was XX.X% Rule a basis adjusted quarter increase quarter, the quarter represented was X.X% organic It million. of up million, We EBITDA fourth now $XXX an our year-over-year our constant strong results. progress. and QX,

spend a still confidence our why only from cost upside savings we trajectory. to drive to like they discussing underway us minutes and initiatives, growth revenue initiatives reflects quarter the with at few modest to impact give those have them significant the Importantly, arrived and a come. how we at I'd

normalcy to we center to and comprehensive revenue best return pandemic, bottom improve determine both saw line. how to we every the following and took the the As stream a cost business, look examining top at

and approach Following bookings execute this review and on attention a management. product last multiyear transactional fifth, keen first, contracts; focuses third, and and acceleration; plan summer, expansion; pricing optimization that we point innovation; began fourth, developed to on second, and customer five growth revenue cost modernized to

success. each what on we're plan to us five guidance, as that we touch each results these in as in raise impact the to early I'd discuss XXXX well are we and I'll then trends like of expect saw have. the anticipating metrics and our we why indications show QX of give key confidence beyond. the drivers, monitoring, to the QX XXXX

customers enablement constituents Starting both digital create customers and systems deliver value partnerships delivery. our and These We innovation with by critical record, We adding advanced ecosystem innovation partnerships their services. their and support for organic product seek and and offers our on in through mission missions. capabilities replacing our customers and investing of opportunities ways strengthen their to and substantial by new aging, for to add new acquisitions. continuously

to with For applications Blackbaud Blackbaud complementary marketplace integrate example, our seamlessly SKY with solutions for partners. API point the enabling of CRM, in and availability Altru. customers to Blackbaud leverage We're endpoints the

the double matching expanding even on partner unlock can drive like SwipeTrack link]. for the strategic partnerships a automation Alma to funding partners Base our also activate without customers gift now donation Blackbaud focused more value lift. operational to extra with easily and from customers We've solution, CRM [extra donors

creating of without alumni Base Alma between better an unlock modern by fundraising constituent enable that advancement education, secure to school expanded announced solution integrations engagement We a recently movement and event and higher with and friction. for data teams K-XX to gift provide partnership systems

cultural to Blackbaud digital between Additionally, and integration modernize and Services organizations. arts office we have Altru with back operations and create a experience to and the Solutions seamless SwipeTrack Blackbaud partnered Merchant secure patron and

we keep lines guests with fast and to to enter technology a provide pre-pandemic getting and members our organizations with moving back are visitors, most customers to and With their levels way critical locations. of provide easy to able

feature Team peer a Move for more activity availability acquired general leverages Move. Razor first announced new We also fundraising. which year, with tracking kilter, raise and peer we organizations Blackbaud to mobile with charitable last Good gamified Good helps and recently

For product and first who customer move remember and to example, members bookings hundreds and will of help good partnerships of miles and the the walked carry the will These growth. nonprofit reach volunteers strengthen expand millions service stickiness innovations and drive value honor XXXXs military and responders. proposition impact of our load of have

the strong last year, their versus corporate our by up in more bookings point QX, significantly XXXX. doubled than to our second first Turning quarter, We sales over bookings. in led the team drove who bookings performance sector,

sector corporate YourCause our solutions. As consists of a and reminder, EVERFI our

Guardian, We the enterprise the into Microsoft, have period, pipeline few. including and our contracts the strong Asia signed year a University sales and notable large a delivered. name Pacific of in team Wild heading has several Accenture, We to

of This XX% there markets to driving quarter-to-quarter the sales and placed the over and speaks serve sales say, be have productivity has Needless on focus end we volatility improved further resilience rep per year-over-year. we our to in productivity can and bookings. improvements

with year the well. start most us in impact However, the to strong year positions revenue the

in the our third on changes XXXX, continued size revenue XXXX management about the softness is we has average experienced perform The be announced Services this take which that Merchant so well added to and Blackbaud in durability, a QX. donation growth giving] U.S. far to to proven total and began and resilient we despite contributing of to [just a Blackbaud in revenue, rate rate transactional following tuition Third, quarter, late X% plan. effect compare. against the in tough

As our Blackbaud. both across our teams that customers and our at are we a solutions win-win are innovation look hard work drive ahead, to for payment

a want our been that to compounding subscriptions. like pricing And more a have a And our of the our is what we're to contractual The of solutions appreciated. powerful we're ensure this fully our models. two to lot on fee months. renewals about introduced area the lately, the We looking donor changes ways at modernized on better excited to share fourth discuss in I'd team coming also is is I and pricing software drive recently on approach We've talking payment effect working to cover optimize experience. to

by the of have been we relationships our have customers, Let with that me whom many value saying decades. we deeply with start us for

raise value. solutions for and our fuel Our annually and we billions customers dollars to our of impact generate considerable innovate to suite of on add social to value continue products incremental

in Following businesses last in we place an five point summer, value directly are the policy put updated reflects customers that is the we provide inflationary pricing reflects of and broader market pressures to line the that the with implementation all facing. our plan

we'd be two year, with last of a XXXX contract March contract that customers changes. started In notifying November renewal important we making

replacing of the terms First, standard, three terms. changes. outside year one year renewal was we'd process as contract be This a implemented offering already renewal being our pricing

Second, material the one we'll that be includes compound. will three option And rate year implementing a increase rate on third, more versus three annual the increases option. year year option the

did our annual increases. options context year For rate three include historically not compounding

of in Through annual our three customers are year one a renewed over rate and in for that the of both think inflation. already nature of we three renewal can You increase with and catch the cohort. XX% for as rate as two in subsequent years up increases renewals have year XXXX April, one year above the up

customers about in notify five date renewal that advance and ahead contract date. of renewal months terms expiration of changes our In process, of days XX we we their require

the very have months. we coming So good visibility into

increase very increases renewals end three layer working annual of is of and the these day-to-day The completed of In have in renewals, more largely future time contract compounding year and fact, June and through the close we rate have even of over increases. management well. are the rate pricing renewals year contract September through the mix mid effect What's customers of impact into rate notified contracts, October. and progressing the of is the now impactful as one and we

Let and and renew to me approximately contracts XX% create are of this this little explain. accelerate These with Over XXXX expect renew we revenue growth expected that renewable year. successive XX% years a at three revenue every midpoint will quarter will year. in the over base day renewing that in each are

to XXXX of see only begin sets more annually. That the an in a compound impactful beyond XXXX, we as increases rate increase. year portion of received XXXX, the up the So impact situation full rate we in and even

in than over XX% have which benefit is of will adoption little of assurance greater up more of XX% an a standard as renewals revenue and retention The renewal three XXXX. provides for base A higher renewal in XXXX and predictability. added

ahead, growth revenue minimal stream sustainable meaningful contracts fresh for to This renew. increases. as and And further cost cycle XXXX comes a even begin in Looking us. XXXX with will sign starts the it is

it's So rich. margin

in our was posted website investor our this for of have IR effect. We example updated presentation to included morning to compounding illustrative fully an everyone earlier this that this appreciate

attention I'd last to is our discuss The driver to keen like today costs.

made and renegotiated already plan four Microsoft including more This and our Because headcount making. a first reported, key QX, centers a our XX% by Azure AWS, scale we effort since we data we have staff As much last the achieve have contracts now this to few closed better on in year. to years and we further the in XXXX. reduced difficult year, efficiencies, was quarter. vendor closing we organized decision We reduce have

such dynamics drive business bit through a at have about favor. Also, to competitive the for our to are will our this foreseeable is revenue goal margin the fall in growth future acceleration. run greater the shifting headcount much Our that

quarter, enterprise that focus nonprofits. markets companies on this reduce effort their two their and large targeted discontinued to costs core solutions past an were to point in Just very

going to targeting potential strengthened quarter, which areas plan. operating first our these quickly, for year the we confidence underscore priority In the our well. To bookings see initiatives strength are sales and the and recap of our began the overall of impacts very

nicely. growing is revenue transaction Our

completed Our rate lastly, retention margin program exciting and increase is growth. driving opportunity. really significant our cost for contractual reductions focus on and And renewal already higher much

raising anticipated all guidance even supports metrics. Seeing than across faster these these across areas, progress initiatives

of margin currency at a X.X% at now XX.X%, approximately Rule the anticipate year constant organic up X.X at nearly And of of currency approximately XX%. For XXXX. a full adjusted growth currency midpoint, of revenue constant EBITDA constant points we XX, versus

And XXXX. fourth XXXX ahead this for full of and XX% of the single the plan expect we acceleration year. is year, cross this looking exit to at our digits of revenue in performance quarter continue to the quarter, well expanding organic the revenue in rate with to sequential to year growth of Rule line high And which growing margin XX target achieve we each to ahead Rule of prior expect full XX

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

up Mike. for of performance. adjusted million, million of In total full reported of as investor the refer million cover for Rule constant quarter of and updated $XXX XX.X% XXXX was the margin Good I'll for well organic our impacts, exchange outlook X.X% organic morning, to and the guidance Today our to release of EBITDA posted foreign first when line XXXX $X of for million growth at of QX $XXX adjusted before as negative opening revenue of of quarter, $XX Thanks our press today's and we currency Revenue results first and everyone. Please EBITDA details our X.X%. financial of adjusted XX.X%. the questions. website for XX growth the materials represented

of delivered. ahead had Bookings plan is to serve our the in focus strong increased quarter, driving proves paying the further on last into we sales resiliency significantly productivity and speaks sales were This markets of we mentioned year-over-year. a and quarter and pipeline heading in well I in improvements off. teams QX As the our

the quarter's introduced months we share last since model the to our renewal which blended price On adoption more two of old is option the reflecting new with looks like that year year our March our In pricing We've of one was on double renewals. higher our with for versus full increases of rate call increase I'll three plan. pricing relative option shortly. QX what year on contracts began seen low one effective month a renewal our the digits increase. in rate renewal rate our contractual

Lastly, grew change events. few well year-over-year with elevated beginning at of transactional that this effect the year by associated as revenue supported rate the took as X% volumes a

a And tough as over a compare. reminder, this growth is X%

and in of organic recurring elevated constant you'll time If for in one we related persisted half services QX, currency. accounted and a XXXX the with other the revenue a revenue and at volumes quarter decline total growth experienced drag a point to The revenue in Ukraine recall, on crisis. growth X.X%

In quarter EBITDA of million grew of a EBITDA We've have business profit XX.X% XX% quarter, aggressively have clique been of And to of realized only cost and $XX margin year. flow optimization we the series this portion improvement actions more many currency. cash actions. through subsequent of while constant Adjusted a of as an with adjusted each these been year-over-year manage the towards at and March. expect completed the realize early and

Additionally, get more to manage to our expenses. to from structure we're our continue going scale cost

Taken together quarter of Rule in currency XX and the constant was XX.X%.

Turning to our cash and balance sheet.

the from was flow benefited ended on with ratio million quarter borrowing million in cash expected in We collections. cash free was adjusted The $XX quarter payroll, in Our of the times first additional $XXX strong decrease X.X rapidly deleveraging million net we EBITDA in transactions than the a capacity. and $XXX with debt debt performance remain focused better to near and term. and and an

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

that it's are the activities well summer. on us on Mike our earlier, strategic As [indiscernible] we embarked we evident plan walked underway that Life through

expected. outlined we are the to out We are those the operating more confidence our our we reflect even five getting drivers And of early guidance than plan. successes key in increase across and raising board initially

basis at of a and anticipate drag billion the midpoint see with less than to the half. $X.XXX a first versus guidance. FX the the Starting second the occurring the constant in points approximately X representing approximately benefit impact range now for full X.X% million We up half growth prior negative We with revenue be in little year, revenue. $X.XXX the at organic billion to in our currency XXX

metrics February versus support following key our the outlook. arrays versus revenue guidance the over-performance Our

front. First on the bookings

plans Our sales year. in and versus the teams outperformed last quarter internal

we Our corporate and year doubled the total sector year. and into more of versus company than their as pipeline last bookings solid the QX remained remainder look

the across and elevated rate the those revenue platforms, we transactional in related intuition X% JustGiving at beginning takes, implemented year, that and Second, several BVMS for supported in solutions U.S. by at extraordinary volumes events. our including impacted the nicely of grew to puts number management a on volume the our increased relief by payment change the of on quarter

renewal renewal the started subscriptions on primarily new implementing rates our sector. Third, our remain we social rate software as in strong contractual increases

context. some Let me provide additional

at Mike year. As it And expected over revenue midpoint renew of little earlier, this our base mentioned XXXX a in years. in renewable three will the XX% renew of will approximately XX% over that

have old two digits in renewals XXXX that new than reflects of low and customers more with the cohort months here's far we're blended of So increase. rate March what the QX pricing double XX% seeing. of rate rate in with a A renewed and increase

in We from QX which growth shift digits steady three and expectations. performing fully vast effective ensure of year rate the mix high now total the mix step high the rate as remainder company We've hold XXXX, has a to successive for there. are renewals comprise also our plan increase up year the with appreciated the And to organic term the to just terms revenue meaningful improvement we majority expect in XXXX year against the outpacing to one three our jumped is teens minority rates growth, single of and to of renewal above of we and total mix XXXX last in exit in quarters initial year. renewal total a well the is seen expect in year, renewals to this

range midpoint focused our year-over-year and margins significant improvement guidance. throughout point We Shifting of XX.X%, at XX.X% run while prior year to anticipate increase versus revenue the on organic costs to driving a a remain the managing EBITDA new we now growth. the point intently one margin our We at improvement six increase profitability. rate, in adjusted to and

our QX original in to shared, reduced headcount a a represents to action XXXX. November reduction we we further achieve February plan As from previously XX% when with and of our staff combined

by some private and year. continue both of AWS and expect footprint four infrastructure largest another Azure and last Microsoft this data also closing by our renegotiating to scaling year our cloud our We reducing two coming contracts with vendor centers close

Collectively, large, annualized by actions complete, and expenses. reduced are very these and our

XX focus have Rule benefit of expect and through and the on We our many of optimize to sharp pricing a 'XX will management, a in margin. to of double have much initiatives scale continue cost and upside revenue beyond. Also, as falls further to

with quarter should in QX Our improvement step a from through cost management to with sequential to generate initiatives the pricing second combined improvement ramping margin initiatives, QX more level QX. modest

Taken are X.X XX.X% nearly Rule targeting for the the a of together, we point of at full a constant XX year-over-year improvement year, currency approximately midpoint.

of progress at revenue we year XX to the adjusted margin exiting when an XXXX through north of in the the growth Rule and single a the EBITDA ramp above As considering quarter. and rate XX% we organic XX% fourth anticipate run digits, high

Before incident. the settled with I flow in related claims quarter, security SEC turned our the to previously to we all disclosed cash the

make related cyber program changing to the threat ever cybersecurity continue landscape. litigation have resolving our matters minimize well and pleased attacks to to risks the matter the as to remaining improvements incident. ongoing to We're future shifted to and investigation have We focus of as regulatory resolved our this

recorded in believe at reasonably other security as a of the we $XX.X that we we loss There [indiscernible] to probable liability end reasonably incident contingencies first related for estimate. certain million unable can to now we're loss the this security related not aggregate incident At matters time. are the possible estimate liabilities the had quarter,

our through community to regulatory the will filings. update in investment continue bodies SEC We disclosures and

year-over-year flow free to driving Lastly, moving the by management million are supported in The XX% and at is which $XXX anticipate a increase approximately We guidance services. range flow. $XXX now in million the our payroll midpoint. adjusted of to cash cost cash growth decrease initiatives, in outside

we strength of from in are we reminder, which seeing. benefiting some cash additional higher expectations. versus still offset will the initial transactional also revenue We're our benefit as And anticipate partially taxes a

security Our incident. adjusted spent figure be to excludes cash the to related

near fees the and for of for million reducing our year $XX with the cash we is remain $XX outlay expectation Our EBITDA ongoing on security term net legal incident. leverage related focused a net to In growth. our to the full generation cash million adjusted

probable as our costs alternatives magnitude clear range. As targeted into leverage lower timing we we cash to deploy our and visibility incident as well any the will to of security continue our consider to other gain net

and support run expected primary In to year raising budget XX. and to throughout strong summary, board. business XX% guidance the growth to a performance XXXX our the performance heading than with Early that the single We've plus on to into better revenue started as anticipate we higher our well. relative XXXX is year. has acceleration progress drive management financial a digit the our of degree continue high an plan execution And focus generate with on over Rule to given will we of across our our confidence and

for that, your open With I'll questions. up line the

[Operator Thank James. The Brian first ahead. Instructions] you. Raymond question go coming today Peterson from is Please of

really on gentlemen, strong congrats start the Hey, the to year.

it's or and Mike the this. take But to bookings the that initiatives. in success wants great don't had to you've know I Tony the who see pricing So

You you're just the to acceleration. the outlook year, an in pointing and raise typically quarter the first of don't

a you if bit. we acceleration stack what's to a that love rank for think I'd So unpack driving from guys perspective, that about

which mentioned we're Sure in thanks. my in that here new that the prepared Yes. contract renewing things before. There's Predominantly Brian, process seeing haven't remark. some seen we I

with early So year. October much notified for of already to of We've as out almost June. pretty today, QX customers example, we're through with through this

So to months they we have about changes. days any ahead. five us customers notify XX to about And talk

haven't we had And before. this

and before, very future the with year have we line substantial falls well. the higher can one and we future year contracts. haven't that to and we bottom and new predominantly contracts uplift year two have not good price closed, then view had very those a line, pricing in the in months of three So as revenue to which different in had which most in renewed which for And up many customers much signing we renewals, before three see

future thing many I'd say that we that very new, look into growth. the is that's good a have ahead biggest has months So that

with why that's in single we're said crossing So QX this that's raised Rule And guidance. year, high growth. organic why we we digit of XX

Now our with into had year, the we payments at bookings, in pipeline increase strong combined platform well year, year-to-date last in a and price the came effect January of strong of which a this as that really really in end year.

you when as the this of use all future, So combine on sequential quarter-by-quarter good and XXXX those very growth for well. of

Great, like corporate know of visibility environment but shrink Mike overall, at following maybe this there? I color guys and look if bookings just you the that any software there, up. choppy sounds a quarter. lot it's guys. mentioned strong Thanks, a the driving really know broadly, on you I what's more

pipeline well. our Really as I prepared Yes, came got customers year mentioned we There logos start year-over-year. like driving the year year Yes a my the that's the It's Tom new some last are back really that. that's your out of the and there Accenture, strong. of they think slow I as impact and quarter strong. really regulatory customers bookings are EVERFI gate really were that upselling and closed EVERFI with Microsoft, lot good their year of marketplace. enterprise well, remarks and Guardian, come Jean in and good to doubled question first in they corporate and group YourCause. This

Good to hear. Mike. Thanks,

You are welcome.

you. Oliver of Baird. is next Thank coming Please question go from The Rob ahead.

Good guys. questions for thanks. Great, morning, first you. Mike,

and consolidation, platform maybe as pointed It platform out business talk like of vendor of a your have have you looking a double examples? some impacts lot theme people benefit with our is because to and on next positive sounds costs towards us our the over give guys you companies. the other Can of a initial also little clearly lot you a the of you renewal look kind a one here some through bit running vendors sector which year. for cut of the guys mentioned maybe like have you you hand So up

people's more as these you about Tony. sort I then of around, And So can advantage into quick products up a maybe just you getting hands for of talk renew of follow little guys a had taking attack contracts. plan

Yes, sure.

So of we the new lot efforts cross and July, last we lot put addition we not a sell have in business customers a in customers EVERFI underway, shared to cross sector lot efforts but Davidson, there. put of together to sell corporate do the under the Tom a existing of YourCause logos,

corporate the Dave cross sector. on as and impact of under that the rest We So focused Benjamin's remain good, our open, well leadership. in sell company opportunities

So there is lot of a opportunity there.

of mentioned, in There enterprise from remarks away prepared space is have some in some mentioned their solutions. that of my Rob the some players the large very walked of our I

as opportunities for this that So creates new enterprise our us well given space is focus. sole

is but single give next the customers. example this we're and XXXX to a because, XX% renew place will XXXX, also lots contract to planning program will going for opportunity you about XX% in a of in said we XX%, I last something renew year, continue And I us that the to year, about the there. year that customers every year So just XXXX, new then what after, year the November, put back of brand repeat earlier on in renewal ago XX%, and to quick started notify customers those remaining

several effect, our So, apparent make this this deck. new compounding in we slides tried in to IR

graphs So in there nature there's some show initiative. new that the of compounding this

So line growth increased a super from it's top line powerful and us retention. for and standpoint, bottom

well. as up is retention customer So

there it hey but then us bought business? uncertain. because Mike, the quarter, year of That's and Thanks. EVERFI we great side business and we is And straightened that guys had you linearity help prepared year remind Can of that. yet in then you for that a strong Mike, out on us And was there. that start in you. business see haven't normal Can you. what really, the the great kind to helpful, you Tony, just Okay, doing EVERFI commercial really the for be great. said, the to pandemic follow my would well. appreciate Because and remarks the YourCause was up his really Obviously hiccup a normal very Thank just with then had linearity?

seasonality From that you're a that on perspective, Yes. that? what getting Rob, is

Like Yes. to more a a what is loaded good, ones I'm is end somewhat key understand. sign, perspective. Exactly. the That's of is timing trying typically, sign back Exactly. anomalous from good, this it but

year, last if the Yes in and for ranks the bit we market. the the to turnover you attrition recall, prior completed go quite after year, of right at of that we end a had transaction,

to getting those So seeing re-staffed and teams our effort benefits go market of of to saw we trained ramped. was that and big finish some the and that the last year We're sales year.

and of you've start strong last they very good year pipeline. very here, year So and to the seen a as end finished good the

I especially and on side on are bit enterprise tough those thing think on size the deals. the EVERFI a lumpier YourCause is the

perspective, of a lot I the There a necessarily quarter-to-quarter. will think so expect because school more, systems. seasonality I is to there of little into And be bit the from that seasonality lot into from a a done don't be training

So maybe to of large see see that of more typical such business. is maybe of I be school in lumpiness a a that deals, one a you kind on going they to a we're advance license just that can that new in little because bit bit But year. what think used of

also Now, most of are these sub.

of bit that a little side in more chunky year But what and of spread regular end mid bookings will to they'll time. versus see So business a the we'd on over seasonality year. compared come the maybe

Appreciate Tony. Okay, helpful. it. Thanks,

Rob. Thanks, bet. You

ahead. of coming you. next Thank Please Parker go from question is Stifel. Lane The

Mike front year guys. question the think with talking of pulling the timing congrats event question of you about go October? Thanks the into renewals point you're that the a come When taking on three end here. towards that the at these somewhat these the of I a for Hi, Are will you model in quarter. good customers of renewals Good. these on back referenced some In coterminous that renewal effect of getting in to year, of sort October. decide basis? of the some forward actually and a

No.

deck some kind just graphics there's And So slides explain let is they how of in that me working. IR explain again, this this. some have the

ahead. customers months we So five notify

notify to increases customers QX example, for in results last November. has announced, new we it because only So, our started the just price we March

forward. So month every go

Now new month, March price forward, every increases. have well the

And customers for the were renewal. our year one year past, of most opting three contract. years on contract are in Most

flipping the to entire contracts. business year and really the we're company So whole subscription three

XX one. to because related contract, number and asked the two, any we they have we for have very days we if that's want So into discussions the five ahead, to notified Number future. visibility notice months good

So as contracts. QX signed almost of our today, entire complete, is

weeks two of June as have left of today. to complete We

and that pretty complete, customers and we of speaking are So high we're some September that August a have July renewals. October means complete, with percentage

might think this have different backward than So quarter like where typically you things is a your to of this. what you previous view and very

what a have We a many ahead how know forward already almost quarter view at that's closed rate. and are contracts to

these talked about rates contracts. in Tony the And

And the then increases so contract, two the that the never had rate subsequently in high three rate year two one, have mentioned teens increases. years in year three and three and Tony before. increases years rate and We've

So it's zero.

ahead. months visibility So it program help? into Does very this good many

it. Appreciate there. color the for Thanks does. definitely It Yes.

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welcome. are You

ahead. Thank you. Evercore go of The Kirk coming Materne question ISI. next from Please is

side Yes, thinking are the a is thinking over thanks. it perhaps pricing what little you good I the you're about how you obviously, of transactional Can the congrats outlook about embedded talk really that of just next few business what's my that, more in seasonality. the but of for the quarters. side and for or Mike, that business a sort that there talked about just it? I'll guess, about that add side bit can the start there's you of on the business, year. volume to

our Sure. platforms in remind the main you that revenue transaction a in there's three of there. and third about I'll is

is Merchant platform is donation That Blackbaud processing one Services. our platform. So

number drives is on three donation the of out per and one volume which donations that donations, very dollars platform based platforms. of driven, So

on increase platform the price a of implemented We that last at end the year. year

that So started just January. in

financial higher we So we a quarter over of because in. over the quarter benefit quarters. And in see platform. the one platform grow get does only years have seasonality first That fourth of that the holiday usually

first quarter well. the in platform did that so And

increase well. price in volume the New did

is The system. tuition second management part of transactions our a

for And growing been our We really customers. volume tuition that's that do well growing very private very, well. And school strong processing quite also. has and

platform. extremely for from we campaigns platform The third which some global on is donate JustGiving large countries our that have over platform, particular is It's transaction In well. part a our XXX individuals of campaigns. that doing

really well going really That's also.

the first those going really quarter of So those and the we good rest are And the and about year of three the trajectory components. the for feel forward.

combine renewals QX year to why of QX these cross a That's that saying guide, and as forward when just So we previous I the the single with subscription our And high and which XX. that going time we're raised on 'XX digits, why we XXXX. and is spend year and of This lot Rule a with that's guidance. opposed bookings.

changes. big So

do thanks And Tony, Are on renewals. additional of doing year wonky we is, slides, you these for for looking the of that's I reason three for termination that year two as termination? year I'm convenience around sort question accounting them and one have deals I if if at the Yes. there you three. I in sort I recognize you're the guess Or asked them? speak get believe renewals.

a it how terminated, through out matter of much the cycle, if average bit doesn't for of end a the just walk the that plays clause. termination it's Can not into it kind until not was little You but it to convenience there's just you numbers? you get curious that just as if

the of a like processes convenience our terms some like try YourCause, have for I we and inherited Blackbaud which handful, our with a Yes, legal We do renewal, termination for that historically will the Kirk, inherit convenience. never the vast the conditions, to etc. them as and typical not those do on team did We of a contracts said, think over for majority I of renegotiate standard come acquisitions. up have EVERFI our and And years included clauses. termination have those handful

of that offline. Okay, cool. rest talk the take We public It's to a on about boring call.

guys. thanks So Congrats.

Bye. Thanks.

next from of coming Please VanVliet BTIG. The go Matt ahead. is question you. Thank

where look about the I organic digit year, Good about us increases there high we help for talking guess you the big little think what key net maybe morning, new least growth there then a four digits of the end or make or more we three progress part Thanks and are between maybe baked the single what into price question. taking of of that, revenue guys. upsell, bookings maybe and being towards to just can and focus the at single and when a drivers volatility rate, can high see maybe you that as continue cross-sell like? looking that, kind on like ultimately looks

will Mike. Matt, take Sure. I that,

components about. the talking been all we've been we've it's that So

corporate board all, Blackbaud to of and And there. first across bookings, and that's the impact strong products sell platforms So new logo. cross

end our are open markets pandemic. So fully quite They're post resilient.

us long companies And of so a really couple which a is seeing their the space, I off we're big the healthy environment for focus have mentioned enterprise taken and in buying run. helpful

A just that transaction doing business talked doing well. all components the really I well about second, of three

components like, which walk time Merchant And kind looks in doing customers a and One with year what then contract signing is through of most of you Tony, for us, of the which the Blackbaud a for significant. renewal And think giving. up just which of three contracts. on increase I new volumes, platform now, is that pretty of the putting Services the well, tuition lastly, price lot spent process,

two, three after Year price the retention higher. high Our single that. teens. Year single high and renews Year digits. increases is in that one, high digits,

going those third And year. to this about we're so of do

lot I'll we've and all contracts. forward had headcount year, the of Azure, time efficiencies spent our The last which real estate, of four optimized this business. all of in big In data in So renegotiated categories. we mention our too, rolls is thing last all reduction AWS, centers, Amazon getting out a scale of are a contracts with closed XX% the Microsoft those

current we're lower headcount. and going cost to there have we annual So our about maintain

are line. through bottom initiatives these to to flow the going So

example, at revenue guide for $XX If you up moved gave, we new we the just million. look

We at also also. $XX adjusted moved EBITDA up million

fall new free flow $XX the we're And there moved through on contract in the by guide through adjusted just these at well. getting nice up the renewals. we fall as So and started of midpoint, with cash million course,

high rule So this those year about single and bring organic it's ahead the of new of guide couple to go and a things QX us of original QX all growth XX, that crossing forward. the and digit in talking plan years

And Tony, was All mentioned of the then, strategically How just you. gone from sort a you help the Thank could or mechanics help the few go standpoint And reps then impacted if place that up of right, step remaining sales maybe productivity team big with has an talked in or great. that broader the reduction wondering a much you there? market productivity. you. operational headcount to you about? I drive sales sales nice Thank team? what to into of mechanically in

group to into of affected know a team pandemic very Absolutely. go-to-market the shape was really several you us. in and That EVERFI nice then reductions. over largely years, good lot team the productivity The we past see that, of starting as in in improvement outside we've hit coming work done the minimally pandemic, with that were

labor our it I paid fruits a so over just what now but years. here of just of that dividends. lot is you're the And work, seeing did really, think, several [indiscernible] Mr.

in technologies beginning. the done just a approaches, we've end. is this structure, the things the our lot hiring we've in is that all and organizational in put changes so not new etc. And And This or of

And so we've over on tremendous in we additional significant couple overall, productivity sales to few we'd CAC over be payback the next of where still on see expect improvement a return although to We're and perspective like years. not progress CAC the last years. near made anywhere

to that And economy's seeing the I'd that for coming leading say So really the that did years going everything And rebound. several fruition hard the pandemic. of into on most we're out. of is that into all the now benefit we work come just

year positive The a he We lot and had impacted that other side, And on got in on Tom the YourCause just last are And corporate We've the that like front. a be the side the just team. and would are had well. also. corporate sector of we've disruption team it then team EVERFI, re rebounded. economy looking ramped. great job of on the staffed And things as very sector corporate doing

also were, add sales. just what we reorganized I'll that Yes. some

sales, and were up several running dozen a groups they different had a half rolling into areas. So we about

the sales we global Dave Benjamin. under So Blackbaud combined teams

So all global of David runs sales.

YourCause you to the which we're combination of Tom EVERFI, know, and Davidson, founder the business selling and as Tom, for is addition to the In runs EVERFI global of corporations. and Tom, CEO

have so we we as had last summer of before streamlined, And single a selling leadership, organization, haven't that much more global too.

go-to-market. a driving practices last changes it's really better So all that this more year. And come summer, common and for fruition those efficiency, lot we're to seeing

you. Thank Great. right. All

welcome. You're

Thanks Matt.

like This closing to us I and end the floor the comments. question you. turn Thank brings answer for would session. Mr. to to the of over Gianoni back

pricing who results operating We're critical expands to drive of customers the with committed plan point In solutions summary, our customers delivery, our everyone business and revenue, out our improvements. on laser call began social implementing today. shareholders. to strengthens durable, providing drive fuel for transactional focused a our five operating strong and we modernizes and bookings cost company, strengthens our the joined pandemic impact. significant our innovation advance lasting and growth, Coming Thanks This we're contractual optimizes in summer, last long mission to product management. their thoughtfully creating causes innovative, plan and

the our see in by as quarter this guidance. and performance benefits plan financials, of evidenced first increased just strong We're now to starting

high ahead single of to sequential We the improvement digits, further see by year Rule organic XXXX. this of revenue quarter year the as and fourth XX as quarter that's target each our achieve prior of in well of the expect well growth to

revenue XXXX, sustainable we'll for year. our progress Thank drive you the that I'm and Rule to expect will of on and team we incredibly that ahead full has to strong, looking shareholders. our everyone. growing progress our of the for expanding create achieve continue I'm And margin to value confident proud employees, our growth build made. XX

concludes today's gentlemen, event. Ladies this and

at the disconnect day. may webcast of enjoy your this and time rest log You lines off the your and