Blackbaud (BLKB) 2 Aug 232023 Q2 Earnings call transcript

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

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

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

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

only business. financial isolation on The release including measure specified, financial and a well we as non-GAAP full and how we that discussion in note results. not non-GAAP internally GAAP GAAP measures for GAAP our a year on materials as refer substitution non-GAAP press as guidance. more investor of non-GAAP both should our our to measures be Unless otherwise posted of to full performance, representative call. today the Please the focus to considered website combination our results Please from financial are believe will will that We for measures. this refer measures of details

Mike. with XXrd. Three I the Chicago call With in Before Stiefel attending meetings that Midwest be in turn August on our to York XXth, briefly in Advisors, turn Mike, and I'll participating New that, over to the IDEAS Investor investor on the mention call over will Relations team Part August I'll conference City

operating this we progress to essentially punch. share a plan, on one, introduced I'm in Thank you the we're that pleased With for making joining we two have May. call. measurable plan five-point our

by in second second The first driven we'll that is half, revenue layer growth have renewal good will a in expansion new margin through. began And the margin of the we revenue modernize pricing, is that our approach accelerate flow second realize the quarter. punch to to the and

guidance in produced results for confident we're financial execution That's our of year. increased financial the Accordingly, the quarter. strong the operational delivery of solid

the As drove adjusted quarters actions a EBITDA. completed substantial in previous expected, increase cost in

Additionally, to and perform multi-year to well. very contracts approach customer continues our renewal pricing modernized

our are December, perspective, faster and total half second was subsequently July renewals June, we currency heaviest future revenue currency we revenue numbers the months organic And reported that at in revenue year-over-year now grew in constant begin Recall Recurring up completed. for on and to million, on revenue, which a June and X.X% a years. basis. of July are will From XX% build see total now of an constant XXX X.X% is basis. in

a of at margin That up Adjusted EBITDA increase was XX constant year. XXXX. of an X.X over meaningful XX.X% of the XX XX% last currency, EBITDA or million, adjusted points million, second second of very quarter with quarter above constant the an represented in was which which percentage currency,

sequentially. XX% production, cash And Taken another together over free quarter was just that higher five XX, point XX cash for of with a increase over the and we constant for just Rule of currency million. four-percentage adjusted flow flow points year-over-year, quarter, had good

vibrant acceleration from provides growth five operating on and ecosystem. that reflect optimization areas. we're significant I'm customer five each multi-year revenue approach attention contracts of with in our improving predictable more one progress the this on expansion. innovation services and recurring, to from turning provide. focuses delivery cost Four, development and to these three and to results efficiency, And revenue internal a key keen in sourced improvements and that drivers, pricing which sales we the continuous of bookings, channel our value secure product With excited XX% Now making the plan, Two customers that transactional our value a modernized management. of revenue. about is

from I'll provide is Tony cost as bring strive our and review I'll second realized Blackbaud. well driving also wins deeper pricing is as and innovative cross numerous improved subscriptions innovation, will success. financial enthusiasm of as customers and new and value upside a update share with initiative. bookings, which the our examples software selling from And modernized transactional as well we're cover revenues on delivery to their we quarter at Then Product capabilities. being customers, seeing product the our an about to results. to management, core the increased

example With the utilizes For AI donation raise. NXT. are competitive results new early and It's missions, form space. Raiser's drill more I'd think a rate the strong to qualify their suite. example, match more prospect of to increasing delivery a growth for a customers We a donations in and Edge recently and us. which with our power the of the fuels and the gifts. promising. customers identify donation still in are this like to raising Many it's bit major next differentiator. money, conversion We candidates it's of generation we our insights, unmatched however, days, goal that form illustrate new released And for into or revenue

those via into Services, Blackbaud next system, our Edge our in form donations using generation, then our and and After record. Merchant Financial of system recorded credit donor management Raiser's love our prospect service can donation NXT, card donations, processed NXT accounting get insights, fund Edge be processing our

of value great our Martlets, their is this automatically. This and enabled workloads. and provider. but has based this their a maximizes only hospice not also fundraising, seamlessly as is office for of it minimizes back UK great A customers, example All administrative

to previous With donation distinct five technology steps. six processing required solution, their

with our automatically supporters their and mission single spend That generated, each on to words, Now, donors. includes click. with are for thank to donation up time Blackbaud team that sending love batches scarce an And own time human donor processed message our you more. their in enables frees a more their resources quote,

for school wanted with connected of meeting, of through outcomes see system, K drive. win Texas. based can planning, limited is strategic private connected the a not in suite faith data in recent disconnected a After because that a data the making. power example their Another decision realized just power convenience, this the past school was and this but Houston, this They they eight grade had quarter

Our management. solution for five major included components student managing enrollment, of lifecycle from fundraising, management, the financial learning to student and the information,

accessible, for early we announcement that quarters suite. impact We underway. also innovations we have outlined social products our to implement June, the plan That the more product and several responsible across artificial make initiatives good are sector. and a number over additions to that of new next announced intelligence to In powerful investments intelligence

said been not in has new AI lately, Much is but AI to us.

our out has in and enabled generative strategy that rolling using Blackbaud been corporate We'll said, new years product addresses needs. capabilities into challenges related across specific capabilities That next impact education AI be analytics offerings. to in of stewardship, generation set For an technology we're AI fundraising, expanding portfolio. extensive our our

peer-to-peer fundraisers, and for impact. few AI corporate only donor for for And a we are example, AI stewardship, of these AI have capabilities For planned. the

and solutions focused good we cohort launched in to announced new program, designed solutions increase our administration social creation XXXX, on companies. marketing, provide which just startup writing, for in for our prospect nonprofits outreach content includes major year's This with In a is to program. and to generative strategy, help launch purpose-built startups newest using is creative AI of companies and grant This few. was cohort cohort impact gift participants This AI successfully. July, name XX that

registered Developer’s developers With almost in Also, our using hosted nearly customers XX,XXX at third-party app. annual the beginning Conference. of a third-party June, we XXXX

into to looking And our Our Blackbaud ecosystem great This our our distribution developer is network beyond also to broadly revenue share community energy agreements. and capabilities, is an our important marketplace. a ecosystem. on way development AI, more focusing partner and and base component extensive software leverage customer of more our extend joint we're the at enter

least, that social a we made we investment startup of Blackbaud announced program. good our Last focused AI but not and a a in recently momentum, graduate leading partner, small, strategic

optimize in and to RE investment embed delivery, fundraising, momentum us capabilities processes. stewardship in product Our AI like allows NXT solutions, accelerate to and

can during bbcon briefings in you future quarterly conference, earnings user during product our there's business. side see, forward our more to plenty sharing product underway the our We look calls. October at and about update developments exciting as So, on of these

spend modernize our I’d to a our updating time well terms. pricing to on bit of on now like made effort and initiative on you is its contract The and the we've it’s progress way. nicely, maturing

And dates into improves we late We future have The mid-September, than opting accounts already the contract launched three-year we last contracts customer XXXX with larger program And some majority security obviously, year. it option. notified when through the renewals. predictability. in are first contract are of cases, the and working XXXX. customers half strategic customers for It renewal higher renewed of with already on revenue December have is vast expected dated

the equally performing program well. The pricing is aspect of

For renewed our our in the software in call, keep July, we first and as the and what the is multi-year experienced quarter, up we subscriptions escalations. December. last contracts are Please subscription reported These first-year annual price heaviest quarter. June, mind, second in renewals price include we on increase months that for

the recognized and meaningful impact revenue are yet now the renewals has renewals way. are June completed, be July while the largely a and notified, So, in to December

We're day the about the for strengthening to committed setting to standards. Tony, make I'd we the employees we we to talking customers. turn time the highest I over make call like Before very the some business, our our to operate every and way our impact spend commitment

around every give the of billion you We university, in our business systems charities changemakers, companies impact causes. or year. drive and granted a world continue donated, their our to $XXX be over for has schools, impact helping sense through To invested are individual leader the nonprofits, the

million individual volunteered to X.X that who day achievable plan the enabled none skills the changemakers operating company. of the dedication our on strong personally we've importantly, XX hard charities. the be impact impact reviewed every you they team job without our the drives today. students were could work, exceptional platform, XX,XXX them XXX,XXX college learning that efforts a passion that XX,XXX bring day. It's enable deliver execution for JustGiving year our teachers critical It's last modules. this benefited hours for amplified that And kind and of a year I customers. to and our that every members And alone. their with reached employees want on learning thank most on million employees with remarkable through

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

everyone. Thanks, Mike. Good morning,

announced results for to solid we line The drove Second well and actions over cost operational sequentially and with began through is as we've improvement impressive cross significant call. including EBITDA our were increased the realized which modernized taking of into be and in accelerating quarter last making year And this the quarter, guidance adjusted both growth on progress last and year we revenue a been next. are quarter’s and second the financial the of remainder to quarter. bookings has sells. pricing And the leading positioned benefit

of For quarter million the organic Blackbaud at of revenue second X.X% XXX revenue reported currency. constant representing growth

the to revenue K-XX compared examples Blackbaud include to Organic multi-year million booking behavioral stem grew South Services JP as Association's and signed EVERFI’s previously Merchant constant secured recurring for declined announced contracts contract by sell revenue the second provide we we From to with University last non-strategic currency, to services X solution. well enterprise Medical as during standpoint, with year. X.X% the peer-to-peer the of a a and one students, Carolina ALS training. level adding Morgan, several And its of cross by Recent at renewal UK health notable expansion preventative time quarter quarter.

year-over-year. Transactional growing revenue quarter, this the performed is Transaction expansion high in key business another operating driver our five-point plan. optimization digits well and single in

performance upward. business strong trend the to in on JustGiving in well implemented by transactional We continues Blackbaud streams recurring on Each included as a revenues revenue in management the January and began impacts revenue of and to grew see the three transactional tuition enrollment quarter change reminder, As performed the in saw positive are we the revenue rate Services. line. continued of Merchant driven

on actions As sustainable earlier, I based previously began taken. this management cost we’ve our results producing program mentioned quarter

more Pricing build month actions immediately our the are renewals actions. as items than pricing cost impactful expected, As P&L to occur. each

represents For our inherent down ago keep were It's a costs reduction forward. and the from the a performance in second to year XX a leverage quarter That's total on it year-on-year X% shows on going million and higher business. our hold cost costs that's intention tight revenue. good

inflationary on to tightly, may largest have headcount growth we continue managing and While some owing we'll our expense to an all basis. pressures, scrutinize other we're ongoing expense costs

and higher points EBITDA million constant was Adjusted was the margin year. recorded of an over the of was at XX% represent million The of second EBITDA improvement adjusted XX currency quarter XX constant a X.X XX% for percentage last than rate. XX.X% quarter, currency at XX the which growth

up Taken and from together, points at Rule was over for over currency four points constant XX% sequentially. five quarter, of the XX year, last

well a tracking commitment Rule to XX end. by be we're of year our run So, against at rate

an recorded to discussions related we to million to raise Attorney’s liabilities probable incidents quarter, matter active with the loss the $XX resolution non-cash additional for of During in We're General expense horrible in our certain security to near the at a million. contingencies settle that aggregate future. XX.X

flow to solid track quarter guidance for $XXX million to $XXX production increased another year. add range on cash and attain We are adjusted million on free the of our

to US taxes, prior of due of were which software was were ratio our range. increased considered profitability the rates and X.X here conclusion For up debt in of to already and the that with net $XX debt good We in utilized adjusted all deductibility of in collections. attributes last cash guidance a UK Self-funded quarter in the cash tax from free periods, purposes, million, flow times. tax tax for XXX federal higher year higher changes were million costs of development and EBITDA ended second which quarter the cash in

Turning XXXX. remainder to of the

of anticipate And to constant than nearly financial to QX. represents $X XX our approximately The We million share XX.X%. year target. a billion million, revenues A a XX.X% annual flow free billion per XX.X%. seven year's is at the are to this cash to improvement which to of Rule of increase yield of $XXX retire and cash to midpoint debt free We flow last to XX free year guidance in margin $XXX of intend midpoint. X.X year-over-year adjusted half full EBITDA XX.X% We of $X adjusted million. reiterating which the higher is cash the at point X%. we debt of at At currency drive XXX free cash million $X.XX flow our and substantially price flow share, guidance approximately use current and EBITDA XXXX

strategy. our next will cash XXXX believe on opportunity go capital per free we forward allocation will into grows share provide for shareholders, value a more capital creation into we flow our great present As guidance year, as it head return and

during pleased quarter. progress our by we So, to we prepared comments, are conclude second the made the

realizing up driving flows. well is plan five-point Our started revenue gains, and increasing benefits margin strong and set improvements results. strong and for We've cost have cash

With that operator, please open the lines for questions.

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

Thanks, gentlemen, congrats the on quarter.

on can to and had. from Any the topic. you how has a customers, you versus wanted I love So, I'd on trended pricing success understand, retention hit that expectations? key been the feedback color what know I it's your provide guys to there? that's have anything

we are contract, Morning, be. started three-year March. well. and and Most for which sure. Customer like customers are this Yeah, Programs March. is into effect where in really opting retention, started it this renewals a last they thought year, going to Mike. We’ve launched would go

deep we’re end total So, only is XX% into program, really the year. of our minds already And pretty of renewing you're we about of done. -- about the this that of the renewing that XX% are

so, this pricing year. half And takes the of in new the effect eventually second

revenue going we QX forward. So, go builds much really in in and well. just QX But didn't it's QX get

of level be what be think thinking how high on early customers, nonprofit you leveraging When will a just talk across curious. the to kind about And you your maybe and Mike, landscape? the use hear AI? they to do great That's AI. cases generative I'd are

have donors which an our as folks platforms, generative and using a our a use marketing there's AI. opportunity example. early efficiency that of lot of lot to The customers and cases outreach around And we use platforms messaging, for

of I For that, in it's made mentioned company part my the we prepared investment that in remarks.

early So, that donor used really messaging first the and is case market outreach. is

Mike. Thanks.

You're welcome.

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

follow-up the this XX% think increases, color you for set the year Great. of price I Hi. one of another morning. total, Thanks, done. guys. a Appreciate that XX% and you. Mike, of that Good up with

we much just to Obviously, that from were an bit? bit because, deals a you see the uplift June backend And talk little as also in that back to in the you ramp the little we've of at talk they impact, know half tend about got be that revenue software? expectations? in least you're of relative can pricing in QX then getting a the in growth year. can in is I didn't numbers a loaded So,

So, with a just comfortable for relative want then Tony. and your quick get to feeling to follow-up that add

Sure.

in last again yeah, year, that started but March. contract started program So, the renewals

reoccurring, the ratable takes fact ramps a business. so up with that while. it rev-rec a we're So, It

we full investor all right, obviously that ramps get much rolling going showing renew QX get year, just then start year single next in to of XX. this QX, we're our in course, in just you're the next top that added a of of slide QX. so at getting effect it total, And just slide then a didn't And to to effect job impact does number that every But quarter-by-quarter. pricing year, a of the of of And at how just XX%. we're XX% We it'll deck we XX. another ramp anticipated. So, the we an XXXX and that keeps and it year. year, On XX% good

guidance We we're improved our, and confident in increased that. our

half doing organic year, it in second second just a to And half this up math ramp of so the shows the growth. first nice half

it of in a is we've to realizing will the because think falls through. opportunity also pricing the happen drive contract and so, quarter, And really starting renewals I the margin, lot margin proven this in

and the we're great setup pricing for just future well. a program’s and growth So, going to going we well. years, we And in have QX, think getting a anticipated as again, QX, nice, it’s really really we're

Mike. then, you? terms we're breach. the, been guys But also a out M&A appreciate we're you you out you summer But have little Thanks, allocation some strategy, of at to ratio sounds that. it fall. in here. like break the you. when Great. you at Tony, acquisition. your of the on color in this And since I going a one look starting here, an the market to cash for bringing from nicely guys unknowns And late down like a liability at, look more in when get look bit more And some you reasonable debt on the privates capital to the it's in made looking little while see Valuations there, side

So, appreciated. we're be so of the getting color that into here again, Thank might any kind zone where you. would there happen

Yeah, any track be very settlement, strong. pay increased material which you our with assuming positive. debt hit on close The good of we expect that guide, that looks front. been looking the cash times to flow have leverage by the Rob, that the is level. quarter we'd guide said, gave don't really we've two Overall down, end we year, to like optimal the is have collections Obviously, on last

opens at about the us getting stock up acquisition more really debt looking to start paying back now down. the that been it's profile So, between opportunities. that down leverage buyback, Reinstating acquisition and EVERFI potentially

up. think shape. So, do the we'll be in market is good I opening

improved I highs were think at. from they the a have valuations that bit

opportunities well. at team the market engaged I'm new be Muni actively for So, as looking sure will Mr. and

again. thanks Great,

Thanks, Rob.

question. the of Next question line with proceed Lane Parker Pleased with from your comes Stifel.

the thanks for guys, question. taking hi Yeah,

one pricing you, that margin how help and gross we a of when that a in this for you then some be do versus, place understand look just us little quarter-over-quarter, that of? year-over-year, initiatives we of improve bit along off way? unpack versus could forward, should should much here, result other a to look solid at if consolidation we IT wondering very is And the as think is build that? level Tony, you First put sustainable the recurring Or any you variation improvement there

question. Parker. a It’s good Yeah,

we've in QX we're that from a, seen QX, new and refer that small impact to a impact going by chart, a numbers. see impact to a that haven't you you'll that's and QX, grow But pricing chart seen quarter new as significant in full that'll those help We deck, when to pricing. QX, yet. in And getting then the investor substantially you get of

the gross as COLO So, that data year, renegotiated some that our centers cloud. an the renegotiated because improvement of improvements and lot those and four because cloud far as of margin and on We closing cloud last accelerating of in got fall will with the drivers bigger overall gross contracts to ongoing a margin key moving have environments. AWS will through some those the pricing to favorable the more Microsoft move to margins,

in one kind actions headcount having took The And then have wildcard QX that last late obviously, we to the items we largely side. is one know, impact. related on year, always this to other happens of as year The are transaction sustainability. the wildcard costs follow-up at the you on that cost what and positive your that look to

see should backwards margin wildcard the from So, obviously expansion would impact a volumes transaction from true be the future, the have business go point not contractual as that does shrink on in revenue, that I subscription we'll play. in business. recurring as an because is the profile the our different obviously, upon much pricing margin would expect. BBMS has This grow sustainability, improvement than margins, That one but within or a comes to would gross the significantly

have And cost the more as some we've on that a things got and close helped couple well. centers other data to structure COLO

what that things? rearview all the seeing systems last reorganization some are to year, all it's the a on others, acquisition, in side seeing the faced demand if got around from sales there. challenges the you from the you're Mike, EVERFI corporate like And those curious and corporate, there deeper feel and you assess the out that's of the of vertical, now, what if one's to of And there obviously in standpoint, corporate right year second just last look go when at you environment now, Mike, health you mirror, you with just that similar

there, for last got In Quality, of year-to-date pretty last your of a the are out year of level, lot University Center pipeline, couple organization year. I good. announced overall, Medical changes in pretty bookings Yeah, calls, good interest to Carolina, year-to-date, a were deals these a of deals Still And South we've two closed date lot to a good point, at are good. Audit company bookings Microsoft, we've there's that the complete the quarters.

the growth whole portfolio across seeing We're year-to-date, the product well. pretty

new exciting so, of with XX revenue the part investor which And the does of sort for of that this deck that, and doing layer the of is slides, we're deck, still on organic In what this the just contract and pricing, XX. this showed slide year. example

impact It's we year, remember, of a it, QX, to we of And and start this this partial QX, a yet our revenue the get But it, see point to of QX willing given have part Because, guide. in not those. new year, a again, that's contracts and layer too. only Tony's of XX% to of small QX experienced. increased sort earlier, that renewing will whole and are

going And so, on full renew of we'll we're the year. effect that next contract. of the year get of year, another top XX% next those But to a

multi-year XXXX. just this again in then So, restarts program

is top growth. on good of improvements year-to-date new as just exciting. That's well. that a pretty layer of more Five organic bookings margin So, revenue

questions, my Thank for guys. Understood. taking you Yeah.

Sure. Thanks.

next question ISI. proceed Evercore Kirk the with of is Please line Materne your The of question. from

sell was renewal on Or job Obviously, but of Mike, as I up. that's cross obviously of just something is the Guys. sells think could opportunity it's for If the a if thoughts thanks one, like process? renewals the the as on portfolio to comes you the the you more other and getting is just order Yeah, sort results. just upsell of, part of cross the of on about the opportunity? talk opportunity day? solutions wondering pricing that Congrats very XX-XX much. that

do folks. sales cross We folks on focused new sell got constantly we've logo, that and

base. we've that's a so of job the a selling And opportunity. part sort of base renewals. into around got cross assignments, a And existing lot And just of assignments, part it's of

thing other that The innovation. driving that's is

user As sell Edge we and Raiser's cross experiences, integration our like in Financial Edge drives processing, opportunities. of payments to platforms continue our better drive And the making NXT. NXT, that products

So, a sector cross corporate in is still selling well. us the as across opportunity the big board for

Tony, costs evolved company to thoughts in to in you're getting of just guess, of curious. around on leverage the of base the taken some of I Gen sort incremental there benefits the just AI, has and incremental talk any about platform that? sort of little sort every Could you Just already? business, Okay, bit kind then as the a guys of any just their actions incorporate have terms I some of Thanks. any you cost offsets, was from

Kirk. significantly Not overall. Thanks,

So, we basis. our revisit say, often regular allocation quite and in investment would I certainly R&D, reallocate, a our on of

R&D and a And our of overall investment on reallocation think innovation. more of so, good I it's a to know, we spend dollars the total because as chunk you

that in to of years, the few last had increase last the frankly, has been cloud. years, over an the move place we've any So, couple the

the and the pay investments one new as then we've pay So, continue expense doing. we is to other places lot cyber And seeing costs we of the of cloud a as for that, in we're for an we've move lot then are to made places company cloud. that's And had overall. a do And COLO business, every in the centers that the probably still the redundant environments. paying of data also to increasing few

Thank you.

questions. of of your Our with next is Pleased question the from Bank America. proceed with [indiscernible] George line

my for thanks question. Hi, taking

announced the long-term on, that of kind kind If your of changes from what contribution and program, partner you expectations comment the to could the recently channel? are for

Mike. is This sure. Yeah,

XX,XXX of really have startup then leader either types. we that the got their year. that talked And software, developers registered the that development of last we're running basically higher that's network, a ecosystem. then and have as over we partner a we've And we've what of new of companies, we They're combine in social, program, new which companies, developer partners program, businesses, all we services, fact partners. got with mid-year there, good coming new program. much So, got components a that a and social And we've I on about creates call kind driving in this couple focus

over back or maybe now or there's XXX, If just go XX,XXX. five you four years,

focused developer systems And Ecosystem, us. again, its we're and network, on partners, took so what software these integrators, firms, the services we it's call where important that's Blackbaud for companies, are, professional we

And organic customers. drive this they're frankly, ecosystem, stickier, because helps to we're through our it partnerships. growth the our more shared And through these network. solutions if building helps so, we're revenue expanded us, partner you looking are it some will, and And

you. Thank

[Operator from of the Matt VanVliet Instructions] Please The next proceed BTIG. question questions. with your line with is

guys, first my Morning, the space. guess on taking for education questions. I thanks

Just curious, season. little could seeing to side selling much of standpoint? as is bit product additions of upsell, what how of you've the maybe use platform in there your made dive and on to continue seeing it, cross this you're sort you sell key kind Especially there, if there of more the being some the schools appetite a from a from

for season, is pretty heavy my mentioned one the fall. implementation prepared This schools need I to school, the because ready actually Yeah, remarks. in get

our there, ready. is of like see year. Good in, the we a So, product summer we're K-XX earlier cross the get opportunities implementation the really higher spring, space time portfolio. to selling sell that the it's sort schools in season, And widest

that management to So, the SIS that, enrollment school there's financials student we tuition systems. to running from there to quite fundraising a products few sell

start logo operating a often. provide system, and it with go quite and adding And, start back a or platform, and keep a to we have with admissions that, in to school and happens fundraising. then But we SIS of in it might lot things school might the which typically new going opportunity will

get we doing is that there good footprint. a yeah, partner network really They're well, as good well. So,

good yeah, which it's the year. Year platform The side really tuition a management of us. this been so payment been for environment us. has date strong that, And is for to really

Matt, continued really well, as tuition good in school space, side. the the we're helping enrollment on seeing is increase which in

Curious you with as then, Thank customers. look level talked they like the even pushback what curious those for three-year feedback one the next enterprise is, you. is seeing discuss at Are year. price you large of or of great. renewals option Okay, that of on versus to in larger on terms level about the early hearing what very some year? customers in their much feedback Just And starting increases.

have have by is providers, be not, mean Workday remember of there. could enterprise or SAP we're Oracle, lots alone What I not customers others, software to others. We're you it that and and to that Microsoft

requiring And and contracts, so, basically not in necessarily multi-year we're increases. there alone price

kind one that's So, point. of

other a is, record. The system are we point of

you enterprise of for where we So, their a revenue, their foundations, for and if the revenue those the solutions provide generator mid-tier will. record as system

are not -- So, a, it's choice a them. discretionary for we

going we're, those great course And of and record, relationships. renewals, well. all long-term system have of plan customers to of we quite So, are contract going of you sizes know,

already September notified process the way already the already year. yeah, end the and remarks, and through August, a July customers complete. we've of of And is the big we've I most And works, much October the part end prepared as in this my mentioned completed of and pretty of

price never visibility So, our has and to organic as we've these revenue of in is contracts organic growth, visibility and view growth increase this our got because which strong, to awesome. future renewed been renewals

notify And so, dealing with It's the of because well. some we really year, all advance. in far customers, because now, next enterprise we're gone you're into right discussions quite those

Okay, great. Thank you.

You're welcome.

turn this for to reached session, Mike back At the you. call I'll Gianoni we've end Thank of closing the question-and-answer remarks. time, our

We're management. operator. summary, successfully Thanks, plan. pricing driving modernizing second bookings, In optimizing who you, and cost revenue, Thank five-point joined innovating solid tightening the contractual executing call everyone we we had today. are quarter, products a and our transactional

Our punch we're the effect first In the in the initiatives quarters. is making cost on started and accelerate renewal third that margins produce in the fourth side the the second second and revenue improved has are operating quarter. to the growth one-two the have progress a plan of punch business in will

And the revenue to ahead the value quarter of And continue we and team full we will shareholders. members expect year. our continue for achieve Rule incredibly Thank I'm sustainable of progress drive growth and to build momentum strong proud in of the expanding this to growth XXXX single we achieve well By of and will XXXX. our high growing as revenue looking to of well confident year, you for creation ahead prior fourth organic as digits, target margin the to expect on have XX I'm our that afford made.

concludes today's This conference.

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