Blackbaud (BLKB) 1 Nov 232023 Q3 Earnings call transcript

Good day, and welcome to Blackbaud's Third Quarter 2023 Earnings Call. Today's conference is being recorded. I'll now turn the conference over to Kevin Mooney, Executive Vice President, Investor Relations. Please go ahead, sir.

Good morning, everyone. us Third joining Call. XXXX for you on Quarter Blackbaud's Earnings Thank

to substitute the isolation President of GAAP our including financial Tony actual me are our then materials our subject questions. Tony we year note those CEO; Vice guidance. risks that will today the we'll recent press details of that, Boor, non-GAAP more representative Mike. or projected. our contain certain We that and results well CFO. Mike Unless Gianoni, full cause over internally posted should measures Executive measure to Joining refer not performance, up only call financial call. measures Please and open to considered you, refer that full on we I'll Mike the results. Please this the be turn how to could those for in differ will website the on statements business. as otherwise both and believe investor and combination focus on for and forward-looking Please comments, risks. make XX-K that refer most Please release a measures non-GAAP for are of measures. With more specified, GAAP will as as note results our for to financial GAAP non-GAAP form prepared Form filings Blackbaud's to line President call today Blackbaud's other a our and and from materially today and your uncertainties and comments non-GAAP to This SEC discussion on information

pleased strong in joining quarter. the results produced that for Blackbaud share the to Thank call third today. I'm you very

as growth, transactional our we to improved Our bookings modernize improve to operating X-point product performance cost revenue, contract management. optimize innovation, and accelerate on pricing plan execute accelerated continue

last would punch. plan that deliver quarter's suggested I recall may a X-X on You call, that our

In the forward. continued growth. being year's margins. manage the going delivered organic and total in expansion second, again with business level. much improvement quarter and profitability; the First, the continuing in second first third improved cost margin last revenue our We're margin to aggressively an improved strong below cost punch, quarter, This

the organic This with also revenue punch second growth. improved delivered quarter, we

X.X%, quarter, total is and growth costs twice and of reoccurring more organic than the third points For of X.X%. our almost revenue from in faster organic most grew excellent a revenue margins And at rate our ago. X combination strategic that's second grew of year flow drove XX% The the revenue, improved for cash percentage lower comprising up quarter our which and revenues revenue even the line total accelerating quarter. the

company line, a obtained bottom become our We a XX both execution last Star commitment points North goal of a that on this As quarter full of with third we our and of few Rule the result the XX.X%. XX in of remarkable and from before delivered on to a score ahead quarter of recent up years a initial is year. a expectation expectations, result our top

we plan. progress are call One like in X Blackbaud's innovation. many driving today's like quarter, the a made of customers. their take the across team to these points continued discuss are greater like on I'd execution our strong our across company, effort commitment all capabilities our detail In delivering thank aspect to employees through Results coordinated I'd for to entire the and for new

exciting of and opportunities. points. longer value we to our in that term During invest for pain the customer with innovations the We're investing increase and solve products the quarter, continued new intermediate several

designed in into placed revenue. arts a investment higher drive charity, engagement a program and cultural appreciated conversion donation therefore, education optimized during clicks with and an that's customer new adopter form organizations. Customers fewer example, and across our rates attain For early with to system we quarter, of the customers

So it's efficient. more impactful more and both

available first the aggregates to corporate we're in plans new With labor-intensive, to early and early this program resources human Impact sector. and Impact in of an from social a program volunteering generally educational are new in This starting impact into adopter leaders YourCause of in analyze Edge, data introduction newly-developed track reports expect It this the of are time. Current next DE&I a a a with structure. data and solution make able put into standardized with to programs lastly, half strategy on half customer real produce performance their product the XXXX. solution year of quarter good of a large our last machine and this our a learning that year. introduced we intelligence continue second solve called the point build for EVERFI's single view giving intelligence. and leverages of employee with platform. artificial We we And rollout Also, that provides the Edge, full pain to to impact replaces corporation's hoping manually power

goal our For recent example, is efficient, to capability forward. impact This call features logo early a AI giving offerings resulted new and our adopters to of have products a on growth illustrate expected a second There was for positive we our one the new advancement enthusiastic independent challenging effective about was and The real was increasing fragmented our academics, fundraising. management efforts. products what recently, these capability in Foundation in make disease was the County and is examples I'd view advocacy for and X with and raising of generative several story of our more Christian for came a business around in add To to to the value School point. customer the XXX-degree school donor for chose was and going a Edge their their running of students. the share disparate We're NXT They in a customers management enhancer Revenue pain across introduced Delaware and consumer wins. our replace were for how funds to new platform. third payments Raiser's Sarcoma products and communication revenue. no us few JustGiving, downstream researchers quarter. our departments. we to system third do awareness TeamRaiser K-XX office. among They impact Blackbaud's This of America and of peer-to-peer customers, the Pennsylvania. They Blackbaud can systems, increase more for competitive like engagement win

an of is their innovative strategic providing enable was the to looking enhancing As vision. technology school fellowship. total part communication education their Blackbaud plan, and solution for school while partner strategic school a

partner. Cisco of EVERFI to with corporate mental is across the new as side education On partnering Alabama the wellness efforts Cisco CSR of impact Systems students EVERFI the business, broader financial program region. as K-XX literacy part their offer in adults and Selma, a in welcome a for

Additionally, Hockey EVERFI that National renewed Education Goals, League teach Future expanded their the grades League skills in and to leverages to course to and Association, partnership X. X students who STEM their Hockey hockey game sponsored X-year the National Players with Hockey Scholar of

was third a outreach The of with also events. quarter period several very customer high-touch active

example, individuals to causers over in our and platform. for received the fund XX that London awards annual For on were raise celebrate XX,XXX peer-to-peer votes held JustGiving

Miami. customers ranging CIOs Summit how a why cybersecurity nonprofit topics top best drive assembled volunteering Charleston, Their its from our Digital in leaders cover AI is corporate social Summit, In to impact its and at team annual convened to to giving. some impact Innovation to imperative Impact business that discussed largest several impact our of employee and and

our of This for hybrid last is in-person Sydney the had spectrum pop-ups we format smaller camaraderie attendees. held individuals largest customer our a corporations. reached held bbcon customers we the and in full interaction while year, virtual slated in week, of of customers, dual our from Through and these This Toronto, enjoy. the personal Finally, we benefit London. Denver nonprofits conference. And tent this with attendees, also the expanding to enabling conference to events, that

robust our I'll program financial Tony on of outreach of this the movement. With over the leading call results. turn that, coverage strengthening to affirms addition position as singularly focused our software our for social impact In company, to a brand,

Thanks, Mike.

EBITDA We the quarter, in in we guidance outstanding mentioned, line in increased strong May. resulting the top growth Mike third third with we accelerated a communicated Rule results ahead quarter As achieved of had of our cost in plan. a execution of strong quarter one tight cash line company envisioned, becoming growing XX flow focus goal on and as management, produced continued and

Total for quarter the third details. revenue million, organic reached growth the the into an X.X% dive of $XXX 'XX. representing quarter Let's over rate of

more quarter double than of marks third is The quarter. the growth of rates. Notably, this the rate growth the increasing quarter growth previous third revenue consecutive

by leveled effect During grew had X.X% the out the the Nonstrategic the exchange onetime a quarters the and X $X such declined revenues million constant currency. at pound as foreign past slight have business that against year-over-year. quarter, dampening dollar, over strengthened British

focus mostly services about margins are this revenues or at forward. the As line an carry that grew past, at a X.X% Recurring we've item professional X.X% talked of in is strategic constant company faster of of modest going rate the organic and comprised currency. not

software revenues. revenue constitute from our of is contractual in As recurring revenue both accounting and X/X the for total excellent of company driven we our noted at The recurring Mike recurring was generated do, earlier, of by subscriptions transactional revenues growth revenue. total revenues recurring is XX% streams. and core what Contractual about

sector. For pricing see modernizing from social the excellent the results we our to continued in quarter, model

price multiyear the X of and year, contract in of is are for program. X-year We majority is single-digit a vast high this there modernization that power The the a mid- and are also escalations embedded X years have in for recall term. renewals contracts. the being of to additional remarkable of term. continued to extend benefits year, contract now X-year This felt terms. just this Last business. There majority X were been And transformation

The quite security; retention reduces the this a area saw stickiness. All clients. giving composed up this rates. given work are good are process. and from their provides slightly And for impact and customers, customer aids And remaining predictability, happy are in growth and effort software higher price involved for improved. this with We're of volume second, degree contractual our renewal third, as K-XX program our at planning; revenue have school donation the value the increases or good have our connected generating. and well, the implementing increases like of in dramatically and X it that transactional nature work revenue eliminate our These in revenues and greater which it we've First, modest streams visibility is volume busy more of our consumer recurring, metrics it X/X subscriptions. result held of business to had create tuition of revenue although success processing, are quarter. good processing They internal

close progressing quarter, our environment. eye so on line $X.XXX performance progress year top initiatives the reiterating fourth pleased season revenue far, summary, giving are the X-point well, not In very revenue as against keeping very we plan. Therefore, witnessed additional during We're into by reflects we macro our any head of are impact the billion our XXXX a But and largest guidance the full of giving on we've the we're the $X.XXX to billion. quarter, year. which

Cost strength and to has no management exception. been quarter bottom. third let's Now the a was this the ours year, turn of

During in demonstrates or factor This you the the growth, of from business. approximately $XX quarter, of $XX performance When was X% million by a management. our we strength total P&L you during see which reduced accelerating the costs the quarter, revenue million scalability year the ago.

tight intention forward. going Our keep is on a cost hold to

security. investment adding company in However, our positions throughout we a and few will of increasing the also will the area be be

cost Our heavy revenue owing to and mix another should say some a continue processing to shift to results likely [ payments fluctuations, minor to cost ] the management modest giving safe increases fourth quarter. produce with in quarter-to-quarter

That's At the increase. currency, compared EBITDA third the in XX.X% million. for remain last $XX on last XX.X%. track EBITDA margin was XX.X%. full a year. our came guidance XX.X% over The year's period adjusted margin Our and to was million attain margin We EBITDA XX% a EBITDA at to improvement to adjusted $XX quarter year XX% of constant

be this lot satisfied within to report. a There's

with been north the for pleased us. XX. of surpassing most I'm star has This Rule However, a

quickly sights our suggested and we'd XX.X% launched this than plan. Obviously, then set made anticipated. goal at our as this against X we We we progress were on XX% in Just we year more ago, X-point goal XXXX. crossed that

a became had currency. at third Blackbaud of call. of earnings of Rule quarter company, and XX.X% improvement it's That's last with as earlier the we XX-point year, quarter, a last result quarter than than of even or XX This a constant from XX.X% more a quarter's expected

not lower costs comes There further we on working stop at could quarter's number some here from margins. to be as as naturally volume And the volatility this heavy and quarter-to-quarter payment make are said, certain will That fourth improvements. lumpy. are

continue achieve margins revenue year. full and to of expanding to to for Looking growing the Rule XX expect ahead XXXX, we

a had of We free adjusted also quarter very cash flow. good

cash this $XXX is The the of seasonally cash us to of production, on typically free the flow quarter year. $XXX increased to of puts million that million third flow full track exceed QX, quarter generated We in for million and our for $XXX year. strongest adjusted end held our high and true meet guidance or that

the previously payments, end expect of we announced still these settlement year the debt adjusted of with ended quarter Even million announced, Xx EBITDA. Colombia during the be to debt. of and we with We And net $XXX in the making goal approximately general fourth quarter $XX.X matter. XX aggregate will our at security District of previously of we to this to state payments as attorneys million

We expect board share be resume authorization. share on in cash Additionally, given our existing allocation guidance year our announce $XXX to giving million we We'll when our repurchases and XXXX. fourth repurchase strong our plans this results early flow, quarter capital longer-term under

sizable XX amount cost our Before continue have. to for and strong Blackbaud for represented let share a may me for lines XX.X%. cash planned, repurchases. maintain an free return plan. audience company and a on delivered vision to a dramatic growth call margin in positioning we open strong was the we flow, management, our adjusted was with a Rule please we for X-point up million XX%, and very point us adjusted XX% generated We questions deliver shareholders the to our expanded the EBITDA With balance summarize, revenue in from of quarter than as to questions, to sheet form sooner QX on operating or inflection open on adjusted Coupled capital drove and which progress continued of of the operator, EBITDA, that, we $XX improvement the any a become

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

Congrats quarter. on the

what I the as understand growth rate. the figure? Mike, kind visibility understand some have well off what the to of have XXXX. love for that you you the to So your the macro. just you And wanted even I'd laid And targets customer year. with of to confidence that also over out like conversations start in high that into gives course growth have single-digit I'd love been

I -- prepared customer this the Brian. Sure, Yes, remarks, there's in we've we there's year, lot because of had and have said my together we've a like had in events last interaction time a been bbcon months. -- other couple of kind of aggregated of

coming and the demos customer with a personally several product the called for I products market, We to a releases excitement couple Impact up and all and a initiatives products for around capabilities. very in brand-new all mean, and set Edge. of generative on press of product new big with last new for I lots weeks So put customers product of on of few AI together lot a positive. me the think had bbcon, interaction announcements, we folks, lot marketplace

customers. So lots of excitement from our

So think is all all, that I super in feedback positive.

rest and company. for For from growth was really question. Yes, we announced. me happy think the a with second the standpoint, the I that just quarter personally We're your of

grew total, for which is of think the reoccurring part awesome. which side, most organic is revenue, on X.X% the is XX% I quarter, exciting the the me, growth the for

We in is feel next place long-range forecast lot going a reoccurring do about a line given and -- quarter to the So growth quarter, that business QX we the mostly business. really put this internally related forward. initiatives good of top We year.

we and going excited confidence on going margin on as this forward. high XX of pretty and really viewpoint growth of the Rule that that the quarter And past have got we've QX hit outlook So well. forward

heard see be here, XX. to something is the think great Being you to innovation as lot there. innovation Rule of able the that It's of in we'll guys just I'd of understand out term? drive to innovation we'd too, what today, be you the about kind guys about love pickup in about bbcon that a something that out understand the than to you already doing love more driving Or further have we that's over think pricing going how announced? embedded the are long pricing to is you

Yes, sure.

that with basically, So contracts. in of pricing started is contracts the a to new platforms, it pricing. our existing the -- in continued conversion contracts those we've innovation in really X-year assume, it's customers Those new our cloud

And contracts. assumed so innovation is those this in new just

not new this will of -- pricing. some So have innovation is

things the like announced Edge Impact product. of is some However, a we brand-new

our the for their their will obviously, us. on other donations, So also organic payments drive revenue downstream the revenue to growth donation ability our some that. But impact the new new of which like from customers from creates forms innovation, in revenue platform

built transactions, addition existing pricing X-year in revenue from So doing our there's not in to driving products organic in in what growth we're to necessarily here new model. pricing conversion

Rob is Our from question with next Oliver Baird.

for and follow-up two, had you a I then for you. Mike, Tony, one

Is maybe help see as an well some us more the Just these really Mike, showcase job, other these, are you're switching I price it. about in use just people's economy. that. obviously, you from Blackbaud capabilities executing guys we discussions opportunity on additional for I'm to how thinking get about easy years. well I it's guys understand thinking X increases just price around be on some and people discussions. always into this a can nice are product with opportunity these contract this mean an how sometimes the to happen of negotiate software hands to curious to imagine increases X So you as companies, on cases?

Yes, sure.

is which of pricing customers for many retention spoke new X-year are about one's we move just the our no customers Denver good helped, the excited this I innovation higher and in great. customers And about to coming. have getting and thousands bbcon, pricing, but is So all excited thing on had to contracts numbers

innovation And higher right just rates. to And so pricing have I is the and of earning feel customers like the us our are seeing retention that. stream maintaining

customers sticky. They They about Our what's and of coming platforms from record. are systems nondiscretionary and loyal innovation are excited very standpoint. are an are

been it's So positive.

conversations We and a of staying have leaving their customers have coming. innovation see because the They're of some our impact not of great, because of business stream on aren't they products but are pricing. the

really been it's So positive.

started X you if program. And related I have program, into we ahead. months to good customers this insight we future notified the very talk Because when recall, about this to

this next next innovation very is we're So a to our right to like continue to with future earn right? not good customers. program now. year lot the that of So of into It's we improvements the the it drives. have revenue And this program happens insight serve week, into the

that. And they expect so

had So a it's Rob. and events customers other events, are us, program a excited we It's the seen extremely very they've my remarks. prepared gone at bunch well in and for of with bbcon super good what I mentioned other the

So it's really going well.

Great.

Tony, have the about think really about visibility follow-up contracts X-month renewal That's as -- How some mentioned just of Okay. given helpful. question, think contracts, for year. notice, up we half here I we And of then, high next a very a should notice. the mix Mike the

it more about throughout loaded? be there Any Is how that we even more should be it going help Is would So to year? think linearity? the going great. be to back-end

Rob. Yes,

the you that slide look renewals this the perspective. in So a We've from investor we got can biggest had materials year cohort at.

keep base and seasonality up those be contractual as next for and on contracts. to on pricing we'll recurring the got the year contracts. We've typical about new renewal, shift X-year to XX% mind the in is will be the think working I

with some those in year So years part QX early sold and certainly school the those we just as of a in the then when of late typically well. the and QX also lot years the in and quarters, the in

QX, So QX. of we'll unusual. That's have some lumpiness start not typical around for us. end of That's

of a line And contracts, on method uplift that. straight expect X-year you'd and that's those pricing on quickly very term. and over So contract that turns the most then the

revenue as long as can you on you that in think renewals up, get I spread the your right that model. pretty come cleanly when seasonality So

Lane Parker with Our Stifel. next question comes from

that had. guys and come of in Tony, perhaps Or early were communicating doing pricing starting XXXX of just these of response going cohort people at the early up any you proactive renewals. time customers, to know XXXX last the Maybe, year last potential in Is you ends? change pretty the pick on that? I getting to for that cohort renewals contract is for about think there that front to

comments, discussions Parker, we're you point with we're -- would advance be I it, Yes, renewing speaking pieces some in and already spoke the of were Certainly, in and this of largely already. from well, as working well through in already that all some some we're and think talking how that Mike's first the of prepared customers to about with far at December those have part larger through customers XXXX other parts. you advance, upsells

to those be, customers larger would anybody of we of some interest. course as who So speaking normal business, well an has as as

through now, got is we've December. renewed very the good. belt visibility right We've our under almost full So largely a because year

those pretty contracts. We couple here some to on late next we've even pretty where visibility that X-year which also. for up in early well, of of have working be this are, of holding -- finish really we'll little well some well From go those expected, and that customers this those year, in into holding before got of we'll be and than to then of some 'XX considering the this And second even renewals those chose tremendous the renewing year, months, up are we folks well rates shift visibility renewal working get already. sense a already some price on contracts, looking part as year as will those and chose X-year. who better over a good because rates renewal with is very And good increase of they're X-year

So very we positive. feel

add. Yes, I'll Parker,

close this X going this to We XX% the total year. it. we're about So of get We're year, with ahead. pretty months noticed to done much

notified, that's They when starts. customers next month. March wait in customers notifying till already don't the year. get And we're that conversation when So

to March we'll like February notice because getting and already about customers, if think we've talking been conversations. are March got already noticed those the So has start ones everyone and the now, and

So this sort is X which time, the is thing months whole of great. us really ahead of all

very visibility. we're with able future to good So manage it

the -- interesting. the then, Impact Mike, Got on Can very is Edge help with it. going color is Appreciate you us maybe thought to And that. I stick that primarily you. understand, to you're corporate be an vertical today? vehicle in the that Or that business potential release? net drive expansion to playing incremental new in through have that in interest that actually does

Yes.

So that product corporate their at There like Yes, is foundations able think lines nonprofits business, markets and demo. to measure impact the display in is popular but into starting companies, sort so large then But move -- to corporate was we impact XXXX the graphically it was well, our companies be off over and world. around in will see for our it to super of other announced waiting impact bbcon. of people Fortune of our it's to as group.

Kirk Materne next from question Evercore comes with ISI. Our

sort point are. And you it, not terms where have you think less you kind to I follow-up on in when you organic M&A to about you perhaps I you interest was wondering as just this balance, weren't, X always kind how do congrats rates more it's but curious, it of be years, organic? just sort realize different just a And a period I on of of nice little process sort quick I versus I of are. was forward. like thought ability focused quarter. time. go feel out you're given good talk acquisition the X a of about dependent for your on Then Mike, a if the rates of at in could that's Tony. just bit have innovation little know but about We're a bit on where curious thinking at

sure. Yes,

businesses we've are a year, startup made our of small small very, innovation our out one very those fairly which company. a equity in technology And well. partner We technology expansion pipeline. acquisitive a to acquisition investments made We a to is that's worked been interest as recently. So add last

now. our talked authorized we're to Our be expecting and that be capital focus of in it Generals. on about generals this been We focused debt the around the out has things to there X buyback year, -- paying attorney paying as with litigation remarks we to which some mentioned, such frankly, we're announced, out going end that, close already got by and related the mentioned year X closing down the doing by down back Tony program. million as debt, market the still were paying we've haven't the levered we at have, with that Attorney We've because Board closing our prepared the really in in $XXX to executed on that we and

opportunities organic long-term products more well. for per same. well. that are also some in customer good market. the still us still M&A, per announced of But So that, We've also thinking, strong there well. Edge still M&A if really Tony when insight Impact acquisition as growth strategy organic the and products capital Related that's go-forward that a about sort you a we're and Like is year, build we'll do And of active new to really capital guidance TAM expand out will. as on talk for mentioned next there allocation into we good customer, number the the for QX to expand view got but as the and year, there's will opportunities really in

That's quick Tony, helpful. a for one And just you. then

in just onetime Hawaii rate I and about quarter levels. this the seemed -- of guess? we like should You a meaningful? little But the how change. I the it of driven was better basis, sort around performance by benefits BBMS bit think was It activity of some the just on a Wildfire relief mentioned like curious seemed transactional largely of Were sort kind that seasonal those

viral was We the up, end us contributes. Yes, significant you've aware, you don't as Kirk, that obviously time. the are quarter, stuff think following I that long in been a

to lot the We a will times in We that to bit the of see at of on and side continued volatility good little on growth drivers overall meaningful that had have a front. the different material BBMS cause but transaction good traction of business numbers. -- revenue not

has also families schools up Management Tuition of year-on-year. is that Overall, we the support done The at number well. private

price JustGiving business the both also. have And donor BBMS components take well. the some and increases that's and then the business rates -- had have on We the some well has U.K. And well that U.K. has Complete done model in on in transaction Cover the things BBTM. then And really done cover done also YourCause

we the board in the So steady we across of kind last to see in couple similar of saw growth what years. transactions, very

that to double, be low that rate in to growth depending kind the continues quarter. single on So of high

next question comes VanVliet Matt [Operator Our with from BTIG. Instructions]

I guess momentum like to internally it you'd EVERFI from or gain strategic that you've to there. Anything side, some point done it strong a on the continues have traction seems either and perspective. just EVERFI perspective on the should success maybe And 'XX? staffing more into a that about heading from dissipation macro the side? how we or really headwind think But what's driving

the do bookings market lot a are and Yes. the overlap because our business customers there good. EVERFI same, in put types, the the shared YourCause are and say I'd the year the target that customers, with customers, is yes, looking the between business job pipeline not are have last we we up YourCause. Structurally, of year-over-year, and same, together similar buyers is

there's good a So cross-sell opportunity.

impact heads up a we've X had got that Davidson Tom that products. corporate So group now

companies. YourCause, solutions those are products and selling we're and The X EVERFI main to

year. new that's the within last So fairly

product we but new out called -- announced added name which a the It's Edge, and focused market we're of Impact year, be there a is as name Corporate coming is Impact we that we products actually we a for next just structure. because corporations, why well. change, didn't that built changed suite and will a have on we So

product leadership structure last a that's sales business. yes, So some pipeline in for say the new Impact pretty year in Edge, new summary. there, new I'd good and the that

impact in and have onetime than towards right. then, even look year-end question transactions. at as terms headwinds before, base transactions you're ensure Tony, looked and of going And busier any the Curious maybe into the on on continue seen late have whether giving to following on have customer early size All to quarter Very it's things or or impacts you at that Kirk's not the frequency kind a year, quarter it season any helpful. strong. the of will to nature of seasonal be of you you part potential up of How next that gives you fourth what or confidence the of sort that looking rather like-for-like there? of that fourth macro

bit of Yes. and and in the year-end average size really a pieces. quarter in that's little into Tuesday bit the donation the created coming we and related question saw giving QX that end those decline Matt, softness. all year, Last good a Giving of a of

and I and think the and that's impact and DAFs disposable stuff individuals, economy income corporations the giving foundations actually with for of are up.

that done well. has So volume

the down south things that. little volume size year last a not seen was up even We've in further was average transactions Overall at turn deterioration economy, bit when slightly. transaction with the any donation the

on it. eye we a keep So close

to until year. going far the up the that's thus we held we're at But of through to year, those point, well. have see for end hold the is volume get that assuming that, us. say Hard this what transaction to there at sizes and So pretty

And viral as X some and that with good Hawaii. through seen we events we quarters the spoke some first spoke giving transaction of we've good with about the volume

good. we're continuation years, of softer project. we couple that. But to any saw overall, not of further that hard prior expecting now, We've deterioration, So seen of we right is year's kind What what really but in with a hold feel slightly than to last pretty giving. the

that, transactions, nice we've use more students families, and of tuition growth and the Matt, the really, in in really school of more seen in that's strong. platform of of in year. as Yes. really the well platform other we're the as mix that more tuition is And And with kind part locked

next from Bank America. Our with Ikeda Koji of question comes

I one. just have

and slide through when I deck So the walk slight it change, we hoping and little on outlook I'm I XXXX this there could morning, noticed XXXX, looking through I was a was was bit. for the a and

and single-digit decks, to looking some high low single-digit says So high total recurring revenue used of double-digit the contractual the growth. And growth growth. to XXXX-plus on the revenue outlook, at now say past

you this guess, growth And in outlook maybe that was versus resulting could what's is earlier I quarter changed -- it the moderate this I a So in year. the this outlook. in XXXX-plus wondering consider moderation

year, a take guide kind at our X.X% think. It's still obviously, and not about maintained of we what maintaining can QX, of or outlook that. quarter the it because the X%, think sure. the you kind Yes, material I into midpoint, is really about change and if this which an guide -- because so I you gives we're for what thinking

in on haven't next because And significant is guide the quarters up start to quite and were year, to in quarter. we pretty the year about ramp growth a yet be and first line top so the results we the QX, not and slow really to year's going QX this which talked X a the

And what year. look so that's this the about above really, like all year can

like this floor to comments. Mike There closing at I turn are no would the to over further questions back Gianoni time. now for

for Great. us this joining Thank Thanks you. morning.

really Just third results the to during summarize, we delivered strong quarter.

for solid positive the we've made who the sharing successfully call. execute our our earnings to and of confident attainment, value work for quarter on of proud excited plan very success. grateful with the quarter significant continue our really the you. spirit Rule forward X-point XX and and our to fourth look Thank members hard progress organic for you continue we're with we're We with team and expense shareholders. I'm We management to more drive of and create the will future growth pleased and accelerating

conference. today's This concludes

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