Blackbaud (BLKB) 13 Feb 242023 Q4 Earnings call transcript

Good day, and welcome to Blackbaud's Q4 Full-Year 2023 Earnings Call. Today's conference is being recorded. I'll now turn the conference over to Kevin Mooney. Please go ahead, sir.

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

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

Rule fourth on plan, X-point today's a before joining our Thank to second our last capital Blackbaud. quarter you, and to product today. turning a results by years our allocation substantial customer the producing the year, with concluded share comment a began XXXX, call wins X.X repurchase of Tony. The everyone, update through then few operating transformation offering Thank for which comments over of year call continued few an then implemented year-end like and Approximately our stock I'll plans conclude on on you, evolution, quarter in our and Kevin. our for I'd adjusted we perspectives put active ago, start I'm of a of that begin improving our pleased flow as our company to company financial today, to adjusted EBITDA In initiatives stock form modernized in of significant the our cash and program. on grew repurchase second revenue of report an enabled traction, gained performance. cost accelerated has rate and quarter, expenses trajectory clear growth ahead XX as Then third pricing achieved declined the plan. And drove quarter, expansion returning the the in to margin company's year-over-year. the we management free shareholders cash program substantially

the over modernized and been year the So growth of our entered revenue of modernized we the with organic multiyear exited exited year year with approximately only EBITDA performance. entered exited put quarters XX the year X%. we with over We And year organic has of We than our of the EBITDA you'll the year momentum contracts. with renewing I'm customers XX%. of the Rule XX%, XXXX, with with and a into of revenue a the year in pricing, XX% contract adjusted margins score of produced. transformational with fourth with multiyear Rule customers growth and entered year company. as That's transformational on under results eligible expect our the about with margins with opportunities XXXX a our today. the we we team year sector the on about fourth XX of year and continued less the pricing. We contracts, we the pleased XX, we quarter and with hear fourth X%, in none we year of opportunities entered the entered that contract exited I'm XX. of To quarter X/X on has of social score of perspective, renewing exited X quarter transformation on we excited for

flow year earnings adjusted million, of million, per XXXX, diluted For share $X,XXX XX%. free the million, full of a non-GAAP score adjusted of Rule and of of Blackbaud cash $XXX revenue of EBITDA $XXX $X.XX, XX produced

ranges XXXX. exceed these our of released his or All will are results of increased financial in greater performance guidance we meet and on in share comments. the Tony substantially measures QX XXXX's better than detail

Now turning to product.

more quarter, fourth value delivering innovation. our to to continued the product through we on focus customers During

funds events. as to as we mobile experience And for participation in-person all expanding Blackbaud's artificial Prospect well to while our availability part virtual our example, insights capabilities in in planned For Move for optimized as power intelligence considerably raising This fundraising strategy, the of increased continued early social with and with of an major It available and experience to quarter, for events. investment giving new users for gift native of more all These the guided new will soon enable fourth launch customers. Also enables Raiser's support based NXT Pro, in the of announced are Insights an coming generally intelligence, for be a capabilities. with U.S. TeamRaiser availability portfolio, Edge adopter the week, CRM products deliver for across and the announcement and good we participants application AI-driven Blackbaud's intuitive Good with in impact online program fundraising. true peer peer this of of our customers. testing for Blackbaud early integration streamlined

product our and on this quarter. and progress to So technology plenty utilizing operations, mission this last their the shown front. from Customers of innovation improve this by wins is their are further

and suite to capabilities, The their American goals fundraising better Blackbaud BBCRM by Western help to over as X living driven their very data unified singular Rockford our business focus to competitors and well strong large mission life example, Blackbaud's functions X with student territory sought and solutions. increase purchased consolidate information, experience solution, its School vendor the to organization the several selected the competitive Parkinson's CRM owing continue school direct Army and engagement. financial multiple Disease legacy as partner to Parkinson's a The student desire tuition consistent win parent, For teacher This solution. Illinois nonprofits. And disparate support optimize replaced and The total which includes of as the on decisions management. everyone in and enrollment, to live school is Association to it modernize chose management student for APDA improve and next to the fourth during comprehensive help Christian -- growth to inform includes years. a fundraising enhance over fullest. Also surpass manages Blackbaud plans systems our Salvation marketing from disease The will quarter,

the investing commitment program, financial to high On side collaboration of power of Corp serve and to financial their and communities across the giving next access by education. providing featuring generation programs kind financial its with corporate sponsoring impact first the a meaningful Investments aligned Fidelity's with the the in they to simulation, selected a EVERFI education globe. corporate to school business, volunteering expanded its News literacy new Fidelity YourCause And

continually we're So mission-critical impact customers that solutions value. greater have and involving we're to our to bringing in summation,

our value the the solutions contract recognize in adoption customers shown by contract Our of multiyear modernized as renewals increase of the our and pricing.

and XX, our market, is On I'd million transformation shares. growing approximately that actively program. important January in acquire repurchase like of to provide This year, our disclosed update an open development $XX investing we buying on to Now our on December an is generation. almost January in XXX,XXX the this in strong and and expanded stock predicated we're shares cash

Given good believe we in performance business see continued and for investment are shareholders. the in upside these our we strong a repurchases expected XXXX, the

also taken Board buy an authorization doubling our repurchases. an for stock we us strengthen That lot increased and and acquisitions of shareholder to business, priority our $XXX that will and extent create cash remain that At the the capital to previous we a that capital stock-based M&A to will We we annual continue. headroom also growth allocation, value, plan opportunistic have that are to a do future back we available authorization. our the from expect $XXX dilution gives million, deploy go-forward, investments compensation. Historically, Value-creating minimum, million approach enable announced to a repurchased to allocation so.

organically course, Of remain the making opportunities returning predict. excess while focused We inorganically, prudent such and to are on capital shareholders. investments both to business, hard grow to

year closed the what So was Blackbaud. for on an books outstanding

financials Let on over me and turn the details more who XXXX. Tony, why will Tony? share to the we're enthusiastic about call

fourth I'll XXXX significant turning our company results quarter delivering. briefly for and capital for all driving attending Thank a conclude Then comments you, Mike, what's and the today been before of our our start guidance improvement today. my thank year full 'XX, allocation financial with and our with cover the call discussion has the strategy. I'll to you financial

strong of of first Turning business. quarter X-point the the Results our quarter another our financial for results. improving having We demonstrate performance. is quarter had on and the to operating fourth were impact plan

continued giving gross expectation of were initiatives seasonally transactional at and Specifically, rates and from perspective. both dollar our were produce pricing renewal, price increases a range modernized within strong to the pricing revenues retention

$X recurring grew total revenues X.X%. onetime contractual drag result, and X.X%, declined a by about total As Nonstrategic revenue million and growth. represented grew transactional revenue revenues recurring of X-point on revenues grew recurring XX.X%

was million, closings, With to for an of head cost revenue quarter than taken to and center flow-through That's $XX quarter. to revenues renegotiation of actions rate. Cost million For $XX rate grew excellent reductions, $XX virtual million reached $XXX and environment, been focus. quarter, our data growth or which growth key organic leverage. consecutive The increased cost adjusted the all last a the year. of workforce has an total XX% count fourth million that reductions management was base EBITDA expense lower posting X.X%. of million vendor we've an by growth and That's $XX the contributed from

starting the initial of XX%, top profitability offered margin higher with was the cost-cutting quarter, of said margin, $X.XX financial the X percentage year XXXX, score so produced performance really across the met was and financial organic measures, exceeded or second distributed coupled quarter, when XX share in financials improving million. cost our line each reductions the all that points story was we up was all million in we on guidance last solid $XXX ranges improve meaningful Earnings EBITDA improvement with year. an year business revenues 'XX. the guidance, of A a Full metrics And year million between QX to dramatically true. We financial of to EBITDA XX.X% held for adjusted tell or in growth, full ago, and were per that almost successive million expect up Rule with I flow. of same evenly of of basis revenue much terms $XX and growth of and million. $XX cash Adjusted which of X.X% In performance. The $XX $X,XXX improved than quarter. XX%

cost last the through ability our cash up an shareholders of XXX,XXX came repurchase year, growing capital million flow power margin in last the enabled shares us to through strong per flow cash this at $XXX noted, while XX.X%. $X.XX free from as of almost plan. operating to free Adjusted Our increased And revenue to speaks adjusted return compared million, cash to flow to of Mike January. lower representing $X.XX Earnings share year. X-point $XXX to

to To our on capabilities invest what set driving continuation that in X-point We're continuing minutes to few guidance X.X with financial value. business. the a 'XX. years our the our table, ago continue started spend products a of improvement we plan, for operating across let's we delivering expect foresee customers our and Now

renewal modernized and terms is pricing approach closely. Our be to and established well contract managed will

basis growth $X,XXX a X.X%, to have last record to in from We drive cost XXX expand proven revenue. midpoint, with our of will X.X% million $X,XXX organic will of to revenue tight the business profitable management, an and growth million. cash the At track year, points. range and see increase generation. Starting revenue up We of maximize the

in to onetime slow stable guidance the a growth few last nonstrategic of Importantly, environment years a total rate X.XXX%. to relatively the we revenues exchange about to revenue foreign believe profitability. for compared We've drag purposes. Shifting organic in with 'XX decline assumed will

effective is same quarter-to-quarter count our And be hold timing of U.K. close $X.XX, maintain We in XX.X%, XXXX. making point levels will higher to a expected XX% to the a tax And investments there of in attrition in time, revenues. than rate our grow typically result, an product of used that quarters. of more business and current midpoint with $X.XX. XX.X% year, business XX of head of rate rate The factored rate. is the projection on margin the non-GAAP is EBITDA seasonality, first and increase combination tax X-point and adjusted a the than quarters of XX%. will in and we're between the $X.XX and tight the degree XX.X% in has income areas a second keep in outperforming be XX.X% business be at guiding at reflects range of midpoint guidance share to We a realizing well maps as third that to fluctuations increase annualized score corporate growth and cybersecurity. Accordingly, of profitability the we're a expected with to our a Rule hiring. the year-over-year. Also greater increase in innovation, as intelligence, artificial at expected a the road fourth Earnings costs full of recall for into costs as of slower and midpoint will per in better improvement with The margin with XXX-basis a higher result the from

flow a on have driving we adjusted shareholders. our and focus returning capital to free cash Additionally, sharp

free the points free XXX and this million XX.X% and in For to significant taxes additional cash million $XXX despite approximately investments of XXXX, and adjusted additional year, product cash cybersecurity. of basis a margin million. adjusted improvement expected $XX guiding The in flow million represents year, midpoint $XXX to a cash over $XXX we're flow

approximately the ever, certainly least, capital time a This but and reducing $XX we in in on to the thoughts EBITDA This last in first free million approximately flow. of than turned incident settlement time, allocation. while million adjusted to ratio shares our cash the repurchased past same at Our December, not debt us approximately Xx. quarter, more year, for to enabled $XX security few generated make $XXX payments, adjusted million

believes company cash flow the continue compensation. will from future, the dilution to anticipates share-based to Looking and grow adjusted free offsetting

allocate the highest repayment Beyond that, allocation conditions, The acquisitions, capital to dynamically availability use rate the M&A, company has help inform stock of repurchases will the to synergistic our additional including or market of decisions. performance of tremendous share our and optionality capital interest based debt. on its environment price

The revenue This against transformed our growth, Before expanded X-point fourth we open demonstrated the continued me accelerated that progress company lines operating quarter let for reduced the plan your summarize. year, has started profitability our costs, results. returning past questions, shareholders. financial and capital to

a trends, will have plan our those XXXX for value we that for enhancing will We that, expect line performance up open financial questions. continue continue can improve for we shareholders. With

with will [Operator now from Rob Baird. first Instructions] our Oliver question take We

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

thinking we was be optimization into sort get Mike, of I curious just guys, year as share So of your And enter you as top cross-sell, the of of to thoughts price the price you, motion we new sales? product knew know appears how if a other regime to on to line it you wins upsell, to X of half -- renewal relative for quite are for contribution could second you guys well. EVERFI. going things kind pricing, the new about cited you like this relative the some I

price? just for a addition want should new Just and for we sense a -- follow-up how And think to expansions about customers of kind to in should get then Tony.

got total. are question. XX% but as the year and Retention X-year program a year taking of through because live options. The kicked got grew year, the most last well. through for off the Thanks up about volume Rob. March last contract the are Sure, folks Yes. rates and the really while going went is It ago, we

moving company basically from go for X- contracts, historically X-year is which we're really great to the So retention forward.

this And and of the the we'll roughly of total coming at the second about we're in year year. about renew so more of end out XX% this XX% year, year the at

focused And pretty year program, couple Pipeline chose well. rights that's our strong. NFL what's investments to getting a remarks. Sales to going We know multiyear of if that. about I'd there. I is Playbook closed. rest it, to prepared year. lots might start products. interesting contracts a we bit softer on back but impact runs We we're I little clients' you closed pulling corporate from say a mentioned my a on really of that a I as little on than X-year bit because talked well, with clients the a had noticed the to you Character sign X our Super good. of Bowl see earning good that the a innovation bookings, we called the too. of The keep going in business. during run guess, sector, it's interest really So need inbounds lot new that ads But platform. there, the don't anybody the EVERFI don't the lot And on We fairly

So in year. the we midpoint growth a years our is X.X% at up then at And in, X.X% coming the all, And X.X% in good what, high last had end. highest of growth. year in to really a all guide X on organic

I for up well also. really 'XX we're think set

Great. Appreciate that.

EBITDA just on Tony, a then the And question margins.

was for priorities to continue what strong job this spend solid. do You a below but guys sources margin what of were 'XX, we going for year? do for as you really some a Just the on guys thought little you side. the It to bit are of still

perhaps are thoughts between sense spending what be spending to get on, that of guys wanted to our divergence that a what you might just for to that I where going relative or So kind and be?

dramatically. improved question. thanks for EBITDA Rob, have margins Yes, that

the great 'XX, for XXX, expecting which ended, the from is or year we peak. that manage business the to we our strong, the about seen, head year. count I think, down last we're did currently somewhere year where close we'll our high same finished we've As really

it, little same we of the some So bit with even thing the deal lower going driving you're is the in living we increases, bit costs talked little costs. Overall, on slower to with well that Mike than incremental running a which to cybersecurity-related merit growing business, headcount. The investments have side planning and revenue, R&D not of this us. that we're as on increase comments, count. expect a kind incremental key of of we'd on investment business it a incremental those in some got longer innovation as quite security, are to that focus alluded the as that in going couple still are for of biggest those with, year, we've prepared leverage forward Obviously, cost of But much things really investments, EBITDA we're have of seeing the kind about the head front a bit and term.

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

initiatives. pricing to XXXX on wanted should or exposure I XXXX. to? renewal how terms It that attack gone of that? And or pretty paying attention you the coming some So that think of the that customer you XX% anything have timing follow helps that's well. Obviously, we products then about lessons learned in up base in in base looks of should in for like we Any up be

Yes.

adjustments really a need We think lot last I learned didn't we though. make to year. many

now. June got better customers So just of we ahead, out think We we're almost X in communicating. year already months at I this notify right?

heads customers on rates down we the driving retention have X-year So to because to the go for we signing increase just continue have and are we innovation We've earn price right more feel got Most like contracts. saw contract. up. need a to our X-year

Tony really XX% of going We'll said, focused mentioned another starting year XX% we're -- year. last lot did of March. do that. But a base I on well. So the we We this in did is really innovation. program like just

last and this toward sort the of And June, so the year of get then to most of July quarter. we're fourth year's of are effect sort larger year's, then year because starting and full partial this of year volumes this effect year,

this year good next really going rates of uptick it that well. really So retention But It's to is to program. takes up see volume. a in program pick kind with increase on

multiyear follow-up on side. how changed and and good It pretty I'm the in mentioned net opportunities to you that's market? Rob's there kind you're maybe pricing question like are hear. the anything seeing net to strong. That's of there pipeline the competitively of the new curious, contract looking new sounds And the that a the out some on side? the is And

moved our that prices as We've And a We while. list Yes. the more units. comp well drive in there. pretty made in on done our plan some to products, tweak a a of we're sales faring well up haven't bit we

new So way we're that focused cross-sell. We markets in. in have in vertical and logo teams on we're that units. our That's still the focused

go new historically, a cross-sell they're they're -- and across just adding get the made market That new focusing to the but to we units hasn't like vertical existing to tweak So signed changed, plan by keep logos. assigned to or on board.

no So there. changes major

question next from line of comes with Parker Stifel. Our Lane the

relatively the you're What I efficiencies have started. look could head the if the was that this we of flow year drive lines other you to relative wondering stable cost there where know If different referenced the guide, I free a business. you Tony, business? at talk adjusted cash to EBITDA to it are and across of Yes. end opportunities going more count little your bit leverage at about in

side. digits. expect driving continue lot Thanks, It's more high see to I us and digits the single a when that we would single drive growth Parker. from leverage a on higher that question. the growing the scale just than easier That's top will to we're you're gain low good profitability rate in

year-on-year. lower eat of most other just that up that and merit improvement normal we growth increases and in You profitability see the

certainly it our business, leverage hold able to and in gain be to faster, count. scale grow and the we will be as easier So head

bit year, not leverage. be to quite we're going that's as are a investments seeing why this Our up much

was bit front nature. originally in of of a onetime things what kind the little Some accelerating cyber than that's investments planned. to some get quickly completed We're on more of the some

bit lot we're and the a putting an news releases, AI And money then into well. expense a front coming a lot of we've so good about few of little of a there's quite good that's innovation. talked bbcon, had chunk the year. And innovation on at a as into We press pulled

expect the seen little spend, generate than But we not would So year-on-year. much think a us leverage on I higher on to you'd bit year this think continue as hence be what we're in year business I additional leverage. of up going some forward, see to typically the -- would

that helpful. of Very the dynamics it. corporate particular the corporate space, in impact how into I pulling centered softer a Mike, on bit And the you've little you think of back. Can Got the about then, but do bit you little you the mentioned at now? see that got around a opportunity people market, was team deeper? necessarily And structure didn't right go feel

corporate Tom CEO up impact is for team sure. Yes, Davidson of us. that EVERFI. heads the He and founder

is to X And they market, there's because now few take so that opportunities with have which there. we other corporate products, combine they a products great cross-sell that

a market side. side than the team. The solid market. Blackbaud What's business for there's of is software cloud larger very substantially a contracts large it's historic So optionality that is the about interesting

partnership amazing. And Some partner to with ads heads a footprint. around put Fortune And XXX little we there's year of that we've our corporate a Responsibility. Fortune companies are that's They million customers. an year prospective a with a this Corporate over ARR which mentioned a many in and ago. Super is Social and be impact in of on Fortune several NFL hundred them X space, whole together customers they're founding amazing were run a that a and big contracts global market. platform decided companies because can on these XXX I got Bowl during with the the or focus presence have met started We I big built EVERFI, several

you far that EVERFI with EVERFI. if above its I enamored as punches presence. wasn't met a So definitely as haven't will, weight, customer

the Now is, a is spend. discretionary downside it

a of unbelievable that an And a programs so with and brand are the really solid lot But relationships. subject occasionally. interesting platform it's to

is just market about ESG there's those is things But the in an and institutions give look and I'll pulling invest like U.S., services that back. the The requires you government in So not at space, really company space. banking a example, to news -- you that. the lot CSR in the if programs in the financial --

as there's give lot regulation a they're requires platform. cases, EVERFI YourCause of that that a So choosing or a In back.

us. that's regulated financial we're great which the for So space is services. requirement, in biggest It is a that

So it's a space, solid global really big customers, team.

I think great opportunities. and mentioned, got News -- Corp remarks, we've my mentioned expansions. I prepared what larger in I recent X Fidelity

Very interesting. the quarter. Congrats it. Got on

you. Thank Yes.

Thanks Parker.

of next VanVliet comes Matt with from the Our line question BTIG.

benefit last on go-forward up the centers AWS offsetting long continuing and about in it reduction following gotten you've data we question, Maybe through that margins versus here much and more your impacting just on of roll of In think centers? the given data that term? those DCs there's here, future Tony. basis spending through contracts of to slide favorable down. Curious gross of how Azure sort deck, should is CapEx from as cost with X reinvesting true sort still How out calls most wind from a the you're operating,

Matt, that shut dropping off and moved Yes, has know, been substantially to the the cloud. down CapEx, same as is There as we've year. you centers the story continuation data this of

you As we're with relatively growing, going CapEx innovation. is earnings on spend the stable the Cap and saw be down. all is guide, release on the putting in software to that

money move down So still we'll spending centers. CapEx be buying property will up CapEx substantially. We're equipment, little to through But bit. data and see that itself, a

done and So move to prepare And because that's work the move cost some cloud migrate. the the cloud of there's environments data duplicative as costs of and still to being we've the we've got the got cost and existing out centers infrastructure. well to engineering to some the the products existing

I some certainly, within think then costs benefits So in the away of environments. the long do we'll still go cloud efficient cloud duplicative And incorporate cyber that over run, the front. the opportunities be more there's additional that you on when all

operating still big leases. improvements to we'll get for continue EVERFI so we're on got pretty that some some from and still a lease there. sublease to And We've out We under. working see the facility inherited

would got costs, away. still of some we So we which go those hope would

look of are of a few starting there to still kind we're as So opportunities movers. And business. use within a then lot at automation a of have of those the company. big AI We internally

next So will pursuing areas gain leverage the we that I'd I think that should just business, savings substantial, from growing the certainly And we drive cost scale. say, years. overall faster other have spoke make then some about we're still to again, fairly over easier as earlier, it few

we've the expect would seen at guide, profitability as some opportunity already side cash above nice we free guide, flow of you've going that tremendous. XX% at the we're the margin adjusted midpoint thing forward. is which got is up, And So on

I area is were And as because you would which see we've rates we've a I in $XX my XX% largely improve cash the that going -- line year. cash the last us comments there and that XX.X% incremental prepared last the from statutory at from about to in taxes bit think of XX% to U.K. XX%. range great expect a kind profitable profitability think XX% had of to down to in went that's up the rate And our up because only in XX.X%. XX% for that saw, and we and with business spoke I jumped the improving. The in that of our expectation improvement coming got book million to is about year just we're using tremendous. taxes. midpoint is taken our year, that this that's includes backwards XX% 'XX, we just And

then the a the rate we're getting have for year to full So we'll just closer U.S. those. And of statutory impact

I state, about is XX%, X%. think, Our is and roughly federal

And relatively fixed getting statutory because up rate largely our in as the our close well, is so are to so going credits fast. U.S. we're the and income

have flow So we'll a bit improved that for great. and free a cash little well, book rate in which taxes number as the on that's that's is hit into higher built cash tax cash

right like execution from ideas stand it's head do Or mentioned, the when looking like place you capacity count driving feel right. on Very growth? the to And helpful. there. productivity standpoint you business All at improving new current Mike, just a around versus guess, then do units, right about have sales feel emphasis and new you in of as of the Where I reps, trying and any performance? drive you you some you're team kind the

Yes.

the have up right the in of in too. the some in right so and place months X some place, lead We've teams. we leadership to think or hired I team outside our leaders last

So the quota don't in in significant do see increase head though, a person. We productivity we by see attainment count. opportunity, substantial or

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

Kirk. for strong I the on investments the of the Burkly Peter on of like 'XX. Tony, just in appreciate incremental Congrats is specifically terms color some AI. This areas in

expect to of curious those of you fairly linear? will how over a ramp terms margin year? the of on Just EBITDA of trying in be the investments the the investments. Or to shape Would year? sense over the those of the Just the you timing course the see course get

we beginning you, tell in bit, a ramp little I'd QX. Peter, Yes, although of investments will those accelerated some they

started the those include some have hiring said, think, actually because front. some new outside as into then year bit ramping. we on I solutions, we'll And are investments more I think they also do in of new cyber some the staff, see So we that those already a get That consultants.

So et new we'll be and solutions, online bringing cetera, software implementing.

hit the into get us more think a costs as will those we year. So little I

bit surge build an a expect of falling as a So as we across the to a will off and those some year. And then acceleration. get there's start that bit well of --

will So some well off year. those end drop and things the of the as as some to back of towards then put in we implemented start get place,

one Very quick as a you well. And for just maybe helpful. Mike,

some of thinking see of adding set, you're product an AI those to AI leverage the new stand-alone to as sort some do into offerings? included in would most of expect new you capabilities and Or create pricing this about you structure? Just be opportunity the

Yes. little It's both. Actually, a of Peter, bit it's both.

capability show just So some in of this will up products. new

we production one our was new capability production. first last instance, in AI announced year, a the platform, set JustGiving in already into For of

are that in week We for example. out Raiser's NXT more CRM other have coming new and rolling Edge like platforms this Altru, capabilities across and

new stand-alone will be Some capabilities.

like JustGiving the additive several the new just mentioned. donation will embedded have with we across and AI are then go one market are that So some And to that online products. I capabilities some

So it's a both. little bit of

of -- giving we're customers. the new we online add the our they like to that a it just of to will capabilities they with and/or have just of separately, forms, getting and more higher on of you amount to because donation if be Peter, the drive complete revenue type cover some giving I'd won't price And that just where a drive us efficiency model

be forms new with about before, As out. on the big a we've donation roll those spoken win-win they will as it things

Yes.

well. some our toward are So pointed rides which as our driving revenue, payment those system on of also capabilities customers'

So win-win. it's a

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

Thank 'XX you. for joining us you transformation for was substantial morning. To this summarize, year Thank of a Blackbaud.

financial delivered plan our performance. we met exceeded all quarters financial operating across of X-point Our guidance or sequential accelerating metrics. X ranges And

us We're the enabled quarter XXXX. everyone. prudent and we produced the making and continued excess to and shareholders. I'm proud returning to about organically focused capital results resume incredibly excited while investments business going to momentum generation expect of in has forward. team in Thank on cash strong fourth inorganically you, the Our grow stock the repurchases the

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