Q3 2024 Blackbaud Inc Earnings Call Transcript
Key Points
- Blackbaud Inc (BLKB) reported strong performance in its social sector, which accounts for approximately 89% of its revenue, with a growth of 6.6% year-over-year.
- The company announced six waves of innovation, including AI capabilities and new partnerships, which were well-received at their annual user conference, bbcon.
- Gross dollar retention rate improved to 90%, and excluding EVERFI, it was approximately 92%, indicating strong customer satisfaction and retention.
- Blackbaud Inc (BLKB) generated $98 million of adjusted free cash flow in the third quarter, supporting its aggressive stock repurchase program.
- The company has successfully repurchased approximately 8% of its common stock outstanding at the end of 2023, with plans to buy back up to 10% by year-end 2024.
- Blackbaud Inc (BLKB) lowered its annual revenue guidance due to the continued negative financial impact of EVERFI, which declined 26% year-over-year in the quarter.
- EVERFI, representing 7% of total company revenue, continues to be a drag on overall performance, prompting the company to explore strategic alternatives with Goldman Sachs.
- The company has not experienced any unusually large viral events this year, impacting the growth rate of its transactional business.
- Despite right-sizing efforts, EVERFI remains dilutive to Blackbaud Inc (BLKB)'s bottom line and cash flow.
- The revised full-year guidance reflects underperformance at EVERFI, with anticipated headwinds continuing in the near term.
Greetings, and welcome to the Blackbaud third quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Tom Barth, Head of Investor Relations. Thank you, sir. You may begin.
Good morning, everyone. Thank you for joining us on Blackbaud's third quarter 2024 earnings call. Joining me on the call today are Mike Gianoni, Blackbaud's Chief Executive Officer, President and Vice Chairman; and Tony Boor, Blackbaud's Executive Vice President and Chief Financial Officer. Mike and Tony will make prepared remarks, and then we will open up the line for your questions.
Please note that comments today contain forward-looking statements subject to risk and uncertainties that could cause actual results to differ materially from those projected. Please refer to our most recent Form 10-K and other SEC filings for more information on those risks.
The discussion today will focus on non-GAAP results.
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