Blackbaud (BLKB) 47th Annual Raymond James Institutional Investor Conference summary

Business overview and growth profile

• Operates as a cloud software provider in K12 education, nonprofits, and foundations, with a focus on the social good sector.

• Achieved Rule of 40 status last year, with a multi-year target to reach Rule of 45 in the coming years.

• Revenue is about $1.2 billion, with 85% from North America and roughly one-third from transaction processing.

• Transitioned to 98% recurring revenue, growing 5.5% organically last year and mid-30s EBITDA.

• Total addressable market is estimated at $10 billion across multiple verticals and product lines.

Product innovation and AI initiatives

• Launched a new AI product suite called Agents for Good, including a Development Agent that automates fundraising.

• Early adopters from K12, universities, healthcare, and nonprofits are signing multi-year contracts for the AI agent.

• The Development Agent is priced at $25,000–$35,000 per year, with potential for thousands of customers.

• AI tools are integrated within the system of record, leveraging proprietary and enriched customer data.

• Partnerships with Anthropic, Microsoft, and others support AI-driven product development and engineering automation.

Customer base, retention, and pricing

• Customers are typically on three-year contracts with annual price increases, and over 20% are on four-year or longer terms.

• Retention remains strong despite pricing initiatives, with the product suite deeply embedded in customer operations.

• Schools using the platform would need to replace multiple systems if they switched providers.

• Most customers use two products, with significant cross-sell opportunities for additional offerings.