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

Business overview and growth strategy

• 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 98% recurring revenue.

• Organic growth was 5.5% last year, with EBITDA in the mid-30s percentage range.

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

Product innovation and AI initiatives

• Launched a new suite of AI products called Agents for Good, including a Development Agent for fundraising automation.

• Early adopters from K12, universities, healthcare, and nonprofits are already paying for the AI product, with contracts starting at $25,000–$35,000 per year.

• AI agents leverage proprietary data within the system of record, enhancing fundraising reach and efficiency.

• Partnership with Anthropic Claude and other AI vendors accelerates product development and internal automation.

• AI tools are used for code generation, bug remediation, and increasing engineering productivity.

Customer base, retention, and pricing

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

• High product stickiness; replacing the platform would require multiple vendors for core school operations.

• Most customers use only two products, presenting cross-sell opportunities for additional offerings.