Q1 2025 Blackbaud Inc Earnings Call Transcript
Key Points
- Blackbaud Inc (BLKB) achieved a 5.8% organic revenue growth in Q1 2025, reaching $271 million.
- The company reported a non-GAAP adjusted EBITDA margin of 34.3% and a Rule of 40 score of 40.1%, indicating strong financial performance.
- Blackbaud Inc (BLKB) is transitioning its contractual revenue contracts to primarily three-year renewal terms, providing increased visibility and consistency.
- The company is investing in innovation, particularly in AI, to enhance customer operations and internal productivity.
- Blackbaud Inc (BLKB) repurchased approximately 4% of its outstanding shares in Q1 2025, demonstrating a strong commitment to shareholder value.
- Adjusted free cash flow was negative $11 million in Q1 2025, impacted by a one-time $28 million cash release payment.
- Increased interest expenses related to the share repurchase program negatively affected free cash flow.
- The company faces uncertainties related to federal grant funding, which could impact some of its customers.
- Q1 tends to be the lowest quarter for free cash flow generation due to timing of expenses and vendor payments.
- Blackbaud Inc (BLKB) has only two remaining private data centers, indicating a reliance on third-party cloud services.
Greetings and welcome to the Blackbaud's first-quarter 2025 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 first-quarter 2025 earnings call. Joining me on the call today will be Mike Gianoni, Blackbaud's CEO, President, and Vice Chairman; Tony Boor, Blackbaud's Executive Vice President and CFO; and Chad Anderson, Blackbaud's Chief Accounting Officer. Mike, Tony, and Chad will make prepared comments and then we will open up the line for your questions.
Please note that our 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
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