Q2 2026 Blackbaud Inc Earnings Call Transcript
Key Points
- Blackbaud Inc (BLKB) achieved its planned revenue and financial targets for the quarter, pointing investors to the high end of its full-year financial guidance ranges.
- The company launched five new AI products this year, with AI enablement being central to its success, enhancing customer capabilities and operational efficiency.
- Approximately 90% of Blackbaud Inc (BLKB)'s contractual recurring revenue is on three-year or longer contracts, with 25% on four-year or longer contracts, indicating strong customer retention.
- The Development Agent, Blackbaud Inc (BLKB)'s first agentic AI offering, has shown compelling early results, including higher reply rates and larger average gift sizes.
- Blackbaud Inc (BLKB) continues to invest heavily in innovation, cybersecurity, and AI governance, addressing customer concerns and enhancing product offerings.
- The company's organic revenue growth moderated to 3% in Q2, reflecting the size and timing of certain renewal cohorts.
- Blackbaud Inc (BLKB) faces challenges with a larger renewal cohort in 2026, which may temporarily impact gross dollar retention rates.
- Transactional revenue can vary from quarter to quarter, and the company's guidance does not include assumptions for viral giving events.
- The introduction of a platform fee on certain online form transactions may impact customer perceptions, despite being a common industry practice.
- AI products are not expected to contribute significantly to revenue this year, indicating a longer timeline for monetization.
Good day, welcome to Blackbaud's second-quarter 2026 earnings conference call. Today's conference is being recorded. I'll now turn the conference over to Tom Barth, Head of Investor Relations. Please go ahead, sir.
Good morning, everyone. Thank you for joining us on Blackbaud's second-quarter 2026 earnings call. Joining me on the call today are Mike Gianoni, Blackbaud's Chief Executive Officer, President, and Vice Chairman, and Chad Anderson, Blackbaud's Executive Vice President and Chief Financial Officer.
Please note that our comments today contain forward-looking statements subject to risks 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. Today's discussion will focus on non-GAAP results. Please refer to our press release and investor materials posted to our website for full details on our financial performance, including GAAP results, full year guidance
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