Slide 1: Blackbaud Presentation
Blackbaud Presentation Bob Sywolski/Tim Williams
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains "forward-looking statements". These statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or
Slide 3: Company Overview
Company Overview Dominant global provider of software/services to the non profit sector Helping customers Increase donations Improve communications Optimize financial efficiency and compliance 25 Years of domain expertise and 13,000 customers Solid financial performance 2004 Rev - $139M + 18% (4yr C
Slide 4: Investment Highlights
Investment Highlights Multi-billion dollar market with consistent long-term growth trends Dominant market share driven by Industry leading core back-end systems critical mass of 13,000 customers and domain expertise Solid track record with new products Customer base supports strong back-to-base sale
Slide 5: Nonprofit Market is Large and Growing
Nonprofit Market is Large and Growing Over 1.5 million NPOs in the U.S. (360,000 addressable market) $241 billion annual contributions $600 billion in fees for services Over 1.5 million NPOs internationally Revenue for filing NPOs represents 11.6% of U.S. GDP Giving Levels Line 9 Line 10 Line 11 Lin
Slide 6: The Domestic Nonprofit Market Opportunity
$500K-$2.4M $100M+ $2.5M-$9.9M <$500K $10M-$99.9M Source: Company estimates Annual Revenue of Target Market $6.0 Billion Addressable Domestic Market # U.S. Orgs 2,165 20,076 43,086 209,639 85,190 Estimated revenue Opportunity for Blackbaud 2,000 Orgs @ $750K $1.5 BN 20,000 Orgs @ $75K 40,000 Orgs @
Slide 7: Nonprofits Face Unique Challenges
Raising more money and improving relationships with donors/constituents Managing finances with enhanced accountability and compliance Improving operational efficiency Nonprofits are under pressure to improve performance and operate more like for profit businesses Nonprofits Face Unique Challenges
Slide 8: Core Offerings Address these Challenges
Best-of-breed functionality ~ 86% of sales (2004 Bookings) - growing at 17% With tight integration between apps as differentiator - only vendor in the space to offer 'complete solution' Drives new customer growth and lays foundation for back-to-base sales > 3,000 customers > 9,000 customers ~ 750 cu
Slide 9: New Offerings with tight integration to core products
Online community / content management system with extensions to each major product line Prospect Analysis tools Ticketing Mgmt Web donor relationship and fundraising tool Data analysis tools Constituent Record Analysis Comprehensive ticketing solution which allows holistic view of patrons, visitors
Slide 10: Blackbaud product suite and user groups
INTERNET The Raiser's Edge(r) The Financial Edge(tm) The Information Edge(tm) The Education Edge(tm) The Patron Edge(tm) RE: Anywhere(tm) RE: NetSolutions(tm) Blackbaud NetCommunity(tm) WealthPoint Online(tm) Online Requisitions Mission Performance Web Publishing Patron Edge Online(tm) Faculty Acces
Slide 11: Blackbaud Solutions Stack
Blackbaud Solutions Stack WealthPoint™ este dentestion Professional e Professional Services: Services fo Sane | Pape att
Slide 12: Large and Diversified Customer Base
Healthcare Family / Human Services Schools K-12 Higher Education Religious Recreational / Social Cultural Large and Diversified Customer Base Large and Diversified Customer Base
Slide 13: Diversified Sales Channel Drives High Volume Strategy
Internet Tele- prospecting Conferences & Seminars Referrals Direct Mail 30 Lead Qualification Reps 40,000+ Leads Direct Sales (Mid-market) Key Account Sales Inside Sales (Installed Base) Channel Partners $25k ASP and Several Thousand Transactions per Quarter Diversified Sales Channel Drives High Vol
Slide 14: Why Blackbaud Wins
Why Blackbaud Wins Focus on nonprofit customer needs for 25 years and extensive professional services capabilities Nonprofit industry expertise Financial strength and scale End-to End, Integrated Suite Proven track record of reliability and customer service We own the "backend" and provide analytics
Slide 15: Market Leadership and Universal Brand Recognition
Market Leadership and Universal Brand Recognition Sources of Competition Internally developed solutions are the most common competition 3rd party competition comes from small, private vendors and divisions of larger orgs Blackbaud dominates Fundraising and leads all major application categories Fund
Slide 16: Attractive Business and Revenue Model
Predictability Recurring sources are 50% of rev Greater than 90% renewal rates 2004 - Maintenance 12% growth Subscription 82% growth Attractive Growth Software/Services are 50% of rev "Core" + "New Offerings" 2004 - Software 19% growth Services 25% growth Attractive Business and Revenue Model
Slide 17: Solid Revenue Growth
Mid-90's maintenance renewal rates creates strong recurring revenue base 13.4% CAGR Total Revenue ($ millions) Solid Revenue Growth
Slide 18: Consistent Growth in Profitability
Note: Results exclude stock option compensation expense, amortization of intangibles and IPO costs. $ millions Consistent Growth in Profitability 2001 2002 2003 2004 $40 29% $33 $29 28% $19 23% 2000 Margin Operating Income "Pro Forma" Operating Income 20.5% CAGR 29%
Slide 19: 2004 Performance
2004 Performance ($millions) Note: Results exclude stock option compensation expense, amortization of intangibles and IPO related costs. Q4 2004A $6.8 $35.7 $11.3 68% $9.9 28% $6.2 $0.13 YoY Growth 19% 17% 18% 17% 24% Full Yr 2004A $25.4 $138.7 $41.2 70% $40.0 29% $24.7 $0.54 License revenue Total r
Slide 20: Capital Management Program
Capital Management Program Announced February 1 Driven by strategy to maximize use of cash and returns for investors Dividend and share buyback $.20/share annual cash dividend; $.05/share paid February 28 to shareholders of record February 14 $35 million share buyback authorization effective Februar
Slide 21: Summary
Summary Multi-billion dollar market opportunity with consistent long-term growth trends Dominant market share position supported by critical mass and domain expertise Industry leader in core, back-end systems and track record of launching new products to drive growth Growing relationships with 13,00
Slide 22: Blackbaud Presentation
Blackbaud Presentation Bob Sywolski/Tim Williams