Slide 1: Investor Presentation
INVESTOR PRESENTATION blackbaud your passion > our purpose
Slide 2: Mike Gianoni, President & Chief Executive Officer
MIKE GIANONI, PRESIDENT & CHIEF EXECUTIVE OFFICER 2.
Slide 3: Forward Looking Statement
FORWARD LOOKING STATEMENT Except for historical information, all of the statements, expectations, and assumptions contained in this presentation are forward-looking statements which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including, but not
Slide 4: Blackbaud (NASDAQ: BLKB): A Market-Leading Growth Company
BLACKBAUD (NASDAQ: BLKB) A MARKET-LEADING GROWTH COMPANY Market leader in an attractive vertical software market Unique advantage from 30+ years of building deep domain knowledge Well positioned to realize value from growth in online fundraising Broad suite of solutions benefits from transition to c
Slide 5: Nonprofits We Serve Have Unique Missions That Require Unique Focus
NONPROFITS WE SERVE HAVE UNIQUE MISSIONS THAT REQUIRE UNIQUE FOCUS Blackbaud has approximately 30,000 customers in over 60 countries, with a primary focus in six key geographies 5.
Slide 6: Nonprofit Organizations: Consistent Track Record of Long-Term Growth
NONPROFIT ORGANIZATIONS CONSISTENT TRACK RECORD OF LONG-TERM GROWTH Consistent, Solid Growth of Donations (Inflation adjusted $ in billions)1 4% CAGR $331B $316B $305B $293B $274B 2009 2010 2011 2012 2013 6. 1 2013 Giving USA Foundation
Slide 7: Nonprofit Organizations: Market Trends and Growth Drivers
NONPROFIT ORGANIZATIONS: MARKET TRENDS AND GROWTH DRIVERS • Cloud-based software is increasingly in demand as it effectively becomes “the MIGRATING TO THE CLOUD organization” (no IT, centralized office); BLKB is well-positioned to capitalize on the continuing shift in the marketplace SHIFT TO • Onli
Slide 8: Blackbaud Provides a Unique Array of Highly-Targeted Solutions
BLACKBAUD PROVIDES A UNIQUE ARRAY OF HIGHLY- TARGETED SOLUTIONS Ticketing management Event Student information management systems (K-12) Internet Data analysis and fundraising reporting tools Financial data and Tailored Online interactive donor integration SOFTWARE & SERVICES communities Payment Cam
Slide 9: Competitive Advantages in a Fragmented Industry
COMPETITIVE ADVANTAGES IN A FRAGMENTED INDUSTRY ~ 30,000 Customers Worldwide HORIZONTAL VERTICAL/NICHE APPS1 Vertically tailored, comprehensive suite of solutions for NPO X Domain knowledge in sales, services and products teams Product breadth/depth X X Domain expertise for all NPO verticals X
Slide 10: Continued Core Markets Growth of Subscription/Recurring Revenue
CONTINUED CORE MARKETS GROWTH OF SUBSCRIPTION/ RECURRING REVENUE Driving Momentum for the Future • Select geographic market expansion INTERNATIONAL • Grow key CRM and online offerings in current markets Target: 5.5 Million potential orgs • Leverage Everyday Hero to expand customer base • Drive penet
Slide 11: Significant 2014 Growth Priorities
SIGNIFICANT 2014 GROWTH PRIORITIES $17 MILLION OF INCREMENTAL INVESTMENTS IN 2014 TO DRIVE GROWTH Revenue Growth Product Optimization • Accelerated Growth/Product Integration • Continue to Simplify & Refine On-line, Payments, Analytics, Mobile • Drive Integrated Solutions • Core Markets Growth – MRR
Slide 12: Tony Boor, Chief Financial Officer
TONY BOOR, CHIEF FINANCIAL OFFICER 12.
Slide 13: Consistent Track Record of Revenue Growth
CONSISTENT TRACK RECORD OF REVENUE GROWTH Significant increase of organic growth rate is expected in 2014 $600 $542.5 M* 13% $503.8 M $500 CAGR Actual $400 $300 $200 $166.3 M $100 $0 2005 2006 2007 2008 2009 2010 2011 2012 2013 E2014 Maintenance Subscription Services, license, other 13. * 2014 Goal,
Slide 14: Fast Growing Recurring Revenue Stream
FAST GROWING RECURRING REVENUE STREAM Mix of Revenue Consistent, Solid Growth (2013 breakdown) (recurring revenue) $351.4 M 28% 18% MAINTENANCE CAGR 25% SERVICES $91.5 M 42% SUBSCRIPTION 3% Licenses 2% 2006 2007 2008 2009 2010 2011 2012 2013 Other 14.
Slide 15: Diversified Revenue Streams
DIVERSIFIED REVENUE STREAMS Revenue by Business Unit** INTERNATIONAL** 8% 47% 45% ENTERPRISE GENERAL CUSTOMERS MARKETS **Excludes Canada which is reported in GMBU and ECBU for 15. segment reporting purposes
Slide 16: Track Record of Generating Strong Non-GAAP Operating Income
TRACK RECORD OF GENERATING STRONG NON- GAAP OPERATING INCOME 9% $95.0 M* CAGR $46.1 M 2005 2006 2007 2008 2009 2010 2011 2012 2013 E2014 16. * 2014 Goal, at midpoint
Slide 17: 2013 Financial Highlights
2013 FINANCIAL HIGHLIGHTS 34% GROWTH 11.4% 35% GROWTH $101.3 M Total non-GAAP GROWTH $504.9 M $1.28 Non-GAAP Operating Income Earnings / Share TOTAL NON-GAAP REVENUE ($503.8 M GAAP Revenue) 56% $22.1 M Dividend Payments GROWTH $62.6 M Net Debt Reduction $107.2 M Cash Flow From Operations 17.
Slide 18: 2014 Operating Investments
2014 OPERATING INVESTMENTS (EXPECTED $) • Revenue Growth - $8 M Incremental 2014 Investment • Expand emerging and mid-markets sales force • Enhance enterprise-wide customer retention services • Product Optimization - $2.5 M Incremental 2014 Investment • New product launch - EDH • Increased Cloud/onl
Slide 19: First Quarter of 2014 – A Strong Start
FIRST QUARTER OF 2014 – A STRONG START TOTAL GAAP REVENUE • Increased by 10.4% to $127.6 Million Non-GAAP ORGANIC* REVENUE • Increased by 6.9% GROWTH RECURRING REVENUE • Increased to ~ 74% of Total Revenue GAAP DILUTED EPS • Increased by 33% CASH FLOW FROM OPERATIONS • Increased CFFO to $13.3 Millio
Slide 20: Financial Goals: Looking Ahead
LOOKING AHEAD ~ $100 M 2014 $535 – $550 M CASH FLOW NON-GAAP FROM REVENUE OPERATIONS* FINANCIAL GOALS $92 – $98 M $1.16 – $1.24 NON-GAAP EARNINGS OPERATING PER SHARE INCOME *with stable free cash flow compared to 2013 20.
Slide 21: BLKB Investment Considerations
BLKB INVESTMENT CONSIDERATIONS STRONG RECURRING MANAGEMENT REVENUE MODEL TEAM WITH PROVEN DRIVEN BY GROWING CLOUD OFFERING MARKET LEADER WITH TRACK RECORD Deep industry Represents over 70% of revenue for 2013 DIVERSIFIED GLOBAL knowledge and CUSTOMER BASE expertise with broad international exposure