Blackbaud, Inc. · NASDAQ:BLKB
Blackbaud — 34th Annual Investment Conference, Banc of America Securities 2004
15 slides from Blackbaud's conference presentation, Sep 22, 2004
Slide 1: 34th Annual Investment Conference, Banc of America Securities
34th Annual Investment Conference Banc of America Securities September 23, 2004 Robert J. Sywolski, CEO BAS Investment Conference
Slide 2: Forward Looking Statements and Financial Disclosures
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 achievements expressed or i
Slide 3: Blackbaud Overview and Highlights
Blackbaud Overview and Highlights Blackbaud is the leading global end-to-end provider of software and related services to the nonprofit market Our offerings help nonprofits Increase donations Improve communications with constituents Manage their finances and operate more efficiently The market leade
Slide 4: Nonprofit Market is Large and Growing
Giving Levels Line 9 Line 10 Line 11 Line 12 Line 13 Line 14 Line 15 Line 16 62 11.83 63 13.14 64 13.6 65 14.71 66 15.79 67 17.03 68 18.85 69 20.66 70 21.04 71 23.44 72 24.44 73 25.59 74 26.88 75 28.56 76 31.85 77 35.21 78 38.57 79 43.11 80 48.63 81 55.28 82 59.11 83 63.21 84 68.58 85 71.69 86 83.25
Slide 5: Nonprofits Face Unique Challenges
Nonprofits Face Unique Challenges Nonprofits are under pressure to improve performance and operate more like for profit businesses Raising more money and improving relationships with donors/constituents Managing finances with specific nonprofit requirements Improving operational efficiency Key Chall
Slide 6: Blackbaud Solutions Stack
Blackbaud Solutions Stack Professional Services tid Support R.Swoukl | Fage at
Slide 7: Proven and Successful Business Model
Proven and Successful Business Model Key Revenue Drivers Accounts for ~50% of total revenue Maintenance ~ 94% renewal rate Accounts for ~25% of revenue ~ 45% of existing customers buy additional products and services each year
Slide 8: Competitive Landscape
Competitive Landscape Internally developed solutions are the most common competition Small Mom and Pops (lifestyle companies) and divisions of larger orgs make up majority of vendor competition Blackbaud dominates Fundraising and leads all major application categories in non- profit sector Fundraisi
Slide 9: Why Blackbaud Wins
Why Blackbaud Wins Financial strength and scale Customers depend on Blackbaud stability and longevity Continual development of innovative solutions Customizable products and services that address specific nonprofit needs Integrated solutions We own the "backend" and provide fundraising, accounting,
Slide 10: Growth Strategy
Grow customer base Continued penetration of existing markets Expand in Enterprise and Federated organizations Expand existing relationships Leverage user base to cross-sell additional integrated products & services Base Growth Drivers Acquisitions - Geographic expansion in North America and ROW in o
Slide 11: Solid Revenue Growth
Solid Revenue Growth 94% maintenance renewal rate creates strong recurring revenue base Maintenance and subscriptions License fees Services $39 $47 $53 $58 $24 $19 $20 $21 $14 $19 $27 $34 $84 $90 $105 $118 2000 2001 2002 2003 12.2% CAGR Total Revenue ($ millions) Other
Slide 12: Consistent Growth in Profitability & Cash Flow
Line 1 Line 2 Line 3 Column 1 Column 2 Column 3 Column 4 Column 5 Column 6 Column 7 Column 8 Column 9 Column 10 Column 11 Column 12 Column 13 Column 14 Column 15 Column 16 1999 2000 0.23 19 2001 0.25 22 2002 0.28 29 2003 0.28 33 Margin PF Operating Income Note: Results exclude stock option compensat
Slide 13: Other Financial Highlights
Other Financial Highlights Cash flow generation (from operating and investing activities) ~$33M in 2003 and ~$15M in 1H 2004, up 43% vs 1H 2003 Paid off of $115M LBO debt in 4 years, 18 months early Liquidity and cash position $32M today and $30M committed line of credit Deferred tax benefit of $85M
Slide 14: 2Q Performance Review and Guidance
2Q Performance Review and Guidance (8/17) 2Q04 $7.3 $35.5 $25.1 71% $10.6 30% $0.14 YoY Change 29% 19% 17% License revenue Total revenue "Pro forma" gross profit % margin "Pro forma" operating income % margin "Pro forma" EPS ($ millions) Note: Results exclude stock option compensation expense & IPO
Slide 15: Uniquely Positioned Franchise
Uniquely Positioned Franchise The leader in the nonprofit space Nonprofit Expertise Focused on nonprofit organizations for over 24 years Continued development of innovative solutions targeting specific nonprofit needs Pricing Power Implemented maintenance price increase Services gross margins in exc
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