Slide 1: Blackbaud Investor Presentation
Blackbaud Investor Presentation Ticker: BLKB April 30, 2025
Slide 2: Forward-looking Statements
Forward-looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements in this presentation consist of, among other th
Slide 3: Historical Financials and Non-GAAP Financial Measures
Historical Financials and Non-GAAP Financial Measures Use of Non-GAAP Financial Measures: The Company has provided in this presentation financial information that has not been prepared in accordance with GAAP. The Company uses these non-GAAP financial measures internally in analyzing its financial r
Slide 4: Blackbaud Investment Pillars
Blackbaud Investment Pillars Rich Market Innovation Driving Attractive Financial Purposeful Capital Opportunity Product Value Model Allocation • Global market leadership • AI empowering customers • 5 point operating plan • Programmatic share driving organizational focus repurchase • Significant a
Slide 5: Blackbaud At-a-Glance
Blackbaud At-a-Glance Clear market leader providing software that powers social impact Mission critical software built to 40+ $100B+ accelerate impact in fundraising, nonprofit financial management, years serving industry with donated, granted, and digital giving, grantmaking, corporate demonstrated
Slide 6: Business overview
Business overview
Slide 7: Blackbaud is the leading provider of software for powering social impact
Blackbaud is the leading provider of software for powering social impact We build, integrate and Using exclusive data, implement vertical-specific analytics and expertise, solutions purpose-built Cloud we deliver unparalleled for the unique needs of Software Data insight and intelligence to our cust
Slide 8: Our core competencies expand what is possible for purpose-driven organizations
Our core competencies expand what is possible for purpose-driven organizations Fundraising and Financial Grant and Award Organizational and Engagement Management Management Program Management Fundraising Fund Accounting Grantmaking Ticketing Peer-to-Peer Fundraising Financial Aid Management Award Ma
Slide 9: Most comprehensive solution set that accelerates impact
Most comprehensive solution set that accelerates impact Fundraising, Financial Organizational Relationship Payment Management, Corporate Social • Blackbaud is the leading provider of Management & Services Grant & Award & Program Management Responsibility Engagement Management software wholly dedicat
Slide 10: Fueling accelerated impact for our customers
Fueling accelerated impact for our customers $4.3B 300K $400K goal for the Campaign for Carolina meals packed by employees for raised through a virtual event exceeded a year early utilizing Rise Against Hunger using powered by JustGiving® from Blackbaud CRM YourCause® CSRconnect® Blackbaud® Peer-to-
Slide 11: Large and underpenetrated total addressable market $10B+
Large and underpenetrated total addressable market Financial Management, Grant and Award Management Revenue Penetration: <10% $1.5B Fundraising, Relationship $3.5B Management and Engagement Organizational and Program Revenue Penetration: <20% Management $1.5B Revenue Penetration: <10% $10B+ Blackbau
Slide 12: Track record of improving financial performance
Track record of improving financial performance Organic Revenue Growth Non-GAAP Gross Margin 61.5% 5.2% 4.8% 60.9% 59.0% 2.7% 58.4% 58.1% 1.6% 1.2% 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Non-GAAP Adjusted EBITDA Margin Rule of 40 38.9% 33.7% 37.0% 32.2% 26.5% 26.5% 27.7% 28.1% 27.5% 24.8%
Slide 13: Update on operational initiatives
Update on operational initiatives
Slide 14: Operating plan driving improved financial performance
Operating plan driving improved financial performance Product Bookings growth Transactional Modernized approach Keen attention Innovation and and acceleration revenue to pricing and multi- to cost delivery optimization and year customer management expansion contracts 14
Slide 15: Adding substantial value for customers through product delivery and innovation
Adding substantial value for customers through 1 product delivery and innovation Corporate Social bbcon 2024: UBIQ Strategic Impact Innovation 6 Waves of Innovation Investment At the YourCause® from Blackbaud® From groundbreaking fundraising AI tools Focus of the investment will be on Corporate Soci
Slide 16: Direct sales force focused on signing new logos as well as upsell and cross-sell
Direct sales force focused on signing new logos as 2 well as upsell and cross-sell opportunities Select recent sales wins 16
Slide 17: Initiatives across resilient and diverse transactional revenue streams
Initiatives across resilient and diverse transactional 3 revenue streams drive continued consistent growth Transactional recurring revenue streams1 Transactional recurring revenue growth 5% $333M $354M Event-Based $303M $259M $279M Usage 20% Tuition 2020 2021 2022 2023 2024 Processing 55% Donation •
Slide 18: Modernized renewal pricing provides better economics and visibility
Modernized renewal pricing provides better 4 economics and visibility Mix of contracts eligible for renewal RENEWAL APPROACH (since March 2023) rate increase by renewal year1 Renewal Term Primarily 3-year contract renewal terms Mid- to high-teens rate increase 2026 Rate Increase at Renewal 10% upon
Slide 19: Keen attention to cost management will contribute to ongoing margin expansion
Keen attention to cost management will contribute 5 to ongoing margin expansion Non-GAAP adjusted EBITDA margin Drivers of continued margin improvement: +170bps • Continue to manage cost structure to realize scale from expense base +150bps 35.4% • Gross margin improvement via continued platform mode
Slide 20: Financial Outlook
Ww - Financial Outlook ——_
Slide 21: Q1 2025 Performance
Q1 2025 Performance Revenue Year over Year Rule of 40 Year over Year1 +140bps +180bps $279.3 $14.8 $270.7 40.1% 40.2% 38.7% 38.4% ($23.4) 5.8% Organic Revenue Growth Q1 2024 Q1 2025 Q1 2024 Q1 2025 Less: Non-GAAP Q1 Plus: organic Q1 revenue from 2024 revenue increase 2025 divested businesses As Repo
Slide 22: 2025 total company guidance
2025 total company guidance Metric Mid-Point Revenue range implies organic growth Total Revenue $1,115M - $1,125M $1,120M at constant currency of 4.5% to 5.4% Midpoint of adjusted EBITDA margin Adjusted EBITDA Margin 34.9% - 35.9% 35.4% range implies a 170bps improvement over FY24 Diluted EPS growth
Slide 23: Rule of 45 by FY 2030
Rule of 45 by FY 2030 +600bps by FY2030 45% • Goal of achieving Rule of 45 by FY2030 through a combination of consistent +1,140bps in mid-single digit organic revenue past 2 years 39% growth and margin expansion 37% • Expect continued free cash flow margin expansion as improvements to Rule of 45 goa
Slide 24: Strong free cash flow generation to fund investments and disciplined capital allocation
Strong free cash flow generation to fund investments and disciplined capital allocation strategy Non-GAAP adjusted free cash flow1 2025 Adjusted FCF Impact $300 50.0% One-time cash release payment to the lessor 45.0% in connection with the release of our lease for $250 $245M Investments office space
Slide 25: Blackbaud intends to repurchase up to 5% of outstanding stock in 2025
Blackbaud intends to repurchase up to 5% of outstanding stock in 20251 54.0M 53.6M • Repurchased ~3% of common 18.0M 52.0M 51.6M 51.6M 50.9M stock outstanding in Q1 2025 and ~4% including net share 50.0M 49.2M settlement of employee stock 48.5M 13.0M comp 48.0M • In total, expect to repurchase 8.0M
Slide 26: Long-term capital allocation strategy focused on maximizing shareholder value
Long-term capital allocation strategy focused on maximizing shareholder value Stock Accretive Debt Repurchases M&A Repayment Up to 5% repurchase expected in 2025 Target acquisition opportunities with Manage debt balance to maintain under $800M authorization high synergy value and a focus on optimal
Slide 27: Blackbaud Investment Pillars
Blackbaud Investment Pillars Rich Market Innovation Driving Attractive Financial Purposeful Capital Opportunity Product Value Model Allocation • Global market leadership • AI empowering customers • 5 point operating plan • Programmatic share driving organizational focus repurchase • Significant a
Slide 28: Appendix
Appendix
Slide 29: Unaudited Historical Financial Information and Non-GAAP Financial Measures Being Presented
Unaudited Historical Financial Information and Non-GAAP Financial Measures Being Presented Reclassifications to the unaudited historical financial information In order to provide comparability between periods presented, our “recurring“ and “one-time services and other" revenue lines have been combin
Slide 30: Historical Reconciliations of GAAP and Non-GAAP Organic Revenue Growth
Historical Reconciliations of GAAP and Non-GAAP Organic Revenue Growth (Unaudited) (dollars in thousands) Three months ended Year ended Three months ended 03/31/2025 03/31/2024 12/31/2024 12/31/2024 09/30/2024 06/30/2024 03/31/2024 GAAP revenue $ 270,661 $ 279,250 $ 1,155,495 $ 302,232 $ 286,727 $ 2
Slide 31: Reconciliations of Non-GAAP Organic Revenue Growth and Rule of 40
Reconciliations of Non-GAAP Organic Revenue Growth and Rule of 40 (Unaudited) (dollars in thousands) Three months ended 03/31/2025 03/31/2024 GAAP net income $ 4,867 $ 5,246 Non-GAAP adjustments: Add: Interest, net 15,290 8,228 Add: GAAP income tax provision (benefit) 723 (1,456) Add: Depreciation 2
Slide 32: Reconciliation of GAAP to Non-GAAP Consolidated Statements of Operations
Reconciliation of GAAP to Non-GAAP Consolidated Statements of Operations (Unaudited) Three Months Ended March 31, 2025 Amortization of Stock-based intangibles from Acquisition and Non-GAAP compensation business disposition-related Security Incident- adjustments (in thousands, except per share amount
Slide 33: Reconciliation of GAAP to Non-GAAP Consolidated Statements of Operations
Reconciliation of GAAP to Non-GAAP Consolidated Statements of Operations (Unaudited) Three Months Ended March 31, 2024 Amortization of Stock-based intangibles from Acquisition and Non-GAAP compensation business disposition-related Security Incident- adjustments (in thousands, except per share amount
Slide 34: Historical Consolidated Balance Sheets
Historical Consolidated Balance Sheets (Unaudited) (in thousands) Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Assets Current assets: Cash and cash equivalents $ 26,376 $ 30,438 $ 34,633 $ 67,628 $ 37,243 Restricted cash 356,493 800,670 428,095 741,884 419,400 Accounts receivable, net of allowance 96,097
Slide 35: Historical Consolidated Statements of Comprehensive Income
Historical Consolidated Statements of Comprehensive Income (Unaudited) (in thousands, except share and per share amounts) Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Q1 2025 Revenue $ 279,250 $ 287,286 $ 286,727 $ 302,232 $ 1,155,495 $ 270,661 Cost of revenue 126,206 124,700 127,517 137,869 516,292 114,
Slide 36: Historical Consolidated Statements of Cash Flows
Historical Consolidated Statements of Cash Flows (Unaudited) 3 months ended 6 months ended 9 months ended 12 months ended 3 months ended (in thousands) 3/31/2024 6/30/2024 9/30/2024 12/31/2024 3/31/2025 Cash flows from operating activities Net income (loss) $ 5,246 $ 27,050 $ 47,592 $ (283,172) $ 4,
Slide 37: Historical Reconciliations of GAAP to Non-GAAP Financial Measures
Historical Reconciliations of GAAP to Non-GAAP Financial Measures (Unaudited) (in thousands, except share and per share amounts) Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024(1) Q1 2025 GAAP Revenue $ 279,250 $ 287,286 $ 286,727 $ 302,232 $ 1,155,495 $ 270,661 GAAP gross profit $ 153,044 $ 162,586 $ 159,2
Slide 38: Historical Reconciliations of GAAP to Non-GAAP Financial Measures
Historical Reconciliations of GAAP to Non-GAAP Financial Measures (Unaudited) 3 months ended 6 months ended 9 months ended 12 months ended 3 months ended (in thousands) 3/31/2024 6/30/2024 9/30/2024 12/31/2024 3/31/2025 GAAP net cash provided by operating activities 64,619 118,435 222,386 295,968 1,
Slide 39: Thank you
blackbaud Thank you