Blackbaud Inc (BLKB)BLKB

Blackbaud Inc. Stock Overview

Company Profile:

Detailed history and background:

Blackbaud, Inc. (BLKB) was founded in 1981 as MicroEdge by Tony Zeli and Philantro, Inc., a group that included James D. Clark and Daniel C. Warmenhoven. The company initially provided software for non-profit organizations to track donors. In 1989, the name was changed to Blackbaud, and the company went public on the NASDAQ in 1999.

Today, Blackbaud is a leading global provider of software and technology solutions for non-profits, higher education institutions, and foundations worldwide. The company offers a comprehensive suite of products and services that support fundraising, financial management, constituent relationship management (CRM), and marketing.

Description of the company's core business areas:

• Fundraising and CRM: Tools and services for managing donors and supporters, including online fundraising, mobile giving, and donor management.
• Financial management: Software for accounting, budgeting, reporting, and grant management.
• Education management: Solutions for student enrollment, admissions, financial aid, and alumni relations.

Overview of the company's leadership team and corporate structure:

• Mike Gianoni: President & CEO
• Donald Nelson: Chief Financial Officer
• Matt Yancey: Chief Technology Officer
• Katie Schibell: Chief Product Officer
• David Furstenberg: Chief Operating Officer

Blackbaud has a global presence with offices in North America, Europe, Asia Pacific, and Latin America. The company employs approximately 5,750 people worldwide.

Top Products and Market Share:

Identification and description of Blackbaud Inc.'s top products and offerings:

Blackbaud's top product offerings include:

• Raiser's Edge NXT: Cloud-based fundraising and CRM platform
• Blackbaud Financial Edge NXT: Cloud-based financial management software
• Blackbaud Education Edge: Cloud-based student information and enrollment management system

Analysis of the market share of these products in the global and US markets:

• Blackbaud holds the leading market share in the non-profit fundraising software market with approximately 30% market share in the United States.
• The Raiser's Edge platform is the most widely used fundraising software by non-profit organizations in North America.

Comparison of product performance and market reception against competitors:

Blackbaud's products are generally well-received by customers. The company receives high marks for the functionality and usability of its software, as well as for its customer support. However, Blackbaud also receives criticism for the high cost of its software and occasional technical issues.

Total Addressable Market:

The market for Blackbaud's products is large and growing. According to MarketResearch.com, the global market for non-profit fundraising software is expected to grow from $2.5 billion in 2022 to $3.6 billion by 2028.

Financial Performance:

Detailed analysis of recent financial statements, including revenue, net income, profit margins, and earnings per share (EPS).

Blackbaud's revenue in the fiscal year 2022 was $1.3 billion, with a net income of $126.4 million. The company's gross profit margin was 67.4%, and its operating profit margin was 17.4%.

Year-over-year financial performance comparison.

Blackbaud's revenue has grown at a compound annual growth rate (CAGR) of 9% over the past 5 years. The company's net income has also grown, but at a slower pace of 5% CAGR.

Examination of cash flow statements and balance sheet health.

Blackbaud has a strong financial position with $292.4 million in cash and cash equivalents as of the end of fiscal year 2022. The company also has a low level of debt, and its debt-to-equity ratio is 0.4.

Dividends and Shareholder Returns:

• Dividend History: Blackbaud has paid a dividend for the past 23 years. The current annual dividend is $1.00 per share, which yields a dividend yield of approximately 1%.
• Shareholder Returns: Blackbaud's stock price has outperformed the S&P 500 index over the past 1-year and 5-year periods. However, the stock has underperformed the S&P 500 over the past 10-year period.

Growth Trajectory:

Historical growth analysis over the past 5 to 10 years.

Blackbaud has experienced modest but consistent growth over the past 5 and 10 years. Revenue has grown at an average rate of 5% annually, while earnings have grown at an average rate of 4%.

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