Blackbaud Inc (BLKB) 2023 Q4 法說會逐字稿

Good day, and welcome to Blackbaud's Q4 Full-Year 2023 Earnings Call. Today's conference is being recorded. I'll now turn the conference over to Kevin Mooney. Please go ahead, sir.

美好的一天，歡迎參加 Blackbaud 的 2023 年第四季全年財報電話會議。今天的會議正在錄製中。我現在將會議交給凱文·穆尼。請繼續，先生。

Good morning, everyone. Thank you for joining us on Blackbaud's Fourth Quarter and Full-Year 2023 Earnings Call. Joining me on the call today are Mike Gianoni, Blackbaud's CEO, President and Vice Chairman; and Tony Boor, Blackbaud's Executive Vice President and CFO.

大家，早安。感謝您參加 Blackbaud 的 2023 年第四季和全年財報電話會議。今天和我一起參加電話會議的還有 Blackbaud 執行長、總裁兼副主席 Mike Gianoni；以及 Blackbaud 執行副總裁兼財務長 Tony Boor。

Mike and Tony will make prepared comments, and then we'll open up the line up for your questions. Please note that our comments today contain certain forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from those projected. Please refer to our most recent Form 10-K and other SEC filings for more information on those risks. The discussion today will focus on non-GAAP results.

麥克和托尼將提出準備好的評論，然後我們將開放回答您的問題的隊列。請注意，我們今天的評論包含某些前瞻性陳述，這些陳述存在風險和不確定性，可能導致實際結果與預測有重大差異。請參閱我們最新的 10-K 表格和其他 SEC 文件，以了解有關這些風險的更多資訊。今天的討論將重點放在非公認會計準則的績效。

Please refer to our press release and the investor materials posted to our website for the full details on our financial performance, including GAAP results as well as full year guidance. We believe that a combination of both GAAP and non-GAAP measures are more representative of how we internally measure our business. Unless otherwise specified, we will refer only to non-GAAP financial measures on this call. Please note that non-GAAP financial measures should not be considered in isolation from or as a substitute for GAAP measures.

請參閱我們的新聞稿和發佈在我們網站上的投資者材料，以了解我們財務業績的完整詳細信息，包括 GAAP 業績以及全年指導。我們認為，公認會計原則和非公認會計原則衡量標準的結合更能代表我們內部衡量業務的方式。除非另有說明，我們在本次電話會議中僅參考非公認會計準則財務指標。請注意，非 GAAP 財務指標不應孤立於 GAAP 指標之外，也不應被視為 GAAP 指標的替代品。

With that, I'll turn the call over to you, Mike.

這樣，我會把電話轉給你，麥克。

Thank you, Kevin. Thank you, everyone, for joining our call today. I'd like to start today's comments by offering a few perspectives on 2023, then I'll comment on our product evolution, share a few customer wins and then conclude with an update on our capital allocation and stock repurchase plans before turning the call over to Tony.

謝謝你，凱文。謝謝大家今天加入我們的電話會議。我想透過對 2023 年的一些觀點來開始今天的評論，然後我將評論我們的產品演變，分享一些客戶的勝利，最後在結束通話之前介紹我們的資本配置和股票回購計劃的最新情況托尼.

The fourth quarter concluded a year of substantial transformation for Blackbaud. Approximately 1.5 years ago, we implemented our 5-point operating plan, which began producing results in the second quarter of last year, continued through year-end and has put our company on a clear trajectory of improving financial performance. In the second quarter, our cost management initiatives drove significant adjusted EBITDA margin expansion as expenses declined year-over-year. Then in the third quarter, our revenue growth rate accelerated as our modernized pricing program gained traction, and we achieved the Rule of 40 ahead of plan.

第四季結束了 Blackbaud 重大轉型的一年。大約 1.5 年前，我們實施了 5 點營運計劃，該計劃於去年第二季度開始產生成果，一直持續到年底，使我們公司走上了改善財務業績的明確軌道。第二季度，隨著費用年減，我們的成本管理措施推動了調整後 EBITDA 利潤率的大幅擴張。然後在第三季度，隨著我們的現代化定價計劃獲得牽引力，我們的收入成長率加快，並且我們提前實現了 40 規則。

And today, I'm pleased to report that our company's adjusted free cash flow grew substantially and enabled the company to begin returning cash to shareholders in the form of an active stock repurchase program. So 2023 has been a transformational year for the company. To put that transformation into perspective, we entered the year in our social sector with only about 1/3 of opportunities renewing on multiyear contracts, and we exited the year with 3 quarters of opportunities renewing on multiyear contracts. We entered the year with none of our customers on our modernized contract pricing, and we exited the year with approximately 35% of our eligible customers on modernized contract pricing.

今天，我很高興地向大家報告，我們公司調整後的自由現金流大幅增長，並使公司能夠開始以主動股票回購計劃的形式向股東返還現金。因此，2023 年對該公司來說是轉型的一年。從這一轉變的角度來看，我們的社會部門進入這一年時，只有約 1/3 的機會續簽了多年期合同，而今年結束時，我們有 3 個季度的機會續簽了多年期合約。當我們進入這一年時，沒有任何客戶採用現代化合約定價，而今年結束時，大約 35% 的合格客戶採用現代化合約定價。

We entered the year with organic revenue growth of less than 1%, and we exited the year with fourth quarter organic revenue growth of over 7%. We entered the year with EBITDA margins of under 25%, and we exited the year with fourth quarter adjusted EBITDA margins of over 33%. And we entered the year with a Rule of 40 score of 25, and we exited the year with a fourth quarter Rule of 40 score of 41. That's transformational performance. I'm pleased with the results the team has produced. I'm excited about the continued momentum we expect in 2024, as you'll hear today.

我們進入這一年時，有機收入成長率低於 1%，而今年結束時，第四季有機收入成長率超過 7%。今年伊始，我們的 EBITDA 利潤率低於 25%，而今年結束時，第四季調整後的 EBITDA 利潤率超過 33%。我們以 25 分的 40 規則進入這一年，並以 41 分的第四季度 40 規則得分結束這一年。這就是變革性的表現。我對團隊的成果感到滿意。正如您今天將聽到的那樣，我對 2024 年預計的持續發展勢頭感到興奮。

For the full year 2023, Blackbaud produced revenue of $1,105 million, adjusted EBITDA of $356 million, non-GAAP diluted earnings per share of $3.98, adjusted free cash flow of $214 million, and a Rule of 40 score of 37%. All of these measures are substantially better than 2022's performance and meet or exceed the increased guidance ranges we released in Q1 of 2023. Tony will share greater detail on our financial results in his comments.

2023 年全年，Blackbaud 的營收為 11.05 億美元，調整後 EBITDA 為 3.56 億美元，非 GAAP 攤薄每股收益為 3.98 美元，調整後自由現金流為 2.14 億美元，40 規則得分為 37%。所有這些指標均遠好於 2022 年的業績，並達到或超過我們在 2023 年第一季度發布的提高的指導範圍。托尼將在評論中分享有關我們財務業績的更多詳細信息。

Now turning to product. During the fourth quarter, we continued to focus on delivering more value to our customers through product innovation. For example, we increased the power of social impact based fundraising with the announcement of an early adopter program for new optimized online giving capabilities. These new capabilities enable native integration with products across Blackbaud's portfolio, and in early testing are raising considerably more funds for our customers. It will be generally available for U.S. Raiser's Edge NXT users this week, with availability coming soon for Blackbaud CRM and all true customers.

現在轉向產品。第四季度，我們繼續專注於透過產品創新為客戶提供更多價值。例如，我們宣布了一項針對新的優化線上捐款功能的早期採用者計劃，從而增強了基於社會影響的籌款力量。這些新功能可與 Blackbaud 產品組合中的產品進行本機集成，並且在早期測試中為我們的客戶籌集了更多資金。它將於本周向美國 Raiser's Edge NXT 用戶全面開放，Blackbaud CRM 和所有真正的客戶也將很快推出。

Also in the fourth quarter, we announced the availability of our Good Move mobile application for all TeamRaiser and peer to peer events. This enables a streamlined experience for participants while expanding participation to virtual as well as in-person events. And as part of Blackbaud's intelligence for good strategy, our investment in artificial intelligence, continued with the launch of Prospect Insights Pro, an intuitive guided experience to deliver AI-driven insights in support of planned and major gift fundraising.

同樣在第四季度，我們宣佈為所有 TeamRaiser 和點對點活動推出 Good Move 行動應用程式。這為參與者提供了簡化的體驗，同時將參與範圍擴大到虛擬和現場活動。作為 Blackbaud 智慧實現良好策略的一部分，我們繼續對人工智慧進行投資，推出了 Prospect Insights Pro，這是一種直觀的引導體驗，可提供人工智慧驅動的見解，以支持計劃中的重大禮品籌款。

So plenty of progress on the product innovation front. Customers are utilizing this technology to further their mission and improve their operations, and this is shown by our wins from this last quarter. For example, American Parkinson's Disease Association selected Blackbaud to consolidate its direct marketing and CRM functions from multiple vendor solutions. The Blackbaud unified solution, which includes partner capabilities, will help APDA continue to surpass their fundraising goals and support their mission to help everyone living with Parkinson's disease to live life to the fullest.

產品創新方面取得了很大進展。客戶正在利用這項技術來推進他們的使命並改善他們的運營，我們上個季度的勝利證明了這一點。例如，美國帕金森氏症協會選擇 Blackbaud 來整合來自多個供應商解決方案的直接行銷和 CRM 功能。 Blackbaud 統一解決方案包括合作夥伴的能力，將幫助 APDA 繼續超越其籌款目標，並支持其使命，幫助每個帕金森氏症患者過著充實的生活。

Also during the fourth quarter, The Salvation Army Western territory sought to modernize and improve -- manages consistent data to increase fundraising and enhance engagement. The organization chose Blackbaud's BBCRM over 2 very large competitors owing to our singular focus on nonprofits.

同樣在第四季度，救世軍西部地區尋求現代化和改進——管理一致的數據，以增加籌款和加強參與。由於我們對非營利組織的獨特關注，該組織在 2 個大型競爭對手中選擇了 Blackbaud 的 BBCRM。

And the Rockford Christian School in Illinois purchased our total school solution. The school is driven by a strong desire to better inform business decisions as well as optimize the parent, student and teacher experience as it plans for growth over the next 5 years. This competitive win replaced several disparate legacy systems and includes a comprehensive suite of student enrollment, student information, tuition management and financial management.

伊利諾伊州的羅克福德基督教學校購買了我們的整體學校解決方案。學校的強烈願望是更好地為商業決策提供訊息，並優化家長、學生和教師的體驗，並計劃在未來 5 年內實現發展。這場競賽勝利取代了多個不同的遺留系統，包括一整套學生註冊、學生資訊、學費管理和財務管理。

On the corporate impact side of the business, News Corp selected YourCause to power their corporate giving and volunteering programs in the communities they serve across the globe. And Fidelity Investments expanded its collaboration with EVERFI by sponsoring a new high school financial education program, featuring a first of its kind investing simulation, aligned to Fidelity's commitment to financial literacy and providing the next generation with access to meaningful financial education.

在業務的企業影響力方面，新聞集團選擇 YourCause 來支持他們在全球服務的社區中的企業捐贈和志願服務計畫。富達投資擴大了與 EVERFI 的合作，贊助了一個新的高中金融教育項目，該項目首次推出此類投資模擬，符合富達對金融知識的承諾，並為下一代提供有意義的金融教育。

So in summation, we're bringing mission-critical solutions to our customers that we're continually involving to have greater impact and value. Our customers recognize the value of our solutions as shown by the increase in multiyear contract renewals and the adoption of our modernized contract pricing.

總而言之，我們正在為客戶提供關鍵任務解決方案，我們不斷參與其中，以產生更大的影響和價值。我們的客戶認識到我們解決方案的價值，多年合約續約的增加和現代化合約定價的採用就表明了這一點。

Now I'd like to provide an update on our expanded stock repurchase program. This is an important development in our transformation and is predicated on our strong and growing cash generation. On January 22, we disclosed that in December and January of this year, we're actively buying shares in the open market, investing approximately $41 million to acquire almost 500,000 shares. Given the upside we see in the business and continued strong performance expected in 2024, we believe these repurchases are a good investment for our shareholders.

現在我想提供有關我們擴大股票回購計劃的最新資訊。這是我們轉型過程中的重要進展，並以我們強勁且不斷成長的現金產生能力為基礎。 1月22日，我們揭露，在12月和今年1月，我們正在公開市場上積極購買股票，投資約4,100萬美元購買了近50萬股股票。鑑於我們看到的業務優勢以及預計 2024 年將持續強勁的業績，我們相信這些回購對我們的股東來說是一項很好的投資。

We also announced that our Board increased our go-forward, repurchased authorization to $500 million, doubling the previous $250 million authorization. That gives us a lot of headroom for future stock repurchases. At a minimum, we plan to buy back the dilution from an annual stock-based compensation.

我們也宣布，董事會將前瞻性回購授權增加至 5 億美元，是先前 2.5 億美元授權的兩倍。這為我們未來的股票回購提供了很大的空間。至少，我們計劃用年度股票薪酬回購稀釋股權。

Historically, we have taken an opportunistic approach to capital allocation, and we expect that to continue. Value-creating M&A will also remain a capital allocation priority to the extent that investments and acquisitions are available that strengthen our business, enable growth and create shareholder value, we will deploy cash to do so. Of course, such opportunities are hard to predict. We remain focused on making prudent investments to grow the business, both organically and inorganically, while returning excess capital to shareholders.

從歷史上看，我們一直採取機會主義的資本配置方式，我們預計這種情況將繼續下去。如果投資和收購能夠增強我們的業務、實現成長並創造股東價值，創造價值的併購也將仍然是資本配置的優先事項，我們將為此部署現金。當然，這樣的機會很難預測。我們仍專注於進行審慎投資，以有機和無機方式發展業務，同時將多餘的資本回饋給股東。

So the books closed on what was an outstanding year for Blackbaud. Let me turn the call over to Tony, who will share more details on the financials and why we're enthusiastic about 2024. Tony?

至此，這本書結束了對布萊克鮑來說是傑出的一年。讓我將電話轉給托尼，他將分享有關財務狀況的更多詳細信息以及我們為何對 2024 年充滿熱情。托尼？

Thank you, Mike, and thank you all for attending our call today. I'll start my comments today with our fourth quarter financial results and what's driving the significant improvement the company has been delivering. Then I'll briefly cover the full year 2023 before turning to our financial guidance for '24, and conclude with a discussion of our capital allocation strategy.

謝謝麥克，也謝謝大家今天參加我們的電話會議。我今天將從第四季度的財務業績以及推動公司實現重大改進的因素開始發表評論。然後，我將簡要介紹 2023 年全年，然後再轉向 24 年的財務指引，最後討論我們的資本配置策略。

Turning first to our fourth quarter financial results. We had another quarter of improving performance. Results for the quarter were strong and demonstrate the impact of our 5-point operating plan is having on the business. Specifically, our modernized pricing initiatives continued to produce price increases at renewal, gross dollar retention rates were within the range of expectation and transactional revenues were seasonally strong from both a giving and pricing perspective.

首先來看我們第四季的財務業績。我們的業績又取得了一個季度的提升。本季的業績強勁，證明了我們的 5 點營運計劃對業務的影響。具體來說，我們的現代化定價措施繼續在續約時帶來價格上漲，總美元保留率在預期範圍內，並且從捐贈和定價角度來看，交易收入季節性強勁。

As a result, contractual recurring revenues grew 6.4%, transactional recurring revenues grew 12.5% and total recurring revenue grew 8.4%. Nonstrategic onetime revenues declined by $2 million and represented about 1-point of drag on total revenue growth.

結果，合約經常性收入成長了 6.4%，交易性經常性收入成長了 12.5%，總經常性收入成長了 8.4%。非策略性一次性收入下降了 200 萬美元，對總收入成長造成約 1 個百分點的拖累。

For the quarter, total revenues reached $295 million, which was an organic growth rate of 7.4%. That's the fourth consecutive quarter of posting an increased growth rate.

該季度總營收達到 2.95 億美元，有機成長率為 7.4%。這是連續第四個季度實現成長率成長。

Cost management has been a key focus. The cost actions we've taken from head count reductions to data center closings, vendor renegotiation and virtual workforce environment, all contributed to an expense base that was lower than last year. With $20 million of revenue growth and $11 million of cost reductions, our adjusted EBITDA grew by $31 million or 46% to $99 million for the quarter. That's excellent flow-through and leverage.

成本管理一直是重點的焦點。我們採取的成本行動，從裁員到關閉資料中心、供應商重新談判和虛擬勞動力環境，所有這些都導致​​費用基礎低於去年。由於營收成長了 2,000 萬美元，成本減少了 1,100 萬美元，調整後的 EBITDA 成長了 3,100 萬美元，即 46%，達到 9,900 萬美元。這是極好的流通量和槓桿作用。

In terms of the margin, the adjusted EBITDA margin of 33.6% was almost 9 percentage points higher than Q4 of last year. Earnings per share was $1.14 in the quarter, and the business produced a Rule of 40 score of 41%, so really solid performance.

利潤率方面，調整後 EBITDA 利潤率為 33.6%，比去年第四季高出近 9 個百分點。該季度每股收益為 1.14 美元，該業務的 40 規則得分為 41%，表現非常穩健。

The full year financials tell much the same story of improving top line growth, coupled with cost-cutting measures, which dramatically improved profitability and cash flow. A year ago, when we offered initial financial guidance, I said that in 2023, we expect financial performance to improve with each successive quarter, starting with meaningful improvement in the second quarter. And that all held true.

全年財務數據講述了大致相同的故事，即改善收入成長，加上削減成本的措施，從而顯著提高了盈利能力和現金流。一年前，當我們提供初步財務指導時，我曾說過，到 2023 年，我們預計財務表現將連續每個季度有所改善，從第二季度開始出現有意義的改善。這一切都是真的。

We met or exceeded our financial guidance ranges across all metrics for '23. Full year revenues were up 4.8% on an organic basis to $1,105 million. Adjusted EBITDA of $356 million was up $94 million or 36% and was evenly distributed between revenue growth of $47 million and cost reductions of $47 million.

我們達到或超過了 23 年所有指標的財務指引範圍。全年營收有機成長 4.8%，達到 11.05 億美元。調整後 EBITDA 為 3.56 億美元，成長了 9,400 萬美元，即 36%，平均分配在營收成長 4,700 萬美元和成本削減 4,700 萬美元之間。

Our ability to lower cost while growing revenue speaks to the power of our 5-point operating plan. Earnings per share increased to $3.98 compared to $2.69 last year. Adjusted free cash flow came in at $214 million, up from $154 million last year, representing an adjusted free cash flow margin of 19.3%. And as Mike noted, this strong cash flow enabled us to return capital to shareholders through the repurchase of almost 500,000 shares through January.

我們在增加收入的同時降低成本的能力證明了我們 5 點營運計劃的力量。每股收益從去年的 2.69 美元增至 3.98 美元。調整後自由現金流為 2.14 億美元，高於去年的 1.54 億美元，調整後自由現金流為 19.3%。正如麥克所指出的，這種強勁的現金流使我們能夠透過在一月份回購近 50 萬股股票來向股東返還資本。

Now let's spend a few minutes on our financial guidance for '24. To set the table, we foresee a continuation of what we started 1.5 years ago with our 5-point operating plan, driving improvement across the business. We're continuing to invest in our products and expect to continue delivering capabilities that our customers value. Our modernized approach to renewal pricing and contract terms is well established and will be managed closely.

現在讓我們花幾分鐘討論一下 24 世紀的財務指引。為了奠定基礎，我們預計將延續 1.5 年前開始的 5 點營運計劃，推動整個業務的改進。我們將繼續投資我們的產品，並期望繼續提供客戶重視的功能。我們的現代化續約定價和合約條款方法已經完善，並將密切管理。

We have a proven track record of tight cost management, and will drive the business to maximize profitable growth and cash generation.

我們在嚴格的成本管理方面擁有良好的記錄，並將推動業務實現利潤成長和現金產生最大化。

Starting with revenue. We see revenue in the range of $1,170 million to $1,200 million. At the midpoint, our organic revenue growth will expand to 7.2%, up from 4.8% last year, an increase of 240 basis points.

從收入開始。我們預計營收在 11.7 億美元至 12 億美元之間。中期來看，我們的有機收入成長將從去年的 4.8% 擴大至 7.2%，成長 240 個基點。

Importantly, we believe the decline in nonstrategic onetime revenues will slow in '24 compared to the last few years with a drag to total organic revenue growth of about 0.005%. We've assumed a relatively stable foreign exchange rate environment for guidance purposes.

重要的是，我們認為與過去幾年相比，非策略性一次性收入的下降將在 24 年放緩，拖累總有機收入成長約 0.005%。出於指導目的，我們假設了相對穩定的匯率環境。

Shifting to profitability. We will keep tight hold on costs and maintain head count close to our current levels realizing there will be quarter-to-quarter fluctuations with the timing of attrition and hiring. And at the same time, we're making investments in the business in areas of innovation, artificial intelligence, product road maps and cybersecurity.

轉向盈利。我們將嚴格控製成本，並將員工數量維持在接近當前水平，因為我們意識到隨著裁員和招聘的時間會出現季度與季度之間的波動。同時，我們正在創新、人工智慧、產品路線圖和網路安全等領域進行業務投資。

Accordingly, we're guiding that costs will grow at a slower rate than revenues. And as a result, adjusted EBITDA margin is expected to be in the range of 32.5% to 33.5% with a midpoint of 33%. The combination of higher growth and better margin is expected to result in a Rule of 40 score of 40.2% at the midpoint of guidance for the full year, a more than 3-point improvement year-over-year.

因此，我們預期成本成長速度將低於收入成長速度。因此，調整後的 EBITDA 利潤率預計在 32.5% 至 33.5% 之間，中位數為 33%。更高的成長和更好的利潤率相結合，預計將導致全年指導中點的 40 規則得分為 40.2%，比去年同期提高 3 個百分點以上。

Also recall that our business has a degree of seasonality, with the second and fourth quarters typically outperforming in the first and third quarters. Earnings per share is expected to be between $4.12 and $4.38, with a midpoint of $4.25. We factored into our projection a higher non-GAAP annualized effective income tax rate of 24.5%, a 450-basis point increase from the 20% rate used in 2023. The increase reflects greater profitability in the business as well as an increase in U.K. corporate tax rate.

請同時記住，我們的業務具有一定的季節性，第二季和第四季的表現通常優於第一和第三季。每股收益預計在 4.12 美元至 4.38 美元之間，中間值為 4.25 美元。我們在預測中考慮了更高的非公認會計準則年化有效所得稅率為24.5%，比2023 年使用的20% 稅率增加了450 個基點。這一增長反映了業務盈利能力的提高以及英國企業的增長。稅率。

Additionally, we have a sharp focus on driving adjusted free cash flow and returning capital to our shareholders. For the year, we're guiding to adjusted free cash flow of $254 million to $274 million. The $264 million midpoint represents a 22.3% adjusted free cash flow margin and a significant improvement of 300 basis points over 2023, despite approximately $30 million in additional cash taxes expected this year, and additional investments in product and cybersecurity.

此外，我們非常注重推動調整後的自由現金流量並向股東返還資本。今年，我們預計調整後自由現金流為 2.54 億美元至 2.74 億美元。 2.64 億美元的中點意味著調整後的自由現金流利潤率為22.3%，比2023 年顯著提高了300 個基點，儘管今年預計將增加約3000 萬美元的現金稅，並在產品和網路安全方面進行額外投資。

Our last but certainly not least, a few thoughts on capital allocation. This past year, we turned the quarter, and for the first time ever, generated more than $200 million of adjusted free cash flow. This enabled us to make approximately $50 million in security incident settlement payments, repurchased approximately $19 million in shares in December, while at the same time, reducing our debt to adjusted EBITDA ratio to approximately 2x.

最後但同樣重要的是，我們對資本配置的一些想法。去年，我們扭虧為盈，有史以來第一次產生了超過 2 億美元的調整後自由現金流。這使我們能夠支付約 5000 萬美元的安全事件和解款項，並在 12 月回購了約 1900 萬美元的股票，同時將我們的債務與調整後 EBITDA 的比率降低至約 2 倍。

Looking to the future, the company believes adjusted free cash flow will continue to grow and anticipates offsetting dilution from share-based compensation. Beyond that, the company has tremendous optionality to dynamically allocate capital to its highest use based on market conditions, including synergistic M&A, additional stock repurchases or repayment of debt. The availability of acquisitions, the performance of our share price and the interest rate environment will help inform our capital allocation decisions.

展望未來，該公司相信調整後的自由現金流將繼續成長，並預期抵消股權激勵帶來的稀釋作用。除此之外，該公司擁有龐大的選擇權，可以根據市場狀況動態地將資本分配到其最高用途，包括協同併購、額外股票回購或償還債務。收購的可用性、我們的股價表現和利率環境將有助於為我們的資本配置決策提供資訊。

Before we open the lines for your questions, let me summarize. The fourth quarter demonstrated continued progress against our 5-point operating plan that has transformed our financial results. This past year, the company accelerated revenue growth, reduced costs, expanded profitability and started returning capital to shareholders.

在我們開始提問之前，讓我先總結一下。第四季我們的 5 點營運計畫取得了持續進展，這改變了我們的財務表現。去年，該公司加速了收入成長，降低了成本，擴大了獲利能力，並開始向股東返還資本。

We have a plan for 2024 that we expect will continue those trends, improve financial performance will continue enhancing value for our shareholders.

我們制定了 2024 年計劃，預計將延續這些趨勢，改善財務表現將繼續為股東增加價值。

With that, we can open up line for questions.

這樣，我們就可以開放提問線路了。

(Operator Instructions) We will now take our first question from Rob Oliver with Baird.

（操作員說明）我們現在將回答 Rob Oliver 和 Baird 提出的第一個問題。

Mike, I had one for you and then, Tony, a follow-up for you.

麥克，我為你準備了一份，東尼，給你一份後續的。

So Mike, as we enter year 2 of the sort of a new price optimization regime for you, guys, it appears to be going quite well. And I was just curious if you could share your thoughts relative to as we get into kind of the second half of this renewal motion on pricing, how you guys are thinking about the contribution of price to the top line relative to other things like cross-sell, upsell, new product sales? I know you knew -- you cited some wins for EVERFI.

所以麥克，當我們進入新的價格優化機制的第二年時，夥計們，它似乎進展得相當順利。我只是很好奇，當我們進入定價更新動議的後半部分時，你們是否可以分享一下你們的想法，你們如何看待價格相對於其他因素（如跨領域）對營收的貢獻？銷售、追加銷售、新產品銷售？我知道你知道——你列舉了 EVERFI 的一些勝利。

Just want to get a sense for how should we -- should think about expansions and new customers in addition to just price? And then kind of a follow-up for Tony.

只是想了解除了價格之外我們應該如何考慮擴張和新客戶？然後是東尼的後續行動。

Yes. Sure, Rob. Thanks for the question. The program is going really well. It kicked off a while ago, but went live March last year, and the volume grew as we got through the year and got through about 35% last year of the total. Retention rates are up because most folks are taking the 3-year contract options. So we're basically moving the company from historically 1- to 3-year contracts, which is really great for retention go forward.

是的。當然，羅布。謝謝你的提問。計劃進行得非常順利。剛開始不久，去年3月就上線了，隨著時間的推移，成交量也不斷成長，大約佔去年總量的35%。保留率上升是因為大多數人都選擇三年合約。因此，我們基本上將公司從歷史上的 1 年合約改為 3 年合同，這對於未來的保留非常有用。

And so we're in the second year and we'll renew about 30% more roughly this year, coming out of the year at about 65% of the total at the end of this year. So it's a multiyear program, going really well, focused a lot on innovation because we need to keep earning our clients' rights to sign 3-year contracts with new products. And I talked a little bit about that in my prepared remarks.

現在已經是第二年了，今年我們將續約約 30%，到今年年底約佔全年總數的 65%。所以這是一個多年期計劃，進展非常順利，非常注重創新，因為我們需要不斷贏得客戶與新產品簽訂三年期合約的權利。我在準備好的發言中談到了這一點。

Sales bookings, going pretty well. We closed the year fairly strong. We had a good start to the year. Pipeline is good. The corporate impact sector, I mentioned a couple of clients that we closed. I'd say that's a little bit softer than the rest of the business. But lots of interest there, too. We don't see anybody really pulling back on investments there.

銷售預訂，進展順利。我們以相當強勁的勢頭結束了這一年。我們今年有一個好的開始。管道狀況良好。在企業影響力領域，我提到了我們關閉的幾個客戶。我想說這比其他業務要溫和一些。但那裡也有很多興趣。我們沒有看到任何人真正撤回那裡的投資。

I don't know if you noticed it, but the NFL chose to run 2 ads during the Super Bowl on what's called the Character Playbook that runs on our EVERFI platform. And as you might guess, we're getting a lot of interesting inbounds from that.

我不知道您是否注意到了，NFL 選擇在超級盃期間投放 2 個廣告，內容是在我們的 EVERFI 平台上運行的所謂角色劇本。正如你可能猜到的，我們從中得到了很多有趣的入界。

So all in all, we had a really good year last year. And coming in at 4.8% growth is the highest in, what, 6 years in our organic growth. And then a guide at midpoint of 7.2% up to 8.6% on the high end. I think we're set up really well for '24 also.

總而言之，去年我們度過了非常美好的一年。 4.8% 的成長率是我們 6 年來有機成長的最高水準。然後是中點 7.2% 到高階 8.6% 的指導。我認為我們也為 24 世紀做好了很好的準備。

Great. Appreciate that.

偉大的。感謝。

And then Tony, just a question on the EBITDA margins. Just what some of the priorities for you as sources of spend are for this year? You guys continue to do a really strong job on the margin side. It was a little bit below what we thought you guys were going to do for '24, but still solid. So I just wanted to get a sense for kind of where perhaps that spending or divergence between that and our thoughts relative to what you guys are going to be spending on, what that might be?

然後托尼，只是一個關於 EBITDA 利潤率的問題。作為支出來源，您今年的優先事項是什麼？你們在利潤方面繼續做得非常出色。這比我們想像的你們 24 年要做的要低一點，但仍然很穩定。所以我只是想了解一下，相對於你們將要花的錢，我們的想法和支出之間可能存在什麼差異，那可能是什麼？

Yes, Rob, thanks for that question. EBITDA margins have improved dramatically. As we've seen, we finished the year really strong, did great last year. '24, we're currently expecting that we'll manage the business for the year somewhere close to the same head count where we ended, which is down about 600, I think, from our high or our peak. So we're kind of planning on running the business in that same head count. Obviously, you're going to have some merit increase and cost of living increases, those kind of things that we have to deal with, even with that lower headcount.

是的，羅布，謝謝你提出這個問題。 EBITDA 利潤率大幅提高。正如我們所看到的，我們今年的表現非常強勁，去年表現出色。 '24，我們目前預計今年的業務管理人數將接近我們結束時的人數，我認為，這比我們的最高點或峰值減少了約 600 人。因此，我們計劃以相同的人員數量來經營業務。顯然，即使員工人數減少，你的功績也會增加，生活成本也會增加，這些都是我們必須處理的事情。

The biggest thing really Mike alluded to it, and we talked about it a little bit in the prepared comments, we've got a bit of incremental investment in innovation on the R&D side of the business, some security, cybersecurity-related investments as well that are driving a little bit of incremental costs.

麥克確實提到了最重要的事情，我們在準備好的評論中對此進行了一些討論，我們在業務研發方面的創新方面進行了一些增量投資，還有一些安全、網絡安全相關的投資這會增加一些增量成本。

Overall, costs are still growing slower than revenue, which is a key focus for us. But this year, with the couple of those incremental investments, we're not seeing quite as much leverage on the EBITDA front as we'd expect going forward longer term.

整體而言，成本成長仍慢於收入成長，這是我們關注的重點。但今年，隨著這些增量投資的增加，我們在 EBITDA 方面的槓桿作用並不像我們預期的長期那麼大。

Our next question comes from the line of Brian Peterson with Raymond James.

我們的下一個問題來自布萊恩彼得森和雷蒙詹姆斯的對話。

So I wanted to follow up on some of the pricing initiatives. Obviously, that's gone pretty well. It looks like you have 30% of the base coming up for renewal in 2024. Any lessons learned in 2023 that helps you attack that?

所以我想跟進一些定價措施。顯然，一切進展順利。看來您有 30% 的基礎將在 2024 年進行更新。2023 年有什麼經驗教訓可以幫助您解決這個問題嗎？

And then how should we think about anything in that base in terms of timing or customer exposure or products that we should be paying attention to?

然後，我們應該如何考慮該基礎中的時間、客戶曝光度或我們應該關注的產品？

Yes. I think we learned a lot last year. We didn't really need to make many adjustments though. I think we just got better at communicating. We notify customers 5 months ahead, right? So we're already out almost in June of this year now. So we saw retention rates go up. Most customers are signing for the 3-year contract. We've got our heads down on just driving more innovation because we feel like we need to continue to earn the right to have a price increase and have 3-year contracts. So we're really focused on a lot of innovation. Tony just mentioned that.

是的。我認為去年我們學到了很多。不過，我們其實並不需要做很多調整。我認為我們在溝通方面變得更好了。我們提前 5 個月通知客戶，對吧？所以我們現在已經快到今年六月了。所以我們看到保留率上升了。大多數客戶都簽訂了為期 3 年的合約。我們一直致力於推動更多創新，因為我們覺得我們需要繼續贏得漲價和簽訂 3 年合約的權利。所以我們確實專注於許多創新。托尼剛剛提到過這一點。

But program is going really well. We did -- like I said, we did 35% of the base last year starting in March. We'll do another 30% this year. And so we're starting to get sort of full year effect this year of last year's, and then partial year effect of this year's this year, because most of the larger volumes are sort of June, July and then toward the fourth quarter. So it takes kind of a next year to really pick up on that uptick in volume. But program is going really well. It's good to see retention rates increase with this program.

但計劃進行得非常順利。我們做到了——就像我說的，去年從 3 月開始，我們完成了 35% 的工作。今年我們將再做 30%。因此，我們開始獲得去年的全年影響，然後是今年的部分年度影響，因為大多數較大的銷售量是在六月、七月，然後是第四季。因此，需要明年的時間才能真正看到銷售量的成長。但計劃進行得非常順利。很高興看到該計劃的保留率有所提高。

That's good to hear. And maybe a follow-up to Rob's question on the net new side. It sounds like the pipeline and some of the opportunities you mentioned there are pretty strong. I'm curious, how is the pricing and kind of the multiyear contract looking on the net new side? And anything that's changed competitively that you're seeing out there in the market?

聽起來還不錯。也許是羅佈在網路新方面提出的問題的後續行動。聽起來您提到的管道和一些機會非常強大。我很好奇，多年期合約的定價和類型如何？您在市場上看到的競爭變化有哪些？

Yes. We moved our list prices up a bit as well on some of the products, we haven't done that in a while. And we're faring pretty well there. We've made a tweak in our sales comp plan to drive more units. So we're focused on units. That's new logo and cross-sell. We still have our teams focused in that way in the vertical markets that we're in. So they're -- like historically, they're signed by vertical market and assigned to cross-sell to existing or go get new logos. That hasn't changed, but we made a tweak to the plan to just keep focusing on adding new units across the board. So no major changes there.

是的。我們也將某些產品的標價上調了一點，我們已經有一段時間沒有這樣做了。我們在那裡過得很好。我們對銷售補償計劃進行了調整，以推動更多銷售。所以我們專注於單位。這是新的標誌和交叉銷售。我們的團隊仍然以這種方式專注於我們所在的垂直市場。因此，就像歷史上一樣，他們由垂直市場簽署並分配給現有的交叉銷售或獲得新的標誌。這並沒有改變，但我們對計劃進行了調整，繼續專注於全面添加新單位。所以那裡沒有重大變化。

Our next question comes from the line of Parker Lane with Stifel.

我們的下一個問題來自 Parker Lane 和 Stifel 的對話。

Yes. Tony, I was wondering if you could talk about leverage a little bit more in the business. If we look at your adjusted EBITDA and free cash flow guide, I know you referenced that you're going to have head count relatively stable at the end of this year relative to where it started. What other opportunities are there to drive efficiencies across the different cost lines of the business?

是的。東尼，我想知道你是否可以多談談業務中的槓桿作用。如果我們查看你們調整後的 EBITDA 和自由現金流指南，我知道你們提到，今年年底你們的員工數量將相對於年初相對穩定。還有哪些機會可以提高企業不同成本線的效率？

Thanks, Parker. That's a good question. I would expect we will continue to see us gain scale and leverage just from the higher growth rate that we're driving on the top side. It's a lot easier to drive more profitability when you're growing in that high single digits than the low single digits. You eat up most of that lower growth improvement and profitability just in the normal merit and other increases that we see year-on-year. So as we grow faster, it will certainly be easier to scale and gain leverage in the business, and be able to hold our head count.

謝謝，帕克。這是個好問題。我預計，我們將繼續看到我們從頂部推動的更高成長率中獲得規模和槓桿作用。當你以高個位數成長時，比低個位數成長更容易提高獲利能力。你消耗了大部分較低的成長改善和獲利能力，只是在我們看到的正常業績和其他同比成長中。因此，隨著我們發展得更快，擴大規模和獲得業務影響力肯定會更容易，並且能夠維持我們的員工數量。

Our investments are going to be up a bit this year, that's why we're not seeing quite as much leverage. Some of that's kind of onetime in nature. We're accelerating some of the investments on the cyber front to get some things completed a little bit more quickly than what was originally planned. And so that's pulled a little bit of an expense into the year.

今年我們的投資將會增加，這就是為什麼我們沒有看到那麼多的槓桿。其中一些本質上是一次性的。我們正在加快網路方面的一些投資，以便比最初計劃更快地完成一些事情。因此，這為今年帶來了一些支出。

And then we're putting a good chunk of money into AI and innovation. We talked a lot about at bbcon, we've had quite a few press releases, there's a lot of good news on the innovation front coming as well.

然後我們將大量資金投入人工智慧和創新。我們在 bbcon 上討論了很多，發布了很多新聞稿，還有很多關於創新的好消息。

So I think we're up a little bit higher than what we would typically expect to be this year on some of the spend, hence not seen as much leverage. But I would think going forward, you'd see us continue to generate additional leverage in the business year on -- year-on-year.

因此，我認為我們今年的部分支出比我們通常預期的要高一些，因此沒有看到太多的槓桿作用。但我認為，展望未來，你會看到我們繼續在業務中產生額外的槓桿作用。

Got it. Very helpful. And then, Mike, on the corporate impact space, I think you mentioned that was a little bit softer but didn't necessarily see people pulling back. Can you go into the dynamics of that market, in particular at a little bit deeper? And how do you feel about the structure of the team you've got centered around the corporate opportunity right now?

知道了。很有幫助。然後，麥克，關於企業影響力領域，我想你提到，這有點溫和，但不一定看到人們退縮。您能否深入了解該市場的動態，特別是更深入的情況？您對目前以企業機會為中心的團隊結構有何看法？

Yes, sure. Tom Davidson heads up that corporate impact team for us. He is the CEO and founder of EVERFI. And so we combine that with a few other products, they have 5 products now they take to that corporate market, which is great because there's cross-sell opportunities there. So it's a solid team.

是的，當然。湯姆戴維森 (Tom Davidson) 負責領導我們的企業影響力團隊。他是 EVERFI 的執行長兼創始人。因此，我們將其與其他一些產品結合起來，他們現在有 5 種產品進入該企業市場，這很好，因為那裡有交叉銷售機會。所以這是一個堅實的團隊。

The market is a very large market. What's interesting about that side of the business is there's optionality for contracts substantially larger than the historic Blackbaud cloud software side. Some of these contracts can be several million a year in ARR because they're big companies and big footprint. And we've got an amazing presence in that market. I mentioned the NFL decided to run 2 ads during the Super Bowl on a platform that's built on EVERFI, which is amazing.

市場是一個非常大的市場。這方面業務的有趣之處在於，合約的選擇性遠大於歷史悠久的 Blackbaud 雲端軟體方面。其中一些合約的年 ARR 可能高達數百萬美元，因為它們是大公司，業務範圍也很大。我們在這個市場上的表現令人驚訝。我提到 NFL 決定在超級盃期間在基於 EVERFI 建立的平台上投放 2 個廣告，這太棒了。

And there's many Fortune 500 companies that are our customers or prospective customers. We put together a partnership with Fortune a little over a year ago. They started a whole focus around this corporate impact space, and we were a founding partner with them and I have met with several hundred Fortune 500 global heads of Corporate Social Responsibility.

許多財富 500 強公司都是我們的客戶或潛在客戶。一年多前，我們與《財星》雜誌建立了合作關係。他們開始全面關注這個企業影響領域，我們是他們的創始夥伴，我會見了數百位財富 500 強全球企業社會責任負責人。

So EVERFI definitely punches above its weight, if you will, as far as presence. I haven't met a customer that wasn't enamored with EVERFI. Now the downside is, it is a discretionary spend. And so the programs are subject to that occasionally. But it's a solid platform with an unbelievable brand and a lot of really interesting relationships.

因此，只要你願意，就存在而言，EVERFI 絕對超越了它的重量。我還沒遇過不迷戀 EVERFI 的客戶。現在的缺點是，這是可自由支配的支出。因此，這些程序有時會受到這種情況的影響。但這是一個堅實的平台，擁有令人難以置信的品牌和許多非常有趣的關係。

So that market is not really pulling back. The company is -- there's a lot in the news about CSR and ESG programs and things like that. But if you look at just -- I'll give you an example, in the financial services space, banking in the U.S., the government requires those institutions to invest in the space. So there's a regulation that requires a give back. In a lot of cases, they're choosing YourCause or EVERFI as that platform. So that's a regulated requirement, which is great for us. It is the biggest space that we're in financial services.

所以這個市場並沒有真正回調。該公司——有很多關於企業社會責任和環境、社會和治理計劃以及類似的事情的新聞。但如果你看一下——我給你舉個例子，在金融服務領域，美國的銀行業，政府要求這些機構投資該領域。所以有一項規定要求回饋。在很多情況下，他們選擇 YourCause 或 EVERFI 作為這個平台。所以這是一項受監管的要求，這對我們來說非常好。這是我們在金融服務領域最大的空間。

So it's a big space, global customers, really solid team. I think we've got great opportunities. I mentioned -- what I mentioned, News Corp and Fidelity in my prepared remarks, 2 recent larger expansions.

所以這是一個很大的空間、全球客戶、非常堅實的團隊。我認為我們有很好的機會。我在我準備好的演講中提到了新聞集團和富達，最近兩次更大的擴張。

Got it. Very interesting. Congrats on the quarter.

知道了。很有意思。恭喜本季。

Yes. Thank you.

是的。謝謝。

Thanks Parker.

謝謝帕克。

Our next question comes from the line of Matt VanVliet with BTIG.

我們的下一個問題來自 BTIG 的 Matt VanVliet。

Maybe just following up on the last question, Tony. In the slide deck, it calls out that there's still 2 more data centers to wind down.

也許只是在跟進最後一個問題，托尼。在幻燈片中，它指出還有 2 個資料中心需要關閉。

Curious on a go-forward basis from here, given you've gotten through most of the DCs you're operating, how much benefit from here is true cost reduction as your favorable contracts with Azure and AWS roll through versus sort of offsetting future spending of continuing CapEx and reinvesting in those data centers? How should we think about that sort of impacting gross margins long term?

從這裡開始好奇，考慮到您已經通過了您正在運營的大多數資料中心，隨著您與 Azure 和 AWS 的有利合約的延續，這裡的好處有多少是真正的成本降低，而不是抵消未來的支出繼續資本支出並對這些資料中心進行再投資？我們該如何看待這種對毛利率的長期影響？

Yes, Matt, the CapEx, as you know, has been dropping off substantially as we've shut down the data centers and moved to the cloud. There is continuation of that same story this year.

是的，馬特，正如你所知，隨著我們關閉資料中心並遷移到雲端，資本支出一直在大幅下降。今年同樣的故事還在繼續。

As you saw in the earnings release on the guide, CapEx is going to be down. Cap software is relatively stable and growing, with all the spend that we're putting on innovation. So we'll see that up a little bit. But CapEx itself, through CapEx buying property and equipment, will be down substantially.

正如您在指南的收益發布中看到的那樣，資本支出將會下降。由於我們在創新上投入了大量資金，Cap 軟體相對穩定且不斷成長。所以我們會稍微討論一下。但透過購買財產和設備的資本支出本身，資本支出將大幅下降。

We're still spending money to move data centers. So we've got some duplicative costs because we've got the cost of the cloud environments and the existing data centers and the cost to move and migrate. And there's still some engineering work that's being done as well to prepare the products to move to the cloud out of the existing infrastructure.

我們仍在花錢遷移資料中心。因此，我們有一些重複成本，因為我們有雲端環境和現有資料中心的成本以及行動和遷移的成本。此外，還有一些工程工作正在進行，以準備將產品從現有基礎設施遷移到雲端。

So there's still some duplicative costs that go away on that front. And then I do think we'll be more efficient in the cloud over the long run, certainly, when you incorporate all the benefits of additional cyber opportunities within the cloud environments.

因此，在這方面仍然存在一些重複成本。然後，我確實認為，從長遠來看，當您將額外網路機會的所有優勢融入雲端環境時，我們在雲端中的效率當然會更高。

And so we'll continue to see some improvements there. We've still got some leases. We inherited a pretty big operating lease on the facility for EVERFI that we're still working to sublease and get out from under. So we still got some of those costs, which we would hope would go away. So there are a few of those kind of big movers.

因此，我們將繼續看到一些改進。我們還有一些租約。我們繼承了 EVERFI 設施的相當大的經營租賃權，我們仍在努力轉租並擺脫困境。因此，我們仍然需要承擔一些成本，我們希望這些成本能夠消失。所以有一些這樣的大推動者。

And then we're starting to look at use of AI internally as a company. We still have a lot of automation opportunities within the business. So we still have other areas that we're pursuing that should drive some fairly substantial, I'd say, cost savings overall over the next few years. And then I think just leverage again, as we spoke about earlier, from the business, growing faster will certainly make it easier to gain scale.

然後我們開始考慮在公司內部使用人工智慧。我們在業務中仍然有很多自動化機會。因此，我們仍在追求其他領域，我想說，這些領域應該在未來幾年內推動整體相當可觀的成本節約。然後我認為，正如我們之前談到的，從業務中再次利用，更快的成長肯定會更容易獲得規模。

So we would expect that we've got some opportunity on the profitability side going forward. And the nice thing is we're already up, as you've seen at the midpoint of guide, above at 22% adjusted free cash flow margin guide, which is tremendous. I think we were down in the 14% range in '22, and jumped up to 19% last year and 22% for this coming year, which is just tremendous. And I think that we would expect to see that improve kind of in line with profitability improving.

因此，我們預計未來在獲利方面會有一些機會。令人高興的是，正如您在指南的中點看到的那樣，我們已經達到了 22% 的調整後自由現金流利潤率指南，這是巨大的。我認為我們在 22 年下降了 14%，去年上升到 19%，明年上升到 22%，這真是太棒了。我認為我們預計這種情況會隨著盈利能力的提高而有所改善。

The only area that we've had that's taken us backwards is just our expectation of cash taxes. And that improvement to the 22.3% at the midpoint includes about $30 million of incremental cash taxes because our -- as you saw, our book rate we're using is going up to 24.5%. I spoke about that a bit in my prepared comments from 20%. And that's largely because we've got a great profitable business in the U.K. and the statutory rates there went from 19% to 25% last year. So we'll have a full year impact of those.

唯一讓我們倒退的領域就是我們對現金稅的期望。中點 22.3% 的改善包括約 3,000 萬美元的增量現金稅，因為如您所見，我們使用的帳面利率上升至 24.5%。我在 20% 準備好的評論中談到了這一點。這主要是因為我們在英國的業務利潤豐厚，去年那裡的法定稅率從 19% 升至 25%。因此，我們將受到這些影響全年。

And then we're just getting closer to the statutory rate for the U.S. Our federal is about 21%, and state, I think, is roughly 5%. And so we're getting close to the statutory rate in the U.S. as well, largely because our credits are relatively fixed and our income is going up so fast.

然後我們就越來越接近美國的法定稅率。我們的聯邦約為 21%，我認為州約為 5%。因此，我們也正在接近美國的法定利率，這主要是因為我們的信用相對固定，而我們的收入成長如此之快。

So we'll have a little higher cash tax rate for book and cash taxes that's hit in a bit on the free cash flow that's built into that improved number as well, which is great.

因此，我們的帳面稅和現金稅的現金稅率會稍高一些，這對自由現金流也造成了一些影響，而自由現金流也包含在改善的數字中，這很好。

All right. Very helpful. And then I guess, Mike, when you're looking at kind of the emphasis on new units, as you mentioned, trying to drive some new business there. Where do you feel like you stand from a sales capacity standpoint versus improving productivity and execution of the current reps, any ideas around head count growth? Or do you feel like you have the right team in place and it's just about driving the right performance?

好的。很有幫助。然後我想，麥克，當你專注於對新單位的重視時，正如你所提到的，試圖在那裡推動一些新業務。與提高目前銷售代表的生產力和執行力相比，從銷售能力的角度來看，您覺得自己處於什麼位置，關於人數成長有什麼想法嗎？或者您覺得自己擁有合適的團隊，而只是為了推動正確的績效？

Yes. I think we have the right team in place and the right leadership in place, too. We've hired some outside leaders in the last 6 months or so to lead up some of our teams. So we don't see a substantial increase in the head count. We do see significant opportunity, though, in productivity or quota attainment by person.

是的。我認為我們擁有合適的團隊和合適的領導階層。在過去 6 個月左右的時間裡，我們聘請了一些外部領導來領導我們的一些團隊。因此，我們沒有看到人員數量大幅增加。不過，我們確實在生產力或人員配額實現方面看到了巨大的機會。

Our next question comes from the line of Kirk Materne with Evercore ISI.

我們的下一個問題來自 Evercore ISI 的 Kirk Materne。

This is Peter Burkly on for Kirk. Congrats on the strong '23.

我是柯克的彼得·伯克利。恭喜強者'23。

Tony, I appreciate the color just in terms of some of the incremental investments in specifically areas like AI. Just curious in terms of the timing of those investments. Would you expect those to ramp over the course of the year? Or will the investments be fairly linear? Just trying to get a sense on how you see the shape of the EBITDA margin over the course of the year?

托尼，我很欣賞這種顏色，因為它在人工智慧等特定領域進行了一些增量投資。只是對這些投資的時機感到好奇。您預計這些數量會在一年內增加嗎？或者投資會相當線性嗎？只是想了解一下您如何看待一年中的​​ EBITDA 利潤率？

Yes, Peter, they will ramp a little bit, although I'd tell you, we accelerated some of those investments beginning in Q4. So they actually already started ramping. That said, I do think we'll see a bit more as we get into the year because some of those include hiring new staff, those that are outside consultants. And then we also have some investments in some new solutions, I think, on the cyber front. So we'll be bringing new software solutions, et cetera, online and implementing.

是的，彼得，他們會稍微增加一點，儘管我會告訴你，我們從第四季開始加速了其中一些投資。所以他們實際上已經開始了。也就是說，我確實認為進入今年我們會看到更多，因為其中一些包括僱用新員工，即外部顧問。然後我們也在網路方面的一些新解決方案上進行了一些投資。因此，我們將在線上提供並實施新的軟體解決方案等。

So I think those costs will hit us a little more as we get into the year. So expect that to build a bit across the year. And then some of those will start falling off as well as we get -- there's a bit of a surge and an acceleration. So as we get some things implemented and put in place, then some of those will start to drop off as well towards the back end of the year.

因此，我認為隨著今年的到來，這些成本將對我們造成更大的打擊。因此，預計這一數字在今年會有所增加。然後其中一些會像我們一樣開始下降——有一點激增和加速。因此，當我們實施並落實一些措施時，其中一些措施也會在今年年底開始下降。

Very helpful. And Mike, maybe just a quick one for you as well.

很有幫助。麥克，也許對你來說也只是一個快速的。

Just as you're thinking about adding some of those AI capabilities into the product set, would you expect most of this to be included in the new pricing structure? Or do you see an opportunity to sort of leverage AI and create some new stand-alone offerings?

正如您正在考慮將其中一些人工智慧功能添加到產品集中一樣，您是否期望其中大部分功能都包含在新的定價結構中？或者您看到了利用人工智慧並創建一些新的獨立產品的機會？

Yes. It's both. Actually, Peter, it's a little bit of both. So some of this new capability will just show up in products. For instance, last year, the first one we announced into production was a new set of AI capability in our JustGiving platform, already in production.

是的。兩者都是。事實上，彼得，兩者都有一點。因此，其中一些新功能只會出現在產品中。例如，去年，我們宣布投入生產的第一個功能是 JustGiving 平台中的一套新的人工智慧功能，目前已經投入生產。

We have new capabilities that are rolling out this week in Raiser's Edge NXT and more coming across other platforms like CRM and Altru, for example.

我們本週將在 Raiser's Edge NXT 中推出新功能，並在 CRM 和 Altru 等其他平台上推出更多功能。

Some will be stand-alone new capabilities. So we have some online donation capabilities with AI that are additive and new to the market that will go across several products. And then some are embedded like the JustGiving one I just mentioned. So it's a little bit of both.

有些將是獨立的新功能。因此，我們擁有一些具有人工智慧的線上捐贈功能，這些功能對於市場來說是附加的、全新的，將涵蓋多種產品。然後有些是嵌入的，就像我剛才提到的 JustGiving 一樣。所以兩者兼而有之。

And Peter, I'd just add on some of the new capabilities like with online giving forms, it won't be that you price separately, they will drive more revenue just because of the efficiency of giving that they drive and/or if we have a complete cover type model where we're just getting a higher amount of donation to us and to the -- to our customers. As we've spoken about before, it will be a big win-win on those things with the new donation forms as they roll out.

彼得，我只是添加一些新功能，例如在線捐贈表格，您不會單獨定價，他們會帶來更多收入，只是因為他們驅動的捐贈效率和/或如果我們有一個完整的封面類型模型，我們將獲得更多的捐款給我們和我們的客戶。正如我們之前談到的，隨著新的捐贈表格的推出，這將是一個巨大的雙贏。

Yes. So some of those capabilities are pointed toward driving our customers' revenue, which also rides on our payment system as well. So it's a win-win.

是的。因此，其中一些功能旨在推動我們客戶的收入，這也依賴我們的支付系統。所以這是雙贏的。

And we have reached the end of the question-and-answer session. I'll now turn the call back over to Mike Gianoni for closing comments.

我們的問答環節已經結束了。現在我將把電話轉回給邁克·賈諾尼 (Mike Gianoni) 以供結束評論。

Thank you. Thank you for joining us this morning.

謝謝。感謝您今天早上加入我們。

To summarize, '23 was a year of substantial transformation for Blackbaud. Our 5-point operating plan delivered 4 sequential quarters of accelerating financial performance. And we met or exceeded our financial guidance ranges across all metrics.

總而言之，23 年是 Blackbaud 發生重大轉變的一年。我們的 5 點營運計畫實現了連續 4 個季度的財務表現加速成長。我們在所有指標上都達到或超過了我們的財務指導範圍。

Our strong cash generation enabled us to resume stock repurchases in the fourth quarter and going forward. We're focused on making prudent investments to grow the business organically and inorganically while returning excess capital to shareholders.

我們強勁的現金產生能力使我們能夠在第四季及以後恢復股票回購。我們專注於進行審慎投資，以有機和無機方式發展業務，同時將多餘的資本回饋給股東。

I'm incredibly proud of the results the team has produced and excited about the continued momentum we expect in 2024. Thank you, everyone.

我對團隊的成果感到無比自豪，並對我們預計 2024 年的持續發展勢頭感到興奮。謝謝大家。

And this concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束，大家可以掛斷電話了。感謝您的參與。