Blackbaud Inc (BLKB) 2024 Q3 法說會逐字稿

Greetings, and welcome to the Blackbaud third quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded.

大家好，歡迎參加 Blackbaud 2024 年第三季財報電話會議。（操作員指示）提醒一下，本次會議正在錄音。

It is now my pleasure to introduce your host, Tom Barth, Head of Investor Relations. Thank you, sir. You may begin.

現在我很高興介紹您的主持人，投資者關係主管湯姆·巴斯 (Tom Barth)。謝謝您，先生。你可以開始了。

Good morning, everyone. Thank you for joining us on Blackbaud's third quarter 2024 earnings call. Joining me on the call today are Mike Gianoni, Blackbaud's Chief Executive Officer, President and Vice Chairman; and Tony Boor, Blackbaud's Executive Vice President and Chief Financial Officer. Mike and Tony will make prepared remarks, and then we will open up the line for your questions.

大家早安。感謝您參加 Blackbaud 2024 年第三季財報電話會議。今天與我一起參加電話會議的還有 Blackbaud 的執行長、總裁兼副董事長 Mike Gianoni；以及 Blackbaud 執行副總裁兼財務長 Tony Boor。麥克和托尼將發表準備好的講話，然後我們將開放熱線回答大家的提問。

Please note that comments today contain forward-looking statements subject to risk 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.

請注意，今天的評論包含前瞻性陳述，受風險和不確定性的影響，可能導致實際結果與預測結果有重大差異。有關這些風險的更多信息，請參閱我們最新的 10-K 表格和其他 SEC 文件。

The discussion today will focus on non-GAAP results. Please refer to our press release and the investor materials posted to our website for full details on our financial performance, including GAAP results, as well as full year guidance.

今天的討論將集中在非公認會計準則結果。請參閱我們的新聞稿和發佈在我們網站上的投資者資料，以了解我們的財務業績的詳細信息，包括 GAAP 結果以及全年指引。

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 to only 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.

我們相信，GAAP 和非 GAAP 指標的結合更能代表我們如何內部衡量我們的業務。除非另有說明，否則我們在本次電話會議中將僅參考非 GAAP 財務指標。請注意，非 GAAP 財務指標不應孤立地考慮或取代 GAAP 指標。

And with that, let me turn the call over to Mike.

現在，請允許我將電話轉給麥克。

Thank you, Tom. Good morning, everyone. I want to begin by addressing our revised guidance ranges for 2024.

謝謝你，湯姆。大家早安。首先我想談談我們對 2024 年的修訂指引範圍。

Our social sector, which is the majority of our revenue, continues to perform very well and we feel we remain a strong investment for shareholders.

我們的社會部門占我們的收入的大部分，該部門繼續表現良好，我們認為我們仍然是股東的一項強有力的投資。

We are lowering our annual revenue guidance due to the continued negative financial impact of EVERFI. Without the negative performance of EVERFI, our guidance for the year would remain unchanged. We are confident that our underlying business and our future opportunities remain strong.

由於 EVERFI 持續帶來的負面財務影響，我們正在下調年度收入預期。如果沒有 EVERFI 的負面表現，我們今年的指導將保持不變。我們相信，我們的基礎業務和未來機會依然強勁。

We've spoken in the past about improving EVERFI's business performance and evaluating strategic options. While EVERFI remains a small portion of our overall business, at roughly 7% of our revenue in the quarter, management is focused on achieving the best possible outcome.

我們過去曾談論過改善 EVERFI 的業務績效和評估策略選擇。雖然 EVERFI 仍然只占我們整體業務的一小部分，約佔本季收入的 7%，但管理層專注於實現最好的結果。

We have recently right-sized the business to better align cost to revenues and we've hired Goldman Sachs as our strategic advisor to assist us in evaluating other options. We plan to continue to update you as appropriate in this area.

我們最近對業務進行了適當調整，以更好地使成本與收入保持一致，並聘請了高盛作為我們的策略顧問，協助我們評估其他選擇。我們計劃繼續向您提供有關此領域的適當更新。

As you look across the other parts of our business, we believe Blackbaud, driven by our continued focus on execution of our 5-point operating plan, is a compelling investment with multiple opportunities for strong shareholder returns.

縱觀我們業務的其他部分，我們相信，在我們持續專注於執行五點營運計劃的推動下，Blackbaud 是一項引人注目的投資，具有為股東帶來豐厚回報的多重機會。

We continue to extend our position as the market leader in providing software to power social impact through our offerings of the most comprehensive set of purpose-built and mission-critical software and services. And we continue to accelerate the pace on an exciting list of innovative new solutions to penetrate even further into our rich market opportunity.

我們將繼續透過提供最全面的專用和關鍵任務軟體和服務來擴大我們在提供軟體以推動社會影響方面的市場領先地位。我們將繼續加快步伐，推出一系列令人興奮的創新解決方案，以進一步挖掘我們豐富的市場機會。

In September, we held our annual user conference, bbcon, in Seattle with thousands of social impact professionals attending both in-person and virtually. The enthusiasm and reception by our customers was clear and exciting.

9 月，我們在西雅圖舉辦了年度用戶大會 bbcon，數千名社會影響專業人士以現場或虛擬方式出席。我們客戶的熱情和接受是顯而易見且令人興奮的。

We announced six waves of innovation, including AI capabilities, new powerful partnerships with companies such as Constant Contact, New Expanded Navigation Menus, New Performance Analytics, Payment Assist, Deeper Encryption, and Richer Connectivity, to name a few.

我們宣布了六波創新，包括人工智慧功能、與Constant Contact 等公司建立新的強大合作夥伴關係、新的擴展導航菜單、新的性能分析、支付助手、更深層的加密和更豐富的連接等等。

We'll continue to invest aggressively in innovation and partner with our developer network to further enable our customers to raise more money while improving their operational efficiency, ultimately allowing them to spend more time executing on their charitable missions and less time on administrative tasks.

我們將繼續積極投資創新並與我們的開發者網路合作，進一步幫助我們的客戶籌集更多資金，同時提高他們的營運效率，最終使他們能夠花更多時間執行慈善使命，而減少花在行政任務上的時間。

We remain a natural choice for customers and new prospects alike. Their success helps drive ours and is visible in our third-quarter numbers, which include revenue in our social sector grew 6.6%, despite a difficult FY23 comparison. And within social, contractual reoccurring revenue, the company's largest revenue line was up 6.8%.

我們仍然是客戶和新客戶的自然選擇。他們的成功推動了我們的發展，這在我們的第三季數據中可見一斑，儘管與 23 財年相比困難，但我們社會部門的收入仍增長了 6.6%。在社會、合約經常性收入中，該公司最大的收入項目成長了 6.8%。

Our second largest revenue line of social transactional reoccurring revenue grew 6.6%. Gross dollar retention, driven by the value our customers see using our solutions, was 90%, and excluding EVERFI, approximately 92%.

我們的第二大收入來源是社群交易經常性收入，成長了 6.6%。由客戶使用我們的解決方案所看到的價值所推動的總美元保留率為 90%，不包括 EVERFI，則約為 92%。

We beat out the competition to add prominent new logos and deepened our existing relationships with our list of over 40,000 customers. These included competitive wins in the higher education vertical to Dallas Baptist University, Davidson College, and The University of Nevada, Reno. These institutions valued our enviable end-to-end workflow, and recent enhancements will power their fundraising efforts.

我們擊敗競爭對手，增添了引人注目的新標識，並加深了與超過 40,000 名客戶的現有關係。其中包括在高等教育垂直領域的競爭中擊敗達拉斯浸信會大學、戴維森學院和內華達大學裡諾分校。這些機構重視我們令人羨慕的端到端工作流程，最近的改進將為他們的籌款工作提供動力。

Our adjusted free cash flow remains very strong at nearly $100 million in the third quarter. This strong performance gives us great confidence to fuel our aggressive stock repurchase program. Through October, the company has bought back approximately 8% of the common stock outstanding at the end of 2023, and our current plan is to buy as much as 10% of that balance by year-end 2024.

我們調整後的自由現金流在第三季保持強勁，接近 1 億美元。這種強勁的表現給了我們很大的信心來推動我們積極的股票回購計畫。截至 10 月，公司已回購了 2023 年底約 8% 的普通股，我們目前的計劃是 2024 年底回購該餘額的 10%。

Tony will cover more about financial results as well as capital allocation strategy, but I remain pleased with Blackbaud's multi-year trajectory as well as its prospects. Blackbaud's revenue, adjusted EBITDA margin, adjusted free cash flow have improved significantly over the last couple of years and year-to-date.

托尼將更多地介紹財務業績以及資本配置策略，但我對 Blackbaud 的多年發展軌跡及其前景仍感到滿意。Blackbaud 的營收、調整後的 EBITDA 利潤率和調整後的自由現金流在過去幾年和今年迄今為止都有顯著改善。

We feel that much of this success, driven by a proven operating plan and our mission to empower social impact in the hearts of our customers and employees are driving very strong results.

我們認為，這項成功很大程度上得益於行之有效的營運計畫以及我們在客戶和員工心中發揮社會影響力的使命，這些都帶來了非常強勁的業績。

I'll come back after Tony in a few minutes with some closing thoughts, and then we'll take your questions. Tony?

幾分鐘後，我會在托尼發言後回來做一些總結性發言，然後我們會回答你們的問題。托尼？

Thanks, Mike. I'm pleased with our continued progress and remain excited about the opportunities in front of us. We remain committed to providing our shareholders an attractive financial model balanced between growth and revenues, earnings, cash flows, and a prudent and purposeful capital allocation strategy.

謝謝，麥克。我對我們不斷取得的進步感到高興，並對我們面前的機會感到興奮。我們始終致力於為股東提供一個有吸引力的財務模型，在成長與收入、收益、現金流量以及審慎且有目的的資本配置策略之間取得平衡。

Looking to our third-quarter results, total revenue was $287 million, up 3.3% year over year, and 4.3% on an organic basis. Our social sector, which represents the majority of Blackbaud's revenue at approximately 89% in the quarter, continues to perform very well with revenue growth of 6.6%.

回顧我們第三季的業績，總營收為 2.87 億美元，年增 3.3%，有機成長 4.3%。我們的社交部門佔 Blackbaud 本季營收的大部分，約佔 89%，持續表現良好，營收成長率為 6.6%。

Our corporate sector decline, as Mike mentioned, was again negatively influenced by EVERFI. Although it only represents 7% of total company revenue in the quarter, EVERFI declined 26% year over year in the quarter.

正如麥克所提到的，我們的企業部門的衰退再次受到了 EVERFI 的負面影響。儘管僅佔本季公司總收入的 7%，但 EVERFI 本季同比下降了 26%。

We expect headwinds at EVERFI to continue in the near term, which is reflected in our revised guide. And as Mike said earlier, we're pursuing strategic alternatives for this business through the hiring of Goldman Sachs and have recently reduced EVERFI's expense run rate to better align with the lower revenue outlook.

我們預計 EVERFI 的阻力將在短期內持續，這反映在我們的修訂指南中。正如麥克之前所說，我們正在透過聘請高盛來為這項業務尋求策略替代方案，並且最近降低了 EVERFI 的費用運行率，以更好地適應較低的收入前景。

Moving below the revenue line, our third quarter adjusted EBITDA margin was 33.2%. We generated $98 million of adjusted free cash flow in the third quarter and $187 million year-to-date, which is up from $177 million from the same timeframe in 2023, despite the negative impact of additional interest expense associated with our share repurchase program.

低於營收線，我們第三季的調整後 EBITDA 利潤率為 33.2%。我們在第三季產生了9,800 萬美元的調整後自由現金流，年初至今產生了1.87 億美元，高於2023 年同期的1.77 億美元，儘管與我們的股票回購計劃相關的額外利息支出產生了負面影響。

Our robust free cash flow gives us confidence to continue investment in a number of critical areas like product innovation and stock repurchases. We recently completed our previously announced $200 million ASR program, and when combined with our other stock repurchases, the company's bought back approximately 8% of our common stock outstanding as of the end of ‘23.

強勁的自由現金流使我們有信心繼續投資於產品創新和股票回購等多個關鍵領域。我們最近完成了先前宣布的 2 億美元 ASR 計劃，與我們的其他股票回購相結合，截至 23 年底，該公司已回購了約 8% 的已發行普通股。

We plan to continue to be aggressive in the fourth quarter repurchasing our stock with our goal of buying back up to 10% of our outstanding common stock.

我們計劃在第四季繼續積極回購股票，目標是回購高達 10% 的已發行普通股。

Before I talk about a revised annual guidance, I'd like to highlight several items for you to think about, which may help in developing your models for the remainder of the year and for 2025.

在我談論修訂後的年度指導之前，我想強調幾點供您思考，這可能有助於您為今年剩餘時間和 2025 年制定模型。

Regarding revenue, in addition to the continued anticipated softness of EVERFI, we have not experienced any of the unusually large viral events like we did in 2023. So if you extract those events, our transactional business is growing nicely at more normalized rates.

關於收入，除了 EVERFI 預計的持續疲軟之外，我們還沒有經歷像 2023 年那樣的任何異常大規模的病毒式事件。因此，如果你提取這些事件，我們的交易業務就會以更正常的速度成長得很好。

Second, our modernized approach to renewal contracts in the social sector continues to perform well. By the end of 2024, approximately 65% of the eligible cohort will have gone through the shift to modernized contract terms and pricing, leaving approximately 25% in 2025 and the last 10% in 2026.

其次，我們在社會領域續約的現代化方法繼續發揮良好作用。到 2024 年底，約有 65% 的符合條件的群體將經歷向現代化合約條款和定價的轉變，剩下約 25% 的群體將在 2025 年實現轉變，最後 10% 的群體將在 2026 年實現轉變。

The third quarter of ‘24 represents the first quarter in which we lapped the renewal pricing uplift in a meaningful way, which is reflected in our social contractual recurring revenue growth rate of approximately 7% in the quarter compared to approximately 10% the past two quarters.

2024 年第三季是我們首次以有意義的方式提高續約價格，這反映在我們的社會合約經常性收入成長率上，本季成長率約為 7%，而去年同期約為 10%。個季度。

And finally, while our modernized renewal contracts have price escalators in years two and three, the revenue is recognized on a straight-line basis. So for example, in a three-year contract, the total contract value is divided by 36 and recognized evenly over the full term.

最後，雖然我們的現代化續約合約在第二年和第三年有價格上漲，但收入是直線確認的。例如，在一份三年合約中，合約總價值除以 36，並在整個合約期間內平均確認。

Turning to guidance, we are revising our full-year guidance ranges, which takes into consideration that the core social sector continues to perform well. However, we continue to expect underperformance at EVERFI.

談到指導，我們正在修改全年指導範圍，考慮到核心社會部門繼續表現良好。然而，我們仍然預期 EVERFI 的表現不佳。

Therefore, we revised our full-year 2024 guidance as follows: revenue in the range of $1.150 billion to $1.160 billion. At the midpoint, our organic growth rate is 5.2%, up from 4.8% last year. At the same time, we are increasing our adjusted EBITDA margin guidance range slightly to 33% to 34%, up from 32.2% last year.

因此，我們將 2024 年全年預期修改為：營收在 11.5 億美元至 11.6 億美元之間。中間值是，我們的有機成長率為 5.2%，高於去年的 4.8%。同時，我們將調整後的 EBITDA 利潤率預期範圍從去年的 32.2% 小幅上調至 33% 至 34%。

Non-GAAP earnings per share is expected to be between $3.98 and $4.16, up slightly from $3.98 last year. This guidance does take into account the negative impact of EVERFI underperformance, as well as approximately $20 million in incremental interest expense associated with our share repurchase program.

非公認會計準則每股收益預計在 3.98 美元至 4.16 美元之間，較去年的 3.98 美元略有上升。該指引確實考慮了 EVERFI 業績不佳的負面影響，以及與我們的股票回購計畫相關的約 2,000 萬美元的增量利息支出。

Also of note, the full repurchase share count is not yet fully reflected in our diluted shares outstanding and will not be fully reflected until sometime in 2025. Lastly, our adjusted free cash flow is expected to be between $235 million and $245 million, a 12% increase over 2023 at the midpoint.

另外值得注意的是，全部回購股份數量尚未完全反映在我們的稀釋流通股中，並且要到 2025 年的某個時候才能完全反映。最後，我們的調整後自由現金流預計在 2.35 億美元至 2.45 億美元之間，比 2023 年的中位數成長 12%。

We have a lot to be proud of as we work to close the year strong. We continue to execute on our operating plan, which is driving consistent revenue growth and enviable earnings and cash flow. We're especially pleased with the performance of our core social sector and have confidence in its ability to continue to produce highly profitable growth going forward.

當我們努力以強勁勢頭結束這一年時，我們有很多值得驕傲的事情。我們繼續執行我們的營運計劃，推動收入持續成長以及令人羨慕的獲利和現金流。我們對我們的核心社會部門的表現尤其滿意，並對其未來繼續實現高利潤成長的能力充滿信心。

We also, as Mike discussed, are committed to removing the negative impact of EVERFI, which will aid our financial numbers significantly. As always, we remain focused on providing enhanced value to our customers and our shareholders.

正如 Mike 所說，我們也致力於消除 EVERFI 的負面影響，這將極大地幫助我們的財務數據。像往常一樣，我們始終致力於為客戶和股東提供更高的價值。

Let me turn it back over to Mike for a quick comment, and then we'll open the line for your questions. Mike?

讓我將話題轉回給麥克，讓他做一點簡短的評論，然後我們就會開始回答你們的提問。麥克風？

Thank you, Tony. We remain excited about the future in front of us. We'll provide specific fiscal year 2025 guidance in our February call, but I'd like to highlight why Blackbaud is a sound investment. Regarding organic revenue, you can expect mid-single-digit revenue growth with a call option for more, driven by visible and full reoccurring revenue streams, targeting both new logos and expansion of our installed base empowered by innovation.

謝謝你，托尼。我們對於眼前的未來依然感到興奮。我們將在 2 月的電話會議上提供具體的 2025 財年指導，但我想強調為什麼 Blackbaud 是一項合理的投資。至於有機收入，您可以預期中等個位數的收入成長，並且有更高的看漲期權，這由可見且完整的經常性收入流推動，目標是透過創新來推出新標誌並擴大我們的安裝基礎。

Below the line, you can expect a strong focus on cost, employee productivity to improve EBITDA. Additionally, our very strong free cash flow will drive a purposeful capital allocation strategy. This includes a significant annual buyback program as well as prudent and effective M&A focused on tuck-ins to accelerate our R&D.

低於這一水平，你可以預期到公司將專注於成本和員工生產力，以提高 EBITDA。此外，我們非常強勁的自由現金流將推動有目的的資本配置策略。其中包括一項重大的年度回購計劃以及審慎有效的併購，重點是加速我們的研發。

With that, we can open the line for questions. Operator?

這樣，我們就可以開始回答問題了。操作員？

Thank you. (Operator Instructions) Rob Oliver, Baird.

謝謝。（操作員指令） Rob Oliver，Baird。

Great. Thank you. Good morning. I appreciate you taking the question. Tony, I appreciate your explanation on lapping some of the pricing on the social sector stuff, but I just wanted to dive in a little bit. Totally get what's going on with EVERFI and that that's weighing on the growth rate. But it does appear that the social sector full year for ‘24 growth rate ticked down a little bit, at least in terms of your expectations relative to Q2.

偉大的。謝謝。早安.感謝您回答這個問題。東尼，我很感謝你對社會部門部分定價問題的解釋，但我只是想稍微深入了解一下。完全了解 EVERFI 的情況以及這對成長率造成的影響。但看起來，2024年全年社會部門成長率略有下降，至少與第二季相比，低於你的預期。

So I know you guys are doing well there, but I just wanted to get a sense from you of what, if anything, changed relative to your expectations exiting Q2. Whether that's willingness to accept the price increases, any of those one-year contracts that perhaps were up for renewal, which you flagged about a year ago, which were ones you had a keen eye on, or anything else to call out there would be helpful. Thank you.

所以我知道你們在那裡做得很好，但我只是想從你們那裡了解一下，相對於你們在第二季度退出時的預期，是否有任何變化。無論是願意接受價格上漲，還是任何一年期的合同，這些合同可能要續簽，這些合同是你在一年前標記的，是你密切關注的，或者其他任何需要注意的。謝謝。

Thanks, Rob. On the social side, everything's performing very well, especially on the contract initiative. Overall, the pricing has stuck. We've not seen heightened discounting on that front with those contract renewals.

謝謝，羅布。在社會方面，一切都進展順利，尤其是合約計畫。整體而言，定價維持不變。在續約合約方面，我們並沒有看到折扣幅度加大。

The mix, the percentage of folks that are choosing the multi-year contracts versus the one-year contracts is still running right in line with plan, kind of in the mid to high 80% typically is what we're seeing for folks taking three-year contracts. We're seeing a small number of customers who, for regulatory purposes or other governing rules, can't do multi-year contracts, so we're working through that and how we will deal with those contracts going forward.

選擇多年期合約與一年期合約的人員比例仍然與計劃一致，通常我們看到選擇三年期合約的人員比例在 80% 左右。我們發現少數客戶由於監管目的或其他管理規則而無法簽訂多年期合同，因此我們正在研究如何處理這些合約。

And then on the churn piece of the one-year, as we spoke about, something we're keeping a close eye on, actually that churn rate is holding right in line with plan as well. Keep in mind, it's a much smaller pool with the mid-80s shifting to a multi-year contract. We have a lot fewer one-year contracts. There is a slightly higher churn rate on those as we would expect, but in totality, our gross dollar retention is probably the best metric to look at on that front.

然後，關於一年內的客戶流失，正如我們所說，我們一直密切關注這個問題，實際上客戶流失率也與計劃保持一致。請記住，這是一個規模小得多的人才庫，80 年代中期開始轉為多年合約。我們的一年合約少了很多。正如我們預期的那樣，這些客戶的流失率略高，但總體而言，我們的總美元保留率可能是這方面最好的衡量指標。

In totality, gross dollar retention is right at about 90% for the total company. If we exclude EVERFI, we're actually at 92%, which is up from where we were a couple of years ago on the Social Sector side. So we feel really good on how we're doing on the retention front and also what we're getting on pricing on those contracts.

總體而言，整個公司的總美元保留率約為 90%。如果我們排除 EVERFI，我們的實際比例是 92%，這比幾年前社會部門的比例有所上升。因此，我們對我們在保留方面的表現以及我們在這些合約的定價方面所獲得的結果感到非常滿意。

I don't know if there's really anything on the contractual side that causes us to expect to have a slightly lower growth rate on the social sector business. It's really transactional related. Last year, if you recall, we had really high growth because of viral events in Q3 and Q4. I think we ended up a year at almost 11% on the social transactional growth rate.

我不知道合約方面是否真的有什麼因素導致我們預期社會部門業務的成長率會略有下降。這確實與交易有關。如果你還記得的話，去年我們因為第三季和第四季的病毒式事件而實現了非常高的成長。我認為我們今年的社交交易成長率接近11%。

Our historical is kind of 6% to 7%. We're running right at 6.5%, 7% right now year-to-date, I believe. And so we're, I think, humming along pretty well on transactional. We just haven't seen the viral that we saw last year and really haven't had no meaningful viral yet this year and aren't planning for any for the remainder of the year, Rob.

我們的歷史成長率是 6% 到 7%。我認為，今年迄今為止，我們的成長率約為 6.5% 到 7%。所以我認為，我們在交易方面進展得相當順利。我們只是沒有看到像去年那樣的病毒式傳播，而且今年實際上還沒有發現任何有意義的病毒式傳播，而且今年剩餘時間也不打算再發現任何病毒式傳播，羅布。

Great, awesome. Okay thanks, I appreciate it.

太棒了，太棒了。好的，謝謝，我很感激。

Absolutely.

絕對地。

Brian Peterson, Raymond James.

布萊恩彼得森、雷蒙詹姆斯。

Hi guys. Thanks for taking the question. So Tony, maybe following up on that, how do we think about maybe the long-term growth trajectory of the transactional business, kind of absent any of these viral events, which we can't predict. I know Mike talked about mid-single digit growth, but we would love to understand how you are thinking about kind of the contractual recurring versus transactional as we look at that outlook.

嗨，大家好。感謝您回答這個問題。所以托尼，也許可以跟進一下，我們如何看待交易業務的長期成長軌跡，在沒有任何我們無法預測的病毒式事件的情況下。我知道麥克談到了中等個位數的成長，但我們很想了解，在我們看待這種前景時，您如何看待合約經常性成長與交易性成長。

Yeah, Brian, thanks. The transactional side of the business, like I said, it’s grown 6% to 7%. That’s kind of the norm for us for several years. I would expect that's a good kind of assumption to make for your models for the longer term.

是的，布萊恩，謝謝。正如我所說，業務交易方面成長了 6% 至 7%。多年來，這對我們來說已經成為常態。我希望這對於您的長期模型來說是一個很好的假設。

When we talk about having some call options for upside, I think that's where if we have some big viral events in a given period would drive that growth rate up like we saw last year in Q3 and Q4. I think also with some of the newer transactional innovation that we're rolling out across the platform and the portfolio, we could have some higher growth rates in the future as those programs start to get some traction.

當我們談論一些上行看漲期權時，我認為如果我們在特定時期內發生一些大型病毒式事件，就會推動增長率上升，就像我們去年第三季度和第四季度看到的那樣。我還認為，隨著我們在平台和產品組合中推出一些較新的交易創新，隨著這些項目開始獲得一些關注，我們將來可能會實現更高的成長率。

But right now, I think somewhere in that 6% to 7% rate is a good assumption to make modeling for transactions. Hence, we're kind of saying mid-single digit overall, because I think once we've lapped the pricing initiative, the new contract initiative, we're seeing growth rates more in the 6.5% to 7% rate on the contractual social. So I think that somewhere in that ballpark is probably a really good assumption for your models.

但目前，我認為 6% 到 7% 之間的某個比率對於建立交易模型來說是一個很好的假設。因此，我們總體上認為成長率在個位數的中間，因為我認為，一旦我們實施了定價計劃和新合約計劃，我們將看到合約社會保險的成長率在 6.5% 到 7% 之間。因此我認為，對於您的模型來說，這個大概的某個假設可能是一個非常好的假設。

Hey, Brian, I want to add, is one of the things we announced at bbcon in our product and innovation section was a new solution called Payment Assist, which is a brand new product in the transaction space for us. And we're essentially monetizing accounts payables for our customers and eliminating checks, which we've never done before. It's going to take a while for that to build, but it is a brand new product in the transaction space for us.

嘿，布萊恩，我想補充一下，我們在 bbcon 的產品和創新部分宣布的一項新解決方案是名為 Payment Assist 的新解決方案，這是我們在交易領域的一個全新產品。我們實際上是將客戶的應付帳款貨幣化並取消支票，這是我們以前從未做過的。雖然建立這個功能需要一段時間，但對我們來說，這是一個交易領域的全新產品。

Absolutely.

絕對地。

No, great color there, guys. Maybe just to follow-up on EVERFI, I know you've given a ton of detail there, but we'd love to understand, with you guys right-sizing some of the costs there. How should we think about the margin profile of that business versus the core Blackbaud accretive, dilutive inline. Just we'd love the perspective there. Thanks, guys.

不，夥計們，那裡的顏色很棒。也許只是為了跟進 EVERFI，我知道你們在那裡給出了大量的細節，但我們很樂意了解，你們如何正確調整那裡的一些成本。我們應該如何看待該業務的利潤率狀況與核心 Blackbaud 增值、稀釋性利潤率的關係。我們只是喜歡那裡的景色。謝謝大家。

Yeah Brian, even with the rightsizing, it's still dilutive. We've done such a great job of getting our margins up. As you know that business, because of the shortfall in revenue, even with right-sizing, the cost structure is still going to be dilutive on the bottom line and from a cash flow perspective.

是的，布萊恩，即使進行了適當的調整，它仍然具有稀釋性。我們在提高利潤率方面做得非常出色。如您所知，由於收入不足，即使採用適當規模，從利潤和現金流的角度來看，成本結構仍然會稀釋業務。

I would say we've seen some very positive signs here very recently on some new wins. And maybe Mike, you could talk about a couple of those. I do think that we saw some significant decline in that business over the last couple of years, but that does feel like we're starting to bottom out.

我想說，我們最近看到了一些非常積極的跡象，並取得了一些新的勝利。也許麥克，你可以談談其中的幾個。我確實認為，過去幾年我們看到該業務出現了明顯下滑，但感覺我們已經開始觸底了。

I don't know that we're completely there yet, but Mike, maybe you mentioned a couple of the new wins that we've seen, because we've seen some nice new appetite in the market on EVERFI.

我不知道我們是否已經完全達到了這一目標，但麥克，也許你提到了我們看到的一些新勝利，因為我們看到市場對 EVERFI 有一些不錯的新需求。

Yeah, Brian, just a reminder, EVERFI is 7% of our business, just to make sure everyone understands that. And yeah, we took some pretty substantial cost out of it recently, so the run rate is a lot better to go forward.

是的，Brian，提醒一下，EVERFI 占我們業務的 7%，只是為了確保每個人都理解這一點。是的，我們最近從中節省了一些相當大的成本，因此未來的運行率會好得多。

And to Tony's point, over the last quarter, we've had some really nice EVERFI renewals, new logo wins, a couple I'll mention, Truth Initiative Foundation, NASCAR, Guardian Life, Sterling Check, and there's many more too. Those are new logos or expansions in the last quarter.

正如Tony 所說，在過去的一個季度中，我們與EVERFI 進行了一些非常出色的續約，並獲得了新標誌，我要提到的有真相倡議基金會(Truth Initiative Foundation)、NASCAR、Guardian Life 、Sterling Check，還有很多其他的。這些是上個季度的新標誌或擴展。

So I don't want folks to think it's all doom and gloom with EVERFI. We are looking at alternatives with Goldman Sachs. I mentioned in my prepared remarks, we're pretty aggressive there. We are addressing the EVERFI drag on the performance, but there are some upsides there related to the marketplace reception in some of these logos.

所以我不想讓人認為 EVERFI 的前景一片黯淡。我們正在與高盛一起尋找替代方案。我在準備好的發言中提到過，我們在這方面相當積極。我們正在解決 EVERFI 對效能造成的拖累，但其中一些識別在市場接受度方面也存在一些好處。

I appreciate the color. Thanks guys.

我很欣賞這個顏色。謝謝大家。

Sure, Brian.

當然，布萊恩。

Parker Lane, Stifel.

帕克巷，斯蒂費爾。

Yeah, hi, guys. Thanks for taking the question this morning. Mike, if you could focus in on the six waves of innovation. I know you mentioned the Payment Assist earlier, but what is resonating the most or what resonated the most at your conference with the customers that you spoke with?

是的，大家好。感謝您今天上午回答這個問題。麥克，請您重點談談六波創新浪潮。我知道您之前提到過付款協助，但是您在會議上與客戶交談時，最能引起共鳴的是什麼？

And how should we think about the benefit of this innovation? Is this going to be better growth retention in the business? Do you expect individual shoots of upside across subscription and payments? How should we just think about the financial benefits of Blackbaud?

我們該如何看待這項創新的益處呢？這是否會對業務成長保持更好的影響？您是否預計訂閱和付款方面會出現單獨的上漲？我們該如何看待Blackbaud的財務利益？

Yeah, sure. We announced a lot of things at bbcon. Details are on our website as well. So, from areas like embedded AI and solutions like Raiser's Edge NXT, to better integration and interoperability, which allows us to sell more modules and cross-sell to existing customers.

是的，當然。我們在 bbcon 上宣布了很多事情。詳細資訊也在我們的網站上。因此，從嵌入式 AI 和 Raiser's Edge NXT 等解決方案等領域，到更好的整合和互通性，我們能夠銷售更多模組並向現有客戶交叉銷售。

Some future capabilities with Financial Edge NXT, Payment Assistant is just one of them. Better integration, partnership with Constant Contact. So they are going to be a great marketing partner, marketing platform partner for us. We already have a lot of shared customers. So we announced that at the conference as well.

Financial Edge NXT 的一些未來功能，支付助手只是其中之一。更好地整合、與 Constant Contact 合作。所以他們將成為我們優秀的行銷合作夥伴和行銷平台合作夥伴。我們已經有很多共同客戶。所以我們也在會議上宣布了這一點。

So, all of these innovations are really just our kind of focus on continuing to earn the right for these contract renewals and getting new logos. And so, their reception at bbcon was just outstanding.

因此，所有這些創新實際上只是我們的重點，即繼續贏得這些合約續約和獲得新標誌的權利。因此，他們在 bbcon 上的接待非常出色。

And because it's recorded, we'll have thousands and thousands of more customers looking at all that information, in addition to folks that actually attended at the conference in Seattle. So our engineering team and product teams are just doing a great job in driving innovation.

而且由於資訊被記錄下來，除了實際參加西雅圖會議的人員之外，還會有成千上萬的客戶查看所有這些資訊。因此，我們的工程團隊和產品團隊在推動創新方面做得非常好。

Good to hear. Tony, you mentioned the gross retention improvement now sitting around 90%, 92x EVERFI. Just wondering, as you look at the new pricing and contracting structure, clearly benefiting there, but what could that look like over the next few years? Is that the right way to think about the business or could that perhaps even continue to be more of a tailwind going forward to the top line?

很高興聽到。東尼，您提到總留存率改善目前已達到 90% 左右，即 EVERFI 的 92 倍。只是想知道，當您看到新的定價和承包結構時，顯然從中受益，但未來幾年會是什麼樣子？這是思考業務的正確方式嗎？

Well, I think, Parker, where we're really seeing the benefit of the pricing is on the net retention because of the uplift. And we don't give net retention numbers publicly, but I can tell you, our net retention has bumped up nicely with the new contract initiative.

嗯，帕克，我認為，我們真正看到定價的好處是由於定價上漲而帶來的淨留存率。我們不會公開公佈淨留存率的數字，但我可以告訴你，隨著新合約計畫的實施，我們的淨留存率有了很大的提升。

The gross, as you recall, we're looking at kind of where were those customers prior year and then did they renew? We're not giving any credence to any of the uplift in the gross dollar retention.

您還記得，我們​​正在關注去年這些客戶在哪裡，然後他們是否續約？我們不相信美元總留存率有任何提升。

So I do feel good. I think our initiatives that we've done over the last several years with customer success, the work we've done in the area of customer support, you know, Mike was just speaking about all the innovation we're doing. I think that really speaks to the gross dollar retention. And I'm kind of hopeful we'll stay in that – you know something north of 90% would be our intention as a company on the gross dollar.

所以我感覺很好。我認為，我們過去幾年來為客戶成功而採取的舉措，以及我們在客戶支援領域所做的工作，你知道，麥克剛才談到了我們正在進行的所有創新。我認為這確實說明了總美元保留率。我希望我們能維持這個水準——作為一家公司，我們的目標就是將總收入提高到 90% 以上。

Understood. Thanks again, guys.

明白了。再次感謝大家。

Matt VanVliet, BTIG.

馬特·範弗利特（Matt VanVliet），BTIG。

Yeah, good morning. Thanks for taking the question. I guess first on the EVERFI side, just trying to understand, are you seeing just a number of kind of downsizes upon renewal and just a lack of new deals there or is there a meaningful amount of true logo churn going on there for decisions on their own customer side?

是的，早安。感謝您回答這個問題。我想首先從 EVERFI 方面來說，我想了解的是，你們是否看到續約後規模縮減，以及缺乏新交易，或者是否存在大量真正的標誌流失，以決定他們的自己的客戶端？

Yeah, hey Matt. It's a little bit of both in the last couple of years. You know, the market pressed pause, I guess, in that space a little bit. We have a big footprint, I'll give you an example, in financial services, specifically in banking.

是的，嘿，馬特。過去幾年裡，兩種情況都有所表現。您知道，我想，市場在那個領域稍微暫停了一下。我舉個例子，我們在金融服務，特別是在銀行業有著很大的影響力。

And some of the regional banks pulled back. Silicon Valley Bank was a customer for example. So there was some pullback a little bit in financial services and some shifts in program spend. So it's been a little bit on the renewal and expansion side and on the new booking side.

一些地區性銀行也撤出了業務。例如，矽谷銀行就是其客戶之一。因此，金融服務出現了一些回落，專案支出也出現了一些轉變。因此，這與更新和擴展方面以及新預訂方面有一點關係。

But remember, EVERFI'S got thousands of customers. And in the three years EVERFI's been a part of Blackbaud, I've met hundreds of customers myself, and everyone is enamored with the product and solution. There's just been some macro pullback in the space, which has caused the business to have it struggle from a growth. In fact, it's going backwards a bit.

但請記住，EVERFI 有數千名客戶。在 EVERFI 成為 Blackbaud 一部分的三年裡，我親自會見了數百名客戶，每個人都對產品和解決方案著迷。該領域剛剛出現了一些宏觀回調，導致業務成長陷入困境。事實上，它有點倒退了。

But it's not all doom and gloom. I just mentioned a bunch of logos. We've got Goldman Sachs on the case here to work with us. So we'll resolve this problem. We just took some costs out. We are focused on making sure it's not a drag on the company. Again, it's 7% of the total, but we're working on it, and I think we'll have some outcomes to announce hopefully in the next period of time.

但並非一切都那麼悲觀。我剛才提到了一些標誌。我們已與高盛公司合作處理此案。所以我們將解決這個問題。我們只是減少了一些成本。我們致力於確保它不會成為公司的拖累。再說一次，這佔總數的 7%，但我們正在努力，我認為我們有望在下一階段宣布一些成果。

And then how has that impacted the YourCause in the foundation side of the business? How's that been progressing so far?

那麼這對 YourCause 的基礎業務有何影響？目前進展如何？

Yeah, YourCause is actually doing really well. EVERFI has not impacted YourCause, and so we're doing really well on YourCause. A lot of great new logos there. It's organically growing, frankly accretive to the rest of the social sector. So it's a part of corporate impact. Again, EVERFI is 7% of the company.

是的，YourCause 確實做得很好。EVERFI 並未對 YourCause 造成影響，因此我們在 YourCause 方面做得非常好。那裡有很多很棒的新標誌。它正在有機地增長，坦率地說，它對社會部門的其他部分具有增值作用。所以這是企業影響的一部分。再次，EVERFI 佔該公司 7% 的股份。

YourCause is doing really well. It's a very sticky platform. We've got over 16 million employees on the platform. So lots of Fortune 500 customers, good pipeline. YourCause is doing well.

YourCause 做得非常好。這是一個非常具有黏性的平台。我們的平台上有超過 1600 萬名員工。因此有很多財富 500 強客戶，良好的管道。你的事業進展順利。

Thank you.

謝謝。

You're welcome.

不客氣。

Thanks, Matt.

謝謝，馬特。

Kirk Materne, Evercore.

柯克·馬特恩（Kirk Materne），Evercore。

Yeah, thanks very much. Mike, I was just curious, on the contractual recurring business, just bookings in that area. How are they looking, I guess relative to plan? It seems like things are going along well. I was just wondering if you could add maybe a little bit more color there on just sort of net new relative to sort of the new pricing on the renewal side.

是的，非常感謝。麥克，我只是好奇，關於合約經常性業務，只是那個地區的預訂。我猜相對於計劃來說，他們看起來怎麼樣？看起來事情進展得很順利。我只是想知道您是否可以添加一些關於淨新品相對於續約方面的新定價的詳細資訊。

Yeah, we don't break out the micro of bookings, but net new logos are actually doing really well year-over-year. They are up nicely in the new logo side, and we've really shifted the teams more to new logos in the last 12 or 18 months. That shift of the older products like in Raiser's Edge and Financial Edge to the cloud solutions is largely behind us now.

是的，我們沒有公佈預訂的具體細節，但新淨標誌的數量實際上逐年增長。他們在新的標誌方面表現得很好，而且在過去的 12 到 18 個月裡，我們確實將更多的團隊轉向了新的標誌。Raiser's Edge 和 Financial Edge 等舊產品向雲端解決方案的轉變現在已基本成為過去。

We've only been selling cloud solutions for years, but we've had some customers on the older licensed type products, and that's a really tiny part of what's left. So a big shift to new logos, and that's going well. Sales productivity is up. I mentioned a bunch of higher ed new logo wins in my prepared remarks, and we expect that to continue.

多年來，我們只銷售雲端解決方案，但我們也有一些使用舊版授權類型產品的客戶，而這只是剩下的極小一部分。因此，新標誌發生了巨大變化，而且進展順利。銷售效率提高。我在準備好的發言中提到了許多高等教育新標誌的成功，我們希望這種情況能持續下去。

The predominant softness in bookings is EVERFI. I mentioned YourCause, you know, bookings are going pretty well also.

預訂量中主要的疲軟因素是 EVERFI。我提到了 YourCause，你知道，預訂情況也相當不錯。

Okay, great. And then, Tony, can you just remind us, I'm sorry, you might have mentioned this last quarter, but the divested, the non-recurring services business that was divested for EVERFI, what -- how big of a drag on sort of growth in the corporate side was that this quarter, or how is it factored into the 12% down this year?

好的，太好了。然後，東尼，你能提醒我們一下嗎，抱歉，你可能在上個季度提到過這一點，但是為 EVERFI 剝離的非經常性服務業務，對公司造成了多大的拖累？本季度的多少？

Kirk, when we revised our guidance Kirk at the end of Q1 for that divestiture, and it was about $6 million a revenue that we took out for the year.

柯克，當我們在第一季末修改了該資產剝離的指導方針時，我們當年的收入約為 600 萬美元。

Thank you for the reminder. I appreciate it. Thank you all.

謝謝你的提醒。我很感激。謝謝大家。

Okay everyone, I think that's the end of the questions. I want to thank everyone for joining us today. We'll be attending a number of investor events to include several investor conferences in November and December, which are now listed on our investor relations site. Of course, I'm always happy to speak to you directly, and we look forward to speaking with you soon, and have a nice day!

好了，各位，我想問題到此結束了。我感謝大家今天的出席。我們將參加一系列投資者活動，包括 11 月和 12 月的幾場投資者會議，這些活動現已列在我們的投資者關係網站上。當然，我總是很高興直接與您交談，我們期待很快與您交談，祝您有美好的一天！

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

今天的電話會議到此結束。現在您可以斷開您的線路。感謝您的參與。