Blackbaud Acquires YourCause To Grow Addressable Market

According to a survey by NetChange on technology use by the not-for-profit sector, only a modest 11% of the nonprofit organizations feel that their approach to digital technology is effective. Nonprofits need specialized consulting, direction, and, at times, tools to manage their businesses effectively. Blackbaud (Nasdaq: BLKB) is one player who has remained focused on helping nonprofits reap the benefits of cloud technology.

Blackbaud’s Offerings

Blackbaud was founded in 1981 with a mission to provide software and services designed for nonprofit organizations to help these businesses establish strong relationships. It is the leading cloud software company that provides software, services, expertise, and data intelligence that helps empower nonprofit organizations and connect them to others to drive impact for social good.

When I met with its CTO, Mary Beth Westmoreland, a few years ago, she helped highlight the key focus areas of the company. Blackbaud is empowering the growth of nonprofits by helping them realize the importance of data and analytics, workflow mobilization, and by building an ecosystem of openness. It has been focused on enabling innovation through the cloud so that people can develop something different and leverage the cloud to do more things.

Today, Blackbaud’s offerings include technology solutions for analytics, financial management, fundraising and relationship management, grant and award management, marketing and engagement, organizational program management, payment services, and social responsibilities.

Blackbaud’s Financials

Blackbaud earns revenues through maintenance and subscription-based services for its software and by providing one-time services to its clients. Its recently reported second-quarter revenues grow 5.5% to $226.4 million, ahead of the market’s forecast of $224 million. Adjusted EPS of $0.66 was also better than the Street’s forecast of $0.55. Adjusted net income declined 3.4% to $31.9 million. The company attributed the decline to the continued investment in new sales representatives and a higher interest expense on additional debt funding used to finance the YourCause acquisition. It believes that the dilution of earnings is a short-term impact.

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Sramana Mitra is the founder of One Million by One Million (1M/1M), a global virtual incubator that aims to help one million entrepreneurs ...

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Bill Johnson 1 year ago Member's comment

If only I knew this before it was announced!