INVESTOR PRESENTATION March 2012

Transcription

1 INVESTOR PRESENTATION March 2012

2 FORWARD LOOKING STATEMENT Except for historical information, all of the statements, expectations, and assumptions contained in this news release are forward-looking statements that involve a number of risks and uncertainties. Although Blackbaud attempts to be accurate in making these forward-looking statements, it is possible that future circumstances might differ from the assumptions on which such statements are based. In addition, other important factors that could cause results to differ materially include the following: general economic risks; uncertainty regarding increased business and renewals from existing customers; continued success in sales growth; management of integration of acquired companies and other risks associated with acquisitions; risks associated with successful implementation of multiple integrated software products; the ability to attract and retain key personnel; risks related to our dividend policy and share repurchase program, including potential limitations on our ability to grow and the possibility that we might discontinue payment of dividends; risks relating to restrictions imposed by the credit facility; risks associated with management of growth; lengthy sales and implementation cycles, particularly in larger organization; technological changes that make our products and services less competitive; and the other risk factors set forth from time to time in the SEC filings for Blackbaud, copies of which are available free of charge at the SEC s website at or upon request from Blackbaud's investor relations department. All Blackbaud product names appearing herein are trademarks or registered trademarks of Blackbaud, Inc. Trademark Usage This presentation contains trade names, trademarks and service marks of other companies. We do not intend our use or display of other parties trade names, trademarks and service marks to imply a relationship with, or endorsement or sponsorship of, these other parties. 2

3 BLACKBAUD TODAY: POWERING BUSINESS OF PHILANTHROPY FROM FUNDRAISING TO OUTCOMES Global company focused on nonprofit software solutions Large and diverse customer base Broad suite of applications & solutions Strong financial profile Leader >26,000 customers >60 countries Address all segments all verticals from high-end to low-end 2011 revenue of $371M, up 14% YOY non GAAP OM of 21% 3

4 W H Y I N V E S T MARKET LEADER. LONG GROWTH RUNWAY. OPPORTUNITY Early stages of serving a $16.5B market POSITIONING Broadest and deepest product suite designed specifically for nonprofit organizations PERFORMANCE Attractive combination of scale, recurring revenue, growth, profitability and cash flow GROWTH Long growth runway with multiple drivers enterprise, mid-market back to base, low-end and international 4

5 EARLY STAGES OF SERVING A $16.5B OPPORTUNITY Market Segments Addressable Global Market Opportunity ENTERPRISE Target: 4,000 orgs Existing: 1,300 customers MID-MARKET MARKET Target: 86,000 orgs Existing: 26,000 customers LOW-END Target: 1.4M orgs Existing: 4,000+ customers $8B $8B $0.5B $16.5B 5

6 WHY INVEST IN BLACKBAUD? OPPORTUNITY Early stages of serving a $16.5B market POSITIONING Broadest and deepest product suite designed specifically for nonprofit organizations PERFORMANCE Attractive combination of scale, recurring revenue, growth, profitability and cash flow GROWTH Long growth runway with multiple drivers enterprise, mid-market back to base, low-end and international 6

7 NONPROFITS HAVE UNIQUE NEEDS REQUIRING TAILORED SOFTWARE AND SERVICES Unique needs Supporter relationship journey supporters don t fit into a sales pipeline, serve their cause in many ways Program mission / delivery nonprofits don t deliver units, they provide volunteers, meals, time Accounting / back office fund accounting isn t quickbook accounting Blackbaud delivers tailored software and solutions 7

8 BLACKBAUD PROVIDES BROADEST ARRAY OF SOLUTIONS Ticketing management Event management Student information systems Internet fundraising Data analysis and reporting tools Financial data and donor integration Cost accounting Tailored software and services Online interactive communities Campaign results tracking Financial management CRM Volunteer networks 8

9 CONVIO EXPANDS OUR PRODUCT OFFERING EVEN FURR Market leader in CRM capabilities Financial strength and scale 26,000 customers, vertical expertise Leader in online fundraising solutions Best-in-class SaaS capabilities 1,500 customers Comprehensive solution to make multi-channel supporter engagement a reality Expand our ability to serve online fundraising needs Expected to be accretive to non-gaap EPS in first twelve months following close of acquisition 9

10 UNIQUELY POSITIONED IN FRAGMENTED INDUSTRY Horizontal Apps 1 Sungard Vertical/Niche Tailored solutions for NPO X Modern technology X X Product breadth/depth X X Address all NPO verticals X X Focus on Enterprise X Focus on mid-market/low-end X X Note 1: Includes CRM, MSFT, ORCL 10

11 WHY INVEST IN BLACKBAUD? OPPORTUNITY Early stages of serving a $16.5B market POSITIONING Broadest and deepest product suite designed specifically for nonprofit organizations PERFORMANCE Attractive combination of scale, recurring revenue, growth, profitability and cash flow GROWTH Long growth runway with multiple drivers enterprise, mid-market back to base, low-end and international 11

12 ATTRACTIVE PERFORMANCE PROFILE Consistent long-term revenue growth + Growing recurring revenue stream + Diversified revenue streams Strong profitability Powerful cash flow

13 1. CONSISTENT TRACK RECORD OF GROWTH $M $400 14% $371 CAGR $300 Revenue $200 $166 $100 $ Maintenance Subscription Services, license, other 13

14 2. FAST GROWING RECURRING REVENUE STREAM Mix of Revenue (2011 breakdown) Consistent, Solid Growth (recurring revenue) Services 31% 34% Maintenance 20% CAGR $234M 5% Licenses Other 2% 27% Subscription $78M

15 3. DIVERSIFIED REVENUE STREAMS Revenue by Vertical Revenue by Business Unit Faith-Based Other 6.1% 18.8% 21.9% Healthcare International 8% Other 2% 40% Enterprise Customer Family & Human Services 19.2% 7% 9% 18% Higher Education General Markets 49% Arts & Cultural Independent Schools 15

16 4. GROWING OPERATING INCOME, STRONG REBOUND IN 2011 $45.7M $76.5M Up 14% in

17 5. RECORD OF USING STRONG CASH FLOW TO ENHANCE SHAREHOLDER VALUE Cash Flow 2011 CFFO margin of 23% Dividend and share repurchase program $0.48 per share dividend 2011 Total repurchases of $88M since 2006 $50M remains available in share repurchase program Strategic acquisitions 9 acquisitions last 5 years, total of $172M (1) Add new products and technologies or expand client list Enter new markets 17

18 WHY INVEST IN BLACKBAUD? OPPORTUNITY Early stages of serving a $16.5B market POSITIONING Broadest and deepest product suite designed specifically for nonprofit organizations PERFORMANCE Attractive combination of scale, recurring revenue, growth, profitability and cash flow GROWTH Long growth runway with multiple drivers enterprise, mid-market back to base, low-end and international 18

19 GROWING WITH EXISTING AND NEW CUSTOMERS Original Core Product Raiser s Edge Education Edge Financial Edge 19

20 1. INCREASE PENETRATION OF MID-MARKET The Opportunity Large Cross-Sell Opportunity Significant opportunity to leverage Blackbaud unique expertise Opportunity to expand to new relationships with smaller orgs with limited non-profit resources Low capital, personnel budgets Number of customers 26k GMBU excellent performance New offerings, new packaging and promotions New offerings grew from $0 in 2009 to $20M in 2011 Number of our products used by most customers 1 20

21 2. EXPAND IN ENTERPRISE MARKET TARGETING AN $8B OPPORTUNITY The Opportunity CRM Customer Growth Targeting largest 4,000 nonprofits Need for multi-channel engagement to increase donations CRM Suite tailored to multi-site enterprise accounts 23 new customer wins in 2011, up 60% over prior record Customer references in each major non-profit sector Total bookings >$100M 21

22 3. EXPAND IN LOW END OF MARKET 1.4M ORGANIZATIONS IN US One person organizations Leverage success made to date, expand Web-based and SaaS offerings to meet unique needs at a cost these organizations can afford These organizations have the same need for nonprofit expertise as larger orgs, but in a package they can quickly consume and implement 22

23 4. GROW INTERNATIONAL BUSINESS SIGNIFICANT OPPORTUNITY OUTSIDE U.S. The Opportunity Growth in International Revenue ($M) Currently 4,500 diverse customers in market of 5.5M orgs Increasing our focus and resources through: improvements in leadership targeted acquisitions (RLC, EDH) expanded operations to enable go-to-market strategies $22 $ % of total revenue and growing 23

24 BLACKBAUD WELL POSITIONED FOR LONG-TERM Sustainable low to mid-teens organic growth plus selective acquisitions Revenues of ~$1B Extended leadership in both Enterprise CRM and online funding solutions for nonprofits Next generation of mid-market on SaaS platform Best-in-class operating margins Strong free cash flow 24

25 W H Y I N V E S T MARKET LEADER. LONG GROWTH RUNWAY. OPPORTUNITY Early stages of serving a $16.5B market POSITIONING Broadest and deepest product suite designed specifically for nonprofit organizations PERFORMANCE Attractive combination of scale, recurring revenue, growth, profitability and cash flow GROWTH Long growth runway with multiple drivers enterprise, mid-market back to base, low-end and international 25