Chad Anderson on customer diversification
From Blackbaud (BLKB) CFO On Fundraising & Engagement Solutions · · Schwab Network
“We sell into a broad set of customers including higher education institutions, private K-12 schools, normal charities, nonprofits, and Fortune 500 corporations for corporate social responsibility. This diversification really helps us, and because our systems are core systems of record, customers can't afford to be without our solutions even in tough economic cycles.”
On , Chad Anderson, Executive Vice President & Chief Financial Officer at BLACKBAUD INC, spoke about customer diversification during Blackbaud (BLKB) CFO On Fundraising & Engagement Solutions on Schwab Network.
About Chad Anderson
In a September 2024 interview, Blackbaud CFO Tony Boor discussed the company’s position in the nonprofit and social impact software space. He stated that Blackbaud has served that sector for over 40 years, with 40,000 customers and approximately $1.1 billion in annual revenue. Boor noted that the company has implemented a new pricing strategy, moving customers from annual to multi-year contracts of three to seven years, and has increased prices due to inflation, while renewal rates have improved. He said that about 97% of revenue is recurring, and the company expects a drag from shifting away from one-time services to SaaS offerings to bottom out next year, guiding for mid to high single-digit growth. Boor also commented on giving trends, stating that overall U.S. giving exceeded $500 billion for the first time during the pandemic, though it was down slightly last year. He noted that about 36% of all giving occurs in the fourth quarter, with 20% in December, and that Blackbaud co-founded Giving Tuesday. Boor emphasized the diversification of the company’s customer base, which includes higher education, K-12 schools, charities, and Fortune 500 corporations, and described its software as critical systems of record that customers rely on even during economic downturns.