Blackbaud - Earnings Call - Q3 2025

Executive Summary

• Q3 2025 delivered mid-single-digit organic growth and stronger profitability: non-GAAP organic revenue +5.2%, adjusted EBITDA margin 35.4% (+220 bps YoY), and non-GAAP diluted EPS $1.10 (+$0.11 YoY).
• Revenue and EPS were modest beats versus S&P Global consensus: revenue $281.1M vs $279.2M*, EPS $1.10 vs $1.07*; EBITDA (non-adjusted) trailed consensus (actual ~$77.6M vs ~$98.6M*).
• Guidance reiterated for FY25 revenue, EBITDA margin and EPS; adjusted free cash flow guidance raised to $195–$205M from $190–$200M.
• Catalysts: bbcon unveiled 70+ embedded AI features and “Agents for Good” with monetization beginning in Q4, plus continued buybacks (YTD >5% of shares) and leverage reduction to 2.4x.

What Went Well and What Went Wrong

What Went Well

• Non-GAAP adjusted EBITDA margin expanded to 35.4% (+220 bps YoY), reflecting operational discipline; non-GAAP income from operations rose to $84.0M.
• Strong cash generation: GAAP operating cash flow $139.2M (49.5% margin); non-GAAP free cash flow $123.2M and adjusted FCF $125.1M (44.5% margin).
• AI innovation momentum and early monetization path: “Agents for Good” launched, with development agent enabling proactive donor management; monetization begins this quarter with expected bookings and modest revenue next year.

Quote: “Innovation continues to drive our clear market leadership and a widening competitive moat… we continue to make significant investments in AI” — CEO Mike Gianoni.

What Went Wrong

• GAAP revenue declined 1.9% YoY to $281.1M due to EVERFI divestiture (organic growth +5.2%).
• EBITDA (non-adjusted) below consensus: actual ~$77.6M vs ~$98.6M*, despite strong adjusted EBITDA; highlights analyst focus differences on adjusted vs unadjusted metrics.
• Interest expense headwind persists; full-year interest expected $66–$70M; G&A rose to $31.0M in Q3 from $27.5M YoY, reflecting investment and cost mix.

Transcript

Operator (participant)

Good day and welcome to Blackbaud's third quarter 2025 earnings call. Today's conference is being recorded. I will now turn the conference over to Tom Barth, Head of Investor Relations. Please go ahead, sir.

Tom Barth (Head of Investor Relations)

Good morning, everyone. Thank you for joining us on Blackbaud's third quarter 2025 earnings call. Joining me on the call today are Mike Gianoni, Blackbaud's CEO, President and Vice Chairman, and Chad Anderson, Blackbaud's Executive Vice President and CFO. Mike and Chad will make prepared remarks, then we will open up the line for your questions. Please note that our 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. The discussion today will focus on non-GAAP results. 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 is 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. With that, let me turn the call over to you, Mike.

Mike Gianoni (CEO, President, and Vice Chairman)

Thank you, Tom. Good morning, everyone. I'm pleased to say that Q3 was another quarter of very strong results across revenue, EBITDA, EPS, and cash flow. Blackbaud generated revenue of $281 million, which is 5.2% organic growth year-over-year, an adjusted EBITDA margin of 35.4%, up more than 200 basis points year-over-year, non-GAAP diluted earnings per share of $1.10, up 11% year-over-year, and particularly strong free cash flow of $125 million. These results continue to demonstrate the power of our people, the importance of our product offerings to our customers, and our widening moat as the market leader, providing the most comprehensive suite of purpose-built and mission-critical software for the social impact sector. Our solutions drive revenue and enhance employee efficiency, allowing our customers to spend more time focusing on what matters to them, making concrete improvements in the world through their vital social impact work.

Our end markets continue to demonstrate their resiliency. Annual charitable giving in the U.S. alone is nearing $600 billion, up more than 6% year-over-year. Recent technological advancements have amplified the value we can create for our customers and are changing the way we help them fundraise. AI is quickly becoming a fundraising standard with predictive analytics and personalization now essential for donor growth. Digital first has become the de facto method of donor engagement with hybrid events, influencers, and peer-to-peer fundraising requiring online and offline solutions. Corporate giving is at an all-time high, making it the fastest growing nonprofit revenue source over the last five years. Blackbaud sits squarely at the forefront of all these market trends. We continue to focus on three specific areas: acquiring new logos, driving innovation, and as a result, strengthening our customer relationships through selling additional solutions and renewals.

On top of these, we achieve higher profitability through operational discipline and efficiencies that continue to yield positive results. In regard to signing new logos, over the past year, I've highlighted a number of significant wins across many of our verticals. We continue to see meaningful cross-sell wins. Here are a few examples of why Blackbaud was the right choice for their organizations. St. Mary’s College of California is recognized as one of the top five universities on the West Coast and was a major new logo win. They had been using another legacy system, and after a detailed review of the power and capabilities of Raiser's Edge NXT, they signed a multi-year agreement to meet their fundraising goals. Additionally, Concordia College based in Minnesota was a large cross-seller for us.

They signed a five-year agreement to purchase Raiser's Edge NXT, along with our added analytics capabilities to produce more robust data-driven fundraising campaigns. Concordia's advancement and research team selected us because no other company can provide the depth and capabilities around data to better engage with existing and new donors. Our second primary focus is our relentless pursuit of innovation, where we continue to advance the industry standard. Last quarter, I discussed how our Raiser's Edge NXT transformation was in full effect, with hundreds of updates in the last quarter alone, along with other key developments and partnerships driving deeper product differentiation and abilities for our customers. This quarter, we continue to deliver even greater innovation. This was showcased in early October at bbcon 2025, our annual customer event.

With over 2,000 people in attendance and many more virtually, we began the conference by outlining all of last year's six waves of innovation and how we've delivered on those commitments. We then unveiled what's coming next: powerful sector-specific AI capabilities fueled by our unmatched data embedded directly within Blackbaud Solutions. Among the 70+ planned or available AI enhancements are predictive AI that's helping customers identify billions of dollars in untapped giving potential, generative AI-powered acknowledgements that are speeding and enhancing communication with supporters, and the ability to chat with Blackbaud AI as a coach and assistant that will unify insights across business offices. At bbcon, we also launched our new agentic AI suite, Agents for Good, to help social impact organizations expand their teams with virtual team members and achieve more at scale.

This suite of agents from Blackbaud will turn agentic AI into active teammates that autonomously execute complex, high-value work under the oversight of a human manager, freeing up teams across fundraising, finance, corporate impact, and more. The first Agents for Good, a development agent natively embedded within the trusted Blackbaud environment, will enable teams to identify and steward donors they do not have the capacity to reach today, unlocking new revenue streams at a fraction of the cost possible in the past. A number of early adopter customers highlighted their use of our new development agent to crowded rooms at bbcon 2025. They discussed the great potential for agentic AI in the social impact sector to help customers unlock new levels of effectiveness and deeper connections across critical fundraising operations. The customer reaction to these announcements was positive and energetic.

We frequently had standing room-only crowds for our demos and Q&A sessions. We know our customers prioritize value, ease of use, and proven outcomes. We know that the social impact sector as a whole requires solutions that will harness the power of these new technologies to drive their success. Our AI solutions will deliver on both of these fronts. We continue to emphasize our operational rigor to drive increased profitability and strong cash flows. Our Q3 and year-to-date results are a strong testament to that discipline. Additionally, Chad will discuss some investments we've made to support future profitable growth, as well as some cash benefits related to tax changes in the One Big Beautiful Bill. Let me conclude by offering what you can expect from Blackbaud in the future.

We believe Blackbaud is a sound investment choice that has the potential to create substantial shareholder value, a belief that is supported by our strong 2025 year-to-date performance. As a reminder, the framework we're targeting going forward includes mid-single-digit plus organic revenue growth, EBITDA growth in excess of revenue growth, double-digit diluted EPS growth, and driving very strong free cash flow to empower a purposeful capital allocation strategy. Our near-term capital allocation priority remains stock repurchase, especially at current valuations. We expect to remain an active purchaser of Blackbaud stock in the fourth quarter and beyond. We are increasing our stock repurchase target from 5% to 5.2% to 7% for 2025. Chad will provide more of the specifics on our plans across these metrics in his guidance section. We look forward to continuing this journey and offering our shareholders increasing value in the coming years.

With that, let me turn the call over to Chad.

Chad Anderson (EVP and CFO)

Thank you, Mike, and good morning, everyone. Blackbaud continues to be well-positioned for long-term success, delivering consistent growth and visible profitability. As Mike outlined, Blackbaud executed well in the third quarter, a strong follow-on to our Q1 and Q2 performance. We remain committed to providing investors an attractive financial model balanced between growth and revenues, earnings, and cash flows, along with a prudent and purposeful capital allocation strategy. Mike walked through the high-level Q3 results, which tell a story of consistent mid-single-digit top-line growth, improved profitability, and strong free cash flow. To reiterate, Q3 organic revenues were up 5.2% to $281 million, a result of solid contractual recurring revenue growth and continued strength in our transactional recurring revenue lines. Adjusted EBITDA of $100 million was up nearly $5 million, with a 220 basis point improvement to margin.

Improved revenue and EBITDA margin speak to the power of the company's five-point operating plan, which continues to positively impact earnings per share. Non-GAAP diluted EPS increased to $1.10 compared to $0.99 last year, an 11% increase year-over-year. Adjusted free cash flow was $125 million, up from $98 million last year, representing adjusted free cash flow growth of 28% year-over-year. Our strong free cash flow generation gives us confidence to continue significant investment in a number of critical areas like product innovation, stock repurchases, and debt repayment. In the third quarter, we repurchased approximately 460,000 shares, bringing our year-to-date total through the third quarter to nearly 2 million shares. Including net share settlement of employee stock compensation, this represents approximately 5.2% of the company's common stock outstanding as of December 31st, 2024.

This buyback activity continues to demonstrate our strong belief in the value of Blackbaud, and as Mike mentioned, we expect to be an active purchaser of Blackbaud stock in the fourth quarter and into 2026. Additionally, leverage decreased to 2.4x in the third quarter compared to 2.7x last quarter and 2.9x in Q1. Before I move to guidance for the remainder of 2025, there are several housekeeping items that I wanted to highlight that may influence our numbers and help you set your models for both the year and upcoming quarters appropriately. Thinking about revenue seasonality, our transactional revenue can create fluctuations from quarter to quarter, with Q4 typically being our highest revenue dollar quarter. Our annual merit increases for employee compensation went into effect on July 1, so Q3 and Q4 tend to have higher compensation-related costs compared to Q1 and Q2.

We continue to analyze the implications of the July tax law changes and believe it will meaningfully reduce cash taxes for the company through 2027. We have updated our 2025 free cash flow guidance to include the anticipated cash tax benefit for this year, and we'll share more on the estimated benefit to 2026 free cash flow when we provide formal guidance in February. We made a number of meaningful incremental investments in the third quarter tied to product innovation and future growth drivers, including accelerated investment in the development of our agentic AI offerings. We estimate these incremental investments will total approximately $7 million between the third and fourth quarters and are contemplated in our full year 2025 guidance. Finally, the company identified a prior period non-cash error related to the year-end 2024 calculation of the valuation allowance in accounting for income taxes.

The correction of this, along with other immaterial prior period errors, resulted in immaterial impacts to our previously filed financial statements. Further information can be found in our earnings press release and in our 10-Q once it's filed. Moving now to guidance for the remainder of 2025. Our guidance for the year assumes no material changes, positive or negative, in the current macroeconomic landscape. We are reiterating our guidance across all metrics for 2025, with the exception of increased free cash flow, as I noted previously. Regarding revenue, we are projecting revenue in the range of $1,120 million-$1,130 million, representing organic growth at the midpoint of approximately 5% on a constant currency basis. Shifting to profitability, we continue to focus on margin expansion opportunities while at the same time making investment in the business in key areas like innovation, artificial intelligence, and cybersecurity.

Therefore, we anticipate EBITDA margins of approximately 35.4%-36.2%. As a reminder, EVERFI's contribution to our 2024 EBITDA was approximately $10 million-$15 million. After adjusting for the estimated impact of the EVERFI divestiture, the midpoint of our EBITDA margin range implies approximately 7% growth in adjusted EBITDA dollars year over year. With the overall revenue and spend configuration I just outlined, we expect 2025 non-GAAP diluted EPS in the range of $4.30-$4.50. After adjusting for the estimated impact of EVERFI divestiture, the midpoint of our 2025 non-GAAP diluted EPS range implies an approximately 11% growth rate year over year. The combination of higher growth and better margin is expected to result in a rule of 40 at constant currency of 40.5% at the midpoint of guidance for the full year.

We continue to focus sharply on driving adjusted free cash flow and returning capital to our shareholders. For the year, we're increasing our adjusted free cash flow guidance to $195 million-$205 million. This increase is directly tied to the anticipated 2025 cash tax savings related to the One Big Beautiful Bill Act and net of the incremental innovation investments mentioned earlier. As we discussed earlier this year, there are approximately $60 million of one-time items in working capital fluctuations negatively impacting our 2025 free cash flow outlook that we do not expect to repeat in 2026. You can find more details on slide 24 of our investor deck. Moving to our capital allocation strategy, we continue to prioritize stock repurchase. In fact, since the fourth quarter of 2023, we have reduced our common stock outstanding by 10%.

We estimate that we will end 2025 with a weighted average diluted share count between 48.5 million and 49.5 million shares. To help you with your modeling, when you combine the nearly 2 million shares repurchased year to date with the planned future repurchases for Q4 2025 and 2026, we anticipate a preliminary range of 46.5 million-47.5 million weighted average diluted shares for next year. Regarding longer-term plans, we expect to continue to repurchase shares annually beyond 2026, as well as evaluate debt repayment and tuck in M&A. We have a lot to be proud of and a lot more to look forward to in Q4 2025 and beyond. As such, we remain focused on providing enhanced value to our customers and shareholders. At this time, I'll ask the operator, let's open up the line for questions. Operator?

Thank you. Ladies and gentlemen, if you would like to ask a question, please signal by pressing star one on your telephone keypad. If you are using speakerphone, please make sure your mute function is off to allow your signal to reach our equipment. Again, as a reminder, please press star one to ask a question, and please limit yourself to one question. Our first question is from Brian Peterson with Raymond James. Please proceed.

Brian Peterson (Financial Advisor)

Thanks, guys. Thank you for asking the quarter. Mike, I just wanted to follow up on some of the customer feedback post bbcon. I know there's a lot of buzz on AI and agentic functionality. How do you think about the adoption of agentic AI in the nonprofit space? As we're thinking about your monetization potential over the next few years, what do we think that could mean to revenue growth?

Mike Gianoni (CEO, President, and Vice Chairman)

Yeah, sure, Brian. Thanks. A lot of our bbcon, you know, main stage and breakouts was all about AI. We talked about 70 or so capabilities and products that we've announced, and they're going across the whole product portfolio. There's a lot of excitement there. We've already released several in our solutions. We have not yet monetized those. Some that we announced, we are going to be cross-selling those in this quarter. Brand new products like the development agent, for example, we have a solution called Prospect Insights. From an adoption standpoint to your question, around 40% of our customers on that platform adopted it pretty quickly, so there's adoption happening with these capabilities. We're also building the appropriate infrastructure, you know, for a multi-agent environment. We announced a catalog that we called Agents for Good, and the first product is the development agent.

There will be multiple new agentic AI solutions that will all be monetized and sold to the existing customer base and prospective new customers.

Brian Peterson (Financial Advisor)

Great. Thanks, Mike.

Mike Gianoni (CEO, President, and Vice Chairman)

You're welcome.

Operator (participant)

Our next question is from Rob Oliver with Baird. Please proceed.

Rob Oliver (Managing Director and Software Research Analyst)

Great. Thank you. Good morning. A question, Mike, is for you. You called out some of the new logo wins and cross-sells. I wanted to focus on the new logo wins since that's been one of the key tenets for you guys for growth over the next couple of years. Some nice logos. I was wondering if you could provide any color for us on those, particularly around contract size, anything you're seeing on that ACV size. You said multi-year engagements. Are these coming in at kind of the standard three years as well? When we might, and recognizing you guys have a lot of customers at 40,000, but that number really hasn't moved in a few years. When would we expect to see that this new logo push start to kind of move up that customer count? I had a quick follow-up for Chad. Thank you.

Mike Gianoni (CEO, President, and Vice Chairman)

Yeah, sure, Rob. We've got a big focus on new logos. I tend to talk about them on these calls every quarter and name a few. We're doing quite well with larger, you know, ARR deals, actually. We're seeing the average ARR go up in the last couple of years. We're positioned really well for the mid-tier and enterprise size customers. Given all the focus on innovation, we're actually adding more capabilities, which gives us an opportunity to drive more ARR with customers, especially when we combine multiple solutions in a single sale, if you will. The minimum is three years. We don't do contracts less than three years anymore. We started that, you know, a couple of years ago with the renewal program, which is also going really well. By the way, we'll be through 90% of that by the end of this year.

That's just a normal course of business for us now. We're still getting our price increases with those renewals that we've talked about before. Doing really well mid-tier and up. ARR is going up. We're doing more deals with multiple modules, if you will. One of the customers I mentioned, I think it was Concordia College, signed a four-year deal on that cross-sell. We have, I think, about 20% or more of our customers that are four years and longer on their contract length now, Rob, as well. The customer base has accepted quite well multi-year contracts when we started it several years ago. We're really pleased with that.

Rob Oliver (Managing Director and Software Research Analyst)

Okay, great. Appreciate that color. Chad, you mentioned the tax restatement. We'll run through that. Appreciate you calling that out. There was also some revenue reclassification. I just wanted to have you walk through what that was. I saw the note in the release, but also the rationale for why to reclass revenue now historically. It would be helpful. Thanks.

Chad Anderson (EVP and CFO)

Sure. Great. Thanks, Rob, and good morning. Just to reiterate, the revision was related to an immaterial non-cash error related to the year in 2024. That was related to the calculation of the valuation allowance for accounting for income taxes. It's a technical matter related to a limitation on net operating losses associated with deferred tax liabilities, then associated with goodwill. Rather complex, the correction of the error increased our income tax provision by the amount that we talked about. The corresponding decrease in 2024 was in net income. The correction of the error, along with the other immaterial prior period errors, was corrected. The decision to adjust the other immaterial errors is kind of best practice, if you will. Whenever you're going through a revision, again, kind of best practice to address those that are considered to be an error. We adjusted those.

For reference, the adjusting amounts related to revenue is somewhere south of $100,000. So immaterial, at the same time, we do take it very seriously. It has been contemplated in all of our guidance as well.

Rob Oliver (Managing Director and Software Research Analyst)

Great. Thanks, Chad.

Operator (participant)

Our next question is from Kirk Materne with Evercore ISI. Please proceed.

Kirk Materne (Senior Managing Director of Software Equity Research)

Yeah, thanks very much. Mike, maybe just going back to the first question a little bit on the agents. When do you think monetization of those could start for you? I assume it's sometime in 2026. Relatedly, if someone's on Raiser's Edge already and their data's in Raiser's Edge will their ability to get ROI from those agents be pretty quick? Meaning, once you're up and running with it, can you get value out of that pretty much immediately, or is there data remediation work necessary on the backend? Thanks.

Mike Gianoni (CEO, President, and Vice Chairman)

Yeah, so we are starting to sell those this quarter. We'll get some modest revenue. We'll get some bookings and modest revenue next year, but it'll ramp up. That's the first agent. We have plans for many agents. That development agent, the ROI is pretty clear. It's a fundraising agent, so it's pretty easy to take a look at the subscription cost to that related to, you know, revenue or donations raised. Yes, we anticipate that to be a pretty quick ROI for our customers. We already have early adopter customers using the solution, and some of those folks were nice enough to get on stage and speak at bbcon a couple of weeks ago. We expect to have a catalog of these agents across our different platforms. That's the first one out on Raiser's Edge NXT. That will be coming out on our enterprise CRM platform as well.

We're very excited about it, and so are our customers. It's a great opportunity for customers to be able to reach donors and drive new revenue for themselves where they don't have the capacity today to do that. I'll give you a quick example. Think of a university that might have 200,000 alumni and a handful of fundraisers that maybe can go after several thousand alumni. There might be 180,000 untouched alumni. This is an opportunity to drive revenue from sources that are sitting there, but they just don't have the scale and capacity to go after that revenue. This will augment their staff and be able to do that and get new revenue lines for them. The ROI will be quite clear. This first agent, the pricing model is a typical multi-year SaaS subscription model.

Kirk Materne (Senior Managing Director of Software Equity Research)

Okay. Chad, maybe somewhat just relatedly, just gross margins as you sell more agents. Is there anything to consider on that front? I realize it's really, really small right now from a revenue perspective, so the mix won't really move. Just how should we think about that conceptually?

Chad Anderson (EVP and CFO)

Yeah. I would say that you would have noted within our free cash flow raise for the quarter. We raised the cash flow guidance by $5 million across the range. That was contributed to the tax legislation net of incremental investment in innovation and AI. We're being calculated in regards to the investments. It's still early days relative to what the gross margins will be, but we expect that the gross margin impacts will be favorable. It's also important to say the opportunity relative to company EBITDA margins will also likely be positively influenced by AI-related investments as well, Kirk. Feeling good on that front.

Mike Gianoni (CEO, President, and Vice Chairman)

Yeah, Kirk, I'll just add to the gross margin question. I think we have a long runway to improve gross margins, not just tied to new products, but just tied to some of our internal initiatives to remove some legacy software that we run the company on in our data centers. We've got a couple of small data centers yet to be closed, which we're working on. We've got our build-out of our India office. It's helpful in that regard. We have many, many initiatives across the company using AI to run the company. As a software company, we're both a consumer and a creator of AI. As a consumer, we have a lot of solutions across pretty much every department that we're using. We've yet to realize measurable productivity improvements from the use of those AI solutions, but we will.

I think there's great productivity and scale opportunity with those going forward.

Kirk Materne (Senior Managing Director of Software Equity Research)

Thank you.

Mike Gianoni (CEO, President, and Vice Chairman)

Sure.

Operator (participant)

As a reminder, press star one on your telephone keypad if you would like to ask a question or have a follow-up question. Our next question is from Parker Lane with Stifel, please proceed.

Matthew Kikkert (Equity Research Associate)

Hi, this is Matthew Kikkert for Parker. Thank you for taking my questions. To start, I'm curious, after transactional revenue outperformance continued, what structural drivers are giving you confidence in a higher growth rate for this revenue stream going forward? To that point, were there any viral giving events in 3Q or that are expected in 4Q?

Mike Gianoni (CEO, President, and Vice Chairman)

Yeah, Matthew, thanks. This is Mike. We're doing really well across all three of our transaction platforms. We're winning new business, we're adding volume, and there were no viral events in the quarter. We had a really good quarter on the transaction platforms. It's all three of them, and they're a little bit different. Two are in fundraising, one's kind of consumer, JustGiving, the other is donation processing embedded in our fundraising solutions, and the last one is tuition management in our K-12 space. All three of them are doing well. We're expanding the footprint of those, we're cross-selling those, and just the fundamentals are doing really well there, without having viral events. We feel pretty good about the performance of those in the quarter and year to date and the trajectory of those going forward.

Matthew Kikkert (Equity Research Associate)

Okay, great. Secondly, as you continue to move toward Rule 45, what are the primary market expansion levers from here, and how much and when would you expect the India office investment to show ROI?

Mike Gianoni (CEO, President, and Vice Chairman)

Yeah, so I think you're going to, you know, what you can expect from us is sort of our year-to-date results going forward. We're going to keep driving the business to be mid-single-digit plus, you know, higher EBITDA, double-digit EPS. I mentioned earlier, we've got some cost takeout opportunities and infrastructure that we're working on. We've done a good job with that in the last several years. There's more to go there. We're going to have an impact on productivity using AI in the company to run the business. We're coming out with new solutions. You know, this agentic AI development agent I just talked about will be a great add to revenue and bookings in the future. We're doubling down on share repurchase. You know, if you go back two years, we repurchased 16% of our outstanding shares. That nets out at about 10% after stock-based comp.

That's a big priority for us as well. I think all those things together, you know, make up the profile of the business. That also includes a march toward a Rule 45.

Matthew Kikkert (Equity Research Associate)

Terrific. Thank you.

Mike Gianoni (CEO, President, and Vice Chairman)

You're welcome.

Tom Barth (Head of Investor Relations)

Okay, I think that's it for our questions today. Thank you, everyone, for joining us. We will be attending a number of investor events in November and December around the globe, actually, to include several investor conferences, which are listed on our events page on our investor relations site. We hope to see you and/or speaking with you soon. From all of us here at Blackbaud, we wish you good health and a great day. Thank you.

Operator (participant)

Thank you. This will conclude our conference. You may disconnect your lines at this time, and thank you for your participation.