Blackbaud, Inc. (NASDAQ:BLKB) Q3 2023 Earnings Conference Call November 1, 2023 8:00 AM ET

Company Participants

Kevin Mooney - EVP, Strategy and Business Development

Michael Gianoni - President and CEO

Anthony Boor - EVP, Finance and Administration and CFO

Conference Call Participants

Brian Peterson - Raymond James

Robert Oliver - Robert W. Baird

Parker Lane - Stifel, Nicolaus & Company

Kirk Materne - Evercore ISI

Matthew VanVliet - BTIG

Koji Ikeda - Bank of America Securities

Operator

Good day, and welcome to Blackbaud's Third Quarter 2023 Earnings Call. Today's conference is being recorded. I'll now turn the conference over to Kevin Mooney, Executive Vice President, Investor Relations. Please go ahead, sir.

Kevin Mooney

Good morning, everyone. Thank you for joining us on Blackbaud's third quarter 2023 earnings call. Joining me on the call today are Mike Gianoni, Blackbaud's President and CEO; and Tony Boor, Blackbaud's Executive Vice President and CFO. Mike and Tony will make prepared comments, and then we will open the lineup for your questions.

Please note that our comments today contain certain forward-looking statements subject to risks 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 of our financial performance, including GAAP results as well as full year guidance. 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 only to non-GAAP financial measures on this call. Please note that non-GAAP financial measures should not be considered in isolation from as a substitution for GAAP measures. With that I will turn the call over to you Mike.

Michael Gianoni

Thank you for joining the call today. I'm pleased to share that Blackbaud produced very strong results in the third quarter. Our performance accelerated as we continued to execute on our five point operating plan to improve product innovation, accelerate bookings growth, optimize transactional revenue, modernized contract pricing, and improved cost management. You may recall that on last quarter's call I suggested that our plan would deliver a one-two punch. First an improvement in profitability and second improved organic revenue growth. In the second quarter, the business delivered the first punch, much improved margins. This strong margin expansion continued in the third quarter with total cost, again, being below last year's level. We're continuing to aggressively manage our cost and margin going forward.