We believe that Blackbaud (BLKB) holds an entrenched leadership position in the social good community. The company provides market-leading software that supports nonprofits, healthcare organizations, and educational institutions. Its pedigree as a leading on-premises software provider has changed in recent years, with management committing to a cloud-based business model transition. Although we expect some near-term lumpiness in financial performance due to the transition, we think the company’s ability to maintain its industry-leading longevity remains secure and we see better lifetime value from customers as they move to Blackbaud’s cloud platform.
We think that Blackbaud is the only end-to-end vendor in its niche, fragmented markets. This end-to-end approach also simplifies the management and integration issues that often face the social good community. We believe Blackbaud’s full suite of offerings is a strong point of differentiation versus numerous small competitors and gives the company an advantage when selling to large, complex customers.
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Andrew Lange does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.