Blackbaud expands payment solutions for social impact

CHARLESTON, S.C. - Blackbaud (NASDAQ: BLKB), a prominent software provider for social impact with a market capitalization of $2.97 billion and annual revenue of $1.16 billion, has launched Blackbaud Integrated Payments. According to InvestingPro data, the company’s stock is currently trading near its 52-week low, suggesting potential value opportunity for investors interested in the social impact technology sector. This expansion of their payment processing capabilities is designed to offer a comprehensive "Payments-as-a-Service" experience to social impact organizations. The service, which builds on the functionality of Blackbaud Merchant Services, now allows third-party software providers that integrate with Blackbaud’s Payments API to process transactions such as donations, tuition, and ticket sales.

The new solution aims to simplify and enhance the donation processing experience. Jerry Needel, Blackbaud’s chief of product innovation, emphasized the flexibility Blackbaud Integrated Payments offers, allowing organizations to choose point solutions tailored to their needs without compromising reliability or donor experience. This innovation comes as the company demonstrates solid revenue growth of 4.53% over the last twelve months, despite challenging market conditions.

Blackbaud Integrated Payments promises an optimized checkout experience, automated credit card updates, fraud detection, recurring gift retention, simplified reconciliation, and centralized transaction reporting. It supports transactions through various third-party software solutions, including auctions, text-to-give, and event ticketing, with plans to expand throughout 2025.

One of the early adopters, North Carolina Coastal Federation, has integrated text-to-give capabilities using Blackbaud Partner GivBee. Kelly Bodie, the federation’s membership director, praised the integration for its powerful donor engagement and back-office simplification.

Other Blackbaud Partners, like Almabase and Pledge, have also started leveraging the Payments API. Almabase touts the integration as a win-win for customer experience, while Pledge CEO James Citron sees it as a means to accelerate innovation and amplify impact in the social good sector.

Later this year, Blackbaud plans to roll out an Expedited Giving feature through the YourCause platform, which will speed up the distribution of donations from corporate giving programs to nonprofits.

Blackbaud’s announcement is based on a press release statement and underscores the company’s commitment to empowering social impact organizations with enhanced fundraising and financial operations capabilities. With earnings scheduled for April 30, 2025, and analysts expecting improved profitability, investors seeking detailed analysis can access comprehensive financial metrics and additional ProTips through InvestingPro’s exclusive research reports, which offer deep-dive analysis of over 1,400 US stocks including Blackbaud.

In other recent news, Blackbaud reported its fourth-quarter 2024 earnings, revealing an earnings per share (EPS) of $1.08, which surpassed expectations, but revenue fell short at $302.2 million. The company’s full-year 2024 revenue reached $1.155 billion, indicating a 5.2% organic growth rate. Despite these earnings, Blackbaud’s initial free cash flow guidance for fiscal year 2025 was set lower than anticipated due to several one-time factors, including a lease termination and strategic investments in India. Evercore ISI initiated coverage on Blackbaud with an In Line rating, citing no immediate catalysts for valuation change, while Raymond James maintained an Outperform rating with a price target of $95. Blackbaud’s 2025 revenue guidance ranges from $1.115 billion to $1.125 billion, slightly below consensus estimates. The company plans to repurchase 3-5% of its outstanding shares in 2025. Blackbaud is also focused on AI-driven innovations, such as BLKB Copilot, to drive future growth.

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