Investor Presentaiton
Solid Q2 2023 with significant margin expansion
Revenue Year over Year
Rule of 40 Year over Year¹
$6.0
($3.8)
$271.0
$264.9
$3.9
Q2 2022
Revenue
Contractual
Recurring
Revenue
Transactional
Revenue
One-time
Services &
Other Revenue
Q2 2023
Revenue
Contractual
recurring
revenue
•
•
Transactional
revenue
•
31.9%
36.1%
Q2 2022
Q2 2023
Renewal pricing initiative continues to perform well
Expect contractual recurring revenue growth acceleration through
second half of year as we pass seasonal renewal high in June/July
and renewal price increases begin to compound
Continued strong performance from Tuition Management and Just
Giving in quarter
BBMS rate change bolstering donation processing revenue
Rule of 40 Highlights:
•
Four-point YoY improvement in Rule of 40 performance driven by significant
adjusted EBITDA margin expansion
Expect further Rule of 40 improvement through the second half of 2023 as renewal
pricing initiatives compound and revenue growth accelerates
One-time
services &
other revenue
•
•
Approximately 3% of total revenues in quarter, in line with
intentional shift in mix toward higher margin recurring revenues
More than one point of drag on organic revenue growth in the
quarter
•
Targeting 36.5% on Rule of 40 performance at the midpoint of 2023 FY financial
guidance, which will be a seven and a half-point improvement over 2022
1 Non-GAAP performance through 6/30/23. Rule of 40 at constant currency measured by non-GAAP organic revenue growth on constant currency basis plus non-GAAP Adjusted EBITDA margin shown on constant currency basis. Non-GAAP
adjusted EBITDA is defined as GAAP net income plus interest, net; income tax provision (benefit); depreciation; amortization of intangible assets from business combinations; amortization of software and content development costs; stock-based
compensation; acquisition and disposition-related costs; employee severance; restructuring and other real estate activities; costs, net of insurance, related to the previously disclosed security incident discovered in May 2020 (the "Security Incident" 24
and impairment of capitalized software development costs. Please refer to the appendix of this presentation.
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