Investor Presentaiton
2023 total company increased guidance
Expect accelerating financial performance every quarter in 2023
Metric
Total Revenue
Mid-Point
-
$1,095M $1,125M
$1,110M
Adjusted EBITDA Margin
30.5% 31.5%
-
31.0%
Diluted EPS
$3.63 - $3.94
$3.79
Adjusted Free Cash Flow
$190M $210M
-
$200M
Anticipating organic revenue growth
rate in the mid-single digits with
pricing initiatives across every revenue
stream
Near-term focus on pricing execution,
operational improvements and cost
control driving substantial margin
expansion
Targeting ~36.5% Rule of 40 at
constant currency at the midpoint of
guidance
Strong adjusted free cash flow
generation
Non-GAAP. Assumptions included in full year 2023 financial guidance: Non-GAAP annualized effective tax rate of 20%; Interest expense for the year of $37M - $41M; Fully diluted shares for the year in the range of 53M - 54M; Capital expenditures for the year in the range of $65M
to $75M, including approx. $55M to $65M of capitalized software and content development costs
In order to provide a meaningful basis for comparison, Blackbaud now uses non-GAAP adjusted free cash flow in analyzing its operating performance. Non-GAAP adjusted free cash flow is defined as operating cash flow less capital expenditures, including costs required to be
capitalized for software and content development, capital expenditures for property and equipment, plus cash flow, net of insurance, related to the previously disclosed Security Incident discovered in May 2020 (the "Security Incident"). For full year 2022, Blackbaud currently
expects net cash outlays of $25 million to $35 million for ongoing legal fees related to the Security Incident. In line with the Company's policy, all associated costs due to third-party service providers and consultants, including legal fees, are expensed as incurred. As of June 30,
2023, we have recorded approximately $50 million in aggregate liabilities for loss contingencies based primarily on recent negotiations with certain governmental agencies related to the Security Incident that we believe we can reasonably estimate. It is reasonably possible that our
estimated or actual losses may change in the near term for those matters and be materially in excess of the amounts accrued, but we are unable at this time to reasonably estimate the possible additional loss. Please refer to the section below titled "Non-GAAP Financial Measures"
for more information on Blackbaud's use of non-GAAP financial measures.
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