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.
Andrew Lange does not own shares in any of the securities mentioned above. Find out about Morningstar's editorial policies.