Q1 2024 Blackbaud Inc Earnings Call
Ladies and gentlemen, good morning, and welcome to the Black box first quarter 'twenty 'twenty four earnings conference call.
At this time all participants are in a listen only mode.
A brief question and answer session will follow the formal presentation.
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As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host Kevin Mooney, EVP corporate strategy and business development.
Operator: Please go ahead Sir.
Kevin W. Mooney: Good morning, everyone. Thank you for joining us on Blackboards first quarter 2024 earnings call joining me on the call today are Mike <unk>.
Blackboard, CEO, President and Vice Chairman.
Tony Boor, Blackboard as executive Vice President and CFO Mike.
Mike and Tony will make prepared comments and then we'll open up the line for your questions.
Please note that our comments today contain forward looking statements subject to risks and uncertainties that could cause actual results to differ materially from those projected.
Please refer to our most recent Form 10-K, and other SEC filings for more information on those risks.
The discussion today will focus on non-GAAP results. Please refer to our press release and the Investor materials posted to our website for the full details on our financial performance, including GAAP results as well as full year guidance.
We believe that a combination of both GAAP and non-GAAP measures are more representative of how we internally measure our business.
Otherwise specified we will refer only to non-GAAP financial measures on this call. Please note that non-GAAP financial measures should not be considered in isolation from or as a substitute for GAAP measures before.
Kevin W. Mooney: Before I turn the call over to Mike I'd like to mention that notice of our 2024 annual meeting of stockholders and proxy statement were filed on April 23rd and our annual meeting materials were posted to our Investor Relations website that same day with that I'll turn the call over to you Mike.
Mike: Thank you Kevin.
Mike: Thank you for joining our call today.
I would just like to quickly start with a comment on the clear Lake proposal to.
Mike: To be clear Blackboard Board and management team are 100% committed to maximizing shareholder value.
Execution on our five point operating plan has redefined the trajectory of the company and is fueling positive operating and financial performance and substantial free cash flow.
We are confident black box strategy and ability to deliver significant value.
Mike: The board is continuing to review clearer lakes proposal with this in mind, we will provide an update to the market in due course.
Now turning to the operations of the business I'd like to cover three primary topics today.
Mike: One.
Mike: Our continued execution on the Companys five point operating plan and the strong performance, we're delivering as a result.
Two our current thinking with respect to select elements of our portfolio and three an update on our progress with respect to the company's capital return program.
As we've discussed the past few quarters, we're very focused on our five point operating plan to improve product innovation accelerate bookings growth optimize transactional revenue modernize contract renewals and improved cost management.
The team has been executing against this program and it has transformed the financial performance of the company or.
Over the past year alone, we have delivered adjusted EBITDA growth of 25%.
non-GAAP EPS growth of 28% and adjusted free cash flow growth of 240% year over year in the first quarter.
Mike: Strong performance across the business in the first quarter reinforces our confidence we grew the top line expanded adjusted EBITDA margins and generated significant free cash flow, which is enabling both substantial capital returns to shareholders and investments that drive product delivery in it.
Blackboard as a much stronger company than it was just one year ago. It remains the clear market leader and their social impact software market.
Mike: We believe that we are well positioned for the future and our goal of achieving the rule of 40 for the full year is.
As you'll recall, we achieve rule of 41 quarter ahead of expectations, we expect to deliver rule of 40 for the full year in 2024, a more than 300 basis point improvement over 2023.
Now I'd like to turn our attention to the team's fantastic product innovation and feature delivery that was rolled out this quarter. The team has been busy the pace of innovation is accelerating and customers are enthusiastic about what we're offering.
Our focus has been on two areas, specifically generative AI and enhancements that continue to improve the connectivity of our suite of solutions.
These enhancements are aimed at improving fundraising outcomes, while reducing the administrative burden of our end users.
As discussed previously we released a number of AI capabilities over the past few quarters, including new Gen AI functionality for our Justgiving platform.
This quarter, we rolled out <unk> capabilities for raisers edge, NXT and before long Blackboard co pilot will be available to our raisers edge NXT customers.
Using black box co pilot users can ask AD hoc questions such as how can I improve my average donation size.
And the tool will provide intelligent responses as well as recommended actions to drive that outcome.
Mike: This past quarter, our online, giving and prospect insights capabilities, we're natively integrated into raisers edge NXT with these integrations fundraising administrators can now drive a viral giving campaign keep records of each down your interaction identify new donation opportunities.
And provide personalized messaging all in one integrated experience.
And finally last quarter I mentioned, our new optimized blackboard donation forms were coming to raisers edge NXT.
As of this quarter, we have a few hundred customers signed up and running with nearly a 1000 more experimental and it's early days, but we expect these forms to drive higher revenue for our customers and for blackboard.
We include these exciting new features in our products at no additional cost to increase the value our customers receive from their existing subscription.
We are delivering more innovation evolving our products and ensuring our customers receive more value from our solutions.
Now onto another element of our five point operating plan bookings growth and acceleration.
I'd like to highlight several interesting customer wins from the quarter that illustrate not only what customers want a unique ability to serve this demand as the market leader with the most comprehensive and purpose built solutions set in the industry.
Five cities homeless coalition based in Grover Beach, California helps families and individuals by providing the housing resources and support they need to become self sufficient productive community members, which started as a simple replacement of its financial management tool became a multi solution sale.
Well that also included fundraising and payment processing by signing on a blackboard five cities can now streamline their financial operations and reporting and focus on expanding their fundraising to meet the needs of the community they serve.
Mike: Another way in the quarter and a new logo was Carl Sandburg College, which serves the educational needs of western and Central Illinois. They were looking for a system that could run fundraising accounting and scholarship management with a long term goal of increasing student enrollment blackboard was uniquely positioned to provide this suite.
[noise] of offerings in one simple platform.
Mike: And also during the quarter, we upgraded the National Coast Guard Museum to a new solution.
Mike: The organization is in the groundbreaking phase of their brand New Museum slated to open in 2026 on the waterfront of New London, Connecticut.
In preparation for their opening the museum selected Black box purpose built solution for general admission organizations. All true. This was an upgrade on their current Blackrock solution, which was instrumental in the initial campaign phase and illustrates our commitment to helping organizations through the full lifestyle.
Mike: All of their operational and fundraising needs.
Now I'll discuss how we're thinking about our portfolio.
After careful evaluation, we decided to divest EVAR five creative agency services business in the U K. This business was not a strategic fit for the company and their revenue was onetime in nature, we continuously evaluate our product portfolio to ensure we are driving profitable growth and share.
Holder value.
Turning to an update on our stock repurchase program the.
The significant adjusted free cash flow growth. We delivered in 2023 is continuing in 2024, even though the first quarter tends to be a seasonal low for adjusted EBITDA. Our adjusted free cash flow was up 38 million year over year, which demonstrates the leverage of our business model.
Our strong cash production together with capacity on our credit facility.
Allowed us to make a healthy start on our share repurchase program.
As you will recall.
We are committed to repurchasing between 7% to 10% of outstanding stock in 2024, and we are well on our way to doing just that during the quarter, we executed and funded a $200 million accelerated share repurchase agreement together with open market purchases the company bought back nearly.
3 million shares this quarter, which represents approximately five 5% of our outstanding common stock as of year end 2023.
Mike: We believe stock repurchases are current prices represent a good return to our shareholders.
So it's been an active and successful quarter on many fronts.
Excited about the progress we've made in the first quarter. The team is hard at work across the business.
Innovating in our product offerings, increasing operational efficiency and taking our message to the market at blackboard offers intelligent impactful inflection tools to help customers thrive.
With that I'd like to turn the call over to Tony.
Tony: Thanks, Mike our business has undergone a significant financial and business transformation over the past year. Our five point operating plan has enabled us to accelerate recurring revenue growth into the high single digits, while dramatically improving our profitability as Mike discussed and our strong balance sheet has allowed us to begin returning cash.
Tony: To our investors in the form of stock repurchases looking to the future. We believe we can deliver long term profitable growth and shareholder value as we build on blackboard its market leading position.
With that I'd like to go a bit deeper into our first quarter financial results and share more color on the drivers of this performance.
Total revenue was $279 million and was up six 9% on an organic basis from the first quarter of 2023.
Tony: The social sector performed well with revenue growth approaching 9% within the social sector. Our contractual recurring revenues were $160 million in the quarter, representing 10% growth year over year. This area of the business is our largest revenue contributor and can you continue to ramp as the benefits from our modernized contract.
Renewal initiatives take hold.
Transactional recurring revenue and the social sector was $78 million and up seven 5% for the quarter.
The corporate sector, which represented 13% of total revenue in the quarter declined five 5%.
As we previously disclosed we expect revenue in the corporate sector to decline for the full year 2020 for this decline is solely driven by EVAR Fi as our Euro cross product continues to perform well EVAR Phi has faced macro headwinds in the form of tightening corporate CSR budgets, especially in the financial services market wherever fine.
Tony: Has a significant position.
Tony: We are working on plans for ever Fi to ensure it contributes to shareholder value.
Part of this work led us to divest the nonrecurring services business in the U K as Mike mentioned, we determined this was not a strategic fit for our business and we will continue to examine opportunities to align our profitable growth and value creation objectives.
Our nonstrategic onetime revenue represented less than 3% of total revenue in the quarter and it was.
There's about a half a point drag on our total revenue growth rate.
Overall, our revenue growth programs, which include bookings acceleration transactional revenue optimization and a modernized approach to renewal contracts are going well for the full year, we expect approximately half of our growth to come from bookings in transactions with the other half coming as a result of our modernized.
Renewal contract initiatives are modernized contract initiative will continue beyond the initial three year renewal cycle, creating a sustainable source of long term revenue growth.
We continue to make progress on our profitability initiatives, while also investing in strategic growth. Our total costs were down $1 million compared to last year and adjusted EBITDA was $89 million in the quarter up from $71 million in Q1 of 2023.
Tony: Adjusted EBITDA margin was a solid 31, 8% up from 27, 2% a year ago. As a reminder, the first quarter tends to be the seasonal low point for EBITDA in our fiscal year.
Our adjusted free cash flow of $53 million was exceptionally strong this quarter up $38 million year over year and demonstrates the leverage of our business model.
Tony: Using the strength of our balance sheet, we've been very active buying back stock both with the ASR in the open market, we fully funded the $200 million ASR in the first quarter using the available capacity on our existing debt facility and cash.
<unk> had an initial delivery of $2 1 million shares in the final share count will be dependent upon the stock price variability between now and the end of the program, which will be complete by the fourth quarter.
Since we began the buyback program in December of last year, we have now bought back a total of three 2 million shares.
Speaking of capital allocation and cash flow, we have a good amount of financial flexibility and just consummated a new five year credit facility with a total commitment of $1 5 billion.
Tony: Which is $400 million higher than the $1 1 billion facility. It replaced our target debt to adjusted EBITDA ratio is approximately two times and we ended the first quarter at about two seven times.
Due to the stock repurchase program and the divestiture of EVAR Fi UK business. This past quarter, we are updating our financial guidance for the full year to reflect these two transactions. This guidance merely reflects a $6 million revenue reduction from the divestiture, which we expect to modestly improve our.
Our organic growth rate for the year to seven 4% at the midpoint as well as a lower share count and higher interest expense associated with stock repurchase activity. Specifically, we now see revenue in the range of $1 billion $164 million to $1 billion $194 million.
And then due to the recent stock repurchase activity, we have decreased our fully diluted share count range to 52 million to 53 million shares and increased our interest expense range to 48 million to $52 million.
Our full year guidance ranges for adjusted EBITDA margin and adjusted free cash flow are unchanged again. These updates are from the strategic transactions of the first quarter only and there is no change to our full year guidance stemming from the operations of the business.
As Mike said, we're off to a good start for 24 with a disciplined focus on managing costs, while also investing strategically in enhancing our market leading products for our customers. The work we've done around our five point operating plan has resulted in improved financial results and we're focused on providing enhanced value to our customers and.
And our shareholders with that let's open up the line for your questions.
Thank you.
Speaker Change: Ladies and gentlemen, we will now be conducting a question and answer session.
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Ladies and gentlemen, we will wait for a moment, while we poll for questions.
Great. Good morning, Thanks for taking my questions. The first one is just on the refi asset spinoff and then on ever find more broadly I would be curious to know what it was about that asset in particular I think you guys said it was a U K only that.
No.
That drove the decision.
I've asked.
If there is any impact on every five broadly and then love to just hear about five or five broadly how how it did this quarter if theres any.
Turn in the business at all and then I had a quick follow up.
Sure Hey, Rob it's Mike Good morning.
Mike: <unk> UK business, just wasn't a strategic fit for us.
It's a nice small business, but it's not a reoccurring revenue business.
One time.
Project type business, which is really more of like a creative services business and not a software business. So it really wasn't a fit given who blackboard is so we decided started this work a while ago and closed on the divestiture.
That as you can imagine theres more work going on related to <unk> also remind you ever Fi is a subset of the corporate impact side of blackboard. The other major component is your cost which is actually doing pretty well.
And so that's the.
Reasoning behind the divestiture in the UK and it was only U K.
Mike: Revenue.
Speaker Change: Okay, Okay, great. Thanks, Mike and then Tony.
Just any color around some of the cost levers I mean, it looks like interest expense is now higher for you guys, but EBITDA margin free cash flow numbers, we're reiterating it. So just would love any color around those levers that you have and can.
Ken or are pulling.
Yes, Thanks, Rob were worst and still continuing to push on costs. As you are aware you can see that in the profitability and then the free cash flow for the quarter. So we've done a great job I think on that front with all the work we did in 'twenty two 'twenty three we're starting to see the fruit.
Lauren on those efforts, we're going to continue to focus on trying to run the business with something close to our existing head count so that should help with leverage perspective going forward. We still have a couple of data centers, we need to exit we're still got some duplicative costs on those fronts. So we've got some sales.
Still some some long term benefits, we should see coming through Cogs on those fronts.
And then again I think our new approach modernized approach to these contracts should drive improved growth on the top line that also falls through at a good clip to the bottom line. So I expect I know, we haven't given any guidance beyond 'twenty four but we would expect to see.
Speaker Change: <unk> continue to gain leverage on the bottom line and from a free cash flow perspective going forward.
Great excellent thanks, Tony Thanks, Mike.
Speaker Change: Hi, Rob.
Speaker Change: Yes.
Thank you.
Our next question is from Brian Peterson with Raymond James. Please go ahead.
And gentlemen, thanks for taking my question and then Tony I appreciate the disclosure on the revenue segments between the transactional recurring but maybe just a follow up to Rob's question as we think about the corporate opportunity. Obviously its very large we felt the divestiture I guess I'm just curious what's your investment posture and tons of product you can go to.
In that part of the segment right now, even though it's a big opportunity just curious where that risk versus some of the stuff on the social side.
Yes, I can take that we've got in the corporate side again.
The two primary platforms out of the amplify in the ear cards.
We have engineering investments in innovation investments going on there on both sides of the business.
So for example year Cogs, we've added several capabilities there.
Recently, including more international capabilities for larger global customers on the <unk> side, we keep focused on that.
K 12 space and there's innovation going on there.
And there is also an operating improvement plan.
Underway on EVAR by as you might imagine the UK divestiture was just one part of it that has since become public.
Speaker Change: More to do there. So it is a big opportunity we have a really unique asset.
The K 12.
Network, we have with EVAR Fi.
Speaker Change: In over 25000 schools.
Speaker Change: But again focused on an operating improvement plan with that business.
And our growth plan for for your costs.
So it might be I'd love to get an update on the demand environment. We're net new business perspective for the social sector anything on the pipeline deal cycles. What are you guys seeing there. Thank you.
Speaker Change: Yes, sure so deal cycles really haven't changed that much.
Speaker Change: The demand side is still good we keep expanding for example in the K 12 space.
Speaker Change: We're doing really well.
You heard in my prepared remarks, a lot of innovation going on.
With AI and other capabilities like our new donation forms.
And Theyre raisers edge NXT space, we keep driving a lot of innovation there.
We have most of our customers are signing three year contracts as we've talked about and so we feel like we need to keep driving a lot of innovation just to continue to earn the business to.
Speaker Change: To move customers to three year contracts and Thats, all really gone.
Quite well, we've had new innovation announcements and just giving platform.
Last year, including general AI, new capabilities that are in production there.
So you see a lot of innovation across the social sector in the different markets and platforms that we're in.
Speaker Change: Good to hear thanks, Mike.
Sure.
Thank you.
Our next question is from the line of Matt Vanvliet with <unk>. Please go ahead.
Yeah, great. Thanks for taking the question good morning.
Matthew David VanVliet: I guess on the last point when you talked about a lot of the <unk>.
Success in the K through 12 market.
Maybe can you break it down a little bit in terms of how much is signing new schools versus selling more products into the existing customer base as you've made a lot of those innovations.
Yes, sure. So we have our our sales teams are focused on.
New logos and cross selling and those are different teams.
Matthew David VanVliet: And there is a lot of that happening in K 12.
There's a lot of upside in just net new logos there.
Because we have a big portfolio in the K 12 market Theres a lot of upside in the cross sell because we cover pretty much the whole it spend of a school almost.
<unk> running their financials to fund raising to tuition management stood.
Student enrollment and classroom scheduling and student information system. So we cover quite a bit there have a pretty big footprint.
Fast growing part of our business, we've got good leadership there good innovation.
We've got a lot of partners in that space to that sort of our gap fillers and.
Services type relationships in that in that marketplace as well big presence in the conferences there.
We're really good reputation in that in that private school.
K 12 space.
Alright, very helpful and then.
Matthew David VanVliet: I guess looking at with the extension or the expansion of the credit facility and the fact that you've already generated such strong free cash flow here, what's an update on the M&A strategy going forward as first time, we've seen your sort of divest anything in a little while so just curious on how you're feeling about the current portfolio and maybe what areas.
As might be targets for a new M&A deals.
Yes, sure so theres still a lot of activity in our space and M&A.
We get a lot of inbound inquiries just given our history of M&A in our our footprint in this space.
Matthew David VanVliet: Social sector, there are still gaps we could show.
Matthew David VanVliet: Without without going far afield of where we currently play so near Adjacencies are out there.
And a lot of cases, we don't serve the smaller market, we're pretty much in that mid mid tier.
Enterprise market.
In the fundraising space.
Matthew David VanVliet: And so theres still a lot of smaller.
Cloud software companies out there that are typically typically founder led.
Matthew David VanVliet: Companies, probably VC funded.
Matthew David VanVliet: So there's still quite a bit out there.
Could represent opportunities we're not looking to do any large deals we're really focused on.
Our stock buyback program as you know and returning capital that way to shareholders, but we're still active in looking at opportunities in this space.
Matthew David VanVliet: Most of the things we look at we walk away from frankly from lots of different reasons.
Matthew David VanVliet: But there's still plenty to do there.
Great. Thank you.
Youre welcome.
Thank you.
Matthew David VanVliet: Our next question is from the line of backhaul Lane with Stifel. Please go ahead.
Jeffrey Parker Lane: Hey, guys. Thanks for taking the question this morning.
Jeffrey Parker Lane: Mike as you guys have worked through the 2023 and 2024 cohorts of customers that are taking the new and renewal pricing has that limited the ability or willingness to cross sell or up sell on their behalf or are you seeing pretty normal trends.
Jeffrey Parker Lane: Relative to what you had before.
Yes, no. It has not limited opportunities prevent its provided that prevented provided a lot of opportunities for discussion around that.
Jeffrey Parker Lane: With the contracts opening up.
Jeffrey Parker Lane: So it's not really changed our ability to cross sell is it's created a lot of discussion opportunities too.
We present, our portfolio to our customer base.
Jeffrey Parker Lane: We have a big focus on cross selling across all of our markets.
We've got upside in the transaction side of the business to cross sell those platforms tuition management.
And what we call the BNS.
Our existing base.
Jeffrey Parker Lane: There's a lot of white space in our existing base to cross sell those platforms. So the contract renewals and the move to three year contracts.
<unk> had an impact a negative impact on that at all I think it's been a positive impact because we're talking about.
Longer term contracts and looking at customer problems, we can solve with our portfolio.
Got it understood and then one day.
Tony: For you Tony.
Speaker Change: Microsemi, but a lot of generative AI enhancements coming to the platform, particularly co pilot for raisers edge NXT I don't believe you guys said, you're looking to drive additional revenue with these solutions. So I was just wondering if there'd be any impact to the cost structure for supporting degenerative AI features in your court solutions.
Yes. Good question those costs of the development work that we've been doing are already in the numbers youre seeing and so we've been able to expand margins and cash flow.
Pretty significantly inclusive of the investments we started making those investments.
Speaker Change: Dependent on the front at least a couple of years ago, some last year as well and those have been ramping.
Speaker Change: Our EBITDA and free cash flow performance is also very strong and consider we've got that incremental cyber spend to start ramping late last year continues to ramp through this year.
Speaker Change: Overall the performance is just really strong really feel really good about the free cash flow, we were able to hold the guide despite about a $14 million increase in interest expense for the year are associated with the buybacks or overall business I think is managing the cost structure side very well.
Other side and just keep in mind well many of these new enhancements will be included at no incremental charge within the product as Mike said, so that we continue to drive value. There are some that are that are incremental so anything like the donation forms and the complete cover models and those things those as we've spoken about before a win win for our customers and for us because.
Speaker Change: That means incremental revenue for our customer and incremental revenue for blackboard as well without a price increase so theres going to be some interesting benefits as those.
Take hold but the complete cover models are probably more so a 25% and forward we're starting to roll those out as you know now, but we will take a while to get those adopted across the customer set.
Makes sense appreciate the feedback thanks guys.
Thanks Mark.
Speaker Change: Yeah.
Thank you.
Evercore ISI: Our next question is from the line of my time with Evercore ISI. Please go ahead.
Yeah. Thanks, Congrats on the good start guys. Mike I was wondering if you can just talk about sort of the EVAR Fi I know you have a corporate sort of an operational improvement plan is the demand environment something that you can control right now or is it just corporate budgets for spending on services like EVAR fire, just tight and you're sort of at the mercy of that I'm just trying.
To get a sense, if we're getting closer to a bottom potentially in sort of a drag or how are you thinking about sort of the six to 12 months do you from a growth perspective there.
Speaker Change: Yes, there's still lots of interest in.
Corporations funding, what we view with EVAR Phi in K 12 schools, and we've announced some expansions in my prepared remarks in previous quarters.
So the corporate social responsibility budgets are still there in say the fortune 500.
Speaker Change: It's just where they deploy those budgets.
So the pressure we've seen there has predominantly been in the financial services space starting last year.
But the demand is still there and the interest is still there and what's interesting about the K 12 network. We have we bring that network and our reach and that capability to customers and prospective customers and theres a lot of interest at the CEO level of Fortune 500 companies and board level.
Speaker Change: Given the investments they do.
The bigger footprint is in financial services.
They are required to get back with our community Reinvestment Act.
It's a regulatory requirement.
So we're still a platform that is of interest there there are some shifts that happened in the last year, which caused the drag on the business.
We've got an operating plan underway across the amplify business.
We have an outstanding reputation.
Speaker Change: I've met a lot of customers in the last couple of years and they are very enamored with whatever Fi has built and delivers.
Speaker Change: Never been a question related related to that it's been more around where the CSR spend has been.
But we have a big footprint in financial services, we've got more opportunities there to grow the business with big customers and we're we're operating internally on our plan to make sure that business adds to shareholder value exiting the U K was a part of that.
Our organic growth went up because we divested the UK business for example, it.
It's a small business related to black box, but much higher percentage.
Speaker Change: Related to EVAR Fi when you think of EVAR Fi as a subset of the corporate impact revenue right. So every fi will grow more just because we exited the U K business.
Speaker Change: There's more to come on operating improvements in EVAR fine.
Speaker Change: And then just Tony one quick one for you in your in your presentation, you obviously called out this.
Speaker Change: This year in transactional recurring it's a tougher comp is there anything we should keep in mind from the seasonality perspective, along those lines, meaning when do you think that the global events last year, where there any quarters that we should just be thinking about that they'll have a bigger impact on growth. This year from a comp perspective. Thanks.
Yeah. Thanks, Craig that's a really good question. There is typical seasonality as everybody is aware on the transaction side of the business.
Typically the back half of the year, we do have some in Q2 as well with some of the efforts around the.
The schools in the school years and so forth.
At the end of year, given giving Tuesday, those kind of things typically will drive seasonality in the business.
Speaker Change: The difficult part for us to forecast and predict both from a cost and timing.
And length of tenure is the viral events that happened because of major events in the world last year to your point.
We had quite a bit of impact positive impact in the back half we spoke of that quite a bit on last quarter's call. We ended up that transaction business normally has a growth CAGR of somewhere in the 7% to 8% range per year in the last few years last year on a social impact side I think we came in at about 11% or 12%.
And that was largely driven by these we had more birol events and they were larger longer term viral events and what we had seen in recent years and so it's tough to predict we typically don't build those into our forecast.
It's going to make a tough compare this year because right now based upon forecast, we're not assuming any of those but not to say we won't have some viral events typically we have one or two a year.
Can't tell when that will happen so that'll be the wildcard for us this year.
Speaker Change: Yes.
Yes.
Some variances by quarter, we just did a press release for example on the London Marathon.
Speaker Change: And fundraising on our Justgiving platform, which had a lot of great growth that just happened in April.
So it's in Q2, but I think some of the stats there were 18000 fundraisers raised money for 7500 nonprofits and it was a really nice growth year over year those kinds of things are hard to predict how they would come out.
So the growth of those organically are sometimes hard to predict and also sometimes some of those move from quarter to quarter as well and you don't know about it until three or six months ahead of time, so it caused some variability quarter to quarter.
Okay. That's helpful. Thank you all.
Speaker Change: Thanks Kurt.
Speaker Change: Thank you.
Speaker Change: Ladies and gentlemen, how's that are no further questions I now hand, the conference over to Mike Giovanni.
Our Chief Executive Officer for his closing comments.
Thank you operator.
Michael P. Gianoni: Everyone when I reflect back on the past year. There are many aspects of our business that are far improved year over year, our pace of innovation has really increased.
Michael P. Gianoni: Our modernized approach to contract renewals is now well established and the majority of our customers are adopting the three year renewal terms, which is great on the profitability side. Our efficiency has increased and margins are expanding we've generated strong adjusted cash flow, we're actively returning capital to our.
Michael P. Gianoni: Investors through stock repurchases, our financial results has improved significantly over the past year and we expect improvement to continue in 2024.
As we progress through this year.
Focus is maintaining good momentum in the business executing improvement plans, where needed continuing to deliver strong financial results and world class solutions for our customers. Thanks, everyone.
Speaker Change: Thank you.
The conference of Blackboard has now concluded. Thank you for your participation you may now disconnect your lines.
Speaker Change: [music].
Yes.
[music].