Q4 2024 Blackbaud Inc Earnings Call
Stuck at Home Part Two
Good day, and welcome to Blackbaud's fourth quarter and fiscal year 2024 earnings conference call. Today's conference is being recorded. I'll now turn the conference over to Tom Barth of Investor Relations. Please go ahead, sir. Good morning, everyone. Thank you for joining us on Blackbaud's fourth quarter and full year 2024 earnings call.
Joining me on the call today are Mike Gianoni, Blackbaud's CEO, President and Vice Chairman, and Tony Boor, Blackbaud's Executive Vice President and Chief Financial Officer.
Mike and Tony will make prepared remarks and then we will open up your line for your questions.
Please note that our comments today contain forward-looking statements subject to risk 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 gap and non-gap measures are more representative of how we internally measure our business.
unless otherwise specified.
Mike Gianoni: 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. And with that, let me turn the call over to you, Mike.
Thank you, Tom. Good morning, everyone.
Mike Gianoni: Before I dive into our results, I wanted to quickly touch on EverFi. We closed the divestiture of EverFi business on December 31st.
Mike Gianoni: As you know, EverFi was dilutive to both our revenue growth and profitability in 2024. We're pleased to advance into the new year with this deal closed and are looking forward to focusing on what we do best.
Mike Gianoni: Heading into 2025, we are concentrating on our core BlackBlood business, and our financial guidance and go-forward results will not include EverFi.
Mike Gianoni: Turning to the rest of the business, I want to express how pleased I am with the progress Blackbaud has made over the past five years and highlight some key achievements from the past year.
Mike Gianoni: In 2024, we extended our position as a market leader, providing the most comprehensive suite of purpose-built and mission-critical software and services to the social impact sector.
Mike Gianoni: We continue to invest aggressively in innovation and partner with our extensive developer network to help our customers raise more money while enhancing and streamlining their operations.
Mike Gianoni: Our solutions allow customers to spend more time focusing on what matters to them, making a concrete difference through their vital social impact work. We remain the premier software partner across the social impact space.
Mike Gianoni: Our market leading innovation is a competitive differentiator and continues to drive sales. In 2024, we saw significant improvement in new logo wins, while also deepening our existing relationships with our list of approximately 40,000 customers.
Mike Gianoni: Last quarter, I highlighted several wins in the higher ed. vertical. In this quarter, I'll give you more in the K-12 education vertical, including Notre Dame High School, American Heritage Schools,
and San Diego Jewish Academy.
Mike Gianoni: These institutions, like those in higher ed and other verticals, valued our end-to-end workflow and innovation. We continue to be very focused on new logo growth across all of our industry verticals and are supporting this initiative through enhancements in sales and marketing programs.
Mike Gianoni: Let me spend a minute on some of our key AI initiatives.
Mike Gianoni: Blackbaud's Intelligence for a Good program integrates several machine learning and AI capabilities that help our customers streamline workflows, enhance efficiency, and achieve better outcomes.
Mike Gianoni: The machine learning features that focus on better prospecting have been adopted by over 5,000 Razor's Edge NXT customers.
Mike Gianoni: We've introduced generative AI features across multiple products, mainly for composing outreach communication.
Mike Gianoni: But in the current quarter, we'll be releasing Blackbaud Co-Pilot, which provides contextual responses to questions and drives actions.
Co-Pilot is an industry-leading innovation.
that only we could deliver.
Mike Gianoni: Thanks to our access to years of social good centric benchmark data and like the rest of the software industry we have started experimentation with agentic AI and the prospects across social corporate and education sectors are encouraging
Mike Gianoni: We're also leveraging AI to transform the way we work, cultivating opportunities that allow us to improve efficiencies.
Mike Gianoni: We continue to identify, experiment, and scale a range of successful solutions across marketing, customer success, and engineering to be an active innovator through applied AI.
Mike Gianoni: So when our customers or our own employees ask me if AI can help them, it's not a question of can, it does.
Now turning to our 2024 financial results.
For the full year 2024, BlackBard produced revenue of $1,155,000,000.00
Mike Gianoni: an adjusted EBITDA margin of nearly 34 percent, non-GAAP diluted earnings per share of $4.07, and a Rule of Forty score of approximately 39 percent.
Mike Gianoni: Revenues in our social sector grew 7% despite a strong FY23 comparison. And within social, contractual reoccurring revenue, the company's largest revenue line, was up 8%.
Mike Gianoni: Our second largest revenue line of social transactional recurring revenue grew six percent.
Mike Gianoni: Gross dollar retention, driven by the value our customers see using our solutions, was approximately 92% excluding ERIFI.
Mike Gianoni: Our adjusted free cash flow remained extremely strong at approximately $245 million, or 21% of revenue up from 19% in 2023.
Mike Gianoni: Our strong adjusted free cash flow gives us great confidence in continuing to invest in innovation as well as fuel our ongoing stock repurchase program.
Mike Gianoni: For 2024, the company bought back 10% of the common stock outstanding, and if you include the net share settlement on employee stock comp, the figure rises to 11%.
Mike Gianoni: In 2025, we intend to continue to aggressively repurchase between 3% to 5% of our outstanding shares.
Mike Gianoni: Our 2024 results are a reflection of our successful work in solidifying Blackfriars' attractive financial model over the past five years.
Mike Gianoni: Our revenue, margins, cash flows, and rule of 40 have improved significantly since 2020. I'd like to spend a minute outlining that success for you.
Mike Gianoni: Our organic growth rate in 2020 was 1.2%. In 2024, it was 5.2%. Our EBITDA margin in 2020 was 26.5%. In 2024, it was 33.7%.
Mike Gianoni: Our adjusted pre-cash flow margin in 2020 was 8.3%. In 2024 it was 21.2%.
Mike Gianoni: and Rule of 40 in 2020 was 27.7% and 2024 was 38.9%.
Mike Gianoni: This success is a result of a proven operating plan, continuous product innovation, refinement of our go-to-market programs, a focus on efficiencies and effectiveness, and a steadfast dedication
Mike Gianoni: for not only powering social impact, but centering it in all we do with both our customers and employees.
Mike Gianoni: Blackbaud's multi-year trajectory will also be built on these tenants and when combined with our future opportunities we see a clear path to becoming a rule of 45 company by 2030.
Mike Gianoni: Let me conclude with why BlackBaud continues to be a sound investment choice that we believe should create substantial shareholder value.
Mike Gianoni: Regarding organic revenue, you can expect mid-single-digit organic revenue growth plus.
Mike Gianoni: driven by visible and full reoccurring revenue streams targeting both new logos and the expansion of our installed base empowered by innovation.
Mike Gianoni: You can continue to expect a strong focus on cost and employee productivity to improve EBITDA.
Mike Gianoni: Additionally, our very strong free cash flow will drive a purposeful capital allocation strategy in 2025 and beyond, with a plan to buy back between 3 and 5 percent of common stock outstanding in 2025.
Mike Gianoni: We look forward to our continued journey and offering our shareholders increasing value in the coming years as we make progress against our Rule of 45 ambition by 2030.
Tony Boor: And as always, we thank our employees around the world for their commitment and dedication to make Blackbaud such a great company. With that, let me turn the call over to Tony.
Thanks Mike.
Tony Boor: I'm also pleased with our 24 results and our financial progression over these last five years. And I'm excited about the opportunities in front of us.
Tony Boor: We remain committed to providing investors an attractive financial model balanced between growth in revenues, earnings, and cash flows along with a prudent and purposeful capital allocation strategy.
Tony Boor: Mike walked through our 24 full-year results, which tells a strong story of improving top-line growth and dramatically improved profitability and cash flow since 2020.
Tony Boor: But to reiterate, full year 2024 organic revenues were up 5.2% to $1,155,000,000.
Tony Boor: Adjusted EBITDA of $389 million was up $32 million, with approximately a point-and-a-half improvement to margin.
Tony Boor: EverFi was approximately a two percentage point drag on total revenue growth for the year.
Tony Boor: Our ability to grow revenue and even the margin speaks to the power of our five-point operating plan which positively impacted earnings per share and adjusted free cash flows.
Non-GAAP EPS increased to $4.07 compared to $3.98 last year.
Tony Boor: Adjusted free cash flow was $245 million, up from $214 million last year, representing an adjusted free cash flow margin of 21.2%, compared to 19.3% in 2023.
Tony Boor: This increase is despite the negative impact of approximately $20 million in additional interest expense associated with our share repurchase program in 2004 and approximately $25 million increase in cash taxes due to improved profitability and a correspondingly higher cash tax rate.
Tony Boor: Our robust free cash flow gives us confidence to continue investment in a number of critical areas like product innovation and stock repurchases.
Tony Boor: We bought back 10% of the common stock outstanding as of the end of 2004, and if you include the net share settlement on employee stock off, the figure rises to 11%.
Tony Boor: Before I provide 2025 guidance, I want to set the table on several factors that will influence our numbers and help you set your models for both the year and the quarters appropriately.
Tony Boor: In 2025, we expect to continue to invest in our products and deliver innovative capabilities that our customers value, and we plan to refine our go-to-market capabilities to ensure we maximize new logo acquisition and expansion within our vast customer base.
Tony Boor: As Mike mentioned, we completed the sale of EverFi on December 31st of 24. EverFi contributed $85.5 million to 24 revenues, but will be excluded from our go-forward financial results and our 2025 financial guide.
Tony Boor: With EverFi divested, we will no longer report corporate sector revenue separately in 2025 and beyond. Your caused revenue will be included with the rest of our products in a single revenue line.
regarding costs associated with ever-fine divestiture.
Tony Boor: In February of 25, we made a one-time cash release payment of $28 million in connection with the release of our lease for office space in Washington, D.C., which was acquired as part of the acquisition of EverFi in December of 21.
Tony Boor: The remaining cost of the lease would have been $42 million and we expect it to provide a $3 to $3.5 million improvement to adjusted EBITDA on an annualized basis going forward.
Tony Boor: There was approximately $14 million of GAAP-only transaction costs related to the EverFi divestiture incurred in 2024. And lastly, the company finalized a non-cash impairment charge related to the EverFi asset group.
Tony Boor: The pre-tax charge was $390 million and within the range we previously announced.
Tony Boor: Additionally, the EverFi sale and impairment resulted in a tax benefit of approximately $110 million, partially offset by a tax valuation allowance charge of $47 million.
Additional details will be included in our 10-K.
Tony Boor: Thinking about revenue seasonality, recall that the fourth quarter is typically our highest revenue quarter, while the first quarter is our lowest due to timing and charitable giving and events throughout the year.
Tony Boor: Turning to profitability, Q1 tends to be our lowest quarter from a profitability standpoint due to the timing of expenses related to employee benefits and employee stock award vesting.
Tony Boor: Our annual merit increases for employee compensation go into effect on July 1st every year, so Q3 tends to have higher compensation related costs compared to Q2.
Tony Boor: Additionally, we anticipate two to three million dollars of negative impact to revenue and adjusted EBITDA for the year due to currency.
Tony Boor: Moving now to guidance. Our 2025 financial guidance assumes no material changes, good or bad, in the current macroeconomic landscape.
Tony Boor: So for the year, we are projecting revenue in the range of $1,115,000,000.
to $1,125,000,000.
Tony Boor: representing organic growth of 4.2% to 5.1% as reported or 4.5% to 5.4% on a constant currency basis.
Tony Boor: The midpoint of this range is approximately 2 percentage points less than our 24 growth rate excluding EBRFI and can primarily be explained by two factors.
Tony Boor: First, we discussed on last quarter's call, the third quarter of 24 represented the first period in which we lapped the renewal pricing uplift in a meaningful way, which drove lower growth rates in the third and fourth quarters of 24.
Tony Boor: This trend will continue on a full year basis in 2025 as we continue to lap prior renewal cohorts.
Tony Boor: Remember, while the renewal contracts have price escalators in years 2 and 3, the revenue is recognized on a straight-line basis. So for example, in a 3-year contract, the total contract value is divided by 36 and recognized evenly over the full term.
Tony Boor: And, to a lesser extent, we expect some modest softness in bookings near term as we have transitioned our sales efforts from migrations, which are now largely complete, to focus on net new logos as well as cross sales.
Tony Boor: As Mike mentioned, we saw some early success with this initiative as new local growth was up significantly in 2024. And lastly, we are not currently incorporating any anticipated viral giving in our guide, which is a change for past years.
Tony Boor: Shifting to profitability, we will continue to focus on margin expansion opportunities while at the same time making investments in the business in areas of innovation, artificial intelligence, product roadmaps, cybersecurity, and India-based tech talent.
Therefore, we anticipate EBITDA margins of approximately 34.9% to 35.9%.
Tony Boor: and with the overall revenue and spend configuration I just outlined.
Tony Boor: We expect 2025 non-GAAP EPS in the range of $4.16 to $4.35, or up 2 to 7% as reported year over year.
Tony Boor: The combination of higher growth and better margin is expected to result in a rule of 40 at constant currency of 40.4% at the midpoint of guidance for the full year, which is a 170 basis point improvement year-over-year.
Tony Boor: We continue to have a sharp focus on driving adjusted free cash flow and returning capital to our shareholders.
Tony Boor: For the year, we're guiding to adjusted free cash flow of $185 million to $195 million.
Tony Boor: The guidance range is inclusive of several one-time investments that will provide long-term benefits to the company and shareholders.
Tony Boor: including the $28 million cash release payment associated to Washington, D.C. office lease that I mentioned earlier and a one-time investment for a new office location in India that will provide access to high quality and cost-effective tech talent.
Tony Boor: And finally, we expect an approximately $15 million decline year-over-year due to other factors including the timing of certain working capital items and divestiture related costs. You can find more details on slide 24 of our investor deck.
Underlying these guidance ranges we have made the following assumptions.
Tony Boor: Non-GAAP annualized effective tax rate is expected to be approximately 24.5% unchanged from last year.
Tony Boor: Interest expense of the year is expected to be approximately $65 to $69 million, compared to $56 million in 2024.
Tony Boor: Fully diluted shares for the year are expected to be approximately $48.5 to $49.5 million. Capital expenditures for the year are expected to be approximately $55 to $65 million, including $50 to $60 million of capitalized software development costs.
Tony Boor: Looking to 26 and beyond, we believe adjusted free cash flow will continue to grow and anticipate, at a minimum, repurchasing shares to offset dilution from share-based compensation.
Tony Boor: Beyond that, the company has tremendous optionality to dynamically allocate capital to its highest use based on market conditions including additional stock repurchases, synergistic M&A, or repayment of debt.
Tony Boor: The performance of our stock, the interest rate environment, and availability of acquisitions will help inform our capital allocation decisions going forward.
Tony Boor: We have a lot to be proud of and a lot more to look forward to as Blackbaud moves into 2025 and beyond with a goal of becoming a Rule of 45 company by 2030. As such, we remain focused on providing enhanced value to our customers and our shareholders.
Operator, let's open up the line for questions.
We'll see you next time. Bye-bye.
Speaker Change: Thank you. Ladies and gentlemen, if you would like to ask a question, please signal by pressing star 1 on your telephone keypad. If you are using your speakerphone, please make sure your mute function is off to allow your signal to reach our equipment. We ask that analysts limit themselves to one question and a follow-up so that others may also ask questions.
Speaker Change: Again, as a reminder, please press star 1 to ask a question and please limit yourself to one question and a follow-up. We will now take our first question from Brian Peterson with Raymond James. Please go ahead, sir.
Brian Peterson: Hi gentlemen, thanks for taking the question. So, I appreciate all the commentary here. I know you guys mentioned maybe pivoting some of the go-to-market resources away from the migrations and towards net new.
Speaker Change: So if we think about where you guys have the biggest opportunity, or maybe in markets, where you think you can make the most progress in 2025. What does that look like? And what does that TAM or opportunity look like beyond the 40,000 customers that you have today?
Speaker Change: because the migrations from a few of our platforms to the new cloud solutions are largely behind us now, which is good news.
Speaker Change: and our new logo production last year grew quite nice in the back half of the year. Just to be clear, we expect bookings to go up this year.
Speaker Change: in total over last year. It's just that we're more focused on new logos. And of course, we're still focused on back-to-base cross-selling as well. We do a lot of land and expand. I mentioned in my prepared remarks, a couple of K-12 large wins.
We're doing well across the board in K-12.
arts and cultural, non-profit.
Speaker Change: Your Cause Business, you know, great opportunities in pipeline and new logos there as well. So again, we started this shift a while ago because we've been working on migrations for several years.
Speaker Change: And we saw the tail of that, if you will. It's gone well. We're pleased with the new logo results last year and look forward to it this year.
Speaker Change: Great, appreciate the commentary, Mike. And Tony, I know you mentioned that you weren't assuming any kind of viral giving in the 2025 guide. If we look back historically...
Speaker Change: What is the mix of kind of viral giving versus what you'd say is more, I guess, recurring? And have you seen any giving that's, let's say, viral associated with some of the events in California this year? Thanks, guys. Good question. Thank you. The viral, as you've seen in the numbers, can be...
Speaker Change: Very volatile, in 23 we had an extremely high year from a viral perspective.
Speaker Change: Q3 and Q4, especially that year made for a really tough compare for the 24-year. I think we were up 13.2% in Q4 of 23, largely on the payments and transactions side of the business, largely because of viral events.
Last year we really saw next to no viral.
Speaker Change: events come through our channels and systems and so we've had a big whipsaw year-over-year and hence the tough really tough compare that we saw for transactions in Q4 of 24.
uh...
Speaker Change: They can run from, as we saw last year, next to nothing, so I could say you could be as low as zero.
Speaker Change: to as high as something that's in the 10 to 15 million dollars a year.
Speaker Change: kind of range is what we've seen in my tenure here. So a lot of volatility. And then for the wildfires, we did see a little bit. That's incorporated into our guide, but it was south of a million dollars of impact.
Thanks Tony.
That's all.
Speaker Change: Our next question comes from Rob Oliver with Baird. Please proceed with your question.
Great, thank you. Good morning.
Speaker Change: My first one was, Mike and Tony, as you guys contemplated the guidance for 25, I'd be curious just to hear your view on what you're hearing from your customer base relative to some of the potential impact around changes in federal dollar allocation. I know many of your customers, whether they be foundations, hospitals, universities, are recipients of federal grants. I would just be curious to know how they're thinking about that and how you guys are thinking about that potential impact in your guidance for this year. And then I had one follow-up.
Yeah, sure, Rob. We're hearing about that a little bit.
Speaker Change: see any impact yet for us. Just to be clear, we're not involved in that funding system at all. Our platforms are, you know, for
Speaker Change: driving donations through, you know, through individual donors, if you will, we're not involved in federal.
Speaker Change: that workflow of cash, if you will. So for us, our customers will likely need what we focus on best, which is to drive more of their revenue through donations using our platforms.
Speaker Change: But it's early days there, but we haven't seen much of that yet in the in the marketplace now we've got
Speaker Change: Such a wide variety of customers, too, that some are not involved in those fundings and some are more so than others, like K-12 schools versus some of the foundations, for example.
Got it.
Brian Peterson: Okay, helpful. And then, Tony, if you can just walk through, I know, and you guys kind of slide on this as well, but on that free cash flow guy, definitely, you know, weaker than we expected, and I understand that there are a lot of moving parts with EverFi, and I think you walked through some of the cost initiatives, but if you could just help maybe rank order some of those impacts on the free cash flow for us and some of the decisions around the spending, that would be helpful. Thanks.
Brian Peterson: Yeah, happy to Rob and like I said there's a new slide in the deck that you can look that will provide this same information
Brian Peterson: for everybody, but we're going from a year of 245 midpoint of the guide on tree capsules.
Brian Peterson: $190,000 for 2025. We have $28 million hit this year for one time for the buyout of that Washington D.C. lease.
that we acquired as part of EverFi.
Brian Peterson: savings on that we believe is about three to three and a half million a year.
Brian Peterson: That will come out of the P&L and cash flow going forward.
Brian Peterson: Then we have a new India location. You know, we've had hundreds of engineers.
Brian Peterson: in India for several years, but those have typically been through third-party contractors, and we're just going to bring those folks in-house as actual employees.
India is a great opportunity for talent.
It's getting really tough to find good...
Brian Peterson: trained, educated talent around the world. India is one of the few countries that has.
Brian Peterson: on access and so we're going to be investing more fully in India over the next couple years because of the scarcity of talent. That's about a five million dollar usage.
Speaker Change: Interest expense is the other big one, Rob. As you know, we bought back about 11% of our stock last year. That was an incremental 20 million of interest. Obviously, that carries over into this year, that amount of debt.
Speaker Change: and that related interest expense, and then we expect about another incremental 11 this year.
Speaker Change: because we are planning on buying back 3-5% as we said in the prepared comments of our stock again this year. So the gross amount of interest impact is $30-31 million.
Speaker Change: that runs some of the EverFi divestiture costs that will wash through the free cash flow this year, and then a few other ancillary puts and takes. But those are the big nuts, the $28 million for the lease buyout, the India investment, and then largely the interest expense and a little bit of working capital.
Great, thanks very much.
Speaker Change: Our next question comes from Parker Lane with Spiegel. Please proceed with your question.
Parker Lane: Hi guys, thanks for taking the question. Looking at the Rule of 45 sort of target here for 2030, can you just talk about how you intend to achieve that, particularly in the bottom line? Is that going to be a relatively balanced mix of cost savings across a number of different initiatives, or is there some low-hanging fruit that can help you get there a little faster?
Mike Gianoni: Yeah, I'll start with that Parker. It's Mike. It's sort of a mix there too. We still have
Parker Lane: a couple of data centers to get behind us. We've closed most of them over the years, so that'll help. We believe that with the mid-single-digit revenue growth, more of that will convert. We're getting more scale out of the business.
Parker Lane: by far than we ever have. You know, a quick example, you know, in my decade here, when I started we were a half a billion in revenue with 3,000 employees and now we're 1.1 billion with 2,600 employees.
Parker Lane: So we're getting a lot more scale out of the business.
Parker Lane: We expect that to continue in the future. Also, there will be some labor arbitrage with the India effort that Tony mentioned as well, which is going to take a little time to really come online. So we've got a lot of opportunities.
Parker Lane: you know, driving the top line at mid-single digits and just really focused on the operations of the business. And as I mentioned in my prepared remarks, we've got a lot of really interesting things going on internally with AI, driving productivity across sales and engineering and, you know, other areas. So.
Yeah, we we've got several
Parker Lane: initiatives underway, Parker, that's going to drive that. So we feel pretty confident around all of those because we've got some...
Parker Lane: some pretty good results. When we started, you know, the big push on Rule of 40, we did, you know, a huge jump, and even to, I think, in 18 months, we went up like 10 points, roughly. So I think there's great opportunity here to keep...
Speaker Change: Some of the things Mike talked about, like the getting out of the data centers, the cloud migration, you know, we'll get out of Citrix costs and a bunch of other things as we turn off.
Speaker Change: Those old versions of R-E and F-E, etc. Some of those things will be a little later staged, and we'll have some kind of stair-step impacts throughout that march towards that Rule of 45 over the next few years.
Got it. Appreciate the feedback, guys. Thanks.
Cheers!
Speaker Change: As a reminder, if you would like to ask a question, please press star 1 on your telephone keypad.
Speaker Change: Our next question comes from Kirk Maturns with Evercore. Please proceed with your question.
Mike, may I just start with you?
Kirk Maturns: Obviously you guys have a great sort of treasure trove of data, you know, within this industry. I was just kind of wondering, you know, how that's sort of impacting your development opportunities around AI, what you think you could bring to bear with, you know, AI for some of your customers. Can you just jump into that a little bit and maybe how that factors into your growth opportunity or your incremental cross-sell, you know, expansion opportunity with your existing customers? Thanks.
Kirk Maturns: Yeah, great question. We have a ton going on there, lots of exciting things.
Kirk Maturns: With machine learning and AI, we've got embedded AI now, and I said this in my prepared remarks,
Kirk Maturns: in our Razor's Edge NXT product, and over 5,000 customers have adopted that. And it's still early days.
Kirk Maturns: With that, and it's driving some step-level changes, you know, that we measure that our customers are achieving related to conversion rates, you know, increased donations by donor, revenue insights.
We also are moving to it more advanced.
stages with a
Kirk Maturns: what we're calling BlackBot CoPilot, which is, you know, sort of the next...
generation if you will.
It's in one of our products now.
Kirk Maturns: called Black Thought Impact Edge, and it's coming out in Razor's Edge NXT and Financial Edge NXT soon. It allows customers to interact with their data with natural language questions.
Kirk Maturns: which I think is going to be a game changer for them to be able to really improve their business and drive revenue. It's also going to do things like simplify fund accounting.
Kirk Maturns: by combining automation and personalization. So these things are coming out as we speak. Many others have been introduced over the last year or so. Today, the current AI capabilities are in the base products.
Kirk Maturns: And we have these advanced capabilities coming out, so we are looking at new opportunities to monetize advanced AI in our solutions. Those are not out yet, pricing, but working on those, so that's something that will come in the future.
Great. Thanks Mike. Sure.
There are no further questions.
Kirk Maturns: which are listed on our investor relations site. We hope to see you then and to speaking with you very soon. Thank you and have a nice day.
um
Kirk Maturns: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.
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