Blackbaud: Growth Rates Deteriorate Further In Q4, Invest Elsewhere
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Blackbaud's growth rates have worsened in Q4, exacerbated by the sale of its underperforming subsidiary EVERFI. The company's reliance on mergers and acquisitions has resulted in a highly leveraged balance sheet with $1 billion in net debt and poor acquisition outcomes. A new pricing strategy with significant rate increases may lead to higher customer churn, potentially stalling revenue growth.
February 19, 2025 | 10:00 am
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Blackbaud's Q4 growth rates have declined, worsened by the sale of EVERFI. The company's M&A strategy has led to high leverage and poor outcomes. A new pricing strategy risks higher customer churn, potentially stalling revenue growth.
The article highlights Blackbaud's deteriorating growth rates in Q4, worsened by the sale of EVERFI. The company's reliance on M&A has resulted in a highly leveraged balance sheet and poor acquisition outcomes. Additionally, the new pricing strategy could lead to higher customer churn, further stalling revenue growth. These factors suggest a negative short-term impact on Blackbaud's stock price.
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