Research HubSoftware & Cloud ServicesBLACKBAUD INC (BLKB)

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SEC 10-K / 10-Q Equity ResearchSoftware & Cloud ServicesTicker: BLKB

BLACKBAUD INC (BLKB) DCF Valuation & Fundamental Primer

BLACKBAUD INC (BLKB) currently trades at $61.06 with an enterprise value of $4.58B. Our proprietary institutional model rates BLACKBAUD INC at 49/100 (Grade: C · Capital Intensive / Low Margin). The current market price prices in an implied 5-year revenue CAGR of 2.8% vs. historical growth of 6.1% (Fairly Priced to Fundamentals).

GDA Quality Score

C49/100

Capital Intensive / Low Margin

Share Price / DCF Base

$61.06 / $73.38

Enterprise Value

$3.99B

TTM Revenue

$1.16B (+6.1%)

Gross Margin

55.3%

Rule of 40 Score

31.0%

EV / TTM Revenue

3.5×

Structural Moat: Enterprise Software & Cloud Services Switching Costs & Recurring Workflow Integration

Key Growth Catalyst: AI workflow automation, multi-module expansion across enterprise cohorts, and operating margin leverage at Blackbaud, Inc..

Institutional fundamental teardown of Blackbaud, Inc. (BLKB) covering SEC 10-K/10-Q cash flow conversion, SBC dilution friction, and Reverse-DCF valuation hurdles.

Seed BLKB in Interactive 3-Statement Model

Section 1 · Intrinsic Valuation Engine

BLACKBAUD INC (BLKB) 3-Scenario DCF Valuation Range

WACC: 10.0% · Terminal Growth: 2.5% · Diluted Shares: 48.2M

bear Case DCFSensitivity

$32.49

Implied Equity Value:$1.57B

vs Current ($61.06):-46.8%

base Case DCFPrimary Benchmark

$73.38

Implied Equity Value:$3.54B

vs Current ($61.06):+20.2%

bull Case DCFSensitivity

$119.36

Implied Equity Value:$5.76B

vs Current ($61.06):+95.5%

Interactive What-If DCF SandboxSim Rule of 40: 31.1%

Stress-test BLKB's 5-year growth, target FCF margin, WACC, terminal methodology, and SBC/dilution friction in real time.

Seed Custom Drivers in /model

1-Click Regimes:

5Y Revenue CAGR6.1%

2%Hist: 6.1%50%

Target FCF Margin25.0%

5%Base: 25%45%

WACC Discount Rate10.0%

6.5%Base: 10%14.5%

Terminal Growth (g)2.5%

1.0%Implies 13.7× Y5 FCF4.0%

Accounting Lens:

Simulated Implied Price$73.65

Spread vs Market+20.6%

Simulated EV$4.59B

Effective FCF Margin25.0%

Simulated 5-Year Cash Flow Trajectory (Unlevered FCF vs. Discounted PV)Cumulative 5Y PV: $1.30B

Year 1$1.23B

FCF:$306.5M

PV:$278.6M

Year 2$1.30B

FCF:$325.2M

PV:$268.8M

Year 3$1.38B

FCF:$345.0M

PV:$259.2M

Year 4$1.46B

FCF:$366.1M

PV:$250.0M

Year 5$1.55B

FCF:$388.4M

PV:$241.2M

Enterprise Value Composition Bridge$4.59B

Split between 5-Year Explicit Cash Flows and Discounted Terminal Value

5Y Explicit PV: $1.30B (28.3%)Terminal PV: $3.30B (71.7%)

(+) Balance Sheet Cash & Equivalents+$67.6M

(−) Total Debt Obligations−$1.11B

(=) Implied Equity Value (48.2M shs)$3.55B

2D Institutional Valuation Sensitivity Heatmap

Implied share price & upside/downside spread across 25 valuation states (Current Price: $61.06).

WACC \ Terminal	1.5%	2.0%	2.5%	3.0%	3.5%
8.5%	$84.08 +38%	$90.46 +48%	$97.91 +60%	$106.72 +75%	$117.28 +92%
9.3%	$73.62 +21%	$78.66 +29%	$84.43 +38%	$91.13 +49%	$99.00 +62%
10.0%	$65.02 +6%	$69.07 +13%	$73.65 +21%	$78.89 +29%	$84.93 +39%
10.8%	$57.82 -5%	$61.13 +0%	$64.83 +6%	$69.02 +13%	$73.78 +21%
11.5%	$51.70 -15%	$54.44 -11%	$57.49 -6%	$60.90 -0%	$64.73 +6%

Section 2 · Fundamental Underwriting

Institutional Software Quality Scorecard (49/100 · Grade C)

Capital Intensive / Low Margin

Weak cash conversion, substantial dilution drag, or constrained financial flexibility.

Cash Conversion13 / 25

Actual: 25.0% marginTarget: Target: ≥100%

Positive FCF but lower conversion efficiency due to capex or timing

Dilution Friction16 / 25

Actual: 9.1% of RevTarget: Target: ≤8%

Standard software SBC dilution; modest equity transfer to employees

Unit Economics8 / 25

Actual: 55% GM / R40: 31%Target: Target: ≥75% GM / ≥40% R40

Sub-par gross margins; higher cost of delivery or hardware/services mix

Balance Sheet12 / 25

Actual: -$1.04B Net DebtTarget: Target: Net Cash > 0

Moderate leverage or cash burn; monitor liquidity runway

Core Investment Strengths & Moats

Key Operational & Dilution Risks

Lower software gross margins (55.3%), indicating higher hosting or service delivery drag

Section 3 · Expectations Investing

Reverse-DCF Solver: What Growth is Priced Into BLKB?

Fairly Priced to Fundamentals

Market implies 2.8% annual revenue growth over next 5 years (8.5% dilution-adjusted), in line with company run-rate.

Implied 5-Year Revenue CAGR

2.8%

Required to justify $3.99B EV

Historical Run-Rate CAGR

6.1%

Audited multi-year top-line trajectory

Growth Hurdle Spread

-3.3%

Implied hurdle minus historical growth

Implied FCF Margin @ Hist. Growth

21.7%

Steady-state FCF margin needed at current CAGR

Institutional Dilution-Adjusted Hurdle Lens

Headline Reverse-DCF ignores Stock-Based Compensation (9.1% of revenue) and annual share dilution (1.1%/yr). Accounting for both requires 8.5% 5-year revenue CAGR to justify $61.06/sh on a true per-share economic cash flow basis.

True Economic Hurdle8.5%

SBC & Dilution Hurdle Tax+5.8% / yr

Section 4 · 5-Year Forecast Schedule

BLACKBAUD INC (BLKB) 5-Year Fundamental Forecast

Customize in Live Engine

Statement Line Item	TTM Audited Base	TTM	Y1	Y2	Y3	Y4	Y5
Revenue	$1.16B	$1.16B	$1.23B	$1.30B	$1.38B	$1.46B	$1.55B
Gross Profit	$639.2M	$639.2M	$678.0M	$719.0M	$762.6M	$808.8M	$857.8M
Operating Income (EBIT)	$-270.5M	$-270.5M	$-286.9M	$-304.3M	$-322.7M	$-342.3M	$-363.0M
Stock-Based Compensation (SBC)	$105.0M	$104.9M	$111.3M	$118.0M	$125.2M	$132.8M	$140.8M
Unlevered Free Cash Flow (FCF)	$288.5M	$288.5M	$306.0M	$324.6M	$344.2M	$365.1M	$387.2M
SBC-Adjusted True Cash Flow	$183.6M	$183.6M	$194.7M	$206.5M	$219.1M	$232.3M	$246.4M

Section 5 · Relative Valuation Multiples & Regression

Software & Cloud Services Peer Comparables & Rule of 40 Regression

Click any peer node or ticker to open its dedicated equity research report

Rule of 40 vs. EV / Revenue Multiple Regression

OLS Fit: EV/Rev = -16.7 + 0.56 × (Rule of 40) · R² = 75%

Stocks below the gold regression line trade at a discount relative to their Rule of 40 compounding efficiency.

BLKB Actual vs. Reg. Multiple3.5× vs 2.0× fair

Reg.-Implied Share Price$26.32 (+72.5% Premium)

BLKBBLACKBAUD INC·Rule of 40: 31.0%·Actual EV/Rev: 3.5×·Regression Fair Multiple: 2.0×

+72.5% Above Trendline (Premium)Open BLKB Report

Company	Ticker	Market Cap	TTM Revenue	Gross Margin	FCF Margin	Rule of 40	SBC % Rev	EV / Rev
BLACKBAUD INC	BLKB	$2.95B	$1.16B	55.3%	25.0%	31.0%	9.1%	3.5×
ServiceNow	NOW	$152.61B	$10.98B	79.2%	31.1%	54.2%	15.9%	13.9×
Workday, Inc.	WDAY	$50.35B	$8.00B	75.0%	27.4%	43.9%	19.0%	6.4×
Salesforce	CRM	$217.10B	$37.90B	77.2%	32.8%	42.8%	8.4%	5.8×
Datadog	DDOG	$46.05B	$2.68B	80.8%	31.1%	57.7%	21.3%	17.4×
Snowflake Inc.	SNOW	$71.79B	$3.63B	66.5%	25.2%	57.7%	40.8%	20.0×
Hubspot	HUBS	$19.89B	$2.63B	85.0%	21.3%	52.7%	19.2%	7.7×
Peer Cohort Median Benchmark (N=6)				78.2%	29.2%	53.5%	19.1%	10.8×

Section 6 · Downside Protection & Multiple Sensitivity

EV / Revenue Multiple Compression Stress Test

Multiple Scenario	EV / Revenue	Implied Enterprise Value	Implied Equity Value	Implied Share Price	Delta vs Current
Current Multiple	3.5×	$3.99B	$2.95B	$61.06	0.0%
-20% Multiple Compression	2.8×	$3.19B	$2.15B	$44.53	-20.0%
-35% Multiple Compression	2.2×	$2.59B	$1.55B	$32.13	-35.0%
Software Baseline Floor (5.0× EV/Rev)	5.0×	$5.78B	$4.74B	$98.19	+44.9%

Section 7 · Investor Diligence FAQ

Frequently Asked Questions: BLACKBAUD INC (BLKB) Valuation

What is BLACKBAUD INC (BLKB)'s intrinsic DCF valuation and implied share price?

Based on audited SEC 10-K/10-Q filings and a 5-year 3-statement discounted cash flow (DCF) model, BLACKBAUD INC (BLKB) has a Base Case implied value of $73.38 per share (with a Bear Case of $32.49 and a Bull Case of $119.36), compared to its current price of $61.06. The model discounts projected free cash flows at a 10.0% WACC and a 2.5% terminal growth rate.

What is BLACKBAUD INC (BLKB)'s Rule of 40 score and Free Cash Flow margin?

BLACKBAUD INC achieves a Rule of 40 score of 31.0%, combining a 6.1% revenue growth run-rate with a 25.0% TTM free cash flow margin on $1.16B in trailing twelve-month revenue. In the Software & Cloud Services peer cohort, the median Rule of 40 benchmark is 53.5%.

What revenue growth rate is priced into BLKB stock according to Reverse-DCF analysis?

At $61.06 per share (Enterprise Value of $3.99B), our Reverse-DCF solver indicates the market is pricing in a 5-year implied revenue CAGR of 2.8%, compared to BLACKBAUD INC's historical CAGR of 6.1%. Overall market expectations are rated as "Fairly Priced to Fundamentals".

How does BLACKBAUD INC compare to Software & Cloud Services software peers?

BLACKBAUD INC (BLKB) earns an institutional Software Quality Score of 49/100 (Grade C — Capital Intensive / Low Margin). Across its Software & Cloud Services peer group (NOW, WDAY, CRM, DDOG, SNOW), the cohort trades at a median EV/TTM Revenue multiple of 10.8× and a median gross margin of 78.2%.

How does Stock-Based Compensation (SBC) impact BLACKBAUD INC (BLKB)'s valuation?

BLACKBAUD INC recorded $105.0M in TTM stock-based compensation (9.1% of revenue). When treating SBC as a cash-equivalent compensation expense, BLACKBAUD INC's SBC-adjusted free cash flow yield is 6.2%, scoring 16/25 on our Shareholder Dilution Friction pillar.

BLACKBAUD INC (BLKB) DCF Valuation & Fundamental Primer

WACC \ Terminal

1.5%

2.0%

2.5%

3.0%

3.5%

8.5%

$84.08

+38%

$90.46

+48%

$97.91

+60%

$106.72

+75%

$117.28

+92%

9.3%

$73.62

+21%

$78.66

+29%

$84.43

+38%

$91.13

+49%

$99.00

+62%

10.0%

$65.02

+6%

$69.07

+13%

$73.65

+21%

$78.89

+29%

$84.93

+39%

10.8%

$57.82

-5%

$61.13

+0%

$64.83

+6%

$69.02

+13%

$73.78

+21%

11.5%

$51.70

-15%

$54.44

-11%

$57.49

-6%

$60.90

-0%

$64.73

+6%

Statement Line Item

TTM Audited Base

TTM

Revenue

$1.16B

$1.23B

$1.30B

$1.38B

$1.46B

$1.55B

Gross Profit

$639.2M

$678.0M

$719.0M

$762.6M

$808.8M

$857.8M

Operating Income (EBIT)

$-270.5M

$-286.9M

$-304.3M

$-322.7M

$-342.3M

$-363.0M

Stock-Based Compensation (SBC)

$105.0M

$104.9M

$111.3M

$118.0M

$125.2M

$132.8M

$140.8M

Unlevered Free Cash Flow (FCF)

$288.5M

$306.0M

$324.6M

$344.2M

$365.1M

$387.2M

SBC-Adjusted True Cash Flow

$183.6M

$194.7M

$206.5M

$219.1M

$232.3M

$246.4M

Company

Ticker

Market Cap

TTM Revenue

Gross Margin

FCF Margin

Rule of 40

SBC % Rev

EV / Rev

BLACKBAUD INC

BLKB

$2.95B

$1.16B

55.3%

25.0%

31.0%

9.1%

3.5×

ServiceNow

NOW

$152.61B

$10.98B

79.2%

31.1%

54.2%

15.9%

13.9×

Workday, Inc.

WDAY

$50.35B

$8.00B

75.0%

27.4%

43.9%

19.0%

6.4×

Salesforce

CRM

$217.10B

$37.90B

77.2%

32.8%

42.8%

8.4%

5.8×

Datadog

DDOG

$46.05B

$2.68B

80.8%

31.1%

57.7%

21.3%

17.4×

Snowflake Inc.

SNOW

$71.79B

$3.63B

66.5%

25.2%

57.7%

40.8%

20.0×

Hubspot

HUBS

$19.89B

$2.63B

85.0%

21.3%

52.7%

19.2%

7.7×

Peer Cohort Median Benchmark (N=6)

78.2%

29.2%

53.5%

19.1%

10.8×

Multiple Scenario

EV / Revenue

Implied Enterprise Value

Implied Equity Value

Implied Share Price

Delta vs Current

Current Multiple

3.5×

$3.99B

$2.95B

$61.06

0.0%

-20% Multiple Compression

2.8×

$3.19B

$2.15B

$44.53

-20.0%

-35% Multiple Compression

2.2×

$2.59B

$1.55B

$32.13

-35.0%

Software Baseline Floor (5.0× EV/Rev)

5.0×

$5.78B

$4.74B

$98.19

+44.9%

BLACKBAUD INC (BLKB) 3-Scenario DCF Valuation Range

2D Institutional Valuation Sensitivity Heatmap

Institutional Software Quality Scorecard (49/100 · Grade C)

Core Investment Strengths & Moats

Key Operational & Dilution Risks

Reverse-DCF Solver: What Growth is Priced Into BLKB?

BLACKBAUD INC (BLKB) 5-Year Fundamental Forecast

Software & Cloud Services Peer Comparables & Rule of 40 Regression

Rule of 40 vs. EV / Revenue Multiple Regression

EV / Revenue Multiple Compression Stress Test

Frequently Asked Questions: BLACKBAUD INC (BLKB) Valuation

What is BLACKBAUD INC (BLKB)'s intrinsic DCF valuation and implied share price?

What is BLACKBAUD INC (BLKB)'s Rule of 40 score and Free Cash Flow margin?

What revenue growth rate is priced into BLKB stock according to Reverse-DCF analysis?

How does BLACKBAUD INC compare to Software & Cloud Services software peers?

How does Stock-Based Compensation (SBC) impact BLACKBAUD INC (BLKB)'s valuation?

Related Software & Cloud Services Equity Research Reports

BLACKBAUD INC (BLKB) 3-Scenario DCF Valuation Range

2D Institutional Valuation Sensitivity Heatmap

Institutional Software Quality Scorecard (49/100 · Grade C)

Core Investment Strengths & Moats

Key Operational & Dilution Risks

Reverse-DCF Solver: What Growth is Priced Into BLKB?

BLACKBAUD INC (BLKB) 5-Year Fundamental Forecast

Software & Cloud Services Peer Comparables & Rule of 40 Regression

Rule of 40 vs. EV / Revenue Multiple Regression

EV / Revenue Multiple Compression Stress Test

Frequently Asked Questions: BLACKBAUD INC (BLKB) Valuation

What is BLACKBAUD INC (BLKB)'s intrinsic DCF valuation and implied share price?

What is BLACKBAUD INC (BLKB)'s Rule of 40 score and Free Cash Flow margin?

What revenue growth rate is priced into BLKB stock according to Reverse-DCF analysis?

How does BLACKBAUD INC compare to Software & Cloud Services software peers?

How does Stock-Based Compensation (SBC) impact BLACKBAUD INC (BLKB)'s valuation?

Related Software & Cloud Services Equity Research Reports