BLKB – Market expectations are for Uniform ROA to slightly expand, but management may have concerns about retention rates, growth, and partnerships

• Blackbaud, Inc. (BLKB:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) earnings, with a 25.6x Uniform P/E. At these levels, the market has somewhat bullish expectations for the firm, but management may have concerns about their retention rates, meeting profitable growth targets, and their partnerships with Salesforce and Microsoft
• Specifically, management may lack confidence in their ability to sustain transactional business revenue, maintain their high retention rates, and execute their Rule of 40 growth targets. Furthermore, they may have concerns about weakness in bookings during the pandemic, and they may be exaggerating the potential of the Salesforce platform integration and the advantages of their partnership with Microsoft Azure. Management may also lack confidence in their ability to apply a digital-first mindset to their business operations, continue to provide resources to the market at no cost, and shift towards a more collaborative working environment at their offices