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Blackbaud & Microsoft Team Up on Product Innovations for Nonprofits

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Blackbaud, Inc. (BLKB - Free Report) recently collaborated with its long-standing partner Microsoft to incorporate Microsoft AI and analytics into software, designed for the distinct operational needs of social impact organizations, eliminating the necessity for expensive customizations. The new product innovations will provide more value to nonprofits and education markets by helping them create a bigger impact, gain better insights and work more efficiently.

Supported by Microsoft technologies, Blackbaud's leading donor management solutions, Blackbaud CRM and Blackbaud Raiser's Edge NXT, will utilize the most comprehensive fundraising data model available. These robust tools enhance data clarity and consistency, allowing social impact organizations to navigate complex fundraising operations and boost donor engagement, gift amounts and overall funds raised. By incorporating Microsoft Fabric to consolidate data sources, Blackbaud can offer new features such as tailored productivity dashboards. These customized role-specific dashboards empower users to prioritize their next steps and critical tasks effectively.

Blackbaud's leading financial management tool, Blackbaud Financial Edge NXT, is set to incorporate the Microsoft Azure AI Document Intelligence service for automating the scanning of invoices and receipts. This partnership will streamline the entire payables process within Financial Edge NXT. Additionally, Blackbaud leverages Microsoft AI Services to implement its Intelligence for Good strategy, promoting effective and responsible AI for social impact, including the upcoming Blackbaud Impact Edge, a new data and storytelling solution.

Microsoft will serve as the presenting sponsor of bbcon 2024, Blackbaud's annual technology conference set for Sept. 24-26 in Seattle, where it will conduct sessions focused on how nonprofits can utilize AI and data to improve fundraising and campaign planning.

Blackbaud Aims to Enhance Product Offerings with AI Innovations

In July, Blackbaud enhanced its grants management platform, Blackbaud Grantmaking, by introducing AI-powered features to simplify the grantmaking process. The dynamic form builder allows users to create visually appealing application forms and can translate them into over 25 languages, including French, Spanish and Welsh.

In April, the company improved its flagship fundraising and donor management software, Raiser's Edge NXT, with an array of upgraded functionalities. The latest AI solutions automate customer journeys and “surface new donation opportunities” to increase valuable supporters. Based on BLKB’s Intelligence for Good strategy, the generative AI aids fundraisers in drafting constituent communications.

Blackbaud is a leading software provider focused on supporting social impact. Its software is designed to enhance impact in areas such as fundraising, financial management for nonprofits, digital giving, grantmaking, corporate social responsibility and education management.

Blackbaud is benefiting from healthy demand for its differentiated software solutions. The social sector (88% of total revenues in the second quarter) is identified as the major revenue-generating unit for the company, with 8.5% year-over-year growth in revenues for the recent quarter. These AI innovations can help Blackbaud generate revenues by optimizing fundraising strategies and thereby propel its financial performance in the future.

BLKB’s Zacks Rank & Stock Price Performance

BLKB currently carries a Zacks Rank #3 (Hold). Shares of the company have gained 15% in the past year compared with the sub-industry's growth of 29.2%.

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Stocks to Consider

Some better-ranked stocks from the broader technology space are Manhattan Associates, Inc. (MANH - Free Report) , ANSYS, Inc. (ANSS - Free Report) and American Software, Inc. . MANH presently sports a Zacks Rank #1 (Strong Buy), whereas ANSS & AMSWA carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Manhattan Associates delivered an earnings surprise of 26.6%, on average, in the trailing four quarters. In the last reported quarter, MANH pulled off an earnings surprise of 22.9%. The Zacks Consensus Estimate for MANH has increased 9.2% to $4.26 in the past 60 days.

ANSYS delivered an earnings surprise of 4.8%, on average, in three of the trailing four quarters. In the last reported quarter, ANSS pulled off an earnings surprise of 28.9%. It has a long-term earnings growth expectation of 6.4%.

American Software delivered an earnings surprise of 84.5%, on average, in the trailing four quarters. In the last reported quarter, AMSWA pulled off an earnings surprise of 71.4%. The Zacks Consensus Estimate for AMSWA has increased 8.6% to 38 cents in the past 60 days.


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