Assessing Blackbaud’s (BLKB) Valuation Following Major AI and Data Upgrades to Impact Edge Platform

Blackbaud (BLKB) just introduced major updates to its Impact Edge platform, unveiling enhanced AI analytics, a live Charity Discovery Tool, and integrations with sector-leading nonprofit data to strengthen its corporate social responsibility tech.

See our latest analysis for Blackbaud.

Blackbaud’s recent upgrades to its Impact Edge platform come in the wake of other high-profile moves, such as the announcement of its upcoming Sydney tech conference for social impact leaders. Despite these innovative steps, the company’s 1-year total shareholder return is down just over 22%, which highlights that momentum has yet to fully recover, even as management focuses on long-term data-driven growth strategies.

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After a year of lackluster returns and a series of new technology rollouts, the question is whether Blackbaud is trading at a discount for forward-thinking investors, or if its future growth ambitions are already fully reflected in the share price.

Most Popular Narrative: 17.9% Undervalued

The most widely followed narrative puts Blackbaud’s fair value noticeably ahead of the last close. The result hints that analyst expectations for future growth still outpace current market sentiment, creating a spread worth investigating in more detail.

Aggressive and ongoing investments in product innovation, particularly in generative and Agentic AI, are expected to drive new monetizable offerings over the next year (including separately priced AI products like a virtual fundraiser), supporting incremental revenue streams and margin expansion from high-value software.

Read the complete narrative.

Curious what’s powering that bold upside? The most popular narrative leans heavily on key dynamics such as ongoing product innovation, major expansion in margins, and a growth rate that could surprise even the optimists. The underlying numbers driving this thesis will catch your attention, especially if you want to understand why Blackbaud might not stay this discounted for long.

Result: Fair Value of $76.83 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, challenges such as intensifying competition from larger cloud platforms and the risk of margin pressure from increased investment could affect the positive outlook.

Find out about the key risks to this Blackbaud narrative.

Build Your Own Blackbaud Narrative

If your perspective differs or you want to dive deeper into the facts, you can build a personalized viewpoint on Blackbaud in just a few minutes, then Do it your way.

A great starting point for your Blackbaud research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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