Comments on: Kintera on the verge of being delisted http://www.nonprofittechblog.org/kintera-on-the-verge-of-being-delisted Confessions of a Non-Profit Executive Director Sat, 13 Mar 2010 11:46:18 -0500 http://wordpress.org/?v=abc hourly 1 By: Allan Benamer http://www.nonprofittechblog.org/kintera-on-the-verge-of-being-delisted/comment-page-1#comment-95426 Allan Benamer Mon, 14 Apr 2008 21:11:47 +0000 http://www.nonprofittechblog.org/kintera-on-the-verge-of-being-delisted#comment-95426 Gahhh!!! Are you serious? Blackbaud RE 8 will require a data conversion? Gahhh!!! Are you serious? Blackbaud RE 8 will require a data conversion?

]]> By: Peter Gulka http://www.nonprofittechblog.org/kintera-on-the-verge-of-being-delisted/comment-page-1#comment-95425 Peter Gulka Mon, 14 Apr 2008 12:52:43 +0000 http://www.nonprofittechblog.org/kintera-on-the-verge-of-being-delisted#comment-95425 @allan - when RE8 comes out that line item will increase dramatically as their services are retained for conversion from RE7. @allan – when RE8 comes out that line item will increase dramatically as their services are retained for conversion from RE7.

]]> By: Allan Benamer http://www.nonprofittechblog.org/kintera-on-the-verge-of-being-delisted/comment-page-1#comment-95422 Allan Benamer Sat, 12 Apr 2008 00:34:02 +0000 http://www.nonprofittechblog.org/kintera-on-the-verge-of-being-delisted#comment-95422 Just FYI... this is what Blackbaud considers to be its consulting services (from Blackbaud's recent 10-K filing): "Consulting and education services revenue consists of consulting, installation, implementation and education services. Consulting, installation and implementation services involve converting data from a customer’s existing system, assistance in file set up and system configuration, and/or process re-engineering." Blackbaud made $38.8 million on that one line item alone last year and $26 million on that item in 2006. As I've pointed out before, this cost occurs simply because we do closed systems in the nonprofit sector. If we had a single data format for donor data, we wouldn't have this problem. Or if we had open APIs for all our vendors it wouldn't be so expensive. I think this side of Blackbaud's business may have problems next year but we won't really know. Obviously, much of this revenue comes from data conversions prior to first-time RE installation. If people don't procure RE, then I would assume this line of revenue would shrink. Just FYI… this is what Blackbaud considers to be its consulting services (from Blackbaud’s recent 10-K filing):

“Consulting and education services revenue consists of consulting, installation, implementation and education services. Consulting, installation and implementation services involve converting data from a customer’s existing system, assistance in file set up and system configuration, and/or process re-engineering.”

Blackbaud made $38.8 million on that one line item alone last year and $26 million on that item in 2006. As I’ve pointed out before, this cost occurs simply because we do closed systems in the nonprofit sector. If we had a single data format for donor data, we wouldn’t have this problem. Or if we had open APIs for all our vendors it wouldn’t be so expensive.

I think this side of Blackbaud’s business may have problems next year but we won’t really know. Obviously, much of this revenue comes from data conversions prior to first-time RE installation. If people don’t procure RE, then I would assume this line of revenue would shrink.

]]> By: David Zeidman http://www.nonprofittechblog.org/kintera-on-the-verge-of-being-delisted/comment-page-1#comment-95419 David Zeidman Fri, 11 Apr 2008 15:59:54 +0000 http://www.nonprofittechblog.org/kintera-on-the-verge-of-being-delisted#comment-95419 Well yes data conversion is one aspect but it also encompasses training, process analysis, customizations, etc. David Well yes data conversion is one aspect but it also encompasses training, process analysis, customizations, etc.

David

]]> By: Allan Benamer http://www.nonprofittechblog.org/kintera-on-the-verge-of-being-delisted/comment-page-1#comment-95418 Allan Benamer Fri, 11 Apr 2008 15:47:50 +0000 http://www.nonprofittechblog.org/kintera-on-the-verge-of-being-delisted#comment-95418 @David Zeidman: That's a good point there about the consulting services. I wonder if what your source meant by consulting services the data conversion side of Blackbaud. Data conversions would be a good indicator of whether or not people are doing new installs of RE. Perhaps procurements would slow down or an org would simply look at a cheaper alternative than Blackbaud but I find it hard to believe that an org looking into RE would stop there though. If an org is looking at RE, it's obviously looking to get somewhat entrepreneurial with its fundraising. Who knows? I'll just wait until next quarter's results to see if this slowdown is going to happen or not. @David Zeidman: That’s a good point there about the consulting services. I wonder if what your source meant by consulting services the data conversion side of Blackbaud. Data conversions would be a good indicator of whether or not people are doing new installs of RE.

Perhaps procurements would slow down or an org would simply look at a cheaper alternative than Blackbaud but I find it hard to believe that an org looking into RE would stop there though. If an org is looking at RE, it’s obviously looking to get somewhat entrepreneurial with its fundraising. Who knows? I’ll just wait until next quarter’s results to see if this slowdown is going to happen or not.

]]> By: Allan Benamer http://www.nonprofittechblog.org/kintera-on-the-verge-of-being-delisted/comment-page-1#comment-95417 Allan Benamer Fri, 11 Apr 2008 15:40:52 +0000 http://www.nonprofittechblog.org/kintera-on-the-verge-of-being-delisted#comment-95417 @Mentor: Gosh, who knows? I know it's a bad time to IPO but it's been bad since 2001 so I guess it doesn't really matter. That said, a <a href="http://www.techcrunch.com/2008/04/09/doom-and-gloom-hits-silicon-valley/" rel="nofollow">recent item on Techcrunch</a> tells me that it's an especially bad time. @Mentor: Gosh, who knows? I know it’s a bad time to IPO but it’s been bad since 2001 so I guess it doesn’t really matter. That said, a recent item on Techcrunch tells me that it’s an especially bad time.

]]> By: David Zeidman http://www.nonprofittechblog.org/kintera-on-the-verge-of-being-delisted/comment-page-1#comment-95416 David Zeidman Fri, 11 Apr 2008 15:38:34 +0000 http://www.nonprofittechblog.org/kintera-on-the-verge-of-being-delisted#comment-95416 I agree with Allan and Tom that organizations are not going to just drop Blackbaud products as that would be extremely shortsighted (although some going through a procurement process may think twice). However the majority of Blackbaud revenue comes from their consulting division (at least that is what I was reliably informed a while ago). Clearly organizations are going to think twice about making that kind of investment. David I agree with Allan and Tom that organizations are not going to just drop Blackbaud products as that would be extremely shortsighted (although some going through a procurement process may think twice). However the majority of Blackbaud revenue comes from their consulting division (at least that is what I was reliably informed a while ago). Clearly organizations are going to think twice about making that kind of investment.

David

]]> By: Mentor http://www.nonprofittechblog.org/kintera-on-the-verge-of-being-delisted/comment-page-1#comment-95415 Mentor Fri, 11 Apr 2008 15:31:54 +0000 http://www.nonprofittechblog.org/kintera-on-the-verge-of-being-delisted#comment-95415 I wonder how this will play out for Convio's IPO plans. I wonder how this will play out for Convio’s IPO plans.

]]> By: Allan Benamer http://www.nonprofittechblog.org/kintera-on-the-verge-of-being-delisted/comment-page-1#comment-95414 Allan Benamer Fri, 11 Apr 2008 14:16:59 +0000 http://www.nonprofittechblog.org/kintera-on-the-verge-of-being-delisted#comment-95414 I concur with Tom. I don't see Kintera's and Blackbaud's fates being linked together except for the general reason that the Jefferies & Co. analyst dropped his estimate: perceived drops in IT budgets as nonprofits get hit by the recession. I don't think that's happening yet though. This upcoming Giving Season will be a good indicator of whether or not the recession is going to impact nonprofits but I find it difficult to believe that people would stop paying for Raiser's Edge as part of their IT budget. You see, RE isn't really an IT expense so much as it is a fundraising expense. In that respect, two people are going to have responsibility for RE, the IT manager and the Development Director. That's a lot of internal support right there that a CFO would have to cut through just to cut RE. Office politics... gotta love it. I concur with Tom. I don’t see Kintera’s and Blackbaud’s fates being linked together except for the general reason that the Jefferies & Co. analyst dropped his estimate: perceived drops in IT budgets as nonprofits get hit by the recession. I don’t think that’s happening yet though. This upcoming Giving Season will be a good indicator of whether or not the recession is going to impact nonprofits but I find it difficult to believe that people would stop paying for Raiser’s Edge as part of their IT budget. You see, RE isn’t really an IT expense so much as it is a fundraising expense. In that respect, two people are going to have responsibility for RE, the IT manager and the Development Director. That’s a lot of internal support right there that a CFO would have to cut through just to cut RE. Office politics… gotta love it.

]]> By: Tom http://www.nonprofittechblog.org/kintera-on-the-verge-of-being-delisted/comment-page-1#comment-95413 Tom Fri, 11 Apr 2008 12:04:30 +0000 http://www.nonprofittechblog.org/kintera-on-the-verge-of-being-delisted#comment-95413 Blackbauds drop is more related to one analyst dropping his estimate and market jitters in the microcap/small cap arena. Blackbauds drop is more related to one analyst dropping his estimate and market jitters in the microcap/small cap arena.

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