CEO Mike Gianoni said those who choose one-year contracts will be subject to what he termed “a more material rate increase” the those with three-year subscriptions. Price increases are much higher at the end of the first year of the three-year contracts with “price uplifts” for years two and three. The company began notifying customers in November whose contracts renewed in March about the changes. Gianoni noted three-year contracts had previously not included annual compounding of rate increase. Through April, the company has renewed more than 25 percent of those with renewals this year. For the first quarter ended March 31, Blackbaud lost $14.7 million, compared to a loss of $10.4 million a year ago. Revenue for the most recently ended quarter of $271.8 million was 1.8-percent higher than the $257.1 million in last year’s corresponding period. Recurring revenue, which represents the overwhelming source of the company’s income, was up 3.3 percent. Gianoni termed the performance a strong result. Blackbaud continues on its cost-cutting effort. It closed four data centers in 2022 and plans to close more this year, while renegotiating contracts with Microsoft Azure and AWS. The company has cut its headcount by 14 percent since the third quarter of 2022.