Shares of Blackbaud (BLKB) plummeted 5.20% in intraday trading on Wednesday, despite the company reporting better-than-expected first-quarter earnings. The sharp decline comes as investors appear to be focusing on the company's revenue decline and concerns about future growth.

Blackbaud, a leading provider of software for powering social impact, announced first-quarter adjusted earnings of $0.96 per share, surpassing analysts' expectations of $0.90 per share. However, the company's revenue fell 3.1% year-over-year to $270.7 million, primarily due to the divestiture of its EVERFI business. While this figure still beat the consensus estimate of $268.2 million, the overall revenue decline seems to have spooked investors.

Despite reaffirming its full-year 2025 guidance, with expected adjusted earnings per share of $4.16 to $4.35 and revenue between $1.115 billion and $1.125 billion, the market's reaction suggests concerns about Blackbaud's growth trajectory. The company's organic revenue growth of 5.8% and its progress towards improved profitability appear to have been overshadowed by the overall revenue decline and potential challenges in maintaining growth rates in the competitive social impact software market.