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Blackbaud (BLKB) Q3 Earnings Beat Estimates, Revenues Up Y/Y
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Blackbaud (BLKB - Free Report) delivered non-GAAP earnings of 69 cents per share in third-quarter 2022, which surpassed the Zacks Consensus Estimate by 11.3%. The bottom line declined 11.5% year over year.
Total revenues increased 13% year over year to $261.3 million but missed the consensus mark by 0.03%. The top line was driven by strength in recurring revenues.
Total recurring revenues in the reported quarter amounted to $249.4 million, up 14% and contributed 95.4% to total revenues. One-time services and other revenues (4.6% of total revenues) amounted to $11.9 million, decreasing 6.1% year over year.
Non-GAAP organic revenues were up 1.7% year over year. Non-GAAP organic revenues on a constant-currency (CC) basis amounted to $266.2 million, up 3.6% year over year. Non-GAAP organic recurring revenues rose 3.5% year over year. The company’s organic recurring revenues were driven by higher transactional volume and increasing customer renewal rates.
Recent Business Highlights
On Sep 21, 2022, Blackbaud announced two new features for the company’s Raiser's Edge NXT and eTapestry forms in Canada and the United States to help charitable organizations minimize costs.
The donor cover model supplies information about the transaction to the supporters and allows them to cover the above-mentioned costs on behalf of the organization. The complete cover model allows supporters to cover the online prepossessing cost so that organizations can receive the maximum amount.
On Sep 12, 2022, Blackbaud announced that it is divesting Blackbaud FIMS and DonorCentral NXT products to its channel partner – NPact. The divestiture will allow the company to focus more on innovation and long-term growth.
On Aug 23, 2022, Blackbaud announced the acquisition of an activity-based engagement app, Kilter, to support the fundraising of its mobile application ??? Blackbaud TeamRaiser. Blackbaud will leverage Kilter to support its event-based fundraising software, Blackbaud TeamRaiser, which offers a wide array of features to non-profit organizations hosting events.
Margin Details
Non-GAAP gross margin came in at 59.6%, up 60 basis points (bps) from the prior-year quarter’s levels.
Total operating expenses were up 32% on a year-over-year basis to $147.4 million. As a percentage of revenues, the figure expanded 810 bps to 56.4%.
Non-GAAP operating margin contracted 270 bps from the year-ago quarter’s figure to 19.1%.
Non-GAAP adjusted EBITDA margin came in at 25.6%, down 140 bps year over year.
Balance Sheet & Cash Flow
As of Sep 30, 2022, Blackbaud had total cash, cash equivalents and restricted cash of $375.4 million compared with $478.5 million as of Jun 30, 2022.
Total debt (including the current portion) as of Sep 30, 2022, amounted to $854.1 million compared with $939.8 million as of Jun 30, 2022.
Cash provided by operating activities in the three months ended Sep 30, 2022, was $108 million compared with $69.8 million in the prior-year period.
Non-GAAP adjusted free cash flow in the third quarter was $93.8 million compared with $58.6 million of non-GAAP adjusted free cash flow in the previous-year quarter.
2022 Guidance
Blackbaud expects non-GAAP revenues between $1.05 billion and $1.07 billion. The Zacks Consensus Estimate for the same stands at $1.06 billion.
The company projects a non-GAAP adjusted EBITDA margin in the range of 23.7-24.2%.
Non-GAAP earnings are expected to be between $2.43 and $2.63 per share. The Zacks Consensus Estimate for the same is pegged at $2.55 per share.
Non-GAAP adjusted free cash flow for the year is forecast in the range of $140-$150 million.
Zacks Rank & Other Stocks to Consider
Blackbaud currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for InterDigital’s 2022 earnings is pegged at $2.45 per share, up 2.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 25%.
InterDigital’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 81.9%. Shares of IDCC have decreased 29.2% in the past year.
The Zacks Consensus Estimate for PSTG 2022 earnings is pegged at $1.18 per share, unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 35.5%.
Pure Storage’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 171.8%. Shares of PSTG have increased 16.9% in the past year.
The Zacks Consensus Estimate for Jabil’s fiscal 2023 earnings is pegged at $8.18 per share, rising 3.8 in the past 60 days. The long-term earnings growth rate is anticipated to be 12%.
Jabil’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, the average being 9.3%. Shares of JBL have increased 5.8% in the past year.
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Blackbaud (BLKB) Q3 Earnings Beat Estimates, Revenues Up Y/Y
Blackbaud (BLKB - Free Report) delivered non-GAAP earnings of 69 cents per share in third-quarter 2022, which surpassed the Zacks Consensus Estimate by 11.3%. The bottom line declined 11.5% year over year.
Total revenues increased 13% year over year to $261.3 million but missed the consensus mark by 0.03%. The top line was driven by strength in recurring revenues.
Total recurring revenues in the reported quarter amounted to $249.4 million, up 14% and contributed 95.4% to total revenues. One-time services and other revenues (4.6% of total revenues) amounted to $11.9 million, decreasing 6.1% year over year.
Blackbaud, Inc. Price, Consensus and EPS Surprise
Blackbaud, Inc. price-consensus-eps-surprise-chart | Blackbaud, Inc. Quote
Non-GAAP organic revenues were up 1.7% year over year. Non-GAAP organic revenues on a constant-currency (CC) basis amounted to $266.2 million, up 3.6% year over year. Non-GAAP organic recurring revenues rose 3.5% year over year. The company’s organic recurring revenues were driven by higher transactional volume and increasing customer renewal rates.
Recent Business Highlights
On Sep 21, 2022, Blackbaud announced two new features for the company’s Raiser's Edge NXT and eTapestry forms in Canada and the United States to help charitable organizations minimize costs.
The donor cover model supplies information about the transaction to the supporters and allows them to cover the above-mentioned costs on behalf of the organization. The complete cover model allows supporters to cover the online prepossessing cost so that organizations can receive the maximum amount.
On Sep 12, 2022, Blackbaud announced that it is divesting Blackbaud FIMS and DonorCentral NXT products to its channel partner – NPact. The divestiture will allow the company to focus more on innovation and long-term growth.
On Aug 23, 2022, Blackbaud announced the acquisition of an activity-based engagement app, Kilter, to support the fundraising of its mobile application ??? Blackbaud TeamRaiser. Blackbaud will leverage Kilter to support its event-based fundraising software, Blackbaud TeamRaiser, which offers a wide array of features to non-profit organizations hosting events.
Margin Details
Non-GAAP gross margin came in at 59.6%, up 60 basis points (bps) from the prior-year quarter’s levels.
Total operating expenses were up 32% on a year-over-year basis to $147.4 million. As a percentage of revenues, the figure expanded 810 bps to 56.4%.
Non-GAAP operating margin contracted 270 bps from the year-ago quarter’s figure to 19.1%.
Non-GAAP adjusted EBITDA margin came in at 25.6%, down 140 bps year over year.
Balance Sheet & Cash Flow
As of Sep 30, 2022, Blackbaud had total cash, cash equivalents and restricted cash of $375.4 million compared with $478.5 million as of Jun 30, 2022.
Total debt (including the current portion) as of Sep 30, 2022, amounted to $854.1 million compared with $939.8 million as of Jun 30, 2022.
Cash provided by operating activities in the three months ended Sep 30, 2022, was $108 million compared with $69.8 million in the prior-year period.
Non-GAAP adjusted free cash flow in the third quarter was $93.8 million compared with $58.6 million of non-GAAP adjusted free cash flow in the previous-year quarter.
2022 Guidance
Blackbaud expects non-GAAP revenues between $1.05 billion and $1.07 billion. The Zacks Consensus Estimate for the same stands at $1.06 billion.
The company projects a non-GAAP adjusted EBITDA margin in the range of 23.7-24.2%.
Non-GAAP earnings are expected to be between $2.43 and $2.63 per share. The Zacks Consensus Estimate for the same is pegged at $2.55 per share.
Non-GAAP adjusted free cash flow for the year is forecast in the range of $140-$150 million.
Zacks Rank & Other Stocks to Consider
Blackbaud currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the broader technology space are InterDigital (IDCC - Free Report) , Pure Storage (PSTG - Free Report) and Jabil (JBL - Free Report) . InterDigital and Jabil currently sport a Zacks Rank #1 (Strong Buy) whereas Pure Storage currently holds a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks.
The Zacks Consensus Estimate for InterDigital’s 2022 earnings is pegged at $2.45 per share, up 2.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 25%.
InterDigital’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 81.9%. Shares of IDCC have decreased 29.2% in the past year.
The Zacks Consensus Estimate for PSTG 2022 earnings is pegged at $1.18 per share, unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 35.5%.
Pure Storage’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 171.8%. Shares of PSTG have increased 16.9% in the past year.
The Zacks Consensus Estimate for Jabil’s fiscal 2023 earnings is pegged at $8.18 per share, rising 3.8 in the past 60 days. The long-term earnings growth rate is anticipated to be 12%.
Jabil’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, the average being 9.3%. Shares of JBL have increased 5.8% in the past year.