We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Blackbaud (BLKB) Q1 Earnings Top Estimates, Revenues Rise Y/Y
Read MoreHide Full Article
Blackbaud (BLKB - Free Report) reported first-quarter 2023 non-GAAP earnings of 72 cents per share, which surpassed the Zacks Consensus Estimate by 4.4%. The bottom line increased 26.3% year over year.
Total revenues increased 1.8% year over year to $261.8 million and beat the Zacks Consensus Estimate by 1.3%. The top line was driven by strength in recurring revenues.
Total recurring revenues (contributed 96.6% to total revenues) in the reported quarter amounted to $252.7 million, up 3.3% year over year. One-time services and other revenues (3.4% of total revenues) amounted to $9 million, down 27.7% year over year.
Non-GAAP organic revenues were up 2.3% on a reported basis and 3.4% on a constant-currency basis, year over year. Non-GAAP organic recurring revenues rose 3.8% year over year.
Non-GAAP gross margin was 59.8%, up 130 basis points (bps) from the prior-year quarter’s levels.
Total operating expenses were up 6.3% on a year-over-year basis to $148.6 million. As a percentage of revenues, the figure expanded 250 bps to 56.8%.
Non-GAAP operating margin expanded 470 bps from the year-ago quarter’s figure to 21.6%.
Non-GAAP adjusted EBITDA margin was 27.2%, up 500 bps year over year.
Balance Sheet & Cash Flow
As of Mar 31, Blackbaud had total cash, cash equivalents and restricted cash of $388.1 million compared with $733.9 million as of Dec 31, 2022.
Total debt (including the current portion) as of Mar 31, amounted to $858.9 million compared with $840.2 million as of Dec 31, 2022.
Cash provided by operating activities in the three months ended Mar 31, was $21.8 million compared with $24.5 million in the prior-year period.
Non-GAAP adjusted free cash flow in the first quarter was $15.7 million compared with $8.4 million in the previous-year quarter.
2023 Guidance
Blackbaud now expects non-GAAP revenues to be between $1.095 billion and $1.125 billion (earlier view: $1.08 billion and $1.11 billion). The Zacks Consensus Estimate is pegged at $1.09 billion.
The company now projects non-GAAP adjusted EBITDA margin in the range of 30.5-31.5% compared with the earlier guided range of 29.5-30.5%.
Non-GAAP earnings per share are anticipated to be between $3.63 and $3.94 compared with the earlier guided range of $3.30-$3.60. The Zacks Consensus Estimate is pegged at $3.43 per share.
Non-GAAP adjusted free cash flow for the year is forecast in the range of $190-$210 million.
Zacks Rank & Other Stocks to Consider
Blackbaud currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Badger Meter’s 2023 earnings has increased 4.7% in the past 60 days to $2.69 per share. BMI’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 5.3%. Shares of BMI have improved 68.3% in the past year.
The Zacks Consensus Estimate for Microsoft’s fiscal 2023 earnings increased 2.9% in the past 60 days at $9.61 per share. The long-term earnings growth rate is expected to be 11.7%.
Microsoft’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 3.3%. Shares of MSFT have gained 9.7% in the past year.
The Zacks Consensus Estimate for Arista Networks’ 2023 earnings is pegged at $5.78 per share. The long-term earnings growth rate is anticipated to be 14.2%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 14.7%. Shares of ANET have increased 19.6% in the past year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Blackbaud (BLKB) Q1 Earnings Top Estimates, Revenues Rise Y/Y
Blackbaud (BLKB - Free Report) reported first-quarter 2023 non-GAAP earnings of 72 cents per share, which surpassed the Zacks Consensus Estimate by 4.4%. The bottom line increased 26.3% year over year.
Total revenues increased 1.8% year over year to $261.8 million and beat the Zacks Consensus Estimate by 1.3%. The top line was driven by strength in recurring revenues.
Total recurring revenues (contributed 96.6% to total revenues) in the reported quarter amounted to $252.7 million, up 3.3% year over year. One-time services and other revenues (3.4% of total revenues) amounted to $9 million, down 27.7% year over year.
Non-GAAP organic revenues were up 2.3% on a reported basis and 3.4% on a constant-currency basis, year over year. Non-GAAP organic recurring revenues rose 3.8% year over year.
Blackbaud, Inc. Price, Consensus and EPS Surprise
Blackbaud, Inc. price-consensus-eps-surprise-chart | Blackbaud, Inc. Quote
Margin Details
Non-GAAP gross margin was 59.8%, up 130 basis points (bps) from the prior-year quarter’s levels.
Total operating expenses were up 6.3% on a year-over-year basis to $148.6 million. As a percentage of revenues, the figure expanded 250 bps to 56.8%.
Non-GAAP operating margin expanded 470 bps from the year-ago quarter’s figure to 21.6%.
Non-GAAP adjusted EBITDA margin was 27.2%, up 500 bps year over year.
Balance Sheet & Cash Flow
As of Mar 31, Blackbaud had total cash, cash equivalents and restricted cash of $388.1 million compared with $733.9 million as of Dec 31, 2022.
Total debt (including the current portion) as of Mar 31, amounted to $858.9 million compared with $840.2 million as of Dec 31, 2022.
Cash provided by operating activities in the three months ended Mar 31, was $21.8 million compared with $24.5 million in the prior-year period.
Non-GAAP adjusted free cash flow in the first quarter was $15.7 million compared with $8.4 million in the previous-year quarter.
2023 Guidance
Blackbaud now expects non-GAAP revenues to be between $1.095 billion and $1.125 billion (earlier view: $1.08 billion and $1.11 billion). The Zacks Consensus Estimate is pegged at $1.09 billion.
The company now projects non-GAAP adjusted EBITDA margin in the range of 30.5-31.5% compared with the earlier guided range of 29.5-30.5%.
Non-GAAP earnings per share are anticipated to be between $3.63 and $3.94 compared with the earlier guided range of $3.30-$3.60. The Zacks Consensus Estimate is pegged at $3.43 per share.
Non-GAAP adjusted free cash flow for the year is forecast in the range of $190-$210 million.
Zacks Rank & Other Stocks to Consider
Blackbaud currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader technology space are Badger Meter (BMI - Free Report) , Microsoft (MSFT - Free Report) and Arista Networks (ANET - Free Report) . BMI currently sports a Zacks Rank #1 (Strong Buy) whereas Arista Networks and Microsoft carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Badger Meter’s 2023 earnings has increased 4.7% in the past 60 days to $2.69 per share. BMI’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 5.3%. Shares of BMI have improved 68.3% in the past year.
The Zacks Consensus Estimate for Microsoft’s fiscal 2023 earnings increased 2.9% in the past 60 days at $9.61 per share. The long-term earnings growth rate is expected to be 11.7%.
Microsoft’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 3.3%. Shares of MSFT have gained 9.7% in the past year.
The Zacks Consensus Estimate for Arista Networks’ 2023 earnings is pegged at $5.78 per share. The long-term earnings growth rate is anticipated to be 14.2%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 14.7%. Shares of ANET have increased 19.6% in the past year.