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Why Is Blackbaud (BLKB) Up 3.4% Since Last Earnings Report?
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A month has gone by since the last earnings report for Blackbaud (BLKB - Free Report) . Shares have added about 3.4% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Blackbaud due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Blackbaud Q1 Earnings Top Estimates, Revenues Rise Y/Y
Blackbaud 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.
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 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.
Non-GAAP adjusted free cash flow for the year is forecast in the range of $190-$210 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 16% due to these changes.
VGM Scores
Currently, Blackbaud has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Blackbaud has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Blackbaud belongs to the Zacks Computer - Software industry. Another stock from the same industry, PTC Inc. (PTC - Free Report) , has gained 7.9% over the past month. More than a month has passed since the company reported results for the quarter ended March 2023.
PTC Inc. reported revenues of $542.18 million in the last reported quarter, representing a year-over-year change of +7.3%. EPS of $1.16 for the same period compares with $1.39 a year ago.
For the current quarter, PTC Inc. is expected to post earnings of $1.01 per share, indicating a change of +4.1% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
PTC Inc. has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
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Why Is Blackbaud (BLKB) Up 3.4% Since Last Earnings Report?
A month has gone by since the last earnings report for Blackbaud (BLKB - Free Report) . Shares have added about 3.4% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Blackbaud due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Blackbaud Q1 Earnings Top Estimates, Revenues Rise Y/Y
Blackbaud 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.
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 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.
Non-GAAP adjusted free cash flow for the year is forecast in the range of $190-$210 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 16% due to these changes.
VGM Scores
Currently, Blackbaud has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Blackbaud has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Blackbaud belongs to the Zacks Computer - Software industry. Another stock from the same industry, PTC Inc. (PTC - Free Report) , has gained 7.9% over the past month. More than a month has passed since the company reported results for the quarter ended March 2023.
PTC Inc. reported revenues of $542.18 million in the last reported quarter, representing a year-over-year change of +7.3%. EPS of $1.16 for the same period compares with $1.39 a year ago.
For the current quarter, PTC Inc. is expected to post earnings of $1.01 per share, indicating a change of +4.1% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
PTC Inc. has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.