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) Up 3.2% Since Last Earnings Report: Can It Continue?
Read MoreHide Full Article
It has been about a month since the last earnings report for Blackbaud (BLKB - Free Report) . Shares have added about 3.2% in that time frame, outperforming 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 the most recent earnings report in order to get a better handle on the important drivers.
Blackbaud Q2 Earnings Top Estimates
Blackbaud reported second-quarter 2024 non-GAAP earnings per share (EPS) of $1.08, which surpassed the Zacks Consensus Estimate by 3.9%. The bottom line increased 10.2% year over year.
Total revenues jumped 6% year over year to $287.3 million, driven by growth in recurring revenues. Revenues missed the Zacks Consensus Estimate by 0.5%.
Total recurring revenues (contributed 98% to total revenues) in the reported quarter amounted to $281.4 million, up 7.2% year over year. One-time services and other revenues (2% of total revenues) totaled $5.9 million, down 31.7%.
Non-GAAP organic revenues were up 6.7% on a reported basis and 6.6% on a constant-currency basis, year over year. Non-GAAP organic recurring revenues rose 7.2%.
Margin Details
Non-GAAP gross margin was 62.9% compared with 61.6% a year ago.
Total operating expenses declined 19.3% on a year-over-year basis to $120.5 million.
Non-GAAP operating margin jumped 260 basis points (bps) to 30%.
Non-GAAP adjusted EBITDA margin was 35.7%, up 290 bps year over year.
Balance Sheet & Cash Flow
As of Jun 30, 2024, Blackbaud had total cash, cash equivalents and restricted cash of $831.1 million compared with $382.9 million as of Mar 31, 2024.
Total debt (including the current portion) as of Jun 30, 2024, was $1021.9 million compared with $1039.8 million as of Mar 31, 2024.
For the second quarter, cash provided by operating activities was $53.8 million compared with $53.2 million in the prior-year quarter.
Non-GAAP adjusted free cash flow was $36.4 million compared with $43.6 million in the year-ago quarter.
Blackbaud repurchased approximately 3 million shares in the first half of 2024, representing 5.5% of the common stock outstanding at the end of 2023.
In July 2024, Blackbaud’s board of directors approved a replenished and expanded $800 million stock repurchase authorization. BLKB expects to buy back up to 10% of the common stock outstanding in 2024 to offset dilution from annual stock-based compensation.
Outlook
Blackbaud reiterated its 2024 financial guidance, factoring in a significant, one-time expense to expedite crucial security initiatives. These initiatives, designed to provide long-term benefits for customers, include enhancing cybersecurity talent (both employees and third-party resources) and upgrading systems and tools to improve identity and privilege access management, as well as data loss prevention. The company anticipates that this accelerated cybersecurity investment will not recur in 2025 and beyond.
BLKB now expects non-GAAP revenues between $1.164 billion and $1.194 billion.
The company continues to project non-GAAP adjusted EBITDA margin in the range of 32.5-33.5%.
Non-GAAP EPS is anticipated to be between $4.12 and $4.38.
Non-GAAP adjusted free cash flow for 2024 is forecasted to be in the range of $254-$274 million.
Non-GAAP annualized effective tax rate is the same as the prior estimation of approximately 24.5%.
Interest expense is now expected in the band of $52 million to $56 million, changed from earlier guidance of $48 million to $52 million.
Fully diluted shares are now anticipated to be 51.0 million to 52.0 million compared with the earlier guided range of 52-53 million.
Capital expenditures are expected to be in the range of $65 million to $75 million, which includes $60-$70 million of capitalized software and content development costs. This remains the same as the earlier outlook.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
VGM Scores
At this time, Blackbaud has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Blackbaud has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Blackbaud (BLKB) Up 3.2% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Blackbaud (BLKB - Free Report) . Shares have added about 3.2% in that time frame, outperforming 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 the most recent earnings report in order to get a better handle on the important drivers.
Blackbaud Q2 Earnings Top Estimates
Blackbaud reported second-quarter 2024 non-GAAP earnings per share (EPS) of $1.08, which surpassed the Zacks Consensus Estimate by 3.9%. The bottom line increased 10.2% year over year.
Total revenues jumped 6% year over year to $287.3 million, driven by growth in recurring revenues. Revenues missed the Zacks Consensus Estimate by 0.5%.
Total recurring revenues (contributed 98% to total revenues) in the reported quarter amounted to $281.4 million, up 7.2% year over year. One-time services and other revenues (2% of total revenues) totaled $5.9 million, down 31.7%.
Non-GAAP organic revenues were up 6.7% on a reported basis and 6.6% on a constant-currency basis, year over year. Non-GAAP organic recurring revenues rose 7.2%.
Margin Details
Non-GAAP gross margin was 62.9% compared with 61.6% a year ago.
Total operating expenses declined 19.3% on a year-over-year basis to $120.5 million.
Non-GAAP operating margin jumped 260 basis points (bps) to 30%.
Non-GAAP adjusted EBITDA margin was 35.7%, up 290 bps year over year.
Balance Sheet & Cash Flow
As of Jun 30, 2024, Blackbaud had total cash, cash equivalents and restricted cash of $831.1 million compared with $382.9 million as of Mar 31, 2024.
Total debt (including the current portion) as of Jun 30, 2024, was $1021.9 million compared with $1039.8 million as of Mar 31, 2024.
For the second quarter, cash provided by operating activities was $53.8 million compared with $53.2 million in the prior-year quarter.
Non-GAAP adjusted free cash flow was $36.4 million compared with $43.6 million in the year-ago quarter.
Blackbaud repurchased approximately 3 million shares in the first half of 2024, representing 5.5% of the common stock outstanding at the end of 2023.
In July 2024, Blackbaud’s board of directors approved a replenished and expanded $800 million stock repurchase authorization. BLKB expects to buy back up to 10% of the common stock outstanding in 2024 to offset dilution from annual stock-based compensation.
Outlook
Blackbaud reiterated its 2024 financial guidance, factoring in a significant, one-time expense to expedite crucial security initiatives. These initiatives, designed to provide long-term benefits for customers, include enhancing cybersecurity talent (both employees and third-party resources) and upgrading systems and tools to improve identity and privilege access management, as well as data loss prevention. The company anticipates that this accelerated cybersecurity investment will not recur in 2025 and beyond.
BLKB now expects non-GAAP revenues between $1.164 billion and $1.194 billion.
The company continues to project non-GAAP adjusted EBITDA margin in the range of 32.5-33.5%.
Non-GAAP EPS is anticipated to be between $4.12 and $4.38.
Non-GAAP adjusted free cash flow for 2024 is forecasted to be in the range of $254-$274 million.
Non-GAAP annualized effective tax rate is the same as the prior estimation of approximately 24.5%.
Interest expense is now expected in the band of $52 million to $56 million, changed from earlier guidance of $48 million to $52 million.
Fully diluted shares are now anticipated to be 51.0 million to 52.0 million compared with the earlier guided range of 52-53 million.
Capital expenditures are expected to be in the range of $65 million to $75 million, which includes $60-$70 million of capitalized software and content development costs. This remains the same as the earlier outlook.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
VGM Scores
At this time, Blackbaud has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Blackbaud has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.