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Why Is Blackbaud (BLKB) Down 12.3% Since Last Earnings Report?
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It has been about a month since the last earnings report for Blackbaud (BLKB - Free Report) . Shares have lost about 12.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Blackbaud due for a breakout? 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 Q3 Earnings Beat Estimates
Blackbaud delivered third-quarter 2021 non-GAAP earnings of 78 cents per share, which beat the Zacks Consensus Estimate by 25.8%. The bottom line increased 6.9% year over year.
Total revenues increased 7.5% year over year to $231.2 million and surpassed the consensus mark by 5.4%.
Quarter in Detail
Total recurring revenues in the reported quarter were $218.5 million, up 9.2% and contributed 94.5% to total revenues.
Non-GAAP organic revenues were up 7.5% year over year. Non-GAAP organic revenues on a constant currency (CC) basis amounted to $229.2 million, up 6.6% year over year. Non-GAAP organic recurring revenues rose 9.2% year over year.
One-time services and other revenues (5.5% of total revenues) amounted to $12.7 million, down 14.8% year over year.
Recent Business Highlights
Blackbaud continues to add technological innovations specifically designed to support the unique needs of social organizations amid the COVID-19 outbreak, which might have improved the reputation of the company’s brand and enhanced recognition for its products.
Higher adoption of Blackbaud’s new solutions is likely to drive the top line and boost retention among existing customers.
The company also announced that it formally transitioned to a remote-first workforce approach.
Margin Details
Non-GAAP gross margin came in at 59% compared with 60.1% reported in the prior-year quarter.
Total operating expenses were up 5.1% on a year-over-year basis to $111.7 million. As a percentage of revenues, the figure contracted 110 bps to 48.3%.
Non-GAAP operating margin contracted 60 basis points from the year-ago quarter’s figure to 21.8%.
Non-GAAP adjusted EBITDA margin came in at 27% in the third quarter.
Balance Sheet & Cash Flow
As on Sep 30, 2021, Blackbaud had total cash, cash equivalents and restricted cash of $243.7 million compared with $462.9 million as of Jun 30, 2021.
Total debt (including current portion) as of Sep 30, 2021 amounted to $527.4 million compared with $544.9 million as of Jun 30, 2021.
Cash provided by operating activities for three months ended Sep 30, 2021, was $69.9 million compared with $69.8 million for three months ended Jun 30, 2021.
Non-GAAP free cash flow for the third quarter was $57.9 million compared with $56.6 million of non-GAAP free cash flow in the previous quarter.
In the quarter under review, Blackbaud repurchased 583,280 shares worth $40.3 million. The company has shares worth $111 million left under its current buyback program of $250 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month. The consensus estimate has shifted 39.47% due to these changes.
VGM Scores
At this time, 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 A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Blackbaud has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Blackbaud (BLKB) Down 12.3% Since Last Earnings Report?
It has been about a month since the last earnings report for Blackbaud (BLKB - Free Report) . Shares have lost about 12.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Blackbaud due for a breakout? 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 Q3 Earnings Beat Estimates
Blackbaud delivered third-quarter 2021 non-GAAP earnings of 78 cents per share, which beat the Zacks Consensus Estimate by 25.8%. The bottom line increased 6.9% year over year.
Total revenues increased 7.5% year over year to $231.2 million and surpassed the consensus mark by 5.4%.
Quarter in Detail
Total recurring revenues in the reported quarter were $218.5 million, up 9.2% and contributed 94.5% to total revenues.
Non-GAAP organic revenues were up 7.5% year over year. Non-GAAP organic revenues on a constant currency (CC) basis amounted to $229.2 million, up 6.6% year over year. Non-GAAP organic recurring revenues rose 9.2% year over year.
One-time services and other revenues (5.5% of total revenues) amounted to $12.7 million, down 14.8% year over year.
Recent Business Highlights
Blackbaud continues to add technological innovations specifically designed to support the unique needs of social organizations amid the COVID-19 outbreak, which might have improved the reputation of the company’s brand and enhanced recognition for its products.
Higher adoption of Blackbaud’s new solutions is likely to drive the top line and boost retention among existing customers.
The company also announced that it formally transitioned to a remote-first workforce approach.
Margin Details
Non-GAAP gross margin came in at 59% compared with 60.1% reported in the prior-year quarter.
Total operating expenses were up 5.1% on a year-over-year basis to $111.7 million. As a percentage of revenues, the figure contracted 110 bps to 48.3%.
Non-GAAP operating margin contracted 60 basis points from the year-ago quarter’s figure to 21.8%.
Non-GAAP adjusted EBITDA margin came in at 27% in the third quarter.
Balance Sheet & Cash Flow
As on Sep 30, 2021, Blackbaud had total cash, cash equivalents and restricted cash of $243.7 million compared with $462.9 million as of Jun 30, 2021.
Total debt (including current portion) as of Sep 30, 2021 amounted to $527.4 million compared with $544.9 million as of Jun 30, 2021.
Cash provided by operating activities for three months ended Sep 30, 2021, was $69.9 million compared with $69.8 million for three months ended Jun 30, 2021.
Non-GAAP free cash flow for the third quarter was $57.9 million compared with $56.6 million of non-GAAP free cash flow in the previous quarter.
In the quarter under review, Blackbaud repurchased 583,280 shares worth $40.3 million. The company has shares worth $111 million left under its current buyback program of $250 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month. The consensus estimate has shifted 39.47% due to these changes.
VGM Scores
At this time, 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 A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Blackbaud has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.