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Why Is Blackbaud (BLKB) Up 12.5% 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 12.5% 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 its most recent earnings report in order to get a better handle on the important catalysts.
Blackbaud Q1 Earnings Beat Estimates
Blackbaud delivered non-GAAP earnings of 57 cents per share in first-quarter 2022, which missed the Zacks Consensus Estimate by 12.3%. The bottom line declined 16.2% year over year.
Total revenues increased 17.3% year over year to $257.1 million and surpassed the consensus mark by 0.8%. The top line was driven by higher transactional volume and increases in contractual recurring revenues.
Total recurring revenues in the reported quarter amounted to $244.7 million, up 18.3% and contributed 95.2% to total revenues. One-time services and other revenues (4.8% of total revenues) amounted to $12.5 million, up 0.1% year over year.
Non-GAAP organic revenues were up 5.2% year over year. Non-GAAP organic revenues on a constant currency (CC) basis amounted to $258 million, up 5.6% year over year. Non-GAAP organic recurring revenues rose 6.6% 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 achieved carbon neutrality across operations and data centers for 2021. Blackbaud added that it remains committed to new transparent sustainability reporting (including TCFD and CDP) for 2022.
Margin Details
Non-GAAP gross margin came in at 58.5%, down 90 basis points (bps) from the prior-year quarter’s levels.
Total operating expenses were up 28% on a year-over-year basis to $139.7 million. As a percentage of revenues, the figure expanded 450 bps to 54.3%.
Non-GAAP operating margin contracted 460 bps from the year-ago quarter’s figure to 16.9%.
Non-GAAP adjusted EBITDA margin came in at 22.2%, down 120 bps year over year.
Balance Sheet & Cash Flow
As of Mar 31, 2022, Blackbaud had total cash, cash equivalents and restricted cash of $313.4 million compared with $651.6 million as of Dec 31, 2021.
Total debt (including the current portion) as of Mar 31, 2022, amounted to $981.2 million compared with $$956.2 million as of Dec 31, 2021.
Cash provided by operating activities for three months ended Mar 31, 2022, was $24.5 million compared with $30.1 million in the prior year period.
Non-GAAP adjusted free cash flow for the first quarter was $8.4 million compared with $18.8 million of non-GAAP adjusted free cash flow in the previous year quarter.
2022 Guidance Reiterated
Blackbaud expects non-GAAP revenues between $1.075 billion and $1.095 billion.
The company projects a non-GAAP adjusted EBITDA margin in the range of 24-24.5%. Non-GAAP earnings are expected to be between $2.63 and $2.82 per share.
Non-GAAP adjusted free cash flow for the year is forecast in the range of $165-$175 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -9.76% due to these changes.
VGM Scores
At this time, Blackbaud has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, 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 C. 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 #2 (Buy). We expect an above average return from the stock in the next few months.
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Why Is Blackbaud (BLKB) Up 12.5% Since Last Earnings Report?
A month has gone by since the last earnings report for Blackbaud (BLKB - Free Report) . Shares have added about 12.5% 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 its most recent earnings report in order to get a better handle on the important catalysts.
Blackbaud Q1 Earnings Beat Estimates
Blackbaud delivered non-GAAP earnings of 57 cents per share in first-quarter 2022, which missed the Zacks Consensus Estimate by 12.3%. The bottom line declined 16.2% year over year.
Total revenues increased 17.3% year over year to $257.1 million and surpassed the consensus mark by 0.8%. The top line was driven by higher transactional volume and increases in contractual recurring revenues.
Total recurring revenues in the reported quarter amounted to $244.7 million, up 18.3% and contributed 95.2% to total revenues. One-time services and other revenues (4.8% of total revenues) amounted to $12.5 million, up 0.1% year over year.
Non-GAAP organic revenues were up 5.2% year over year. Non-GAAP organic revenues on a constant currency (CC) basis amounted to $258 million, up 5.6% year over year. Non-GAAP organic recurring revenues rose 6.6% 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 achieved carbon neutrality across operations and data centers for 2021. Blackbaud added that it remains committed to new transparent sustainability reporting (including TCFD and CDP) for 2022.
Margin Details
Non-GAAP gross margin came in at 58.5%, down 90 basis points (bps) from the prior-year quarter’s levels.
Total operating expenses were up 28% on a year-over-year basis to $139.7 million. As a percentage of revenues, the figure expanded 450 bps to 54.3%.
Non-GAAP operating margin contracted 460 bps from the year-ago quarter’s figure to 16.9%.
Non-GAAP adjusted EBITDA margin came in at 22.2%, down 120 bps year over year.
Balance Sheet & Cash Flow
As of Mar 31, 2022, Blackbaud had total cash, cash equivalents and restricted cash of $313.4 million compared with $651.6 million as of Dec 31, 2021.
Total debt (including the current portion) as of Mar 31, 2022, amounted to $981.2 million compared with $$956.2 million as of Dec 31, 2021.
Cash provided by operating activities for three months ended Mar 31, 2022, was $24.5 million compared with $30.1 million in the prior year period.
Non-GAAP adjusted free cash flow for the first quarter was $8.4 million compared with $18.8 million of non-GAAP adjusted free cash flow in the previous year quarter.
2022 Guidance Reiterated
Blackbaud expects non-GAAP revenues between $1.075 billion and $1.095 billion.
The company projects a non-GAAP adjusted EBITDA margin in the range of 24-24.5%. Non-GAAP earnings are expected to be between $2.63 and $2.82 per share.
Non-GAAP adjusted free cash flow for the year is forecast in the range of $165-$175 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -9.76% due to these changes.
VGM Scores
At this time, Blackbaud has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, 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 C. 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 #2 (Buy). We expect an above average return from the stock in the next few months.