Blackbaud (BLKB - Free Report) reported non-GAAP earnings of 68 cents per share in fourth-quarter 2022, which surpassed the Zacks Consensus Estimate by 17.2%. The bottom line declined 9.3% year over year.
Total revenues increased 10.8% year over year to $274.8 million but missed the Zacks Consensus Estimate by 0.8%. The top line was driven by strength in recurring revenues.
Total recurring revenues in the reported quarter amounted to $265.2 million, up 11% and contributed 96.5% to total revenues. One-time services and other revenues (3.5% of total revenues) amounted to $9.6 million, increasing 3% year over year.
Non-GAAP organic revenues were $278.4 million, up 0.4% on a reported basis and 1.7% on a constant-currency basis, year over year. Non-GAAP organic recurring revenues rose 1.3% year over year.
Margin Details
Non-GAAP gross margin came in at 56.7%, up 140 basis points (bps) from the prior-year quarter’s levels.
Total operating expenses were up 18.7% on a year-over-year basis to $154.8 million. As a percentage of revenues, the figure expanded 370 bps to 56.3%.
Non-GAAP operating margin expanded 20 bps from the year-ago quarter’s figure to 20%.
Non-GAAP adjusted EBITDA margin came in at 24.7%, up 20 bps year over year.
Balance Sheet & Cash Flow
As of Dec 31, 2022, Blackbaud had total cash, cash equivalents and restricted cash of $733.9 million compared with $375.4 million as of Sep 30, 2022.
Total debt (including the current portion) as of Dec 31, 2022, amounted to $859 million compared with $854.1 million as of Sep 30, 2022.
Cash provided by operating activities in the three months ended Dec 31, 2022, was $14.1 million compared with $43.9 million in the prior-year period.
Non-GAAP adjusted free cash flow in the fourth quarter was $7.6 million compared with $31.9 million in the previous-year quarter.
2023 Guidance
Blackbaud expects non-GAAP revenues between $1.08 billion and $1.11 billion. The Zacks Consensus Estimate is pegged at $1.11 billion.
The company projects a non-GAAP adjusted EBITDA margin in the range of 29.5-30.5%.
Non-GAAP earnings per share are expected to be between $3.30 and $3.60. The Zacks Consensus Estimate is pegged at $3.32 per share.
Non-GAAP adjusted free cash flow for the year is forecast in the range of $170-$190 million.
Zacks Rank & Stocks to Consider
Blackbaud currently carries a Zacks Rank #3 (Hold).
Investors interested in the broader technology space may consider stocks like Arista Networks (ANET - Free Report) , Jabil (JBL - Free Report) and Bandwidth (BAND - Free Report) . All stocks 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 Arista Networks’ 2023 earnings is pegged at $4.38 per share, up 1 cent in the past 60 days. The long-term earnings growth rate is anticipated to be 17.5%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 12.7%. Shares of ANET have gained 4.7% in the past year.
The Zacks Consensus Estimate for Jabil’s 2023 earnings is pegged at $8.37 per share, rising 2.3% in the past 60 days. The long-term earnings growth rate is anticipated to be 12%.
Jabil’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 8.8%. Shares of JBL have increased 36.5% in the past year.
The Zacks Consensus Estimate for Bandwidth 2022 earnings is pegged at 37 cents per share, unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 25%.
BAND's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 301.8%. Shares of the company have declined 60.8% in the past year
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Blackbaud (BLKB - Free Report) reported non-GAAP earnings of 68 cents per share in fourth-quarter 2022, which surpassed the Zacks Consensus Estimate by 17.2%. The bottom line declined 9.3% year over year.
Total revenues increased 10.8% year over year to $274.8 million but missed the Zacks Consensus Estimate by 0.8%. The top line was driven by strength in recurring revenues.
Total recurring revenues in the reported quarter amounted to $265.2 million, up 11% and contributed 96.5% to total revenues. One-time services and other revenues (3.5% of total revenues) amounted to $9.6 million, increasing 3% year over year.
Non-GAAP organic revenues were $278.4 million, up 0.4% on a reported basis and 1.7% on a constant-currency basis, year over year. Non-GAAP organic recurring revenues rose 1.3% year over year.
Margin Details
Non-GAAP gross margin came in at 56.7%, up 140 basis points (bps) from the prior-year quarter’s levels.
Total operating expenses were up 18.7% on a year-over-year basis to $154.8 million. As a percentage of revenues, the figure expanded 370 bps to 56.3%.
Non-GAAP operating margin expanded 20 bps from the year-ago quarter’s figure to 20%.
Non-GAAP adjusted EBITDA margin came in at 24.7%, up 20 bps year over year.
Balance Sheet & Cash Flow
As of Dec 31, 2022, Blackbaud had total cash, cash equivalents and restricted cash of $733.9 million compared with $375.4 million as of Sep 30, 2022.
Total debt (including the current portion) as of Dec 31, 2022, amounted to $859 million compared with $854.1 million as of Sep 30, 2022.
Cash provided by operating activities in the three months ended Dec 31, 2022, was $14.1 million compared with $43.9 million in the prior-year period.
Non-GAAP adjusted free cash flow in the fourth quarter was $7.6 million compared with $31.9 million in the previous-year quarter.
2023 Guidance
Blackbaud expects non-GAAP revenues between $1.08 billion and $1.11 billion. The Zacks Consensus Estimate is pegged at $1.11 billion.
The company projects a non-GAAP adjusted EBITDA margin in the range of 29.5-30.5%.
Non-GAAP earnings per share are expected to be between $3.30 and $3.60. The Zacks Consensus Estimate is pegged at $3.32 per share.
Non-GAAP adjusted free cash flow for the year is forecast in the range of $170-$190 million.
Zacks Rank & Stocks to Consider
Blackbaud currently carries a Zacks Rank #3 (Hold).
Investors interested in the broader technology space may consider stocks like Arista Networks (ANET - Free Report) , Jabil (JBL - Free Report) and Bandwidth (BAND - Free Report) . All stocks 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 Arista Networks’ 2023 earnings is pegged at $4.38 per share, up 1 cent in the past 60 days. The long-term earnings growth rate is anticipated to be 17.5%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 12.7%. Shares of ANET have gained 4.7% in the past year.
The Zacks Consensus Estimate for Jabil’s 2023 earnings is pegged at $8.37 per share, rising 2.3% in the past 60 days. The long-term earnings growth rate is anticipated to be 12%.
Jabil’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 8.8%. Shares of JBL have increased 36.5% in the past year.
The Zacks Consensus Estimate for Bandwidth 2022 earnings is pegged at 37 cents per share, unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 25%.
BAND's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 301.8%. Shares of the company have declined 60.8% in the past year
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Zacks Investment Research has released a Special Report to help you pursue massive profits from the world’s first and largest decentralized form of money.
No guarantees for the future, but in the past three presidential election years, Bitcoin’s returns were as follows: 2012 +272.4%, 2016 +161.1%, and 2020 +302.8%.
Zacks predicts another significant surge. Click below for Bitcoin: A Tumultuous Yet Resilient History.
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