Blackbaud (BLKB - Free Report) 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 Zacks Consensus Estimate is pegged at $1.09 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. The Zacks Consensus Estimate is pegged at $3.43 per share.
Non-GAAP adjusted free cash flow for the year is forecast in the range of $190-$210 million.
Zacks Rank & Other Stocks to Consider
Blackbaud currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader technology space are Badger Meter (BMI - Free Report) , Microsoft (MSFT - Free Report) and Arista Networks (ANET - Free Report) . BMI currently sports a Zacks Rank #1 (Strong Buy) whereas Arista Networks and Microsoft 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 Badger Meter’s 2023 earnings has increased 4.7% in the past 60 days to $2.69 per share. BMI’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 5.3%. Shares of BMI have improved 68.3% in the past year.
The Zacks Consensus Estimate for Microsoft’s fiscal 2023 earnings increased 2.9% in the past 60 days at $9.61 per share. The long-term earnings growth rate is expected to be 11.7%.
Microsoft’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 3.3%. Shares of MSFT have gained 9.7% in the past year.
The Zacks Consensus Estimate for Arista Networks’ 2023 earnings is pegged at $5.78 per share. The long-term earnings growth rate is anticipated to be 14.2%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 14.7%. Shares of ANET have increased 19.6% in the past year.
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Blackbaud (BLKB - Free Report) 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 Zacks Consensus Estimate is pegged at $1.09 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. The Zacks Consensus Estimate is pegged at $3.43 per share.
Non-GAAP adjusted free cash flow for the year is forecast in the range of $190-$210 million.
Zacks Rank & Other Stocks to Consider
Blackbaud currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader technology space are Badger Meter (BMI - Free Report) , Microsoft (MSFT - Free Report) and Arista Networks (ANET - Free Report) . BMI currently sports a Zacks Rank #1 (Strong Buy) whereas Arista Networks and Microsoft 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 Badger Meter’s 2023 earnings has increased 4.7% in the past 60 days to $2.69 per share. BMI’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 5.3%. Shares of BMI have improved 68.3% in the past year.
The Zacks Consensus Estimate for Microsoft’s fiscal 2023 earnings increased 2.9% in the past 60 days at $9.61 per share. The long-term earnings growth rate is expected to be 11.7%.
Microsoft’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 3.3%. Shares of MSFT have gained 9.7% in the past year.
The Zacks Consensus Estimate for Arista Networks’ 2023 earnings is pegged at $5.78 per share. The long-term earnings growth rate is anticipated to be 14.2%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 14.7%. Shares of ANET have increased 19.6% in the past year.
Top 5 ChatGPT Stocks Revealed
Zacks Senior Stock Strategist, Kevin Cook names 5 hand-picked stocks with sky-high growth potential in a brilliant sector of Artificial Intelligence. By 2030, the AI industry is predicted to have an internet and iPhone-scale economic impact of $15.7 Trillion.
Today you can invest in the wave of the future, an automation that answers follow-up questions … admits mistakes … challenges incorrect premises … rejects inappropriate requests. As one of the selected companies puts it, “Automation frees people from the mundane so they can accomplish the miraculous.”
Download Free ChatGPT Stock Report Right Now >>
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