Blackbaud (BLKB - Free Report) reported second-quarter 2023 non-GAAP earnings of 98 cents per share, which surpassed the Zacks Consensus Estimate by 5.4%. The bottom line increased 31% year over year.
Total revenues jumped 2.3% year over year to $271 million driven by strength in recurring revenues. Transactional revenues registered growth in the high single digits on a year-over-year basis in the quarter under review. However, revenues missed the Zacks Consensus Estimate by 0.6%.
Total recurring revenues (contributed 96.8% to the top line) in the reported quarter amounted to $262.4 million, up 3.9% year over year. One-time services and other revenues (3.2% of the top line) totaled $8.7 million, down 30.3% year over year.
Non-GAAP organic revenues grew 2.8% on a reported basis and 3.2% at constant currency, year over year. Non-GAAP organic recurring revenues rose 4.4% year over year.
Margin Details
Non-GAAP gross margin was 61.6%, up 280 basis points (bps) from the prior-year quarter’s levels.
Total operating expenses improved 7.2% on a year-over-year basis to $149.3 million. As a percentage of revenues, the figure expanded 250 bps to 55.1%.
Non-GAAP operating margin extended 680 bps from the year-ago quarter’s figure to 27.4%.
Non-GAAP adjusted EBITDA margin was 32.8%, up 620 bps year over year.
Balance Sheet & Cash Flow
As of Jun 30, Blackbaud had total cash, cash equivalents and restricted cash of $790.3 million compared with $388.1 million as of Mar 31, 2023.
Total debt (including the current portion) as of Jun 30, came in at $846.6 million compared with $858.9 million as of Mar 31, 2023.
For the second quarter, cash provided by operating activities was $53.2 million compared with $57.3 million in the prior-year period.
Non-GAAP adjusted free cash flow in the second quarter was $43.6 million compared with $43.9 million in the previous-year quarter.
2023 Guidance Reiterated
BLKB continues to expect non-GAAP revenues to be between $1.095 billion and $1.125 billion. The Zacks Consensus Estimate is pegged at $1.11 billion.
The company projects non-GAAP adjusted EBITDA margin in the range of 30.5-31.5%.
Non-GAAP earnings per share are anticipated to be between $3.63 and $3.94. The Zacks Consensus Estimate is pegged at $3.75 per share.
Non-GAAP adjusted free cash flow for the year is forecast in the $190-$210 million band.
Zacks Rank & Other Key Picks
Blackbaud currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks worth consideration in the broader technology space are Badger Meter (BMI - Free Report) , Salesforce (CRM - Free Report) and Autodesk (ADSK - Free Report) . Badger Meter sports a Zacks Rank #1 (Strong Buy) while each of Salesforce and Intuit carries a Zacks Rank #2. 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 gained 4.8% in the past 60 days to $2.82 per share. BMI’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 6.7%. Shares of BMI have surged 66.8% in the past year.
The consensus mark for Salesforce’s fiscal 2024 earnings is pegged at $7.44 per share, up 0.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 19.3%.
CRM’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 15.5%. Shares of CRM have grown 18.1% in the past year.
The consensus estimate for Autodesk’s fiscal 2024 earnings of $7.25 per share unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 24.3%.
ADSK’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average beat being 2.1%. Shares of ADSK have declined 2.7% in the past year.
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Blackbaud (BLKB - Free Report) reported second-quarter 2023 non-GAAP earnings of 98 cents per share, which surpassed the Zacks Consensus Estimate by 5.4%. The bottom line increased 31% year over year.
Total revenues jumped 2.3% year over year to $271 million driven by strength in recurring revenues. Transactional revenues registered growth in the high single digits on a year-over-year basis in the quarter under review. However, revenues missed the Zacks Consensus Estimate by 0.6%.
Total recurring revenues (contributed 96.8% to the top line) in the reported quarter amounted to $262.4 million, up 3.9% year over year. One-time services and other revenues (3.2% of the top line) totaled $8.7 million, down 30.3% year over year.
Non-GAAP organic revenues grew 2.8% on a reported basis and 3.2% at constant currency, year over year. Non-GAAP organic recurring revenues rose 4.4% year over year.
Margin Details
Non-GAAP gross margin was 61.6%, up 280 basis points (bps) from the prior-year quarter’s levels.
Total operating expenses improved 7.2% on a year-over-year basis to $149.3 million. As a percentage of revenues, the figure expanded 250 bps to 55.1%.
Non-GAAP operating margin extended 680 bps from the year-ago quarter’s figure to 27.4%.
Non-GAAP adjusted EBITDA margin was 32.8%, up 620 bps year over year.
Balance Sheet & Cash Flow
As of Jun 30, Blackbaud had total cash, cash equivalents and restricted cash of $790.3 million compared with $388.1 million as of Mar 31, 2023.
Total debt (including the current portion) as of Jun 30, came in at $846.6 million compared with $858.9 million as of Mar 31, 2023.
For the second quarter, cash provided by operating activities was $53.2 million compared with $57.3 million in the prior-year period.
Non-GAAP adjusted free cash flow in the second quarter was $43.6 million compared with $43.9 million in the previous-year quarter.
2023 Guidance Reiterated
BLKB continues to expect non-GAAP revenues to be between $1.095 billion and $1.125 billion. The Zacks Consensus Estimate is pegged at $1.11 billion.
The company projects non-GAAP adjusted EBITDA margin in the range of 30.5-31.5%.
Non-GAAP earnings per share are anticipated to be between $3.63 and $3.94. The Zacks Consensus Estimate is pegged at $3.75 per share.
Non-GAAP adjusted free cash flow for the year is forecast in the $190-$210 million band.
Zacks Rank & Other Key Picks
Blackbaud currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks worth consideration in the broader technology space are Badger Meter (BMI - Free Report) , Salesforce (CRM - Free Report) and Autodesk (ADSK - Free Report) . Badger Meter sports a Zacks Rank #1 (Strong Buy) while each of Salesforce and Intuit carries a Zacks Rank #2. 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 gained 4.8% in the past 60 days to $2.82 per share. BMI’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 6.7%. Shares of BMI have surged 66.8% in the past year.
The consensus mark for Salesforce’s fiscal 2024 earnings is pegged at $7.44 per share, up 0.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 19.3%.
CRM’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 15.5%. Shares of CRM have grown 18.1% in the past year.
The consensus estimate for Autodesk’s fiscal 2024 earnings of $7.25 per share unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 24.3%.
ADSK’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average beat being 2.1%. Shares of ADSK have declined 2.7% in the past year.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
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