Blackbaud (BLKB - Free Report) reported fourth-quarter 2023 non-GAAP earnings per share (EPS) of $1.14, which surpassed the Zacks Consensus Estimate by 9.62%. The bottom line increased 67.7% year over year.
Total revenues jumped 7.4% year over year to $295 million, driven by strength in recurring revenues. Revenues missed the Zacks Consensus Estimate by 1%.
Total recurring revenues (contributed 97.4% to the top line) in the reported quarter amounted to $287.3 million, up 8.4% year over year. One-time services and other revenues (2.6%) totaled $7.6 million, down 20.4% year over year. We estimated recurring revenues and one-time services and other revenues to be $281.1 million and $15.2 million, respectively.
Non-GAAP organic revenues grew 7.4% on a reported basis and 6.9% at constant currency, year over year. Non-GAAP organic recurring revenues rose 8.4% year over year.
Margin Details
Non-GAAP gross margin was 59.9%, up 320 basis points (bps) from the prior-year levels.
Total operating expenses declined 18.1% on a year-over-year basis to $126.6 million. As a percentage of revenues, the figure contracted to 43%.
Non-GAAP operating margin extended 840 bps from a year ago to 28.4%.
Non-GAAP adjusted EBITDA margin was 20.9%.
Balance Sheet & Cash Flow
As of Dec 31, 2023, Blackbaud had total cash, cash equivalents and restricted cash of $728.2 million compared with $390.7 million as of Sep 30.
Total debt (including the current portion) as of Dec 31, 2023, was $779.6 million compared with $723.4 million as of Sep 30.
For the fourth quarter, cash provided by operating activities was $199.6 million compared with $203.8 million in the prior-year period.
Non-GAAP adjusted free cash flow in the fourth quarter was $213.5 million compared with $153.6 million in the year-ago quarter.
Guidance
BLKB expects non-GAAP revenues between $1.17 billion and $1.20 billion. The Zacks Consensus Estimate is pegged at $1.11 billion.
The company projects non-GAAP adjusted EBITDA margin in the range of 32.5-33.5%.
Non-GAAP EPS is anticipated to be between $4.12 and $4.38. The Zacks Consensus Estimate is pegged at $3.86 per share.
Non-GAAP adjusted free cash flow for 2024 is forecasted to be in the range of $254-$274 million.
Zacks Rank and Stocks to Consider
Blackbaud currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks worth considering in the broader technology space are Itron (ITRI - Free Report) , Woodward (WWD - Free Report) and Microsoft (MSFT - Free Report) . Woodward and Itron sport a Zacks Rank #1 (Strong Buy), while Microsoft carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Itron’s 2023 EPS has remained unchanged in the past 60 days to $2.88. ITRI’s long-term earnings growth rate is 23%.
Itron’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 289.3%. Shares of ITRI have gained 32.5% in the past year.
The Zacks Consensus Estimate for Woodward’s 2024 EPS has inched up 5.7% in the past 60 days to $5.20. WWD’s long-term earnings growth rate is 15.5%.
Woodward’s earnings beat the Zacks Consensus in each of the last four quarters, the average surprise being 27.2%. Shares of WWD have gained 33.1% in the past year.
The Zacks Consensus Estimate for Microsoft’s fiscal 2024 EPS is pegged at $11.60, indicating growth of 18.3% from the year-ago levels. The long-term earnings growth rate is pegged at 16.2%.
Microsoft’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 8.8%. MSFT has gained 57.4% in the past year.
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Blackbaud (BLKB - Free Report) reported fourth-quarter 2023 non-GAAP earnings per share (EPS) of $1.14, which surpassed the Zacks Consensus Estimate by 9.62%. The bottom line increased 67.7% year over year.
Total revenues jumped 7.4% year over year to $295 million, driven by strength in recurring revenues. Revenues missed the Zacks Consensus Estimate by 1%.
Total recurring revenues (contributed 97.4% to the top line) in the reported quarter amounted to $287.3 million, up 8.4% year over year. One-time services and other revenues (2.6%) totaled $7.6 million, down 20.4% year over year. We estimated recurring revenues and one-time services and other revenues to be $281.1 million and $15.2 million, respectively.
Non-GAAP organic revenues grew 7.4% on a reported basis and 6.9% at constant currency, year over year. Non-GAAP organic recurring revenues rose 8.4% year over year.
Margin Details
Non-GAAP gross margin was 59.9%, up 320 basis points (bps) from the prior-year levels.
Total operating expenses declined 18.1% on a year-over-year basis to $126.6 million. As a percentage of revenues, the figure contracted to 43%.
Non-GAAP operating margin extended 840 bps from a year ago to 28.4%.
Non-GAAP adjusted EBITDA margin was 20.9%.
Balance Sheet & Cash Flow
As of Dec 31, 2023, Blackbaud had total cash, cash equivalents and restricted cash of $728.2 million compared with $390.7 million as of Sep 30.
Total debt (including the current portion) as of Dec 31, 2023, was $779.6 million compared with $723.4 million as of Sep 30.
For the fourth quarter, cash provided by operating activities was $199.6 million compared with $203.8 million in the prior-year period.
Non-GAAP adjusted free cash flow in the fourth quarter was $213.5 million compared with $153.6 million in the year-ago quarter.
Guidance
BLKB expects non-GAAP revenues between $1.17 billion and $1.20 billion. The Zacks Consensus Estimate is pegged at $1.11 billion.
The company projects non-GAAP adjusted EBITDA margin in the range of 32.5-33.5%.
Non-GAAP EPS is anticipated to be between $4.12 and $4.38. The Zacks Consensus Estimate is pegged at $3.86 per share.
Non-GAAP adjusted free cash flow for 2024 is forecasted to be in the range of $254-$274 million.
Zacks Rank and Stocks to Consider
Blackbaud currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks worth considering in the broader technology space are Itron (ITRI - Free Report) , Woodward (WWD - Free Report) and Microsoft (MSFT - Free Report) . Woodward and Itron sport a Zacks Rank #1 (Strong Buy), while Microsoft carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Itron’s 2023 EPS has remained unchanged in the past 60 days to $2.88. ITRI’s long-term earnings growth rate is 23%.
Itron’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 289.3%. Shares of ITRI have gained 32.5% in the past year.
The Zacks Consensus Estimate for Woodward’s 2024 EPS has inched up 5.7% in the past 60 days to $5.20. WWD’s long-term earnings growth rate is 15.5%.
Woodward’s earnings beat the Zacks Consensus in each of the last four quarters, the average surprise being 27.2%. Shares of WWD have gained 33.1% in the past year.
The Zacks Consensus Estimate for Microsoft’s fiscal 2024 EPS is pegged at $11.60, indicating growth of 18.3% from the year-ago levels. The long-term earnings growth rate is pegged at 16.2%.
Microsoft’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 8.8%. MSFT has gained 57.4% in the past year.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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