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Blackbaud (BLKB) Q1 Earnings & Revenues Surpass Estimates

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Blackbaud, Inc. (BLKB - Free Report) delivered first-quarter 2021 non-GAAP earnings of 68 cents per share, which beat the Zacks Consensus Estimate by 7.94%. The bottom line improved 33.3% year over year.

Total revenues declined 2% year over year to $219.2 million but surpassed the consensus mark by 0.19%.

Quarter in Detail

Total recurring revenues for the reported quarter were $206.75 million and contributed 94% to total revenues. The figure increased 0.9% year over year.

Non-GAAP organic revenues fell 2% year over year to $219.2 million. Non-GAAP organic revenues on a constant currency (CC) basis amounted to $217.2 million, down 2.9% year over year.

Non-GAAP organic recurring revenues improved 0.9% year over year to $206.75 million.

Blackbaud, Inc. Price, Consensus and EPS Surprise


Blackbaud, Inc. Price, Consensus and EPS Surprise

Blackbaud, Inc. price-consensus-eps-surprise-chart | Blackbaud, Inc. Quote

One-time services and other revenues (6% of total revenues) amounted to $12.4 million, down 34% year over year.

Key Business Highlights

Blackbaud announced technology innovations specifically designed to support the unique needs of social organizations amid the COVID-19 outbreak, which may have improved the reputation of the company’s brand and enhanced recognition for its products.

The company made Blackbaud Grantmaking available in SKY UX interface making advanced grant management technology easily accessible anywhere via any browser on any device.

Blackbaud expanded global capabilities for YourCause by announcing a new in-market partnership with GlobalGiving with an aim to connect companies to the largest set of charity organizations, such that employee giving and volunteering can be encouraged worldwide.

Management is optimistic regarding the fact that leading enterprises and higher education institutions are increasingly adopting Blackbaud CRMTM to strengthen engagement, empower teams across campus, and attain better fundraising results.

Additionally, higher education and healthcare institutions worldwide are turning to Blackbaud solutions to power fundraisers for COVID-19 vaccines and lifesaving equipment.

Blackbaud’s Cloud Solution for Higher Education, which is aimed at aiding clientele to drive efficiency, increase revenues and deepen engagement during the pandemic, is witnessing traction across colleges and universities.

Enhanced capabilities are anticipated to drive adoption of Blackbaud’s solutions in the days ahead and boost retention among existing customers.

Margin Details

Non-GAAP gross margin expanded 110 basis points (bps) to 59.4%.

Total operating expenses fell 1.1% on a year-over-year basis to $109.2 million. As a percentage of revenues, the figure expanded 50 bps to 49.8%.

Non-GAAP operating margin expanded 630 bps from the year-ago quarter’s figure to 21.5%.

Balance Sheet & Cash Flow

As on Mar 31, 2021, Blackbaud had total cash, cash equivalents and restricted cash of $282.9 million compared with $645 million as of Dec 31, 2020.

Total debt (including current portion) as of Mar 31, 2021 amounted to $550.8 million compared with $531 million as of Dec 31, 2020.

Cash provided by operating activities for three months ended Mar 31, 2021, was $30.1 million compared with $24.5 million utilized for three months ended Mar 31, 2020.

Non-GAAP free cash flow for three months ended Mar 31, 2021 was $17.3 million compared with $38.3 million of free cash outflow for three months ended Mar 31, 2020.

In November 2020, Blackbaud’s board of directors reauthorized and expanded its existing share repurchase program from $50 million to $250 million. Through Jan 31, 2021, the company has repurchased approximately 1.2 million shares worth $69 million, with $180 million remaining in authorization.

Zacks Rank & Stocks to Consider

Blackbaud currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology sector are Qorvo (QRVO - Free Report) , Vishay Intertechnology (VSH - Free Report) and Microchip (MCHP - Free Report) . Vishay Intertechnology sports a Zacks Rank #1 (Strong Buy), while Qorvo and Microchip carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Vishay Intertechnology, Qorvo and Microchip are scheduled to report their quarterly results on May 4, May 5 and May 6, respectively.

Long-term earnings growth rate of Qorvo, Vishay Intertechnology and Microchip is pegged at 13.99%, 20.26% and 15.47%, respectively.

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