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Blackbaud (BLKB) Q2 Earnings and Revenues Top Estimates

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Blackbaud, Inc. (BLKB - Free Report) delivered second-quarter 2021 non-GAAP earnings of 82 cents per share, which beat the Zacks Consensus Estimate by 18.8%. The bottom line decreased 3.5% year over year.

Total revenues dropped 1.1% year over year to $229.4 million but surpassed the consensus mark by 1.5%.

Quarter in Detail

Total recurring revenues for the reported quarter were $217 million and contributed 94.6% to total revenues. The figure inched up 0.3% due to tough year-over-year comparison for payments revenues.

Blackbaud, Inc. Price, Consensus and EPS Surprise

 

Blackbaud, Inc. Price, Consensus and EPS Surprise

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

 

Non-GAAP organic revenues were down 1.1% year over year. Non-GAAP organic revenues on a constant currency (CC) basis amounted to $225.1 million, down 3% year over year. Non-GAAP organic recurring revenues rose 0.3% year over year.

One-time services and other revenues (5.4% of total revenues) amounted to $12.5 million, down 20.8% year over year.

Recent 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.

Blackbaud announced the general availability of its latest solution — Payment Terminal. Payment Terminal will enable enterprises, mainly arts and cultural, to receive contactless payments made through chip-embedded credit cards. The solution can help Blackbaud Altru customers to utilize EMV technology-backed card readers.

Blackbaud rolled out its Blackbaud Peer-to-Peer Fundraising solution, powered by JustGiving, in Canada as well as Australia and New Zealand. JustGiving is the company’s charity crowdfunding platform.

Blackbaud Peer-to-Peer Fundraising solution will aid charitable organizations to connect their patrons with JusGiving platform without the need to pay any set up or subscriptions charges.

Higher adoption of Blackbaud’s new solutions is likely to drive top-line performance and boost retention among existing customers.

Margin Details

Non-GAAP gross margin came in at 59.1% compared with 60.4% reported in the prior-year quarter.

Total operating expenses were up 0.8% on a year-over-year basis to $108.3 million. As a percentage of revenues, the figure expanded 90 bps to 47.2%.

Non-GAAP operating margin expanded 10 basis points from the year-ago quarter’s figure to 23.6%.

Balance Sheet & Cash Flow

As on Jun 30, 2021, Blackbaud had total cash, cash equivalents and restricted cash of $462.9 million compared with $282.9 million as of Mar 31, 2021.

Total debt (including current portion) as of Jun 30, 2021 amounted to $544.9 million compared with $550.8 million as of Mar 31, 2021.

Cash provided by operating activities for three months ended Jun 30, 2021, was $69.8 million compared with $30.1 million for three months ended Mar 31, 2021.

Non-GAAP free cash flow for the second quarter was $56.6 million compared with $17.3 million of non-GAAP free cash flow in the previous quarter.

In the quarter under review, Blackbaud repurchased 405,047 shares worth $30 million. The company has shares worth $151 million left under its current buyback program of $250 million.

Zacks Rank & Stocks to Consider

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

Some other top-ranked stocks in the broader technology sector are Avnet (AVT - Free Report) , CyberArk Software (CYBR - Free Report) and CACI International (CACI - Free Report) . Avnet sports a Zacks Rank #1 (Strong Buy), while CACI and CyberArk carry a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.

Avnet and CACI are scheduled to report their quarterly results on Aug 11, while CyberArk is slated to announce results on Aug 12.

Long-term earnings growth rate of Avnet, CyberArk and CACI is pegged at 22.7%, 12.2% and 13.1%, respectively.

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