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Blackbaud (BLKB) Q3 Earnings and Revenues Beat Estimates
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Blackbaud, Inc. (BLKB - Free Report) delivered third-quarter 2021 non-GAAP earnings of 78 cents per share, which beat the Zacks Consensus Estimate by 25.8%. The bottom line increased 6.9% year over year.
Total revenues increased 7.5% year over year to $231.2 million and surpassed the consensus mark by 5.4%.
Quarter in Detail
Total recurring revenues in the reported quarter were $218.5 million, up 9.2% and contributed 94.5% to total revenues.
Non-GAAP organic revenues were up 7.5% year over year. Non-GAAP organic revenues on a constant currency (CC) basis amounted to $229.2 million, up 6.6% year over year. Non-GAAP organic recurring revenues rose 9.2% year over year.
One-time services and other revenues (5.5% of total revenues) amounted to $12.7 million, down 14.8% year over year.
Recent Business Highlights
Blackbaud continues to add technological innovations specifically designed to support the unique needs of social organizations amid the COVID-19 outbreak, which might have improved the reputation of the company’s brand and enhanced recognition for its products.
Higher adoption of Blackbaud’s new solutions is likely to drive the top line and boost retention among existing customers.
The company also announced that it formally moved to a remote-first workforce approach.
Margin Details
Non-GAAP gross margin came in at 59% compared with 60.1% reported in the prior-year quarter.
Total operating expenses were up 5.1% on a year-over-year basis to $111.7 million. As a percentage of revenues, the figure contracted 110 bps to 48.3%.
Non-GAAP operating margin contracted 60 basis points from the year-ago quarter’s figure to 21.8%.
Non-GAAP adjusted EBITDA margin came in at 27% in the third quarter.
Balance Sheet & Cash Flow
As on Sep 30, 2021, Blackbaud had total cash, cash equivalents and restricted cash of $243.7 million compared with $462.9 million as of Jun 30, 2021.
Total debt (including current portion) as of Sep 30, 2021 amounted to $527.4 million compared with $544.9 million as of Jun 30, 2021.
Cash provided by operating activities for three months ended Sep 30, 2021, was $69.9 million compared with $69.8 million for three months ended Jun 30, 2021.
Non-GAAP free cash flow for the third quarter was $57.9 million compared with $56.6 million of non-GAAP free cash flow in the previous quarter.
In the quarter under review, Blackbaud repurchased 583,280 shares worth $40.3 million. The company has shares worth $111 million left under its current buyback program of $250 million.
Zacks Rank & Stocks to Consider
Blackbaud currently carries a Zacks Rank #3 (Hold).
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Blackbaud (BLKB) Q3 Earnings and Revenues Beat Estimates
Blackbaud, Inc. (BLKB - Free Report) delivered third-quarter 2021 non-GAAP earnings of 78 cents per share, which beat the Zacks Consensus Estimate by 25.8%. The bottom line increased 6.9% year over year.
Total revenues increased 7.5% year over year to $231.2 million and surpassed the consensus mark by 5.4%.
Quarter in Detail
Total recurring revenues in the reported quarter were $218.5 million, up 9.2% and contributed 94.5% to total revenues.
Blackbaud, Inc. Price, Consensus and EPS Surprise
Blackbaud, Inc. price-consensus-eps-surprise-chart | Blackbaud, Inc. Quote
Non-GAAP organic revenues were up 7.5% year over year. Non-GAAP organic revenues on a constant currency (CC) basis amounted to $229.2 million, up 6.6% year over year. Non-GAAP organic recurring revenues rose 9.2% year over year.
One-time services and other revenues (5.5% of total revenues) amounted to $12.7 million, down 14.8% year over year.
Recent Business Highlights
Blackbaud continues to add technological innovations specifically designed to support the unique needs of social organizations amid the COVID-19 outbreak, which might have improved the reputation of the company’s brand and enhanced recognition for its products.
Higher adoption of Blackbaud’s new solutions is likely to drive the top line and boost retention among existing customers.
The company also announced that it formally moved to a remote-first workforce approach.
Margin Details
Non-GAAP gross margin came in at 59% compared with 60.1% reported in the prior-year quarter.
Total operating expenses were up 5.1% on a year-over-year basis to $111.7 million. As a percentage of revenues, the figure contracted 110 bps to 48.3%.
Non-GAAP operating margin contracted 60 basis points from the year-ago quarter’s figure to 21.8%.
Non-GAAP adjusted EBITDA margin came in at 27% in the third quarter.
Balance Sheet & Cash Flow
As on Sep 30, 2021, Blackbaud had total cash, cash equivalents and restricted cash of $243.7 million compared with $462.9 million as of Jun 30, 2021.
Total debt (including current portion) as of Sep 30, 2021 amounted to $527.4 million compared with $544.9 million as of Jun 30, 2021.
Cash provided by operating activities for three months ended Sep 30, 2021, was $69.9 million compared with $69.8 million for three months ended Jun 30, 2021.
Non-GAAP free cash flow for the third quarter was $57.9 million compared with $56.6 million of non-GAAP free cash flow in the previous quarter.
In the quarter under review, Blackbaud repurchased 583,280 shares worth $40.3 million. The company has shares worth $111 million left under its current buyback program of $250 million.
Zacks Rank & Stocks to Consider
Blackbaud currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector include HP Inc (HPQ - Free Report) , Synaptics Incorporated (SYNA - Free Report) and Etsy (ETSY - Free Report) . All the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Long-term earnings growth rate of HP Inc, Synaptics and Etsy is pegged at 12.7%, 10% and 19.7%, respectively.