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Blackbaud (BLKB) Q4 Earnings and Revenues Beat Estimates
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Blackbaud, Inc. (BLKB - Free Report) delivered non-GAAP earnings of 75 cents per share in fourth-quarter 2021, which beat the Zacks Consensus Estimate by 11.9%. The bottom line declined 11.8% year over year.
Total revenues increased 2.2% year over year to $247.9 million and surpassed the consensus mark by 2.2%.
For 2021, total revenues increased 1.6% year over year to $927.7 million. Non-GAAP earnings amounted to $3.04 per share, up 3.4% year over year.
Quarter in Detail
Total recurring revenues in the reported quarter were $238.6 million, up 4% and contributed 96.2% to total revenues.
Non-GAAP organic revenues were up 2.2% year over year. Non-GAAP organic revenues on a constant currency (CC) basis amounted to $247.1 million, up 1.9% year over year. Non-GAAP organic recurring revenues rose 4% year over year.
One-time services and other revenues (3.8% of total revenues) amounted to $9.3 million, down 28.8% 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.
In January 2022, Blackbaud acquired Washington D.C.-based EVERFI in a cash and stock deal worth $750 million. EVERFI provides Impact-as-a-Service (“IaaS”) solution and digital educational content, which is now being used by 45 million learners worldwide, noted Blackbaud. The acquisition also provides cross-selling and upselling opportunities with Blackbaud’s YourCause solution.
EVERFI expands Blackbaud’s total addressable market or TAM to more than $20 billion. Half of the company’s TAM now represents the lucrative corporate sector, stated Blackbaud.
Margin Details
Non-GAAP gross margin came in at 55.3% compared with 57.1% reported in the prior-year quarter.
Total operating expenses were up 5.3% on a year-over-year basis to $130.5 million. As a percentage of revenues, the figure contracted 160 bps to 52.6%.
Non-GAAP operating margin contracted 420 basis points (bps) from the year-ago quarter’s figure to 19.8%.
Non-GAAP adjusted EBITDA margin came in at 24.5% in the fourth quarter, down 390 bps year over year.
Balance Sheet & Cash Flow
As of Dec 31, 2021, Blackbaud had total cash, cash equivalents and restricted cash of $651.6 million compared with $243.7 million as of Sep 30, 2021.
Total debt (including current portion) as of Dec 31, 2021, amounted to $956.2 million compared with $527.4 million as of Sep 30, 2021.
Cash provided by operating activities for three months ended Dec 31, 2021, was $43.9 million compared with $69.9 million for three months ended Sep 30, 2021.
Non-GAAP free cash flow for the fourth quarter was $29.7 million compared with $57.9 million of non-GAAP free cash flow in the previous quarter.
In the quarter under review, Blackbaud repurchased 138,785 shares worth $10.1 million. In December 2021, the company replenished its current buyback program to $250 million.
For 2021, cash provided by operating activities was $213.7 million compared with $148 million for 2020. Non-GAAP free cash flow for 2021 was $161.5 million.
2022 Guidance
Blackbaud expects non-GAAP revenues between $1.075 billion and $1.095 billion. The forecast includes a $120-million contribution from EVERFI.
The company projects a non-GAAP adjusted EBITDA margin in the range of 24-24.5%. Non-GAAP earnings are expected to be between $2.63 and $2.82 per share.
Adjusted free cash flow for the year is forecast in the range of $165 -$175 million.
Zacks Rank & Stocks to Consider
Blackbaud currently carries a Zacks Rank #5 (Strong Sell).
The Zacks Consensus Estimate for Broadcom’s fiscal 2022 earnings is pegged at $33.15 per share. The long-term earnings growth rate of the company is pegged at 14.5%.
Broadcom’s earnings beat the Zacks Consensus Estimate in all the preceding four quarters, the average surprise being 1.41%. Shares of Broadcom have increased 26% in the past year.
The Zacks Consensus Estimate for Apple’s fiscal 2022 earnings is pegged at $6.15 per share. The long-term earnings growth rate of the company is pegged at 12.5%.
Apple’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 20.3%. Shares of AAPL have rallied 31.4% in the past year.
The Zacks Consensus Estimate for Texas Instruments for 2022 earnings is pegged at $9.09 per share. The long-term earnings growth rate of the company is pegged at 9.3%.
Texas Instruments’ earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 12.4%. Shares of TXN have declined 1.2% in the past year.
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Blackbaud (BLKB) Q4 Earnings and Revenues Beat Estimates
Blackbaud, Inc. (BLKB - Free Report) delivered non-GAAP earnings of 75 cents per share in fourth-quarter 2021, which beat the Zacks Consensus Estimate by 11.9%. The bottom line declined 11.8% year over year.
Total revenues increased 2.2% year over year to $247.9 million and surpassed the consensus mark by 2.2%.
For 2021, total revenues increased 1.6% year over year to $927.7 million. Non-GAAP earnings amounted to $3.04 per share, up 3.4% year over year.
Quarter in Detail
Total recurring revenues in the reported quarter were $238.6 million, up 4% and contributed 96.2% 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 2.2% year over year. Non-GAAP organic revenues on a constant currency (CC) basis amounted to $247.1 million, up 1.9% year over year. Non-GAAP organic recurring revenues rose 4% year over year.
One-time services and other revenues (3.8% of total revenues) amounted to $9.3 million, down 28.8% 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.
In January 2022, Blackbaud acquired Washington D.C.-based EVERFI in a cash and stock deal worth $750 million. EVERFI provides Impact-as-a-Service (“IaaS”) solution and digital educational content, which is now being used by 45 million learners worldwide, noted Blackbaud. The acquisition also provides cross-selling and upselling opportunities with Blackbaud’s YourCause solution.
EVERFI expands Blackbaud’s total addressable market or TAM to more than $20 billion. Half of the company’s TAM now represents the lucrative corporate sector, stated Blackbaud.
Margin Details
Non-GAAP gross margin came in at 55.3% compared with 57.1% reported in the prior-year quarter.
Total operating expenses were up 5.3% on a year-over-year basis to $130.5 million. As a percentage of revenues, the figure contracted 160 bps to 52.6%.
Non-GAAP operating margin contracted 420 basis points (bps) from the year-ago quarter’s figure to 19.8%.
Non-GAAP adjusted EBITDA margin came in at 24.5% in the fourth quarter, down 390 bps year over year.
Balance Sheet & Cash Flow
As of Dec 31, 2021, Blackbaud had total cash, cash equivalents and restricted cash of $651.6 million compared with $243.7 million as of Sep 30, 2021.
Total debt (including current portion) as of Dec 31, 2021, amounted to $956.2 million compared with $527.4 million as of Sep 30, 2021.
Cash provided by operating activities for three months ended Dec 31, 2021, was $43.9 million compared with $69.9 million for three months ended Sep 30, 2021.
Non-GAAP free cash flow for the fourth quarter was $29.7 million compared with $57.9 million of non-GAAP free cash flow in the previous quarter.
In the quarter under review, Blackbaud repurchased 138,785 shares worth $10.1 million. In December 2021, the company replenished its current buyback program to $250 million.
For 2021, cash provided by operating activities was $213.7 million compared with $148 million for 2020. Non-GAAP free cash flow for 2021 was $161.5 million.
2022 Guidance
Blackbaud expects non-GAAP revenues between $1.075 billion and $1.095 billion. The forecast includes a $120-million contribution from EVERFI.
The company projects a non-GAAP adjusted EBITDA margin in the range of 24-24.5%. Non-GAAP earnings are expected to be between $2.63 and $2.82 per share.
Adjusted free cash flow for the year is forecast in the range of $165 -$175 million.
Zacks Rank & Stocks to Consider
Blackbaud currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks worth considering from the broader technology sector include Broadcom (AVGO - Free Report) , Apple (AAPL - Free Report) and Texas Instruments (TXN - Free Report) . Apple sports a Zacks Rank #1 (Strong Buy) while Broadcom and Texas Instruments carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Broadcom’s fiscal 2022 earnings is pegged at $33.15 per share. The long-term earnings growth rate of the company is pegged at 14.5%.
Broadcom’s earnings beat the Zacks Consensus Estimate in all the preceding four quarters, the average surprise being 1.41%. Shares of Broadcom have increased 26% in the past year.
The Zacks Consensus Estimate for Apple’s fiscal 2022 earnings is pegged at $6.15 per share. The long-term earnings growth rate of the company is pegged at 12.5%.
Apple’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 20.3%. Shares of AAPL have rallied 31.4% in the past year.
The Zacks Consensus Estimate for Texas Instruments for 2022 earnings is pegged at $9.09 per share. The long-term earnings growth rate of the company is pegged at 9.3%.
Texas Instruments’ earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 12.4%. Shares of TXN have declined 1.2% in the past year.