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Why Is Blackbaud (BLKB) Down 9.1% Since Last Earnings Report?
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It has been about a month since the last earnings report for Blackbaud (BLKB - Free Report) . Shares have lost about 9.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Blackbaud due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Blackbaud Q2 Earnings Beat Estimates, Revenues Up Y/Y
Blackbaud delivered non-GAAP earnings of 75 cents per share in second-quarter 2022, which surpassed the Zacks Consensus Estimate by 8.7%. The bottom line declined 8.5% year over year.
Total revenues increased 15.5% year over year to $264.9 million but missed the consensus mark by 0.8%. The top line was driven by higher transactional volume and increases in contractual recurring revenues.
Total recurring revenues in the reported quarter amounted to $252.5 million, up 16.4% and contributed 95.3% to total revenues. One-time services and other revenues (4.7% of total revenues) amounted to $12.4 million, decreasing 0.3% year over year.
Non-GAAP organic revenues were up 3.8% year over year. Non-GAAP organic revenues on a constant-currency (CC) basis amounted to $267.8 million, up 4.9% year over year. Non-GAAP organic recurring revenues rose 5.1% year over year.
Recent Business Highlights
The company announced that it achieved carbon neutrality across operations and data centers for 2021. Blackbaud added that it remains committed to new transparent sustainability reporting (including TCFD and CDP) for 2022.
On Jun 2, 2022, Blackbaud announced the Prospect Insights tool, the latest addition to Blackbaud Raiser's Edge NXT, to offer multi-dimensional fundraising insights and actions. Prospect Insights allow small and mid-size organizations to leverage the simple interface in Raiser's Edge NXT to pursue major gifts more effectively without spending more on support staff and expensive custom services.
On May 17, 2022, Blackbaud partnered with PairSoft to announce the availability of PairSoft Tile within Blackbaud’s Raiser’s Edge NXT and Financial Edge NXT solutions. The new integration allows users to easily access, search and capture documents of any organization, including documents related to donors, gifts and actions.
Margin Details
Non-GAAP gross margin came in at 58.8%, down 30 basis points (bps) from the prior-year quarter’s levels.
Total operating expenses were up 28.6% on a year-over-year basis to $139.3 million. As a percentage of revenues, the figure expanded 535 bps to 52.6%.
Non-GAAP operating margin contracted 300 bps from the year-ago quarter’s figure to 20.6%.
Non-GAAP adjusted EBITDA margin came in at 26.6%, up 80 bps year over year.
Balance Sheet & Cash Flow
As of Jun 30, 2022, Blackbaud had total cash, cash equivalents and restricted cash of $478.5 million compared with $313.4 million as of Mar 31, 2022.
Total debt (including the current portion) as of Jun 30, 2022, amounted to $939.8 million compared with $981.2 million as of Mar 31, 2022.
Cash provided by operating activities in the three months ended Jun 30, 2022, was $57.3 million compared with $69.8 million in the prior-year period.
Non-GAAP adjusted free cash flow in the second quarter was $43.9 million compared with $59 million of non-GAAP adjusted free cash flow in the previous-year quarter.
2022 Guidance Reiterated
The company has lowered its guidance for 2022 owing to changing macroeconomics factors such as unfavorable foreign-exchange rates and high-interest rates; and updated sales numbers from EVERFI.
Blackbaud now expects non-GAAP revenues between $1.05 billion and $1.07 billion compared with the previous guidance of $1.075 billion and $1.095 billion.
The company projects a non-GAAP adjusted EBITDA margin in the range of 23.7-24.2% compared with the previous guidance of 24-24.5%
Non-GAAP earnings are expected to be between $2.43 and $2.63 per share compared with the previous guidance of $2.63 and $2.82 per share.
Non-GAAP adjusted free cash flow for the year is forecast in the range of $140-$150 million compared with the previous guidance of $165-$175 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -25.64% due to these changes.
VGM Scores
At this time, Blackbaud has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Blackbaud has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Blackbaud (BLKB) Down 9.1% Since Last Earnings Report?
It has been about a month since the last earnings report for Blackbaud (BLKB - Free Report) . Shares have lost about 9.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Blackbaud due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Blackbaud Q2 Earnings Beat Estimates, Revenues Up Y/Y
Blackbaud delivered non-GAAP earnings of 75 cents per share in second-quarter 2022, which surpassed the Zacks Consensus Estimate by 8.7%. The bottom line declined 8.5% year over year.
Total revenues increased 15.5% year over year to $264.9 million but missed the consensus mark by 0.8%. The top line was driven by higher transactional volume and increases in contractual recurring revenues.
Total recurring revenues in the reported quarter amounted to $252.5 million, up 16.4% and contributed 95.3% to total revenues. One-time services and other revenues (4.7% of total revenues) amounted to $12.4 million, decreasing 0.3% year over year.
Non-GAAP organic revenues were up 3.8% year over year. Non-GAAP organic revenues on a constant-currency (CC) basis amounted to $267.8 million, up 4.9% year over year. Non-GAAP organic recurring revenues rose 5.1% year over year.
Recent Business Highlights
The company announced that it achieved carbon neutrality across operations and data centers for 2021. Blackbaud added that it remains committed to new transparent sustainability reporting (including TCFD and CDP) for 2022.
On Jun 2, 2022, Blackbaud announced the Prospect Insights tool, the latest addition to Blackbaud Raiser's Edge NXT, to offer multi-dimensional fundraising insights and actions. Prospect Insights allow small and mid-size organizations to leverage the simple interface in Raiser's Edge NXT to pursue major gifts more effectively without spending more on support staff and expensive custom services.
On May 17, 2022, Blackbaud partnered with PairSoft to announce the availability of PairSoft Tile within Blackbaud’s Raiser’s Edge NXT and Financial Edge NXT solutions. The new integration allows users to easily access, search and capture documents of any organization, including documents related to donors, gifts and actions.
Margin Details
Non-GAAP gross margin came in at 58.8%, down 30 basis points (bps) from the prior-year quarter’s levels.
Total operating expenses were up 28.6% on a year-over-year basis to $139.3 million. As a percentage of revenues, the figure expanded 535 bps to 52.6%.
Non-GAAP operating margin contracted 300 bps from the year-ago quarter’s figure to 20.6%.
Non-GAAP adjusted EBITDA margin came in at 26.6%, up 80 bps year over year.
Balance Sheet & Cash Flow
As of Jun 30, 2022, Blackbaud had total cash, cash equivalents and restricted cash of $478.5 million compared with $313.4 million as of Mar 31, 2022.
Total debt (including the current portion) as of Jun 30, 2022, amounted to $939.8 million compared with $981.2 million as of Mar 31, 2022.
Cash provided by operating activities in the three months ended Jun 30, 2022, was $57.3 million compared with $69.8 million in the prior-year period.
Non-GAAP adjusted free cash flow in the second quarter was $43.9 million compared with $59 million of non-GAAP adjusted free cash flow in the previous-year quarter.
2022 Guidance Reiterated
The company has lowered its guidance for 2022 owing to changing macroeconomics factors such as unfavorable foreign-exchange rates and high-interest rates; and updated sales numbers from EVERFI.
Blackbaud now expects non-GAAP revenues between $1.05 billion and $1.07 billion compared with the previous guidance of $1.075 billion and $1.095 billion.
The company projects a non-GAAP adjusted EBITDA margin in the range of 23.7-24.2% compared with the previous guidance of 24-24.5%
Non-GAAP earnings are expected to be between $2.43 and $2.63 per share compared with the previous guidance of $2.63 and $2.82 per share.
Non-GAAP adjusted free cash flow for the year is forecast in the range of $140-$150 million compared with the previous guidance of $165-$175 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -25.64% due to these changes.
VGM Scores
At this time, Blackbaud has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Blackbaud has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.