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Blackbaud (BLKB) Q1 Earnings Top Estimates, Revenues Rise Y/Y

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Blackbaud (BLKB - Free Report) reported first-quarter 2023 non-GAAP earnings of 72 cents per share, which surpassed the Zacks Consensus Estimate by 4.4%. The bottom line increased 26.3% year over year.

Total revenues increased 1.8% year over year to $261.8 million and beat the Zacks Consensus Estimate by 1.3%. The top line was driven by strength in recurring revenues.

Total recurring revenues (contributed 96.6% to total revenues) in the reported quarter amounted to $252.7 million, up 3.3% year over year. One-time services and other revenues (3.4% of total revenues) amounted to $9 million, down 27.7% year over year.

Non-GAAP organic revenues were up 2.3% on a reported basis and 3.4% on a constant-currency basis, year over year. Non-GAAP organic recurring revenues rose 3.8% year over year.

Blackbaud, Inc. Price, Consensus and EPS Surprise

Blackbaud, Inc. Price, Consensus and EPS Surprise

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

Margin Details

Non-GAAP gross margin was 59.8%, up 130 basis points (bps) from the prior-year quarter’s levels.

Total operating expenses were up 6.3% on a year-over-year basis to $148.6 million. As a percentage of revenues, the figure expanded 250 bps to 56.8%.

Non-GAAP operating margin expanded 470 bps from the year-ago quarter’s figure to 21.6%.

Non-GAAP adjusted EBITDA margin was 27.2%, up 500 bps year over year.

Balance Sheet & Cash Flow

As of Mar 31, Blackbaud had total cash, cash equivalents and restricted cash of $388.1 million compared with $733.9 million as of Dec 31, 2022.

Total debt (including the current portion) as of Mar 31, amounted to $858.9 million compared with $840.2 million as of Dec 31, 2022.

Cash provided by operating activities in the three months ended Mar 31, was $21.8 million compared with $24.5 million in the prior-year period.

Non-GAAP adjusted free cash flow in the first quarter was $15.7 million compared with $8.4 million in the previous-year quarter.

2023 Guidance

Blackbaud now expects non-GAAP revenues to be between $1.095 billion and $1.125 billion (earlier view: $1.08 billion and $1.11 billion). The Zacks Consensus Estimate is pegged at $1.09 billion.

The company now projects non-GAAP adjusted EBITDA margin in the range of 30.5-31.5% compared with the earlier guided range of 29.5-30.5%.

Non-GAAP earnings per share are anticipated to be between $3.63 and $3.94 compared with the earlier guided range of $3.30-$3.60. The Zacks Consensus Estimate is pegged at $3.43 per share.

Non-GAAP adjusted free cash flow for the year is forecast in the range of $190-$210 million.

Zacks Rank & Other Stocks to Consider

Blackbaud currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader technology space are Badger Meter (BMI - Free Report) , Microsoft (MSFT - Free Report) and Arista Networks (ANET - Free Report) . BMI currently sports a Zacks Rank #1 (Strong Buy) whereas Arista Networks and Microsoft 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 Badger Meter’s 2023 earnings has increased 4.7% in the past 60 days to $2.69 per share. BMI’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 5.3%. Shares of BMI have improved 68.3% in the past year.

The Zacks Consensus Estimate for Microsoft’s fiscal 2023 earnings increased 2.9% in the past 60 days at $9.61 per share. The long-term earnings growth rate is expected to be 11.7%.

Microsoft’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 3.3%. Shares of MSFT have gained 9.7% in the past year.

The Zacks Consensus Estimate for Arista Networks’ 2023 earnings is pegged at $5.78 per share. The long-term earnings growth rate is anticipated to be 14.2%.

Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 14.7%. Shares of ANET have increased 19.6% in the past year.

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