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Blackbaud (BLKB) Q4 Earnings Top Estimates, Revenues Up Y/Y
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Blackbaud (BLKB - Free Report) reported fourth-quarter 2023 non-GAAP earnings per share (EPS) of $1.14, which surpassed the Zacks Consensus Estimate by 9.62%. The bottom line increased 67.7% year over year.
Total revenues jumped 7.4% year over year to $295 million, driven by strength in recurring revenues. Revenues missed the Zacks Consensus Estimate by 1%.
Total recurring revenues (contributed 97.4% to the top line) in the reported quarter amounted to $287.3 million, up 8.4% year over year. One-time services and other revenues (2.6%) totaled $7.6 million, down 20.4% year over year. We estimated recurring revenues and one-time services and other revenues to be $281.1 million and $15.2 million, respectively.
Non-GAAP organic revenues grew 7.4% on a reported basis and 6.9% at constant currency, year over year. Non-GAAP organic recurring revenues rose 8.4% year over year.
Margin Details
Non-GAAP gross margin was 59.9%, up 320 basis points (bps) from the prior-year levels.
Total operating expenses declined 18.1% on a year-over-year basis to $126.6 million. As a percentage of revenues, the figure contracted to 43%.
Non-GAAP operating margin extended 840 bps from a year ago to 28.4%.
Non-GAAP adjusted EBITDA margin was 20.9%.
Balance Sheet & Cash Flow
As of Dec 31, 2023, Blackbaud had total cash, cash equivalents and restricted cash of $728.2 million compared with $390.7 million as of Sep 30.
Total debt (including the current portion) as of Dec 31, 2023, was $779.6 million compared with $723.4 million as of Sep 30.
For the fourth quarter, cash provided by operating activities was $199.6 million compared with $203.8 million in the prior-year period.
Non-GAAP adjusted free cash flow in the fourth quarter was $213.5 million compared with $153.6 million in the year-ago quarter.
Guidance
BLKB expects non-GAAP revenues between $1.17 billion and $1.20 billion. The Zacks Consensus Estimate is pegged at $1.11 billion.
The company projects non-GAAP adjusted EBITDA margin in the range of 32.5-33.5%.
Non-GAAP EPS is anticipated to be between $4.12 and $4.38. The Zacks Consensus Estimate is pegged at $3.86 per share.
Non-GAAP adjusted free cash flow for 2024 is forecasted to be in the range of $254-$274 million.
Zacks Rank and Stocks to Consider
Blackbaud currently carries a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for Itron’s 2023 EPS has remained unchanged in the past 60 days to $2.88. ITRI’s long-term earnings growth rate is 23%.
Itron’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 289.3%. Shares of ITRI have gained 32.5% in the past year.
The Zacks Consensus Estimate for Woodward’s 2024 EPS has inched up 5.7% in the past 60 days to $5.20. WWD’s long-term earnings growth rate is 15.5%.
Woodward’s earnings beat the Zacks Consensus in each of the last four quarters, the average surprise being 27.2%. Shares of WWD have gained 33.1% in the past year.
The Zacks Consensus Estimate for Microsoft’s fiscal 2024 EPS is pegged at $11.60, indicating growth of 18.3% from the year-ago levels. The long-term earnings growth rate is pegged at 16.2%.
Microsoft’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 8.8%. MSFT has gained 57.4% in the past year.
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Blackbaud (BLKB) Q4 Earnings Top Estimates, Revenues Up Y/Y
Blackbaud (BLKB - Free Report) reported fourth-quarter 2023 non-GAAP earnings per share (EPS) of $1.14, which surpassed the Zacks Consensus Estimate by 9.62%. The bottom line increased 67.7% year over year.
Total revenues jumped 7.4% year over year to $295 million, driven by strength in recurring revenues. Revenues missed the Zacks Consensus Estimate by 1%.
Total recurring revenues (contributed 97.4% to the top line) in the reported quarter amounted to $287.3 million, up 8.4% year over year. One-time services and other revenues (2.6%) totaled $7.6 million, down 20.4% year over year. We estimated recurring revenues and one-time services and other revenues to be $281.1 million and $15.2 million, respectively.
Blackbaud, Inc. Price, Consensus and EPS Surprise
Blackbaud, Inc. price-consensus-eps-surprise-chart | Blackbaud, Inc. Quote
Non-GAAP organic revenues grew 7.4% on a reported basis and 6.9% at constant currency, year over year. Non-GAAP organic recurring revenues rose 8.4% year over year.
Margin Details
Non-GAAP gross margin was 59.9%, up 320 basis points (bps) from the prior-year levels.
Total operating expenses declined 18.1% on a year-over-year basis to $126.6 million. As a percentage of revenues, the figure contracted to 43%.
Non-GAAP operating margin extended 840 bps from a year ago to 28.4%.
Non-GAAP adjusted EBITDA margin was 20.9%.
Balance Sheet & Cash Flow
As of Dec 31, 2023, Blackbaud had total cash, cash equivalents and restricted cash of $728.2 million compared with $390.7 million as of Sep 30.
Total debt (including the current portion) as of Dec 31, 2023, was $779.6 million compared with $723.4 million as of Sep 30.
For the fourth quarter, cash provided by operating activities was $199.6 million compared with $203.8 million in the prior-year period.
Non-GAAP adjusted free cash flow in the fourth quarter was $213.5 million compared with $153.6 million in the year-ago quarter.
Guidance
BLKB expects non-GAAP revenues between $1.17 billion and $1.20 billion. The Zacks Consensus Estimate is pegged at $1.11 billion.
The company projects non-GAAP adjusted EBITDA margin in the range of 32.5-33.5%.
Non-GAAP EPS is anticipated to be between $4.12 and $4.38. The Zacks Consensus Estimate is pegged at $3.86 per share.
Non-GAAP adjusted free cash flow for 2024 is forecasted to be in the range of $254-$274 million.
Zacks Rank and Stocks to Consider
Blackbaud currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks worth considering in the broader technology space are Itron (ITRI - Free Report) , Woodward (WWD - Free Report) and Microsoft (MSFT - Free Report) . Woodward and Itron sport a Zacks Rank #1 (Strong Buy), while Microsoft carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Itron’s 2023 EPS has remained unchanged in the past 60 days to $2.88. ITRI’s long-term earnings growth rate is 23%.
Itron’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 289.3%. Shares of ITRI have gained 32.5% in the past year.
The Zacks Consensus Estimate for Woodward’s 2024 EPS has inched up 5.7% in the past 60 days to $5.20. WWD’s long-term earnings growth rate is 15.5%.
Woodward’s earnings beat the Zacks Consensus in each of the last four quarters, the average surprise being 27.2%. Shares of WWD have gained 33.1% in the past year.
The Zacks Consensus Estimate for Microsoft’s fiscal 2024 EPS is pegged at $11.60, indicating growth of 18.3% from the year-ago levels. The long-term earnings growth rate is pegged at 16.2%.
Microsoft’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 8.8%. MSFT has gained 57.4% in the past year.