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Blackbaud (BLKB) Q1 Earnings Beat Estimates, Revenues Up Y/Y
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Blackbaud (BLKB - Free Report) reported first-quarter 2024 non-GAAP earnings per share (EPS) of 93 cents, which surpassed the Zacks Consensus Estimate by 9.4%. The bottom line increased 29.2% year over year.
Total revenues jumped 6.7% year over year to $279.3 million, driven by growth in recurring revenues. Successful execution of its five-point operating plan has been instrumental in driving revenue growth and increasing profitability. Revenues missed the Zacks Consensus Estimate by 1.1%.
Total recurring revenues (contributed 97.2% to total revenues) in the reported quarter amounted to $271.5 million, up 7.4% year over year. One-time services and other revenues (2.8% of total revenues) amounted to $7.7 million, down 14.1% year over year.
Non-GAAP organic revenues were up 6.9% on a reported basis and 6.6% on a constant-currency basis, year over year. Non-GAAP organic recurring revenues rose 7.4%.
Non-GAAP gross margin was 61.4% compared with 59.8% a year ago.
Total operating expenses declined 4.2% on a year-over-year basis to $142.3 million.
Non-GAAP operating margin jumped 430 basis points (bps) to 25.9%.
Non-GAAP adjusted EBITDA margin was 31.8%, up 460 bps year over year.
Balance Sheet & Cash Flow
As of Mar 31, 2024, Blackbaud had total cash, cash equivalents and restricted cash of $382.9 million compared with $728.3 million as of Dec 31, 2023.
Total debt (including the current portion) as of Mar 31, 2024, was $1039.8 million compared with $779.7 million as of Dec 31, 2023.
For the first quarter, cash provided by operating activities was $64.6 million compared with $21.8 million in the prior-year period.
Non-GAAP adjusted free cash flow was $53.3 million compared with $15.7 million in the year-ago quarter.
In the first-quarter, BLKB repurchased 3 million shares. As a part of its previously announced buy-back authorization, the company expects to repurchase 7-10% of the outstanding stock in 2024 with 5.5% already repurchased in the first quarter.
Outlook
With two specific transactions in the first quarter — the divestiture of EVERFI's nonrecurring creative services business and recent stock repurchase activity, Blackbaud updated its full-year financial guidance.
BLKB now expects non-GAAP revenues between $1.164 billion and $1.194 billion, compared with earlier guided range of $1.17 - $1.2 billion.
The company continues to project non-GAAP adjusted EBITDA margin in the range of 32.5-33.5%, unchanged from the earlier guidance.
Non-GAAP EPS is anticipated to be between $4.12 and $4.38, unaltered from the earlier guidance.
Non-GAAP adjusted free cash flow for 2024 is forecasted to be in the range of $254-$274 million, unchanged from the prior outlook.
Non-GAAP annualized effective tax rate is the same as the prior estimation of approximately 24.5%.
Interest expense is now expected in the band of $48 million to $52 million, changed the from earlier guidance of $34 million to $38 million.
Fully diluted shares are now anticipated to be 52 million to 53 million compared with the earlier guided range of 53.5-54.5 million.
Capital expenditures are expected to be in the range of $65 million to $75 million, which includes $60-$70 million of capitalized software and content development costs. This remains the same as the earlier outlook.
Zacks Rank
Blackbaud currently carries a Zacks Rank #3 (Hold).
Arista Networks, Inc. (ANET - Free Report) is slated to announce first-quarter 2024 results on May 7, after the market close. The stock, sporting a Zacks Rank #1 at present, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has a long-term earnings growth expectation of 17.5% and delivered an earnings surprise of 13.3%, on average, in the trailing four quarters.
Airgain, Inc. (AIRG - Free Report) is slated to report first-quarter 2024 results on May 8, after the closing bell. It currently carries a Zacks Rank #2 (Buy). It has a long-term earnings growth expectation of 35%.
Headquartered in San Diego, CA, Airgain offers integrated wireless solutions in the form of antenna products. These products are equipped to solve critical connectivity needs in both the design process and the operating environment across the enterprise, automotive and consumer markets. Ideal for original equipment and design manufacturers, vertical markets, chipset vendors, service providers, value-added resellers and software developers worldwide, the customizable antennas from Airgain serve both indoor and outdoor connectivity issues.
Turtle Beach Corporation (HEAR - Free Report) is slated to report first-quarter 2024 results on May 7, after the closing bell. It develops and markets gaming headset solutions for various platforms, including video game and entertainment consoles, handheld consoles, personal computers, tablets and mobile devices under the Turtle Beach brand. It has a Zacks Rank #2.
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Blackbaud (BLKB) Q1 Earnings Beat Estimates, Revenues Up Y/Y
Blackbaud (BLKB - Free Report) reported first-quarter 2024 non-GAAP earnings per share (EPS) of 93 cents, which surpassed the Zacks Consensus Estimate by 9.4%. The bottom line increased 29.2% year over year.
Total revenues jumped 6.7% year over year to $279.3 million, driven by growth in recurring revenues. Successful execution of its five-point operating plan has been instrumental in driving revenue growth and increasing profitability. Revenues missed the Zacks Consensus Estimate by 1.1%.
Total recurring revenues (contributed 97.2% to total revenues) in the reported quarter amounted to $271.5 million, up 7.4% year over year. One-time services and other revenues (2.8% of total revenues) amounted to $7.7 million, down 14.1% year over year.
Non-GAAP organic revenues were up 6.9% on a reported basis and 6.6% on a constant-currency basis, year over year. Non-GAAP organic recurring revenues rose 7.4%.
Blackbaud, Inc. Price, Consensus and EPS Surprise
Blackbaud, Inc. price-consensus-eps-surprise-chart | Blackbaud, Inc. Quote
Margin Details
Non-GAAP gross margin was 61.4% compared with 59.8% a year ago.
Total operating expenses declined 4.2% on a year-over-year basis to $142.3 million.
Non-GAAP operating margin jumped 430 basis points (bps) to 25.9%.
Non-GAAP adjusted EBITDA margin was 31.8%, up 460 bps year over year.
Balance Sheet & Cash Flow
As of Mar 31, 2024, Blackbaud had total cash, cash equivalents and restricted cash of $382.9 million compared with $728.3 million as of Dec 31, 2023.
Total debt (including the current portion) as of Mar 31, 2024, was $1039.8 million compared with $779.7 million as of Dec 31, 2023.
For the first quarter, cash provided by operating activities was $64.6 million compared with $21.8 million in the prior-year period.
Non-GAAP adjusted free cash flow was $53.3 million compared with $15.7 million in the year-ago quarter.
In the first-quarter, BLKB repurchased 3 million shares. As a part of its previously announced buy-back authorization, the company expects to repurchase 7-10% of the outstanding stock in 2024 with 5.5% already repurchased in the first quarter.
Outlook
With two specific transactions in the first quarter — the divestiture of EVERFI's nonrecurring creative services business and recent stock repurchase activity, Blackbaud updated its full-year financial guidance.
BLKB now expects non-GAAP revenues between $1.164 billion and $1.194 billion, compared with earlier guided range of $1.17 - $1.2 billion.
The company continues to project non-GAAP adjusted EBITDA margin in the range of 32.5-33.5%, unchanged from the earlier guidance.
Non-GAAP EPS is anticipated to be between $4.12 and $4.38, unaltered from the earlier guidance.
Non-GAAP adjusted free cash flow for 2024 is forecasted to be in the range of $254-$274 million, unchanged from the prior outlook.
Non-GAAP annualized effective tax rate is the same as the prior estimation of approximately 24.5%.
Interest expense is now expected in the band of $48 million to $52 million, changed the from earlier guidance of $34 million to $38 million.
Fully diluted shares are now anticipated to be 52 million to 53 million compared with the earlier guided range of 53.5-54.5 million.
Capital expenditures are expected to be in the range of $65 million to $75 million, which includes $60-$70 million of capitalized software and content development costs. This remains the same as the earlier outlook.
Zacks Rank
Blackbaud currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Arista Networks, Inc. (ANET - Free Report) is slated to announce first-quarter 2024 results on May 7, after the market close. The stock, sporting a Zacks Rank #1 at present, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has a long-term earnings growth expectation of 17.5% and delivered an earnings surprise of 13.3%, on average, in the trailing four quarters.
Airgain, Inc. (AIRG - Free Report) is slated to report first-quarter 2024 results on May 8, after the closing bell. It currently carries a Zacks Rank #2 (Buy). It has a long-term earnings growth expectation of 35%.
Headquartered in San Diego, CA, Airgain offers integrated wireless solutions in the form of antenna products. These products are equipped to solve critical connectivity needs in both the design process and the operating environment across the enterprise, automotive and consumer markets. Ideal for original equipment and design manufacturers, vertical markets, chipset vendors, service providers, value-added resellers and software developers worldwide, the customizable antennas from Airgain serve both indoor and outdoor connectivity issues.
Turtle Beach Corporation (HEAR - Free Report) is slated to report first-quarter 2024 results on May 7, after the closing bell. It develops and markets gaming headset solutions for various platforms, including video game and entertainment consoles, handheld consoles, personal computers, tablets and mobile devices under the Turtle Beach brand. It has a Zacks Rank #2.