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Don't Overlook Blackbaud (BLKB) International Revenue Trends While Assessing the Stock

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Have you looked into how Blackbaud (BLKB - Free Report) performed internationally during the quarter ending March 2024? Considering the widespread global presence of this software and services provider in the nonprofit sector, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.

The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for investors to comprehend how much a company relies on these foreign markets, as this understanding reveals the firm's potential for consistent earnings, its capacity to harness different economic cycles, and its overall growth prospects.

Being present in international markets serves as a counterbalance to domestic economic challenges while offering chances to engage with more rapidly evolving economies. However, this kind of diversification introduces challenges like currency fluctuations, geopolitical uncertainties and varying market trends.

Upon examining BLKB's recent quarterly performance, we noticed several interesting patterns in the revenue generated from its international segments, which are commonly analyzed and observed by Wall Street experts.

The company's total revenue for the quarter amounted to $279.25 million, marking an increase of 6.7% from the year-ago quarter. We will next turn our attention to dissecting BLKB's international revenue to get a clearer picture of how significant its operations are outside its main base.

Unveiling Trends in BLKB's International Revenues

Other Countries generated $15.01 million in revenues for the company in the last quarter, constituting 5.4% of the total. This represented a surprise of +0.08% compared to the $15 million projected by Wall Street analysts. Comparatively, in the previous quarter, Other Countries accounted for $16.86 million (5.7%), and in the year-ago quarter, it contributed $14.04 million (5.4%) to the total revenue.

Of the total revenue, $26.13 million came from United Kingdom during the last fiscal quarter, accounting for 9.4%. This represented a surprise of +1.24% as analysts had expected the region to contribute $25.81 million to the total revenue. In comparison, the region contributed $20.86 million, or 7.1%, and $26.05 million, or 10%, to total revenue in the previous and year-ago quarters, respectively.

Projected Revenues in Foreign Markets

Wall Street analysts expect Blackbaud to report $289.3 million in total revenue for the current fiscal quarter, indicating an increase of 6.7% from the year-ago quarter. Other Countries and United Kingdom are expected to contribute 5.3% ($15.46 million) and 9% ($26.07 million) to the total revenue, respectively.

For the full year, a total revenue of $1.18 billion is expected for the company, reflecting an increase of 7.1% from the year before. The revenues from Other Countries and United Kingdom are expected to make up 5.4% and 8.8% of this total, corresponding to $63.7 million and $104.46 million respectively.

Final Thoughts

Relying on global markets for revenues presents both prospects and challenges for Blackbaud. Therefore, scrutinizing its international revenue trends is key to effectively forecasting the company's future outlook.

In an era of growing international interdependencies and escalating geopolitical disputes, Wall Street analysts are vigilant in tracking these trends for businesses with a global reach, in order to refine their predictions of earnings. It should be noted, however, that a multitude of other elements, such as a company's domestic position, also play a significant role in shaping the earnings forecasts.

Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.

Boasting a remarkable track record that's been externally verified, the Zacks Rank, our unique stock rating system, leverages changes in earnings projections to function as a reliable gauge for predicting short-term stock price movements.

Currently, Blackbaud holds a Zacks Rank #3 (Hold), signifying its potential to match the overall market's performance in the forthcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

A Look at Blackbaud's Recent Stock Price Performance

Over the past month, the stock has seen an increase of 8.4% in its value, whereas the Zacks S&P 500 composite has posted a decrease of 1.6%. The Zacks Computer and Technology sector, Blackbaud's industry group, has descended 0.7% over the identical span. In the past three months, there's been a decline of 4.9% in the company's stock price, against a rise of 3.8% in the S&P 500 index. The broader sector has increased by 4.2% during this interval.

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