Back to top

Image: Bigstock

Blackbaud (BLKB) Q2 Earnings & Revenues Surpass Estimates

Read MoreHide Full Article

Shares of Blackbaud, Inc. (BLKB - Free Report) are up almost 1.5% following its second-quarter 2019 earnings release. The company delivered second-quarter non-GAAP earnings of 66 cents per share, outpacing the Zacks Consensus Estimate of 55 cents. However, the figure declined 4.3% from the year-ago quarter.

Total non-GAAP revenues improved 5.5% year over year to $226.4 million, surpassing the Zacks Consensus Estimate of $224 million.

Blackbaud’s stock has gained 39.9% on a year-to-date basis, outperforming the industry's rally of 35.1%.

Quarter Details

Blackbaud reports maintenance and subscriptions combined under recurring revenues as it is shifting toward a cloud-based subscription model from the traditional revenue-base model.

Total non-GAAP recurring revenues for the reported quarter came in at $209.2 million, accounting for 92.4% of total non-GAAP revenues. The figure was also up 8% year over year.

One-time services and other revenues were pegged at $17.2 million (almost 8% of total revenues), declining 17.9% year over year.

Non-GAAP organic revenues improved 2.6% year over year (up 3.6% on a constant currency basis) to $221.1 million. Meanwhile, non-GAAP organic recurring revenues advanced 5% to $204.2 million.

Margin Details

Non-GAAP gross profit advanced 4.5% from the year-ago quarter to $137.7 million. However, non-GAAP gross margin contracted 60 bps to 60.8%.

Blackbaud’s non-GAAP operating income for the quarter under review declined 3.9% from the year-ago quarter to reach almost $43.5 million.

Non-GAAP operating margin contracted 190 bps from the year-ago figure to 19.2%. The decrease can primarily be attributed to higher investments.

Balance Sheet & Cash Flow

As on Jun 30, 2019, Blackbaud had cash and cash equivalents of $32.7 million compared with $25.2 million, at the end of previous quarter. Total debt (including current portion) amounted to $561.3 million, compared with $583.6 million reported at the end of previous quarter.

Cash flow from operating activities for during the quarter came in at $43.5 million. Free cash flow came in at $38 million compared with ($22.5) million reported in the prior-quarter.

The company recently approved a quarterly dividend payment of 12 cents per share to be paid out on Sep 13, 2019 to shareholders as on Aug 28, 2019.

Guidance

Blackbaud maintained 2019 outlook. The company anticipates revenues for 2019 to be in the band of $880-$910 million (mid-point $895 million). The Zacks Consensus Estimate is currently pegged at $892.5 million.

Non-GAAP earnings per share have been forecast in the range of $2.11-$2.28 per share (mid-point of $2.20). The Zacks Consensus Estimate is pegged at $2.19 per share.

Non-GAAP operating margins are projected be in the range of 16.7-17.2%.

Blackbaud continues to anticipate non-GAAP free cash flow expectations for 2019 to be in the range of $124 million to $134 million.

Zacks Rank & Stocks to Consider

Currently, Blackbaud carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology sector are Rosetta Stone , Alteryx, Inc. and Nikon Corp. (NINOY - Free Report) , each flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Rosetta, Alteryx and Nikon have a long-term earnings growth rate of 12.5%, 13.7% and 1%, respectively.

More Stock News: This Is Bigger than the iPhone!                  

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. 

Click here for the 6 trades >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Blackbaud, Inc. (BLKB) - free report >>

Nikon Corp. (NINOY) - free report >>

Published in