Blackbaud Inc. Earnings Cheat Sheet: Beats Estimates

The Cheat Sheet

Blackbaud Inc.

reported net income above Wall Street’s expectations for the third quarter. Blackbaud is a global provider of software and related services designed specifically for nonprofit organizations.

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Blackbaud Earnings Cheat Sheet for the Third Quarter

Results: Net income for Blackbaud Inc. rose to $9.8 million (22 cents per share) vs. $8.5 million (20 cents per share) in the same quarter a year earlier. This marks a rise of 14.6% from the year earlier quarter.

Revenue: Rose 14.8% to $95.5 million from the year earlier quarter.

Actual vs. Wall St. Expectations: BLKB reported adjusted net income of 29 cents per share. By that measure, the company beat the mean estimate of 24 cents per share. Analysts were expecting revenue of $96.3 million.

Quoting Management: “During the third quarter, we closed a record seven new Enterprise CRM deals as Blackbaud continues to expand its growing leadership position at the high-end of the nonprofit market. Our Enterprise CRM wins continue to be diversified across our major nonprofit sub-verticals, and two of our third quarter wins were with international nonprofit organizations,” Chardon added. “Our General Markets Business Unit is also executing at a high level, delivering strong growth and gaining significant market share in the mid-market. Blackbaud has created a strong market leadership position in the mid-market over several decades, and we believe it remains a large and underpenetrated market opportunity.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 31.5% and in the first quarter, the figure rose 27.4%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 2 cents in the second quarter, by 5 cents in the first quarter, and by one cent in the fourth quarter of the last fiscal year.

Gross margin shrank 1.5 percentage points to 58.5%. The contraction appeared to be driven by increased costs, which rose 19.2% from the year earlier quarter while revenue rose 14.8%.

Revenue has now gone up for three straight quarters. In the second quarter, revenue rose 15.8% to $93.4 million while the figure rose 14.5% in the first quarter from the year earlier.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from 27 cents per share to 25 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. At 88 cents per share, the average estimate for the fiscal year has fallen from 92 cents ninety days ago.

Competitors to Watch: Convio, Inc. , Microsoft Corporation , Oracle Corporation , Citrix Systems, Inc. , salesforce.com, inc. , Blackboard Inc. , OpenTable Inc , Cover-All Tech. Inc. (COVR), Peerless Systems Corp. , and JDA Software Group, Inc. .

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)

 

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