Blackbaud (BLKB) Q3 Earnings Top Estimates, Revenues Up Y/Y
Blackbaud BLKB reported third-quarter 2023 non-GAAP earnings of $1.12 per share, which surpassed the Zacks Consensus Estimate by 15.5%. The bottom line increased 62.3% year over year.
Total revenues jumped 6.2% year over year to $277.6 million driven by strength in recurring revenues. Revenues beat the Zacks Consensus Estimate by 0.2%.
Total recurring revenues (contributed 96.9% to the top line) in the reported quarter amounted to $269 million, up 7.9% year over year. One-time services and other revenues (3.1%) totaled $8.6 million, down 27.8% year over year. We estimated recurring revenues and one-time services and other revenues to be $264.5 million and $10.6 million, respectively.
Non-GAAP organic revenues grew 6.6% on a reported basis and 5.9% at constant currency, year over year. Non-GAAP organic recurring revenues rose 8.3% year over year.
Blackbaud, Inc. Price, Consensus and EPS Surprise
Blackbaud, Inc. price-consensus-eps-surprise-chart | Blackbaud, Inc. Quote
Margin Details
Non-GAAP gross margin was 62.4%, up 280 basis points (bps) from the prior-year levels.
Total operating expenses improved 9.2% on a year-over-year basis to $133.8 million. As a percentage of revenues, the figure contracted 820 bps to 48.2%.
Non-GAAP operating margin extended 960 bps from a year ago to 28.7%.
Non-GAAP adjusted EBITDA margin was 35%, up 940 bps year over year.
Balance Sheet & Cash Flow
As of Sep 30, Blackbaud had total cash, cash equivalents and restricted cash of $390.7 million compared with $790.3 million as of Jun 30, 2023.
Total debt (including the current portion) as of Sep 30, 2023, came in at $723.4 million compared with $846.6 million as of Jun 30, 2023.
For the third quarter, cash provided by operating activities was $128 million compared with $108 million in the prior-year period.
Non-GAAP adjusted free cash flow in the third quarter was $117.6 million compared with $93.8 million in the previous year.
2023 Guidance Reiterated
BLKB continues to expect non-GAAP revenues to be between $1.095 billion and $1.125 billion. The Zacks Consensus Estimate is pegged at $1.11 billion.
The company projects non-GAAP adjusted EBITDA margin in the range of 30.5-31.5%.
Non-GAAP earnings per share are anticipated to be between $3.63 and $3.94. The Zacks Consensus Estimate is pegged at $3.79 per share.
Non-GAAP adjusted free cash flow for the year is forecast in the $190-$210 million band.
Zacks Rank
Blackbaud currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks worth consideration in the broader technology space are Asure Software ASUR, Synopsys SNPS and VMware VMW. While Asure Software sports a Zacks Rank #1 (Strong Buy), Synopsys and VMware carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Asure Software’s 2023 earnings per share (EPS) has increased 5.9% in the past 60 days to 54 cents.
Asure Software’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 676.4%. Shares of ASUR have climbed 28.2% in the past year.
The Zacks Consensus Estimate for Synopsys’ fiscal 2023 EPS is unchanged in the past 60 days at $11.09. SNPS’ long-term earnings growth rate is 16.7%. Shares of SNPS have climbed 67% in the past year.
The Zacks Consensus Estimate for VMware’s fiscal 2024 EPS has improved 2.3% in the past 60 days to $7.23.
VMware’s earnings outpaced the Zacks Consensus Estimate in two of the last four quarters while missing twice. The average earnings surprise is 1.2%. Shares of VMW have jumped 30.1% in the past year.
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