Blackbaud BLKB reported second-quarter 2024 non-GAAP earnings per share of $1.08, which surpassed the Zacks Consensus Estimate by 3.9%. The bottom line increased 10.2% year over year.
Total revenues jumped 6% year over year to $287.3 million, driven by growth in recurring revenues. Revenues missed the Zacks Consensus Estimate by 0.5%.
Total recurring revenues (contributed 98% to total revenues) in the reported quarter amounted to $281.4 million, up 7.2% year over year. One-time services and other revenues (2% of total revenues) totaled $5.9 million, down 31.7%.
Blackbaud, Inc. Price, Consensus and EPS Surprise
Blackbaud, Inc. price-consensus-eps-surprise-chart | Blackbaud, Inc. Quote
Non-GAAP organic revenues were up 6.7% on a reported basis and 6.6% on a constant-currency basis, year over year. Non-GAAP organic recurring revenues rose 7.2%.
Margin Details
Non-GAAP gross margin was 62.9% compared with 61.6% a year ago.
Total operating expenses declined 19.3% on a year-over-year basis to $120.5 million.
Non-GAAP operating margin jumped 260 basis points (bps) to 30%.
Non-GAAP adjusted EBITDA margin was 35.7%, up 290 bps year over year.
Balance Sheet & Cash Flow
As of Jun 30, 2024, Blackbaud had total cash, cash equivalents and restricted cash of $831.1 million compared with $382.9 million as of Mar 31, 2024.
Total debt (including the current portion) as of Jun 30, 2024, was $1021.9 million compared with $1039.8 million as of Mar 31, 2024.
For the second quarter, cash provided by operating activities was $53.8 million compared with $53.2 million in the prior-year quarter.
Non-GAAP adjusted free cash flow was $36.4 million compared with $43.6 million in the year-ago quarter.
Blackbaud repurchased approximately 3 million shares in the first half of 2024, representing 5.5% of the common stock outstanding at the end of 2023.
In July 2024, Blackbaud's board of directors approved a replenished and expanded $800 million stock repurchase authorization. BLKB expects to buy back up to 10% of the common stock outstanding in 2024 to offset dilution from annual stock-based compensation.
Outlook
Blackbaud reiterated its 2024 financial guidance, factoring in a significant, one-time expense to expedite crucial security initiatives. These initiatives, designed to provide long-term benefits for customers, include enhancing cybersecurity talent (both employees and third-party resources) and upgrading systems and tools to improve identity and privilege access management, as well as data loss prevention. The company anticipates that this accelerated cybersecurity investment will not recur in 2025 and beyond.
BLKB now expects non-GAAP revenues between $1.164 billion and $1.194 billion.
The company continues to project non-GAAP adjusted EBITDA margin in the range of 32.5-33.5%.
Non-GAAP EPS is anticipated to be between $4.12 and $4.38.
Non-GAAP adjusted free cash flow for 2024 is forecasted to be in the range of $254-$274 million.
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 $52 million to $56 million, changed from earlier guidance of $48 million to $52 million.
Fully diluted shares are now anticipated to be 51.0 million to 52.0 million compared with the earlier guided range of 52-53 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 and Stocks to Consider
Blackbaud currently carries a Zacks Rank #3 (Hold)
Some better-ranked stocks from the broader technology space are Badger Meter,Inc. BMI, SAP SE SAP and NVIDIA Corporation. BMI presently sports a Zacks Rank #1 (Strong Buy), whereas NVDA & SAP carry a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Badger Meter's 2024 EPS has increased 4.37% in the past 60 days to $4.06. BMI's long-term earnings growth rate is 17.9%. The company recently reported results for second-quarter 2024, wherein EPS of $1.12 topped the Zacks Consensus Estimate by 14.3%. Quarterly net sales were $216.7 million, up 23% from $175.9 million in the year-ago quarter and surpassed the consensus mark by 7.86%.
Badger Meter's earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, delivering an average surprise of 12.89%. BMI shares have risen 24.3% in the past year.
The Zacks Consensus Estimate for SAP's 2024 EPS has increased 4.2% in the past 60 days to $4.75. SAP's long-term earnings growth rate is 10.7%. The company recently reported results for second quarter of 2024 wherein non-IFRS earnings came in at €1.10 ($1.18) per share, climbing 59% from the year-ago quarter's levels. The Zacks Consensus Estimate was pegged at $1.01.
Total revenues on a non-IFRS basis of €8.288 billion ($8,921.3 million), rose 10% year over year both at nominal and constant currencies basis. The Zacks Consensus Estimate was pegged at $8,864.7 million.
SAP's earnings beat the Zacks Consensus Estimate in three of the last four quarters, delivering an average earnings surprise of 4.0%. Shares of SAP have gained 51.6% in the past year.
The Zacks Consensus Estimate for NVDA's 2024 EPS has increased 1.5% in the past 60 days to $2.69. NVDA's long-term earnings growth rate is 37.6%.
NVIDIA's earnings beat the Zacks Consensus Estimate in three of the last four quarters, delivering an average earnings surprise of 18.43%. Shares of NVDA have gained 123.0% in the past year.
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