NASDAQ$BLKB

Blackbaud Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Blackbaud's first quarter results for 2023 were announced, with full year financial guidance raised and the expectation for achieving Rule of 40 accelerated.

Blackbaud reported a strong start to 2023 with solid execution across teams and deep relationships with customers, leading to raised guidance across the board. Total revenue reached $261.8 million, representing organic growth of 2.3%. The company is accelerating its plan to achieve a Rule of 40 performance above 40% by the fourth quarter of 2023.

  • GAAP total revenue increased by 1.8% to $261.8 million, with recurring revenue up 3.3% to $252.7 million.
  • Non-GAAP income from operations was $56.6 million, resulting in a non-GAAP operating margin of 21.6%, an increase of 470 basis points.
  • Non-GAAP adjusted EBITDA increased by $14.1 million to $71.3 million, with a margin of 27.2%, up 500 basis points.
  • Non-GAAP adjusted free cash flow was $15.7 million, an increase of $7.3 million, with a margin of 6.0%.

Headline financials

Total Revenue

$262M

Previous: $257M+1.8%
EPS (adj)

$0.72

Previous: $0.57+26.3%
Non-GAAP Operating Margin

21.6%

Previous: 16.9%+27.8%
Non-GAAP Adjusted EBITDA Margin

27.2%

Previous: 22.2%+22.5%
Non-GAAP Adjusted Free Cash Flow Margin

6.0%

Previous: 3.3%+81.8%
Rule of 40 Score

29.5%

No prior period
Capital Expenditures

-$1.36M

Previous: -$4.27M+68.0%
Free Cash Flow

-$16.1M

Previous: -$14.7M-9.5%
Net Income

-$14.7M

Previous: -$10.4M-41.3%
Operating Income

-$9.95M

Previous: -$5.98M-66.4%
Gross Profit

$139M

Previous: $134M+3.6%
Cash & Equivalents

$24.1M

Previous: $33.8M-28.7%
Total Assets

$2.64B

Previous: $2.63B+0.4%
Stock-Based Comp

$29.9M

Previous: $27.9M+7.4%

Revenue & EPS history

Blackbaud · Revenue · Quarterly

$262M

Q1 2023+1.8%vs Q1 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Blackbaud · $265M total across 1 segment · Q4 2022

  • Recurring Revenue
    $265M

Forward guidance

Blackbaud revised its 2023 full year financial guidance with increased expectations for non-GAAP revenue, adjusted EBITDA margin, earnings per share, and adjusted free cash flow.

Tailwinds

  • Non-GAAP revenue of $1.095 billion to $1.125 billion
  • Non-GAAP adjusted EBITDA margin of 30.5% to 31.5%
  • Non-GAAP earnings per share of $3.63 to $3.94
  • Non-GAAP adjusted free cash flow of $190 million to $210 million
  • Non-GAAP annualized effective tax rate is expected to be approximately 20%

Headwinds

  • Interest expense for the year is expected to be approximately $37 million to $41 million
  • Fully diluted shares for the year are expected to be in the range of approximately 53 million to 54 million
  • Capital expenditures for the year are expected to be in the range of approximately $65 million to $75 million, including approximately $55 million to $65 million of capitalized software and content development costs
  • Net cash outlays of $25 million to $35 million for ongoing legal fees related to the Security Incident
  • It is reasonably possible that estimated or actual losses related to the Security Incident may change in the near term and be materially in excess of the amounts accrued

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.1%

Avg return

Earnings day

-0.3%

Avg return

5 days after

-0.2%

Avg return

30 days after

51%

35 / 68 earnings

Positive

+17.9%

Q2 2020

Best reaction

-14.3%

Q3 2013

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+4.1%+0.0%-18.2%
Q4 2025-1.2%+1.7%-7.4%
Q3 2025+6.0%-0.4%-12.1%
Q1 2025-5.5%-2.4%-2.9%
Q4 2024-11.2%-14.6%-20.0%
Q3 2024-13.7%-12.3%-4.0%
Q2 2024-0.8%-4.6%+4.3%
Q1 2024-3.6%-1.1%-2.4%
Q4 2023-14.2%-15.7%-10.1%
Q3 2023+8.5%+11.9%+15.1%
Q2 2023-1.6%-2.5%+0.9%
Q1 2023+3.8%+3.9%+9.7%
Q4 2022-5.0%-4.1%-9.7%
Q3 2022+1.4%+4.8%+10.1%
Q2 2022-6.3%-8.8%-15.8%
Q1 2022-3.7%-9.4%+10.9%
Q4 2021-6.4%-0.5%-3.8%
Q3 2021+16.0%+20.0%-0.7%
Q2 2021-1.0%+2.6%+0.4%
Q1 2021-1.6%-4.6%-1.9%
Q4 2020+9.3%+8.4%+2.4%
Q3 2020-12.0%-17.2%-4.9%
Q2 2020+17.9%+16.2%+19.5%
Q1 2020+4.2%+1.1%+12.9%
Q4 2019+4.2%+3.9%-21.8%
Q3 2019+1.7%-0.3%-2.7%
Q2 2019+4.9%+2.0%+4.2%
Q1 2019-8.5%-2.3%-4.5%
Q4 2018+1.9%+8.2%+8.8%
Q3 2018+3.1%+4.2%+4.4%
Q2 2018-12.2%-14.7%-7.7%
Q1 2018-5.0%-4.6%-7.6%
Q4 2017+10.1%+3.7%+22.6%
Q3 2017+5.8%+10.7%+12.7%
Q2 2017-3.0%-4.6%-8.4%
Q1 2017+0.5%-1.3%+2.9%
Q4 2016+10.8%+12.8%+17.3%
Q3 2016-5.1%-4.2%-1.4%
Q2 2016+0.2%+1.0%+0.8%
Q1 2016-4.3%
Q4 2015+3.4%
Q3 2015-2.2%
Q2 2015+3.3%
Q1 2015-1.2%
Q4 2014-3.9%
Q3 2014+1.5%
Q2 2014+4.9%
Q1 2014+7.9%
Q4 2013+3.6%
Q3 2013-14.3%
Q2 2013+3.5%
Q1 2013+2.8%
Q4 2012+6.2%
Q3 2012-7.7%
Q2 2012-8.7%
Q1 2012-1.2%
Q4 2011-2.6%
Q3 2011-3.0%
Q2 2011-2.7%
Q1 2010+10.4%
Q1 2011+2.3%
Q4 2010-1.1%
Q4 2008-1.1%
Q3 2010+1.4%
Q3 2009+1.4%
Q2 2009+1.4%
Q2 2010+1.4%
Q4 2009+1.4%

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