NASDAQ$BLKB

Blackbaud Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Revenue growth more than doubled year over year with significantly improved profitability.

Blackbaud announced its Q2 2024 financial results, reporting a 6.0% increase in GAAP total revenue and a 6.7% increase in non-GAAP organic revenue. The company's profitability also improved significantly, with GAAP operating margin increasing by 1,460 basis points and non-GAAP adjusted EBITDA margin increasing by 290 basis points. Blackbaud's board of directors approved an expanded $800 million stock repurchase authorization.

  • GAAP total revenue was $287.3 million, up 6.0% year over year.
  • GAAP recurring revenue was $281.4 million, up 7.2% year over year, representing 98% of total revenue.
  • GAAP income from operations was $42.1 million, with a GAAP operating margin of 14.7%.
  • Non-GAAP adjusted EBITDA was $102.5 million, up $13.7 million, with a non-GAAP adjusted EBITDA margin of 35.7%.

Headline financials

Total Revenue

$287M

Previous: $271M+6.0%
EPS

$0.42

Previous: $0.98-57.1%
Non-GAAP Operating Margin

30.0%

Previous: 27.4%+9.5%
GAAP Operating Margin

14.7%

No prior period
Non-GAAP Adjusted EBITDA

$103M

No prior period
Non-GAAP Adjusted EBITDA Margin

36.5%

Previous: 32.8%+11.3%
GAAP Operating Cash Flow

$53.8M

No prior period
GAAP Operating Cash Flow Margin

18.7%

No prior period
Non-GAAP Free Cash Flow Margin

11.4%

No prior period
Non-GAAP Adjusted Free Cash Flow

$36.4M

No prior period
Non-GAAP Adjusted Free Cash Flow Margin

12.7%

No prior period
Rule of 40 Score

42.8%

No prior period
Capital Expenditures

-$6.12M

Previous: -$2.78M-120.2%
Free Cash Flow

$15.7M

Previous: -$674K+2427.3%
Net Income

$21.8M

Previous: $2.11M+935.8%
Operating Income

$42.1M

Previous: $294K+14217.0%
Gross Profit

$163M

Previous: $150M+8.7%
Cash & Equivalents

$30.4M

Previous: $29M+4.8%
Total Assets

$3.04B

Previous: $3.09B-1.6%
R&D Expense

$39.1M

No prior period
Stock-Based Comp

$24.3M

Previous: $33.4M-27.2%

Revenue & EPS history

Blackbaud · Revenue · Quarterly

$287M

Q2 2024+6%vs Q2 2023
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 reiterated its 2024 full year financial guidance:

Tailwinds

  • GAAP revenue of $1.164 billion to $1.194 billion
  • Non-GAAP adjusted EBITDA margin of 32.5% to 33.5%
  • Non-GAAP earnings per share of $4.12 to $4.38
  • Non-GAAP adjusted free cash flow of $254 million to $274 million
  • Non-GAAP annualized effective tax rate is expected to be approximately 24.5%

Headwinds

  • Interest expense for the year is expected to be approximately $52 million to $56 million
  • Fully diluted shares for the year are expected to be approximately 51.0 million to 52.0 million
  • Capital expenditures for the year are expected to be approximately $65 million to $75 million, including approximately $60 million to $70 million of capitalized software and content development costs
  • Net cash outlays of $8 million to $13 million for ongoing legal fees related to the Security Incident
  • It is reasonably possible that our estimated or actual losses may change in the near term for those matters and be materially in excess of the amounts accrued, but we are unable at this time to reasonably estimate the possible additional loss.

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 Q2 2024

Historical avgQ2 2024

-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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