NASDAQ$BLKB

Blackbaud Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Achieved strong financial results driven by product innovation, sales productivity, and customer success programs.

Blackbaud announced strong Q3 2022 results, with GAAP total revenue up 13.0% and GAAP recurring revenue up 14.1%. The company anticipates meeting or exceeding its 2022 financial guidance and expects to carry that momentum into 2023.

  • GAAP total revenue was $261.3 million, up 13.0%, with $249.4 million in GAAP recurring revenue, up 14.1%.
  • Non-GAAP income from operations was $49.8 million, with non-GAAP operating margin of 19.1%.
  • GAAP net loss was $10.3 million, with GAAP diluted loss per share of $0.20.
  • Non-GAAP adjusted free cash flow was $93.8 million, an increase of $35.2 million, with non-GAAP adjusted free cash flow margin of 35.9%.

Headline financials

Total Revenue

$261M

Previous: $231M+13.0%
EPS (adj)

$0.69

Previous: $0.78-11.5%
Non-GAAP Adjusted EBITDA Margin

25.6%

Previous: 27.0%-5.2%
Rule of 40 Score

30.0%

No prior period
Capital Expenditures

-$10.5M

Previous: -$8.33M-26.2%
Free Cash Flow

-$20.8M

Previous: -$2.14M-871.6%
Net Income

-$10.3M

Previous: $6.19M-266.8%
Operating Income

-$7.01M

Previous: $11.8M-159.2%
Gross Profit

$140M

Previous: $124M+13.6%
Cash & Equivalents

$31.4M

Previous: $27.6M+13.9%
Total Assets

$2.63B

Previous: $1.65B+58.7%
Stock-Based Comp

$27.9M

Previous: $28.9M-3.4%

Revenue & EPS history

Blackbaud · Revenue · Quarterly

$261M

Q3 2022+13%vs Q3 2021
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 2022 full year financial guidance:

Tailwinds

  • Non-GAAP revenue of $1.05 billion to $1.07 billion
  • Non-GAAP adjusted EBITDA margin of 23.7% to 24.2%
  • Non-GAAP earnings per share of $2.43 to $2.63
  • Non-GAAP adjusted free cash flow of $140 million to $150 million
  • Non-GAAP annualized effective tax rate is expected to be 20%

Headwinds

  • Interest expense for the year is expected to be approximately $34 million to $37 million
  • Fully diluted shares for the year are expected to be in the range of 52 million to 53.5 million
  • Capital expenditures for the year are expected to be in the range of $60 million to $70 million, including approximately $50 million to $60 million of capitalized software and content development costs
  • Net cash outlays of $15 million to $25 million for ongoing legal fees related to the Security Incident.
  • There are some Security Incident-related matters for which we have not recorded a liability for a loss contingency as of September 30, 2022 because we are unable at this time to reasonably estimate the possible loss or range of 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 Q3 2022

Historical avgQ3 2022

-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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