NASDAQ$BLKB

Blackbaud Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Blackbaud's Q3 2023 results were announced, demonstrating accelerating revenue growth and margin expansion, leading to the achievement of the Rule of 40 target ahead of schedule.

Blackbaud reported strong Q3 2023 results, with revenue growth accelerating and margin expansion exceeding expectations. The company achieved the Rule of 40 target a quarter earlier than anticipated and is well-positioned for future growth and value creation.

  • GAAP total revenue was $277.6 million, up 6.2% year-over-year.
  • GAAP recurring revenue was $269.0 million, up 7.9% year-over-year, representing 97% of total revenue.
  • Non-GAAP income from operations was $79.6 million, with a non-GAAP operating margin of 28.7%.
  • Non-GAAP free cash flow was $110.6 million, an increase of $21.2 million year-over-year, with a non-GAAP free cash flow margin of 39.8%.

Headline financials

Total Revenue

$278M

Previous: $261M+6.2%
EPS (adj)

$1.12

Previous: $0.69+62.3%
Rule of 40 Score

41.6%

Previous: 30.0%+38.7%
Capital Expenditures

-$4.24M

Previous: -$10.5M+59.6%
Free Cash Flow

$4.77M

Previous: -$20.8M+122.9%
Net Income

$9.02M

Previous: -$10.3M+187.4%
Operating Income

$22M

Previous: -$7.01M+414.4%
Gross Profit

$156M

Previous: $140M+11.0%
Cash & Equivalents

$31.1M

Previous: $31.4M-1.0%
Total Assets

$2.6B

Previous: $2.63B-0.9%
R&D Expense

$38M

No prior period
Stock-Based Comp

$32.4M

Previous: $27.9M+15.9%

Revenue & EPS history

Blackbaud · Revenue · Quarterly

$278M

Q3 2023+6.2%vs Q3 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 reiterated its 2023 full year financial guidance:

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 approximately 53 million to 54 million
  • Capital expenditures for the year are expected to be 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
  • For full year 2024, we currently expect a significant decrease in net pre-tax expense related to the Security Incident for ongoing legal fees.

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 2023

Historical avgQ3 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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