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Blackbaud (BLKB)
NASDAQ:BLKB
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Blackbaud
(NASDAQ:BLKB)
54Neutral
Positive Factors
Competitive Position
No signs of new competitors entering the market, and customers find it challenging to consider alternatives to the platform.
Product Interest
Customer interest in recent and upcoming product releases is impressive.
Negative Factors
Growth Expectations
Growth expectations are biased lower for 2025, with the company expecting mid-single-digit growth against the Street's expectation of 7.3%.
Revenue Performance
Blackbaud reported Q3'24 revenue of $286.7M, approximately 2% below consensus of $293.7M.
Blackbaud (BLKB) vs. S&P 500 (SPY)
Market Cap
$2.96B
Dividend YieldN/A
Average Volume (3M)430.97K
Price to Earnings (P/E)78.5
Beta (1Y)0.77
Revenue Growth4.49%
EPS Growth-18773.97%
CountryUS
Employees2,600
SectorTechnology
Sector Strength51
IndustrySoftware - Application
Share Statistics
EPS (TTM)-5.90
Shares Outstanding49,236,496
10 Day Avg. Volume366,223
30 Day Avg. Volume430,972
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.69
Price to Cash Flow (P/CF)10.60
P/FCF Ratio10.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$80.75Price Target Upside32.10% Upside
Rating ConsensusHold
Number of Analyst Covering5
Blackbaud Business Overview & Revenue Model
Company DescriptionBlackbaud, Inc. is a leading provider of software and services specifically designed for the social good community, including nonprofits, foundations, corporations, education institutions, healthcare organizations, and individual change agents. The company offers a comprehensive suite of cloud-based and on-premise solutions, such as fundraising and relationship management, financial management, marketing and engagement, payment services, and analytics, tailored to meet the unique needs of its clients in the social sector.
How the Company Makes MoneyBlackbaud makes money primarily through the sale of its software solutions and related services. The company's revenue streams include subscription fees for its cloud-based software offerings, which are typically delivered on a Software-as-a-Service (SaaS) model, and one-time license fees for on-premise software. Additionally, Blackbaud generates revenue from professional services such as implementation, training, and consulting, as well as from payment processing services. The company also benefits from strategic partnerships and collaborations, which help expand its reach and enhance its product offerings. Blackbaud's diverse client base in the social good sector contributes to its steady revenue growth and sustainability.
Blackbaud Financial Statement Overview
Summary
Blackbaud exhibits challenges with profitability, as shown by a declining income statement with negative net income. However, the company maintains strong operational cash flow, supporting its financial activities and enhancing liquidity. The balance sheet reflects high leverage but a stable asset base, indicating both risks and potential resilience.Income Statement
The income statement shows declining profitability with a negative net income and EBIT in the most recent year, indicating operational challenges. Revenue has decreased significantly by 42.2% from the previous year, affecting gross profit margins negatively. However, historical revenue growth has been stable until 2023, suggesting potential for recovery.45
Neutral
Balance Sheet
The balance sheet reflects a relatively high debt-to-equity ratio, reducing financial flexibility. Stockholders' equity has decreased over recent years, but the equity ratio remains positive. The company has maintained a reasonable asset base despite high liabilities, indicating some stability.52
Neutral
Cash Flow
Cash flow from operations is strong, with significant free cash flow observed in the latest year. Free cash flow to net income ratio is favorable, suggesting effective cash management despite negative net income. Operating cash flow has consistently supported financial activities, enhancing liquidity.67
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.16B | 1.11B | 1.06B | 927.74M | 913.22M | Gross Profit |
| 639.20M | 600.11M | 552.72M | 484.55M | 485.15M | EBIT |
| -270.51M | 44.70M | -19.77M | 24.91M | 37.24M | EBITDA |
| -134.29M | 167.05M | 88.12M | 103.78M | 127.81M | Net Income Common Stockholders |
| -286.95M | 1.82M | -45.41M | 5.70M | 7.72M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 69.60M | 31.25M | 31.69M | 55.15M | 35.75M | Total Assets |
| 2.50B | 2.91B | 2.99B | 2.97B | 2.04B | Total Debt |
| 1.11B | 819.75M | 903.96M | 1.01B | 548.39M | Net Debt |
| 1.04B | 788.50M | 872.27M | 954.42M | 512.64M | Total Liabilities |
| 2.36B | 2.10B | 2.25B | 2.25B | 1.62B | Stockholders Equity |
| 141.99M | 808.71M | 744.03M | 717.06M | 426.15M |
| Cash Flow | Free Cash Flow | |||
| 288.52M | 135.51M | 132.83M | 161.51M | 76.11M | Operating Cash Flow |
| 295.97M | 199.63M | 203.89M | 213.66M | 147.96M | Investing Cash Flow |
| -73.41M | -64.39M | -85.55M | -471.27M | -71.85M | Financing Cash Flow |
| -139.35M | -142.97M | -25.69M | 264.11M | -10.68M |
Blackbaud Technical Analysis
Negative
61.13
Price Trends
67.46
Negative
73.07
Negative
76.91
Negative
Market Momentum
-1.97
Negative
41.68
Neutral
34.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BLKB, the sentiment is Negative. The current price of 61.13 is below the 20-day moving average (MA) of 62.45, below the 50-day MA of 67.46, and below the 200-day MA of 76.91, indicating a bearish trend. The MACD of -1.97 indicates Negative momentum. The RSI at 41.68 is Neutral, neither overbought nor oversold. The STOCH value of 34.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BLKB.
Blackbaud Risk Analysis
Blackbaud disclosed 29 risk factors in its most recent earnings report. Blackbaud reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Blackbaud Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $1.95B | 16.00 | 18.83% | ― | 8.74% | 150.66% | |
68 Neutral | $4.09B | ― | -1.66% | ― | 15.72% | 74.59% | |
66 Neutral | $2.85B | 20.48 | 45.56% | ― | 10.74% | 200.08% | |
63 Neutral | $3.79B | ― | -8.63% | ― | 20.79% | 32.50% | |
57 Neutral | $19.95B | 9.66 | -12.05% | 2.76% | 5.40% | -24.89% | |
54 Neutral | $2.96B | 78.53 | -60.37% | ― | 4.49% | -18773.97% | |
49 Neutral | $4.54B | ― | -7.98% | ― | 11.50% | 42.50% |
* Technology Sector Average
Performance Comparison
BLKB
Blackbaud
61.13
-18.00
-22.75%
QTWO
Q2 Holdings
74.73
24.36
48.36%
BL
BlackLine
45.59
-15.25
-25.07%
CXM
Sprinklr
7.26
-4.09
-36.04%
PYCR
Paycor HCM
22.49
5.06
29.03%
FRSH
Freshworks
12.53
-4.57
-26.73%
Blackbaud Earnings Call Summary
Earnings Call Date: Feb 18, 2025 | % Change Since: -23.47% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted several positive developments, including strong financial performance in 2024, successful divestiture of Everfi, and significant AI initiatives. However, the call also mentioned some challenges such as one-time costs impacting free cash flow and anticipated lower revenue growth in 2025 due to renewal pricing and sales focus transition. Despite these factors, the overall sentiment is balanced with a strong emphasis on future growth and innovation.Highlights
Strong Financial Performance in 2024
Blackbaud reported a revenue of $1,155,000,000 and an adjusted EBITDA margin of nearly 34% for 2024. Non-GAAP diluted earnings per share were $4.07, and the Rule of 40 score was approximately 39%. The company’s adjusted free cash flow was strong at approximately $245 million, or 21% of revenue, up from 19% in 2023.
Divestiture of Everfi
Blackbaud successfully closed the divestiture of Everfi, which was previously dilutive to the company's revenue growth and profitability in 2024. The divestiture is expected to improve future financial results.
AI Initiatives and Product Innovation
Blackbaud launched several AI initiatives, including the Blackbaud Copilot, which provides contextual responses and drives actions. The company is leveraging its Intelligence for Good program to integrate machine learning and AI capabilities to streamline workflows and enhance efficiency.
Stock Repurchase Program
In 2024, Blackbaud repurchased 10% of its common stock outstanding, rising to 11% when including net share settlement on employee stock compensation. The company plans to repurchase an additional 3% to 5% of outstanding shares in 2025.
Improvement in Key Financial Metrics Since 2020
Blackbaud's organic growth rate increased from 1.2% in 2020 to 5.2% in 2024. EBITDA margin improved from 26.5% to 33.7%, and adjusted free cash flow margin rose from 8.3% to 21.2% during the same period.
Lowlights
One-Time Costs and Impact on Free Cash Flow
The 2025 adjusted free cash flow guidance reflects a decline due to a $28 million one-time cash release payment related to the Everfi divestiture and an additional $11 million in interest expense due to the stock repurchase program.
Impact of Renewal Pricing and Transition in Sales Focus
The 2025 revenue growth is expected to be lower than 2024 due to the effects of lapping renewal pricing uplift and a transition in sales efforts from migrations to focus on net new logos and cross-sales.
Currency Impact on Financials
The company anticipates a $2 million to $3 million negative impact on revenue and adjusted EBITDA for 2025 due to currency fluctuations.
Company Guidance
In the fourth quarter and full-year 2024 earnings call, Blackbaud provided detailed financial guidance, emphasizing its strategic focus and operational progress. For 2024, the company reported revenue of $1.155 billion and an adjusted EBITDA margin of nearly 34%, achieving a non-GAAP diluted earnings per share of $4.07 and a Rule of 40 score of approximately 39%. The social sector revenues grew by 7%, with contractual recurring revenue up 8% and social transactional recurring revenue increasing by 6%. The gross dollar retention rate was about 92% excluding Everfi, and the adjusted free cash flow was approximately $245 million, which is 21% of revenue. Additionally, Blackbaud repurchased 10% of its outstanding common stock in 2024, with plans to buy back 3% to 5% in 2025. Looking forward to 2025, Blackbaud projects revenue between $1.115 billion and $1.125 billion, representing organic growth of 4.2% to 5.1% and expects EBITDA margins of 34.9% to 35.9%. The company plans to continue investing in innovation, with a focus on AI integration, and aims to achieve a Rule of 45 by 2030.Blackbaud Corporate Events
Executive/Board Changes
Blackbaud Amends CEO Compensation Agreement
Neutral
Mar 13, 2025
On March 10, 2025, Blackbaud, Inc. amended its employment agreement with CEO Michael P. Gianoni to align his compensation with other executives, shifting his annual bonus to an equity-based award. The amendment also modifies severance terms, introducing a new COBRA reimbursement benefit and changing the conditions for equity award vesting upon termination due to death or disability, impacting the company’s executive compensation structure and potentially its financial planning.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.