For the quarter ended March 2024, Blackbaud (BLKB) reported revenue of $279.25 million, up 6.7% over the same period last year. EPS came in at $0.93, compared to $0.72 in the year-ago quarter.The reported revenue represents a surprise of -1.05% over the Zacks Consensus Estimate of $282.22 million. With the consensus EPS estimate being $0.85, the EPS surprise was +9.41%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their ...

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%2E%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents Blackbaud, Inc.'s unaudited condensed consolidated financial statements for Q1 2024, detailing financial position, performance, and cash flows, including a **$5.2 million** net income Q1 2024 vs Q1 2023 Financial Highlights | Metric | Q1 2024 (in millions) | Q1 2023 (in millions) | | :--- | :--- | :--- | | **Total Revenue** | $279.3 | $261.8 | | **Gross Profit** | $153.0 | $138.6 | | **Income (Loss) from Operations** | $10.7 | $(9.9) | | **Net Income (Loss)** | $5.2 | $(14.7) | | **Diluted EPS** | $0.10 | $(0.28) | Balance Sheet Summary (as of March 31, 2024) | Account | Amount (in millions) | | :--- | :--- | | **Total Assets** | $2,549.1 | | **Total Liabilities** | $2,015.1 | | **Total Stockholders' Equity** | $534.1 | - In March 2024, the company divested its U.K.-based creative services business, EVERFI Limited, resulting in a recorded loss of **$1.6 million**[240](index=240&type=chunk) - The company repurchased **2,954,211 shares** for **$262.6 million** during the quarter, with **$259.7 million** remaining available under the stock repurchase program as of March 31, 2024[184](index=184&type=chunk)[308](index=308&type=chunk) - Subsequent to the quarter end, on April 30, 2024, the company refinanced its debt, entering into a new **$1.5 billion** credit facility, extending the maturity to 2029 and providing additional operational flexibility[376](index=376&type=chunk)[81](index=81&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion highlights a **6.7%** YoY revenue increase to **$279.3 million** in Q1 2024, driven by recurring revenue growth and improved operating income [Executive Summary](index=30&type=section&id=Executive%20Summary) This executive summary outlines Q1 2024 operational and financial results, highlighting innovation in AI, **$17.5 million** total revenue growth, and improved operating income - The company is accelerating innovation, focusing on generative AI and enhancing connectivity across its solution suite, with new AI capabilities released for Raiser's Edge NXT and JustGiving[181](index=181&type=chunk)[353](index=353&type=chunk)[7](index=7&type=chunk) - A modernized contract and pricing policy, initiated in 2022, is a key driver of revenue growth and is expected to impact approximately **half of total company revenue** in 2024[9](index=9&type=chunk)[355](index=355&type=chunk) Q1 2024 vs Q1 2023 Key Financial Metrics | Metric | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | $279.3M | $261.8M | +$17.5M | | **Recurring Revenue** | $271.5M | $252.7M | +$18.8M | | **Income from Operations** | $10.7M | $(9.9)M | +$20.7M | - Gross dollar retention for the twelve months ended March 31, 2024 was approximately **89%**, slightly lower than the full year 2023 rate, primarily due to EVERFI[14](index=14&type=chunk) [Results of Operations](index=37&type=section&id=Results%20of%20Operations) Q1 2024 saw total revenue increase **6.7%** to **$279.3 million**, driven by recurring revenue growth and improved operating income due to reduced expenses Revenue by Type (Q1 2024 vs Q1 2023) | Revenue Type | Q1 2024 ($M) | Q1 2023 ($M) | YoY Growth | | :--- | :--- | :--- | :--- | | **Recurring** | $271.5 | $252.7 | +7.4% | | *Contractual* | $190.9 | $177.6 | +7.5% | | *Transactional* | $80.7 | $75.1 | +7.4% | | **One-time services & other** | $7.7 | $9.0 | -14.1% | | **Total Revenue** | $279.3 | $261.8 | +6.7% | - Sales, marketing and customer success expense decreased by **$3.5 million (6.5%)** due to lower commission expense and severance costs[54](index=54&type=chunk) - Research and development expenses increased by **$2.2 million (5.4%)**, primarily due to higher compensation costs for security-related compliance resources[25](index=25&type=chunk) - General and administrative expense decreased by **$5.1 million (9.6%)**, mainly driven by a **$7.5 million** reduction in Security Incident-related expenses[26](index=26&type=chunk) Non-GAAP Operating Results (Q1 2024 vs Q1 2023) | Metric | Q1 2024 ($M) | Q1 2023 ($M) | | :--- | :--- | :--- | | **Non-GAAP Gross Profit** | $171.5 | $156.4 | | **Non-GAAP Income from Operations** | $72.4 | $56.6 | | **Non-GAAP Net Income** | $49.5 | $38.3 | | **Non-GAAP Diluted EPS** | $0.93 | $0.72 | [Liquidity and Capital Resources](index=52&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2024, the company reported **$26.4 million** in cash, **$1.04 billion** in debt, and **$64.6 million** in operating cash flow, with significant stock repurchases and a post-quarter debt refinancing Cash Flow Summary (Three Months Ended March 31) | Cash Flow Activity | 2024 ($M) | 2023 ($M) | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $64.6 | $21.8 | | **Net cash used in investing activities** | $(14.5) | $(15.3) | | **Net cash used in financing activities** | $(394.6) | $(353.2) | - The company initiated a **$200 million** Accelerated Share Repurchase (ASR) transaction in March 2024, receiving an initial delivery of **2.1 million shares**[76](index=76&type=chunk) - As of March 31, 2024, the company had total remaining principal debt payments of **$1.0 billion** and total contractual obligations of **$1.46 billion**[82](index=82&type=chunk)[105](index=105&type=chunk) - On April 30, 2024, the company refinanced its debt, replacing its 2020 credit facility with a new **$1.5 billion** facility (**$700 million** revolving, **$800 million** term loan) maturing in 2029[81](index=81&type=chunk)[393](index=393&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=59&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is primarily exposed to market risks from interest rates on variable debt and foreign currency exchange rates, which are partially hedged with derivative instruments - The primary market risk is from changing interest rates on variable rate debt (SOFR-based), which is managed using derivative instruments like interest rate swaps[112](index=112&type=chunk)[135](index=135&type=chunk) - The company has foreign currency exchange rate risk, primarily from the British Pound and Canadian Dollar, which is partially hedged with forward contracts[113](index=113&type=chunk)[109](index=109&type=chunk) - For the three months ended March 31, 2024, foreign currency fluctuations increased total revenue by **$0.9 million** and income from operations by **$0.3 million**[109](index=109&type=chunk) [Item 4. Controls and Procedures](index=59&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal controls over financial reporting - Based on an evaluation as of the end of the period, the CEO and CFO concluded that the company's disclosure controls and procedures are effective[114](index=114&type=chunk) - There were no changes in internal control over financial reporting during the first quarter of 2024 that materially affected, or are likely to materially affect, internal controls[96](index=96&type=chunk) [PART II. OTHER INFORMATION](index=62&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=62&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 9 for a detailed discussion of legal proceedings, primarily related to the 2020 Security Incident, including customer claims and governmental investigations - For a comprehensive discussion of legal proceedings, the report directs readers to Note 9 of the unaudited, condensed consolidated financial statements[138](index=138&type=chunk) [Item 1A. Risk Factors](index=62&type=section&id=Item%201A.%20Risk%20Factors) This section supplements risk factors, focusing on increased financial leverage, ongoing impacts of the 2020 Security Incident, and legal risks related to anti-takeover provisions - The company's leverage has significantly increased due to the EVERFI acquisition and borrowings for the March 2024 ASR Transaction, potentially impacting business and financial performance[140](index=140&type=chunk)[118](index=118&type=chunk) - The 2020 Security Incident continues to have adverse effects, including ongoing legal fees, settlements, and investigations, incurring **$10.3 million** in net pre-tax expenses for Q1 2024[144](index=144&type=chunk)[150](index=150&type=chunk) - The company has reached settlements with the SEC (March 2023) and a proposed consent order with the FTC (February 2024) regarding the Security Incident, requiring enhanced cybersecurity programs[123](index=123&type=chunk)[124](index=124&type=chunk) - Anti-takeover provisions, such as a classified Board of Directors and Delaware law, may delay or prevent a change of control, though the Stockholder Rights Agreement was terminated on March 18, 2024[130](index=130&type=chunk)[132](index=132&type=chunk)[153](index=153&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=69&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's Q1 2024 stock repurchase activities, totaling **2,954,211 shares**, with **$259.7 million** remaining available under the program Issuer Purchases of Equity Securities (Q1 2024) | Period | Total Shares Purchased (under plan) | Average Price Paid per Share | Approx. Value Remaining under Plan ($ millions) | | :--- | :--- | :--- | :--- | | Jan 2024 | 273,907 | $83.56 | $499.4 | | Feb 2024 | 124,901 | $72.51 | $490.9 | | Mar 2024 | 2,555,403 | $90.46 | $259.7 | | **Q1 Total** | **2,954,211** | **-** | **$259.7** | [Item 5. Other Information](index=70&type=section&id=Item%205.%20Other%20Information) This section details the significant debt refinancing on April 30, 2024, establishing a new **$1.5 billion** credit facility with extended maturity to 2029 and modified covenants - On April 30, 2024, the company refinanced its debt, entering into a new **$1.5 billion** credit agreement[469](index=469&type=chunk)[454](index=454&type=chunk) - The new facilities include a **$700 million** revolving credit facility and an **$800 million** term loan facility, with a new maturity date of April 30, 2029[454](index=454&type=chunk)

Blackbaud, Inc. (NASDAQ:BLKB) Q1 2024 Earnings Conference Call May 1, 2024 8:00 AM ET Company Participants Kevin Mooney – Executive Vice President-Strategy and Business Development Mike Gianoni – Chief Executive Officer Tony Boor – Executive Vice President and Chief Financial Officer Conference Call Participants Rob Oliver – Baird Brian Peterson – Raymond James Matt VanVliet – BTIG Parker Lane – Stifel Kirk Materne – Evercore ISI Operator Ladies and gentlemen, good morning, and welcome to the Blackbaud's ...

Blackbaud (BLKB) reported first-quarter 2024 non-GAAP earnings per share (EPS) of 93 cents, which surpassed the Zacks Consensus Estimate by 9.4%. The bottom line increased 29.2% year over year.Total revenues jumped 6.7% year over year to $279.3 million, driven by growth in recurring revenues. Successful execution of its five-point operating plan has been instrumental in driving revenue growth and increasing profitability. Revenues missed the Zacks Consensus Estimate by 1.1%.Total recurring revenues (contrib ...

Financial Performance & Outlook - Blackbaud reported Q1 2024 GAAP revenue of $27925 million, a 67% increase year-over-year[144] - The company's Q1 2024 non-GAAP organic revenue grew by 69%[144] - Blackbaud projects a 74% organic revenue growth rate for 2024, reaching $1179 million at the midpoint of guidance[90, 101] - The company anticipates a non-GAAP adjusted EBITDA margin of 330% for 2024[89] Strategic Initiatives - Blackbaud is executing a five-point operating plan aimed at driving high single-digit revenue growth and mid-30's EBITDA margin[34] - A modernized approach to renewal pricing, launched in March 2023, is expected to contribute significantly to revenue growth[90, 93] - The company intends to repurchase 7% to 10% of outstanding stock in 2024 under a $500 million authorization[45, 136, 140] Market Position & Revenue Streams - Blackbaud identifies as a clear market leader in providing software solutions for social impact, serving over 40000 customers[34, 46] - Transactional recurring revenue streams are broken down as Donation Processing (55%), Consumer Giving (20%), Tuition Processing (20%), and Event-Based Usage (5%)[15] - The company's recurring revenue represented 97% of total revenue in 2023[64]

Blackbaud (BLKB) came out with quarterly earnings of $0.93 per share, beating the Zacks Consensus Estimate of $0.85 per share. This compares to earnings of $0.72 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 9.41%. A quarter ago, it was expected that this software and services provider in the nonprofit sector would post earnings of $1.04 per share when it actually produced earnings of $1.14, delivering a surprise of 9.62%.Ov ...

(1) Non-GAAP revenue from divested businesses excludes revenue associated with divested businesses. The exclusion of the prior period revenue is to present the results of the divested business with the results of the combined company for the same period of time in both the prior and current periods. (2) Non-GAAP organic revenue and non-GAAP organic recurring revenue for the prior year periods presented herein may not agree to non-GAAP organic revenue and non-GAAP organic recurring revenue presented in the r ...

Company Shows Continued Strong Progress on Five-Point Operating Plan; Blackbaud Repurchases Approximately 5.5% of Outstanding Common Stock in the First Quarter CHARLESTON, S.C., April 30, 2024 /PRNewswire/ -- Blackbaud (NASDAQ: BLKB), the leading provider of software for powering social impact, today announced financial results for its first quarter ended March 31, 2024. "We continue to execute our strategic initiatives to drive long-term profitable growth," said Mike Gianoni, president, CEO and vice chairm ...

Software stocks’ quarterly performances are expected to have significantly benefited from an uptick in the demand for software-based services and products, owing to the increasing adoption of the hybrid work model.The growing proliferation of Software-as-a-Service or SaaS-based services, the rapid migration to cloud platforms, the solid adoption of video-conferencing software, and rising user penetration of online or digital payment solutions are likely to have been major tailwinds for software companies in ...

More than 1,700 Nonprofits Will Benefit from the Funds Raised CHARLESTON, S.C., April 23, 2024 /PRNewswire/ -- Blackbaud (NASDAQ: BLKB), the leading provider of software for powering social impact, is proud to announce a record-breaking year for London Marathon fundraising on its online giving platform JustGiving®, with more than £41 million ($50 million) raised so far—14% more than last year. On Sunday, April 21, more than 18,000 fundraisers on JustGiving took part in the occasion, which is known as the wo ...