The 10-second takeaway
For the quarter ended March 31 (Q1), Blackbaud beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. Non-GAAP earnings per share expanded significantly. GAAP earnings per share didn't change.
Margins shrank across the board.
Blackbaud logged revenue of $115.6 million. The four analysts polled by S&P Capital IQ looked for revenue of $114.3 million on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $94.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.26. The four earnings estimates compiled by S&P Capital IQ anticipated $0.19 per share. Non-GAAP EPS of $0.26 for Q1 were 53% higher than the prior-year quarter's $0.17 per share. GAAP EPS of $0.06 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 53.7%, 290 basis points worse than the prior-year quarter. Operating margin was 6.7%, 50 basis points worse than the prior-year quarter. Net margin was 2.3%, 60 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $122.7 million. On the bottom line, the average EPS estimate is $0.27.
Next year's average estimate for revenue is $500.4 million. The average EPS estimate is $1.21.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 94 members out of 108 rating the stock outperform, and 14 members rating it underperform. Among 40 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 37 give Blackbaud a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Blackbaud is outperform, with an average price target of $29.67.
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