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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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Blackbaud. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.