The 10-second takeaway
For the quarter ended June 30 (Q2), Blackbaud beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share expanded significantly. GAAP earnings per share grew.
Margins expanded across the board.
Blackbaud recorded revenue of $125.5 million. The four analysts polled by S&P Capital IQ expected sales of $122.2 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $110.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.33. The four earnings estimates compiled by S&P Capital IQ averaged $0.27 per share. Non-GAAP EPS of $0.33 for Q2 were 38% higher than the prior-year quarter's $0.24 per share. GAAP EPS were $0.15 for Q2 versus -$0.05 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 54.9%, 70 basis points better than the prior-year quarter. Operating margin was 11.5%, 650 basis points better than the prior-year quarter. Net margin was 5.3%, 740 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $130.6 million. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $501.2 million. The average EPS estimate is $1.17.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 91 members out of 105 rating the stock outperform, and 14 members rating it underperform. Among 41 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 39 give Blackbaud a green thumbs-up, and two 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 $33.00.
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