Blackbaud ( (BLKB) ) has realeased its Q3 earnings. Here is a breakdown of the information Blackbaud presented to its investors.
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Blackbaud is a leading software provider dedicated to powering social impact, primarily serving the nonprofit and education sectors with innovative solutions for fundraising, financial management, and more. In its latest earnings report for the third quarter of 2024, Blackbaud highlighted a 3.3% increase in GAAP total revenue to $286.7 million compared to the same period last year, and a 4.3% rise in non-GAAP organic revenue. The company maintained a strong focus on innovation, unveiling significant advancements at its annual bbcon tech conference, aimed at enhancing customer experience and operational capabilities.
Key financial metrics from the third quarter show Blackbaud’s GAAP recurring revenue increased by 4.1%, making up 98% of total revenue, while non-GAAP net income stood at $51.1 million, with diluted earnings per share of $0.99. However, there was a decrease in non-GAAP adjusted EBITDA margin to 33.2%, alongside a reduction in non-GAAP free cash flow to $88.3 million. The company is actively addressing the underperformance of its EVERFI unit, with strategic adjustments and advisory support to align costs with revenues.
Despite these challenges, Blackbaud’s Social Sector, comprising 89% of its revenue, grew by 6.6%. The company is committed to its stock repurchase program, having bought back approximately 8% of its shares from year-end 2023, and plans to continue investing in product innovation. Blackbaud’s strategic partnership with Microsoft promises enhanced AI and analytics capabilities, further strengthening its position in the market.
Looking forward, Blackbaud’s management remains optimistic about the company’s long-term growth prospects. Revised financial guidance for 2024 projects GAAP revenue between $1.150 billion and $1.160 billion, with a non-GAAP adjusted EBITDA margin of 33.0% to 34.0%. The company plans to leverage its strong cash flow to benefit stakeholders and sustain its innovation-led growth trajectory.
