Blackbaud (BLKB) AI Stock Analysis

• Market Cap: $3.15B
• Dividend Yield: N/A
• Average Volume (3M): 327.86K
• Price to Earnings (P/E): 78.5
• Beta (1Y): 0.70
• Revenue Growth: 0.11%
• EPS Growth: -817.49%
• Country: US
• Employees: 2,600
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 1.21
• Shares Outstanding: 48,509,033
• 10 Day Avg. Volume: 441,218
• 30 Day Avg. Volume: 327,859
• PEG Ratio: <0.01
• Price to Book (P/B): 26.32
• Price to Sales (P/S): 3.23
• P/FCF Ratio: 12.95
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 2.94
• Enterprise Value/Gross Profit: 5.18
• Enterprise Value/Ebitda: -25.66
• 1Y Price Target: $79.50
• Price Target Upside: 23.89% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 56 Neutral
• Price Target: $69.00 ▲(7.53% Upside)

Blackbaud's overall stock score is primarily influenced by its challenging financial performance and concerning valuation metrics. However, the positive sentiment from the earnings call, with increased guidance and strategic innovations, provides a counterbalance, suggesting potential for future improvement.

Positive Factors

Revenue Growth

The consistent revenue growth indicates effective market penetration and product adoption, supporting long-term business sustainability.

Innovative Product Developments

Innovations in AI enhance product offerings, potentially increasing competitive advantage and customer retention over time.

Customer Wins

Securing significant new clients strengthens market position and demonstrates the effectiveness of strategic sales efforts.

Negative Factors

High Leverage

High leverage poses a risk to financial stability, potentially limiting the company's ability to invest in growth opportunities.

Declining Profitability

Negative profitability metrics highlight operational challenges, which could hinder long-term financial health and growth potential.

Federal Grant Reductions Impact

Reductions in federal grants may affect customer spending, impacting Blackbaud's revenue from affected sectors.

Blackbaud Business Overview & Revenue Model

Company Description

Blackbaud, Inc. (BLKB) is a leading provider of software and services designed specifically for the nonprofit sector, higher education institutions, and charitable organizations. The company operates primarily in the cloud computing sector, offering solutions that include fundraising, donor management, financial management, and analytics. Blackbaud's core products empower organizations to manage their operations, engage with constituents, and maximize their impact through innovative technology.

How the Company Makes Money

Blackbaud generates revenue primarily through a subscription-based model, which includes recurring software licenses for its cloud solutions and services. Key revenue streams include software subscriptions, transaction fees from payment processing, and professional services such as consulting and training. The company also earns revenue from strategic partnerships with organizations that enhance its product offerings or extend its market reach. Additionally, Blackbaud benefits from a strong customer retention rate, which contributes to stable and predictable revenue growth.

Blackbaud Financial Statement Overview

Summary

Blackbaud's financial position is strained with persistent losses and high leverage, posing significant risks. While the company shows stable cash flows, the negative profitability and diminishing equity are major concerns that need to be addressed for long-term sustainability.

Income Statement

Blackbaud's income statement reveals a challenging financial scenario. The TTM data shows continued negative EBIT and net income, indicating ongoing operational challenges and a lack of profitability. While gross profit margin remains relatively stable, the significant decline in net profit margin due to sustained losses is concerning. Revenue growth has been modest but insufficient to offset the high operating costs and declining profit margins.

Balance Sheet

The balance sheet indicates a precarious financial position with high leverage. The debt-to-equity ratio is concerningly high, reflecting significant financial risk. Stockholders' equity has drastically declined, leading to a low equity ratio. The substantial liabilities compared to assets highlight potential liquidity risks. Despite these challenges, the company maintains a reasonable level of total assets, providing some stability.

Cash Flow

The cash flow statement provides a mixed view. Operating cash flow remains positive and relatively stable, demonstrating some resilience in cash generation ability. However, the free cash flow has declined, and the ratio of operating cash flow to net income is distorted by the negative net income. The cash flow from investing and financing activities shows consistent outflows, indicating ongoing investments but also potential cash constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.14B	1.16B	1.11B	1.06B	927.74M	913.22M
Gross Profit	647.17M	639.20M	600.11M	552.72M	484.55M	485.15M
EBITDA	-130.63M	-134.29M	167.05M	88.12M	103.78M	127.81M
Net Income	-279.38M	-283.17M	1.82M	-45.41M	5.70M	7.72M
Balance Sheet
Total Assets	2.63B	2.50B	2.91B	2.99B	2.97B	2.04B
Cash, Cash Equivalents and Short-Term Investments	47.26M	67.63M	31.25M	31.69M	55.15M	35.75M
Total Debt	28.09M	1.11B	819.75M	903.96M	1.01B	548.39M
Total Liabilities	2.54B	2.35B	2.10B	2.25B	2.25B	1.62B
Stockholders Equity	87.95M	141.99M	808.71M	744.03M	717.06M	426.15M
Cash Flow
Free Cash Flow	228.74M	288.52M	135.51M	132.83M	161.51M	76.11M
Operating Cash Flow	245.86M	295.97M	199.63M	203.89M	213.66M	147.96M
Investing Cash Flow	-74.02M	-73.41M	-64.39M	-85.55M	-471.27M	-71.85M
Financing Cash Flow	-96.91M	-139.35M	-142.97M	-25.69M	264.11M	-10.68M

Blackbaud Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 64.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BLKB, the sentiment is Negative. The current price of 64.17 is below the 20-day moving average (MA) of 67.30, below the 50-day MA of 65.74, and below the 200-day MA of 67.27, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 37.13 is Neutral, neither overbought nor oversold. The STOCH value of 2.42 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BLKB.

Blackbaud Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AGYS	73 Outperform	2.93B	211.35	4.95%	―	17.91%	-86.60%
GTM	73 Outperform	3.68B	44.17	5.75%	―	-0.54%	626.94%
BL	61 Neutral	3.27B	42.51	21.25%	―	7.99%	-28.47%
BLKB	56 Neutral	$3.15B	78.53	-85.12%	―	0.11%	-817.49%
ASAN	51 Neutral	3.28B	-15.54	-92.63%	―	9.74%	22.36%
RUM	45 Neutral	3.10B	-4.98	536.10%	―	32.45%	-125.99%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Blackbaud Corporate Events

Blackbaud Stockholders Approve Key Proposals at Annual Meeting

On June 11, 2025, Blackbaud held its annual meeting of stockholders, where several key proposals were voted on. Stockholders elected three Class C directors to the Board for terms expiring in 2028, approved executive compensation for 2024, amended the 2016 Equity and Incentive Compensation Plan, and ratified Ernst & Young LLP as the independent accounting firm for the fiscal year ending December 31, 2025.