Blackbaud (BLKB) AI Stock Analysis

• Market Cap: $3.24B
• Dividend Yield: N/A
• Average Volume (3M): 343.17K
• Price to Earnings (P/E): 78.5
• Beta (1Y): 0.72
• Revenue Growth: 0.11%
• EPS Growth: -817.49%
• Country: US
• Employees: 2,600
• Sector: Technology
• Sector Strength: 87
• Industry: Software - Application
• EPS (TTM): 1.21
• Shares Outstanding: 48,509,033
• 10 Day Avg. Volume: 261,530
• 30 Day Avg. Volume: 343,172
• 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: 1.04
• Enterprise Value/Revenue: 2.94
• Enterprise Value/Gross Profit: 5.18
• Enterprise Value/Ebitda: -25.66
• 1Y Price Target: $74.67
• Price Target Upside: 11.93% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 53 Neutral
• Price Target: $65.00 ▼(-2.56% Downside)

Blackbaud's overall stock score is driven by its challenging financial performance and valuation concerns, offset by positive earnings call insights. The company's strategic focus on innovation and AI, along with increased guidance, provides a more optimistic outlook despite current financial hurdles.

Positive Factors

Market Demand

Management is confident the business is not seeing any disruptions in the demand due to the macro or Federal budget scrutiny affecting its target end-markets.

Organic Revenue Performance

On an organic revenue basis, the business delivered a Rule-of-40 profile, which is its near-term target.

Negative Factors

Earnings Guidance

The 1Q25 outperformance did not flow through as the 2025 guidance was reaffirmed, which could be interpreted as a guide down and could weigh on sentiment.

Peer Comparison

Shares could underperform its other vertical software peers that grow faster or generate higher free cash flow margins.

Transactional Revenue Risk

There could be some risk with its transactional revenue stream, as a large portion is generated through donations, which could be impacted in a recessionary environment.

Blackbaud Business Overview & Revenue Model

Company Description

Blackbaud, Inc. provides cloud software solutions to higher education institutions, K–12 schools, healthcare organizations, faith communities, arts and cultural organizations, foundations, companies, and individual change agents in the United States and internationally. The company offers fundraising and relationship management solutions, such as Blackbaud Raiser's Edge NXT and Blackbaud CRM, Blackbaud eTapestry, Blackbaud TeamRaiser, JustGiving, and Blackbaud Guided Fundraising and Blackbaud Volunteer Network Fundraising; marketing and engagement solutions, including Blackbaud Luminate Online, Blackbaud Online Express, and Blackbaud School Website System; and financial management solutions comprising Blackbaud Financial Edge NXT, Blackbaud Tuition Management, and Blackbaud Financial Aid Management. It also provides grant and award management solutions, consisting of Blackbaud Grantmaking and Blackbaud Award Management; organizational and program management, such as Blackbaud Student Information System, Blackbaud Learning Management System, Blackbaud Enrollment Management System, Blackbaud Altru, and Blackbaud Church Management; social responsibility solutions, which includes YourCause GrantsConnect and YourCause CSRconnect; Blackbaud Merchant Services and Blackbaud Purchase Cards payment services; and Blackbaud's Intelligence for Good solutions, as well as donor acquisition, prospect research, data enrichment, and benchmarking and performance management solutions and services. It sells its solutions and related services through its direct sales force. Blackbaud, Inc. was founded in 1981 and is headquartered in Charleston, South Carolina.

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: Positive
• Last Price: 66.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BLKB, the sentiment is Positive. The current price of 66.71 is above the 20-day moving average (MA) of 64.38, above the 50-day MA of 64.69, and below the 200-day MA of 68.79, indicating a neutral trend. The MACD of 0.49 indicates Negative momentum. The RSI at 57.30 is Neutral, neither overbought nor oversold. The STOCH value of 84.11 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BLKB.

Blackbaud Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CXM	75 Outperform	$2.24B	21.06	17.50%	―	6.75%	97.06%
FRSH	68 Neutral	$3.93B	―	-5.23%	―	19.78%	47.51%
BL	66 Neutral	$3.36B	43.74	23.79%	―	7.99%	-28.47%
QTWO	65 Neutral	$4.92B	1,284.34	0.92%	―	13.34%	―
Sector *	61 Neutral	$35.43B	7.71	-10.08%	1.88%	8.71%	-9.18%
BLKB	53 Neutral	$3.24B	78.53	-85.12%	―	0.11%	-817.49%
PYCR	―				―

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.