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Mar 31, 2023
Blackbaud Q1 2023 Earnings Report
Blackbaud's first quarter results for 2023 were announced, with full year financial guidance raised and the expectation for achieving Rule of 40 accelerated.
Key Takeaways
Blackbaud reported a strong start to 2023 with solid execution across teams and deep relationships with customers, leading to raised guidance across the board. Total revenue reached $261.8 million, representing organic growth of 2.3%. The company is accelerating its plan to achieve a Rule of 40 performance above 40% by the fourth quarter of 2023.
GAAP total revenue increased by 1.8% to $261.8 million, with recurring revenue up 3.3% to $252.7 million.
Non-GAAP income from operations was $56.6 million, resulting in a non-GAAP operating margin of 21.6%, an increase of 470 basis points.
Non-GAAP adjusted EBITDA increased by $14.1 million to $71.3 million, with a margin of 27.2%, up 500 basis points.
Non-GAAP adjusted free cash flow was $15.7 million, an increase of $7.3 million, with a margin of 6.0%.
Forward Guidance
Blackbaud revised its 2023 full year financial guidance with increased expectations for non-GAAP revenue, adjusted EBITDA margin, earnings per share, and adjusted free cash flow.
Positive Outlook
- Non-GAAP revenue of $1.095 billion to $1.125 billion
- Non-GAAP adjusted EBITDA margin of 30.5% to 31.5%
- Non-GAAP earnings per share of $3.63 to $3.94
- Non-GAAP adjusted free cash flow of $190 million to $210 million
- Non-GAAP annualized effective tax rate is expected to be approximately 20%
Challenges Ahead
- Interest expense for the year is expected to be approximately $37 million to $41 million
- Fully diluted shares for the year are expected to be in the range of approximately 53 million to 54 million
- Capital expenditures for the year are expected to be in the range of approximately $65 million to $75 million, including approximately $55 million to $65 million of capitalized software and content development costs
Historical Earnings Impact
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Avg. Return Before/After Earnings
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