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Jun 30, 2023
Blackbaud Q2 2023 Earnings Report
Announced solid second quarter results and showed continued strong progress on five-point operating plan.
Key Takeaways
Blackbaud reported a solid second quarter with progress on its five-point operating plan. The company saw revenue growth, driven by recurring revenue, and significant improvement in adjusted EBITDA. Blackbaud also reiterated its full year financial guidance.
GAAP total revenue was $271.0 million, up 2.3%, with GAAP recurring revenue of $262.4 million, up 3.9%.
Non-GAAP income from operations was $74.1 million, with non-GAAP operating margin of 27.4%, an increase of 680 basis points.
GAAP net income was $2.1 million, with GAAP diluted earnings per share of $0.04, up $0.11 per share.
Non-GAAP adjusted EBITDA was $88.8 million, up $18.2 million, with non-GAAP adjusted EBITDA margin of 32.8%, an increase of 620 basis points.
Blackbaud
Blackbaud
Forward Guidance
Blackbaud reiterated its 2023 full year financial guidance:
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
- Net cash outlays of $25 million to $35 million for ongoing legal fees related to the Security Incident.
- It is reasonably possible that our estimated or actual losses may change in the near term for those matters and be materially in excess of the amounts accrued, but we are unable at this time to reasonably estimate the possible additional loss.