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Jun 30, 2024
Blackbaud Q2 2024 Earnings Report
Revenue growth more than doubled year over year with significantly improved profitability.
Key Takeaways
Blackbaud announced its Q2 2024 financial results, reporting a 6.0% increase in GAAP total revenue and a 6.7% increase in non-GAAP organic revenue. The company's profitability also improved significantly, with GAAP operating margin increasing by 1,460 basis points and non-GAAP adjusted EBITDA margin increasing by 290 basis points. Blackbaud's board of directors approved an expanded $800 million stock repurchase authorization.
GAAP total revenue was $287.3 million, up 6.0% year over year.
GAAP recurring revenue was $281.4 million, up 7.2% year over year, representing 98% of total revenue.
GAAP income from operations was $42.1 million, with a GAAP operating margin of 14.7%.
Non-GAAP adjusted EBITDA was $102.5 million, up $13.7 million, with a non-GAAP adjusted EBITDA margin of 35.7%.
Blackbaud
Blackbaud
Blackbaud Revenue by Segment
Revenue by Segment
GAAP Recurring Revenue
CapyFin.com Forward Guidance
Blackbaud reiterated its 2024 full year financial guidance:
Positive Outlook
- GAAP revenue of $1.164 billion to $1.194 billion
- Non-GAAP adjusted EBITDA margin of 32.5% to 33.5%
- Non-GAAP earnings per share of $4.12 to $4.38
- Non-GAAP adjusted free cash flow of $254 million to $274 million
- Non-GAAP annualized effective tax rate is expected to be approximately 24.5%
Challenges Ahead
- Interest expense for the year is expected to be approximately $52 million to $56 million
- Fully diluted shares for the year are expected to be approximately 51.0 million to 52.0 million
- Capital expenditures for the year are expected to be approximately $65 million to $75 million, including approximately $60 million to $70 million of capitalized software and content development costs
- Net cash outlays of $8 million to $13 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.