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Dec 31, 2023
Blackbaud Q4 2023 Earnings Report
Blackbaud's Q4 2023 financial results were announced, showcasing revenue growth and strong performance in key financial metrics.
Key Takeaways
Blackbaud's Q4 2023 results demonstrated significant progress with revenue up 7.4% to $295.0 million and adjusted EBITDA margin at 33.6%, achieving a Rule of 40 of 41.0%. The company met its full-year revenue guidance and exceeded expectations for adjusted EBITDA margin, non-GAAP EPS, and adjusted free cash flow.
GAAP total revenue increased by 7.4% to $295.0 million, with recurring revenue up 8.4% and comprising 97% of total revenue.
GAAP income from operations was $32.3 million, which included $4.8 million in security incident-related costs, resulting in an 11.0% operating margin.
Non-GAAP net income reached $62.2 million, with diluted earnings per share of $1.14, an increase of $0.46 per share.
The company's non-GAAP adjusted EBITDA was $99.3 million, up $31.3 million, with a margin of 33.6%.
Blackbaud
Blackbaud
Forward Guidance
Blackbaud anticipates approximately 7% revenue growth and a 33% adjusted EBITDA margin for the full year 2024, aiming to achieve Rule of 40. Adjusted free cash flow is projected to be $264 million, representing a 22.3% margin.
Positive Outlook
- Non-GAAP revenue is projected to be between $1.170 billion and $1.200 billion.
- Non-GAAP adjusted EBITDA margin is expected to range from 32.5% to 33.5%.
- Non-GAAP earnings per share are forecasted to be between $4.12 and $4.38.
- Non-GAAP adjusted free cash flow is anticipated to be between $254 million and $274 million.
- The company plans to offset dilution from stock-based compensation through share repurchases.
Challenges Ahead
- The non-GAAP annualized effective tax rate is expected to be approximately 24.5%.
- Interest expense for the year is projected to be approximately $34 million to $38 million.
- Capital expenditures for the year are expected to be approximately $65 million to $75 million, including $60 million to $70 million of capitalized software and content development costs.
- Net cash outlays of $8 million to $13 million are expected for ongoing legal fees related to the Security Incident.
- The company has not reconciled forward-looking full-year non-GAAP financial measures to their most directly comparable GAAP measures.