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Dec 31, 2024
Blackbaud Q4 2024 Earnings Report
Blackbaud reported steady revenue growth but faced profitability challenges due to the EVERFI divestment and impairment charges.
Key Takeaways
Blackbaud's Q4 2024 revenue grew 2.4% year-over-year, with recurring revenue making up 98% of total revenue. However, net income declined due to the impact of the EVERFI divestment and impairment charges. The company maintained a strong operating margin, but profitability was slightly lower compared to last year.
Total revenue increased by 2.4% year-over-year.
Recurring revenue accounted for 98% of total revenue, growing by 3.1%.
Net income declined due to the EVERFI divestment and impairment charges.
The company repurchased 10% of outstanding shares in 2024.
Forward Guidance
Blackbaud expects continued revenue growth and plans to repurchase more shares while maintaining a strong operating margin.
Positive Outlook
- Expected revenue growth of 4.5% to 5.4% in 2025.
- Projected non-GAAP EPS of $4.16 to $4.35.
- Non-GAAP adjusted EBITDA margin expected to increase to 34.9% - 35.9%.
- Strong focus on cost efficiencies and profitability.
- Planned share buybacks of 3% to 5% in 2025.
Challenges Ahead
- EVERFI divestment impact still lingers on financials.
- Potential headwinds from macroeconomic conditions.
- Continued legal costs related to prior security incidents.
- Debt levels remain relatively high.
- Stock repurchases could limit flexibility for other investments.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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