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.

Total Revenue

$302M

Previous year: $295M

+2.4%

EPS

$1.08

Previous year: $1.14

-5.3%

Gross Profit

$164M

Previous year: $158M

+3.8%

Cash and Equivalents

$67.6M

Previous year: $728M

-90.7%

Free Cash Flow

$56.5M

Previous year: -$3.79M

-1590.4%

Total Assets

$2.49B

Previous year: $2.91B

-14.4%

Blackbaud Revenue

Blackbaud EPS

Blackbaud Revenue by Segment

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.

Revenue & Expenses

Visualization of income flow from segment revenue to net income