On July 30, 2024, Blackbaud Inc (BLKB, Financial) released its 8-K filing for the second quarter ended June 30, 2024. Founded in 1981, Blackbaud provides software solutions designed to serve the "social good" community, including nonprofits, foundations, corporations, educational institutions, healthcare institutions, and individual change agents. The company enables more than $100 billion in donations annually across a customer base in excess of 40,000 customers in over 100 countries.
Performance Overview
Blackbaud Inc (BLKB, Financial) reported GAAP total revenue of $287.3 million for Q2 2024, reflecting a 6.0% year-over-year increase. However, this figure fell short of the analyst estimate of $289.42 million. On the other hand, the company reported GAAP diluted earnings per share (EPS) of $0.42, significantly surpassing the analyst estimate of $0.22.
Key Financial Achievements
Blackbaud's GAAP recurring revenue was $281.4 million, up 7.2% and representing 98% of total revenue. Non-GAAP organic recurring revenue also increased by 7.2%. The company's GAAP income from operations was $42.1 million, with a GAAP operating margin of 14.7%, an increase of 1,460 basis points. Non-GAAP income from operations was $86.1 million, with a non-GAAP operating margin of 30.0%, an increase of 260 basis points.
Income Statement Highlights
GAAP net income for the quarter was $21.8 million, with GAAP diluted EPS of $0.42, up $0.38 per share. Non-GAAP net income was $55.7 million, with non-GAAP diluted EPS of $1.08, up $0.10 per share. Non-GAAP adjusted EBITDA was $102.5 million, up $13.7 million, with a non-GAAP adjusted EBITDA margin of 35.7%, an increase of 290 basis points.
Cash Flow and Balance Sheet
GAAP net cash provided by operating activities was $53.8 million, an increase of $0.6 million, with a GAAP operating cash flow margin of 18.7%, a decrease of 90 basis points. Non-GAAP free cash flow was $32.6 million, a decrease of $4.4 million, with a non-GAAP free cash flow margin of 11.4%, a decrease of 220 basis points. Non-GAAP adjusted free cash flow was $36.4 million, a decrease of $7.2 million, with a non-GAAP adjusted free cash flow margin of 12.7%, a decrease of 340 basis points.
Commentary and Analysis
We continue to execute on our strategic initiatives, and I am optimistic about the opportunities ahead in the near, mid and long-term," said Mike Gianoni, president, CEO and vice chairman of the board of directors, Blackbaud. "Blackbaud is a clear market leader with a path to penetrate even further into a rich market opportunity."
Blackbaud's performance in Q2 2024 highlights its ability to grow revenue and improve profitability. The company's strong cash flow enables it to invest in innovation and execute a stock repurchase program, which is expected to enhance shareholder value. However, the decrease in free cash flow margins indicates potential challenges in maintaining operational efficiency.
Recent Company Highlights
Blackbaud's board of directors reauthorized and expanded the company’s stock repurchase program, raising the total capacity to $800 million. Additionally, Blackbaud was named one of America’s Best Mid-Size Companies 2024 by TIME, ranking 195 out of 500 companies based on employee satisfaction, revenue growth, and sustainability transparency.
Financial Outlook
Blackbaud reiterated its 2024 full-year financial guidance, expecting 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, and non-GAAP adjusted free cash flow of $254 million to $274 million.
For more detailed information, visit Blackbaud's 8-K filing.
Explore the complete 8-K earnings release (here) from Blackbaud Inc for further details.
