Blackbaud, Inc. (BLKB) Bundle
A Brief History of Blackbaud, Inc.
Blackbaud, Inc., a leader in cloud software for the social good sector, has seen significant developments and transformations through 2024, reflecting its strategic focus on innovation and customer satisfaction.
Company Overview
Founded in 1981, Blackbaud specializes in software solutions for nonprofits, foundations, and educational institutions. As of September 30, 2024, the company reported total assets of $2.6 billion and total liabilities of $2.1 billion.
Financial Performance
For the third quarter ended September 30, 2024, Blackbaud generated total revenue of $286.7 million, an increase from $277.6 million in the same period of 2023. The growth was largely driven by a 4.1% increase in recurring revenue, which amounted to $280.0 million.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue ($M) | 286.7 | 277.6 | 4.0 |
| Recurring Revenue ($M) | 280.0 | 269.0 | 4.1 |
| Net Income ($M) | 20.5 | 9.0 | 127.8 |
Stock Performance and Repurchase Program
As of September 30, 2024, Blackbaud's stock repurchase program had been expanded to authorize up to $800 million for share repurchases, reflecting the company's commitment to returning capital to shareholders. During the third quarter of 2024, Blackbaud repurchased 807,774 shares at an average price of $77.71, totaling approximately $62.8 million.
Debt and Financial Obligations
As of September 30, 2024, Blackbaud had total debt of $1.004 billion, with a weighted average effective interest rate of 4.75%. The company has a net leverage ratio of 2.42 to 1.00, which is below the maximum allowed ratio of 3.75 to 1.00 under its credit facilities.
| Debt Type | Amount ($M) | Effective Interest Rate (%) |
|---|---|---|
| Revolving Credit Loans | 151.0 | 7.00 |
| Term Loans | 795.0 | 4.28 |
| Real Estate Loans | 55.6 | 5.23 |
| Other Debt | 2.8 | 8.77 |
Operational Highlights
Blackbaud's gross dollar retention rate was approximately 90% for the twelve months ended September 30, 2024, indicating strong customer loyalty. The company continues to invest in cloud solutions, with increased spending on research and development by 3.7% in Q3 2024 compared to Q3 2023.
Future Outlook
Looking ahead, Blackbaud plans to maintain its focus on product innovation and enhancing customer experience, with expectations to repurchase up to 10% of its outstanding common stock in 2024. The company anticipates continued revenue growth driven by its cloud offerings and strategic pricing initiatives in the social sector.
A Who Owns Blackbaud, Inc. (BLKB)
Shareholder Composition
As of 2024, Blackbaud, Inc. (BLKB) has a diverse shareholder composition. The ownership structure consists of institutional investors, individual shareholders, and company insiders. The following table illustrates the major shareholders and their respective ownership percentages:
| Shareholder Type | Number of Shares | Ownership Percentage |
|---|---|---|
| Institutional Investors | 38,472,000 | 54.3% |
| Individual Shareholders | 15,576,000 | 22.0% |
| Company Insiders | 16,905,940 | 23.7% |
Major Institutional Investors
Several institutional investors hold significant stakes in Blackbaud, Inc. The following table provides details on the top institutional shareholders:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| The Vanguard Group, Inc. | 8,324,000 | 11.7% |
| BlackRock, Inc. | 6,987,000 | 9.9% |
| State Street Corporation | 5,432,000 | 7.7% |
| Fidelity Management & Research Company | 4,234,000 | 6.0% |
Insider Ownership
Insider ownership is a crucial factor in Blackbaud's governance. The following table details the insider ownership as of 2024:
| Insider Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Mike Gianoni | CEO | 2,500,000 | 3.5% |
| Kevin McGowan | CFO | 1,200,000 | 1.7% |
| Other Executives | Various | 1,000,000 | 1.4% |
Stock Performance
As of September 30, 2024, Blackbaud, Inc. reported a total of 70,955,940 outstanding shares. The company's stock performance reflects the broader market trends and investor sentiment:
| Metric | Value |
|---|---|
| Current Stock Price | $32.50 |
| Market Capitalization | $2.3 billion |
| 52-Week High | $40.00 |
| 52-Week Low | $28.00 |
Recent Developments
In 2024, Blackbaud approved a stock repurchase program with a total capacity of $800 million. As of September 30, 2024, the company repurchased 807,774 shares for $62.8 million, contributing to a total repurchase of 3,761,985 shares during the year.
Conclusion
Blackbaud, Inc. maintains a well-diversified ownership structure, with substantial institutional and insider holdings. The company's strategic initiatives, including share repurchases, indicate a commitment to enhancing shareholder value.
Blackbaud, Inc. (BLKB) Mission Statement
Overview of Mission Statement
Blackbaud, Inc. aims to provide software solutions that empower organizations to fulfill their missions and improve their operations. The company focuses on delivering innovative cloud solutions that meet the unique needs of nonprofits, foundations, and other social good organizations.
Financial Performance
As of the third quarter of 2024, Blackbaud's total revenue was $286.7 million, marking a year-over-year increase of 3.3%. For the nine months ended September 30, 2024, revenue reached $853.3 million, up from $810.4 million in the same period of 2023.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenue | $286.7 million | $277.6 million | $853.3 million | $810.4 million |
| Net Income | $20.5 million | $9.0 million | $47.6 million | ($3.6 million) |
| Gross Profit | $159.2 million | $155.9 million | $474.8 million | $444.1 million |
| Operating Income | $43.8 million | $22.0 million | $96.6 million | $12.4 million |
| Earnings Per Share (Diluted) | $0.40 | $0.17 | $0.91 | ($0.07) |
Recurring Revenue Insights
As of September 30, 2024, Blackbaud reported a recurring revenue increase of $11.0 million, or 4.1%, for Q3 2024 compared to Q3 2023. This growth was driven by increases in both contractual and transactional recurring revenue.
Gross Dollar Retention
For the twelve months ended September 30, 2024, Blackbaud's gross dollar retention was approximately 90%. When excluding the impact of EVERFI, the retention rate improved to around 92%.
Debt and Financial Obligations
As of September 30, 2024, Blackbaud's total debt was reported at $943 million. The net leverage ratio stood at 2.42 to 1.00, and the interest coverage ratio was 8.37 to 1.00.
Stock Repurchase Program
On July 16, 2024, Blackbaud's Board of Directors expanded the stock repurchase program from $500 million to $800 million. In Q3 2024, the company repurchased 807,774 shares for $62.8 million, totaling 3,761,985 shares repurchased for $325.4 million during the nine months ended September 30, 2024.
Investments in Innovation
Blackbaud continues to invest in innovation, particularly in cybersecurity and enhancements to its cloud infrastructure. Research and development expenses increased by $1.4 million, or 3.7%, in Q3 2024 compared to Q3 2023, reflecting the commitment to improving product offerings.
Cash Flow Analysis
During the nine months ended September 30, 2024, Blackbaud generated $222.4 million in cash from operations, compared to $203.0 million in the same period of 2023. The company reported a non-GAAP adjusted free cash flow of $187.4 million for the same period, showing an increase from $177.2 million in 2023.
Conclusion on Mission Alignment
Blackbaud's mission is closely aligned with its financial performance, showcasing growth in revenue, improvements in customer retention, and ongoing investments in technology that support nonprofit organizations and their missions.
How Blackbaud, Inc. (BLKB) Works
Overview of Operations
Blackbaud, Inc. specializes in cloud software solutions for the social good sector, including non-profits, foundations, and educational institutions. As of 2024, the company's focus remains on providing integrated analytics, payment services, and training solutions.
Financial Performance
For the third quarter of 2024, Blackbaud reported total revenue of $286.7 million, an increase of $9.1 million, or 3.3%, compared to the same period in 2023. Year-to-date revenue for the nine months ended September 30, 2024, reached $853.3 million, up $42.8 million, or 5.3% year-over-year.
| Metric | Q3 2024 | Q3 2023 | Change (%) | YTD 2024 | YTD 2023 | Change (%) |
|---|---|---|---|---|---|---|
| Total Revenue ($M) | 286.7 | 277.6 | 3.3% | 853.3 | 810.4 | 5.3% |
| GAAP Net Income ($M) | 20.5 | 9.0 | 128.9% | 47.6 | (3.6) | — |
| Recurring Revenue ($M) | 280.0 | 269.0 | 4.1% | 832.9 | 784.1 | 6.2% |
| Non-GAAP Free Cash Flow ($M) | 172.3 | 154.1 | 11.8% | 187.4 | 177.2 | 5.9% |
Revenue Breakdown
Blackbaud's revenue is primarily derived from two segments: the Social Sector and the Corporate Sector. As of September 30, 2024, approximately 88% of total revenue came from the Social Sector, which saw an increase of $15.7 million, or 6.6%, for the quarter compared to the previous year. In contrast, the Corporate Sector revenue accounted for about 12% and decreased by $6.6 million, or 17.3%, primarily due to the underperformance of EVERFI.
Recurring Revenue Growth
Recurring revenue, which includes both contractual and transactional components, increased by $11.0 million, or 4.1%, in Q3 2024 compared to Q3 2023. This growth was driven by:
- Contractual recurring revenue rose by $5.6 million, influenced by a three-year contract renewal initiative.
- Transactional recurring revenue increased by $5.4 million, attributed to pricing initiatives and higher transaction volumes.
| Recurring Revenue Component | Q3 2024 ($M) | Q3 2023 ($M) | Change ($M) |
|---|---|---|---|
| Contractual Recurring Revenue | — | — | 5.6 |
| Transactional Recurring Revenue | — | — | 5.4 |
| Total Recurring Revenue | 280.0 | 269.0 | 11.0 |
Operating Expenses
Operating expenses for the third quarter of 2024 were impacted by various factors:
- Sales, marketing, and customer success expenses decreased by $3.0 million, or 5.7%.
- Research and development expenses increased by $1.4 million, or 3.7%.
- General and administrative expenses saw a notable increase due to enhanced cybersecurity measures.
| Operating Expense Category | Q3 2024 ($M) | Q3 2023 ($M) | Change ($M) |
|---|---|---|---|
| Sales, Marketing, and Customer Success | — | — | (3.0) |
| Research and Development | — | — | 1.4 |
| General and Administrative | — | — | — |
Cash Flow and Liquidity
As of September 30, 2024, Blackbaud had cash and cash equivalents of $34.6 million. The company generated $222.4 million in cash from operations during the first nine months of 2024. The net increase in borrowings was $223.2 million, and a total of $325.4 million was returned to stockholders through share repurchases.
Debt and Credit Facilities
At the end of Q3 2024, Blackbaud's total debt under the 2024 Credit Facilities amounted to $943.0 million, with a net leverage ratio of 2.42 to 1.00. The available borrowing capacity was $547.6 million. The company continues to manage its debt strategically to support ongoing operations and growth initiatives.
| Debt Metric | Amount ($M) |
|---|---|
| Total Debt | 943.0 |
| Net Leverage Ratio | 2.42 |
| Available Borrowing Capacity | 547.6 |
Future Outlook
Blackbaud plans to continue its investment in cloud solutions and cybersecurity while focusing on innovation to drive revenue growth. The company aims to repurchase up to 10% of its outstanding common stock in 2024, reflecting its commitment to returning value to shareholders.
How Blackbaud, Inc. (BLKB) Makes Money
Revenue Streams
Blackbaud primarily generates revenue through several key streams:
- Cloud and hosted software solutions
- Payment and transaction services
- Impact-as-a-Service™ digital educational content
Financial Performance
In the third quarter of 2024, Blackbaud reported total revenue of $286.7 million, representing a year-over-year growth of 3.3%. For the nine months ended September 30, 2024, total revenue was $853.3 million, up from $810.4 million in the same period of 2023, marking a 5.3% increase.
Recurring Revenue
Recurring revenue plays a significant role in Blackbaud's financial health:
- Contractual recurring revenue increased by $5.6 million (4.1%) in Q3 2024 and $31.2 million (6.2%) year-to-date.
- Transactional recurring revenue rose by $5.4 million (5.0%) in Q3 2024 and $17.6 million (4.2%) year-to-date.
| Revenue Type | Q3 2024 Revenue (in millions) | Year-to-Date Revenue (in millions) | Year-over-Year Growth (%) |
|---|---|---|---|
| Contractual Recurring Revenue | $142.0 | $485.0 | 6.2% |
| Transactional Recurring Revenue | $113.0 | $384.0 | 4.2% |
| One-time Services and Other | $12.0 | $36.0 | -22.6% |
Operating Income
Income from operations for Q3 2024 was $43.8 million, compared to $22.0 million in Q3 2023. For the nine months ended September 30, 2024, income from operations was $96.6 million, compared to $12.4 million in the same period of 2023, showcasing substantial growth.
Cost Management
Operating expenses decreased significantly:
- Sales, marketing, and customer success expenses fell by 5.7% in Q3 2024, totaling $49.5 million.
- Research and development expenses increased by 3.7%, amounting to $39.4 million.
- General and administrative expenses decreased by 39.9%, totaling $25.6 million.
Cash Flow and Investments
During the first nine months of 2024, Blackbaud generated $222.4 million in cash from operations. The company returned $325.4 million to stockholders through share repurchases, reflecting a commitment to capital return while maintaining robust cash flow generation.
Market Position and Opportunities
Blackbaud's market opportunity remains strong, with U.S. charitable giving exceeding $500 billion in 2023. The company processed roughly $100 billion through its platforms globally, underscoring its significant role in the social sector.
Stock Performance and Buybacks
Blackbaud has been active in stock repurchases, planning to buy back up to 10% of its outstanding common stock in 2024. As of September 30, 2024, the remaining amount available for repurchase under the program was $737.2 million.
Conclusion on Financial Health
With a gross dollar retention rate of approximately 90%, Blackbaud continues to demonstrate customer loyalty and a solid foundation for future growth. The company’s focus on innovation and customer service is expected to drive further revenue increases.
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Article updated on 8 Nov 2024
Resources:
- Blackbaud, Inc. (BLKB) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Blackbaud, Inc. (BLKB)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Blackbaud, Inc. (BLKB)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.