Blackbaud (BLKB) Tops Q4 EPS by 1c, Revenues Beat; Offers FY20 EPS/Revenue Mid-Point Guidance Above Consensus

Blackbaud (NASDAQ: BLKB) reported Q4 EPS of $0.51, $0.01 better than the analyst estimate of $0.50. Revenue for the quarter came in at $237.84 million versus the consensus estimate of $232.23 million.

Fourth Quarter 2019 Results Compared to Fourth Quarter 2018 Results:

• Total GAAP revenue was $237.8 million, up 7.5%, with $219.8 million in GAAP recurring revenue, representing 92.4% of total GAAP revenue. GAAP recurring revenue was up 9.9%.
• Total non-GAAP revenue was $238.1 million, up 7.3%, with $220.1 million in non-GAAP recurring revenue, representing 92.4% of total non-GAAP revenue. Non-GAAP recurring revenue was up 9.8%.
• Non-GAAP organic recurring revenue increased 6.7%.
• GAAP income from operations was $3.6 million, with GAAP operating margin of 1.5%, a decrease of 510 basis points.
• Non-GAAP income from operations was $35.5 million, with non-GAAP operating margin of 14.9%, a decrease of 420 basis points.
• GAAP net income was $1.3 million, with GAAP diluted earnings per share of $0.03, down $0.16.
• Non-GAAP net income was $24.5 million, with non-GAAP diluted earnings per share of $0.51, down $0.14.
• Non-GAAP free cash flow was $46.1 million, a decrease of $4.6 million.

"We had a strong finish to 2019 as we furthered our strategic initiatives and drove valuable outcomes for our over 45,000 customers. Looking ahead, we have a positive outlook as the market remains solid, and we continue to be uniquely positioned to digitally transform the markets we serve," said Mike Gianoni, Blackbaud\'s president and CEO. "We've made truly transformational changes across the company over the last several years as we built a scalable operating model, created a culture of innovation and better positioned ourselves to capture the large market opportunities in front of us. The structural changes are now largely behind us, and we\'re well positioned to further differentiate ourselves as the leading cloud software company powering social good and deliver increased value to our customers, employees and our shareholders."

"Our strong performance in the fourth-quarter allowed us to achieve our full year financial guidance and exceed the mid-point of our ranges for revenue and earnings per share. Over the course of 2019, we made strategic investments to further expand our go-to-market model, drive cloud innovation for our customers and ensure scalability in our business," said Tony Boor, Blackbaud's executive vice president and CFO. "We\'re optimistic about the year ahead as we continue the positive shift in revenue mix towards recurring revenue. From a profitability and cash flow perspective, we're underway in a multi-year effort to migrate our cloud infrastructure to leading public cloud service providers, and we expect to continue a heightened pace of investment in our go-to-market model and cloud innovation to better position the business for accelerated growth and long term success."

GUIDANCE:

Blackbaud sees FY2020 EPS of $2.20-$2.35, versus the consensus of $2.26. Blackbaud sees FY2020 revenue of $930-955 million, versus the consensus of $937.91 million.

For earnings history and earnings-related data on Blackbaud (BLKB) click here.

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