Blackbaud, Inc. BLKB reported first-quarter 2025 non-GAAP earnings per share (EPS) of 96 cents, which surpassed the Zacks Consensus Estimate by 6.7%. The bottom line increased 3.2% year over year.
Total revenues decreased 3.1% year over year to $270.7 million. This was due to the divestiture of EVERFI. The top line surpassed the Zacks Consensus Estimate by 0.9%.
Blackbaud’s strong first-quarter results reflect solid execution of strategic goals, with organic revenue growth, improved profitability and stock buybacks.
GAAP recurring revenue declined 2.8% to $264.1 million, primarily due to the divestiture of EVERFI, accounting for 97.6% of total revenue.
Starting in 2025, Blackbaud combined “recurring” and “one-time services and other” into a single “revenue” line due to the immateriality of the latter. Prior periods have been updated for consistency. Similarly, the company merged cost-related lines into “cost of revenue” for comparability.
Non-GAAP organic revenues were up 5.8% on a reported basis and 5.9% on a constant-currency basis, year over year. Non-GAAP organic recurring revenues rose 5.8% on a reported basis and 6% on a constant-currency basis, year over year.
Shares of the company have lost 22.8% in the past year against the Zacks Computer - Software industry's growth of 6.2%. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
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BLKB’s Margin Details
Non-GAAP gross margin was 61.2% compared with 61.4% a year ago. Total operating expenses fell 4.9% on a year-over-year basis to $135.4 million.
GAAP operating margin increased 370 basis points (bps) to 7.5%.
Blackbaud, Inc. Price, Consensus and EPS Surprise
Blackbaud, Inc. Price, Consensus and EPS Surprise
Blackbaud, Inc. price-consensus-eps-surprise-chart | Blackbaud, Inc. Quote
Non-GAAP operating margin increased 270 bps to 28.6%. Non-GAAP adjusted EBITDA margin was 34.3%.
BLKB’s Balance Sheet & Cash Flow
As of March 31, 2025, Blackbaud had total cash, cash equivalents and restricted cash of $456.6 million compared with $809.5 million as of Dec. 31, 2024. Total debt (including the current portion) as of March 31, 2025, was $1.2 billion compared with $1.1 billion as of Dec. 31, 2024.
For the first quarter, cash provided by operating activities was $1.4 million compared with $64.6 million in the prior-year quarter. Non-GAAP adjusted free cash outflow was $12.3 million against the free cash flow generated of $51.3 million in the year-ago quarter.
As of March 31, 2025, Blackbaud had nearly $545 million available under its stock buyback program, which was expanded and renewed in July 2024.
In the first quarter of 2025, Blackbaud repurchased around 4% of its outstanding shares, aligning with its 2025 plan to buy back 3% to 5%.
BLKB Reaffirms 2025 Outlook
Blackbaud reiterated its guidance for full-year 2025. The company projects GAAP revenues between $1.115 billion and $1.125 billion. The Zacks Consensus Estimate is pegged at $1.12 billion.
The company projects non-GAAP adjusted EBITDA margin in the range of 34.9-35.9%. Non-GAAP EPS is anticipated to be between $4.16 and $4.35. The Zacks Consensus Estimate for EPS is pegged at $4.20.
Non-GAAP adjusted free cash flow for 2025 is forecasted to be in the range of $185-$195 million.
Non-GAAP annualized effective tax rate is anticipated to be approximately 24.5%. Interest expense is expected in the band of $65 million to $69 million.
Fully diluted shares are estimated to be 48.5 million to 49.5 million. Capital expenditures are expected to be in the range of $55 million to $65 million, which includes $50-$60 million of capitalized software and content development costs.
Recent Updates
Blackbaud played a key role in supporting customers who raised millions for disaster relief and wildfire recovery efforts in Los Angeles, working with both nonprofits and companies running employee matching gift programs. At the YourCause Corporate Social Impact Summit in Dallas, the company showcased its latest innovations, highlighting how artificial intelligence (AI) integration in YourCause is transforming corporate giving and impact reporting.
Blackbaud introduced Blackbaud Integrated Payments. This robust, cohesive solution extends the company’s existing payment processing infrastructure, formerly known as Blackbaud Merchant Services, into a more flexible, Payments-as-a-Service model.
Continuing its global rollout, the company introduced Optimized Donation Forms for Raiser's Edge NXT users in Canada. The Blackbaud Institute published its 2024 Trends in Giving report, showing charitable donations are approaching pandemic-era highs. Blackbaud also opened nominations for its 2025 Impact Awards to be presented at bbcon in October.
BLKB’s Zacks Rank
Blackbaud currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Performance of Other Computer Software Companies
Cadence Design Systems CDNS reported first-quarter 2025 non-GAAP earnings per share (EPS) of $1.57, which beat the Zacks Consensus Estimate by 5.4%. The bottom line increased 34.2% year over year, exceeding management’s guided range of $1.46-$1.52. Revenues of $1.242 billion topped the Zacks Consensus Estimate by 0.3% and increased 23% year over year. CDNS’s top line was driven by broad-based demand for its solutions amid robust design activity.
In the past year, shares of CDNS have jumped 7.7%.
SAP SE SAP reported first-quarter 2025 non-IFRS EPS of €1.44 ($1.51), which increased 79% from the year-ago quarter. The Zacks Consensus Estimate was pegged at $1.39. Driven by momentum in the cloud business, SAP reported total revenues on a non-IFRS basis of €9.01 billion ($9.48 billion), which increased 12.1% year over year (up 11% at constant currency or cc). The Zacks Consensus estimate was pegged at $9.78 billion.
In the past six months, shares of SAP have soared 25.5%.
Simulations Plus, Inc. SLP second-quarter fiscal 2025 adjusted earnings of 31 cents per share, which fell 3% year over year. However, the figure surpassed the Zacks Consensus Estimate of 25 cents per share. Quarterly revenues jumped 23% year over year to $22.4 million, driven by increasing momentum across its software and services business segments. The growing uptake of its flagship solutions, including GastroPlus, MonolixSuite and ADMET Predictor, fueled the top-line expansion.
In the past six months, shares of SLP have surged 25%.
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