Blackbaud (BLKB) AI Stock Analysis

• Market Cap: $3.10B
• Dividend Yield: N/A
• Average Volume (3M): 311.35K
• Price to Earnings (P/E): 78.5
• Beta (1Y): 0.70
• Revenue Growth: 2.07%
• EPS Growth: -1519.89%
• Country: US
• Employees: 2,600
• Sector: Technology
• Sector Strength: 77
• Industry: Software - Application
• EPS (TTM): 0.96
• Shares Outstanding: 48,517,704
• 10 Day Avg. Volume: 238,281
• 30 Day Avg. Volume: 311,348
• PEG Ratio: N/A
• Price to Book (P/B): 91.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.63
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $67.00
• Price Target Upside: 5.08% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

Blackbaud faces substantial financial challenges, notably in profitability and leverage. However, strategic initiatives and positive market momentum provide some optimism. The technical indicators show moderate positive momentum, but valuation remains unattractive due to negative profitability. Overall, improvements in financial health and strategic execution are necessary for a better outlook.

Positive Factors

Demand Stability

Management is confident the business is not seeing any disruptions in demand due to macro or Federal budget scrutiny affecting its target end-markets.

Financial Performance

On an organic revenue basis, the business delivered a Rule-of-40 profile, which is its near-term target.

Negative Factors

Earnings Guidance

The 1Q25 outperformance did not flow through as the 2025 guidance was reaffirmed, which could be interpreted as a guide down and could weigh on sentiment.

Revenue Streams

There could be some risk with its transactional revenue stream, as a significant portion of this revenue is generated through donations, which could be pulled back first in a recessionary backdrop.

Stock Performance

Shares could underperform its other vertical software peers that grow faster or generate higher free cash flow margins.

Blackbaud Business Overview & Revenue Model

Company Description

Blackbaud, Inc. provides cloud software solutions to higher education institutions, K–12 schools, healthcare organizations, faith communities, arts and cultural organizations, foundations, companies, and individual change agents in the United States and internationally. The company offers fundraising and relationship management solutions, such as Blackbaud Raiser's Edge NXT and Blackbaud CRM, Blackbaud eTapestry, Blackbaud TeamRaiser, JustGiving, and Blackbaud Guided Fundraising and Blackbaud Volunteer Network Fundraising; marketing and engagement solutions, including Blackbaud Luminate Online, Blackbaud Online Express, and Blackbaud School Website System; and financial management solutions comprising Blackbaud Financial Edge NXT, Blackbaud Tuition Management, and Blackbaud Financial Aid Management. It also provides grant and award management solutions, consisting of Blackbaud Grantmaking and Blackbaud Award Management; organizational and program management, such as Blackbaud Student Information System, Blackbaud Learning Management System, Blackbaud Enrollment Management System, Blackbaud Altru, and Blackbaud Church Management; social responsibility solutions, which includes YourCause GrantsConnect and YourCause CSRconnect; Blackbaud Merchant Services and Blackbaud Purchase Cards payment services; and Blackbaud's Intelligence for Good solutions, as well as donor acquisition, prospect research, data enrichment, and benchmarking and performance management solutions and services. It sells its solutions and related services through its direct sales force. Blackbaud, Inc. was founded in 1981 and is headquartered in Charleston, South Carolina.

How the Company Makes Money

Blackbaud makes money primarily through the sale of its software solutions and related services. The company's revenue streams include subscription fees for its cloud-based software offerings, which are typically delivered on a Software-as-a-Service (SaaS) model, and one-time license fees for on-premise software. Additionally, Blackbaud generates revenue from professional services such as implementation, training, and consulting, as well as from payment processing services. The company also benefits from strategic partnerships and collaborations, which help expand its reach and enhance its product offerings. Blackbaud's diverse client base in the social good sector contributes to its steady revenue growth and sustainability.

Blackbaud Financial Statement Overview

Summary

Blackbaud's financial performance is hindered by negative EBIT and net income, modest revenue growth, and a high leverage ratio. Despite stable gross profit margins, the financial health is at risk due to operational inefficiencies and declining equity, though stable cash flows provide some resilience.

Income Statement

Blackbaud's income statement reveals a challenging financial scenario. The TTM data shows continued negative EBIT and net income, indicating ongoing operational challenges and a lack of profitability. While gross profit margin remains relatively stable, the significant decline in net profit margin due to sustained losses is concerning. Revenue growth has been modest but insufficient to offset the high operating costs and declining profit margins.

Balance Sheet

The balance sheet indicates a precarious financial position with high leverage. The debt-to-equity ratio is concerningly high, reflecting significant financial risk. Stockholders' equity has drastically declined, leading to a low equity ratio. The substantial liabilities compared to assets highlight potential liquidity risks. Despite these challenges, the company maintains a reasonable level of total assets, providing some stability.

Cash Flow

The cash flow statement provides a mixed view. Operating cash flow remains positive and relatively stable, demonstrating some resilience in cash generation ability. However, the free cash flow has declined, and the ratio of operating cash flow to net income is distorted by the negative net income. The cash flow from investing and financing activities shows consistent outflows, indicating ongoing investments but also potential cash constraints.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.15B	1.16B	1.11B	1.06B	927.74M	913.22M
	Gross Profit
640.97M	639.20M	600.11M	552.72M	484.55M	485.15M
	EBIT
-256.70M	-270.51M	44.70M	-19.77M	24.91M	37.24M
	EBITDA
-180.75M	-115.16M	167.05M	88.12M	103.78M	127.81M
	Net Income Common Stockholders
-287.33M	-283.17M	1.82M	-45.41M	5.70M	7.72M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
25.01M	67.63M	31.25M	31.69M	55.15M	35.75M
	Total Assets
1.37B	2.50B	2.91B	2.99B	2.97B	2.04B
	Total Debt
467.17M	1.11B	819.75M	903.96M	1.01B	548.39M
	Net Debt
442.15M	1.04B	788.50M	872.27M	954.42M	512.64M
	Total Liabilities
1.02B	2.35B	2.10B	2.25B	2.25B	1.62B
	Stockholders Equity
344.32M	141.99M	808.71M	744.03M	717.06M	426.15M
Cash Flow		Free Cash Flow
195.06M	288.52M	135.51M	132.83M	161.51M	76.11M
	Operating Cash Flow
232.74M	295.97M	199.63M	203.89M	213.66M	147.96M
	Investing Cash Flow
-84.79M	-73.41M	-64.39M	-85.55M	-471.27M	-71.85M
	Financing Cash Flow
-74.75M	-139.35M	-142.97M	-25.69M	264.11M	-10.68M

Blackbaud Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 63.76
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BLKB, the sentiment is Negative. The current price of 63.76 is above the 20-day moving average (MA) of 63.13, above the 50-day MA of 62.77, and below the 200-day MA of 75.02, indicating a neutral trend. The MACD of 0.30 indicates Negative momentum. The RSI at 52.73 is Neutral, neither overbought nor oversold. The STOCH value of 58.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BLKB.

Blackbaud Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CXM	76 Outperform	$2.15B	18.22	18.83%	―	8.74%	150.66%
PYCR	74 Outperform	$4.09B	―	-1.66%	―	15.72%	74.59%
BL	71 Outperform	$3.42B	25.53	44.83%	―	8.93%	102.77%
FRSH	70 Neutral	$4.38B	―	-6.85%	―	20.46%	39.37%
Sector *	60 Neutral	$11.59B	10.34	-7.15%	2.94%	7.49%	-10.88%
QTWO	59 Neutral	$5.61B	―	-3.95%	―	13.12%	75.24%
BLKB	53 Neutral	$3.10B	78.53	-101.31%	―	2.07%	-1519.89%

Blackbaud Corporate Events

Blackbaud Announces Leadership Changes with New CFO

On April 30, 2025, Blackbaud announced leadership changes with Chad Anderson promoted to Executive Vice President and Chief Financial Officer, succeeding Anthony W. Boor, who transitioned to Executive Vice President of Corporate Development and Strategy. These changes aim to enhance Blackbaud’s financial operations and strategic development, with Anderson bringing extensive experience from his previous roles within the company and Boor focusing on long-term value and enterprise-wide strategies.

Spark’s Take on BLKB Stock

According to Spark, TipRanks’ AI Analyst, BLKB is a Neutral.

Blackbaud’s overall stock score reflects its solid cash flow and strategic initiatives, balanced by high leverage and valuation concerns. While technical indicators suggest caution, strong earnings guidance and innovation efforts provide a positive outlook.

To see Spark’s full report on BLKB stock, click here.

Blackbaud Amends CEO Compensation Agreement

On March 10, 2025, Blackbaud, Inc. amended its employment agreement with CEO Michael P. Gianoni to align his compensation with other executives, shifting his annual bonus to an equity-based award. The amendment also modifies severance terms, introducing a new COBRA reimbursement benefit and changing the conditions for equity award vesting upon termination due to death or disability, impacting the company’s executive compensation structure and potentially its financial planning.