Overview

* Blackbaud ( BLKB ) Q3 revenue of $281.1 mln beats analyst expectations

* Adjusted EPS of $1.10 for Q3 beats consensus

* GAAP revenue down 1.9% due to EVERFI divestiture, non-GAAP organic revenue up 5.2%

Outlook

* Blackbaud ( BLKB ) reiterates 2025 revenue guidance of $1.120 bln to $1.130 bln

* Company raises 2025 adjusted free cash flow guidance to $195 mln-$205 mln

* Blackbaud ( BLKB ) expects 2025 non-GAAP EPS of $4.30 to $4.50

Result Drivers

* AI INVESTMENTS - Blackbaud's ( BLKB ) significant investments in AI are empowering customers to improve efficiency and fundraising, as highlighted at the bbcon conference

* DIVESTITURE IMPACT - Revenue decline attributed to the divestiture of EVERFI, affecting GAAP results

* PRODUCTIVITY IMPROVEMENTS - Strong results reflect execution discipline and ongoing productivity improvements, per CFO Chad Anderson

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $281.10 $279.33

Revenue mln mln (5

Analysts

)

Q3 Beat $1.10 $1.07 (5

Adjusted Analysts

EPS )

Q3 $53.20

Adjusted mln

Net

Income

Q3 $99.70

Adjusted mln

EBITDA

Q3 $84 mln

Adjusted

Income

From

Operatio

ns

Q3 29.90%

Adjusted

Operatin

g Margin

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the software peer group is "buy."

* Wall Street's median 12-month price target for Blackbaud Inc ( BLKB ) is $79.00, about 18.8% above its October 28 closing price of $64.15

* The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)