Blackbaud Sees FY23 EPS $3.63-$3.94 Vs $3.76 Est.; Revenue $1.095B-$1.125B Vs $1.11B Est.

Author: Happy Mohamed | August 01, 2023 04:34pm

Financial Outlook

Blackbaud today reiterated its 2023 full year financial guidance:

• Non-GAAP revenue of $1.095 billion to $1.125 billion
• Non-GAAP adjusted EBITDA margin of 30.5% to 31.5%
• Non-GAAP earnings per share of $3.63 to $3.94
• Non-GAAP adjusted free cash flow of $190 million to $210 million
• Included in its 2023 full year financial guidance are the following assumptions:
• Non-GAAP annualized effective tax rate is expected to be approximately 20%
• Interest expense for the year is expected to be approximately $37 million to $41 million
• Fully diluted shares for the year are expected to be in the range of approximately 53 million to 54 million
• Capital expenditures for the year are expected to be in the range of approximately $65 million to $75 million, including approximately $55 million to $65 million of capitalized software and content development costs

Blackbaud has not reconciled forward-looking full-year non-GAAP financial measures contained in this news release to their most directly comparable GAAP measures, as permitted by Item 10(e)(1)(i)(B) of Regulation S-K. Such reconciliations would require unreasonable efforts at this time to estimate and quantify with a reasonable degree of certainty various necessary GAAP components, including for example those related to compensation, acquisition transactions and integration, tax items or others that may arise during the year. These components and other factors could materially impact the amount of the future directly comparable GAAP measures, which may differ significantly from their non-GAAP counterparts.

In order to provide a meaningful basis for comparison, Blackbaud uses non-GAAP adjusted free cash flow in analyzing its operating performance. Non-GAAP adjusted free cash flow is defined as operating cash flow less capital expenditures, including costs required to be capitalized for software and content development, capital expenditures for property and equipment, plus cash outflows, net of insurance, related to the previously disclosed Security Incident discovered in May 2020 (the "Security Incident"). Total costs related to the Security Incident exceeded the limit of our insurance coverage during the first quarter of 2022. For full year 2023, Blackbaud currently expects net cash outlays of $25 million to $35 million for ongoing legal fees related to the Security Incident. In line with the company's policy, all associated costs due to third-party service providers and consultants, including legal fees, are expensed as incurred. Please refer to the section below titled "Non-GAAP Financial Measures" for more information on Blackbaud's use of non-GAAP financial measures.

Posted In: BLKB