You are the owner of this article.
top story

SC based Blackbaud posts 2nd quarter results, promises more gains to come

Blackbaud HQ (copy)

Blackbaud Inc. is based on Daniel Island, where it opened a new headquarters campus (above) in June 2018. File/Provided

 Daniel Island-based Blackbaud Inc, posted strong second-quarter results Tuesday and assured investors more growth is coming down the line.

The technology company, which sells software that helps nonprofit groups raise money, reported a net profit of $7.1 million for the April-June period, an 8 percent increase from a year earlier. The results surpassed Wall Street expectations. 

Revenue came in at nearly $226 million, up about 6 percent.

In the coming months, Blackbaud said it plans to roll out new software products, one for churches and another for clients in the higher education field.

In a call with investors Wednesday morning, company finance chief Tony Boor said stronger results should be coming as the firm reaps the benefits of investments in its sales division. Blackbaud has been adding to its sales force for months. 

We're starting a weekly newsletter about the business stories that are shaping Charleston and South Carolina. Get ahead with us - it's free.

Boor told analysts they should expect to see the positive impact of those efforts toward the end of this year and into early 2020.

Blackbaud also reaffirmed its guidance for the year, estimating it will bring in between $880 million and $910 million in revenue. The firm reported $848.6 million in 2018 sales.

The company's shares jumped in early trading Wednesday, climbing about 3 percent to about $92. The stock price was hovering above $100 last fall, but they tumbled when the company announced in early October it would miss its sales forecast for the year by as much as $36 million. The shares are up roughly 25 percent since the beginning of the year.

Rob Oliver of Baird Equity Research raised his price target for Blackbaud to $95 following the latest quarterly results, which he described as "solid" in a research note to investors.

The Associated Press contributed to this report. Reach Mary Katherine Wildeman at 843-937-5594. Follow her on Twitter @mkwildeman. 

Get up-to-the-minute news sent straight to your device.


Breaking News

Free Times Breaking News