Blackbaud Inc. (NASDAQ:BLKB) is one of the best small-cap value stocks to buy. On April 30, Evercore ISI reiterated an In Line rating on Blackbaud Inc. (NASDAQ:BLKB) and lowered the price target to $45 from $55.
The price target cut comes on the heels of Blackbaud delivering solid first-quarter results. Revenue in the quarter was up 4.2% year over year to $281.1 million, beating Evercore ISI’s estimate of $279.9 million. The increase was driven by a 5% organic recurring revenue increase. Adjusted operating margins improved 120 basis points to 29.6% due to cost discipline and productivity initiatives.
Net income in the quarter totaled $52.6 million or $1.14 a share, up by $0.19 a share. The better-than-expected results underscore the strength of the financial model that’s driving growth, expanding margins, and expanding free cash flow.
Management expects growth momentum to continue throughout the year, with full-year revenue expected to range between $1.173 billion and $1.179 billion, and non-GAAP diluted earnings per share between $5.15 and $5.25. Free cash flow is also expected to range between $280 million and $290 million.
Blackbaud Inc. (NASDAQ:BLKB) is a leading cloud software company focused exclusively on providing technology for the social good community, including nonprofits, foundations, educational institutions, and healthcare organizations. They provide solutions for fundraising, constituent relationship management (CRM), financial management, and analytics to over 40,000 customers in 100+ countries.
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