Robinhood shares gain on Q2 beat, as user and crypto growth accelerate
In a challenging market environment, Blackbaud Inc. (NASDAQ:BLKB) stock has reached its 52-week low, trading at $63.06. The software company, specializing in tools for nonprofit organizations, has faced headwinds that reflect a broader trend in the tech sector, leading to a notable decline in its stock value. According to InvestingPro analysis, the company appears undervalued at current levels, with management actively buying back shares despite market pressures. Over the past year, Blackbaud’s shares have declined 10.79%, with a steeper YTD drop of 13.51%, underscoring the pressures that have led to this week’s low point. Investors are closely monitoring the company’s performance, seeking signs of a turnaround that could signal a rebound from the current lows. InvestingPro subscribers can access 8 additional exclusive insights and detailed analysis in the comprehensive Pro Research Report, helping inform investment decisions during this crucial period.
In other recent news, Blackbaud reported its fourth-quarter 2024 earnings, revealing an earnings per share (EPS) of $1.08, which surpassed the forecast of $1.06. However, the company faced a revenue shortfall, reporting $302.2 million against the anticipated $305.28 million. For the full year, Blackbaud achieved a revenue of $1.155 billion, marking a 5.2% organic growth, with an adjusted EBITDA margin of 33.7%. Looking ahead to 2025, Blackbaud projects revenue between $1.115 billion and $1.125 billion and plans to repurchase 3-5% of its shares, indicating confidence in its long-term strategy.
Evercore ISI initiated coverage on Blackbaud with an In Line rating and a price target of $80, following Blackbaud’s revenue and free cash flow guidance, which fell short of expectations. Meanwhile, Raymond (NSE:RYMD) James maintained an Outperform rating with a $95 target, emphasizing the acceleration in contractual recurring revenue. Blackbaud’s management has outlined strategic investments in AI and plans to transition its consulting force in India to full-time employees, indicating a focus on innovation and talent acquisition.
The company also completed the divestiture of EVERFI, which impacted its financial outlook for 2025. Blackbaud is aiming to achieve a "Rule of 45" profile by 2030, which combines revenue growth and profit margin targets. These developments reflect Blackbaud’s ongoing efforts to navigate its financial and strategic objectives amidst market challenges.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.