Blackbaud, a company that helps other organizations with their fundraising and financial management, reported that it made more money than people expected in the second quarter of 2024. The company's main way of making money, recurring revenues, also grew more than expected. Blackbaud expects to make a similar amount of money for the whole year of 2024 as it did for 2023, despite investing more in security to protect its customers' data. The company's stock is doing well, and its leaders have approved a plan to buy back some of its own shares to boost the value of the remaining shares. Read from source...

- He compared the growth of BLKB's recurring revenues (7.2%) to the total revenues growth (6%).

Blackbaud (BLKB)
A possible investment recommendation for Blackbaud (BLKB) could be as follows:

Recommendation: Buy
Risk: Moderate

The investment rationale for this recommendation is based on the following points:

- Blackbaud reported strong Q2 2024 results, with non-GAAP EPS of $1.08, beating the Zacks Consensus Estimate by 3.9%. The company also reported total revenues of $287.3 million, up 6% year over year, and non-GAAP organic revenues of 6.6%, indicating solid growth in its core business.
- The company has a diversified product portfolio, serving the education, healthcare, human services, arts and other nonprofit sectors. This diversification helps the company to reduce customer concentration risk and mitigate the impact of economic and industry-specific cyclicality.
- Blackbaud has a strong balance sheet, with $831.1 million of cash, cash equivalents and restricted cash as of June 30, 2024, and no long-term debt. This provides the company with financial flexibility to pursue strategic opportunities, such as acquisitions, investments or share buybacks.
- Blackbaud has a robust dividend policy, with a current dividend yield of 3.0%. The company has increased its dividend for 11 consecutive years, demonstrating its commitment to return value to shareholders. The company also has a share repurchase program, which was expanded in July 2024 to buy back up to 10% of the common stock outstanding in 2024 to offset dilution from stock-based compensation.

The potential risks for this investment recommendation are:

- The company operates in a highly competitive and fragmented market, with many other software and service providers catering to the nonprofit sector. Some of its competitors include Microsoft (MSFT), Salesforce (CRM), Oracle (ORCL), and Constellation Software (CNS). These competitors may offer similar or superior products and services, or lower prices, which could erode Blackbaud's market share and profitability.
- The company faces regulatory and compliance risks, as it deals with sensitive and personal data of its customers and donors. The company has to invest in security and privacy measures to protect its systems and data from cyberattacks, breaches, or misuse. The company also has to comply with various laws and regulations, such as the General Data Protection Regulation (GDPR) in the European Union, which may