BLKB - Embedded Expectations Analysis - 2021 04 13
Blackbaud, Inc. (BLKB:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) earnings, with a 24.7x Uniform P/E. Even at these levels, the market is pricing in bearish expectations for the firm, and management may have concerns about customer retention rates, church management and higher ed verticals, and their margin performanceSpecifically, management may lack confidence in their ability to meet their contractual recurring revenue target, mitigate declines in onetime service revenues, and expand gross margins through cloud migration. Furthermore, they may be exaggerating their capacity to conduct M&A transactions, and they be concerned about the growth potential of church management and higher ed verticals. Moreover, management may lack confidence in their ability to maintain customer retention and renewal levels and monetize the growth in the online giving. Additionally, they may have concerns about the sustainability of mobile online donations demand, their new pricing and financing offerings to customers, and their ability to integrate with the large enterprise systems at higher education institutions
Blackbaud is a cloud software company. The company is engaged in providing software solutions in cloud and hosted environments, providing payment and transaction services, providing software maintenance and support services, and providing services, including implementation, consulting, training, analytic and other services. The company's portfolio provides fundraising and relationship management, marketing and engagement, financial management, grant and award management, organizational and program management (such as education management, church management and ticketing), social responsibility, payment services and analytics.
In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:
- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.
- Corporate credit ratings remain years behind the fundamental underpinnings of company performance
- Stock analysts continue to make recommendations with deeply inherent biases
- Research firms have failed to break down the walls between credit, equity, and macroeconomic research
- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.