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Blackbaud dials back revenue and profit expectations as UK sales falter

Baird maintained a Neutral rating and $105 price target but will re-evaluate after the cloud company's analyst day Wednesday
New headquarters for Blackbaud Inc in South Carolina
The South Carolina company provides cloud software solutions to nonprofits and education institutions

Analysts at Baird maintained their Neutral rating on Blackbaud Inc (NASDAQ:BLKB) after the cloud software company lowered its full-year outlook late Monday.

Blackbaud said it now expects full-year adjusted revenue between $844 million and $854 million, compared with a previous guidance of adjusted revenue between $870 million and $890 million. 

The Charleston, South Carolina, company provides specially designed cloud software solutions to nonprofits, education institutions and health care organizations. Its products focus on fundraising, website management, CRM, analytics, financial management, ticketing, and education administration.

The company expects full-year adjusted earnings between $2.46 a share and $2.52 a share, from previous expectations between $2.75 a share and $2.88 a share. The company cited reductions in one-time service revenue and transaction-based revenue in the UK for the lower earnings adjustment. 

“With 1.6 million registered non-profits in the US, as well as an international opportunity, and a fragmented market that tends to run lean on staff, we see the non-profit space as an attractive vertical,” wrote Baird analysts Rob Oliver and Matt Lemenager.

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“We believe Blackbaud is well positioned to do what many legacy vendors have been unable to do leverage its dominant position on-prem to remain the offering of choice in a cloud/ hybrid cloud world,” they added.

The analysts maintained their $105 price target for now and said it would re-evaluate the rating and price target after an analyst day in Orlando on Wednesday, where investors should receive more color.

The stock plunged 18.5% to $73.35.

Contact Uttara Choudhury at [email protected]

Follow her on Twitter@UttaraProactive 

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