Blackbaud, Inc. BLKB has officially announced the sale of its EVERFI Inc. business to an independent private investment firm. The transaction, finalized on Dec. 31, 2024, followed a thorough strategic review process and was closed for a nominal amount.

The company is collaborating closely with the buyer and EVERFI leadership to ensure a seamless handover. Management highlighted that EVERFI remains committed to supporting its customers with educational programs covering essential topics, such as financial literacy, wellness, compliance and workplace training.

Blackbaud reaffirmed its focus on its core offerings, including the YourCause portfolio and the Impact Edge solution. These tools, integral to Blackbaud's forward-looking strategy, empower purpose-driven organizations to enhance corporate giving, volunteering, engagement and impact reporting initiatives. The company remains committed to enabling businesses to drive meaningful corporate impact.

Blackbaud, Inc. Price and Consensus

Blackbaud, Inc. price-consensus-chart | Blackbaud, Inc. Quote

Blackbaud has been encountering slow growth due to challenges in its EVERFI business. Additionally, the weak performance of the corporate sector in the third quarter of 2024 raised significant concerns. The sector, which accounted for nearly 11% of total revenues in the quarter, fell 17.3% year over year, primarily due to the underperformance of EVERFI. EVERFI’s top line, which represents 7% of total company revenues, declined 26% year over year in the third quarter. Moreover, the company expects continued softness in the segment in the near term.

Owing to these adversities, Blackbaud has lowered its annual revenue forecast for 2024. It expects non-GAAP revenues between $1.150 billion and $1.160 billion, down from earlier guidance of $1.164 billion to $1.194 billion. It is also right-sizing the business to better align costs to revenues and has sought the services of Goldman Sachs to help in evaluating other options for EVERFI.

BLKB’s Zacks Rank & Stock Price Performance

Blackbaud currently carries a Zacks Rank #3 (Hold). Shares of the company have declined 11.7% over the past year against the industry’s growth of 17.9%.

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Stocks to Consider

Some better-ranked stocks from the broader technology space are Ubiquiti Inc. UI, InterDigital, Inc. IDCC and RADCOM Ltd. RDCM. UI and IDCC presently sport a Zacks Rank #1 (Strong Buy), whereas RDCM carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Ubiquiti’s fiscal 2025 EPS is pegged at $7.30. In the last reported quarter, Ubiquiti delivered an earnings surprise of 20.9%. Its shares have surged 164.1% in the past year.

The Zacks Consensus Estimate for InterDigital’s 2024 EPS is pegged at $15.19, unchanged in the past 30 days. IDCC earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 163.7%. The company’s long-term earnings growth rate is 15%. Its shares have jumped 65.4% in the past six months.

The Zacks Consensus Estimate for RADCOM’ 2024 EPS is pegged at 80 cents, unchanged in the past seven days. RDCM’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 25.36%. Its shares have surged 48.7% in the past year.

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