Blackbaud Inc (BLKB)

Pretax margin

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	17,644	-34,045	-64,026	-61,720	-55,575	-40,759	-20,159	-5,894	7,083	11,029	8,956	16,799	21,614	27,024	25,322	18,876	10,585	23,332	29,898	27,442
Revenue (ttm)	US$ in thousands	1,068,830	1,046,797	1,032,026	1,030,820	1,029,119	1,010,722	982,508	948,272	912,853	909,423	896,896	904,135	913,219	908,452	914,571	908,214	900,423	883,802	872,214	860,252
Pretax margin		1.65%	-3.25%	-6.20%	-5.99%	-5.40%	-4.03%	-2.05%	-0.62%	0.78%	1.21%	1.00%	1.86%	2.37%	2.97%	2.77%	2.08%	1.18%	2.64%	3.43%	3.19%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $17,644K ÷ $1,068,830K
= 1.65%

Blackbaud Inc's pretax margin has shown fluctuations over the past eight quarters. In Q4 2023, the pretax margin improved to 1.60%, a positive sign compared to the negative margins in the preceding quarters. The company experienced a significant dip in pretax margin in Q2 and Q1 2023, reaching -5.99% and -5.81% respectively. These negative margins indicate that the company's earnings before taxes were not adequate to cover its expenses during those periods. It's worth noting that the Q4 2022 pretax margin was also negative at -5.25%, suggesting a persistent challenge in profitability during that period. Overall, the recent improvement in pretax margin in Q4 2023 is a positive development, but it would be essential for Blackbaud Inc to sustain and potentially increase this margin in the future to ensure financial health and stability.