Black Knight Stock Gains on Q3 Beat, Raised FY21 Outlook

November 9th, 2021

Awake Goy

Black Knight Inc. (BKI) reported third-quarter FY21 revenue growth of 21 percent year-on-year to $378 million, beating the consensus of $370.7 million. Organic revenue growth 10 percent.

Software Solutions’ revenue rose 23 percent Y/Y to $319.6 million, with organic revenue growth of 10 percent. Data and Analytics revenue rose 10 percent Y/Y to $58.4 million, with organic revenue growth of 7 percent.

Adjusted EBITDA margin contracted 60 basis points to 48.9 percent. Adjusted EPS of $0.60 beat the consensus of $0.57.

Black Knight held $78.1 million in cash and equivalents and generated $331.4 million in operating cash flow during the nine months ended September 30.

“The underlying fundamentals of our business remain very strong and based on the continued momentum of our transformation, we are updating our long-term revenue growth guidance to 7 percent to 9 percent, an increase from our prior view of 6 percent to 8 percent that was in place since our initial public offering 6 years ago,” said Chairman and CEO Anthony Jabbour.

Guidance: Black Knight raised FY21 revenue outlook from $1.447 billion—$1.463 billion to $1.466 billion—$1.472 billion, above the consensus of $1.46 billion.

Black Knight raised the adjusted EPS outlook from $2.23–$2.29 to $2.34–$2.36, above the consensus of $2.27.