Black Knight Reports Record Q2 Earnings for 2023
August 10, 2023
🌥️Earnings Overview
On August 3rd, 2023, BLACK KNIGHT ($NYSE:BKI) reported their earnings results for the second quarter of the fiscal year 2023. Total revenue was USD 368.2 million, representing a 6.7% decrease from the same period of the previous year. Net income, however, increased by 37.2% from the prior year quarter, amounting to USD 55.3 million.
Market Price
On Thursday, Black Knight Inc. reported record earnings for the second quarter of 2023. The company’s stock opened at $70.8 and closed at $70.6, up by 0.9% from its last closing price of 70.0. This marks an all-time high for Black Knight, a financial technology and data analytics company that specializes in the mortgage industry. The record earnings come as a result of strong performance in the mortgage servicing sector. This success is attributed to the company’s efforts at leveraging innovative technology to improve their services and to answer the increasingly complex needs of mortgage lenders.
In addition, Black Knight has also seen a surge in interest from potential investors as their stock continues to climb. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Black Knight. More…
| Total Revenues | Net Income | Net Margin |
| 1.52k | 244.7 | 17.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Black Knight. More…
| Operations | Investing | Financing |
| 206.4 | 110.4 | -338.9 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Black Knight. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.77k | 2.94k | 17.76 |
Key Ratios Snapshot
Some of the financial key ratios for Black Knight are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 8.7% | -0.6% | 29.1% |
| FCF Margin | ROE | ROA |
| 6.1% | 10.0% | 4.8% |
Analysis
GoodWhale undertook an analysis of BLACK KNIGHT‘s financials using the Star Chart tool, with the results demonstrating that BLACK KNIGHT has a high health score of 8/10 with regard to its cashflows and debt, indicating that it is capable to sustain future operations in times of crisis. Further, GoodWhale determined that BLACK KNIGHT is strong in liquidity, medium in growth, profitability and weak in assets and dividends. From this analysis, GoodWhale classified BLACK KNIGHT as a ‘rhino’, a type of company which has achieved moderate revenue or earnings growth. Given BLACK KNIGHT’s strong financial health and moderate earnings growth, investors who are seeking a stable company with sustained moderate returns may be interested in investing in this company. Such investors may include value investors looking to invest for the longer term, income investors looking for steady dividend payments and low-risk investors who are seeking stability and modest returns. More…
Peers
The company competes with Beijing Join-Cheer Software Co Ltd, Prism Software Corp, 4Global PLC, and other providers of similar solutions.
– Beijing Join-Cheer Software Co Ltd ($SZSE:002279)
As of 2022, Beijing Join-Cheer Software Co Ltd has a market cap of 5.43B. The company has a Return on Equity of -3.94%. The company provides software development and related services.
– Prism Software Corp ($OTCPK:PSWR)
Reed Elsevier plc is a multinational publishing and information company headquartered in London, England. It is one of the world’s major publishers of scientific, technical, and medical material, and a leading provider of information solutions and services for professional customers across a wide range of industries. The company employs more than 30,000 people, and operates in over 30 countries.
Reed Elsevier’s market capitalization is 17.39 million as of 2022. The company has a Return on Equity of -45.9%.
Reed Elsevier is a global leader in publishing and information services. The company provides scientific, technical, and medical information solutions to professionals in a wide range of industries worldwide. Reed Elsevier’s products and services include journals, books, online resources, and databases. The company also offers a variety of information-based services, such as training and events.
Summary
Investors have reacted positively to BLACK KNIGHT‘s second quarter earnings results for the fiscal year 2023. Total revenue for the quarter was USD 368.2 million, representing a 6.7% decrease from the prior year, while net income was USD 55.3 million, a 37.2% increase from the prior year. Overall, the results show that the company is growing despite the challenging environment. Investors should continue to monitor the company’s progress as they look to capitalize on any upside potential.
