Avid Technology Announces Q4 and FY 2021 Results
Avid reported Q4 2021 revenue of $119.1 million, a 14.2% increase year-over-year, fueled by subscription growth. Subscription revenue hit $34.1 million, up 38.8%, and total FY 2021 revenue reached $409.9 million, reflecting a 13.7% growth. Q4 net income per share rose to $0.33, marking a 106.3% increase. Non-GAAP EPS for Q4 was $0.46, a 39.4% rise. Strong cash flow included $27.1 million from operations. Avid aims for 2022 revenues between $430-$450 million and non-GAAP EPS between $1.40-$1.51, showing optimism despite inherent uncertainties.
- Q4 revenue increased to $119.1 million, up 14.2% year-over-year.
- Subscription revenue reached $34.1 million, an increase of 38.8% year-over-year.
- Net income per common share rose to $0.33, representing a growth of 106.3% year-over-year.
- 2021 total revenue increased to $409.9 million, a 13.7% year-over-year growth.
- Gross margin improved to 65.8%, an increase of 310 basis points year-over-year.
- Free Cash Flow for Q4 was $25.0 million, up $11.0 million from the prior quarter.
- Operating expenses increased 12.2% year-over-year to $61.2 million.
- Free Cash Flow decreased $5.6 million compared to the prior year period.
BURLINGTON, Mass., March 01, 2022 (GLOBE NEWSWIRE) -- Avid® (NASDAQ: AVID), a leading technology provider that powers the media and entertainment industry, today announced its financial results for the fourth quarter and full year ended December 31, 2021.
Total revenue increased
The revenue growth, combined with an increased mix of higher-gross margin software subscription revenue and improving integrated solutions gross margin, resulted in fourth quarter Non-GAAP Earnings per Share of
For the full year 2021, Avid’s total revenue increased
Fourth Quarter 2021 Financial and Business Highlights
- Subscription revenue was
$34.1 million , an increase of38.8% year-over-year. - Paid Cloud-enabled software subscriptions increased by
28.3% year-over-year to approximately 410,600 at December 31, 2021 and increased by approximately 21,700 during the fourth quarter. - Subscription and Maintenance revenue was
$65.5 million , up17.9% year-over-year. - Total revenue was
$119.1 million , an increase of14.2% year-over-year. - Gross margin was
65.8% , an increase of 310 basis points year-over-year. Non-GAAP Gross Margin was66.2% , an increase of 310 basis points year-over-year. - Operating expenses were
$61.2 million , an increase of12.2% year-over-year. Non-GAAP Operating Expenses were$55.8 million , an increase of20.4% year-over-year. - Net income was
$15.2 million , an increase of114.7% year-over-year. Non-GAAP Net Income was$20.9 million , an increase of37.0% year-over-year. - Adjusted EBITDA was
$25.0 million , an increase of15.3% year-over-year. Adjusted EBITDA Margin was21.0% , an increase of 30 basis points year-over-year. - Net income per common share was
$0.33 , an increase of106.3% year-over-year. Non-GAAP Earnings per Share was$0.46 , an increase of39.4% year-over-year. - Net cash provided by operating activities was
$27.1 million in the quarter, an increase of$10.6 million compared to the prior quarter, but a decrease of ($3.6) million compared to the prior year period. - Free Cash Flow was
$25.0 million in the quarter, an increase of$11.0 million compared to the prior quarter, but a decrease of ($5.6) million compared to the prior year period. - Repurchased 461,910 shares for
$13.9 million during the fourth quarter, under the$115 million share repurchase authorization announced on September 9, 2021.
FY 2021 Financial and Business Highlights
- Subscription revenue was
$108.4 million , an increase of48.9% year-over-year. - Subscription and Maintenance revenue was
$230.9 million , an increase of17.2% year-over-year. - Total revenue was
$409.9 million , an increase of13.7% year-over-year. - LTM Recurring Revenue represented
78.0% of the Company’s revenue for the year ended December 31, 2021, an increase of 380 basis points year-over-year. - Gross margin was
64.8% , an increase of 150 basis points year-over-year. Non-GAAP Gross Margin was65.3% , an increase of 160 basis points year-over-year. - Operating expenses were
$219.5 million , an increase of11.6% year-over-year. Non-GAAP Operating Expenses were$200.4 million , an increase of11.6% year-over-year. - Net income was
$41.4 million , an increase of274.1% year-over-year. Non-GAAP Net Income was$57.9 million , an increase of98.8% year-over-year. - Adjusted EBITDA was
$75.5 million , an increase of28.7% year-over-year. Adjusted EBITDA Margin was18.4% , an increase of 210 basis points year-over-year. - Net income per common share was
$0.89 , an increase of256.0% year-over-year. Non-GAAP Earnings per Share was$1.25 , an increase of92.3% year-over-year. - Net cash provided by operating activities was
$62.5 million in 2021, an increase of58.0% year-over-year. - Free Cash Flow was
$55.7 million in 2021, an increase of64.4% year-over-year. - Annual Contract Value was
$352.1 million at December 31, 2021, an increase of17.1% year-over-year. - Repurchased 874,085 shares for
$25.1 million during 2021, under the$115 million share repurchase authorization announced on September 9, 2021.
Jeff Rosica, Avid’s CEO and President, stated, “We ended 2021 with strong fourth quarter performance and good momentum heading into 2022. During the fourth quarter, we continued to exceed our expectations for adoption of subscription solutions by our enterprise customers, and we continued to see solid growth in subscriptions for our creative tools. This strength in our subscription business, combined with growing storage and audio integrated solutions revenue and stable maintenance revenue, allowed us to deliver continued improvement in profitability and strong Free Cash Flow.” Mr. Rosica added, “As we begin 2022, we continue to see strength across the end markets for our solutions, and we will continue to make selective investments in new products and innovation to enable Avid to continue delivering the industry-leading solutions that our customers depend on and to achieve our company strategy and our long-term growth and profitability targets.”
Ken Gayron, Executive Vice President and Chief Financial Officer of Avid, said, “We continued to make substantial progress in driving our higher gross margin subscription and maintenance revenue during the fourth quarter, which together accounted for
First Quarter and Full Year 2022 Guidance
For the first quarter of 2022, Avid is providing guidance for Revenue, Subscription & Maintenance Revenue, Non-GAAP Earnings per Share, and Adjusted EBITDA. For the full year 2022, Avid is providing guidance for Revenue, Subscription & Maintenance Revenue, Non-GAAP Earnings per Share, Adjusted EBITDA, and Free Cash Flow.
| ($ in millions, except per share amounts) | Q1 2022 Guidance |
| Revenue | |
| Subscription & Maintenance Revenue | |
| Non-GAAP Earnings per Share | |
| Adjusted EBITDA | |
| Q1 Non-GAAP Earnings per Share assumes 46.0 million shares outstanding. | |
| Full Year 2022 Guidance | |
| Revenue | |
| Subscription & Maintenance Revenue | |
| Non-GAAP Earnings per Share | |
| Adjusted EBITDA | |
| Free Cash Flow | |
| 2022 Non-GAAP Earnings per Share assumes 46.2 million shares outstanding. | |
All guidance presented by the Company is inherently uncertain and subject to numerous risks and uncertainties. Avid’s actual future results of operations could differ materially from those shown in the table above. For a discussion of some of the key assumptions underlying the guidance, as well as the key risks and uncertainties associated with these forward-looking statements, please see “Forward-Looking Statements” below as well as the Avid Technology Q4 and Full-Year 2021 Business Update presentation posted on Avid’s Investor Relations website at ir.avid.com.
Conference Call to Discuss Fourth Quarter and FY 2021 Results on March 1, 2022
Avid will host a conference call to discuss its financial results for the fourth quarter and FY 2021 on Tuesday, March 1, 2022 at 5:30 p.m. ET. Participants may join the webcast in listen-only mode and access the presentation slides using the link on the Avid Investor Relations website, which can be found on the Events & Presentations tab at ir.avid.com. Participants who would like to ask a question can access the call by dialing +1 646-828-8193 and referencing confirmation code 7636999. Please connect at least 15 minutes in advance to ensure a timely connection to the call. A replay of the call will also be available for a limited time and can be accessed on the Events & Presentations tab of the Avid Investor Relations website shortly after the completion of the call.
Non-GAAP Financial Measures and Operational Metrics
Avid includes non-GAAP financial measures in this press release, including Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Non-GAAP Gross Margin, Non-GAAP Operating Expenses, Non-GAAP Net Income, and Non-GAAP Earnings per Share. The Company also includes the operational metrics of Cloud-enabled software subscriptions, Recurring Revenue, LTM Recurring Revenue % and Annual Contract Value in this release. Avid believes the non-GAAP financial measures and operational metrics provided in this release provide helpful information to investors with respect to evaluating the Company’s performance. Unless noted, all financial and operating information is reported based on actual exchange rates. Definitions of the non-GAAP financial measures and the operational metrics are included in our Form 8-K filed today. Reconciliations of the non-GAAP financial measures presented in this press release to the Company's comparable GAAP financial measures for the periods presented are set forth below and are included in the supplemental financial and operational data sheet available on our Investor Relations website at ir.Avid.com, which also includes definitions of all operational metrics.
This press release also includes expectations for future Adjusted EBITDA, Non-GAAP Earnings per Share and Free Cash Flow, which are forward-looking non-GAAP financial measures. Reconciliations of these forward-looking non-GAAP measures are not included in this press release or elsewhere, due to the high variability and difficulty in making accurate forecasts and projections of some of the information excluded from the estimation of the non-GAAP results, together with some of the excluded information not being ascertainable or accessible at this time. As a result, we are unable to quantify certain amounts that would be required to be included in the most directly comparable GAAP financial measure without unreasonable efforts.
Forward-Looking Statements
Certain information provided in this press release includes forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements include statements regarding our future financial performance or position, results of operations, business strategy, plans and objectives of management for future operations, and other statements that are not historical fact. You can identify forward-looking statements by their use of forward-looking words such as “may”, “will”, “anticipate”, “expect”, “believe”, “estimate”, “intend”, “plan”, “should”, “seek”, or other comparable terms.
Readers of this press release should understand that these forward-looking statements are not guarantees of performance or results. Forward-looking statements provide our current expectations and beliefs concerning future events and are subject to risks, uncertainties, and factors relating to our business and operations, all of which are difficult to predict and could cause our actual results to differ materially from the expectations expressed in or implied by such forward-looking statements.
These risks, uncertainties, and factors include, but are not limited to: risks related to the impact of the coronavirus (COVID-19) outbreak on our business, suppliers, consumers, customers and employees; economic, social, and political instability, security concerns, and the risk of war or armed conflict, particularly in areas of heightened geopolitical tension and open conflict such as Ukraine where we have outsourced research and development activities; our liquidity; our ability to execute our strategic plan including our cost saving strategies, and to meet customer needs; our ability to retain and hire key personnel; our ability to produce innovative products in response to changing market demand, particularly in the media industry; our ability to successfully accomplish our product development plans; competitive factors; history of losses; fluctuations in our revenue based on, among other things, our performance and risks in particular geographies or markets; our higher indebtedness and ability to service it and meet the obligations thereunder; restrictions in our credit facilities; our move to a subscription model and related effect on our revenues and ability to predict future revenues; fluctuations in subscription and maintenance renewal rates; elongated sales cycles; fluctuations in foreign currency exchange rates; seasonal factors; adverse changes in economic conditions; variances in our revenue backlog and the realization thereof; risks related to the availability and prices of raw materials, including any negative effects caused by inflation, armed conflict and related sanctions, weather conditions, or health pandemics; disruptions or inefficiencies in our supply chain and/or operations, including from armed conflict and related sanctions and the COVID-19 outbreak; the costs, disruption, and diversion of management's attention due to the COVID-19 outbreak; the possibility of legal proceedings adverse to our Company; and other risks described in our reports filed from time to time with the U.S. Securities and Exchange Commission. Moreover, the business may be adversely affected by future legislative, regulatory or other changes, including tax law changes, as well as other economic, business and/or competitive factors. The risks included above are not exhaustive. We caution readers not to place undue reliance on any forward-looking statements included in this press release which speak only as to the date of this press release. We undertake no responsibility to update or revise any forward-looking statements, except as required by law.
Avid Powers Greater Creators
People who create media for a living become greater creators with Avid’s award-winning technology solutions to make, manage and monetize today’s most celebrated video and audio content—from iconic movies and bingeworthy TV series, to network news and sports, to recorded music and the live stage. What began more than 30 years ago with our invention of nonlinear digital video editing has led to individual artists, creative teams and organizations everywhere subscribing to our powerful tools and collaborating securely in the cloud. We continue to re-imagine the many ways editors, musicians, producers, journalists and other content creators will bring their stories to life. Discover the possibilities at avid.com and join the conversation on social media with the multitude of brilliant creative people who choose Avid for a lifetime of success.
© 2022 Avid Technology, Inc., Avid and its logo are property of Avid. All rights reserved. Other trademarks are property of their respective owners.
| AVID TECHNOLOGY, INC. | |||||||||||||||||||
| Condensed Consolidated Statements of Operations | |||||||||||||||||||
| (unaudited - in thousands, except per share data) | |||||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||||
| December 31, | December 31, | ||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||||
| Net revenues: | |||||||||||||||||||
| Subscription | $ | 34,059 | $ | 24,539 | $ | 108,443 | $ | 72,831 | |||||||||||
| Maintenance | 31,414 | 30,985 | 122,411 | 124,175 | |||||||||||||||
| Integrated solutions and other | 53,591 | 48,777 | 179,090 | 163,460 | |||||||||||||||
| Total net revenues | 119,064 | 104,301 | 409,944 | 360,466 | |||||||||||||||
| Cost of revenues: | |||||||||||||||||||
| Subscription | 4,753 | 2,413 | 14,963 | 6,870 | |||||||||||||||
| Maintenance | 5,846 | 6,190 | 22,981 | 21,651 | |||||||||||||||
| Integrated solutions and other | 30,118 | 30,348 | 106,196 | 103,625 | |||||||||||||||
| Total cost of revenues | 40,717 | 38,951 | 144,140 | 132,146 | |||||||||||||||
| Gross profit | 78,347 | 65,350 | 265,804 | 228,320 | |||||||||||||||
| Operating expenses: | |||||||||||||||||||
| Research and development | 16,920 | 14,902 | 65,559 | 57,018 | |||||||||||||||
| Marketing and selling | 28,983 | 22,660 | 95,494 | 87,637 | |||||||||||||||
| General and administrative | 15,158 | 12,908 | 57,372 | 47,052 | |||||||||||||||
| Restructuring costs, net | 115 | 4,038 | 1,116 | 5,046 | |||||||||||||||
| Total operating expenses | 61,176 | 54,508 | 219,541 | 196,753 | |||||||||||||||
| Operating income | 17,171 | 10,842 | 46,263 | 31,567 | |||||||||||||||
| Interest expense, net | (1,609 | ) | (4,565 | ) | (7,149 | ) | (20,001 | ) | |||||||||||
| Other income, net | 389 | 636 | 4,841 | 868 | |||||||||||||||
| Income before income taxes | 15,951 | 6,913 | 43,955 | 12,434 | |||||||||||||||
| Provision for (benefit from) income taxes | 735 | (174 | ) | 2,567 | 1,372 | ||||||||||||||
| Net income | $ | 15,216 | $ | 7,087 | $ | 41,388 | $ | 11,062 | |||||||||||
| Net income per common share - basic | $ | 0.34 | $ | 0.16 | $ | 0.92 | $ | 0.25 | |||||||||||
| Net income per common share - diluted | $ | 0.33 | $ | 0.16 | $ | 0.89 | $ | 0.25 | |||||||||||
| Weighted-average common shares outstanding - basic | 45,061 | 44,288 | 45,101 | 43,822 | |||||||||||||||
| Weighted-average common shares outstanding - diluted | 45,773 | 45,541 | 46,303 | 44,878 | |||||||||||||||
| AVID TECHNOLOGY, INC. | ||||||||||||||||||
| Reconciliations of GAAP Financial Measures to Non-GAAP Financial Measures | ||||||||||||||||||
| (unaudited - in thousands) | ||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||
| December 31, | December 31, | |||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||||
| GAAP Revenue | ||||||||||||||||||
| GAAP Revenue | $ | 119,064 | $ | 104,301 | $ | 409,944 | $ | 360,466 | ||||||||||
| Non-GAAP Gross Profit | ||||||||||||||||||
| GAAP Gross Profit | 78,347 | 65,350 | 265,804 | 228,320 | ||||||||||||||
| Stock-based compensation | 439 | 431 | 1,801 | 1,339 | ||||||||||||||
| Non-GAAP Gross Profit | $ | 78,786 | $ | 65,781 | $ | 267,605 | $ | 229,659 | ||||||||||
| GAAP Gross Margin | 65.8 | % | 62.7 | % | 64.8 | % | 63.3 | % | ||||||||||
| Non-GAAP Gross Margin | 66.2 | % | 63.1 | % | 65.3 | % | 63.7 | % | ||||||||||
| Non-GAAP Operating Expenses | ||||||||||||||||||
| GAAP Operating Expenses | 61,176 | 54,508 | 219,541 | 196,753 | ||||||||||||||
| Less Amortization of intangible assets | (73 | ) | (105 | ) | (388 | ) | (411 | ) | ||||||||||
| Less Stock-based compensation | (3,208 | ) | (2,101 | ) | (12,681 | ) | (9,325 | ) | ||||||||||
| Less Restructuring costs, net | (115 | ) | (4,038 | ) | (1,116 | ) | (5,046 | ) | ||||||||||
| Less Acquisition, integration and other costs | (985 | ) | (1,015 | ) | (3,068 | ) | (832 | ) | ||||||||||
| Less Efficiency program costs | - | (886 | ) | (48 | ) | (1,331 | ) | |||||||||||
| Less Digital Transformation costs | (1,028 | ) | - | (1,836 | ) | - | ||||||||||||
| Less COVID-19 related expenses | - | (27 | ) | (22 | ) | (278 | ) | |||||||||||
| Non-GAAP Operating Expenses | $ | 55,767 | $ | 46,336 | $ | 200,382 | $ | 179,530 | ||||||||||
| Non-GAAP Operating Income and Adjusted EBITDA | ||||||||||||||||||
| GAAP net income | 15,216 | 7,087 | 41,388 | 11,062 | ||||||||||||||
| Interest and other expense | 1,220 | 3,929 | 2,308 | 19,133 | ||||||||||||||
| Provision for income taxes | 735 | (174 | ) | 2,567 | 1,372 | |||||||||||||
| GAAP Operating Income | 17,171 | 10,842 | 46,263 | 31,567 | ||||||||||||||
| Amortization of intangible assets | 73 | 105 | 388 | 411 | ||||||||||||||
| Stock-based compensation | 3,647 | 2,532 | 14,482 | 10,664 | ||||||||||||||
| Restructuring costs, net | 115 | 4,038 | 1,116 | 5,046 | ||||||||||||||
| Acquisition, integration and other costs | 985 | 1,015 | 3,068 | 832 | ||||||||||||||
| Efficiency program costs | - | 886 | 48 | 1,331 | ||||||||||||||
| Digital Transformation costs | 1,028 | - | 1,836 | - | ||||||||||||||
| COVID-19 related expenses | - | 27 | 22 | 278 | ||||||||||||||
| Non-GAAP Operating Income | $ | 23,019 | $ | 19,445 | $ | 67,223 | $ | 50,129 | ||||||||||
| Depreciation | 1,932 | 2,188 | 8,255 | 8,505 | ||||||||||||||
| Adjusted EBITDA | $ | 24,951 | $ | 21,633 | $ | 75,478 | $ | 58,634 | ||||||||||
| GAAP net income margin | 12.8 | % | 6.8 | % | 10.1 | % | 3.1 | % | ||||||||||
| Adjusted EBITDA Margin | 21.0 | % | 20.7 | % | 18.4 | % | 16.3 | % | ||||||||||
| Non-GAAP Net Income | ||||||||||||||||||
| GAAP net income | 15,216 | 7,087 | 41,388 | 11,062 | ||||||||||||||
| Amortization of intangible assets | 73 | 105 | 388 | 411 | ||||||||||||||
| Stock-based compensation | 3,647 | 2,532 | 14,482 | 10,664 | ||||||||||||||
| Restructuring costs, net | 115 | 4,038 | 1,116 | 5,046 | ||||||||||||||
| Acquisition, integration and other costs | 985 | 1,015 | 3,068 | 832 | ||||||||||||||
| Efficiency program costs | - | 886 | 48 | 1,331 | ||||||||||||||
| Digital Transformation costs | 1,028 | - | 1,836 | - | ||||||||||||||
| Gain on forgiveness of PPP Loan | - | - | (7,800 | ) | - | |||||||||||||
| COVID-19 related expenses | - | 27 | 22 | 278 | ||||||||||||||
| Loss on Extinguishment of debt | - | - | 3,748 | - | ||||||||||||||
| Tax impact of non-GAAP adjustments | (198 | ) | (461 | ) | (382 | ) | (496 | ) | ||||||||||
| Non-GAAP Net Income | $ | 20,866 | $ | 15,229 | $ | 57,914 | $ | 29,128 | ||||||||||
| Weighted-average share count (Basic) | 45,061 | 44,288 | 45,101 | 43,822 | ||||||||||||||
| Weighted-average share count (Diluted) | 45,773 | 45,541 | 46,303 | 44,878 | ||||||||||||||
| Non-GAAP Earnings per Share (Basic) | $ | 0.46 | $ | 0.34 | $ | 1.28 | $ | 0.66 | ||||||||||
| Non-GAAP Earnings per Share (Diluted) | $ | 0.46 | $ | 0.33 | $ | 1.25 | $ | 0.65 | ||||||||||
| Free Cash Flow | ||||||||||||||||||
| Net cash provided by operating activities | 27,071 | 30,704 | 62,489 | 39,555 | ||||||||||||||
| Capital expenditures | (2,069 | ) | (73 | ) | (6,819 | ) | (5,692 | ) | ||||||||||
| Free Cash Flow | $ | 25,002 | $ | 30,631 | $ | 55,670 | $ | 33,863 | ||||||||||
| Free Cash Flow conversion from Adjusted EBITDA | 100.2 | % | 141.6 | % | 73.8 | % | 57.8 | % | ||||||||||
| AVID TECHNOLOGY, INC. | ||||||||||
| Condensed Consolidated Balance Sheets | ||||||||||
| (unaudited - in thousands) | ||||||||||
| December 31, | December 31, | |||||||||
| 2021 | 2020 | |||||||||
| Assets | ||||||||||
| Current Assets | ||||||||||
| Cash and Cash Equivalents | $ | 56,818 | $ | 79,899 | ||||||
| Restricted Cash | 2,416 | 1,422 | ||||||||
| Accounts receivable, net of allowances of | ||||||||||
| at December 30, 2021 and December 31, 2020, respectively | 77,046 | 78,614 | ||||||||
| Inventories | 19,922 | 26,568 | ||||||||
| Prepaid Expenses | 5,464 | 6,044 | ||||||||
| Contract Assets | 18,903 | 18,579 | ||||||||
| Other Current Assets | 1,953 | 2,366 | ||||||||
| Total Current Assets | 182,522 | 213,492 | ||||||||
| Property and Equipment, Net | 16,028 | 16,814 | ||||||||
| Goodwill | 32,643 | 32,643 | ||||||||
| Right of Use Assets | 24,143 | 29,430 | ||||||||
| Deferred Tax Assets, Net | 5,210 | 6,801 | ||||||||
| Other Long-Term Assets | 13,454 | 5,958 | ||||||||
| Total Assets | $ | 274,000 | $ | 305,138 | ||||||
| Liabilities and Stockholders' Deficit | ||||||||||
| Current Liabilities | ||||||||||
| Accounts Payable | $ | 26,854 | $ | 21,823 | ||||||
| Accrued Compensation and Benefits | 35,458 | 29,105 | ||||||||
| Accrued Expenses and Other Current Liabilities | 37,552 | 42,264 | ||||||||
| Income Taxes Payable | 868 | 1,664 | ||||||||
| Short-Term Debt | 9,158 | 4,941 | ||||||||
| Deferred Revenues | 87,475 | 87,974 | ||||||||
| Total Current Liabilities | 197,365 | 187,771 | ||||||||
| Long-Term Debt | 160,806 | 202,759 | ||||||||
| Long-Term Deferred Revenues | 10,607 | 11,284 | ||||||||
| Long-Term Lease Liabilities | 23,379 | 28,462 | ||||||||
| Other Long-Term Liabilities | 5,917 | 7,786 | ||||||||
| Total Liabilities | 398,074 | 438,062 | ||||||||
| Stockholders' Deficit | ||||||||||
| Common Stock | 455 | 442 | ||||||||
| Treasury Stock | (25,090 | ) | - | |||||||
| Additional Paid in Capital | 1,031,633 | 1,036,658 | ||||||||
| Accumulated Deficit | (1,126,959 | ) | (1,168,347 | ) | ||||||
| Accumulated Other Comprehensive Loss | (4,113 | ) | (1,677 | ) | ||||||
| Total Stockholders' Deficit | (124,074 | ) | (132,924 | ) | ||||||
| Total Liabilities and Stockholders' Deficit | $ | 274,000 | $ | 305,138 | ||||||
| AVID TECHNOLOGY, INC. | ||||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||||
| (unaudited - in thousands) | ||||||||||
| Twelve Months Ended | ||||||||||
| December 31, | ||||||||||
| 2021 | 2020 | |||||||||
| Cash flows from operating activities: | ||||||||||
| Net income | $ | 41,388 | $ | 11,062 | ||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||
| Depreciation and amortization | 8,254 | 8,505 | ||||||||
| Provision for doubtful accounts | 694 | 1,298 | ||||||||
| Loss on extinguishment of debt | 2,579 | - | ||||||||
| Stock-based compensation expense | 13,737 | 10,664 | ||||||||
| Non-cash provision for restructuring | 956 | 5,046 | ||||||||
| Non-cash interest expense | 515 | 3,651 | ||||||||
| Gain on extinguishment of PPP loan | (7,800 | ) | - | |||||||
| Unrealized foreign currency transaction (gains) loss | (2,101 | ) | 1,570 | |||||||
| Provision for deferred taxes | 1,591 | 827 | ||||||||
| Changes in operating assets and liabilities: | ||||||||||
| Accounts receivable | 875 | (6,124 | ) | |||||||
| Inventories | 6,646 | 2,598 | ||||||||
| Prepaid expenses and other assets | (1,156 | ) | 6,176 | |||||||
| Accounts payable | 5,032 | (18,141 | ) | |||||||
| Accrued expenses, compensation and benefits and other liabilities | 69 | 10,432 | ||||||||
| Income taxes payable | (796 | ) | (281 | ) | ||||||
| Deferred revenue and contract assets | (7,994 | ) | 2,272 | |||||||
| Net cash provided by operating activities | 62,489 | 39,555 | ||||||||
| Cash flows from investing activities: | ||||||||||
| Purchases of property and equipment | (6,819 | ) | (5,692 | ) | ||||||
| Net cash used in investing activities | (6,819 | ) | (5,692 | ) | ||||||
| Cash flows from financing activities: | ||||||||||
| Proceeds from revolving line of credit | - | 22,000 | ||||||||
| Repayment from revolving line of credit | - | (22,000 | ) | |||||||
| Proceeds from long-term debt | 180,000 | 7,800 | ||||||||
| Repayment of debt | (210,456 | ) | (2,250 | ) | ||||||
| Payments for repurchase of common stock | (24,787 | ) | - | |||||||
| Payments for repurchase of outstanding Notes | - | (28,867 | ) | |||||||
| Proceeds from the issuance of common stock under employee stock plans | 808 | 547 | ||||||||
| Common stock repurchases for tax withholdings for net settlement of equity awards | (19,557 | ) | (2,365 | ) | ||||||
| Prepayment for loss on extinguishment of debt | (1,169 | ) | - | |||||||
| Partial unwind capped call cash receipt | - | 875 | ||||||||
| Payments for credit facility issuance costs | (2,574 | ) | (289 | ) | ||||||
| Net cash used in financing activities | (77,735 | ) | (24,549 | ) | ||||||
| Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (1,016 | ) | 1,748 | |||||||
| Net (decrease) increase in cash, cash equivalents, and restricted cash | (23,081 | ) | 11,062 | |||||||
| Cash, cash equivalents and restricted cash at beginning of the period | $ | 83,637 | 72,575 | |||||||
| Cash, cash equivalents and restricted cash at end of the period | $ | 60,556 | $ | 83,637 | ||||||
| Supplemental information: | ||||||||||
| Cash and cash equivalents | $ | 56,818 | 79,899 | |||||||
| Restricted cash | 2,416 | 1,422 | ||||||||
| Restricted cash included in other long-term assets | 1,322 | 2,316 | ||||||||
| Total cash, cash equivalents and restricted cash shown in the statement of cash flows | $ | 60,556 | $ | 83,637 | ||||||
| AVID TECHNOLOGY, INC. | ||||||||||
| Supplemental Revenue Information | ||||||||||
| (unaudited - in millions) | ||||||||||
| Dec 31, | Sep 30, | Dec 31, | ||||||||
| 2021 | 2021 | 2020 | ||||||||
| Revenue Backlog* | ||||||||||
| Deferred Revenue | ||||||||||
| Other Backlog | 314.7 | 315.0 | 336.2 | |||||||
| Total Revenue Backlog | ||||||||||
| The expected timing of recognition of revenue backlog as of December 31, 2021 is as follows: | ||||||||||
| 2022 | 2023 | 2024 | Thereafter | Total | ||||||
| Deferred Revenue | ||||||||||
| Other Backlog | 138.6 | 83.3 | 54.9 | 37.9 | ||||||
| Total Revenue Backlog | ||||||||||
| *A definition of Revenue Backlog is included in our Form 10-K and the supplemental financial and operational data sheet available on our investor relations webpage at ir.avid.com. | ||||||||||
FAQ
What were Avid's Q4 2021 revenue results?
How much did Avid's subscription revenue grow in Q4 2021?
What was Avid's net income per share in Q4 2021?
What is Avid's guidance for 2022 revenue?
What are Avid's expected non-GAAP EPS for 2022?
