MeridianLink Reports Fourth Quarter and Fiscal Year 2024 Results

Rhea-AI Summary

MeridianLink (NYSE: MLNK) reported strong Q4 2024 results with revenue reaching $79.4 million, up 7% year-over-year. Lending software solutions revenue grew 7% to $63.8 million. The company posted a net loss of $(7.7) million and adjusted EBITDA of $33.4 million.

For full-year 2024, revenue increased 4% to $316.3 million, with lending software solutions revenue up 7% to $249.3 million. The company reported a net loss of $(29.8) million and adjusted EBITDA of $130.7 million.

The Board approved a $129.5 million stock repurchase program. Looking ahead, MeridianLink projects 2025 revenue between $326.0-334.0 million and adjusted EBITDA of $131.5-137.5 million.

Positive

• Record bookings despite challenging macro environment
• Q4 revenue up 7% YoY to $79.4M
• Lending software solutions revenue grew 7% YoY
• Best new logo quarter in two years
• $129.5M stock repurchase program approved
• Strong free cash flow at $70.3M for 2024

Negative

• Q4 net loss of $7.7M
• FY2024 net loss of $29.8M
• Operating loss of $0.2M in Q4
• Revenue growth slowed to 4% for full year 2024

Insights

Financial Analyst

MeridianLink's Q4 results show 7% revenue growth to $79.4 million, with lending software solutions also growing 7% to $63.8 million. The company delivered strong adjusted EBITDA of $33.4 million (42% margin) and free cash flow of $12.1 million (15% of revenue). For the full year 2024, revenue grew 4% to $316.3 million.

While MeridianLink posted GAAP operating and net losses, their strong cash generation capabilities are evident with $77.8 million in operating cash flow for the year (25% of revenue). This healthy cash position supports their newly announced $129.5 million stock repurchase program, which supersedes previous authorizations and signals management's confidence in the company's prospects.

The company's 2025 guidance projects revenue of $326-334 million (approximately 3-6% growth) with adjusted EBITDA between $131.5-137.5 million, maintaining similar margins to 2024. More encouraging is their business momentum, with record bookings despite the challenging macro environment and their best new logo quarter in two years, including a significant win with an $8 billion bank.

MeridianLink's "land and expand" strategy appears to be gaining traction, particularly with their MeridianLink One platform. Their focus on mid-market financial institutions and their ability to deliver high-margin recurring revenue positions them well in the financial technology space, though profitability on a GAAP basis remains a challenge to overcome.

Tech Industry Expert

MeridianLink's performance reflects the growing demand for digital lending infrastructure among mid-market financial institutions. Their MeridianLink One platform is driving record bookings, validating their strategy of offering comprehensive solutions rather than point products in the financial software space.

The company's customer acquisition metrics are particularly noteworthy, with fifteen institutions selecting their enhanced Point-of-Sale solution (MeridianLink Access) in Q4 alone. The deal with an $8 billion bank for both mortgage and consumer products demonstrates the cross-selling potential of their integrated platform approach and validates their position as a digital transformation enabler.

Their new Share-of-Wallet add-on represents an intelligent expansion of their product suite, with early implementation at FedChoice Federal Credit Union showing conversion rates up to 9% - a strong indicator of ROI for financial institutions using their solutions. Similarly, the ScoreNavigator partnership enhances their value proposition by addressing a critical pain point in the lending workflow.

Looking forward, MeridianLink's increased investment in growth initiatives signals a shift from margin optimization toward market expansion. This calculated approach leverages their strong cash position while addressing the competitive pressure in the fintech space. The projected 3-6% revenue growth for 2025 appears conservative given their product momentum, suggesting potential upside if macro conditions improve for their financial institution customers.

Fourth quarter revenue of $79.4 million grows 7% year-over-year

COSTA MESA, Calif.--(BUSINESS WIRE)-- MeridianLink, Inc. (NYSE: MLNK), a leading provider of modern software platforms for financial institutions and consumer reporting agencies, today announced financial results for the fourth quarter and fiscal year ended December 31, 2024. Additionally, MeridianLink’s Board of Directors has approved a stock repurchase program that authorizes the Company to repurchase up to $129.5 million of its common stock.

“MeridianLink^® finished the year strongly, with record bookings despite a challenging macro environment, which is continued evidence of customers turning to MeridianLink^® One to implement digital lending strategies that win," said Nicolaas Vlok, chief executive officer of MeridianLink. “Our dedication to customer success paired with our focus on execution has solidified our position as the leading digital lending platform for mid-market financial institutions. Looking forward, we are deploying capital into the business to drive demand and accelerate revenue growth. With our solid foundation and incremental investment, we believe we are well-positioned to scale the business in 2025 and beyond.”

Quarterly Financial Highlights:

• Revenue of $79.4 million, an increase of 7% year-over-year
• Lending software solutions revenue of $63.8 million, an increase of 7% year-over-year
• Operating loss of $(0.2) million, or 0% of revenue, and non-GAAP operating income of $17.8 million, or 22% of revenue
• Net loss of $(7.7) million, or (10)% of revenue, and adjusted EBITDA of $33.4 million, or 42% of revenue
• Cash flows from operations of $13.8 million, or 17% of revenue, and free cash flow of $12.1 million, or 15% of revenue

2024 Fiscal Year Financial Highlights:

• Revenue of $316.3 million, an increase of 4% year-over-year
• Lending software solutions revenue of $249.3 million, an increase of 7% year-over-year
• Operating income of $4.6 million, or 1% of revenue, and non-GAAP operating income of $67.7 million, or 21% of revenue
• Net loss of $(29.8) million, or (9)% of revenue, and adjusted EBITDA of $130.7 million, or 41% of revenue
• Cash flows from operations of $77.8 million, or 25% of revenue, and free cash flow of $70.3 million, or 22% of revenue

Business and Operating Highlights:

• MeridianLink finished the year strong with a healthy pipeline and record bookings driven by demand for MeridianLink® One, demonstrating the success of our land and expand strategy.
• In the quarter, fifteen customers selected MeridianLink^® Access, demonstrating continued demand for our enhanced Point-of-Sale solution that provides personalized, digital consumer experiences.
• MeridianLink achieved the best new logo quarter in two years, including a significant deal with an $8 billion bank who purchased both MeridianLink® Mortgage and Consumer to enable cross-selling and their digital transformation efforts.
• MeridianLink launched a new Share-of-Wallet add-on for MeridianLink^® Consumer and Opening customers, which FedChoice Federal Credit Union implemented, resulting in conversion rates of up to 9% for their campaigns.
• MeridianLink announced a new partnership with ScoreNavigator, an advanced credit report analysis tool, providing our customers with a more efficient screening and communication platform to increase application approval opportunities for lenders.

Stock Repurchase Program

Our board of directors has authorized a new stock repurchase program to acquire up to $129.5 million of the Company’s common stock in February 2025. The program is effective immediately and supersedes all prior authorized stock repurchase programs. There was an aggregate of approximately $29.7 million remaining for repurchase under the prior stock repurchase programs. Stock repurchases are subject to the Company’s discretion based on various factors, including market conditions.

Business Outlook

Based on information as of today, March 6, 2025, the Company issues full year 2025 financial guidance as follows:

Full Year 2025:

• Revenue is expected to be in the range of $326.0 million to $334.0 million
• Adjusted EBITDA is expected to be in the range of $131.5 million to $137.5 million

Conference Call Information

MeridianLink will hold a conference call to discuss its fourth quarter and fiscal year 2024 results today, March 6, 2025, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). The conference call can be accessed by dialing (800) 549-8228 from North America toll-free or the International number of (289) 819-1520 with Conference ID 31623. A live webcast of the conference call can be accessed from the investor relations page of MeridianLink’s website at ir.meridianlink.com. An archived replay of the webcast will be available at the same website following the conclusion of the call. A telephonic replay will be available until 8:59 p.m. Pacific Time (11:59 p.m. Eastern Time) on Thursday, March 13, 2025, by dialing (888) 660-6264 from North America or the International number of (289) 819-1325 with Playback Passcode 31623.

MeridianLink uses its investor relations website (https://ir.meridianlink.com), press releases, SEC filings, public conference calls and webcasts, blog posts on its website, as well as its social media channels, such as its LinkedIn page (www.linkedin.com/company/meridianlink), X (formerly Twitter) feed (@meridianlink), and Facebook page (www.facebook.com/MeridianLink/), as a means of disclosing material information and for complying with its disclosure obligations under Regulation FD. Information contained on or accessible through the websites is not incorporated by reference into this release, and links for these websites are inactive textual references only.

About MeridianLink

MeridianLink^® (NYSE: MLNK) empowers financial institutions and consumer reporting agencies to drive efficient growth. MeridianLink’s cloud-based digital lending, account opening, background screening, and data verification software solutions leverage shared intelligence from a unified data platform, MeridianLink® One, to enable customers of all sizes to identify growth opportunities, effectively scale up, and support compliance efforts, all while powering an enhanced experience for staff and consumers alike.

For more than 25 years, MeridianLink has prioritized the democratization of lending for consumers, businesses, and communities. Learn more at www.meridianlink.com.

Operational Measures Definitions

We reference bookings, which is an internal operational measure of the business. Bookings is defined as the minimum annual contracted value, or ACV, of newly sold capabilities of our software-as-a-service, or SaaS, products and professional services orders, inclusive of any corresponding fees owed to Third Parties. Bookings is a useful metric as it reflects the SaaS and services that have not been delivered. Management uses bookings to plan their go-to-market and services activities and inform product development efforts.

We reference ACV and ACV release, which are internal operational measures of the business. In any given period, ACV represents the minimum annualized SaaS revenue commitment from fully activated contracts in effect for customers at the end of the applicable period. ACV release is the portion of ACV that is recognized as subscription revenue throughout the twelve-month period beginning on the date after our software solutions are fully implemented. ACV and ACV release are useful to investors in assessing the growth and trajectory of our business. ACV and ACV release are used by management in financial and operational decision-making.

Non-GAAP Financial Measures

To supplement the financial measures presented in accordance with generally accepted accounting principles, or GAAP, we provide certain non-GAAP financial measures, such as adjusted EBITDA and adjusted EBITDA margin; non-GAAP operating income (loss); non-GAAP net income (loss); non-GAAP cost of revenue; non-GAAP sales and marketing expenses; non-GAAP research and development expenses; non-GAAP general and administrative expenses; and free cash flow. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Rather, we believe that these non-GAAP financial measures, when viewed in addition to and not in lieu of our reported GAAP financial results, provide investors with additional meaningful information to assess our financial performance and trends, enable comparison of financial results between periods, and allow for greater transparency with respect to key metrics utilized internally in analyzing and operating our business. The following definitions are provided:

• Non-GAAP operating income (loss): GAAP operating income (loss), excluding the impact of share-based compensation, employer payroll taxes on employee stock transactions, expenses associated with our public offering, charges and gains in connection with litigation unrelated to our core business, expenses related to debt modification, restructuring related costs, expenses for services performed by a third party consultant relating to efforts to remediate our material weakness, and third party acquisition related costs. Non-GAAP operating margin is Non-GAAP operating income (loss) divided by total GAAP revenue.

• Non-GAAP net income (loss): GAAP net income (loss), excluding the impact of share-based compensation, employer payroll taxes on employee stock transactions, expenses associated with our public offering, charges and gains in connection with litigation unrelated to our core business, expenses related to debt modification, restructuring related costs, expenses for services performed by a third party consultant relating to efforts to remediate our material weakness, third party acquisition related costs, and the effect of income taxes, on non-GAAP items. The effects of income taxes on non-GAAP items reflect a fixed long-term projected tax rate of 24%. Non-GAAP net income (loss) margin is Non-GAAP net income (loss) divided by total GAAP revenue.
  
  The Company employs a structural long-term projected non-GAAP income tax rate of 24% for greater consistency across reporting periods, eliminating effects of items not directly related to the Company's operating structure that may vary in size and frequency. This long-term projected non-GAAP income tax rate is determined by analyzing a mix of historical and projected tax filing positions, assumes no additional acquisitions during the projection period and does not include the impact from the partial deferred tax asset valuation allowance, and takes into account various factors, including the Company’s anticipated tax structure, its tax positions in different jurisdictions, and current impacts from key U.S. legislation where the Company operates. We will reevaluate this tax rate, as necessary, for significant events such as significant alterations in the U.S. tax environment, substantial changes in the Company’s geographic earnings mix due to acquisition activity, or other shifts in the Company’s strategy or business operations.
  

• Adjusted EBITDA: GAAP net income (loss) before interest expense, provision for income taxes, depreciation and amortization of intangible assets, share-based compensation expense, employer payroll taxes on employee stock transactions, expenses associated with our public offering, charges and gains in connection with litigation unrelated to our core business, expenses related to debt modification, restructuring related costs, expenses for services performed by a third party consultant relating to efforts to remediate our material weakness, third party acquisition-related costs and deferred revenue reductions from purchase accounting for acquisitions prior to the adoption of ASU 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,” which we early adopted on January 1, 2022 on a prospective basis. Deferred revenue from acquisitions prior to the adoption of ASU 2021-08 was recognized on a straight line basis through December 31, 2023. Non-GAAP Adjusted EBITDA margin is Non-GAAP Adjusted EBITDA divided by total GAAP revenue.

• Non-GAAP cost of revenue: GAAP cost of revenue, excluding the impact of share-based compensation, employer payroll taxes on employee stock transactions, and amortization of developed technology.

• Non-GAAP operating expenses: GAAP operating expenses, excluding the impact of share-based compensation, employer payroll taxes on employee stock transactions, expenses associated with our public offering, charges in connection with litigation unrelated to our core business, expenses related to debt modification, expenses for services performed by a third party consultant relating to efforts to remediate our material weakness, third party acquisition related costs, and depreciation and amortization of intangible assets, as applicable.

• Free cash flow: GAAP cash flow provided by operating activities less GAAP purchases of property and equipment (Capital Expenditures) and GAAP capitalized software additions (Capitalized Software).

Reconciliations to comparable GAAP financial measures are available in the accompanying schedules, which are posted as part of this earnings release on our website. No reconciliation to the most comparable GAAP measure is provided with respect to certain forward-looking non-GAAP financial measures as the GAAP measures are not accessible on a forward-looking basis. We cannot reliably predict all necessary components or their impact to reconcile such financial measures without unreasonable effort due to market-related assumptions that are not within our control as well as certain legal or advisory costs, tax costs or other costs that may arise. The events necessitating a non-GAAP adjustment are inherently unpredictable and may have a significant impact on our future GAAP financial results.

Forward-Looking Statements

This release contains, and our above-referenced conference call and webcast will contain, statements which are not historical facts and are considered forward-looking within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Generally, these statements can be identified by the use of words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “seeks,” “should,” “will,” and variations of such words or similar expressions, although not all forward-looking statements contain these identifying words. Further, statements describing our strategy, outlook, guidance, plans, intentions, or goals are also forward-looking statements. These forward-looking statements reflect our predictions, expectations, or forecasts, including, but not limited to, statements regarding, and guidance with respect to, our strategy, our future financial and operational performance, future economic and market conditions, our strategic initiatives, our stock repurchase programs, including the execution and amount of repurchases, our ability to drive demand and accelerate revenue growth, our ability to scale in 2025, the strength of our pipeline, our ability to retain and attract customers and product partners, the benefit to us and our customers of integrations with our product partners, our development or delivery of new or enhanced solutions and anticipated results of those solutions for our customers, our ability to effectively implement, integrate, and service our customers, our market size and growth opportunities, our competitive positioning, projected costs, technological capabilities and plans, and objectives of management. Actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control including, without limitation, risks related to our business and industry, as well as those set forth in Item 1A. Risk Factors, or elsewhere, in our Annual Report on Form 10-K for the most recently ended fiscal year, any updates in our Quarterly Reports on Form 10-Q filed for periods subsequent to such Form 10-K, and our other SEC filings. These forward-looking statements are based on reasonable assumptions as of the date hereof. The plans, intentions, or expectations disclosed in our forward-looking statements may not be achieved, and you should not rely upon forward-looking statements as predictions of future events. We undertake no obligation, other than as required by applicable law, to update any forward-looking statements, whether as a result of new information, future events, or otherwise.

Consolidated Balance Sheets (unaudited) (in thousands, except share and per share data)
	As of
	December 31, 2024				December 31, 2023
Assets
Current assets:
Cash and cash equivalents	$	92,765			$	80,441
Accounts receivable, net		34,422				32,412
Prepaid expenses and other current assets		10,973				11,574
Total current assets		138,160				124,427
Property and equipment, net		2,167				3,337
Right of use assets, net		1,095				1,140
Intangible assets, net		201,522				251,060
Goodwill		610,063				610,063
Other assets		8,326				6,224
Total assets	$	961,333			$	996,251
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	6,798			$	4,405
Accrued liabilities		29,383				30,673
Deferred revenue		17,170				17,224
Current portion of debt, net of debt issuance costs		3,678				3,542
Total current liabilities		57,029				55,844
Long-term debt, net of debt issuance costs		464,922				420,004
Deferred tax liabilities, net		11,287				10,823
Long-term deferred revenue		75				792
Other long-term liabilities		527				541
Total liabilities	$	533,840			$	488,004
Commitments and contingencies
Stockholders’ Equity:
Preferred stock, $0.001 par value; 50,000,000 shares authorized; zero shares issued and outstanding at December 31, 2024 and December 31, 2023		—				—
Common stock, $0.001 par value; 600,000,000 shares authorized, 76,049,681 and 78,447,701 shares issued and outstanding at December 31, 2024 and December 31, 2023, respectively		127				129
Additional paid-in capital		709,057				654,634
Accumulated deficit		(281,691	)			(146,516	)
Total stockholders’ equity		427,493				508,247
Total liabilities and stockholders’ equity	$	961,333			$	996,251

Consolidated Statements of Operations (unaudited) (in thousands, except share and per share data)
	Three Months Ended December 31,								Year Ended December 31,
	2024				2023				2024				2023
Revenues, net	$	79,437			$	74,579			$	316,298			$	303,617
Cost of revenues:
Subscription and services		21,766				20,389				89,273				90,362
Amortization of developed technology		4,863				4,641				19,255				18,129
Total cost of revenues		26,629				25,030				108,528				108,491
Gross profit		52,808				49,549				207,770				195,126
Operating expenses:
General and administrative		32,393				22,481				116,458				92,663
Research and development		10,045				10,703				39,454				47,517
Sales and marketing		10,687				9,580				43,182				35,792
Restructuring related costs		(139	)			—				4,040				3,621
Total operating expenses		52,986				42,764				203,134				179,593
Operating (loss) income		(178	)			6,785				4,636				15,533
Other (income) expense, net:
Interest and other income		(961	)			(1,433	)			(4,924	)			(4,029	)
Interest expense		8,880				10,031				38,424				38,158
Total other expense, net		7,919				8,598				33,500				34,129
Loss before income taxes		(8,097	)			(1,813	)			(28,864	)			(18,596	)
(Benefit from) provision for income taxes		(352	)			27,761				908				23,943
Net loss	$	(7,745	)		$	(29,574	)		$	(29,772	)		$	(42,539	)
Net loss per share:
Basic	$	(0.10	)		$	(0.38	)		$	(0.39	)		$	(0.53	)
Diluted	$	(0.10	)		$	(0.38	)		$	(0.39	)		$	(0.53	)
Weighted average common stock outstanding:
Basic		75,629,246				78,767,040				76,270,632				80,349,895
Diluted		75,629,246				78,767,040				76,270,632				80,349,895

Net Revenues by Major Source (unaudited) (in thousands)
	Three Months Ended December 31,						Year Ended December 31,
	2024			2023			2024			2023
Subscription fees	$	65,208		$	61,999		$	264,410		$	256,787
Professional services		10,762			10,107			39,477			36,250
Other		3,467			2,473			12,411			10,580
Total	$	79,437		$	74,579		$	316,298		$	303,617

Net Revenues by Solution Type (unaudited) (in thousands)
	Three Months Ended December 31,							Year Ended December 31,
	2024				2023			2024				2023
Lending software solutions	$	63,777			$	59,471		$	249,329			$	232,199
Data verification software solutions		15,660				15,108			66,969				71,418
Total	$	79,437			$	74,579		$	316,298			$	303,617
% Growth (decline) attributable to:
Lending software solutions		6	%						6	%
Data verification software		1	%						(1	)%
Total % growth		7	%						4	%

Percent Revenue Related to the Mortgage Loan Market (unaudited)
	Three Months Ended December 31,						Year Ended December 31,
	2024			2023			2024			2023
Lending software solutions	11	%		13	%		11	%		12	%
Data verification software	57	%		56	%		56	%		59	%
Total % revenue related to mortgage loan market	20	%		22	%		20	%		23	%

Consolidated Statements of Cash Flows (unaudited) (in thousands)
	Year Ended December 31,
	2024				2023
Cash flows from operating activities:
Net (loss) income	$	(29,772	)		$	(42,539	)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation		1,358				1,860
Amortization of intangible assets		56,894				55,969
Amortization of costs capitalized to obtain revenue contracts		4,056				3,342
Provision for expected credit losses		778				930
Amortization of debt issuance costs		653				1,085
Share-based compensation expense		51,355				30,550
Deferred income taxes		464				23,630
Loss on disposal of property and equipment		102				—
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable		(2,183	)			(443	)
Prepaid expenses and other assets		(5,655	)			(7,007	)
Accounts payable		2,435				3,170
Accrued liabilities		(1,912	)			(2,514	)
Deferred revenue		(771	)			(69	)
Net cash provided by operating activities		77,802				67,964
Cash flows from investing activities:
Capitalized software additions		(7,092	)			(9,250	)
Purchases of property and equipment		(367	)			(943	)
Return of escrow deposit		—				30,000
Funds received in connection with former business combination		—				1,219
Funds paid in connection with former business combination		—				(1,219	)
Acquisition, net of cash acquired – Beanstalk Networks LLC		—				326
Net cash (used in) provided by investing activities		(7,459	)			20,133
Cash flows from financing activities:
Repurchases of common stock		(104,847	)			(61,171	)
Excise taxes paid on share repurchases		(403	)			—
Proceeds from exercise of stock options		6,885				2,373
Proceeds from employee stock purchase plan		1,807				1,679
Taxes paid related to net share settlement of restricted stock units		(5,886	)			(1,667	)
Principal payments of debt		(4,660	)			(4,350	)
Proceeds from debt issuance		50,000				—
Payments of debt issuance costs		(840	)			—
Payments of deferred offering costs		(75	)			(300	)
Net cash used in financing activities		(58,019	)			(63,436	)
Net increase in cash and cash equivalents		12,324				24,661
Cash and cash equivalents, beginning of period		80,441				55,780
Cash and cash equivalents, end of period	$	92,765			$	80,441

Supplemental disclosures of cash flow information:
Cash paid for interest	$	37,958			$	37,018
Cash paid for income taxes		690				2,522
Non-cash investing and financing activities:
Shares withheld with respect to net settlement of restricted stock units		5,886				1,667
Initial recognition of operating lease liabilities		623				—
Initial recognition of operating lease right-of-use assets		592				—
Excise taxes payable included in repurchases of common stock		561				377
Share-based compensation expense included in capitalized software additions		265				303
Purchase price allocation adjustment related to income tax effects for StreetShares acquisition		—				1,132
Purchase price allocation adjustment for Beanstalk Networks LLC acquisition		—				274
Purchases of property and equipment included in accounts payable and accrued liabilities		2				80
Costs related to shelf registration on Form S-3 included in accrued liabilities		—				75
Vesting of restricted stock awards and restricted stock units		—				5

Reconciliation from GAAP to Non-GAAP Results (unaudited) (in thousands, except share and per share data)
	Three Months Ended December 31,								Year Ended December 31,
	2024				2023				2024				2023
Operating (loss) income	$	(178	)		$	6,785			$	4,636			$	15,533
Add: Share-based compensation expense		16,672				8,335				51,362				31,213
Add: Employer payroll taxes on employee stock transactions		356				89				1,587				687
Add: Expenses associated with public offering		—				—				2,114				—
Add: Litigation-related charges(1)		—				—				1,864				—
Add: Expenses related to debt modification		—				—				473				—
Add: Restructuring related costs(2)		(139	)			—				4,040				3,621
Add: Expenses associated with material weakness remediation(3)		840				—				1,347				—
Add: Acquisition related costs		277				—				277				—
Non-GAAP operating income	$	17,828			$	15,209			$	67,700			$	51,054
Operating margin		—	%			9	%			1	%			5	%
Non-GAAP operating margin		22	%			20	%			21	%			17	%
	Three Months Ended December 31,								Year Ended December 31,
	2024				2023				2024				2023
Net loss	$	(7,745	)		$	(29,574	)		$	(29,772	)		$	(42,539	)
Add: Share-based compensation expense		16,672				8,335				51,362				31,213
Add: Employer payroll taxes on employee stock transactions		356				89				1,587				687
Add: Expenses associated with public offering		—				—				2,114				—
Add: Litigation-related charges(1)		—				—				1,692				—
Add: Expenses related to debt modification		—				—				473				—
Add: Restructuring related costs(2)		(139	)			—				4,040				3,621
Add: Expenses associated with material weakness remediation(3)		840				—				1,347				—
Add: Acquisition related costs		277				—				277				—
Subtract: Income tax effect on non-GAAP items		(4,321	)			(2,022	)			(15,094	)			(8,525	)
Non-GAAP net income (loss)	$	5,940			$	(23,172	)		$	18,026			$	(15,543	)
Non-GAAP basic net income (loss) per share	$	0.08			$	(0.29	)		$	0.24			$	(0.19	)
Non-GAAP diluted net income (loss) per share	$	0.08			$	(0.29	)		$	0.23			$	(0.19	)
Weighted average shares used to compute Non-GAAP basic net income (loss) per share		75,629,246				78,767,040				76,270,632				80,349,895
Weighted average shares used to compute Non-GAAP diluted net income (loss) per share		79,132,641				78,767,040				79,906,602				80,349,895
Net loss margin		(10	)%			(40	)%			(9	)%			(14	)%
Non-GAAP net income (loss) margin		7	%			(31	)%			6	%			(5	)%
	Three Months Ended December 31,								Year Ended December 31,
	2024				2023				2024				2023
Net loss	$	(7,745	)		$	(29,574	)		$	(29,772	)		$	(42,539	)
Interest expense		8,880				10,031				38,424				38,158
(Benefit from) provision for income taxes		(352	)			27,761				908				23,943
Depreciation and amortization of intangible assets		14,563				14,441				58,252				57,829
Share-based compensation expense		16,672				8,335				51,362				31,213
Employer payroll taxes on employee stock transactions		356				89				1,587				687
Expenses associated with public offering		—				—				2,114				—
Litigation-related charges(1)		—				—				1,692				—
Expenses related to debt modification		—				—				473				—
Restructuring related costs(2)		(139	)			—				4,040				3,621
Expenses associated with material weakness remediation(3)		840				—				1,347				—
Acquisition related costs		277				—				277				—
Deferred revenue reduction from purchase accounting for acquisitions prior to 2022		—				19				—				78
Adjusted EBITDA	$	33,352			$	31,102			$	130,704			$	112,990
Net loss margin		(10	)%			(40	)%			(9	)%			(14	)%
Adjusted EBITDA margin		42	%			42	%			41	%			37	%

(1) Litigation-related charges pertains to litigation settlements and related legal fees. During the year ended December 31, 2024, we incurred $1.5 million in settlements of class action lawsuits and $0.4 million related to third-party legal fees directly related to the settlements. During the year ended December 31, 2024, we recognized a $0.2 million gain on a favorable litigation settlement. The gain was recognized in interest and other income on our consolidated statements of operations.

(2) Restructuring related costs for the year ended December 31, 2024 and 2023 are inclusive of net acceleration (forfeitures) of share-based compensation associated with restructuring in the amount of ($0.0 million) and ($0.7 million), respectively.

(3) Expenses for services performed by a third party consultant related to efforts to remediate our previously identified material weakness.

Reconciliation from GAAP to Non-GAAP Results (unaudited) (in thousands)
	Three Months Ended December 31,								Year Ended December 31,
	2024				2023				2024				2023
Cost of revenue	$	26,629			$	25,030			$	108,528			$	108,491
Less: Share-based compensation expense		1,308				930				4,705				3,848
Less: Employer payroll taxes on employee stock transactions		48				21				277				157
Less: Amortization of developed technology		4,863				4,641				19,255				18,129
Non-GAAP cost of revenue	$	20,410			$	19,438			$	84,291			$	86,357
Cost of revenue as a % of revenue		34	%			34	%			34	%			36	%
Non-GAAP cost of revenue as a % of revenue		26	%			26	%			27	%			28	%
	Three Months Ended December 31,								Year Ended December 31,
	2024				2023				2024				2023
General and administrative	$	32,393			$	22,481			$	116,458			$	92,663
Less: Share-based compensation expense		10,297				4,519				29,984				16,456
Less: Employer payroll taxes on employee stock transactions		210				30				641				246
Less: Expenses associated with public offering		—				—				2,114				—
Less: Litigation-related charges		—				—				1,864				—
Less: Expenses related to debt modification		—				—				473				—
Less: Expenses associated with material weakness remediation		840				—				1,347				—
Less: Acquisition related costs		277				—				277				—
Less: Depreciation expense		293				381				1,358				1,860
Less: Amortization of intangible assets		9,407				9,419				37,639				37,840
Non-GAAP general & administrative	$	11,069			$	8,132			$	40,761			$	36,261
General and administrative as a % of revenue		41	%			30	%			37	%			31	%
Non-GAAP general and administrative as a % of revenue		14	%			11	%			13	%			12	%
	Three Months Ended December 31,								Year Ended December 31,
	2024				2023				2024				2023
Research and development	$	10,045			$	10,703			$	39,454			$	47,517
Less: Share-based compensation expense		3,000				1,692				9,663				7,060
Less: Employer payroll taxes on employee stock transactions		60				26				383				189
Non-GAAP research and development	$	6,985			$	8,985			$	29,408			$	40,268
Research and development as a % of revenue		13	%			14	%			12	%			16	%
Non-GAAP research and development as a % of revenue		9	%			12	%			9	%			13	%
	Three Months Ended December 31,								Year Ended December 31,
	2024				2023				2024				2023
Sales and marketing	$	10,687			$	9,580			$	43,182			$	35,792
Less: Share-based compensation expense		2,067				1,194				7,010				3,849
Less: Employer payroll taxes on employee stock transactions		38				12				286				95
Non-GAAP sales and marketing	$	8,582			$	8,374			$	35,886			$	31,848
Sales and marketing as a % of revenue		13	%			13	%			14	%			12	%
Non-GAAP sales and marketing as a % of revenue		11	%			11	%			11	%			10	%
	Three Months Ended December 31,								Year Ended December 31,
	2024				2023				2024				2023
Net cash provided by operating activities	$	13,813			$	12,478			$	77,802			$	67,964
Less: Capitalized software		1,609				2,246				7,092				9,250
Less: Capital expenditures		154				596				367				943
Free cash flow	$	12,050			$	9,636			$	70,343			$	57,771
Net cash provided by operating actives as a % of revenue		17	%			17	%			25	%			22	%
Free cash flow as a % of revenue		15	%			13	%			22	%			19	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250306116917/en/

For More Information:

Press Contact

Sydney Wishnow

(508) 808-9060

meridianlinkPR@clyde.us

Investor Relations Contact

Gianna Rotellini

(714) 332-6357

InvestorRelations@meridianlink.com

Source: MeridianLink, Inc.

FAQ

What were MeridianLink's (MLNK) Q4 2024 revenue and growth rate?

MeridianLink's Q4 2024 revenue was $79.4 million, representing a 7% growth year-over-year.

How much is MeridianLink's (MLNK) new stock repurchase program worth?

The Board approved a $129.5 million stock repurchase program in February 2025.

What is MeridianLink's (MLNK) revenue guidance for 2025?

MeridianLink expects 2025 revenue to be between $326.0 million and $334.0 million.

What was MeridianLink's (MLNK) lending software solutions revenue in Q4 2024?

Lending software solutions revenue was $63.8 million in Q4 2024, up 7% year-over-year.

What was MeridianLink's (MLNK) adjusted EBITDA margin in Q4 2024?

MeridianLink's Q4 2024 adjusted EBITDA was $33.4 million, representing a 42% margin.