MeridianLink Reports Second Quarter 2024 Results
MeridianLink (NYSE: MLNK) reported a second quarter revenue of $78.7 million, marking a 4% year-over-year increase. Lending software solutions drove this growth, contributing $61.6 million, up 11% year-over-year. Despite this growth, the company faced an operating loss of $1.1 million and a net loss of $9.7 million. However, non-GAAP operating income stood at $15.5 million, and adjusted EBITDA reached $31.8 million, representing 40% of revenue.
MeridianLink generated $14.4 million in cash flows from operations and $12.4 million in free cash flow. Additionally, the company repurchased $29.9 million worth of stock. Leadership changes were announced, with Larry Katz named President and Elias Olmeta appointed as the new CFO, effective August 26, 2024.
The company provides Q3 2024 guidance with revenue expectations between $78.0 to $81.0 million and adjusted EBITDA between $30.0 to $33.0 million. For the full year 2024, revenue is projected to be between $312.0 to $318.0 million, and adjusted EBITDA between $123.0 to $128.0 million.
MeridianLink (NYSE: MLNK) ha riportato un fatturato del secondo trimestre di $78,7 milioni, segnando un incremento del 4% rispetto all'anno precedente. Le soluzioni software per il credito hanno guidato questa crescita, contribuendo con $61,6 milioni, in aumento dell'11% rispetto all'anno precedente. Nonostante questa crescita, l'azienda ha registrato una perdita operativa di $1,1 milioni e una perdita netta di $9,7 milioni. Tuttavia, il reddito operativo non-GAAP si è attestato a $15,5 milioni e l'EBITDA rettificato ha raggiunto $31,8 milioni, pari al 40% del fatturato.
MeridianLink ha generato $14,4 milioni in flussi di cassa dalle operazioni e $12,4 milioni in flusso di cassa libero. Inoltre, l'azienda ha riacquistato azioni per un valore di $29,9 milioni. Sono stati annunciati cambiamenti nella leadership, con Larry Katz nominato Presidente ed Elias Olmeta designato come nuovo CFO, a partire dal 26 agosto 2024.
L'azienda ha fornito le previsioni per il terzo trimestre del 2024, con aspettative di fatturato tra $78,0 e $81,0 milioni e un EBITDA rettificato tra $30,0 e $33,0 milioni. Per l'intero anno 2024, si prevede un fatturato compreso tra $312,0 e $318,0 milioni, e un EBITDA rettificato tra $123,0 e $128,0 milioni.
MeridianLink (NYSE: MLNK) reportó un ingreso del segundo trimestre de $78.7 millones, marcando un aumento del 4% en comparación con el año anterior. Las soluciones de software para préstamos impulsaron este crecimiento, contribuyendo con $61.6 millones, un aumento del 11% interanual. A pesar de este crecimiento, la empresa enfrentó una pérdida operativa de $1.1 millones y una pérdida neta de $9.7 millones. Sin embargo, el ingreso operativo no-GAAP fue de $15.5 millones, y el EBITDA ajustado alcanzó los $31.8 millones, representando el 40% de los ingresos.
MeridianLink generó $14.4 millones en flujos de efectivo de operaciones y $12.4 millones en flujo de efectivo libre. Además, la compañía recompró acciones por $29.9 millones. Se anunciaron cambios en la dirección, con Larry Katz nombrado Presidente y Elias Olmeta designado como nuevo CFO, efectivo a partir del 26 de agosto de 2024.
La compañía proporcionó guías para el tercer trimestre 2024 con expectativas de ingresos entre $78.0 y $81.0 millones y EBITDA ajustado entre $30.0 y $33.0 millones. Para el año completo 2024, se proyecta que los ingresos se sitúen entre $312.0 y $318.0 millones, y EBITDA ajustado entre $123.0 y $128.0 millones.
MeridianLink (NYSE: MLNK)가 2분기 매출 7,870만 달러를 보고하며 지난해 대비 4% 증가했다고 발표했습니다. 대출 소프트웨어 솔루션이 이 성장을 이끌었으며, 6,160만 달러를 기여해 지난해 대비 11% 증가했습니다. 이러한 성장에도 불구하고, 회사는 운영 손실 110만 달러와 순손실 970만 달러를 기록했습니다. 그러나 비GAAP 운영 소득은 1,550만 달러였고, 조정 EBITDA는 3,180만 달러에 도달하여 매출의 40%를 차지했습니다.
MeridianLink는 운영에서 1,440만 달러의 현금 흐름과 1,240만 달러의 자유 현금 흐름을 창출했습니다. 또한, 회사는 2,990만 달러의 주식을 재매입했습니다. 리더십 변화가 발표되었으며, Larry Katz가 사장으로, Elias Olmeta가 2024년 8월 26일부터 새로운 CFO로 임명되었습니다.
회사는 2024년 3분기 가이드라인을 제공하며, 매출 전망을 7,800만 달러에서 8,100만 달러 사이로, 조정 EBITDA를 3,000만 달러에서 3,300만 달러 사이로 설정했습니다. 2024년 전체 연도 매출은 3억 1천2백만 달러에서 3억 1천8백만 달러 사이로, 조정 EBITDA는 1억 2천3백만 달러에서 1억 2천8백만 달러 사이로 예상됩니다.
MeridianLink (NYSE: MLNK) a annoncé un chiffre d'affaires pour le deuxième trimestre de 78,7 millions de dollars, marquant une augmentation de 4 % par rapport à l'année précédente. Les solutions logicielles de prêt ont été le moteur de cette croissance, contribuant à hauteur de 61,6 millions de dollars, soit une augmentation de 11 % par rapport à l'année précédente. Malgré cette croissance, l'entreprise a enregistré une perte opérationnelle de 1,1 million de dollars et une perte nette de 9,7 millions de dollars. Cependant, le revenu opérationnel non-GAAP s'élevait à 15,5 millions de dollars, et l'EBITDA ajusté a atteint 31,8 millions de dollars, représentant 40 % du chiffre d'affaires.
MeridianLink a généré 14,4 millions de dollars de flux de trésorerie provenant des opérations et 12,4 millions de dollars de flux de trésorerie libre. De plus, l'entreprise a racheté des actions d'une valeur de 29,9 millions de dollars. Des changements dans la direction ont été annoncés, avec Larry Katz nommé Président et Elias Olmeta désigné comme nouveau CFO, à compter du 26 août 2024.
L'entreprise a fourni des prévisions pour le 3ème trimestre 2024, s'attendant à un chiffre d'affaires entre 78,0 et 81,0 millions de dollars et un EBITDA ajusté entre 30,0 et 33,0 millions de dollars. Pour l'ensemble de l'année 2024, le chiffre d'affaires devrait se situer entre 312,0 et 318,0 millions de dollars, et l'EBITDA ajusté entre 123,0 et 128,0 millions de dollars.
MeridianLink (NYSE: MLNK) hat einen Umsatz im zweiten Quartal von 78,7 Millionen Dollar gemeldet, was einem Anstieg von 4% im Vergleich zum Vorjahr entspricht. Die Softwarelösungen für Kredite haben dieses Wachstum vorangetrieben und 61,6 Millionen Dollar beigesteuert, was einem Anstieg von 11% im Jahresvergleich entspricht. Trotz dieses Wachstums verzeichnete das Unternehmen einen Betriebsverlust von 1,1 Millionen Dollar und einen nettoverlust von 9,7 Millionen Dollar. Der nicht-GAAP-Betriebsgewinn betrug jedoch 15,5 Millionen Dollar, und das bereinigte EBITDA erreichte 31,8 Millionen Dollar, was 40% des Umsatzes entspricht.
MeridianLink generierte 14,4 Millionen Dollar an Cashflows aus dem Geschäftsbetrieb und 12,4 Millionen Dollar an freiem Cashflow. Darüber hinaus kaufte das Unternehmen Aktien im Wert von 29,9 Millionen Dollar zurück. Änderungen in der Unternehmensführung wurden bekannt gegeben, wobei Larry Katz zum Präsidenten und Elias Olmeta zum neuen CFO ernannt wurde, wirksam ab dem 26. August 2024.
Das Unternehmen gibt die Prognosen für das 3. Quartal 2024 bekannt, mit Umsatzprognosen zwischen 78,0 und 81,0 Millionen Dollar und einem bereinigten EBITDA zwischen 30,0 und 33,0 Millionen Dollar. Für das Gesamtjahr 2024 wird ein Umsatz zwischen 312,0 und 318,0 Millionen Dollar und ein bereinigtes EBITDA zwischen 123,0 und 128,0 Millionen Dollar erwartet.
- Q2 revenue increased by 4% year-over-year to $78.7 million.
- Lending software solutions revenue grew by 11% year-over-year to $61.6 million.
- Non-GAAP operating income was $15.5 million, representing 20% of revenue.
- Adjusted EBITDA reached $31.8 million, 40% of revenue.
- Cash flows from operations were $14.4 million, and free cash flow was $12.4 million.
- Repurchased $29.9 million worth of stock.
- Operating loss of $1.1 million, or (1)% of revenue.
- Net loss of $9.7 million, or (12)% of revenue.
Insights
MeridianLink's Q2 2024 results show mixed signals. While overall revenue grew
The company's adjusted EBITDA of
The updated full-year 2024 guidance suggests cautious optimism, with revenue expected between
MeridianLink's Q2 results highlight the company's strategic focus on its MeridianLink® One platform and digital lending solutions. The adoption of multiple MeridianLink products by existing customers suggests strong product integration and upselling potential. The successful implementation at 3Rivers Federal Credit Union, resulting in decreased loan application times, demonstrates tangible benefits for clients.
The company's investments in AI capabilities through partnerships like Conductiv are promising, potentially leading to significant improvements in approval rates. The new integration between MeridianLink® Insight and Collect for advanced analytics also shows a commitment to enhancing product offerings.
However, the tech sector faces headwinds and MeridianLink's modest overall growth reflects these challenges. The company's ability to continue innovating and adapting to market demands will be important for maintaining its competitive edge in the fintech space.
Second quarter revenue of
“Our second quarter performance highlights the resilience of our business model, continued demand for MeridianLink® One, and our disciplined execution as a leading vertical SaaS company,” said Nicolaas Vlok, chief executive officer of MeridianLink®. “Our lending software solutions continue to perform well in the face of macroeconomic headwinds due to the power of our platform. New and existing customers continue to partner with MeridianLink to execute a digital lending strategy that wins in the market.”
Quarterly Financial Highlights:
-
Revenue of
$78.7 million 4% year-over-year -
Lending software solutions revenue of
$61.6 million 11% year-over-year -
Operating loss of
$(1.1) million $15.5 million 20% of revenue -
Net loss of
$(9.7) million $31.8 million 40% of revenue -
Cash flows from operations of
$14.4 million 18% of revenue, and free cash flow of$12.4 million 16% of revenue -
MeridianLink returned
$29.9 million
Business and Operating Highlights:
- MeridianLink named Larry Katz President of the Company and will welcome Elias Olmeta as our new Chief Financial Officer on August 26, 2024. Mr. Katz will continue to serve as Chief Financial Officer until Mr. Olmeta starts. With these leadership changes, we are enhancing our industry expertise and aligning our customer-facing organization to further scale the business.
- New and existing customers chose MeridianLink One to enhance their lending solutions, including a MeridianLink® Consumer customer who adopted MeridianLink® Mortgage, Mortgage Access, and our Debt Optimization solution.
- MeridianLink announced 3Rivers Federal Credit Union’s successful go-live on MeridianLink® Access and Opening, resulting in a significant decrease in loan application times.
- We enhanced our product capabilities through a new integration between MeridianLink® Insight and Collect that provides customers with advanced analytics to run their businesses, including a new payment propensity index.
-
To offer our customers innovative AI capabilities, we partnered with Conductiv, a leader in providing missing, permissioned data to meet underwriting guidelines, helping customers achieve up to a
47% increase in approval rates without increasing losses.
Business Outlook
Based on information as of today, August 8, 2024, the Company issues third quarter financial guidance and updates full year 2024 financial guidance as follows:
Third Quarter Fiscal 2024:
-
Revenue is expected to be in the range of
$78.0 $81.0 -
Adjusted EBITDA is expected to be in the range of
$30.0 $33.0
Full Year 2024:
-
Revenue is expected to be in the range of
$312.0 $318.0 -
Adjusted EBITDA is expected to be in the range of
$123.0 $128.0
Conference Call Information
MeridianLink will hold a conference call to discuss its second quarter results today, August 8, 2024, 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
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.
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 secondary offering, restructuring related costs, expenses related to debt modification, charges in connection with litigation unrelated to our core business, and sponsor and third-party acquisition-related costs.
-
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 secondary offering, restructuring related costs, expenses related to debt modification, charges in connection with litigation unrelated to our core business, and the effect of income taxes, including the partial valuation allowance, on non-GAAP items. The effects of income taxes on non-GAAP items reflect a fixed long-term projected tax rate of
24% .
The Company employs a structural long-term projected non-GAAP income tax rate of24% 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 or 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 keyU.S. legislation where the Company operates. We will reevaluate this tax rate, as necessary, for significant events such as significant alterations in theU.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: net income (loss) before interest expense, taxes, depreciation and amortization, share-based compensation expense, employer payroll taxes on employee stock transactions, expenses associated with our secondary offering, restructuring related costs, expenses related to debt modification, charges in connection with litigation unrelated to our core business, 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 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 secondary offering, expenses related to debt modification, expenses related to debt modification, charges in connection with litigation unrelated to our core business, and depreciation and amortization, as applicable.
- Free cash flow: GAAP cash flow from operating activities less GAAP purchases of property and equipment (Capital Expenditures) and capitalized costs related to developed technology (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 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. 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 leadership transition and plans, our stock repurchase programs, including the execution and amount of repurchases, the status of litigation matters, including expected or contemplated settlements, associated timing, and estimated fees and expenses, 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.
Condensed Consolidated Balance Sheets (unaudited) (in thousands, except share and per share data) |
|||||||
|
As of |
||||||
|
June 30, 2024 |
|
December 31, 2023 |
||||
|
|
|
|
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
93,009 |
|
|
$ |
80,441 |
|
Accounts receivable, net |
|
35,924 |
|
|
|
32,412 |
|
Prepaid expenses and other current assets |
|
11,323 |
|
|
|
11,574 |
|
Total current assets |
|
140,256 |
|
|
|
124,427 |
|
Property and equipment, net |
|
2,664 |
|
|
|
3,337 |
|
Right of use assets, net |
|
806 |
|
|
|
1,140 |
|
Intangible assets, net |
|
226,525 |
|
|
|
251,060 |
|
Goodwill |
|
610,063 |
|
|
|
610,063 |
|
Other assets |
|
6,622 |
|
|
|
6,224 |
|
Total assets |
$ |
986,936 |
|
|
$ |
996,251 |
|
|
|
|
|
||||
Liabilities and Stockholders’ Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
6,035 |
|
|
$ |
4,405 |
|
Accrued liabilities |
|
30,608 |
|
|
|
30,673 |
|
Deferred revenue |
|
28,337 |
|
|
|
17,224 |
|
Current portion of debt, net of debt issuance costs |
|
3,768 |
|
|
|
3,542 |
|
Total current liabilities |
|
68,748 |
|
|
|
55,844 |
|
Debt, net of debt issuance costs |
|
467,073 |
|
|
|
420,004 |
|
Deferred tax liabilities, net |
|
10,928 |
|
|
|
10,823 |
|
Long-term deferred revenue |
|
261 |
|
|
|
792 |
|
Other long-term liabilities |
|
390 |
|
|
|
541 |
|
Total liabilities |
$ |
547,400 |
|
|
$ |
488,004 |
|
Commitments and contingencies |
|
|
|
||||
Stockholders’ Equity: |
|
|
|
||||
Preferred stock, |
|
— |
|
|
|
— |
|
Common stock, |
|
126 |
|
|
|
129 |
|
Additional paid-in capital |
|
675,191 |
|
|
|
654,634 |
|
Accumulated deficit |
|
(235,781 |
) |
|
|
(146,516 |
) |
Total stockholders’ equity |
|
439,536 |
|
|
|
508,247 |
|
Total liabilities and stockholders’ equity |
$ |
986,936 |
|
|
$ |
996,251 |
|
Condensed Consolidated Statements of Operations (unaudited) (in thousands, except share and per share data) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Revenues, net |
$ |
78,676 |
|
|
$ |
75,415 |
|
|
$ |
156,492 |
|
|
$ |
152,550 |
|
Cost of revenues: |
|
|
|
|
|
|
|
||||||||
Subscription and services |
|
23,373 |
|
|
|
23,984 |
|
|
|
44,717 |
|
|
|
47,485 |
|
Amortization of developed technology |
|
4,803 |
|
|
|
4,510 |
|
|
|
9,532 |
|
|
|
8,964 |
|
Total cost of revenues |
|
28,176 |
|
|
|
28,494 |
|
|
|
54,249 |
|
|
|
56,449 |
|
Gross profit |
|
50,500 |
|
|
|
46,921 |
|
|
|
102,243 |
|
|
|
96,101 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
General and administrative |
|
29,237 |
|
|
|
24,409 |
|
|
|
54,416 |
|
|
|
46,964 |
|
Research and development |
|
9,905 |
|
|
|
11,754 |
|
|
|
19,390 |
|
|
|
25,566 |
|
Sales and marketing |
|
11,467 |
|
|
|
8,558 |
|
|
|
22,003 |
|
|
|
16,771 |
|
Restructuring related costs |
|
988 |
|
|
|
717 |
|
|
|
4,179 |
|
|
|
3,621 |
|
Total operating expenses |
|
51,597 |
|
|
|
45,438 |
|
|
|
99,988 |
|
|
|
92,922 |
|
Operating (loss) income |
|
(1,097 |
) |
|
|
1,483 |
|
|
|
2,255 |
|
|
|
3,179 |
|
Other (income) expense, net: |
|
|
|
|
|
|
|
||||||||
Interest and other income |
|
(1,636 |
) |
|
|
(784 |
) |
|
|
(2,592 |
) |
|
|
(1,254 |
) |
Interest expense |
|
9,797 |
|
|
|
9,316 |
|
|
|
19,379 |
|
|
|
18,347 |
|
Total other expense, net |
|
8,161 |
|
|
|
8,532 |
|
|
|
16,787 |
|
|
|
17,093 |
|
Loss before income taxes |
|
(9,258 |
) |
|
|
(7,049 |
) |
|
|
(14,532 |
) |
|
|
(13,914 |
) |
Provision for (benefit from) income taxes |
|
412 |
|
|
|
(1,819 |
) |
|
|
444 |
|
|
|
(3,018 |
) |
Net loss |
$ |
(9,670 |
) |
|
$ |
(5,230 |
) |
|
$ |
(14,976 |
) |
|
$ |
(10,896 |
) |
|
|
|
|
|
|
|
|
||||||||
Net loss per share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
(0.13 |
) |
|
$ |
(0.06 |
) |
|
$ |
(0.19 |
) |
|
$ |
(0.13 |
) |
Diluted |
$ |
(0.13 |
) |
|
$ |
(0.06 |
) |
|
$ |
(0.19 |
) |
|
$ |
(0.13 |
) |
Weighted average common stock outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
76,527,803 |
|
|
|
80,911,113 |
|
|
|
76,923,824 |
|
|
|
80,786,427 |
|
Diluted |
|
76,527,803 |
|
|
|
80,911,113 |
|
|
|
76,923,824 |
|
|
|
80,786,427 |
|
Net Revenues by Major Source (unaudited) (in thousands) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Subscription fees |
$ |
65,946 |
|
$ |
63,770 |
|
$ |
131,858 |
|
$ |
130,175 |
||||
Professional services |
|
9,559 |
|
|
|
9,002 |
|
|
|
18,569 |
|
|
|
17,437 |
|
Other |
|
3,171 |
|
|
|
2,643 |
|
|
|
6,065 |
|
|
|
4,938 |
|
Total |
$ |
78,676 |
|
|
$ |
75,415 |
|
|
$ |
156,492 |
|
|
$ |
152,550 |
|
Net Revenues by Solution Type (unaudited) (in thousands) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Lending software solutions |
$ |
61,644 |
|
|
$ |
55,778 |
|
$ |
122,547 |
|
|
$ |
113,779 |
||
Data verification software solutions |
|
17,032 |
|
|
|
19,637 |
|
|
|
33,945 |
|
|
|
38,771 |
|
Total |
$ |
78,676 |
|
|
$ |
75,415 |
|
|
$ |
156,492 |
|
|
$ |
152,550 |
|
% Growth attributable to: |
|
|
|
|
|
|
|
||||||||
Lending software solutions |
|
8 |
% |
|
|
|
|
6 |
% |
|
|
||||
Data verification software |
|
(4 |
)% |
|
|
|
|
(3 |
)% |
|
|
||||
Total % growth |
|
4 |
% |
|
|
|
|
3 |
% |
|
|
||||
___________ |
|
|
|
|
|
|
|
||||||||
Percent Revenue Related to the Mortgage Loan Market (unaudited) |
|||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Lending software solutions |
|
|
|
|
|
|
|
Data verification software |
|
|
|
|
|
|
|
Total % revenue related to mortgage loan market |
|
|
|
|
|
|
|
Condensed Consolidated Statements of Cash Flows (unaudited) (in thousands) |
|||||||
|
Six Months Ended June 30, |
||||||
|
2024 |
|
2023 |
||||
Cash flows from operating activities: |
|
|
|
||||
Net loss |
$ |
(14,976 |
) |
|
$ |
(10,896 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
29,096 |
|
|
|
28,955 |
|
Provision for expected credit losses |
|
561 |
|
|
|
441 |
|
Amortization of debt issuance costs |
|
464 |
|
|
|
669 |
|
Share-based compensation expense |
|
20,429 |
|
|
|
13,893 |
|
Deferred income taxes |
|
105 |
|
|
|
(4,192 |
) |
Loss on disposal of property and equipment |
|
6 |
|
|
|
— |
|
Changes in operating assets and liabilities, net of acquisitions: |
|
|
|
||||
Accounts receivable |
|
(4,073 |
) |
|
|
(2,640 |
) |
Prepaid expenses and other assets |
|
(197 |
) |
|
|
(2,395 |
) |
Accounts payable |
|
1,675 |
|
|
|
2,955 |
|
Accrued liabilities |
|
(277 |
) |
|
|
(1,663 |
) |
Deferred revenue |
|
10,581 |
|
|
|
9,058 |
|
Net cash provided by operating activities |
|
43,394 |
|
|
|
34,185 |
|
Cash flows from investing activities: |
|
|
|
||||
Capitalized software additions |
|
(3,684 |
) |
|
|
(4,562 |
) |
Purchases of property and equipment |
|
(152 |
) |
|
|
(305 |
) |
Return of escrow deposit |
|
— |
|
|
|
30,000 |
|
Acquisition, net of cash acquired – Beanstalk Networks LLC |
|
— |
|
|
|
326 |
|
Net cash (used in) provided by investing activities |
|
(3,836 |
) |
|
|
25,459 |
|
Cash flows from financing activities: |
|
|
|
||||
Repurchases of common stock |
|
(73,788 |
) |
|
|
(5,145 |
) |
Proceeds from exercise of stock options |
|
722 |
|
|
|
1,025 |
|
Proceeds from employee stock purchase plan |
|
944 |
|
|
|
793 |
|
Taxes paid related to net share settlement of restricted stock units |
|
(1,676 |
) |
|
|
(1,050 |
) |
Principal payments of debt |
|
(2,278 |
) |
|
|
(2,175 |
) |
Payments of deferred offering costs |
|
(74 |
) |
|
|
— |
|
Proceeds from debt |
|
50,000 |
|
|
|
— |
|
Payments of debt issuance costs |
|
(840 |
) |
|
|
— |
|
Net cash used in financing activities |
|
(26,990 |
) |
|
|
(6,552 |
) |
Net increase in cash and cash equivalents |
|
12,568 |
|
|
|
53,092 |
|
Cash and cash equivalents, beginning of period |
|
80,441 |
|
|
|
55,780 |
|
Cash and cash equivalents, end of period |
$ |
93,009 |
|
|
$ |
108,872 |
|
Supplemental disclosures of cash flow information: |
|
|
|
||||
Cash paid for interest |
$ |
18,893 |
|
|
$ |
17,955 |
|
Cash paid for income taxes |
|
433 |
|
|
|
2,577 |
|
Non-cash investing and financing activities: |
|
|
|
||||
Shares withheld with respect to net settlement of restricted stock units |
|
1,676 |
|
|
|
— |
|
Excise taxes payable included in repurchases of common stock |
|
505 |
|
|
|
— |
|
Share-based compensation expense included in capitalized software additions |
|
138 |
|
|
|
136 |
|
Purchase price allocation adjustment related to income tax effects for StreetShares acquisition |
|
— |
|
|
|
245 |
|
Purchases of property and equipment included in accounts payable and accrued liabilities |
|
— |
|
|
|
3 |
|
Vesting of restricted stock awards and restricted stock units |
|
1 |
|
|
|
5 |
|
Reconciliation from GAAP to Non-GAAP Results (unaudited) (in thousands, except share and per share data) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Operating (loss) income |
$ |
(1,097 |
) |
|
$ |
1,483 |
|
|
$ |
2,255 |
|
|
$ |
3,179 |
|
Add: Share-based compensation expense |
|
12,500 |
|
|
|
9,367 |
|
|
|
20,436 |
|
|
|
14,556 |
|
Add: Employer payroll taxes on employee stock transactions |
|
508 |
|
|
|
322 |
|
|
|
930 |
|
|
|
448 |
|
Add: Expenses associated with public offering |
|
308 |
|
|
|
— |
|
|
|
1,698 |
|
|
|
— |
|
Add: Litigation-related charges |
|
1,864 |
|
|
|
— |
|
|
|
1,864 |
|
|
|
— |
|
Add: Expenses related to debt modification |
|
473 |
|
|
|
— |
|
|
|
473 |
|
|
|
— |
|
Add: Restructuring related costs(2) |
|
988 |
|
|
|
717 |
|
|
|
4,179 |
|
|
|
3,621 |
|
Non-GAAP operating income |
$ |
15,544 |
|
|
$ |
11,889 |
|
|
$ |
31,835 |
|
|
$ |
21,804 |
|
Operating margin |
|
(1 |
)% |
|
|
2 |
% |
|
|
1 |
% |
|
|
2 |
% |
Non-GAAP operating margin |
|
20 |
% |
|
|
16 |
% |
|
|
20 |
% |
|
|
14 |
% |
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net loss |
$ |
(9,670 |
) |
|
$ |
(5,230 |
) |
|
$ |
(14,976 |
) |
|
$ |
(10,896 |
) |
Add: Share-based compensation expense |
|
12,500 |
|
|
|
9,367 |
|
|
|
20,436 |
|
|
|
14,556 |
|
Add: Employer payroll taxes on employee stock transactions |
|
508 |
|
|
|
322 |
|
|
|
930 |
|
|
|
448 |
|
Add: Expenses associated with public offering |
|
308 |
|
|
|
— |
|
|
|
1,698 |
|
|
|
— |
|
Add: Litigation-related charges |
|
1,864 |
|
|
|
— |
|
|
|
1,864 |
|
|
|
— |
|
Add: Expenses related to debt modification |
|
473 |
|
|
|
— |
|
|
|
473 |
|
|
|
— |
|
Add: Restructuring related costs(2) |
|
988 |
|
|
|
717 |
|
|
|
4,179 |
|
|
|
3,621 |
|
Subtract: Income tax effect on non-GAAP items |
|
(3,994 |
) |
|
|
(2,497 |
) |
|
|
(7,099 |
) |
|
|
(4,470 |
) |
Non-GAAP net income |
$ |
2,977 |
|
|
$ |
2,679 |
|
|
$ |
7,505 |
|
|
$ |
3,259 |
|
Non-GAAP basic net income per share |
$ |
0.04 |
|
|
$ |
0.03 |
|
|
$ |
0.10 |
|
|
$ |
0.04 |
|
Non-GAAP diluted net income per share |
$ |
0.04 |
|
|
$ |
0.03 |
|
|
$ |
0.09 |
|
|
$ |
0.04 |
|
Weighted average shares used to compute Non-GAAP basic net income per share |
|
76,527,803 |
|
|
|
80,911,113 |
|
|
|
76,923,824 |
|
|
|
80,786,427 |
|
Weighted average shares used to compute Non-GAAP diluted net |
|
79,291,173 |
|
|
|
83,487,132 |
|
|
|
80,020,336 |
|
|
|
82,994,599 |
|
Net loss margin |
|
(12 |
)% |
|
|
(7 |
)% |
|
|
(10 |
)% |
|
|
(7 |
)% |
Non-GAAP net income margin |
|
4 |
% |
|
|
4 |
% |
|
|
5 |
% |
|
|
2 |
% |
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net loss |
$ |
(9,670 |
) |
|
$ |
(5,230 |
) |
|
$ |
(14,976 |
) |
|
$ |
(10,896 |
) |
Interest expense |
|
9,797 |
|
|
|
9,316 |
|
|
|
19,379 |
|
|
|
18,347 |
|
Taxes |
|
412 |
|
|
|
(1,819 |
) |
|
|
444 |
|
|
|
(3,018 |
) |
Depreciation and amortization |
|
14,573 |
|
|
|
14,424 |
|
|
|
29,096 |
|
|
|
28,955 |
|
Share-based compensation expense |
|
12,500 |
|
|
|
9,367 |
|
|
|
20,436 |
|
|
|
14,556 |
|
Employer payroll taxes on employee stock transactions |
|
508 |
|
|
|
322 |
|
|
|
930 |
|
|
|
448 |
|
Expenses associated with public offering |
|
308 |
|
|
|
— |
|
|
|
1,698 |
|
|
|
— |
|
Litigation-related charges(1) |
|
1,864 |
|
|
|
— |
|
|
|
1,864 |
|
|
|
— |
|
Expenses related to debt modification |
|
473 |
|
|
|
— |
|
|
|
473 |
|
|
|
— |
|
Restructuring related costs(2) |
|
988 |
|
|
|
717 |
|
|
|
4,179 |
|
|
|
3,621 |
|
Deferred revenue reduction from purchase accounting for acquisitions prior to 2022 |
|
— |
|
|
|
19 |
|
|
|
— |
|
|
|
39 |
|
Adjusted EBITDA |
$ |
31,753 |
|
|
$ |
27,116 |
|
|
$ |
63,523 |
|
|
$ |
52,052 |
|
Net loss margin |
|
(12 |
)% |
|
|
(7 |
)% |
|
|
(10 |
)% |
|
|
(7 |
)% |
Adjusted EBITDA margin |
|
40 |
% |
|
|
36 |
% |
|
|
41 |
% |
|
|
34 |
% |
(1) Litigation-related charges pertains to litigation settlements and related legal fees. During the three months ended June 30, 2024, |
|||||||||||||||
(2) Restructuring related costs for the three months ended June 30, 2024 and 2023 are inclusive of net acceleration (forfeitures) of share-based compensation associated with restructuring in the amount of |
|||||||||||||||
Reconciliation from GAAP to Non-GAAP Results (unaudited) (in thousands) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Cost of revenue |
$ |
28,176 |
|
|
$ |
28,494 |
|
|
$ |
54,249 |
|
|
$ |
56,449 |
|
Less: Share-based compensation expense |
|
1,363 |
|
|
|
1,157 |
|
|
|
2,145 |
|
|
|
2,009 |
|
Less: Employer payroll taxes on employee stock transactions |
|
97 |
|
|
|
88 |
|
|
|
144 |
|
|
|
109 |
|
Less: Amortization of developed technology |
|
4,803 |
|
|
|
4,510 |
|
|
|
9,532 |
|
|
|
8,964 |
|
Non-GAAP cost of revenue |
$ |
21,913 |
|
|
$ |
22,739 |
|
|
$ |
42,428 |
|
|
$ |
45,367 |
|
Cost of revenue as a % of revenue |
|
36 |
% |
|
|
38 |
% |
|
|
35 |
% |
|
|
37 |
% |
Non-GAAP cost of revenue as a % of revenue |
|
28 |
% |
|
|
30 |
% |
|
|
27 |
% |
|
|
30 |
% |
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
General and administrative |
$ |
29,237 |
|
|
$ |
24,409 |
|
|
$ |
54,416 |
|
|
$ |
46,964 |
|
Less: Share-based compensation expense |
|
6,792 |
|
|
|
5,231 |
|
|
|
11,185 |
|
|
|
7,494 |
|
Less: Employer payroll taxes on employee stock transactions |
|
206 |
|
|
|
107 |
|
|
|
343 |
|
|
|
158 |
|
Less: Expenses associated with public offering |
|
308 |
|
|
|
— |
|
|
|
1,698 |
|
|
|
— |
|
Less: Litigation-related charges |
|
1,864 |
|
|
|
— |
|
|
|
1,864 |
|
|
|
— |
|
Less: Expenses related to debt modification |
|
473 |
|
|
|
— |
|
|
|
473 |
|
|
|
— |
|
Less: Depreciation expense |
|
363 |
|
|
|
495 |
|
|
|
739 |
|
|
|
990 |
|
Less: Amortization of intangibles |
|
9,407 |
|
|
|
9,419 |
|
|
|
18,825 |
|
|
|
19,001 |
|
Non-GAAP general & administrative |
$ |
9,824 |
|
|
$ |
9,157 |
|
|
$ |
19,289 |
|
|
$ |
19,321 |
|
General and administrative as a % of revenue |
|
37 |
% |
|
|
32 |
% |
|
|
35 |
% |
|
|
31 |
% |
Non-GAAP general and administrative as a % of revenue |
|
12 |
% |
|
|
12 |
% |
|
|
12 |
% |
|
|
13 |
% |
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Research and development |
$ |
9,905 |
|
|
$ |
11,754 |
|
|
$ |
19,390 |
|
|
$ |
25,566 |
|
Less: Share-based compensation expense |
|
2,531 |
|
|
|
1,875 |
|
|
|
4,033 |
|
|
|
3,658 |
|
Less: Employer payroll taxes on employee stock transactions |
|
125 |
|
|
|
97 |
|
|
|
246 |
|
|
|
125 |
|
Non-GAAP research and development |
$ |
7,249 |
|
|
$ |
9,782 |
|
|
$ |
15,111 |
|
|
$ |
21,783 |
|
Research and development as a % of revenue |
|
13 |
% |
|
|
16 |
% |
|
|
12 |
% |
|
|
17 |
% |
Non-GAAP research and development as a % of revenue |
|
9 |
% |
|
|
13 |
% |
|
|
10 |
% |
|
|
14 |
% |
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Sales and marketing |
$ |
11,467 |
|
|
$ |
8,558 |
|
|
$ |
22,003 |
|
|
$ |
16,771 |
|
Less: Share-based compensation expense |
|
1,814 |
|
|
|
1,104 |
|
|
|
3,073 |
|
|
|
1,395 |
|
Less: Employer payroll taxes on employee stock transactions |
|
80 |
|
|
|
30 |
|
|
|
197 |
|
|
|
56 |
|
Non-GAAP sales and marketing |
$ |
9,573 |
|
|
$ |
7,424 |
|
|
$ |
18,733 |
|
|
$ |
15,320 |
|
Sales and marketing as a % of revenue |
|
15 |
% |
|
|
11 |
% |
|
|
14 |
% |
|
|
11 |
% |
Non-GAAP sales and marketing as a % of revenue |
|
12 |
% |
|
|
10 |
% |
|
|
12 |
% |
|
|
10 |
% |
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net cash provided by operating activities |
$ |
14,356 |
|
|
$ |
6,104 |
|
|
$ |
43,394 |
|
|
$ |
34,185 |
|
Less: Capitalized software |
|
1,847 |
|
|
|
2,638 |
|
|
|
3,684 |
|
|
|
4,562 |
|
Less: Capital expenditures |
|
60 |
|
|
|
171 |
|
|
|
152 |
|
|
|
305 |
|
Free cash flow |
$ |
12,449 |
|
|
$ |
3,295 |
|
|
$ |
39,558 |
|
|
$ |
29,318 |
|
Net cash provided by operating actives as a % of revenue |
|
18 |
% |
|
|
8 |
% |
|
|
28 |
% |
|
|
22 |
% |
Free cash flow as a % of revenue |
|
16 |
% |
|
|
4 |
% |
|
|
25 |
% |
|
|
19 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240808766635/en/
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
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