Sign In  |  Register  |  About San Anselmo  |  Contact Us

San Anselmo, CA
September 01, 2020 1:33pm
7-Day Forecast | Traffic
  • Search Hotels in San Anselmo

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

MeridianLink Reports Fourth Quarter and Fiscal Year 2023 Results

Fourth quarter revenue of $74.6 million grows 6% year-over-year driven by lending software solutions revenue of $59.5 million, reflecting growth of 8% year-over-year

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, 2023.

“2023 was a solid year of execution, driven by robust demand and many innovative product and partner expansions,” said Nicolaas Vlok, chief executive officer of MeridianLink. “Our strong fourth quarter performance demonstrates our ability to execute in key strategic areas of the business that accelerate growth while also demonstrating cost discipline, which we see as a great achievement in the face of challenging macroeconomic conditions. I am proud of our team and am confident in our dedication to increasing the value of MeridianLink® One for our customers and stockholders.”

Quarterly Financial Highlights:

  • Revenue of $74.6 million, an increase of 6% year-over-year
  • Lending software solutions revenue of $59.5 million, an increase of 8% year-over-year
  • Operating income of $6.8 million, or 9% of revenue, and non-GAAP operating income of $15.2 million, or 20% of revenue
  • Net loss of $(29.6) million, or (40)% of revenue, which includes a one-time non-cash tax expense of $29.4 million recorded during the quarter for the recognition of a partial valuation allowance on certain deferred tax assets, and adjusted EBITDA of $31.1 million, or 42% of revenue
  • Cash flows from operations of $12.5 million, or 17% of revenue, and free cash flow of $9.6 million, or 13% of revenue

2023 Fiscal Year Financial Highlights:

  • Revenue of $303.6 million, an increase of 5% year-over-year
  • Lending software solutions revenue of $232.2 million, an increase of 11% year-over-year
  • Operating income of $15.5 million, or 5% of revenue, and non-GAAP operating income of $51.1 million, or 17% of revenue
  • Net loss of $(42.5) million, or (14)% of revenue, which includes a one-time non-cash tax expense of $29.4 million recorded during the fiscal year for the recognition of a partial valuation allowance on certain deferred tax assets, and adjusted EBITDA of $113.0 million, or 37% of revenue
  • Cash flows from operations of $68.0 million, or 22% of revenue, and free cash flow of $57.8 million, or 19% of revenue

Business and Operating Highlights:

  • MeridianLink finished the year with strong software bookings, driven by the cross-sell momentum of MeridianLink One, which is evidence of the return on our Go-to-Market investment
  • In the quarter, MeridianLink signed nine existing MeridianLink® Consumer customers on the MeridianLink® Mortgage solution and won multiple high-value platform deals, demonstrating the continued demand for MeridianLink One
  • We expanded our capabilities through a new integration between MeridianLink® Engage and MeridianLink® Collect, allowing customers to automatically identify and optimize the debt wallet of pre-delinquent accounts
  • MeridianLink enhanced its integration with Zest AI, a leader in automated underwriting, to provide multiple custom credit scores for decisioning MeridianLink Consumer loans, which increases cross-sell opportunities for customers
  • We scaled our employment screening and background verification capabilities in our Data Verification Software Solutions by partnering with Workato, a leading Enterprise Automation platform
  • In 2023, we signed more than 40 customers on MeridianLink® Access and MeridianLink® Mortgage Access, our new, highly configurable point-of-sale solutions
  • MeridianLink announced the go-live of A+ Federal Credit Union, who doubled their instant approval rates on consumer loans after adding MeridianLink® Consulting, MeridianLink Engage, and MeridianLink® Insight to MeridianLink One

Business Outlook

Based on information as of today, March 5, 2024, the Company issues first quarter financial guidance and initiates full year 2024 financial guidance as follows:

First Quarter Fiscal 2024:

  • Revenue is expected to be in the range of $75.0 million to $78.0 million
  • Adjusted EBITDA is expected to be in the range of $28.0 million to $31.0 million

Full Year 2024:

  • Revenue is expected to be in the range of $313.0 million to $323.0 million
  • Adjusted EBITDA is expected to be in the range of $123.0 million to $130.0 million

Conference Call Information

MeridianLink will hold a conference call to discuss its fourth quarter results today, March 5, 2024, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). The conference call can be accessed by dialing (888) 259-6580 from North America toll-free or the International number of (416) 764-8624 with Conference ID 63977161. 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 Tuesday, March 12, 2024, by dialing (877) 674-7070 from North America or the International number of (416) 764-8692 with Playback Passcode 977161.

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.

Internal Controls

While we are still completing our assessment of the effectiveness of our internal control over financial reporting as of December 31, 2023, we expect to report a material weakness in internal control over financial reporting in our Annual Report on Form 10-K as of December 31, 2023. We have identified multiple control deficiencies that aggregate to a material weakness related to the design and operating effectiveness of controls over revenue as of December 31, 2023. This was primarily caused by insufficient controls over the set-up of customer contracts for billing and maintaining complete contract support that were not operating effectively. We can confirm that there has been no restatement of prior period financial statements and no change to our previously released financial results as a result of these control deficiencies.

Remediation efforts are currently underway, which include designing and implementing additional review processes, enhanced procedures, and controls, including with respect to customer contracts, as well as system improvements and implementations, staffing and training.

Operational Measures Definitions

We reference bookings, which is an internal operational measure of the business. Bookings is defined as the total of the minimum annual contracted value for newly sold capabilities of our software-as-a-service, or SaaS, products over a given time period, inclusive of any corresponding vendor fees owed to Third Parties.

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, restructuring related costs, 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, restructuring related costs, sponsor and third-party acquisition-related costs, 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 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 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 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: net income (loss) before interest expense, taxes, depreciation and amortization, share-based compensation expense, employer payroll taxes on employee stock transactions, restructuring related costs, sponsor and 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 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, 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, including anticipated benefits and integration of an acquisition, our stock repurchase program, including the execution and amount of repurchases, our restructuring and realignment plans, including expected associated timing, benefits, and costs, a potential material weakness in our internal control over financial reporting, including the sufficiency and timing of our remediation efforts relating thereto, our ability to retain and attract customers and product partners, the benefit to us and our customers of integrations with our product partners, potential losses related to any commercial disputes, 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,

 

2023

 

2022

 

 

 

 

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

80,441

 

 

$

55,780

 

Accounts receivable, net

 

32,412

 

 

 

32,905

 

Prepaid expenses and other current assets

 

11,574

 

 

 

9,447

 

Escrow deposit

 

 

 

 

30,000

 

Total current assets

 

124,427

 

 

 

128,132

 

Property and equipment, net

 

3,337

 

 

 

4,245

 

Right of use assets, net

 

1,140

 

 

 

2,185

 

Intangible assets, net

 

251,060

 

 

 

297,475

 

Deferred tax assets, net

 

 

 

 

13,939

 

Goodwill

 

610,063

 

 

 

608,657

 

Other assets

 

6,224

 

 

 

4,524

 

Total assets

$

996,251

 

 

$

1,059,157

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

4,405

 

 

$

1,249

 

Accrued liabilities

 

30,673

 

 

 

32,500

 

Deferred revenue

 

17,224

 

 

 

16,945

 

Current portion of debt, net of debt issuance costs

 

3,542

 

 

 

3,505

 

Total current liabilities

 

55,844

 

 

 

54,199

 

Debt, net of debt issuance costs

 

420,004

 

 

 

423,404

 

Deferred tax liabilities, net

 

10,823

 

 

 

 

Long-term deferred revenue

 

792

 

 

 

1,141

 

Other long-term liabilities

 

541

 

 

 

1,322

 

Total liabilities

 

488,004

 

 

 

480,066

 

Commitments and contingencies

 

 

 

Stockholders’ Equity

 

 

 

Preferred stock, $0.001 par value; 50,000,000 shares authorized; zero shares issued and outstanding at December 31, 2023 and 2022

 

 

 

 

 

Common stock, $0.001 par value; 600,000,000 shares authorized, 78,447,701 and 80,644,452 shares issued and outstanding at December 31, 2023 and 2022, respectively

 

129

 

 

 

128

 

Additional paid-in capital

 

654,634

 

 

 

621,396

 

Accumulated deficit

 

(146,516

)

 

 

(42,433

)

Total stockholders’ equity

 

508,247

 

 

 

579,091

 

Total liabilities and stockholders’ equity

$

996,251

 

 

$

1,059,157

 

Consolidated Statements of Operations

(unaudited)

(in thousands, except share and per share data)

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

2023

 

2022

 

2023

 

2022

Revenues, net

$

74,579

 

 

$

70,551

 

 

$

303,617

 

 

$

288,046

 

Cost of revenues:

 

 

 

 

 

 

 

Subscription and services

 

20,389

 

 

 

22,486

 

 

 

90,362

 

 

 

90,778

 

Amortization of developed technology

 

4,641

 

 

 

4,266

 

 

 

18,129

 

 

 

15,553

 

Total cost of revenues

 

25,030

 

 

 

26,752

 

 

 

108,491

 

 

 

106,331

 

Gross profit

 

49,549

 

 

 

43,799

 

 

 

195,126

 

 

 

181,715

 

Operating expenses:

 

 

 

 

 

 

 

General and administrative

 

22,481

 

 

 

22,233

 

 

 

92,663

 

 

 

82,649

 

Research and development

 

10,703

 

 

 

12,178

 

 

 

47,517

 

 

 

42,592

 

Sales and marketing

 

9,580

 

 

 

7,139

 

 

 

35,792

 

 

 

23,658

 

Restructuring related costs

 

 

 

 

 

 

 

3,621

 

 

 

 

Acquisition related costs

 

 

 

 

1,679

 

 

 

 

 

 

4,228

 

Total operating expenses

 

42,764

 

 

 

43,229

 

 

 

179,593

 

 

 

153,127

 

Operating income

 

6,785

 

 

 

570

 

 

 

15,533

 

 

 

28,588

 

Other (income) expense, net:

 

 

 

 

 

 

 

Interest and other income

 

(1,433

)

 

 

(357

)

 

 

(4,029

)

 

 

(1,063

)

Interest expense

 

10,031

 

 

 

7,578

 

 

 

38,158

 

 

 

24,227

 

Total other expense, net

 

8,598

 

 

 

7,221

 

 

 

34,129

 

 

 

23,164

 

(Loss) income before income taxes

 

(1,813

)

 

 

(6,651

)

 

 

(18,596

)

 

 

5,424

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

27,761

 

 

 

(1,188

)

 

 

23,943

 

 

 

4,130

 

Net (loss) income

$

(29,574

)

 

$

(5,463

)

 

$

(42,539

)

 

$

1,294

 

 

 

 

 

 

 

 

 

Net (loss) income per share:

 

 

 

 

 

 

 

Basic

$

(0.38

)

 

$

(0.07

)

 

$

(0.53

)

 

$

0.02

 

Diluted

$

(0.38

)

 

$

(0.07

)

 

$

(0.53

)

 

$

0.02

 

Weighted average common stock outstanding:

 

 

 

 

 

 

 

Basic

 

78,767,040

 

 

 

80,749,744

 

 

 

80,349,895

 

 

 

80,454,356

 

Diluted

 

78,767,040

 

 

 

80,749,744

 

 

 

80,349,895

 

 

 

82,403,679

 

Net Revenues by Major Source

(unaudited)

(in thousands)

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

2023

 

2022

 

2023

 

2022

Subscription fees

$

61,999

 

$

60,004

 

$

256,787

 

$

248,864

Professional services

 

10,107

 

 

 

8,250

 

 

 

36,250

 

 

 

29,320

 

Other

 

2,473

 

 

 

2,297

 

 

 

10,580

 

 

 

9,862

 

Total

$

74,579

 

 

$

70,551

 

 

$

303,617

 

 

$

288,046

 

Net Revenues by Solution Type

(unaudited)

(in thousands)

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

2023

 

2022

 

2023

 

2022

Lending software solutions

$

59,471

 

 

$

55,041

 

$

232,199

 

 

$

208,290

Data verification software solutions

 

15,108

 

 

 

15,510

 

 

 

71,418

 

 

 

79,756

 

Total (1)

$

74,579

 

 

$

70,551

 

 

$

303,617

 

 

$

288,046

 

% Growth attributable to:

 

 

 

 

 

 

 

Lending software solutions

 

6

%

 

 

 

 

8

%

 

 

Data verification software

 

(1

)%

 

 

 

 

(3

)%

 

 

Total % growth

 

6

%

 

 

 

 

5

%

 

 

___________

(1) Percent revenue related to the mortgage loan market:

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

2023

 

2022

 

2023

 

2022

Lending software solutions

13

%

 

10

%

 

12

%

 

8

%

Data verification software

 

56

%

 

 

59

%

 

 

59

%

 

 

64

%

Total % revenue related to mortgage loan market

 

22

%

 

 

21

%

 

 

23

%

 

 

23

%

Consolidated Statements of Cash Flows

(unaudited)

(in thousands)

 

 

Year Ended December 31,

 

2023

 

2022

Cash flows from operating activities:

 

 

 

Net (loss) income

$

(42,539

)

 

$

1,294

 

Adjustments to reconcile net (loss) income to net cash provided by operating activities:

 

 

 

Depreciation and amortization

 

57,829

 

 

 

53,982

 

Provision for expected credit losses

 

930

 

 

 

 

Amortization of debt issuance costs

 

1,085

 

 

 

2,760

 

Share-based compensation expense

 

30,550

 

 

 

22,761

 

Deferred income taxes

 

23,630

 

 

 

1,905

 

Loss on disposal of property and equipment

 

 

 

 

678

 

Gain on change in fair value of earnout

 

 

 

 

(162

)

Changes in operating assets and liabilities, net of acquisitions:

 

 

 

Accounts receivable

 

(443

)

 

 

(7,005

)

Prepaid expenses and other assets

 

(3,665

)

 

 

297

 

Accounts payable

 

3,170

 

 

 

(1,564

)

Accrued liabilities

 

(2,514

)

 

 

(2,281

)

Deferred revenue

 

(69

)

 

 

1,922

 

Net cash provided by operating activities

 

67,964

 

 

 

74,587

 

Cash flows from investing activities:

 

 

 

Capitalized software additions

 

(9,250

)

 

 

(8,228

)

Purchases of property and equipment

 

(943

)

 

 

(1,136

)

Return (payment) of escrow deposit

 

30,000

 

 

 

(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

 

 

 

(61,830

)

Acquisition, net of cash and restricted cash acquired – StreetShares, Inc.

 

 

 

 

(23,137

)

Net cash provided by (used in) investing activities

 

20,133

 

 

 

(124,331

)

Cash flows from financing activities:

 

 

 

Repurchases of common stock

 

(61,171

)

 

 

(3,375

)

Proceeds from exercise of stock options

 

2,373

 

 

 

211

 

Proceeds from employee stock purchase plan

 

1,679

 

 

 

1,777

 

Taxes paid related to net share settlement of restricted stock units

 

(1,667

)

 

 

(206

)

Principal payments of debt

 

(4,350

)

 

 

(3,263

)

Payments of deferred offering costs

 

(300

)

 

 

 

Payment of Regulation A+ investor note

 

 

 

 

(3,265

)

Net cash used in financing activities

 

(63,436

)

 

 

(8,121

)

Net increase (decrease) in cash and cash equivalents

 

24,661

 

 

 

(57,865

)

Cash and cash equivalents, beginning of period

 

55,780

 

 

 

113,645

 

Cash and cash equivalents, end of period

$

80,441

 

 

$

55,780

 

Supplemental disclosures of cash flow information:

 

 

 

Cash paid for interest

$

37,018

 

$

21,348

Cash paid for income taxes

 

2,522

 

 

 

1,343

 

Non-cash investing and financing activities:

 

 

 

Shares withheld with respect to net settlement of restricted stock units

 

1,667

 

 

 

206

 

Purchase price allocation adjustment for Beanstalk Networks LLC acquisition

 

274

 

 

 

 

Excise taxes payable included in repurchases of common stock

 

377

 

 

 

 

Share-based compensation expense capitalized to software additions

 

303

 

 

 

311

 

Purchase price allocation adjustment related to income tax effects for StreetShares acquisition

 

1,132

 

 

 

 

Purchases of property and equipment included in accounts payable and accrued liabilities

 

80

 

 

 

72

 

Costs related to shelf registration on Form S-3 included in accrued liabilities

 

75

 

 

 

 

Vesting of restricted stock awards and restricted stock units

 

5

 

 

 

40

 

Regulation A+ investor note assumed in business combination

 

 

 

 

3,265

 

Initial recognition of operating lease liabilities

 

 

 

 

3,791

 

Initial recognition of operating lease right-of-use assets

 

 

 

 

3,047

 

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,

 

2023

 

2022

 

2023

 

2022

Operating income

$

6,785

 

 

$

570

 

 

$

15,533

 

 

$

28,588

 

Add: Share-based compensation expense

 

8,335

 

 

 

6,260

 

 

 

31,213

 

 

 

22,761

 

Add: Employer payroll taxes on employee stock transactions

 

89

 

 

 

20

 

 

 

687

 

 

 

350

 

Add: Restructuring related costs(2)

 

 

 

 

 

 

 

3,621

 

 

 

 

Add: Sponsor and third-party acquisition related costs

 

 

 

 

1,679

 

 

 

 

 

 

4,228

 

Non-GAAP operating income

$

15,209

 

 

$

8,529

 

 

$

51,054

 

 

$

55,927

 

Operating margin

 

9

%

 

 

1

%

 

 

5

%

 

 

10

%

Non-GAAP operating margin

 

20

%

 

 

12

%

 

 

17

%

 

 

19

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

2023

 

2022

 

2023

 

2022

Net (loss) income

$

(29,574

)

 

$

(5,463

)

 

$

(42,539

)

 

$

1,294

 

Add: Share-based compensation expense

 

8,335

 

 

 

6,260

 

 

 

31,213

 

 

 

22,761

 

Add: Employer payroll taxes on employee stock transactions

 

89

 

 

 

20

 

 

 

687

 

 

 

350

 

Add: Restructuring related costs(2)

 

 

 

 

 

 

 

3,621

 

 

 

 

Add: Sponsor and third-party acquisition related costs

 

 

 

 

1,679

 

 

 

 

 

 

4,228

 

Subtract: Income tax effect on non-GAAP items

 

(2,022

)

 

 

(1,910

)

 

 

(8,525

)

 

 

(6,561

)

Non-GAAP net (loss) income

$

(23,172

)

 

$

586

 

 

$

(15,543

)

 

$

22,072

 

Non-GAAP basic net (loss) income per share

$

(0.29

)

 

$

0.01

 

 

$

(0.19

)

 

$

0.27

 

Non-GAAP diluted net (loss) income per share

$

(0.29

)

 

$

0.01

 

 

$

(0.19

)

 

$

0.27

 

Weighted average shares used to compute Non-GAAP basic net (loss) income per share

 

78,767,040

 

 

 

80,749,744

 

 

 

80,349,895

 

 

 

80,454,356

 

Weighted average shares used to compute Non-GAAP diluted net (loss) income per share

 

78,767,040

 

 

 

82,413,712

 

 

 

80,349,895

 

 

 

82,403,679

 

Net (loss) income margin

 

(40

)%

 

 

(8

)%

 

 

(14

)%

 

 

%

Non-GAAP net (loss) income margin

 

(31

)%

 

 

1

%

 

 

(5

)%

 

 

8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

2023

 

2022

 

2023

 

2022

Net (loss) income

$

(29,574

)

 

$

(5,463

)

 

$

(42,539

)

 

$

1,294

 

Interest expense

 

10,031

 

 

 

7,578

 

 

 

38,158

 

 

 

24,227

 

Taxes(1)

 

27,761

 

 

 

(1,188

)

 

 

23,943

 

 

 

4,130

 

Depreciation and amortization

 

14,441

 

 

 

14,234

 

 

 

57,829

 

 

 

53,982

 

Share-based compensation expense

 

8,335

 

 

 

6,260

 

 

 

31,213

 

 

 

22,761

 

Employer payroll taxes on employee stock transactions

 

89

 

 

 

20

 

 

 

687

 

 

 

350

 

Restructuring related costs(2)

 

 

 

 

 

 

 

3,621

 

 

 

 

Acquisition related costs

 

 

 

 

1,679

 

 

 

 

 

 

4,228

 

Deferred revenue reduction from purchase accounting for acquisitions prior to 2022

 

19

 

 

 

51

 

 

 

78

 

 

 

227

 

Adjusted EBITDA

$

31,102

 

 

$

23,171

 

 

$

112,990

 

 

$

111,199

 

Net (loss) income margin

 

(40

)%

 

 

(8

)%

 

 

(14

)%

 

 

%

Adjusted EBITDA margin

 

42

%

 

 

33

%

 

 

37

%

 

 

39

%

 

(1) Taxes reflects a one-time non-cash tax expense of $29.4 million recorded during the quarter ended December 31, 2023, for the recognition of a partial valuation allowance on certain deferred tax assets.

 

(2) Restructuring related costs are inclusive of $663 thousand of stock-based compensation forfeitures recorded associated with restructuring.

Reconciliation from GAAP to Non-GAAP Results

(unaudited)

(in thousands)

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

2023

 

2022

 

2023

 

2022

Cost of revenue

$

25,030

 

 

$

26,752

 

 

$

108,491

 

 

$

106,331

 

Less: Share-based compensation expense

 

930

 

 

 

1,063

 

 

 

3,848

 

 

 

4,630

 

Less: Employer payroll taxes on employee stock transactions

 

21

 

 

 

6

 

 

 

157

 

 

 

127

 

Less: Amortization of developed technology

 

4,641

 

 

 

4,266

 

 

 

18,129

 

 

 

15,553

 

Non-GAAP cost of revenue

$

19,438

 

 

$

21,417

 

 

$

86,357

 

 

$

86,021

 

Cost of revenue as a % of revenue

 

34

%

 

 

38

%

 

 

36

%

 

 

37

%

Non-GAAP cost of revenue as a % of revenue

 

26

%

 

 

30

%

 

 

28

%

 

 

30

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

2023

 

2022

 

2023

 

2022

General and administrative

$

22,481

 

 

$

22,233

 

 

$

92,663

 

 

$

82,649

 

Less: Share-based compensation expense

 

4,519

 

 

 

2,552

 

 

 

16,456

 

 

 

9,499

 

Less: Employer payroll taxes on employee stock transactions

 

30

 

 

 

6

 

 

 

246

 

 

 

81

 

Less: Depreciation expense

 

381

 

 

 

599

 

 

 

1,860

 

 

 

2,319

 

Less: Amortization of intangibles

 

9,419

 

 

 

9,369

 

 

 

37,840

 

 

 

36,110

 

Non-GAAP general & administrative

$

8,132

 

 

$

9,707

 

 

$

36,261

 

 

$

34,640

 

General and administrative as a % of revenue

 

30

%

 

 

32

%

 

 

31

%

 

 

29

%

Non-GAAP general and administrative as a % of revenue

 

11

%

 

 

14

%

 

 

12

%

 

 

12

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

2023

 

2022

 

2023

 

2022

Research and development

$

10,703

 

 

$

12,178

 

 

$

47,517

 

 

$

42,592

 

Less: Share-based compensation expense

 

1,692

 

 

 

2,014

 

 

 

7,060

 

 

 

6,472

 

Less: Employer payroll taxes on employee stock transactions

 

26

 

 

 

6

 

 

 

189

 

 

 

102

 

Non-GAAP research and development

$

8,985

 

 

$

10,158

 

 

$

40,268

 

 

$

36,018

 

Research and development as a % of revenue

 

14

%

 

 

17

%

 

 

16

%

 

 

15

%

Non-GAAP research and development as a % of revenue

 

12

%

 

 

14

%

 

 

13

%

 

 

13

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

2023

 

2022

 

2023

 

2022

Sales and marketing

$

9,580

 

 

$

7,139

 

 

$

35,792

 

 

$

23,658

 

Less: Share-based compensation expense

 

1,194

 

 

 

631

 

 

 

3,849

 

 

 

2,160

 

Less: Employer payroll taxes on employee stock transactions

 

12

 

 

 

2

 

 

 

95

 

 

 

40

 

Non-GAAP sales and marketing

$

8,374

 

 

$

6,506

 

 

$

31,848

 

 

$

21,458

 

Sales and marketing as a % of revenue

 

13

%

 

 

10

%

 

 

12

%

 

 

8

%

Non-GAAP sales and marketing as a % of revenue

 

11

%

 

 

9

%

 

 

10

%

 

 

7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

2023

 

2022

 

2023

 

2022

Net cash provided by operating activities

$

12,478

 

 

$

7,352

 

 

$

67,964

 

 

$

74,587

 

Less: Capitalized software

 

2,246

 

 

 

1,905

 

 

 

9,250

 

 

 

8,228

 

Less: Capital expenditures

 

596

 

 

 

247

 

 

 

943

 

 

 

1,136

 

Free cash flow

$

9,636

 

 

$

5,200

 

 

$

57,771

 

 

$

65,223

 

 

Contacts

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 SanAnselmo.com & California Media Partners, LLC. All rights reserved.