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MeridianLink® Reports Fourth Quarter and Fiscal Year 2022 Results

Fourth quarter revenue of $70.6 million grows 10% 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, 2022.

“Our solid fourth quarter performance highlights the strength of our multi-product platform, MeridianLink® One,” said Nicolaas Vlok, chief executive officer of MeridianLink. “More financial institutions are taking advantage of bundling MeridianLink offerings to create seamless digital lending experiences. With that, our revenue grew 10% year-over-year to $70.6 million with 33% adjusted EBITDA margins. Lending software solutions revenue grew 26% year-over-year to $55.0 million, now accounting for 78% of total revenue. I’d like to thank the team for their ongoing dedication and innovation.”

Quarterly Financial Highlights:

  • Revenue of $70.6 million, an increase of 10% year-over-year
  • Operating income of $0.6 million, or 1% of revenue and Non-GAAP operating profit of $8.5 million, or 12% of revenue
  • Net loss of $(5.5) million, or (8)% of revenue, and Adjusted EBITDA of $23.2 million, or 33% of revenue
  • Cash flow from operations of $7.4 million and free cash flow of $5.2 million

2022 Fiscal Year Financial Highlights:

  • Revenue of $288.0 million, an increase of 8% year-over-year
  • Operating income of $28.6 million, or 10% of revenue and Non-GAAP operating profit of $55.9 million, or 19% of revenue
  • Net income of $1.3 million, or 0.4% of revenue, and Adjusted EBITDA of $111.2 million, or 39% of revenue
  • Cash flow from operations of $74.6 million and free cash flow of $65.2 million

Business and Operating Highlights:

  • MeridianLink finished the quarter with record software bookings, both for Q4 and in company history.
  • In the quarter, MeridianLink signed ten existing MeridianLink® Consumer customers on the MeridianLink® Mortgage solution, demonstrating the powerful cross-sell capabilities of the MeridianLink® One platform.
  • In support of our strategic investment to accelerate services, fuel Go-to-Market, and enhance product innovation, we restructured our operations team and cost profile to serve more customers with greater efficiency in 2023.
  • The Company completed enhancements to our marketing automation solution, MeridianLink® Engage. These new features save time in launching targeted, personalized marketing campaigns, often resulting in triple-digit ROI for the customer.
  • Building on the innovative functionality acquired through the StreetShares® Atlas Platform®, the Company completed our business lending offering, MeridianLink® Business, to optimize the business lending process in a digital environment.
  • Through the Company’s extensive Partner Marketplace, we announced new integrations to partners such as Equifax®, Ferretly, and FirstClose, which help differentiate our lending and data verification customers in the market.
  • MeridianLink secured another strong roster of new logo customers as a result of our lending capabilities that best serve customers in our mid-market sweet spot, enabling a more frictionless lending process and empowering customer growth.

Business Outlook

Based on information as of today, March 1, 2023, the Company issues first quarter financial guidance and initiates full year 2023 financial guidance as follows:

First Quarter Fiscal 2023:

  • Revenue is expected to be in the range of $72.0 million to $75.0 million
  • Adjusted EBITDA is expected to be in the range of $23.0 million to $26.0 million

Full Year 2023:

  • Revenue is expected to be in the range of $304.0 million to $310.0 million
  • Adjusted EBITDA is expected to be in the range of $109.0 million to $115.0 million

Conference Call Information

MeridianLink will hold a conference call to discuss our fourth quarter and fiscal year results today, March 1, 2023, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). The conference call can be accessed by dialing (888) 396-8049 from North America toll-free or the Participant Local number of (416) 764-8646 with Conference ID 05813207. 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 approximately 3:00 p.m. Pacific Time (5:00 p.m. Eastern Time) on Wednesday, March 8, 2023, at (877) 674-7070 from North America or (416) 764-8692 as a Participant Local with Playback Passcode 813207.

About MeridianLink

MeridianLink® (NYSE: MLNK), headquartered in Costa Mesa, California, powers digital lending and account opening for financial institutions and provides data verification solutions for consumer reporting agencies. MeridianLink’s scalable, cloud-based platforms help customers build deeper relationships with consumers through data-driven, personalized experiences across the entire lending life cycle.

MeridianLink enables customers to accelerate revenue growth, reduce risk, and exceed consumer expectations through seamless digital experiences. Its partner marketplace supports hundreds of integrations for tailored innovation. For more than 20 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 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:

  • Adjusted EBITDA: net income (loss) before interest expense, taxes, depreciation and amortization, share-based compensation expense, employer payroll taxes on employee stock transactions, certain expenses associated with our IPO, sponsor and third-party acquisition related costs, losses resulting from early repayment of debt, lease termination charges, and deferred revenue reductions from purchase accounting for acquisitions prior to 2022
  • Non-GAAP operating income (loss): GAAP operating income (loss), excluding the impact of share-based compensation, employer payroll taxes on employee stock transactions, 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, and sponsor and third-party acquisition-related costs
  • 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
  • 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 conditions, our strategic initiatives, including anticipated benefits and integration of an acquisition, our restructuring plan, including expected associated timing, benefits, and costs, the potential benefits of our migration to the public cloud, our stock repurchase program, including the execution and amount of repurchases, our development or delivery of new or enhanced solutions, 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

(in thousands, except share and per share data)

 

As of

 

December 31,

2022

 

December 31,

2021

 

 

 

 

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

55,780

 

 

$

113,645

 

Accounts receivable, net of allowance for doubtful accounts

 

32,905

 

 

 

24,913

 

Prepaid expenses and other current assets

 

9,447

 

 

 

9,398

 

Escrow deposit

 

30,000

 

 

 

 

Total current assets

 

128,132

 

 

 

147,956

 

Property and equipment, net

 

4,245

 

 

 

5,989

 

Right of use assets

 

2,185

 

 

 

 

Intangible assets, net

 

297,475

 

 

 

298,597

 

Deferred tax assets, net

 

13,939

 

 

 

4,286

 

Goodwill

 

608,657

 

 

 

564,799

 

Other assets

 

4,524

 

 

 

4,266

 

Total assets

$

1,059,157

 

 

$

1,025,893

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

1,249

 

 

$

2,335

 

Accrued liabilities

 

32,500

 

 

 

24,667

 

Deferred revenue

 

16,945

 

 

 

14,707

 

Current portion of long-term debt, net of debt issuance costs

 

3,505

 

 

 

2,139

 

Total current liabilities

 

54,199

 

 

 

43,848

 

Long-term debt, net of debt issuance costs

 

423,404

 

 

 

425,371

 

Long-term deferred revenue

 

1,141

 

 

 

 

Deferred rent

 

 

 

 

396

 

Other long-term liabilities

 

1,322

 

 

 

 

Total liabilities

 

480,066

 

 

 

469,615

 

Commitments and contingencies

 

 

 

Stockholders’ Equity

 

 

 

Preferred stock, $0.001 par value; 50,000,000 shares authorized; zero shares issued and outstanding at December 31, 2022 and 2021

 

 

 

 

 

Common stock, $0.001 par value; 600,000,000 shares authorized, 80,644,452 and 79,734,984 shares issued and outstanding at December 31, 2022 and 2021, respectively

 

128

 

 

 

88

 

Additional paid-in capital

 

621,396

 

 

 

596,542

 

Accumulated deficit

 

(42,433

)

 

 

(40,352

)

Total stockholders’ equity

 

579,091

 

 

 

556,278

 

Total liabilities and stockholders’ equity

$

1,059,157

 

 

$

1,025,893

 

 

Condensed Consolidated Statements of Operations

(in thousands, except share/unit and per share/unit data)

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Revenues, net

$

70,551

 

 

$

64,024

 

 

$

288,046

 

 

$

267,676

 

Cost of revenues:

 

 

 

 

 

 

 

Subscription and services

 

22,486

 

 

 

19,025

 

 

 

90,778

 

 

 

77,103

 

Amortization of developed technology

 

4,266

 

 

 

3,329

 

 

 

15,553

 

 

 

12,519

 

Total cost of revenues

 

26,752

 

 

 

22,354

 

 

 

106,331

 

 

 

89,622

 

Gross profit

 

43,799

 

 

 

41,670

 

 

 

181,715

 

 

 

178,054

 

Operating expenses:

 

 

 

 

 

 

 

General and administrative

 

22,233

 

 

 

21,057

 

 

 

82,649

 

 

 

85,160

 

Research and development

 

12,178

 

 

 

8,529

 

 

 

42,592

 

 

 

36,336

 

Sales and marketing

 

7,139

 

 

 

4,305

 

 

 

23,658

 

 

 

18,122

 

Acquisition related costs

 

1,679

 

 

 

 

 

 

4,228

 

 

 

781

 

Total operating expenses

 

43,229

 

 

 

33,891

 

 

 

153,127

 

 

 

140,399

 

Operating income

 

570

 

 

 

7,779

 

 

 

28,588

 

 

 

37,655

 

Other (income) expense, net:

 

 

 

 

 

 

 

Other income

 

(357

)

 

 

(10

)

 

 

(1,063

)

 

 

(49

)

Interest expense, net

 

7,578

 

 

 

5,542

 

 

 

24,227

 

 

 

32,615

 

Loss on debt repayment and extinguishment

 

 

 

 

5,593

 

 

 

 

 

 

9,944

 

Total other expense, net

 

7,221

 

 

 

11,125

 

 

 

23,164

 

 

 

42,510

 

Income (loss) before provision for income taxes

 

(6,651

)

 

 

(3,346

)

 

 

5,424

 

 

 

(4,855

)

 

 

 

 

 

 

 

 

Provision for (benefit from) income taxes

 

(1,188

)

 

 

(133

)

 

 

4,130

 

 

 

5,141

 

Net income (loss)

 

(5,463

)

 

 

(3,213

)

 

 

1,294

 

 

 

(9,996

)

 

 

 

 

 

 

 

 

Class A preferred return

 

 

 

 

 

 

 

 

 

 

(20,944

)

Net income (loss) attributable to common stockholders

$

(5,463

)

 

$

(3,213

)

 

$

1,294

 

 

$

(30,940

)

 

 

 

 

 

 

 

 

Net income (loss) per share:

 

 

 

 

 

 

 

Basic

$

(0.07

)

 

$

(0.04

)

 

$

0.02

 

 

$

(0.48

)

Diluted

 

(0.07

)

 

 

(0.04

)

 

 

0.02

 

 

 

(0.48

)

Weighted average common stock outstanding:

 

 

 

 

 

 

 

Basic

 

80,749,744

 

 

 

79,596,418

 

 

 

80,454,356

 

 

 

63,813,770

 

Diluted

 

80,749,744

 

 

 

79,596,418

 

 

 

82,403,679

 

 

 

63,813,770

 

 

Net Revenues by Major Source

(unaudited)

(in thousands)

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

2022

 

2021

 

2022

 

2021

Subscription fees

$

60,004

 

$

55,757

 

$

248,864

 

$

235,489

Professional services

 

8,250

 

 

5,895

 

 

29,320

 

 

22,707

Other

 

2,297

 

 

2,372

 

 

9,862

 

 

9,480

Total

$

70,551

 

$

64,024

 

$

288,046

 

$

267,676

 

Net Revenues by Solution Type

(unaudited)

(in thousands)

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Lending software solutions

$

55,041

 

 

$

43,759

 

 

$

208,290

 

 

$

176,793

 

Data verification software solutions

 

15,510

 

 

 

20,265

 

 

 

79,756

 

 

 

90,883

 

Total (1)

$

70,551

 

 

$

64,024

 

 

$

288,046

 

 

$

267,676

 

% Growth attributable to:

 

 

 

 

 

 

 

Lending software solutions

 

18

%

 

 

 

 

12

%

 

 

Data verification software

 

(7

)%

 

 

 

 

(4

)%

 

 

Total % growth

 

10

%

 

 

 

 

8

%

 

 

 

 

 

 

 

 

 

 

(1) % Revenue related to mortgage loan market:

 

 

 

 

 

 

 

Lending software solutions

 

10

%

 

 

9

%

 

 

8

%

 

 

9

%

Data verification software

 

59

%

 

 

68

%

 

 

64

%

 

 

70

%

Total % revenue related to mortgage loan market

 

21

%

 

 

27

%

 

 

23

%

 

 

30

%

 

Condensed Consolidated Statements of Cash Flows

(in thousands)

 

 

Year Ended December 31,

 

 

2022

 

 

 

2021

 

Cash flows from operating activities:

 

 

 

Net income (loss)

$

1,294

 

 

$

(9,996

)

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

 

 

 

Depreciation and amortization

 

53,982

 

 

 

50,453

 

Amortization of debt issuance costs

 

2,760

 

 

 

3,413

 

Share-based compensation expense

 

22,761

 

 

 

30,736

 

Loss on disposal of fixed assets

 

678

 

 

 

524

 

Loss on sublease liability

 

 

 

 

405

 

Loss on debt repayment and extinguishment

 

 

 

 

9,944

 

Gain on change in fair value of earnout

 

(162

)

 

 

 

Other adjustments

 

 

 

 

(18

)

Deferred income taxes

 

1,905

 

 

 

4,926

 

Changes in operating assets and liabilities, net of acquisitions:

 

 

 

Accounts receivable

 

(7,005

)

 

 

1,619

 

Prepaid expenses and other assets

 

297

 

 

 

(5,726

)

Accounts payable

 

(1,564

)

 

 

117

 

Accrued liabilities

 

(2,281

)

 

 

(302

)

Deferred revenue

 

1,922

 

 

 

3,834

 

Deferred rent

 

 

 

 

(94

)

Net cash provided by operating activities

 

74,587

 

 

 

89,835

 

Cash flows from investing activities:

 

 

 

Acquisition, net of cash acquired – Beanstalk Networks L.L.C.

 

(61,830

)

 

 

 

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

 

(23,137

)

 

 

 

Acquisition, net of cash and restricted cash acquired – Saylent Technologies, Inc.

 

 

 

 

(35,945

)

Acquisition, net of cash acquired – TazWorks, LLC

 

 

 

 

(84,605

)

Escrow deposit

 

(30,000

)

 

 

 

Capitalized software additions

 

(8,228

)

 

 

(4,906

)

Purchases of property and equipment

 

(1,136

)

 

 

(843

)

Net cash used in investing activities

 

(124,331

)

 

 

(126,299

)

Cash flows from financing activities:

 

 

 

Repurchases of common stock

 

(3,375

)

 

 

 

Repurchases of Class A Units

 

 

 

 

(54

)

Repurchases of Class B Units

 

 

 

 

(1,887

)

Proceeds from initial public offering, net of underwriters’ discounts and commissions

 

 

 

 

247,307

 

Proceeds from exercise of stock options

 

211

 

 

 

1,714

 

Payment due to effect of corporate conversion

 

 

 

 

(6

)

Proceeds from employee stock purchase plan

 

1,777

 

 

 

 

Taxes paid related to net share settlement of RSUs

 

(206

)

 

 

 

Proceeds from long-term debt

 

 

 

 

535,000

 

Principal payments of long-term debt

 

(3,263

)

 

 

(631,255

)

Payment of Regulation A+ investor note

 

(3,265

)

 

 

 

Payments of debt issuance costs

 

 

 

 

(7,207

)

Payments of Class A cumulative preferred return

 

 

 

 

(12

)

Payments of deferred offering costs

 

 

 

 

(4,790

)

Payment to sellers of Saylent Technologies, Inc.

 

 

 

 

(775

)

Payment to sellers of Teledata Communications, Inc

 

 

 

 

(2,142

)

Holdback payment to sellers of MeridianLink

 

 

 

 

(25,665

)

Net cash (used in) provided by financing activities

 

(8,121

)

 

 

110,228

 

Net (decrease) increase in cash, cash equivalents and restricted cash

 

(57,865

)

 

 

73,764

 

Cash, cash equivalents and restricted cash, beginning of period

 

113,645

 

 

 

39,881

 

Cash, cash equivalents and restricted cash, end of period

$

55,780

 

 

$

113,645

 

 

Condensed Consolidated Statements of Cash Flows

(in thousands)

 

Year Ended December 31,

 

2022

 

2021

Supplemental disclosures of cash flow information:

 

 

 

Cash paid for interest

$

21,348

 

$

29,242

Cash paid for income taxes

 

1,343

 

 

306

Non-cash investing and financing activities:

 

 

 

Regulation A+ investor note assumed in business combination

$

3,265

 

$

Initial recognition of operating lease liability

 

3,791

 

 

Initial recognition of operating lease right-of-use asset

 

3,047

 

 

Share-based compensation expense capitalized to software additions

 

311

 

 

111

Shares withheld with respect to net settlement of RSUs

 

206

 

 

Effect of corporate conversion

 

 

 

319,868

Related party receivable net against holdback payment to prior shareholders

 

 

 

4,335

Deferred offering costs in prepaid expenses and other current assets as of December 31, 2020 offsetting payments of deferred offering costs

 

 

 

423

Vesting of RSAs and RSUs

 

40

 

 

94

Debt issuance costs included in accrued expenses

 

 

 

90

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

 

72

 

 

81

 

Reconciliation from GAAP to Non-GAAP Results

(unaudited)

(in thousands, except share/unit and per share/unit data)

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

 

 

 

 

 

 

 

Operating income

$

570

 

 

$

7,779

 

 

$

28,588

 

 

$

37,655

 

Add: Share-based compensation expense

 

6,260

 

 

 

3,901

 

 

 

22,761

 

 

 

30,736

 

Add: Employer payroll taxes on employee stock transactions

 

20

 

 

 

16

 

 

 

350

 

 

 

95

 

Add: Sponsor and third-party acquisition related costs

 

1,679

 

 

 

25

 

 

 

4,228

 

 

 

2,348

 

Non-GAAP operating income

$

8,529

 

 

$

11,721

 

 

$

55,927

 

 

$

70,834

 

Non-GAAP operating margin

 

12

%

 

 

18

%

 

 

19

%

 

 

26

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

 

 

 

 

 

 

 

Net income (loss)

$

(5,463

)

 

$

(3,213

)

 

$

1,294

 

 

$

(9,996

)

Add: Share-based compensation expense

 

6,260

 

 

 

3,901

 

 

 

22,761

 

 

 

30,736

 

Add: Employer payroll taxes on employee stock transactions

 

20

 

 

 

16

 

 

 

350

 

 

 

95

 

Add: Sponsor and third-party acquisition related costs

 

1,679

 

 

 

25

 

 

 

4,228

 

 

 

2,348

 

Non-GAAP net income

$

2,496

 

 

$

729

 

 

$

28,633

 

 

$

23,183

 

Non-GAAP basic net income per share

$

0.03

 

 

$

0.01

 

 

$

0.36

 

 

$

0.36

 

Non-GAAP diluted net income per share

 

0.03

 

 

 

0.01

 

 

 

0.35

 

 

 

0.35

 

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

 

80,749,744

 

 

 

79,596,418

 

 

 

80,454,356

 

 

 

63,813,770

 

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

 

82,413,712

 

 

 

82,358,079

 

 

 

82,403,679

 

 

 

67,130,479

 

Non-GAAP net income margin

 

4

%

 

 

1

%

 

 

10

%

 

 

9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

 

 

 

 

 

 

 

Net income (loss)

$

(5,463

)

 

$

(3,213

)

 

$

1,294

 

 

$

(9,996

)

Interest expense

 

7,578

 

 

 

5,542

 

 

 

24,227

 

 

 

32,615

 

Taxes

 

(1,188

)

 

 

(133

)

 

 

4,130

 

 

 

5,141

 

Depreciation and amortization

 

14,234

 

 

 

12,799

 

 

 

53,982

 

 

 

50,453

 

Share-based compensation expense

 

6,260

 

 

 

3,901

 

 

 

22,761

 

 

 

30,736

 

Employer payroll taxes on employee stock transactions

 

20

 

 

 

16

 

 

 

350

 

 

 

95

 

Expenses associated with IPO

 

 

 

 

 

 

 

 

 

 

424

 

Sponsor and third-party acquisition related costs

 

1,679

 

 

 

25

 

 

 

4,228

 

 

 

2,348

 

Loss on debt prepayment

 

 

 

 

5,593

 

 

 

 

 

 

9,944

 

Deferred revenue reduction from purchase accounting for acquisitions prior to 2022

 

51

 

 

 

109

 

 

 

227

 

 

 

733

 

Lease termination charges

 

 

 

 

 

 

 

 

 

 

879

 

Adjusted EBITDA

$

23,171

 

 

$

24,639

 

 

$

111,199

 

 

$

123,372

 

Adjusted EBITDA margin

 

33

%

 

 

38

%

 

 

39

%

 

 

46

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

 

 

 

 

 

 

 

Cost of revenue

$

26,752

 

 

$

22,354

 

 

$

106,331

 

 

$

89,622

 

Less: Share-based compensation expense

 

1,063

 

 

 

1,017

 

 

 

4,630

 

 

 

6,478

 

Less: Employer payroll taxes on employee stock transactions

 

6

 

 

 

 

 

 

127

 

 

 

3

 

Less: Amortization of developed technology

 

4,266

 

 

 

3,329

 

 

 

15,553

 

 

 

12,519

 

Non-GAAP cost of revenue

$

21,417

 

 

$

18,008

 

 

$

86,021

 

 

$

70,622

 

As a % of revenue

 

30

%

 

 

28

%

 

 

30

%

 

 

26

%

 

 

 

 

 

 

 

 

Reconciliation from GAAP to Non-GAAP Results

(unaudited)

(in thousands)

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

 

 

 

 

 

 

 

General & administrative

$

22,233

 

 

$

21,057

 

 

$

82,649

 

 

$

85,160

 

Less: Share-based compensation expense

 

2,552

 

 

 

1,694

 

 

 

9,499

 

 

 

14,558

 

Less: Employer payroll taxes on employee stock transactions

 

6

 

 

 

14

 

 

 

81

 

 

 

73

 

Less: Depreciation expense

 

599

 

 

 

560

 

 

 

2,319

 

 

 

2,303

 

Less: Amortization of intangibles

 

9,369

 

 

 

8,910

 

 

 

36,110

 

 

 

35,631

 

Non-GAAP general & administrative

$

9,707

 

 

$

9,879

 

 

$

34,640

 

 

$

32,595

 

As a % of revenue

 

14

%

 

 

15

%

 

 

12

%

 

 

12

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

 

 

 

 

 

 

 

Research and development

$

12,178

 

 

$

8,529

 

 

$

42,592

 

 

$

36,336

 

Less: Share-based compensation expense

 

2,014

 

 

 

1,095

 

 

 

6,472

 

 

 

7,453

 

Less: Employer payroll taxes on employee stock transactions

 

6

 

 

 

 

 

 

102

 

 

 

8

 

Non-GAAP research and development

$

10,158

 

 

$

7,434

 

 

$

36,018

 

 

$

28,875

 

As a % of revenue

 

14

%

 

 

12

%

 

 

13

%

 

 

11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

 

 

 

 

 

 

 

Sales and marketing

$

7,139

 

 

$

4,305

 

 

$

23,658

 

 

$

18,122

 

Less: Share-based compensation expense

 

631

 

 

 

95

 

 

 

2,160

 

 

 

2,247

 

Less: Employer payroll taxes on employee stock transactions

 

2

 

 

 

2

 

 

 

40

 

 

 

11

 

Non-GAAP sales and marketing

$

6,506

 

 

$

4,208

 

 

$

21,458

 

 

$

15,864

 

As a % of revenue

 

9

%

 

 

7

%

 

 

7

%

 

 

6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

$

7,352

 

 

$

20,823

 

 

$

74,587

 

 

$

89,835

 

Less: Capitalized software

 

1,905

 

 

 

1,316

 

 

 

8,228

 

 

 

4,906

 

Less: Capital expenditures

 

247

 

 

 

151

 

 

 

1,136

 

 

 

843

 

Free cash flow

$

5,200

 

 

$

19,356

 

 

$

65,223

 

 

$

84,086

 

 

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