First quarter revenue of $77.8 million grows 1%
year-over-year driven by lending software solutions revenue of
$60.9 million, reflecting growth of 5% 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 first
quarter ended March 31, 2024.
“Our solid first quarter results highlight the team’s ability to
continue executing on our strategy to empower customers to out
compete with MeridianLink® One,” said Nicolaas Vlok, chief
executive officer of MeridianLink®. “In the face of challenging
lending conditions, we are well-positioned to capitalize on the
opportunities that lie ahead with the solid foundation we have
strategically invested in, bolstered by a healthy balance sheet and
sound capital allocation strategy.”
Quarterly Financial Highlights:
- Revenue of $77.8 million, an increase of 1% year-over-year
- Lending software solutions revenue of $60.9 million, an
increase of 5% year-over-year
- Operating income of $3.4 million, or 4% of revenue, and
non-GAAP operating income of $16.3 million, or 21% of revenue
- Net loss of $(5.3) million, or (7)% of revenue, and adjusted
EBITDA of $31.8 million, or 41% of revenue
- Cash flows from operations of $29.0 million, or 37% of revenue,
and free cash flow of $27.1 million, or 35% of revenue
Business and Operating Highlights:
- MeridianLink welcomed Larry Katz as its new chief financial
officer, bringing extensive financial expertise and strategic
leadership to help drive the Company’s financial performance and
create value for customers and stockholders.
- We generated solid demand for the MeridianLink One platform,
enabling new and existing customers to better meet the evolving
needs of clients in both consumer and mortgage lending and capture
a greater share of their debt wallet.
- MeridianLink announced Space Coast Credit Union’s successful
go-live on its Advanced Decisioning capabilities, resulting in the
instant decisioning of 13% more loans overall, and a 53% increase
in the decisioning of applications for credit tiers over 660.
- To promote data-driven decision-making, we launched
MeridianLink® Insight Lite, our new interactive data analytics and
reporting tool that enhances reporting functionality for
MeridianLink® Consumer and Opening customers.
Business Outlook
Based on information as of today, May 7, 2024, the Company
issues second quarter financial guidance and updates full year 2024
financial guidance as follows:
Second Quarter Fiscal 2024:
- Revenue is expected to be in the range of $76.0 million to
$79.0 million
- Adjusted EBITDA is expected to be in the range of $29.0 million
to $32.0 million
Full Year 2024:
- Revenue is expected to be in the range of $311.0 million to
$319.0 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 first
quarter results today, May 7, 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 North America toll-free or the International
number of (289) 819-1520 with Conference ID 16153. 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, May
14, 2024, by dialing (888) 660-6264 from North America or the
International number of (289) 819-1325 with Playback Passcode
16153.
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 initial public offering
and secondary offering, 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, expenses associated with our initial public offering
and secondary offering, 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, expenses associated with our initial
public offering and secondary offering, 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, expenses associated with our initial public offering
and secondary offering, 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 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
March 31, 2024
December 31, 2023
Assets
Current assets:
Cash and cash equivalents
$
62,285
$
80,441
Accounts receivable, net
36,623
32,412
Prepaid expenses and other current
assets
12,238
11,574
Total current assets
111,146
124,427
Property and equipment, net
3,011
3,337
Right of use assets, net
967
1,140
Intangible assets, net
238,818
251,060
Goodwill
610,063
610,063
Other assets
6,495
6,224
Total assets
$
970,500
$
996,251
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
4,135
$
4,405
Accrued liabilities
28,369
30,673
Deferred revenue
37,683
17,224
Current portion of debt, net of debt
issuance costs
3,543
3,542
Total current liabilities
73,730
55,844
Debt, net of debt issuance costs
419,102
420,004
Deferred tax liabilities, net
10,639
10,823
Long-term deferred revenue
257
792
Other long-term liabilities
439
541
Total liabilities
$
504,167
$
488,004
Commitments and contingencies
Stockholders’ Equity:
Preferred stock, $0.001 par value;
50,000,000 shares authorized; zero shares issued and outstanding at
March 31, 2024 and December 31, 2023
—
—
Common stock, $0.001 par value;
600,000,000 shares authorized, 76,338,829 and 78,447,701 shares
issued and outstanding at March 31, 2024 and December 31, 2023,
respectively
127
129
Additional paid-in capital
662,403
654,634
Accumulated deficit
(196,197
)
(146,516
)
Total stockholders’ equity
466,333
508,247
Total liabilities and stockholders’
equity
$
970,500
$
996,251
Condensed Consolidated
Statements of Operations
(unaudited)
(in thousands, except share and
per share data)
Three Months Ended March
31,
2024
2023
Revenues, net
$
77,816
$
77,135
Cost of revenues:
Subscription and services
21,344
23,501
Amortization of developed technology
4,729
4,454
Total cost of revenues
26,073
27,955
Gross profit
51,743
49,180
Operating expenses:
General and administrative
25,179
22,555
Research and development
9,485
13,812
Sales and marketing
10,536
8,213
Restructuring related costs
3,191
2,904
Total operating expenses
48,391
47,484
Operating income
3,352
1,696
Other (income) expense, net:
Interest and other income
(956
)
(470
)
Interest expense
9,582
9,031
Total other expense, net
8,626
8,561
Loss before income taxes
(5,274
)
(6,865
)
Provision for (benefit from) income
taxes
32
(1,199
)
Net loss
$
(5,306
)
$
(5,666
)
Net loss per share:
Basic
$
(0.07
)
$
(0.07
)
Diluted
$
(0.07
)
$
(0.07
)
Weighted average common stock
outstanding:
Basic
77,335,072
80,659,978
Diluted
77,335,072
80,659,978
Net Revenues by Major
Source
(unaudited)
(in thousands)
Three Months Ended March
31,
2024
2023
Subscription fees
$
65,912
$
66,405
Professional services
9,010
8,435
Other
2,894
2,295
Total
$
77,816
$
77,135
Net Revenues by Solution
Type
(unaudited)
(in thousands)
Three Months Ended March
31,
2024
2023
Lending software solutions
$
60,903
$
58,001
Data verification software solutions
16,913
19,134
Total
$
77,816
$
77,135
% Growth attributable to:
Lending software solutions
4
%
Data verification software
(3
)%
Total % growth
1
%
___________
Percent Revenue Related to the
Mortgage Loan Market
(unaudited)
Three Months Ended March
31,
2024
2023
Lending software solutions
11 %
11 %
Data verification software
58 %
61 %
Total % revenue related to mortgage loan
market
21 %
24 %
Condensed Consolidated
Statements of Cash Flows
(unaudited)
(in thousands)
Three Months Ended March
31,
2024
2023
Cash flows from operating
activities:
Net loss
$
(5,306
)
$
(5,666
)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization
14,524
14,531
Provision for expected credit losses
234
532
Amortization of debt issuance costs
212
235
Share-based compensation expense
7,803
4,891
Deferred income taxes
(184
)
(1,198
)
Loss on disposal of property and
equipment
6
—
Changes in operating assets and
liabilities, net of acquisitions:
Accounts receivable
(4,444
)
(5,028
)
Prepaid expenses and other assets
(960
)
(1,636
)
Accounts payable
(270
)
2,717
Accrued liabilities
(2,501
)
1,706
Deferred revenue
19,924
16,997
Net cash provided by operating
activities
29,038
28,081
Cash flows from investing
activities:
Capitalized software additions
(1,837
)
(1,924
)
Purchases of property and equipment
(92
)
(134
)
Net cash used in investing activities
(1,929
)
(2,058
)
Cash flows from financing
activities:
Repurchases of common stock
(44,000
)
(3,490
)
Proceeds from exercise of stock
options
191
594
Taxes paid related to net share settlement
of restricted stock units
(294
)
(24
)
Principal payments of debt
(1,088
)
(1,087
)
Payments of deferred offering costs
(74
)
—
Net cash used in financing activities
(45,265
)
(4,007
)
Net (decrease) increase in cash and cash
equivalents
(18,156
)
22,016
Cash and cash equivalents, beginning of
period
80,441
55,780
Cash and cash equivalents, end of
period
$
62,285
$
77,796
Supplemental disclosures of cash flow
information:
Cash paid for interest
$
9,365
$
9,019
Cash paid for income taxes
32
50
Non-cash investing and financing
activities:
Shares withheld with respect to net
settlement of restricted stock units
294
24
Excise taxes payable included in
repurchases of common stock
377
9
Share-based compensation expense
capitalized to software additions
69
48
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
44
79
Vesting of restricted stock awards and
restricted stock units
—
4
Reconciliation from GAAP to
Non-GAAP Results
(unaudited)
(in thousands, except share and
per share data)
Three Months Ended March
31,
2024
2023
Operating income
$
3,352
$
1,696
Add: Share-based compensation expense
7,936
5,190
Add: Employer payroll taxes on employee
stock transactions
422
126
Add: Expenses associated with public
offering
1,389
—
Add: Restructuring related costs(1)
3,191
2,904
Non-GAAP operating income
$
16,290
$
9,916
Operating margin
4
%
2
%
Non-GAAP operating margin
21
%
13
%
Three Months Ended March
31,
2024
2023
Net loss
$
(5,306
)
$
(5,666
)
Add: Share-based compensation expense
7,936
5,190
Add: Employer payroll taxes on employee
stock transactions
422
126
Add: Expenses associated with public
offering
1,389
—
Add: Restructuring related costs(1)
3,191
2,904
Subtract: Income tax effect on non-GAAP
items
(3,105
)
(1,973
)
Non-GAAP net income
$
4,527
$
581
Non-GAAP basic net income per share
$
0.06
$
0.01
Non-GAAP diluted net income per share
$
0.06
$
0.01
Weighted average shares used to compute
Non-GAAP basic net income per share
77,335,072
80,659,978
Weighted average shares used to compute
Non-GAAP diluted net income per share
80,479,008
82,538,596
Net loss margin
(7
)%
(7
)%
Non-GAAP net income margin
6
%
1
%
Three Months Ended March
31,
2024
2023
Net loss
$
(5,306
)
$
(5,666
)
Interest expense
9,582
9,031
Taxes
32
(1,199
)
Depreciation and amortization
14,524
14,531
Share-based compensation expense
7,936
5,190
Employer payroll taxes on employee stock
transactions
422
126
Expenses associated with public
offering
1,389
—
Restructuring related costs(1)
3,191
2,904
Deferred revenue reduction from purchase
accounting for acquisitions prior to 2022
—
20
Adjusted EBITDA
$
31,770
$
24,937
Net loss margin
(7
)%
(7
)%
Adjusted EBITDA margin
41
%
32
%
(1) Restructuring related costs for the
three months ended March 31, 2024 and 2023 are inclusive of $133
thousand and $299 thousand, respectively, of stock-based
compensation forfeitures recorded associated with
restructuring.
Reconciliation from GAAP to
Non-GAAP Results
(unaudited)
(in thousands)
Three Months Ended March
31,
2024
2023
Cost of revenue
$
26,073
$
27,955
Less: Share-based compensation expense
782
853
Less: Employer payroll taxes on employee
stock transactions
48
22
Less: Amortization of developed
technology
4,729
4,454
Non-GAAP cost of revenue
$
20,514
$
22,626
Cost of revenue as a % of revenue
34
%
36
%
Non-GAAP cost of revenue as a % of
revenue
26
%
29
%
Three Months Ended March
31,
2024
2023
General and administrative
$
25,179
$
22,555
Less: Share-based compensation expense
4,393
2,264
Less: Employer payroll taxes on employee
stock transactions
136
51
Less: Expenses associated with public
offering
1,389
—
Less: Depreciation expense
376
495
Less: Amortization of intangibles
9,419
9,582
Non-GAAP general & administrative
$
9,466
$
10,163
General and administrative as a % of
revenue
32
%
29
%
Non-GAAP general and administrative as a %
of revenue
12
%
13
%
Three Months Ended March
31,
2024
2023
Research and development
$
9,485
$
13,812
Less: Share-based compensation expense
1,502
1,783
Less: Employer payroll taxes on employee
stock transactions
121
27
Non-GAAP research and development
$
7,862
$
12,002
Research and development as a % of
revenue
12
%
18
%
Non-GAAP research and development as a %
of revenue
10
%
16
%
Three Months Ended March
31,
2024
2023
Sales and marketing
$
10,536
$
8,213
Less: Share-based compensation expense
1,259
290
Less: Employer payroll taxes on employee
stock transactions
117
26
Non-GAAP sales and marketing
$
9,160
$
7,897
Sales and marketing as a % of revenue
14
%
11
%
Non-GAAP sales and marketing as a % of
revenue
12
%
10
%
Three Months Ended March
31,
2024
2023
Net cash provided by operating
activities
$
29,038
$
28,081
Less: Capitalized software
1,837
1,924
Less: Capital expenditures
92
134
Free cash flow
$
27,109
$
26,023
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240507271211/en/
Press Contact Becky Frost (714) 784-5839
Media@meridianlink.com
Investor Relations Contact Gianna Rotellini (714)
332-6357 InvestorRelations@meridianlink.com
Grafico Azioni MeridianLink (NYSE:MLNK)
Storico
Da Nov 2024 a Dic 2024
Grafico Azioni MeridianLink (NYSE:MLNK)
Storico
Da Dic 2023 a Dic 2024
