MLNK - MeridianLink Reports Third Quarter 2021 Results
Revenue of $67.4 million grows 29% 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 third quarter ended September 30, 2021.
“We are extremely pleased with our Q3 results, which included 29% year-over-year revenue growth, while continuing to demonstrate high levels of profitability with 46% adjusted EBITDA margins,” said Nicolaas Vlok, chief executive officer of MeridianLink. “This quarter’s solid performance spotlights that financial institutions and consumer reporting agencies choose us time and time again to better serve their customers by accelerating their digital transformation. The adoption of MeridianLink Portal by more than 60 new and existing clients highlights this demand. As a market leader, we are ideally positioned to take advantage of these emerging digitalization trends in our target and adjacent markets.”
Quarterly Financial Highlights:
- Revenue of $67.4 million, an increase of 29% year-over-year
- Operating loss of $(8.8) million, or (13)% of revenue and Non-GAAP operating profit of $17.1 million, or 25% of revenue
- Adjusted EBITDA of $31.0 million, or 46% of revenue
- Cash flow from operations of $19.1 million, and Free Cash Flow of $17.6 million
Business and Operating Highlights:
- MeridianLink secured another strong roster of new logo customers and cross-sell wins within our target markets of community banks, credit unions, and consumer reporting agencies (CRAs)
- The company expanded further into adjacent markets, including signing a consumer specialty lending client with a national footprint and a top-100 bank with greater than $20 billion AUM
- MeridianLink added more than 60 new and existing clients to MeridianLink Portal, our consumer lending, digital point of sale solution
- The company launched several new integrations and enhancements to our data verification offerings to enable CRA clients to expand their portfolio of data services, including recurring background checks that reduce risk, and new features in our Advanced QuickApp tool that enables clients to serve customers more robustly
- For CRAs using Mortgage Credit Link, MeridianLink expanded verification of employment offerings to mortgage lenders through a key new integration
Business Outlook
Based on information as of today, November 3, 2021, the Company issues fourth quarter financial guidance and raises the full year 2021 financial guidance as follows:
Fourth Quarter Fiscal 2021:
- Revenue is expected to be in the range of $59.5 million to $60.5 million
- Adjusted EBITDA is expected to be in the range of $21.0 million to $22.0 million
Full Year 2021:
- Revenue is expected to be in the range of $263.2 million to $264.2 million
- Adjusted EBITDA is expected to be in the range of $119.7 million to $120.7 million
Conference Call Information
MeridianLink will hold a conference call to discuss our third quarter 2021 results today, November 3, 2021, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). The conference call can be accessed by dialing (877) 284-4396 from the United States and Canada or (873) 415-0298 internationally with conference ID 1728237. 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 8:59 p.m. Pacific Time (11:59 p.m. Eastern Time) on Wednesday, November 10, 2021, at (800) 585-8367 from the United States and Canada or (416) 621-4642 internationally with conference ID 1728237.
About MeridianLink
MeridianLink® (NYSE: MLNK) is a leading provider of cloud-based software solutions for financial institutions, including banks, credit unions, mortgage lenders, specialty lending providers and consumer reporting agencies. Headquartered in Costa Mesa, California, MeridianLink provides services to more than 1,900 customers, including a majority of the financial institutions on Forbes’ 2021 lists of America’s Best Credit Unions and Banks. Further information can be found 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:
- Adjusted EBITDA: net income (loss) before interest expense, taxes, depreciation, amortization, stock/unit-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
- Non-GAAP operating income: GAAP income (loss) from operations, excluding the impact of stock/unit-based compensation, employer payroll taxes on employee stock transactions, and sponsor and third-party acquisition-related costs
- Non-GAAP net income: GAAP net income (loss), excluding the impact of stock/unit-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 stock/unit-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 stock/unit-based compensation and employer payroll taxes on employee stock transactions
- Free cash flow: GAAP cash flow from operating activities plus 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 and Section 21E of the Securities Exchange Act. 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 future financial and operational performance, our strategic initiatives, our development or delivery of new or enhanced solutions, our market size and growth opportunities, and our competitive positioning. 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 under the caption “Risk Factors” in our final prospectus filed on July 28, 2021, and our other SEC filings. Additional information will also be set forth in Item 1A. Risk Factors, or elsewhere, in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2021. Any forward-looking statement contained herein or provided on the related conference call is based on reasonable assumptions as of the date hereof. 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/unit and per share/unit data) |
|
|
| September 30, |
|
|
| December 31, |
|
|
| 2021 |
|
|
| 2020 |
| Assets |
|
|
|
|
|
|
| Current assets: |
|
|
|
|
|
|
| Cash and cash equivalents |
| $ |
| 93,029 |
|
|
| $ |
| 37,739 |
| Restricted cash |
| — |
|
|
| 2,142 |
| Accounts receivable, net of allowance for doubtful accounts |
| 28,565 |
|
|
| 22,358 |
| Prepaid expenses and other current assets |
| 10,712 |
|
|
| 5,812 |
| Related party receivable from sellers of MeridianLink |
| — |
|
|
| 4,123 |
| Total current assets |
| 132,306 |
|
|
| 72,174 |
| Property and equipment, net |
| 6,300 |
|
|
| 7,600 |
| Intangible assets, net |
| 309,454 |
|
|
| 328,032 |
| Deferred tax assets, net |
| 3,811 |
|
|
| 9,484 |
| Goodwill |
| 565,048 |
|
|
| 542,965 |
| Other assets |
| 3,247 |
|
|
| 3,450 |
| Total assets |
| $ |
| 1,020,166 |
|
|
| $ |
| 963,705 |
|
|
|
|
|
|
|
|
| Liabilities and Stockholders’ Equity/Members’ Deficit |
|
|
|
|
|
|
| Current liabilities: |
|
|
|
|
|
|
| Accounts payable |
| $ |
| 1,175 |
|
|
| $ |
| 2,257 |
| Accrued liabilities |
| 22,322 |
|
|
| 21,070 |
| Deferred revenue |
| 20,889 |
|
|
| 10,873 |
| TazWorks, LLC purchase liability |
| — |
|
|
| 85,646 |
| Related party liability due to sellers of MeridianLink |
| — |
|
|
| 30,000 |
| Current portion of long-term debt, net of debt issuance costs |
| — |
|
|
| 2,955 |
| Total current liabilities |
| 44,386 |
|
|
| 152,801 |
| Long-term debt, net of debt issuance costs |
| 419,890 |
|
|
| 516,877 |
| Deferred rent |
| 425 |
|
|
| 543 |
| Other long-term liabilities |
| 77 |
|
|
| — |
| Total liabilities |
| 464,778 |
|
|
| 670,221 |
| Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Class A preferred units, no par value; unlimited units authorized, 319,913 units issued and outstanding as of December 31, 2020; liquidation preference of $402,607 as of December 31, 2020 |
| — |
|
|
| 319,913 |
|
|
|
|
|
|
|
|
| Stockholders’ Equity/Members’ Deficit |
|
|
|
|
|
|
| Preferred stock, $0.001 par value; 50,000,000 shares authorized at September 30, 2021; zero shares issued and outstanding at September 30, 2021 |
| — |
|
|
| — |
| Common stock, $0.001 par value; 600,000,000 shares authorized, 79,528,555 shares issued and outstanding at September 30, 2021 |
| 79 |
|
|
| — |
| Class B common units, no par value; unlimited units authorized, 51,492,805 units issued and outstanding as of December 31, 2020 |
| — |
|
|
| — |
| Additional paid-in capital |
| 592,448 |
|
|
| 3,909 |
| Accumulated deficit |
| (37,139) |
|
|
| (30,338) |
| Total stockholders’ equity/members’ deficit |
| 555,388 |
|
|
| (26,429) |
| Total liabilities, preferred units, and stockholders’ equity/members’ deficit |
| $ |
| 1,020,166 |
|
|
| $ |
| 963,705 |
|
|
|
|
|
|
|
|
| Condensed Consolidated Statements of Operations (unaudited) (in thousands, except share/unit and per share/unit data) |
|
|
| Three Months Ended September 30, |
|
|
| Nine Months Ended September 30, |
|
|
| 2021 |
|
|
| 2020 |
|
|
| 2021 |
|
|
| 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenues, net |
| $ |
| 67,367 |
|
|
|
|
| $ |
| 52,254 |
|
|
|
|
| $ |
| 203,652 |
|
|
|
|
| $ |
| 145,407 |
|
|
| Cost of revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Subscription and services |
| 23,467 |
|
|
|
|
| 12,660 |
|
|
|
|
| 58,078 |
|
|
|
|
| 35,909 |
|
|
| Amortization of developed technology |
| 3,219 |
|
|
|
|
| 2,213 |
|
|
|
|
| 9,190 |
|
|
|
|
| 6,417 |
|
|
| Total cost of revenues |
| 26,686 |
|
|
|
|
| 14,873 |
|
|
|
|
| 67,268 |
|
|
|
|
| 42,326 |
|
|
| Gross profit |
| 40,681 |
|
|
|
|
| 37,381 |
|
|
|
|
| 136,384 |
|
|
|
|
| 103,081 |
|
|
| Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| General and administrative |
| 29,917 |
|
|
|
|
| 12,975 |
|
|
|
|
| 64,884 |
|
|
|
|
| 40,293 |
|
|
| Research and development |
| 13,533 |
|
|
|
|
| 4,549 |
|
|
|
|
| 27,807 |
|
|
|
|
| 13,582 |
|
|
| Sales and marketing |
| 5,994 |
|
|
|
|
| 2,304 |
|
|
|
|
| 13,817 |
|
|
|
|
| 6,505 |
|
|
| Total operating expenses |
| 49,444 |
|
|
|
|
| 19,828 |
|
|
|
|
| 106,508 |
|
|
|
|
| 60,380 |
|
|
| Operating income (loss) |
| (8,763) |
|
|
|
|
| 17,553 |
|
|
|
|
| 29,876 |
|
|
|
|
| 42,701 |
|
|
| Other (income) expense, net: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other (income) expense |
| (9) |
|
|
|
|
| 7 |
|
|
|
|
| (39) |
|
|
|
|
| (17) |
|
|
| Interest expense, net |
| 7,165 |
|
|
|
|
| 8,659 |
|
|
|
|
| 27,073 |
|
|
|
|
| 26,033 |
|
|
| Loss on debt repayment |
| 4,351 |
|
|
|
|
| — |
|
|
|
|
| 4,351 |
|
|
|
|
| — |
|
|
| Total other expense, net |
| 11,507 |
|
|
|
|
| 8,666 |
|
|
|
|
| 31,385 |
|
|
|
|
| 26,016 |
|
|
| Income (loss) before provision for income taxes |
| (20,270) |
|
|
|
|
| 8,887 |
|
|
|
|
| (1,509) |
|
|
|
|
| 16,685 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Provision for income taxes |
| 1,176 |
|
|
|
|
| 1,869 |
|
|
|
|
| 5,274 |
|
|
|
|
| 3,445 |
|
|
| Net income (loss) |
| $ |
| (21,446) |
|
|
|
|
| $ |
| 7,018 |
|
|
|
|
| $ |
| (6,783) |
|
|
|
|
| $ |
| 13,240 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Class A preferred return |
| (2,780) |
|
|
|
|
| (8,733) |
|
|
|
|
| (20,944) |
|
|
|
|
| (25,480) |
|
|
| Net loss attributable to common stockholders |
| $ |
| (24,226) |
|
|
|
|
| $ |
| (1,715) |
|
|
|
|
| $ |
| (27,727) |
|
|
|
|
| $ |
| (12,240) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average common stock outstanding – basic and diluted |
| 71,697,083 |
|
|
|
|
| 51,283,143 |
|
|
|
|
| 58,495,073 |
|
|
|
|
| 51,111,568 |
|
|
| Net loss per share – basic and diluted |
| $ |
| (0.34) |
|
|
|
|
| $ |
| (0.03) |
|
|
|
|
| $ |
| (0.47) |
|
|
|
|
| $ |
| (0.24) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Revenues by Major Source (unaudited) (in thousands) |
|
|
| Three Months Ended September 30, |
|
|
| Nine Months Ended September 30, |
|
|
| 2021 |
|
|
| 2020 |
|
|
| 2021 |
|
|
| 2020 |
| Subscription fees |
| $ |
| 58,988 |
|
|
| $ |
| 46,808 |
|
|
| $ |
| 179,731 |
|
|
| $ |
| 129,579 |
| Professional services |
| 5,706 |
|
|
| 3,987 |
|
|
| 16,812 |
|
|
| 11,387 |
| Other |
| 2,673 |
|
|
| 1,459 |
|
|
| 7,109 |
|
|
| 4,441 |
| Total |
| $ |
| 67,367 |
|
|
| $ |
| 52,254 |
|
|
| $ |
| 203,652 |
|
|
| $ |
| 145,407 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Revenues by Solution Type (unaudited) (in thousands) |
|
|
| Three Months Ended September 30, |
|
|
| Nine Months Ended September 30, |
|
|
| 2021 |
|
|
| 2020 |
|
|
| 2021 |
|
|
| 2020 |
| Lending software solutions |
| $ |
| 44,657 |
|
|
| $ |
| 33,362 |
|
|
| $ |
| 133,034 |
|
|
| $ |
| 96,700 |
| Data verification software solutions |
| 22,710 |
|
|
| 18,892 |
|
|
| 70,618 |
|
|
| 48,707 |
| Total (1) |
| $ |
| 67,367 |
|
|
| $ |
| 52,254 |
|
|
| $ |
| 203,652 |
|
|
| $ |
| 145,407 |
| % Growth attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| TCI and TazWorks |
| 23% |
|
|
|
|
|
|
| 24% |
|
|
|
|
| Lending software solutions |
| 10% |
|
|
|
|
|
|
| 13% |
|
|
|
|
| Data verification software |
| (4)% |
|
|
|
|
|
|
| 3% |
|
|
|
|
| Total % growth |
| 29% |
|
|
|
|
|
|
| 40% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) % Revenue related to mortgage loan market: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Lending software solutions |
| 9% |
|
|
| 13% |
|
|
| 9% |
|
|
| 11% |
| Data verification software |
| 70% |
|
|
| 94% |
|
|
| 71% |
|
|
| 93% |
| Total % revenue related to mortgage loan market |
| 29% |
|
|
| 42% |
|
|
| 31% |
|
|
| 39% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Condensed Consolidated Statements of Cash Flows (unaudited) (in thousands) |
|
|
| Nine Months Ended September 30, |
|
|
| 2021 |
|
|
| 2020 |
| Cash flows from operating activities: |
|
|
|
|
|
|
| Net income (loss) |
| $ |
| (6,783) |
|
|
| $ |
| 13,240 |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
| Depreciation and amortization |
| 37,654 |
|
|
| 29,529 |
| Provision for doubtful accounts |
| — |
|
|
| 300 |
| Amortization of debt issuance costs |
| 2,551 |
|
|
| 953 |
| Stock/unit-based compensation expense |
| 26,835 |
|
|
| 2,058 |
| Loss on disposal of fixed assets |
| 524 |
|
|
| 72 |
| Loss on sublease liability |
| 405 |
|
|
| — |
| Loss on debt repayment |
| 4,351 |
|
|
| — |
| Other adjustments |
| (18) |
|
|
| — |
| Deferred income taxes |
| 4,992 |
|
|
| 3,329 |
| Changes in operating assets and liabilities: |
|
|
|
|
|
|
| Accounts receivable |
| (2,033) |
|
|
| (4,660) |
| Prepaid expenses and other assets |
| (6,179) |
|
|
| (1,063) |
| Accounts payable |
| (961) |
|
|
| 1,825 |
| Accrued liabilities |
| (2,271) |
|
|
| 559 |
| Deferred revenue |
| 10,016 |
|
|
| 9,091 |
| Deferred rent |
| (71) |
|
|
| (52) |
| Net cash provided by operating activities |
| 69,012 |
|
|
| 55,181 |
| Cash flows from investing activities: |
|
|
|
|
|
|
| Acquisitions, net of cash acquired – TazWorks, LLC |
| (85,420) |
|
|
| — |
| Acquisitions, net of cash acquired – Saylent Technologies, Inc |
| (35,945) |
|
|
| — |
| Capitalized software additions |
| (3,590) |
|
|
| (2,163) |
| Purchases of property and equipment |
| (692) |
|
|
| (3,403) |
| Net cash used in investing activities |
| (125,647) |
|
|
| (5,566) |
| Cash flows from financing activities: |
|
|
|
|
|
|
| Repurchases of Class A Units |
| (54) |
|
|
| (900) |
| Repurchases of Class B Units |
| (1,887) |
|
|
| (2,114) |
| Proceeds from initial public offering, net of underwriters’ discounts and commissions |
| 247,227 |
|
|
| — |
| Proceeds from exercise of stock options |
| 1,317 |
|
|
| — |
| Payment due to effect of corporate conversion |
| (6) |
|
|
| — |
| Proceeds from long-term debt |
| 100,000 |
|
|
| — |
| Principal payments of long-term debt |
| (202,590) |
|
|
| (3,117) |
| Payments of debt issuance costs |
| (1,970) |
|
|
| — |
| Payments of financing obligation due to related party |
| — |
|
|
| (81) |
| Payments of Class A cumulative preferred return |
| (12) |
|
|
| (135) |
| Payments of deferred offering costs |
| (4,435) |
|
|
| — |
| Payment to sellers of Teledata Communications, Inc |
| (2,142) |
|
|
| — |
| Holdback payment to sellers of MeridianLink |
| (25,665) |
|
|
| — |
| Net cash provided by (used in) financing activities |
| 109,783 |
|
|
| (6,347) |
| Net increase in cash, cash equivalents and restricted cash |
| 53,148 |
|
|
| 43,268 |
| Cash, cash equivalents and restricted cash, beginning of period |
| 39,881 |
|
|
| 97,770 |
| Cash, cash equivalents and restricted cash, end of period |
| $ |
| 93,029 |
|
|
| $ |
| 141,038 |
| Reconciliation of cash, cash equivalents, and restricted cash |
|
|
|
|
|
|
| Cash and cash equivalents |
| $ |
| 93,029 |
|
|
| $ |
| 141,038 |
| Restricted cash |
| — |
|
|
| — |
| Cash, cash equivalents, and restricted cash |
| $ |
| 93,029 |
|
|
| $ |
| 141,038 |
| Condensed Consolidated Statements of Cash Flows (unaudited) (in thousands) |
|
|
| Nine Months Ended September 30, |
|
|
| 2021 |
|
|
| 2020 |
| Supplemental disclosures of cash flow information: |
|
|
|
|
|
|
| Cash paid for interest |
| $ |
| 24,549 |
|
|
| $ |
| 25,326 |
| Cash paid for income taxes |
| 239 |
|
|
| 69 |
| Non-cash investing and financing activities: |
|
|
|
|
|
|
| Purchases of property and equipment included in accounts payable and accrued expenses |
| $ |
| — |
|
|
| $ |
| 102 |
| Stock/unit-based compensation expense capitalized to software additions |
| 45 |
|
|
| — |
| Deferred offering costs in prepaid expenses and other current assets at December 31, 2020 offsetting payments of deferred offering costs |
| 423 |
|
|
| — |
| Vesting of Restricted stock awards and RSUs |
| 85 |
|
|
| 64 |
| Effect of corporate conversion |
| 320 |
|
|
| — |
| Related party receivable net against holdback payment to prior shareholders |
| 4,335 |
|
|
| — |
|
|
|
|
|
|
|
|
| Reconciliation from GAAP to Non-GAAP Results (unaudited) (in thousands, except share/unit and per share/unit data) |
|
|
| Three Months Ended September 30, |
|
|
| Nine Months Ended September 30, |
|
|
| 2021 |
|
|
| 2020 |
|
|
| 2021 |
|
|
| 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating income (loss) |
| $ |
| (8,763) |
|
|
| $ |
| 17,553 |
|
|
| $ |
| 29,876 |
|
|
| $ |
| 42,701 |
| Add: Stock/unit-based compensation expense |
| 25,527 |
|
|
| 745 |
|
|
| 26,835 |
|
|
| 2,058 |
| Add: Employer payroll taxes on employee stock transactions |
| 79 |
|
|
| — |
|
|
| 79 |
|
|
| — |
| Add: Sponsor and third-party acquisition related costs |
| 209 |
|
|
| 500 |
|
|
| 2,323 |
|
|
| 1,500 |
| Non-GAAP operating income |
| $ |
| 17,052 |
|
|
| $ |
| 18,798 |
|
|
| $ |
| 59,113 |
|
|
| $ |
| 46,259 |
| Non-GAAP operating margin |
| 25% |
|
|
| 36% |
|
|
| 29% |
|
|
| 32% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three Months Ended September 30, |
|
|
| Nine Months Ended September 30, |
|
|
| 2021 |
|
|
| 2020 |
|
|
| 2021 |
|
|
| 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) |
| $ |
| (21,446) |
|
|
| $ |
| 7,018 |
|
|
| $ |
| (6,783) |
|
|
| $ |
| 13,240 |
| Add: Stock/unit-based compensation expense |
| 25,527 |
|
|
| 745 |
|
|
| 26,835 |
|
|
| 2,058 |
| Add: Employer payroll taxes on employee stock transactions |
| 79 |
|
|
| — |
|
|
| 79 |
|
|
| — |
| Add: Sponsor and third-party acquisition related costs |
| 209 |
|
|
| 500 |
|
|
| 2,323 |
|
|
| 1,500 |
| Non-GAAP net income |
| $ |
| 4,369 |
|
|
| $ |
| 8,263 |
|
|
| $ |
| 22,454 |
|
|
| $ |
| 16,798 |
| Non-GAAP basic net income per share |
| $ |
| 0.06 |
|
|
| $ |
| 0.16 |
|
|
| $ |
| 0.38 |
|
|
| $ |
| 0.33 |
| Non-GAAP diluted net income per share |
| $ |
| 0.06 |
|
|
| $ |
| 0.15 |
|
|
| $ |
| 0.36 |
|
|
| $ |
| 0.31 |
| Weighted average shares used to compute Non-GAAP basic net income per share |
| 71,697,083 |
|
|
| 51,283,143 |
|
|
| 58,495,073 |
|
|
| 51,111,568 |
| Weighted average shares used to compute Non-GAAP diluted net income per share |
| 74,764,302 |
|
|
| 54,184,668 |
|
|
| 61,552,071 |
|
|
| 54,013,093 |
| Non-GAAP net income margin |
| 6% |
|
|
| 16% |
|
|
| 11% |
|
|
| 12% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three Months Ended September 30, |
|
|
| Nine Months Ended September 30, |
|
|
| 2021 |
|
|
| 2020 |
|
|
| 2021 |
|
|
| 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) |
| $ |
| (21,446) |
|
|
| $ |
| 7,018 |
|
|
| $ |
| (6,783) |
|
|
| $ |
| 13,240 |
| Interest expense |
| 7,165 |
|
|
| 8,659 |
|
|
| 27,073 |
|
|
| 26,033 |
| Taxes |
| 1,176 |
|
|
| 1,869 |
|
|
| 5,274 |
|
|
| 3,445 |
| Depreciation and amortization |
| 12,697 |
|
|
| 10,071 |
|
|
| 37,654 |
|
|
| 29,529 |
| Stock/unit-based compensation expense |
| 25,527 |
|
|
| 745 |
|
|
| 26,835 |
|
|
| 2,058 |
| Employer payroll taxes on employee stock transactions |
| 79 |
|
|
| — |
|
|
| 79 |
|
|
| — |
| Expenses associated with IPO |
| 230 |
|
|
| — |
|
|
| 424 |
|
|
| — |
| Sponsor and third-party acquisition related costs |
| 209 |
|
|
| 500 |
|
|
| 2,323 |
|
|
| 1,500 |
| Loss on debt prepayment |
| 4,351 |
|
|
| — |
|
|
| 4,351 |
|
|
| — |
| Deferred revenue reduction from purchase accounting |
| 122 |
|
|
| 170 |
|
|
| 624 |
|
|
| 517 |
| Lease termination charges |
| 879 |
|
|
| — |
|
|
| 879 |
|
|
| — |
| Adjusted EBITDA |
| $ |
| 30,989 |
|
|
| $ |
| 29,032 |
|
|
| $ |
| 98,733 |
|
|
| $ |
| 76,322 |
| Adjusted EBITDA margin |
| 46% |
|
|
| 56% |
|
|
| 48% |
|
|
| 52% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three Months Ended September 30, |
|
|
| Nine Months Ended September 30, |
|
|
| 2021 |
|
|
| 2020 |
|
|
| 2021 |
|
|
| 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of revenue |
| $ |
| 26,686 |
|
|
| $ |
| 14,873 |
|
|
| $ |
| 67,268 |
|
|
| $ |
| 42,326 |
| Less: Stock/unit-based compensation expense |
| 5,296 |
|
|
| 54 |
|
|
| 5,461 |
|
|
| 109 |
| Less: Employer payroll taxes on employee stock transactions |
| 3 |
|
|
| — |
|
|
| 3 |
|
|
| — |
| Less: Amortization of developed technology |
| 3,219 |
|
|
| 2,213 |
|
|
| 9,190 |
|
|
| 6,417 |
| Non-GAAP cost of revenue |
| $ |
| 18,168 |
|
|
| $ |
| 12,606 |
|
|
| $ |
| 52,614 |
|
|
| $ |
| 35,800 |
| As a % of revenue |
| 27% |
|
|
| 24% |
|
|
| 26% |
|
|
| 25% |
| Three Months Ended September 30, |
|
|
| Nine Months Ended September 30, |
|
|
| 2021 |
|
|
| 2020 |
|
|
| 2021 |
|
|
| 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| General & administrative |
| $ |
| 29,917 |
|
|
| $ |
| 12,975 |
|
|
| $ |
| 64,884 |
|
|
| $ |
| 40,293 |
| Less: Stock/unit-based compensation expense |
| 12,158 |
|
|
| 496 |
|
|
| 12,864 |
|
|
| 1,454 |
| Less: Employer payroll taxes on employee stock transactions |
| 59 |
|
|
| — |
|
|
| 59 |
|
|
| — |
| Less: Depreciation expense |
| 572 |
|
|
| 815 |
|
|
| 1,743 |
|
|
| 1,984 |
| Less: Amortization of intangibles |
| 8,906 |
|
|
| 7,043 |
|
|
| 26,721 |
|
|
| 21,128 |
| Non-GAAP general & administrative |
| $ |
| 8,222 |
|
|
| $ |
| 4,621 |
|
|
| $ |
| 23,497 |
|
|
| $ |
| 15,727 |
| As a % of revenue |
| 12% |
|
|
| 9% |
|
|
| 12% |
|
|
| 11% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three Months Ended September 30, |
|
|
| Nine Months Ended September 30, |
|
|
| 2021 |
|
|
| 2020 |
|
|
| 2021 |
|
|
| 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Research and development |
| $ |
| 13,533 |
|
|
| $ |
| 4,549 |
|
|
| $ |
| 27,807 |
|
|
| $ |
| 13,582 |
| Less: Stock/unit-based compensation expense |
| 6,194 |
|
|
| 88 |
|
|
| 6,358 |
|
|
| 247 |
| Less: Employer payroll taxes on employee stock transactions |
| 8 |
|
|
| — |
|
|
| 8 |
|
|
| — |
| Non-GAAP research and development |
| $ |
| 7,331 |
|
|
| $ |
| 4,461 |
|
|
| $ |
| 21,441 |
|
|
| $ |
| 13,335 |
| As a % of revenue |
| 11% |
|
|
| 9% |
|
|
| 11% |
|
|
| 9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three Months Ended September 30, |
|
|
| Nine Months Ended September 30, |
|
|
| 2021 |
|
|
| 2020 |
|
|
| 2021 |
|
|
| 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Sales and marketing |
| $ |
| 5,994 |
|
|
| $ |
| 2,304 |
|
|
| $ |
| 13,817 |
|
|
| $ |
| 6,505 |
| Less: Stock/unit-based compensation expense |
| 1,879 |
|
|
| 107 |
|
|
| 2,152 |
|
|
| 248 |
| Less: Employer payroll taxes on employee stock transactions |
| 9 |
|
|
| — |
|
|
| 9 |
|
|
| — |
| Non-GAAP sales and marketing |
| $ |
| 4,106 |
|
|
| $ |
| 2,197 |
|
|
| $ |
| 11,656 |
|
|
| $ |
| 6,257 |
| As a % of revenue |
| 6% |
|
|
| 4% |
|
|
| 6% |
|
|
| 4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three Months Ended September 30, |
|
|
| Nine Months Ended September 30, |
|
|
| 2021 |
|
|
| 2020 |
|
|
| 2021 |
|
|
| 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash provided by operating activities |
| $ |
| 19,103 |
|
|
| $ |
| 24,864 |
|
|
| $ |
| 69,012 |
|
|
| $ |
| 55,181 |
| Less: Capital expenditures |
| 139 |
|
|
| 574 |
|
|
| 692 |
|
|
| 3,403 |
| Less: Capitalized software |
| 1,374 |
|
|
| 735 |
|
|
| 3,590 |
|
|
| 2,163 |
| Free cash flow |
| $ |
| 17,590 |
|
|
| $ |
| 23,555 |
|
|
| $ |
| 64,730 |
|
|
| $ |
| 49,615 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20211103006046/en/
Press Contacts
Becky Frost
(714) 784-5839
becky.frost@meridianlink.com
Investor Relations Contact
Erik Schneider
(714) 332-6357
InvestorRelations@meridianlink.com