Avid® (NASDAQ: AVID), a leading technology provider that powers the
media and entertainment industry, today announced its financial
results for the fourth quarter and full year ended December 31,
2021.
Total revenue increased 14.2% year-over-year in the fourth
quarter, led by enterprise and creative subscription growth as well
as favorable demand for integrated solutions, continuing the
sustained growth trend with four consecutive quarters of
year-over-year revenue growth. During the fourth quarter, the
recurring revenue components of the Company’s business remained
strong with subscription revenue of $34.1 million, up 38.8%
year-over-year, and subscription & maintenance revenue of $65.5
million, up 17.9% year-over-year.
The revenue growth, combined with an increased mix of
higher-gross margin software subscription revenue and improving
integrated solutions gross margin, resulted in fourth quarter
Non-GAAP Earnings per Share of $0.46. This strong profitability
resulted in net cash provided by operating activities of $27.1
million and Free Cash Flow of $25.0 million in the fourth
quarter.
For the full year 2021, Avid’s total revenue increased 13.7% to
$409.9 million. Subscription revenue grew 48.9%, to $108.4 million,
surpassing 26% of total revenue, up from 20% of total revenue in
2020. During 2021, the Company drove a 150 basis point increase in
gross margin to 64.8%. The higher gross margin resulted in
continued strong trends in profitability with net income per common
share of $0.89 and Non-GAAP Earnings per Share of $1.25, an
increase of 92.3% year-over-year. The strong profitability resulted
in favorable cash generation with net cash provided by operating
activities of $62.5 million and Free Cash Flow of $55.7 million, an
increase of 64.4% year-over-year.
Fourth Quarter 2021 Financial and Business
Highlights
- Subscription revenue was $34.1 million, an increase of 38.8%
year-over-year.
- Paid Cloud-enabled software subscriptions increased by 28.3%
year-over-year to approximately 410,600 at December 31, 2021 and
increased by approximately 21,700 during the fourth quarter.
- Subscription and Maintenance revenue was $65.5 million, up
17.9% year-over-year.
- Total revenue was $119.1 million, an increase of 14.2%
year-over-year.
- Gross margin was 65.8%, an increase of 310 basis points
year-over-year. Non-GAAP Gross Margin was 66.2%, an increase of 310
basis points year-over-year.
- Operating expenses were $61.2 million, an increase of 12.2%
year-over-year. Non-GAAP Operating Expenses were $55.8
million, an increase of 20.4% year-over-year.
- Net income was $15.2 million, an increase of 114.7%
year-over-year. Non-GAAP Net Income was $20.9 million, an increase
of 37.0% year-over-year.
- Adjusted EBITDA was $25.0 million, an increase of 15.3%
year-over-year. Adjusted EBITDA Margin was 21.0%, an increase of 30
basis points year-over-year.
- Net income per common share was $0.33, an increase of 106.3%
year-over-year. Non-GAAP Earnings per Share was $0.46, an increase
of 39.4% year-over-year.
- Net cash provided by operating activities was $27.1 million in
the quarter, an increase of $10.6 million compared to the prior
quarter, but a decrease of ($3.6) million compared to the prior
year period.
- Free Cash Flow was $25.0 million in the quarter, an increase of
$11.0 million compared to the prior quarter, but a decrease of
($5.6) million compared to the prior year period.
- Repurchased 461,910 shares for $13.9 million during the fourth
quarter, under the $115 million share repurchase authorization
announced on September 9, 2021.
FY 2021 Financial and Business Highlights
- Subscription revenue was $108.4 million, an increase of 48.9%
year-over-year.
- Subscription and Maintenance revenue was $230.9 million, an
increase of 17.2% year-over-year.
- Total revenue was $409.9 million, an increase of 13.7%
year-over-year.
- LTM Recurring Revenue represented 78.0% of the Company’s
revenue for the year ended December 31, 2021, an increase of 380
basis points year-over-year.
- Gross margin was 64.8%, an increase of 150 basis points
year-over-year. Non-GAAP Gross Margin was 65.3%, an increase of 160
basis points year-over-year.
- Operating expenses were $219.5 million, an increase of 11.6%
year-over-year. Non-GAAP Operating Expenses were $200.4 million, an
increase of 11.6% year-over-year.
- Net income was $41.4 million, an increase of 274.1%
year-over-year. Non-GAAP Net Income was $57.9 million, an increase
of 98.8% year-over-year.
- Adjusted EBITDA was $75.5 million, an increase of 28.7%
year-over-year. Adjusted EBITDA Margin was 18.4%, an increase of
210 basis points year-over-year.
- Net income per common share was $0.89, an increase of 256.0%
year-over-year. Non-GAAP Earnings per Share was $1.25, an increase
of 92.3% year-over-year.
- Net cash provided by operating activities was $62.5 million in
2021, an increase of 58.0% year-over-year.
- Free Cash Flow was $55.7 million in 2021, an increase of 64.4%
year-over-year.
- Annual Contract Value was $352.1 million at December 31, 2021,
an increase of 17.1% year-over-year.
- Repurchased 874,085 shares for $25.1 million during 2021, under
the $115 million share repurchase authorization announced on
September 9, 2021.
Jeff Rosica, Avid’s CEO and President, stated, “We ended 2021
with strong fourth quarter performance and good momentum heading
into 2022. During the fourth quarter, we continued to
exceed our expectations for adoption of subscription solutions by
our enterprise customers, and we continued to see solid growth in
subscriptions for our creative tools. This strength in our
subscription business, combined with growing storage and audio
integrated solutions revenue and stable maintenance revenue,
allowed us to deliver continued improvement in profitability and
strong Free Cash Flow.” Mr. Rosica added, “As we begin
2022, we continue to see strength across the end markets for our
solutions, and we will continue to make selective investments in
new products and innovation to enable Avid to continue delivering
the industry-leading solutions that our customers depend on and to
achieve our company strategy and our long-term growth and
profitability targets.”
Ken Gayron, Executive Vice President and Chief Financial Officer
of Avid, said, “We continued to make substantial progress in
driving our higher gross margin subscription and maintenance
revenue during the fourth quarter, which together accounted for 55%
of our total revenue in the quarter. This growth, combined with
improving integrated solutions gross margin, enabled us to deliver
strong profitability and Free Cash Flow in the fourth quarter and
positions us well as we enter 2022.” Mr. Gayron continued,
“Additionally, given our strong Free Cash Flow and high confidence
in our strategy and long-term model, and with the goal of enhancing
shareholder returns, we continued to repurchase shares in the
fourth quarter under the Company’s share repurchase program.”
First Quarter and Full Year 2022 Guidance
For the first quarter of 2022, Avid is providing guidance for
Revenue, Subscription & Maintenance Revenue, Non-GAAP Earnings
per Share, and Adjusted EBITDA. For the full year 2022, Avid is
providing guidance for Revenue, Subscription & Maintenance
Revenue, Non-GAAP Earnings per Share, Adjusted EBITDA, and Free
Cash Flow.
($ in millions, except per share amounts) |
Q1 2022 Guidance |
Revenue |
$100 -
$106 |
Subscription & Maintenance Revenue |
$60 -
$64 |
Non-GAAP Earnings per Share |
$0.30 -
$0.38 |
Adjusted EBITDA |
$18.5 -
$22.5 |
Q1 Non-GAAP Earnings per Share assumes 46.0 million
shares outstanding. |
|
|
|
Full Year 2022 Guidance |
Revenue |
$430 -
$450 |
Subscription & Maintenance Revenue |
$266 -
$274 |
Non-GAAP Earnings per Share |
$1.40 -
$1.51 |
Adjusted EBITDA |
$84 -
$94 |
Free Cash Flow |
$60 -
$67 |
2022 Non-GAAP Earnings per Share assumes 46.2
million shares outstanding. |
|
All guidance presented by the Company is inherently uncertain
and subject to numerous risks and uncertainties. Avid’s actual
future results of operations could differ materially from those
shown in the table above. For a discussion of some of the key
assumptions underlying the guidance, as well as the key risks and
uncertainties associated with these forward-looking statements,
please see “Forward-Looking Statements” below as well as the Avid
Technology Q4 and Full-Year 2021 Business Update presentation
posted on Avid’s Investor Relations website at ir.avid.com.
Conference Call to Discuss Fourth Quarter and FY 2021
Results on March 1, 2022
Avid will host a conference call to discuss its financial
results for the fourth quarter and FY 2021 on Tuesday, March 1,
2022 at 5:30 p.m. ET. Participants may join the webcast in
listen-only mode and access the presentation slides using the link
on the Avid Investor Relations website, which can be found on the
Events & Presentations tab at ir.avid.com. Participants who
would like to ask a question can access the call by dialing +1
646-828-8193 and referencing confirmation code 7636999. Please
connect at least 15 minutes in advance to ensure a timely
connection to the call. A replay of the call will also be available
for a limited time and can be accessed on the Events &
Presentations tab of the Avid Investor Relations website shortly
after the completion of the call.
Non-GAAP Financial Measures and Operational
Metrics
Avid includes non-GAAP financial measures in this press release,
including Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow,
Non-GAAP Gross Margin, Non-GAAP Operating Expenses, Non-GAAP Net
Income, and Non-GAAP Earnings per Share. The Company also includes
the operational metrics of Cloud-enabled software subscriptions,
Recurring Revenue, LTM Recurring Revenue % and Annual Contract
Value in this release. Avid believes the non-GAAP financial
measures and operational metrics provided in this release provide
helpful information to investors with respect to evaluating the
Company’s performance. Unless noted, all financial and operating
information is reported based on actual exchange rates. Definitions
of the non-GAAP financial measures and the operational metrics are
included in our Form 8-K filed today. Reconciliations of the
non-GAAP financial measures presented in this press release to the
Company's comparable GAAP financial measures for the periods
presented are set forth below and are included in the supplemental
financial and operational data sheet available on our Investor
Relations website at ir.Avid.com, which also includes definitions
of all operational metrics.
This press release also includes expectations for future
Adjusted EBITDA, Non-GAAP Earnings per Share and Free Cash Flow,
which are forward-looking non-GAAP financial measures.
Reconciliations of these forward-looking non-GAAP measures are not
included in this press release or elsewhere, due to the high
variability and difficulty in making accurate forecasts and
projections of some of the information excluded from the estimation
of the non-GAAP results, together with some of the excluded
information not being ascertainable or accessible at this time. As
a result, we are unable to quantify certain amounts that would be
required to be included in the most directly comparable GAAP
financial measure without unreasonable efforts.
Forward-Looking Statements
Certain information provided in this press release includes
forward-looking statements within the meaning of the Securities Act
of 1933 and the Securities Exchange Act of 1934, which are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Examples of forward-looking
statements include statements regarding our future financial
performance or position, results of operations, business strategy,
plans and objectives of management for future operations, and other
statements that are not historical fact. You can identify
forward-looking statements by their use of forward-looking words
such as “may”, “will”, “anticipate”, “expect”, “believe”,
“estimate”, “intend”, “plan”, “should”, “seek”, or other comparable
terms.
Readers of this press release should understand that these
forward-looking statements are not guarantees of performance or
results. Forward-looking statements provide our current
expectations and beliefs concerning future events and are subject
to risks, uncertainties, and factors relating to our business and
operations, all of which are difficult to predict and could cause
our actual results to differ materially from the expectations
expressed in or implied by such forward-looking statements.
These risks, uncertainties, and factors include, but are not
limited to: risks related to the impact of the coronavirus
(COVID-19) outbreak on our business, suppliers, consumers,
customers and employees; economic, social, and political
instability, security concerns, and the risk of war or armed
conflict, particularly in areas of heightened geopolitical tension
and open conflict such as Ukraine where we have outsourced research
and development activities; our liquidity; our ability to execute
our strategic plan including our cost saving strategies, and to
meet customer needs; our ability to retain and hire key personnel;
our ability to produce innovative products in response to changing
market demand, particularly in the media industry; our ability to
successfully accomplish our product development plans; competitive
factors; history of losses; fluctuations in our revenue based on,
among other things, our performance and risks in particular
geographies or markets; our higher indebtedness and ability to
service it and meet the obligations thereunder; restrictions in our
credit facilities; our move to a subscription model and related
effect on our revenues and ability to predict future revenues;
fluctuations in subscription and maintenance renewal rates;
elongated sales cycles; fluctuations in foreign currency exchange
rates; seasonal factors; adverse changes in economic conditions;
variances in our revenue backlog and the realization thereof; risks
related to the availability and prices of raw materials, including
any negative effects caused by inflation, armed conflict and
related sanctions, weather conditions, or health pandemics;
disruptions or inefficiencies in our supply chain and/or
operations, including from armed conflict and related sanctions and
the COVID-19 outbreak; the costs, disruption, and diversion of
management's attention due to the COVID-19 outbreak; the
possibility of legal proceedings adverse to our Company; and other
risks described in our reports filed from time to time with the
U.S. Securities and Exchange Commission. Moreover, the business may
be adversely affected by future legislative, regulatory or other
changes, including tax law changes, as well as other economic,
business and/or competitive factors. The risks included above are
not exhaustive. We caution readers not to place undue reliance on
any forward-looking statements included in this press release which
speak only as to the date of this press release. We undertake no
responsibility to update or revise any forward-looking statements,
except as required by law.
Avid Powers Greater Creators
People who create media for a living become greater creators
with Avid’s award-winning technology solutions to make, manage and
monetize today’s most celebrated video and audio content—from
iconic movies and bingeworthy TV series, to network news and
sports, to recorded music and the live stage. What began more than
30 years ago with our invention of nonlinear digital video editing
has led to individual artists, creative teams and organizations
everywhere subscribing to our powerful tools and collaborating
securely in the cloud. We continue to re-imagine the many ways
editors, musicians, producers, journalists and other content
creators will bring their stories to life. Discover the
possibilities at avid.com and join the conversation on social media
with the multitude of brilliant creative people who choose Avid for
a lifetime of success.
© 2022 Avid Technology, Inc., Avid and its logo are property of
Avid. All rights reserved. Other trademarks are property of their
respective owners.
AVID TECHNOLOGY, INC. |
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Condensed Consolidated Statements of
Operations |
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(unaudited - in thousands, except per share data) |
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Three Months
Ended |
|
Twelve
Months Ended |
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|
December 31, |
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December 31, |
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|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
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|
Net revenues: |
|
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|
|
|
|
|
|
|
|
|
Subscription |
|
$ |
34,059 |
|
|
$ |
24,539 |
|
|
$ |
108,443 |
|
|
$ |
72,831 |
|
|
|
Maintenance |
|
|
31,414 |
|
|
|
30,985 |
|
|
|
122,411 |
|
|
|
124,175 |
|
|
|
Integrated solutions and other |
|
|
53,591 |
|
|
|
48,777 |
|
|
|
179,090 |
|
|
|
163,460 |
|
|
|
Total net revenues |
|
|
119,064 |
|
|
|
104,301 |
|
|
|
409,944 |
|
|
|
360,466 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues: |
|
|
|
|
|
|
|
|
|
|
Subscription |
|
|
4,753 |
|
|
|
2,413 |
|
|
|
14,963 |
|
|
|
6,870 |
|
|
|
Maintenance |
|
|
5,846 |
|
|
|
6,190 |
|
|
|
22,981 |
|
|
|
21,651 |
|
|
|
Integrated solutions and other |
|
|
30,118 |
|
|
|
30,348 |
|
|
|
106,196 |
|
|
|
103,625 |
|
|
|
Total cost of revenues |
|
|
40,717 |
|
|
|
38,951 |
|
|
|
144,140 |
|
|
|
132,146 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
|
78,347 |
|
|
|
65,350 |
|
|
|
265,804 |
|
|
|
228,320 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
Research and development |
|
|
16,920 |
|
|
|
14,902 |
|
|
|
65,559 |
|
|
|
57,018 |
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|
|
Marketing and selling |
|
|
28,983 |
|
|
|
22,660 |
|
|
|
95,494 |
|
|
|
87,637 |
|
|
|
General and administrative |
|
|
15,158 |
|
|
|
12,908 |
|
|
|
57,372 |
|
|
|
47,052 |
|
|
|
Restructuring costs, net |
|
|
115 |
|
|
|
4,038 |
|
|
|
1,116 |
|
|
|
5,046 |
|
|
|
Total operating expenses |
|
|
61,176 |
|
|
|
54,508 |
|
|
|
219,541 |
|
|
|
196,753 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
17,171 |
|
|
|
10,842 |
|
|
|
46,263 |
|
|
|
31,567 |
|
|
|
|
|
|
|
|
|
|
|
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|
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Interest expense, net |
|
|
(1,609 |
) |
|
|
(4,565 |
) |
|
|
(7,149 |
) |
|
|
(20,001 |
) |
|
Other income, net |
|
|
389 |
|
|
|
636 |
|
|
|
4,841 |
|
|
|
868 |
|
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Income before income taxes |
|
|
15,951 |
|
|
|
6,913 |
|
|
|
43,955 |
|
|
|
12,434 |
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|
|
|
|
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|
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Provision for (benefit from) income taxes |
|
|
735 |
|
|
|
(174 |
) |
|
|
2,567 |
|
|
|
1,372 |
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Net income |
|
|
$ |
15,216 |
|
|
$ |
7,087 |
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|
$ |
41,388 |
|
|
$ |
11,062 |
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|
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|
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Net income per common share - basic |
|
$ |
0.34 |
|
|
$ |
0.16 |
|
|
$ |
0.92 |
|
|
$ |
0.25 |
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Net income per common share - diluted |
|
$ |
0.33 |
|
|
$ |
0.16 |
|
|
$ |
0.89 |
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|
$ |
0.25 |
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Weighted-average common shares outstanding - basic |
|
|
45,061 |
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|
|
44,288 |
|
|
|
45,101 |
|
|
|
43,822 |
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|
Weighted-average common shares outstanding - diluted |
|
|
45,773 |
|
|
|
45,541 |
|
|
|
46,303 |
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|
44,878 |
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AVID TECHNOLOGY, INC. |
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Reconciliations of GAAP Financial Measures to Non-GAAP
Financial Measures |
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(unaudited - in thousands) |
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Three Months
Ended |
|
Twelve
Months Ended |
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|
December 31, |
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December 31, |
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|
2021 |
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|
2020 |
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|
2021 |
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|
2020 |
|
GAAP Revenue |
|
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|
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|
GAAP Revenue |
|
$ |
119,064 |
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|
$ |
104,301 |
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$ |
409,944 |
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$ |
360,466 |
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|
Non-GAAP Gross Profit |
|
|
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|
GAAP Gross Profit |
|
|
78,347 |
|
|
|
65,350 |
|
|
|
265,804 |
|
|
|
228,320 |
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|
|
Stock-based
compensation |
|
|
439 |
|
|
|
431 |
|
|
|
1,801 |
|
|
|
1,339 |
|
|
Non-GAAP Gross Profit |
|
$ |
78,786 |
|
|
$ |
65,781 |
|
|
$ |
267,605 |
|
|
$ |
229,659 |
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|
GAAP Gross Margin |
|
|
65.8 |
% |
|
|
62.7 |
% |
|
|
64.8 |
% |
|
|
63.3 |
% |
|
Non-GAAP Gross Margin |
|
|
66.2 |
% |
|
|
63.1 |
% |
|
|
65.3 |
% |
|
|
63.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Operating Expenses |
|
|
|
|
|
|
|
|
|
GAAP Operating Expenses |
|
|
61,176 |
|
|
|
54,508 |
|
|
|
219,541 |
|
|
|
196,753 |
|
|
|
Less Amortization of intangible assets |
|
(73 |
) |
|
|
(105 |
) |
|
|
(388 |
) |
|
|
(411 |
) |
|
|
Less
Stock-based compensation |
|
|
(3,208 |
) |
|
|
(2,101 |
) |
|
|
(12,681 |
) |
|
|
(9,325 |
) |
|
|
Less
Restructuring costs, net |
|
|
(115 |
) |
|
|
(4,038 |
) |
|
|
(1,116 |
) |
|
|
(5,046 |
) |
|
|
Less Acquisition, integration and other costs |
|
(985 |
) |
|
|
(1,015 |
) |
|
|
(3,068 |
) |
|
|
(832 |
) |
|
|
Less
Efficiency program costs |
|
|
- |
|
|
|
(886 |
) |
|
|
(48 |
) |
|
|
(1,331 |
) |
|
|
Less Digital
Transformation costs |
|
|
(1,028 |
) |
|
|
- |
|
|
|
(1,836 |
) |
|
|
- |
|
|
|
Less
COVID-19 related expenses |
|
|
- |
|
|
|
(27 |
) |
|
|
(22 |
) |
|
|
(278 |
) |
|
Non-GAAP Operating Expenses |
|
$ |
55,767 |
|
|
$ |
46,336 |
|
|
$ |
200,382 |
|
|
$ |
179,530 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Operating Income and Adjusted EBITDA |
|
|
|
|
|
|
|
|
GAAP net income |
|
|
15,216 |
|
|
|
7,087 |
|
|
|
41,388 |
|
|
|
11,062 |
|
|
|
Interest and
other expense |
|
|
1,220 |
|
|
|
3,929 |
|
|
|
2,308 |
|
|
|
19,133 |
|
|
|
Provision
for income taxes |
|
|
735 |
|
|
|
(174 |
) |
|
|
2,567 |
|
|
|
1,372 |
|
|
GAAP Operating Income |
|
|
17,171 |
|
|
|
10,842 |
|
|
|
46,263 |
|
|
|
31,567 |
|
|
|
Amortization
of intangible assets |
|
|
73 |
|
|
|
105 |
|
|
|
388 |
|
|
|
411 |
|
|
|
Stock-based
compensation |
|
|
3,647 |
|
|
|
2,532 |
|
|
|
14,482 |
|
|
|
10,664 |
|
|
|
Restructuring costs, net |
|
|
115 |
|
|
|
4,038 |
|
|
|
1,116 |
|
|
|
5,046 |
|
|
|
Acquisition, integration and other costs |
|
985 |
|
|
|
1,015 |
|
|
|
3,068 |
|
|
|
832 |
|
|
|
Efficiency
program costs |
|
|
- |
|
|
|
886 |
|
|
|
48 |
|
|
|
1,331 |
|
|
|
Digital
Transformation costs |
|
|
1,028 |
|
|
|
- |
|
|
|
1,836 |
|
|
|
- |
|
|
|
COVID-19
related expenses |
|
|
- |
|
|
|
27 |
|
|
|
22 |
|
|
|
278 |
|
|
Non-GAAP Operating Income |
|
$ |
23,019 |
|
|
$ |
19,445 |
|
|
$ |
67,223 |
|
|
$ |
50,129 |
|
|
|
Depreciation |
|
|
1,932 |
|
|
|
2,188 |
|
|
|
8,255 |
|
|
|
8,505 |
|
|
Adjusted EBITDA |
|
$ |
24,951 |
|
|
$ |
21,633 |
|
|
$ |
75,478 |
|
|
$ |
58,634 |
|
|
GAAP net income margin |
|
|
12.8 |
% |
|
|
6.8 |
% |
|
|
10.1 |
% |
|
|
3.1 |
% |
|
Adjusted EBITDA Margin |
|
|
21.0 |
% |
|
|
20.7 |
% |
|
|
18.4 |
% |
|
|
16.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Net Income |
|
|
|
|
|
|
|
|
|
GAAP net income |
|
|
15,216 |
|
|
|
7,087 |
|
|
|
41,388 |
|
|
|
11,062 |
|
|
|
Amortization
of intangible assets |
|
|
73 |
|
|
|
105 |
|
|
|
388 |
|
|
|
411 |
|
|
|
Stock-based
compensation |
|
|
3,647 |
|
|
|
2,532 |
|
|
|
14,482 |
|
|
|
10,664 |
|
|
|
Restructuring costs, net |
|
|
115 |
|
|
|
4,038 |
|
|
|
1,116 |
|
|
|
5,046 |
|
|
|
Acquisition, integration and other costs |
|
985 |
|
|
|
1,015 |
|
|
|
3,068 |
|
|
|
832 |
|
|
|
Efficiency
program costs |
|
|
- |
|
|
|
886 |
|
|
|
48 |
|
|
|
1,331 |
|
|
|
Digital
Transformation costs |
|
|
1,028 |
|
|
|
- |
|
|
|
1,836 |
|
|
|
- |
|
|
|
Gain on
forgiveness of PPP Loan |
|
|
- |
|
|
|
- |
|
|
|
(7,800 |
) |
|
|
- |
|
|
|
COVID-19
related expenses |
|
|
- |
|
|
|
27 |
|
|
|
22 |
|
|
|
278 |
|
|
|
Loss on
Extinguishment of debt |
|
|
- |
|
|
|
- |
|
|
|
3,748 |
|
|
|
- |
|
|
|
Tax impact of non-GAAP adjustments |
|
(198 |
) |
|
|
(461 |
) |
|
|
(382 |
) |
|
|
(496 |
) |
|
Non-GAAP Net Income |
|
$ |
20,866 |
|
|
$ |
15,229 |
|
|
$ |
57,914 |
|
|
$ |
29,128 |
|
|
Weighted-average share count (Basic) |
|
|
45,061 |
|
|
|
44,288 |
|
|
|
45,101 |
|
|
|
43,822 |
|
|
Weighted-average share count (Diluted) |
|
|
45,773 |
|
|
|
45,541 |
|
|
|
46,303 |
|
|
|
44,878 |
|
|
Non-GAAP Earnings per Share (Basic) |
|
$ |
0.46 |
|
|
$ |
0.34 |
|
|
$ |
1.28 |
|
|
$ |
0.66 |
|
|
Non-GAAP Earnings per Share (Diluted) |
|
$ |
0.46 |
|
|
$ |
0.33 |
|
|
$ |
1.25 |
|
|
$ |
0.65 |
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow |
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
|
27,071 |
|
|
|
30,704 |
|
|
|
62,489 |
|
|
|
39,555 |
|
|
|
Capital
expenditures |
|
|
(2,069 |
) |
|
|
(73 |
) |
|
|
(6,819 |
) |
|
|
(5,692 |
) |
|
Free Cash Flow |
|
$ |
25,002 |
|
|
$ |
30,631 |
|
|
$ |
55,670 |
|
|
$ |
33,863 |
|
|
Free Cash Flow conversion from Adjusted EBITDA |
|
100.2 |
% |
|
|
141.6 |
% |
|
|
73.8 |
% |
|
|
57.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
AVID TECHNOLOGY, INC. |
|
|
|
|
Condensed Consolidated Balance Sheets |
|
|
|
|
(unaudited - in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31, |
December
31, |
|
|
|
|
|
2021 |
|
|
|
2020 |
|
|
|
Assets |
|
|
|
|
|
Current Assets |
|
|
|
|
|
|
Cash and
Cash Equivalents |
|
$ |
56,818 |
|
|
$ |
79,899 |
|
|
|
Restricted
Cash |
|
|
2,416 |
|
|
|
1,422 |
|
|
|
Accounts receivable, net of allowances of $1,456 and $1,478 |
|
|
|
|
at December 30, 2021 and December 31, 2020, respectively |
|
|
77,046 |
|
|
|
78,614 |
|
|
|
Inventories |
|
|
19,922 |
|
|
|
26,568 |
|
|
|
Prepaid
Expenses |
|
|
5,464 |
|
|
|
6,044 |
|
|
|
Contract
Assets |
|
|
18,903 |
|
|
|
18,579 |
|
|
|
Other
Current Assets |
|
|
1,953 |
|
|
|
2,366 |
|
|
Total Current Assets |
|
|
182,522 |
|
|
|
213,492 |
|
|
|
|
|
|
|
|
|
|
Property and
Equipment, Net |
|
|
16,028 |
|
|
|
16,814 |
|
|
|
Goodwill |
|
|
32,643 |
|
|
|
32,643 |
|
|
|
Right of Use
Assets |
|
|
24,143 |
|
|
|
29,430 |
|
|
|
Deferred Tax
Assets, Net |
|
|
5,210 |
|
|
|
6,801 |
|
|
|
Other
Long-Term Assets |
|
|
13,454 |
|
|
|
5,958 |
|
|
Total Assets |
|
$ |
274,000 |
|
|
$ |
305,138 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Deficit |
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
Accounts
Payable |
|
$ |
26,854 |
|
|
$ |
21,823 |
|
|
|
Accrued
Compensation and Benefits |
|
|
35,458 |
|
|
|
29,105 |
|
|
|
Accrued
Expenses and Other Current Liabilities |
|
|
37,552 |
|
|
|
42,264 |
|
|
|
Income Taxes
Payable |
|
|
868 |
|
|
|
1,664 |
|
|
|
Short-Term
Debt |
|
|
9,158 |
|
|
|
4,941 |
|
|
|
Deferred
Revenues |
|
|
87,475 |
|
|
|
87,974 |
|
|
Total Current Liabilities |
|
|
197,365 |
|
|
|
187,771 |
|
|
|
|
|
|
|
|
|
|
Long-Term
Debt |
|
|
160,806 |
|
|
|
202,759 |
|
|
|
Long-Term
Deferred Revenues |
|
|
10,607 |
|
|
|
11,284 |
|
|
|
Long-Term
Lease Liabilities |
|
|
23,379 |
|
|
|
28,462 |
|
|
|
Other
Long-Term Liabilities |
|
|
5,917 |
|
|
|
7,786 |
|
|
Total Liabilities |
|
|
398,074 |
|
|
|
438,062 |
|
|
|
|
|
|
|
|
|
Stockholders' Deficit |
|
|
|
|
|
|
Common
Stock |
|
|
455 |
|
|
|
442 |
|
|
|
Treasury
Stock |
|
|
(25,090 |
) |
|
|
- |
|
|
|
Additional
Paid in Capital |
|
|
1,031,633 |
|
|
|
1,036,658 |
|
|
|
Accumulated
Deficit |
|
|
(1,126,959 |
) |
|
|
(1,168,347 |
) |
|
|
Accumulated
Other Comprehensive Loss |
|
|
(4,113 |
) |
|
|
(1,677 |
) |
|
Total Stockholders' Deficit |
|
|
(124,074 |
) |
|
|
(132,924 |
) |
|
|
|
|
|
|
|
|
Total Liabilities and Stockholders' Deficit |
|
$ |
274,000 |
|
|
$ |
305,138 |
|
|
|
|
|
|
|
|
AVID TECHNOLOGY, INC. |
|
|
|
Condensed Consolidated Statements of Cash
Flows |
|
|
|
(unaudited - in thousands) |
|
|
|
|
|
|
|
Twelve
Months Ended |
|
|
|
|
December 31, |
|
|
|
|
|
2021 |
|
|
|
2020 |
|
|
|
|
|
|
|
|
Cash flows from operating activities: |
|
|
|
|
Net income |
$ |
41,388 |
|
|
$ |
11,062 |
|
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
Depreciation and amortization |
|
8,254 |
|
|
|
8,505 |
|
|
|
Provision for doubtful accounts |
|
694 |
|
|
|
1,298 |
|
|
|
Loss on extinguishment of debt |
|
2,579 |
|
|
|
- |
|
|
|
Stock-based compensation expense |
|
13,737 |
|
|
|
10,664 |
|
|
|
Non-cash provision for restructuring |
|
956 |
|
|
|
5,046 |
|
|
|
Non-cash interest expense |
|
515 |
|
|
|
3,651 |
|
|
|
Gain on extinguishment of PPP loan |
|
(7,800 |
) |
|
|
- |
|
|
|
Unrealized foreign currency transaction (gains) loss |
|
(2,101 |
) |
|
|
1,570 |
|
|
|
Provision for deferred taxes |
|
1,591 |
|
|
|
827 |
|
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
Accounts
receivable |
|
875 |
|
|
|
(6,124 |
) |
|
|
|
Inventories |
|
6,646 |
|
|
|
2,598 |
|
|
|
|
Prepaid
expenses and other assets |
|
(1,156 |
) |
|
|
6,176 |
|
|
|
|
Accounts
payable |
|
5,032 |
|
|
|
(18,141 |
) |
|
|
|
Accrued
expenses, compensation and benefits and other liabilities |
|
69 |
|
|
|
10,432 |
|
|
|
|
Income taxes
payable |
|
(796 |
) |
|
|
(281 |
) |
|
|
|
Deferred
revenue and contract assets |
|
(7,994 |
) |
|
|
2,272 |
|
Net cash provided by operating activities |
|
62,489 |
|
|
|
39,555 |
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
Purchases of property and equipment |
|
(6,819 |
) |
|
|
(5,692 |
) |
Net cash used in investing activities |
|
(6,819 |
) |
|
|
(5,692 |
) |
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
Proceeds from revolving line of credit |
|
- |
|
|
|
22,000 |
|
|
Repayment from revolving line of credit |
|
- |
|
|
|
(22,000 |
) |
|
Proceeds from long-term debt |
|
180,000 |
|
|
|
7,800 |
|
|
Repayment of debt |
|
(210,456 |
) |
|
|
(2,250 |
) |
|
Payments for repurchase of common stock |
|
(24,787 |
) |
|
|
- |
|
|
Payments for repurchase of outstanding Notes |
|
- |
|
|
|
(28,867 |
) |
|
Proceeds from the issuance of common stock under employee stock
plans |
|
808 |
|
|
|
547 |
|
|
Common stock repurchases for tax withholdings for net settlement of
equity awards |
|
(19,557 |
) |
|
|
(2,365 |
) |
|
Prepayment for loss on extinguishment of debt |
|
(1,169 |
) |
|
|
- |
|
|
Partial unwind capped call cash receipt |
|
- |
|
|
|
875 |
|
|
Payments for credit facility issuance costs |
|
(2,574 |
) |
|
|
(289 |
) |
Net cash used in financing activities |
|
(77,735 |
) |
|
|
(24,549 |
) |
|
|
|
|
|
|
|
Effect of exchange rate changes on cash, cash equivalents, and
restricted cash |
|
(1,016 |
) |
|
|
1,748 |
|
Net (decrease) increase in cash, cash equivalents, and restricted
cash |
|
(23,081 |
) |
|
|
11,062 |
|
Cash, cash equivalents and restricted cash at beginning of the
period |
$ |
83,637 |
|
|
|
72,575 |
|
Cash, cash equivalents and restricted cash at end of the
period |
$ |
60,556 |
|
|
$ |
83,637 |
|
Supplemental information: |
|
|
|
Cash and cash equivalents |
$ |
56,818 |
|
|
|
79,899 |
|
Restricted cash |
|
2,416 |
|
|
|
1,422 |
|
Restricted cash included in other long-term assets |
|
1,322 |
|
|
|
2,316 |
|
Total cash, cash equivalents and restricted cash shown in the
statement of cash flows |
$ |
60,556 |
|
|
$ |
83,637 |
|
|
|
|
|
|
|
|
AVID
TECHNOLOGY, INC. |
Supplemental
Revenue Information |
(unaudited -
in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec 31, |
|
Sep 30, |
|
Dec 31, |
|
|
|
|
|
2021 |
|
2021 |
|
2020 |
|
|
|
|
|
Revenue Backlog* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred
Revenue |
$ 98.1 |
|
$ 86.8 |
|
$ 99.3 |
|
|
|
|
Other
Backlog |
314.7 |
|
315.0 |
|
336.2 |
|
|
|
|
Total
Revenue Backlog |
$ 412.8 |
|
$ 401.8 |
|
$ 435.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The expected timing of
recognition of revenue backlog as of December 31, 2021 is as
follows: |
|
|
|
|
|
|
|
|
|
|
|
2022 |
|
2023 |
|
2024 |
|
Thereafter |
|
Total |
|
|
|
|
|
|
|
|
|
|
Deferred Revenue |
$ 87.4 |
|
$ 5.7 |
|
$ 2.9 |
|
$ 2.1 |
|
$ 98.1 |
Other Backlog |
138.6 |
|
83.3 |
|
54.9 |
|
37.9 |
|
$ 314.7 |
Total Revenue Backlog |
$ 226.0 |
|
$ 89.0 |
|
$ 57.8 |
|
$ 40.0 |
|
$ 412.8 |
|
|
|
|
|
|
|
|
|
|
*A definition of
Revenue Backlog is included in our Form 10-K and the supplemental
financial and operational data sheet available on our investor
relations webpage at ir.avid.com. |
|
|
|
|
|
|
|
|
|
|
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Contacts
Investor contact:
Whit Rappole
Avid
ir@Avid.com
PR contact:
Jim Sheehan
Avid
jim.sheehan@Avid.com
Avid Technology (NASDAQ:AVID)
Historical Stock Chart
From May 2024 to Jun 2024
Avid Technology (NASDAQ:AVID)
Historical Stock Chart
From Jun 2023 to Jun 2024