Avid® (NASDAQ: AVID), a leading technology provider that powers the
media and entertainment industry, today announced its financial
results for the second quarter of 2022, which ended on June 30,
2022.
Total revenue increased 3.0% year-over-year in the second
quarter, led by strong subscription growth, offset by continuing
macro supply chain challenges that impacted the Company’s ability
to ship a significant amount of the orders received for integrated
solutions during the first half of 2022. During the second quarter,
the recurring components of the Company’s business remained strong
with subscription revenue of $34.1 million, up 58.7%
year-over-year, and subscription & maintenance revenue of $61.9
million, up 19.2% year-over-year.
The revenue growth, combined with improved gross margin,
resulted in Non-GAAP Earnings per Share of $0.26.
Second Quarter 2022 Financial and Business
Highlights
- Subscription revenue was $34.1 million, an increase of 58.7%
year-over-year.
- Paid Cloud-enabled software subscriptions increased by 21.8%
year-over-year to approximately 450,300 as of June 30, 2022, and
increased by approximately 18,500 during the second quarter.
- Subscription and Maintenance revenue was $61.9 million, up
19.2% year-over-year.
- Annual Recurring Revenue was $231.0 million, an increase of
14.1% year-over-year.
- Subscription ARR was $121.2 million, an increase of 45.8%
year-over-year.
- Total revenue was $97.7 million, an increase of 3.0%
year-over-year.
- Gross margin was 64.9%, an increase of 150 basis points
year-over-year. Non-GAAP Gross Margin was 65.5%, an increase of 160
basis points year-over-year.
- Operating expenses were $53.4 million, an increase of 4.4%
year-over-year. Non-GAAP Operating Expenses were $49.6
million, an increase of 5.4% year-over-year.
- Net income was $7.4 million, an increase of 5.2%
year-over-year. Non-GAAP Net Income was $11.8 million, an increase
of 1.7% year-over-year.
- Adjusted EBITDA was $16.5 million, an increase of 4.1%
year-over-year. Adjusted EBITDA Margin was 16.9%, an increase of 20
basis points year-over-year.
- Net income per common share was $0.16, an increase of 6.7%
year-over-year. Non-GAAP Earnings per Share was $0.26, an increase
of 4.0% year-over-year.
- Net cash provided by operating activities was $7.3 million in
the quarter, an increase of $0.7 million compared to the second
quarter of 2021.
- Free Cash Flow was $3.2 million in the quarter, a decrease of
($2.4) million compared to the prior year period.
- LTM Recurring Revenue % was 79.7% of the Company’s revenue for
the 12 months ended June 30, 2022, up from 76.1% for the 12 months
ended June 30, 2021.
- Repurchased 559,572 shares for $14.1 million during the second
quarter, under the $115 million share repurchase authorization
announced on September 9, 2021.
Jeff Rosica, Avid’s Chief Executive Officer and President,
stated, “We are pleased by the continued growth from our
subscription software business and continued healthy demand for our
products during the second quarter.” Mr. Rosica continued, “We
delivered year-over-year revenue and earnings growth in the second
quarter despite having over $20 million of contractually committed
orders for integrated solutions at the end of June that had not
shipped in the first half due to the continued global supply chain
challenges. We expect that supply chain conditions will gradually
improve in the second half of 2022, resulting in favorable
year-over-year growth and improved profitability in full-year
2022.”
Ken Gayron, Chief Financial Officer and Executive Vice President
of Avid, added, “We continued to grow our Recurring Revenue streams
and deliver profitable year-over-year growth during the second
quarter.” Mr. Gayron continued, “Despite the challenges posed by
supply chain, we ended the quarter with revenue and Adjusted EBITDA
in line with our first half forecast and remain confident in our
business trajectory and long-term model. Additionally,
we believe our strong capital and liquidity position provides
flexibility in operating our business to drive long term strategic
value through prudent capital allocation.”
Third Quarter and Full-Year 2022 Guidance
For the third 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
reaffirming its guidance for Subscription & Maintenance Revenue
due to the continued strong demand for these offerings. While Avid
is also seeing healthy market conditions and strong demand for its
integrated solutions, the impact on its integrated solutions
business from the global supply chain challenges and the expected
timing of the recovery from these challenges are adding variability
to its full-year 2022 business plans. As a result, Avid is widening
the range for full-year 2022 total revenue guidance, while keeping
the same midpoint, to better reflect the range of possible outcomes
for the year. Avid is adjusting its full-year guidance for Adjusted
EBITDA and Non-GAAP EPS to reflect the wider revenue range. Avid is
also adjusting its Free Cash Flow guidance for full-year 2022 as a
result of several factors. First, Avid is seeing more rapid
adoption of enterprise subscriptions globally—which is
strategically important for the company and is positive for its
long-term model, but which has different near term cash conversion
characteristics than its individual creatives subscription
business. Second, the expected timing of Avid’s integrated
solutions manufacturing recovery happening later in the second half
will likely lead to some cash collections from these shipments
falling into early 2023. And third, to the extent it can, Avid
plans to temporarily build up its inventories to a level that will
provide a sufficient buffer and greater flexibility to better
navigate the variability in anticipated supply chain conditions
over the next several quarters, and most importantly, to better
meet the strong demand the company is seeing.
($ in millions, except per share
amounts) |
|
Q3 2022 Guidance |
Revenue |
|
$100 – $112 |
Subscription & Maintenance
Revenue |
|
$67 – $70 |
Non-GAAP Earnings per
Share |
|
$0.27 – $0.39 |
Adjusted EBITDA |
|
$17.5 – $23.5 |
Q3 Non-GAAP
Earnings per Share assumes 45.0 million shares outstanding. |
|
|
|
|
|
Full-Year 2022 Guidance |
Revenue |
|
$425 – $455 |
Subscription & Maintenance
Revenue |
|
$266 – $274 |
Non-GAAP Earnings per
Share |
|
$1.37 – $1.53 |
Adjusted EBITDA |
|
$83 – $95 |
Free Cash Flow |
|
$45 – $59 |
2022 Non-GAAP
Earnings per Share assumes 45.2 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 Q2 2022 Earnings presentation posted on Avid’s Investor
Relations website at ir.Avid.com.
Conference Call to Discuss Second Quarter 2022 Results
on August 2, 2022
Avid will host a conference call to discuss its financial
results for the second quarter 2022 on Tuesday, August 2, 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. Please connect at least 5 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.
Management to Participate in the Oppenheimer 25th Annual
Technology, Internet & Communications Conference on August
9
What: Oppenheimer 25th Annual
Technology, Internet & Communications Conference Participants:
Jeff Rosica, Chief Executive Officer and President
Ken Gayron,
Chief Financial Officer and EVPType: Group presentation and 1x1
meetingsDate: Tuesday, August 9, 2022 Group presentation time: 8:15
a.m. ETThe group presentation will be available to the public via
live webcast, and a replay will be available for a limited period.
For details on how to watch online, please visit the Events &
Presentations tab at http://ir.avid.com.
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,
Annual Recurring Revenue (ARR), Subscription ARR, 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 ongoing coronavirus
(COVID-19) pandemic and subsequent variants on our business,
suppliers, consumers, customers and employees; economic, social,
and political instability, security concerns, and the risk of war,
armed conflict and/or cyber conflict, particularly originating in,
and complicated by, areas of heightened geopolitical tension and
open conflict such as Ukraine, where we have outsourced research
and development activities, Russia, and bordering territories; 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, inefficiencies,
and/or complications in our operations and/or dynamic and
unpredictable global supply chain, including interruptions, delays,
complications, and other impacts related to armed conflict and/or
cyber conflict and related international sanctions and reprisals
and the ongoing COVID-19 pandemic and subsequent variants; the
costs, disruption, and diversion of management's attention due to
the ongoing COVID-19 pandemic and subsequent variants, armed
conflict and/or cyber conflict and related international sanctions
and reprisals; 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.
Contacts
Investor contact:Whit RappoleAvidir@Avid.com |
|
PR contact:Jim SheehanAvidjim.sheehan@Avid.com |
|
|
|
AVID TECHNOLOGY, INC. |
|
|
|
|
|
|
|
|
Condensed Consolidated Statements of
Operations |
|
|
|
|
|
|
|
|
(unaudited - in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
Net revenues: |
|
|
|
|
|
|
|
|
Subscription |
|
$ |
34,142 |
|
|
$ |
21,508 |
|
|
$ |
67,096 |
|
|
$ |
46,376 |
|
Maintenance |
|
|
27,775 |
|
|
|
30,443 |
|
|
|
56,102 |
|
|
|
60,295 |
|
Integrated solutions & other |
|
|
35,763 |
|
|
|
42,925 |
|
|
|
75,131 |
|
|
|
82,569 |
|
Total net revenues |
|
|
97,680 |
|
|
|
94,876 |
|
|
|
198,329 |
|
|
|
189,240 |
|
|
|
|
|
|
|
|
|
|
Cost of revenues: |
|
|
|
|
|
|
|
|
Subscription |
|
|
6,292 |
|
|
|
3,575 |
|
|
|
11,894 |
|
|
|
6,190 |
|
Maintenance |
|
|
5,253 |
|
|
|
5,822 |
|
|
|
10,530 |
|
|
|
11,396 |
|
Integrated solutions & other |
|
|
22,769 |
|
|
|
25,341 |
|
|
|
45,775 |
|
|
|
50,100 |
|
Total cost of revenues |
|
|
34,314 |
|
|
|
34,738 |
|
|
|
68,199 |
|
|
|
67,686 |
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
63,366 |
|
|
|
60,138 |
|
|
|
130,130 |
|
|
|
121,554 |
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Research and development |
|
|
16,023 |
|
|
|
16,093 |
|
|
|
32,759 |
|
|
|
31,510 |
|
Marketing and selling |
|
|
23,673 |
|
|
|
21,354 |
|
|
|
45,600 |
|
|
|
42,098 |
|
General and administrative |
|
|
13,364 |
|
|
|
13,678 |
|
|
|
28,175 |
|
|
|
27,313 |
|
Restructuring costs, net |
|
|
342 |
|
|
|
15 |
|
|
|
357 |
|
|
|
1,089 |
|
Total operating expenses |
|
|
53,402 |
|
|
|
51,140 |
|
|
|
106,891 |
|
|
|
102,010 |
|
|
|
|
|
|
|
|
|
|
Operating income |
|
|
9,964 |
|
|
|
8,998 |
|
|
|
23,239 |
|
|
|
19,544 |
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
(1,944 |
) |
|
|
(1,783 |
) |
|
|
(3,420 |
) |
|
|
(3,901 |
) |
Other income (expense), net |
|
|
79 |
|
|
|
150 |
|
|
|
(8 |
) |
|
|
(3,405 |
) |
Income before income taxes |
|
|
8,099 |
|
|
|
7,365 |
|
|
|
19,811 |
|
|
|
12,238 |
|
|
|
|
|
|
|
|
|
|
Provision for income taxes |
|
|
726 |
|
|
|
359 |
|
|
|
1,852 |
|
|
|
841 |
|
Net income |
|
$ |
7,373 |
|
|
$ |
7,006 |
|
|
$ |
17,959 |
|
|
$ |
11,397 |
|
|
|
|
|
|
|
|
|
|
Net income per common share - basic |
|
$ |
0.16 |
|
|
$ |
0.15 |
|
|
$ |
0.40 |
|
|
$ |
0.25 |
|
Net income per common share - diluted |
|
$ |
0.16 |
|
|
$ |
0.15 |
|
|
$ |
0.40 |
|
|
$ |
0.25 |
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding - basic |
|
|
44,740 |
|
|
|
45,211 |
|
|
|
44,778 |
|
|
|
44,887 |
|
Weighted-average common shares outstanding - diluted |
|
|
45,110 |
|
|
|
46,550 |
|
|
|
45,280 |
|
|
|
46,420 |
|
|
|
|
|
|
|
|
|
|
AVID TECHNOLOGY, INC. |
|
|
|
|
|
|
|
|
Reconciliations of GAAP Financial Measures to Non-GAAP
Financial Measures |
|
|
|
|
(unaudited - in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
GAAP Revenue |
|
|
|
|
|
|
|
|
GAAP Revenue |
|
$ |
97,680 |
|
|
$ |
94,876 |
|
|
$ |
198,329 |
|
|
$ |
189,240 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP Gross Profit |
|
|
|
|
|
|
|
|
GAAP Gross Profit |
|
|
63,366 |
|
|
|
60,138 |
|
|
|
130,130 |
|
|
|
121,554 |
|
Stock-based compensation |
|
|
589 |
|
|
|
478 |
|
|
|
1,015 |
|
|
|
918 |
|
Non-GAAP Gross Profit |
|
$ |
63,955 |
|
|
$ |
60,616 |
|
|
$ |
131,145 |
|
|
$ |
122,472 |
|
GAAP Gross Margin |
|
|
64.9 |
% |
|
|
63.4 |
% |
|
|
65.6 |
% |
|
|
64.2 |
% |
Non-GAAP Gross Margin |
|
|
65.5 |
% |
|
|
63.9 |
% |
|
|
66.1 |
% |
|
|
64.7 |
% |
|
|
|
|
|
|
|
|
|
Non-GAAP Operating Expenses |
|
|
|
|
|
|
|
|
GAAP Operating Expenses |
|
|
53,402 |
|
|
|
51,140 |
|
|
|
106,891 |
|
|
|
102,010 |
|
Less Amortization of intangible assets |
|
|
(57 |
) |
|
|
(105 |
) |
|
|
(115 |
) |
|
|
(210 |
) |
Less Stock-based compensation |
|
|
(3,056 |
) |
|
|
(3,159 |
) |
|
|
(6,052 |
) |
|
|
(6,136 |
) |
Less Restructuring costs, net |
|
|
(342 |
) |
|
|
(15 |
) |
|
|
(357 |
) |
|
|
(1,089 |
) |
Less Acquisition, integration and other costs |
|
|
50 |
|
|
|
(838 |
) |
|
|
(409 |
) |
|
|
(1,207 |
) |
Less Efficiency program costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(48 |
) |
Less Digital Transformation Initiative |
|
|
(445 |
) |
|
|
- |
|
|
|
(688 |
) |
|
|
- |
|
Less COVID-19 related expenses |
|
|
- |
|
|
|
(20 |
) |
|
|
- |
|
|
|
(22 |
) |
Non-GAAP Operating Expenses |
|
$ |
49,552 |
|
|
$ |
47,003 |
|
|
$ |
99,270 |
|
|
$ |
93,298 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP Operating Income and Adjusted EBITDA |
|
|
|
|
|
|
|
|
GAAP net income |
|
|
7,373 |
|
|
|
7,006 |
|
|
|
17,959 |
|
|
|
11,397 |
|
Interest and other expense |
|
|
1,865 |
|
|
|
1,633 |
|
|
|
3,428 |
|
|
|
7,306 |
|
Provision for income taxes |
|
|
726 |
|
|
|
359 |
|
|
|
1,852 |
|
|
|
841 |
|
GAAP Operating Income |
|
|
9,964 |
|
|
|
8,998 |
|
|
|
23,239 |
|
|
|
19,544 |
|
Amortization of intangible assets |
|
|
57 |
|
|
|
105 |
|
|
|
115 |
|
|
|
210 |
|
Stock-based compensation |
|
|
3,645 |
|
|
|
3,637 |
|
|
|
7,067 |
|
|
|
7,054 |
|
Restructuring costs, net |
|
|
342 |
|
|
|
15 |
|
|
|
357 |
|
|
|
1,089 |
|
Acquisition, integration and other costs |
|
(50 |
) |
|
|
838 |
|
|
|
409 |
|
|
|
1,207 |
|
Efficiency program costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
48 |
|
Digital Transformation Initiative |
|
|
445 |
|
|
|
- |
|
|
|
688 |
|
|
|
- |
|
COVID-19 related expenses |
|
|
- |
|
|
|
20 |
|
|
|
- |
|
|
|
22 |
|
Non-GAAP Operating Income |
|
$ |
14,403 |
|
|
$ |
13,613 |
|
|
$ |
31,875 |
|
|
$ |
29,174 |
|
Depreciation |
|
|
2,066 |
|
|
|
2,202 |
|
|
|
3,869 |
|
|
|
4,321 |
|
Adjusted EBITDA |
|
$ |
16,469 |
|
|
$ |
15,815 |
|
|
$ |
35,744 |
|
|
$ |
33,495 |
|
GAAP net income margin |
|
|
7.5 |
% |
|
|
7.4 |
% |
|
|
9.1 |
% |
|
|
6.0 |
% |
Adjusted EBITDA Margin |
|
|
16.9 |
% |
|
|
16.7 |
% |
|
|
18.0 |
% |
|
|
17.7 |
% |
|
|
|
|
|
|
|
|
|
Non-GAAP Net Income |
|
|
|
|
|
|
|
|
GAAP net income |
|
|
7,373 |
|
|
|
7,006 |
|
|
|
17,959 |
|
|
|
11,397 |
|
Amortization of intangible assets |
|
|
57 |
|
|
|
105 |
|
|
|
115 |
|
|
|
210 |
|
Stock-based compensation |
|
|
3,645 |
|
|
|
3,637 |
|
|
|
7,067 |
|
|
|
7,054 |
|
Restructuring costs, net |
|
|
342 |
|
|
|
15 |
|
|
|
357 |
|
|
|
1,089 |
|
Acquisition, integration and other costs |
|
(50 |
) |
|
|
838 |
|
|
|
409 |
|
|
|
1,207 |
|
Efficiency program costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
48 |
|
Digital Transformation Initiative |
|
|
445 |
|
|
|
- |
|
|
|
688 |
|
|
|
- |
|
COVID-19 related expenses |
|
|
- |
|
|
|
20 |
|
|
|
- |
|
|
|
22 |
|
Loss on Extinguishment of debt |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
3,748 |
|
Tax impact of non-GAAP adjustments |
|
|
- |
|
|
|
(10 |
) |
|
|
(3 |
) |
|
|
(159 |
) |
Non-GAAP Net Income |
|
$ |
11,812 |
|
|
$ |
11,611 |
|
|
$ |
26,592 |
|
|
$ |
24,616 |
|
Weighted-average share count (Basic) |
|
|
44,740 |
|
|
|
45,211 |
|
|
|
44,778 |
|
|
|
44,887 |
|
Weighted-average share count (Diluted) |
|
|
45,110 |
|
|
|
46,550 |
|
|
|
45,280 |
|
|
|
46,420 |
|
Non-GAAP Earnings per Share (Basic) |
|
$ |
0.26 |
|
|
$ |
0.26 |
|
|
$ |
0.59 |
|
|
$ |
0.55 |
|
Non-GAAP Earnings per Share (Diluted) |
|
$ |
0.26 |
|
|
$ |
0.25 |
|
|
$ |
0.59 |
|
|
$ |
0.53 |
|
|
|
|
|
|
|
|
|
|
Free Cash Flow |
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
|
7,305 |
|
|
|
6,585 |
|
|
|
15,221 |
|
|
|
18,898 |
|
Capital expenditures |
|
|
(4,115 |
) |
|
|
(1,021 |
) |
|
|
(7,359 |
) |
|
|
(2,275 |
) |
Free Cash Flow |
|
$ |
3,190 |
|
|
$ |
5,564 |
|
|
$ |
7,862 |
|
|
$ |
16,623 |
|
Free Cash Flow conversion from Adjusted EBITDA |
|
|
19.4 |
% |
|
|
35.2 |
% |
|
|
22.0 |
% |
|
|
49.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVID
TECHNOLOGY, INC. |
|
|
|
|
Condensed Consolidated Balance Sheets |
|
|
|
|
(unaudited -
in thousands) |
|
|
|
|
|
|
June
30, |
|
December
31, |
|
|
|
2022 |
|
|
|
2021 |
|
Assets |
|
|
|
|
Current
Assets |
|
|
|
|
Cash and Cash Equivalents |
|
|
44,332 |
|
|
$ |
56,818 |
|
Restricted Cash |
|
|
2,413 |
|
|
|
2,416 |
|
Accounts receivable, net of allowances of $1,653 and $1,456 at June
30, 2022 and December 31, 2021, respectively |
|
|
53,878 |
|
|
|
77,046 |
|
Inventories |
|
|
19,249 |
|
|
|
19,922 |
|
Prepaid Expenses |
|
|
9,003 |
|
|
|
5,464 |
|
Contract Assets |
|
|
20,950 |
|
|
|
18,903 |
|
Other Current Assets |
|
|
2,199 |
|
|
|
1,953 |
|
Total
Current Assets |
|
|
152,024 |
|
|
|
182,522 |
|
|
|
|
|
|
Property and Equipment, Net |
|
|
19,689 |
|
|
|
16,028 |
|
Goodwill |
|
|
32,643 |
|
|
|
32,643 |
|
Right of Use Assets |
|
|
21,874 |
|
|
|
24,143 |
|
Deferred Tax Assets, Net |
|
|
3,600 |
|
|
|
5,210 |
|
Other Long-Term Assets |
|
|
17,292 |
|
|
|
13,454 |
|
Total
Assets |
|
$ |
247,122 |
|
|
$ |
274,000 |
|
|
|
|
|
|
Liabilities and Stockholders' Deficit |
|
|
|
|
Current
Liabilities |
|
|
|
|
Accounts Payable |
|
|
32,899 |
|
|
$ |
26,854 |
|
Accrued Compensation and Benefits |
|
|
21,568 |
|
|
|
35,458 |
|
Accrued Expenses and Other Current Liabilities |
|
|
34,902 |
|
|
|
37,552 |
|
Income Taxes Payable |
|
|
92 |
|
|
|
868 |
|
Short-Term Debt |
|
|
8,701 |
|
|
|
9,158 |
|
Deferred Revenues |
|
|
68,724 |
|
|
|
87,475 |
|
Total
Current Liabilities |
|
|
166,886 |
|
|
|
197,365 |
|
|
|
|
|
|
Long-Term Debt |
|
|
177,782 |
|
|
|
160,806 |
|
Long-Term Deferred Revenues |
|
|
12,209 |
|
|
|
10,607 |
|
Long-Term Lease Liabilities |
|
|
21,298 |
|
|
|
23,379 |
|
Other Long-Term Liabilities |
|
|
5,307 |
|
|
|
5,917 |
|
Total
Liabilities |
|
|
383,482 |
|
|
|
398,074 |
|
|
|
|
|
|
Stockholders' Deficit |
|
|
|
|
Common Stock |
|
|
461 |
|
|
|
455 |
|
Treasury Stock |
|
|
(50,049 |
) |
|
|
(25,090 |
) |
Additional paid-in capital |
|
|
1,028,277 |
|
|
|
1,031,633 |
|
Accumulated Deficit |
|
|
(1,109,000 |
) |
|
|
(1,126,959 |
) |
Accumulated Other Comprehensive Loss |
|
|
(6,049 |
) |
|
|
(4,113 |
) |
Total
Stockholders' Deficit |
|
|
(136,360 |
) |
|
|
(124,074 |
) |
|
|
|
|
|
Total
Liabilities and Stockholders' Deficit |
|
$ |
247,122 |
|
|
$ |
274,000 |
|
|
|
|
|
|
AVID TECHNOLOGY, INC. |
|
|
|
Condensed Consolidated Statements of Cash
Flows |
|
|
|
(unaudited - in thousands) |
|
|
|
|
Six Months Ended |
|
June 30, |
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
Cash flows from operating activities: |
|
|
|
Net income |
$ |
17,959 |
|
|
$ |
11,397 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
Depreciation and amortization |
|
3,869 |
|
|
|
4,321 |
|
Provision for doubtful accounts |
|
222 |
|
|
|
270 |
|
Stock-based compensation expense |
|
7,067 |
|
|
|
6,702 |
|
Non-cash provision for restructuring |
|
338 |
|
|
|
927 |
|
Non-cash interest expense |
|
247 |
|
|
|
257 |
|
Loss on extinguishment of debt |
|
- |
|
|
|
2,579 |
|
Loss on Disposal of Fixed Assets |
|
548 |
|
|
|
- |
|
Unrealized foreign currency transaction gains |
|
(1,729 |
) |
|
|
(1,468 |
) |
Benefit from deferred taxes |
|
1,610 |
|
|
|
547 |
|
Changes in operating assets and liabilities: |
|
|
|
Accounts receivable |
|
22,945 |
|
|
|
19,599 |
|
Inventories |
|
672 |
|
|
|
2,326 |
|
Prepaid expenses and other assets |
|
(5,664 |
) |
|
|
(2,629 |
) |
Accounts payable |
|
6,044 |
|
|
|
(48 |
) |
Accrued expenses, compensation and benefits and other
liabilities |
|
(16,105 |
) |
|
|
(14,942 |
) |
Income taxes payable |
|
(776 |
) |
|
|
(16 |
) |
Deferred revenue and contract assets |
|
(22,026 |
) |
|
|
(10,924 |
) |
Net cash provided by operating activities |
|
15,221 |
|
|
|
18,898 |
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
Purchases of property and equipment |
|
(7,359 |
) |
|
|
(2,275 |
) |
Net cash used in investing activities |
|
(7,359 |
) |
|
|
(2,275 |
) |
|
|
|
|
Cash flows from financing activities: |
|
|
|
Proceeds from revolving credit facility |
|
19,000 |
|
|
|
- |
|
Proceeds from long-term debt |
|
- |
|
|
|
180,000 |
|
Repayment of debt |
|
(2,288 |
) |
|
|
(205,824 |
) |
Payments for repurchase of common stock |
|
(25,262 |
) |
|
|
- |
|
Proceeds from the issuance of common stock under employee stock
plans |
|
468 |
|
|
|
363 |
|
Common stock repurchases for tax withholdings for net settlement of
equity awards |
|
(10,885 |
) |
|
|
(14,038 |
) |
Prepayment penalty on extinguishment of debt |
|
- |
|
|
|
(1,169 |
) |
Payments for credit facility issuance costs |
|
(440 |
) |
|
|
(2,574 |
) |
Net cash used in financing activities |
|
(19,407 |
) |
|
|
(43,242 |
) |
|
|
|
|
Effect of exchange rate changes on cash, cash equivalents, and
restricted cash |
|
(941 |
) |
|
|
56 |
|
Net decrease in cash, cash equivalents, and restricted cash |
|
(12,486 |
) |
|
|
(26,563 |
) |
Cash, cash equivalents and restricted cash at beginning of the
period |
$ |
60,556 |
|
|
|
83,638 |
|
Cash, cash equivalents and restricted cash at end of the
period |
$ |
48,070 |
|
|
$ |
57,075 |
|
Supplemental information: |
|
|
|
Cash and cash equivalents |
|
44,332 |
|
|
$ |
53,337 |
|
Restricted cash |
|
2,413 |
|
|
|
1,422 |
|
Restricted cash included in other long-term assets |
|
1,325 |
|
|
|
2,316 |
|
Total cash, cash equivalents and restricted cash shown in the
statement of cash flows |
$ |
48,070 |
|
|
$ |
57,075 |
|
|
|
|
|
AVID
TECHNOLOGY, INC. |
|
Supplemental Revenue Information |
|
|
|
|
|
(unaudited -
in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
March 31, |
|
June 30, |
|
|
|
|
|
|
|
2022 |
|
2022 |
|
2021 |
|
|
|
|
|
|
|
Revenue Backlog* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred
Revenue |
$ |
80.9 |
|
$ |
92.3 |
|
$ |
91.6 |
|
|
|
|
|
|
Other
Backlog |
$ |
285.4 |
|
$ |
283.0 |
|
$ |
309.4 |
|
|
|
|
|
|
Total
Revenue Backlog |
$ |
366.3 |
|
$ |
375.3 |
|
$ |
401.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The expected timing of recognition of revenue backlog as of March
31, 2022 is as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022 |
|
2023 |
|
2024 |
|
2025 |
|
Thereafter |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
Deferred Revenue |
$ |
52.2 |
|
$ |
20.7 |
|
$ |
4.9 |
|
$ |
2.0 |
|
$ |
1.2 |
|
$ |
80.9 |
Other Backlog |
74.6 |
|
87.0 |
|
62.4 |
|
33.0 |
|
28.4 |
|
$ |
285.4 |
Total Revenue Backlog |
$ |
126.7 |
|
$ |
107.6 |
|
$ |
67.3 |
|
$ |
35.0 |
|
$ |
29.6 |
|
$ |
366.3 |
|
|
|
|
|
|
|
|
|
|
|
|
*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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