MeridianLink Reports Fourth Quarter and Fiscal Year 2021 Results|||

Revenue of $64.0 1000000 grows 19% year-over-year

COSTA MESA, Calif.–(Business organization WIRE)–$MLNK #earnings–MeridianLink, Inc. (NYSE: MLNK), a leading provider of modern software platforms for fiscal institutions and consumer reporting agencies, today announced financial results for the fourth quarter and fiscal year ended Dec 31, 2021.

“2021 was a momentous year for the company, and we are immensely proud of our track record of proven results, including 19% year-over-year revenue growth and 38% adjusted EBITDA margins for Q4,” said Nicolaas Vlok, master executive officer of MeridianLink. “Our solid performance in Q4 and throughout the twelvemonth highlights the trust that financial institutions and consumer reporting agencies identify in our solutions equally a central commuter of their growth acceleration and rapid digitalization. We are in the right place at the right time to assist new and existing customers fuel future growth, and I am confident that the coming year will bring many more opportunities.”

Quarterly Financial Highlights:

  • Acquirement of $64.0 million, an increase of 19% twelvemonth-over-year
  • Operating income of $vii.8 1000000, or 12% of revenue and Non-GAAP operating turn a profit of $eleven.7 million, or 18% of revenue
  • Adjusted EBITDA of $24.half dozen meg, or 38% of revenue
  • Cash menstruation from operations of $20.8 million, and Free Cash Menstruation of $19.iv million

Business and Operating Highlights:

  • The company exceeded guidance again in Q4, with GAAP Revenue up nineteen% year-over-year to $64.0 million and 38% Adjusted EBITDA margins
  • MeridianLink saw strong momentum in the fourth quarter on the consumer side of the business, upward 23% twelvemonth-over-twelvemonth, with growth driven, in function, by the reinvestment of the mortgage-related upside into the consumer business over the last several quarters
  • The company launched MeridianLink Engage, a unique and comprehensive end-to-end consumer lending, account, and card marketing automation solution, in beta in Q4 and expanded to full general availability in January 2022

Business Outlook

Based on data every bit of today, March ten, 2022, the Visitor issues first quarter financial guidance and initiates total year 2022 financial guidance as follows:

Starting time Quarter Fiscal 2022:

  • Revenue is expected to exist in the range of $68.3 million to $69.three million
  • Adapted EBITDA is expected to be in the range of $26.5 million to $27.5 1000000

Full Year 2022:

  • Revenue is expected to be in the range of $288.0 million to $292.0 million
  • Adjusted EBITDA is expected to be in the range of $112.0 meg to $116.0 million

Conference Call Data

MeridianLink volition concur a conference call to discuss our fourth quarter and fiscal yr 2021 results today, March 10, 2022, at 2:00 p.m. Pacific Time (5:00 p.thou. Eastern Time). The conference phone call tin can be accessed by dialing (877) 284-4396 from the United states of america and Canada or (873) 415-0298 internationally with conference ID 4345428. A alive webcast of the conference phone call tin can be accessed from the investor relations page of MeridianLink’southward website at ir.meridianlink.com. An archived replay of the webcast volition be bachelor at the aforementioned website following the conclusion of the call. A telephonic replay will exist available until approximately 8:59 p.m. Pacific Time (11:59 p.m. Eastern Time) on Thursday, March 17, 2022, at (800) 585-8367 from the The states and Canada or (416) 621-4642 internationally with conference ID 4345428.

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 ane,900 customers, including a majority of the fiscal institutions on Forbes’ 2021 lists of America’s All-time Credit Unions and Banks. Further information tin can be found at www.meridianlink.com.

Non-GAAP Financial Measures

To supplement the financial measures presented in accordance with more often than not accepted accounting principles, or GAAP, nosotros provide certain non-GAAP fiscal measures, such every bit adjusted EBITDA and adjusted EBITDA margin; non-GAAP operating income (loss); non-GAAP internet income (loss); not-GAAP cost of revenue; non-GAAP sales and marketing expenses; non-GAAP research and development expenses; not-GAAP general and administrative expenses; and free greenbacks catamenia. The presentation of these financial measures is non intended to be considered in isolation or every bit a substitute for, or superior to, fiscal information prepared and presented in accordance with GAAP. Rather, nosotros 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 betwixt 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, share-based compensation expense, employer payroll taxes on employee stock transactions, certain expenses associated with our IPO, sponsor and third-party acquisition related costs, losses resulting from early repayment of debt, lease termination charges, and deferred acquirement reductions from purchase accounting
  • Not-GAAP operating income: GAAP income (loss) from operations, excluding the impact of share-based compensation, employer payroll taxes on employee stock transactions, and sponsor and third-party acquisition-related costs
  • Non-GAAP net income: GAAP net income (loss), excluding the impact of share-based compensation, employer payroll taxes on employee stock transactions, and sponsor and tertiary-party acquisition-related costs
  • Not-GAAP cost of revenue: GAAP cost of revenue, excluding the impact of share-based compensation, employer payroll taxes on employee stock transactions, and acquittal of developed applied science
  • Non-GAAP operating expenses: GAAP operating expenses, excluding the impact of share-based bounty and employer payroll taxes on employee stock transactions
  • Free cash period: GAAP cash menstruation from operating activities plus GAAP purchases of holding and equipment (Uppercase Expenditures) and capitalized costs related to adult engineering (Capitalized Software)
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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 sure frontward-looking non-GAAP financial measures as the GAAP measures are not accessible on a forward-looking footing. We cannot reliably predict all necessary components or their bear upon to reconcile such financial measures without unreasonable effort. The events necessitating a non-GAAP aligning are inherently unpredictable and may have a significant touch on our future GAAP financial results.

Forrard-Looking Statements

This release contains, and our to a higher place-referenced briefing call and webcast will contain, statements which are non historical facts and are considered forward-looking inside the pregnant of Department 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Mostly, these statements can exist identified by the apply of words such every bit “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 forwards-looking statements. These frontward-looking statements reverberate our predictions, expectations, or forecasts, including, but not limited to, statements regarding, and guidance with respect to, our future financial and operational functioning, our strategic initiatives, our development or delivery of new or enhanced solutions, our market size and growth opportunities, and our competitive positioning. Bodily results may differ materially from those described in the forward-looking statements and will be afflicted by a variety of risks and factors that are across our command including, without limitation, risks related to our business and industry, every bit well as those prepare forth under the explanation “Risk Factors” in our final prospectus filed on July 28, 2021, and our other SEC filings. Additional information will also be set forth in Particular 1A. Take a chance Factors, or elsewhere, in our Almanac Report on Course x-Thou for the year ended December 31, 2021. Any forward-looking argument contained herein or provided on the related conference call is based on reasonable assumptions every bit of the appointment hereof. You lot should not rely upon frontward-looking statements as predictions of time to come events. Nosotros undertake no obligation, other than as required past applicable police, to update whatsoever forwards-looking statements, whether every bit a result of new information, time to come events, or otherwise.

Consolidated Balance Sheets

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

December 31,

Dec 31,

2021

2020

Assets

Current assets:

Cash and cash equivalents

$

113,645

$

37,739

Restricted cash

ii,142

Accounts receivable, internet of allowance for hundred-to-one accounts

24,913

22,358

Prepaid expenses and other current avails

9,398

5,812

Related party receivable from sellers of MeridianLink

four,123

Full current assets

147,956

72,174

Belongings and equipment, net

5,989

seven,600

Intangible assets, internet

298,597

328,032

Deferred tax assets, net

4,286

nine,484

Goodwill

564,799

542,965

Other assets

4,266

3,450

Total assets

$

1,025,893

$

963,705

Liabilities, Preferred Units, and Stockholders’ Equity/Members’ Deficit

Electric current liabilities:

Accounts payable

$

two,335

$

2,257

Accrued liabilities

24,667

21,070

Deferred revenue

14,707

x,873

TazWorks, LLC purchase liability

85,646

Related political party liability due to sellers of MeridianLink

30,000

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

ii,139

ii,955

Total current liabilities

43,848

152,801

Long-term debt, net of debt issuance costs

425,371

516,877

Deferred rent

396

543

Total liabilities

469,615

670,221

Commitments and contingencies

Class A preferred units, no par value; unlimited units authorized, 319,913 units issued and outstanding at December 31, 2020; liquidation preference of $402,607 at December 31, 2020

319,913

Stockholders’ Equity/Members’ Arrears

Preferred stock, $0.001 par value; 50,000,000 shares authorized at Dec 31, 2021; null shares issued and outstanding at Dec 31, 2021

Mutual stock, $0.001 par value; 600,000,000 shares authorized, 79,734,984 shares issued and outstanding at December 31, 2021

88

Class B mutual units, no par value; unlimited units authorized, 51,492,805 units issued and outstanding at December 31, 2020

Additional paid-in uppercase

596,542

three,909

Accumulated deficit

(xl,352

)

(30,338

)

Full stockholders’ equity/members’ deficit

556,278

(26,429

)

Full liabilities, preferred units, and stockholders’ equity/members’ deficit

$

1,025,893

$

963,705

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Consolidated Statements of Operations

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

Three Months Concluded December 31,

Year Ended December 31,

2021

2020

2021

2020

Revenues, net

$

64,024

$

53,933

$

267,676

$

199,340

Price of revenues:

Subscription and services

19,025

thirteen,571

77,103

49,480

Amortization of developed technology

3,329

2,457

12,519

eight,874

Total cost of revenues

22,354

16,028

89,622

58,354

Gross profit

41,670

37,905

178,054

140,986

Operating expenses:

General and administrative

21,057

14,347

85,160

54,640

Research and development

viii,529

5,109

36,336

18,691

Sales and marketing

iv,305

2,866

eighteen,122

9,371

Loss on termination of financing obligation due to related party

5,755

5,755

Harm of trademarks

five,362

5,362

Acquisition related costs

1,579

781

1,579

Total operating expenses

33,891

35,018

140,399

95,398

Operating income

7,779

2,887

37,655

45,588

Other (income) expense, internet:

Other income

(10

)

(24

)

(49

)

(41

)

Interest expense, net

5,542

8,653

32,615

34,686

Loss on debt repayment and extinguishment

five,593

nine,944

Total other expense, net

11,125

viii,629

42,510

34,645

Income (loss) before provision for income taxes

(iii,346

)

(5,742

)

(4,855

)

10,943

Provision for (benefit from) income taxes

(133

)

(1,653

)

5,141

1,792

Net income (loss)

$

(3,213

)

$

(4,089

)

$

(9,996

)

$

9,151

Class A preferred return

(8,931

)

(20,944

)

(34,411

)

Net loss attributable to common stockholders

$

(iii,213

)

$

(13,020

)

$

(xxx,940

)

$

(25,260

)

Weighted average common stock outstanding – basic and diluted

79,596,418

51,393,573

63,813,770

51,153,041

Net loss per share – basic and diluted

$

(0.04

)

$

(0.25

)

$

(0.48

)

$

(0.49

)

Net Revenues by Major Source

(unaudited)

(in thousands)

3 Months Ended Dec 31,

Twelvemonth Ended December 31,

2021

2020

2021

2020

Subscription fees

$

55,757

$

47,460

$

235,489

$

177,039

Professional person services

five,895

4,914

22,707

16,301

Other

ii,372

1,559

9,480

6,000

Full

$

64,024

$

53,933

$

267,676

$

199,340

Net Revenues by Solution Type

(unaudited)

(in thousands)

Iii Months Ended December 31,

Twelvemonth Ended December 31,

2021

2020

2021

2020

Lending software solutions

$

43,759

$

37,054

$

176,793

$

133,754

Information verification software solutions

xx,265

16,879

xc,883

65,586

Full
(1)

$

64,024

$

53,933

$

267,676

$

199,340

% Growth attributable to:

TCI and TazWorks

xiii

%

21

%

Lending software solutions

9

%

12

%

Data verification software

(3

) %

ane

%

Total % growth

19

%

34

%

(1)
% Revenue related to mortgage loan market:

Lending software solutions

9

%

12

%

9

%

12

%

Information verification software

68

%

94

%

lxx

%

93

%

Total % revenue related to mortgage loan market

27

%

38

%

30

%

39

%

Consolidated Statements of Cash Flows

(in thousands)

Twelvemonth Ended December 31,

2021

2020

Cash flows from operating activities:

Net income (loss)

$

(9,996

)

$

9,151

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

Depreciation and amortization

50,453

forty,199

Amortization of debt issuance costs

3,413

1,758

Share-based bounty expense

30,736

ii,841

Loss on disposal of fixed assets and termination of financing obligation

524

5,823

Impairment of trademarks

5,362

Loss on sublease liability

405

Loss on debt repayment and extinguishment

9,944

Other adjustments

(eighteen

)

Deferred income taxes

4,926

1,555

Changes in operating assets and liabilities:

Accounts receivable

one,619

(3,184

)

Prepaid expenses and other avails

(5,726

)

(2,058

)

Accounts payable

117

i,536

Accrued liabilities

(302

)

2,650

Deferred acquirement

3,834

1,923

Deferred rent

(94

)

(77

)

Net greenbacks provided by operating activities

89,835

67,479

Cash flows from investing activities:

Acquisition, net of cash acquired – Teledata Communications, Inc.

(103,055

)

Acquisition, net of cash acquired – TazWorks, LLC

(84,605

)

(five,000

)

Acquisition, cyberspace of greenbacks and restricted greenbacks caused – Saylent Technologies, Inc.

(35,945

)

Capitalized software additions

(4,906

)

(3,196

)

Purchases of property and equipment

(843

)

(4,141

)

Cyberspace cash used in investing activities

(126,299

)

(115,392

)

Greenbacks flows from financing activities:

Repurchases of Class A Units

(54

)

(907

)

Repurchases of Form B Units

(i,887

)

(ii,167

)

Gain from initial public offer, net of underwriters’ discounts and commissions

247,307

Proceeds from practice of stock options

ane,714

Payment due to event of corporate conversion

(6

)

Proceeds from long-term debt

535,000

Chief payments of long-term debt

(631,255

)

(iv,156

)

Payments of debt issuance costs

(7,207

)

Payments of financing obligation due to related party

(ii,187

)

Payments of Class A cumulative preferred return

(12

)

(136

)

Payments of deferred offering costs

(4,790

)

(423

)

Payment to sellers of Saylent Technologies, Inc.

(775

)

Payment to sellers of Teledata Communications, Inc

(2,142

)

Holdback payment to sellers of MeridianLink

(25,665

)

Net greenbacks provided by (used in) financing activities

110,228

(9,976

)

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

73,764

(57,889

)

Cash, greenbacks equivalents and restricted cash, beginning of menstruum

39,881

97,770

Greenbacks, greenbacks equivalents and restricted cash, end of menstruum

$

113,645

$

39,881

Reconciliation of cash, cash equivalents, and restricted cash

Cash and cash equivalents

$

113,645

$

37,739

Restricted greenbacks

2,142

Greenbacks, cash equivalents, and restricted cash

$

113,645

$

39,881

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Consolidated Statements of Cash Flows

(in thousands)

Year Ended December 31,

2021

2020

Supplemental disclosures of cash menstruum information:

Cash paid for interest

$

29,242

$

33,179

Cash paid for income taxes

306

137

Non-greenbacks investing and financing activities:

Upshot of corporate conversion

$

319,868

$

Related party receivable net against holdback payment to prior shareholders

4,335

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

423

Share-based bounty expense capitalized to software additions

111

Vesting of restricted stock awards and RSUs

94

Debt issuance costs included in accrued expenses

xc

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

81

98

Payable to seller in connection with acquisition of TazWorks

85,646

Deferred offering costs included in accounts payable and accrued expenses

572

Vesting of Class B Units

74

Reconciliation from GAAP to Non-GAAP Results

(unaudited)

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

Iii Months Ended

Dec 31,

Year Ended

December 31,

2021

2020

2021

2020

Operating income (loss)

$

7,779

$

2,887

$

37,655

$

45,588

Add: Share-based compensation expense

three,901

783

30,736

ii,841

Add: Employer payroll taxes on employee stock transactions

16

95

Add together: Sponsor and third-party conquering related costs

25

2,079

ii,348

3,579

Non-GAAP operating income

$

11,721

$

5,749

$

70,834

$

52,008

Non-GAAP operating margin

18

%

11

%

26

%

26

%

Three Months Ended

December 31,

Twelvemonth Concluded

December 31,

2021

2020

2021

2020

Cyberspace income (loss)

$

(three,213

)

$

(4,089

)

$

(9,996

)

$

9,151

Add together: Share-based compensation expense

three,901

783

30,736

2,841

Add: Employer payroll taxes on employee stock transactions

sixteen

95

Add: Sponsor and 3rd-party acquisition related costs

25

2,079

2,348

iii,579

Non-GAAP internet income (loss)

$

729

$

(1,227

)

$

23,183

$

15,571

Non-GAAP bones net income (loss) per share

$

0.01

$

(0.02

)

$

0.36

$

0.xxx

Non-GAAP diluted internet income (loss) per share

$

0.01

$

(0.02

)

$

0.35

$

0.29

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

79,596,418

51,393,573

63,813,770

51,153,041

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

82,358,079

54,080,648

67,130,479

53,840,116

Non-GAAP internet income (loss) margin

1

%

(two

) %

9

%

8

%

Three Months Ended

Dec 31,

Yr Ended

December 31,

2021

2020

2021

2020

Net income (loss)

$

(3,213

)

$

(4,089

)

$

(ix,996

)

$

nine,151

Involvement expense

5,542

8,653

32,615

34,686

Taxes

(133

)

(1,653

)

5,141

1,792

Depreciation and amortization

12,799

10,670

l,453

40,199

Share-based compensation expense

3,901

783

30,736

2,841

Employer payroll taxes on employee stock transactions

16

95

Expenses associated with IPO

395

424

395

Sponsor and third-party acquisition related costs

25

2,079

2,348

3,579

Loss on debt prepayment

5,593

9,944

Deferred revenue reduction from buy accounting

109

334

733

851

Harm of trademarks

5,362

v,362

Lease termination charges

5,755

879

v,755

Adapted EBITDA

$

24,639

$

28,289

$

123,372

$

104,611

Adjusted EBITDA margin

38

%

52

%

46

%

52

%

Three Months Ended

December 31,

Year Ended

December 31,

2021

2020

2021

2020

Cost of revenue

$

22,354

$

xvi,028

$

89,622

$

58,354

Less: Share-based compensation expense

1,017

71

6,478

180

Less: Employer payroll taxes on employee stock transactions

three

Less: Amortization of developed technology

3,329

2,457

12,519

viii,874

Non-GAAP cost of revenue

$

eighteen,008

$

thirteen,500

$

seventy,622

$

49,300

As a % of revenue

28

%

25

%

26

%

25

%

Three Months Ended

December 31,

Yr Ended

December 31,

2021

2020

2021

2020

Full general & administrative

$

21,057

$

fourteen,347

$

85,160

$

54,640

Less: Share-based compensation expense

1,694

498

14,558

1,952

Less: Employer payroll taxes on employee stock transactions

14

73

Less: Depreciation expense

560

531

2,303

2,515

Less: Amortization of intangibles

eight,910

7,682

35,631

28,810

Non-GAAP general & administrative

$

nine,879

$

5,636

$

32,595

$

21,363

As a % of revenue

15

%

10

%

12

%

11

%

3 Months Ended

Dec 31,

Year Ended

December 31,

2021

2020

2021

2020

Research and development

$

8,529

$

5,109

$

36,336

$

xviii,691

Less: Share-based compensation expense

1,095

92

7,453

339

Less: Employer payroll taxes on employee stock transactions

eight

Non-GAAP inquiry and development

$

7,434

$

5,017

$

28,875

$

18,352

As a % of acquirement

12

%

9

%

11

%

9

%

Three Months Ended

December 31,

Twelvemonth Ended

December 31,

2021

2020

2021

2020

Sales and marketing

$

4,305

$

two,866

$

18,122

$

9,371

Less: Share-based compensation expense

95

122

2,247

370

Less: Employer payroll taxes on employee stock transactions

two

11

Non-GAAP sales and marketing

$

4,208

$

2,744

$

xv,864

$

ix,001

Equally a % of acquirement

vii

%

5

%

6

%

5

%

Iii Months Concluded

December 31,

Yr Concluded

December 31,

2021

2020

2021

2020

Net cash provided by operating activities

$

20,823

$

12,298

$

89,835

$

67,479

Less: Capital letter expenditures

151

738

843

4,141

Less: Capitalized software

1,316

1,033

iv,906

iii,196

Free cash flow

$

nineteen,356

$

x,527

$

84,086

$

lx,142

Contacts

Source: https://www.dailyhostnews.com/meridianlink-reports-fourth-quarter-and-fiscal-year-2021-results