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Avid Technology, Inc. (AVID) SEC Filing 10-K Annual report for the fiscal year ending Thursday, December 31, 2020

Avid Technology, Inc.

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CIK: 1054554 Ticker: AVID

Exhibit 99.1
Avid Technology Announces Q4 and FY 2020 Results

15.3% Sequential Revenue Growth in the Fourth Quarter as End Markets Continue to Recover from COVID-19 Downturn

54.9% Year-Over-Year Subscription Revenue Growth in the Fourth Quarter Driven by Net Increase of Approximately 27,000 Paid Subscriptions and Strong Enterprise Subscription Sales in the Quarter

$30.7 million in Net Cash Provided by Operating Activities in the Fourth Quarter Leading to Free Cash Flow of $30.6 million in the Quarter


BURLINGTON, Mass., March 9, 2021 -- 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, 2020.

Total revenue increased 15.3% sequentially in the fourth quarter, as many of Avid’s end markets showed continued signs of recovery from the COVID-19 pandemic, while still lower year-over-year. During the fourth quarter, the Recurring Revenue components of the Company’s business remained strong with reported subscription revenue of $24.5 million, up 54.9% year-over-year, reflecting strong enterprise subscription sales in the quarter. At the end of 2020, the Company had $231.3 million in Revenue Backlog expected to be recognized during the next 12 months, up 16.0% from the end of 2019. Also, in the fourth quarter, improved profitability and strong seasonal contribution from working capital resulted in Free Cash Flow of $30.6 million for the quarter, the highest quarterly amount since 2007.

The non-Recurring Revenue portions of the Company’s business related to product and professional services continued to show strong signs of sequential recovery during the fourth quarter, although they still remain below pre-COVID levels. Product revenue from perpetual software licenses and integrated solutions increased 19.2% sequentially, to $42.6 million, in the fourth quarter, but declined by 28.7% year-over-year.

For the full year 2020, Avid’s revenues were negatively impacted by the COVID-19 pandemic, decreasing 12.5% from 2019. However, subscription revenue grew 61.2%, to $72.8 million, surpassing 20% of total revenue, up from 11% in 2019. During 2020, the Company saw a 280 basis point increase in gross margin, to 63.3%, primarily due to a greater mix of software and subscription sales during the year. The benefit from the higher gross margin and a decrease in operating expenses from cost savings realized during the year resulted in improved profitability and cash generation. As of December 31, 2020, the Company had $79.9 million in cash and cash equivalents.

Fourth Quarter 2020 Financial and Business Highlights

•Subscription revenue was $24.5 million, an increase of 54.9% year-over-year.
•Paid Cloud-enabled software subscriptions increased by 57.8% year-over-year to approximately 296,000 at December 31, 2020, and increased by approximately 27,000 during the fourth quarter.
•Subscription and maintenance revenue was $55.5 million, up 12.7% year-over-year.
•Total revenue was $104.3 million, an increase of 15.3% sequentially, and a decrease of (10.3%) year-over-year.
•Gross margin was 62.7%, a decrease of 30 basis points year-over-year. Non-GAAP Gross Margin was 63.1%, a decrease of 10 basis points year-over-year.
•Operating expenses were $54.5 million, a decrease of (5.3%) year-over-year. Non-GAAP Operating Expenses were $46.3 million, a decrease of (14.9%) year-over-year.
•Operating income was $10.8 million, a decrease of (31.0%) year-over-year. Non-GAAP Operating Income was $19.4 million, an increase of 2.1% year-over-year.

The following information was filed by Avid Technology, Inc. (AVID) on Tuesday, March 9, 2021 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Avid Technology, Inc.'s 10-K Annual Report:

Financial Statements, Disclosures and Schedules

Inside this 10-K Annual Report

Cover
Consolidated Balance Sheets
Consolidated Balance Sheets (Parenthetical)
Consolidated Statements Of Cash Flows
Consolidated Statements Of Comprehensive (Loss) Income Statement
Consolidated Statements Of Operations
Consolidated Statements Of Stockholders' Equity
Accrued Expenses And Other Current Liabilities (Details)
Accrued Expenses And Other Current Liabilities (Notes)
Business (Notes)
Business Description Of Business (Details)
Capital Stock (Details)
Capital Stock (Notes)
Capital Stock (Tables)
Capital Stock Preferred Stock (Details)
Capital Stock, Allocated Share-Based Compensation Expense (Details)
Capital Stock, Employee Stock Purchase Plan (Details)
Capital Stock, Restricted Stock And Restricted Stock Units (Details)
Capital Stock, Stock Options (Details)
Commitments And Contingencies (Details)
Commitments And Contingencies (Notes)
Commitments And Contingencies (Tables)
Employee Benefit Plans (Details)
Employee Benefit Plans (Notes)
Employee Benefit Plans Deferred Compensation Plans (Details)
Fair Value Measurements (Details)
Fair Value Measurements (Notes)
Fair Value Measurements (Tables)
Income Taxes (Details)
Income Taxes (Notes)
Income Taxes (Tables)
Income Taxes Deferred Tax Assets (Details)
Income Taxes Deferred Tax Liability Not Recognized (Details)
Intangible Assets And Goodwill (Details)
Intangible Assets And Goodwill (Notes)
Inventories (Details)
Inventories (Notes)
Inventories (Tables)
Leases (Details)
Long Term Debt And Credit Agreement (Details)
Long-Term Debt And Credit Agreement - Credit Agreement (Details)
Long-Term Debt And Credit Agreement Carrying Value Of Long Term Debt (Details)
Long-Term Debt And Credit Agreement Carrying Value Of Long Term Debt (Tables)
Long-Term Debt And Credit Agreement Unamortized Debt Issuance Costs And Discounts (Details)
Net Income Per Share (Details)
Net Income Per Share (Notes)
Net Income Per Share (Tables)
Other Long-Term Liabilities (Details)
Other Long-Term Liabilities (Notes)
Other Long-Term Liabilities (Tables)
Product And Geographic Information (Details)
Product And Geographic Information (Notes)
Product And Geographic Information (Tables)
Property, Plant And Equipment
Property, Plant And Equipment (Details)
Property, Plant And Equipment (Tables)
Quarterly Results (Unaudited) (Details)
Quarterly Results (Unaudited) (Notes)
Quarterly Results (Unaudited) (Tables)
Restructuring Costs And Accruals (Details)
Restructuring Costs And Accruals (Notes)
Restructuring Costs And Accruals (Tables)
Revenue Deferred Revenue Activity (Details)
Revenue Revenue From Contract With Customer (Details)
Summary Of Significant Accounting Policies Allowance For Doubtful Accounts (Details)
Summary Of Significant Accounting Policies Allowance For Sales Returns And Exchanges (Details)
Summary Of Significant Accounting Policies Allowance For Sales Returns And Exchanges (Tables)
Summary Of Significant Accounting Policies Description Of Business (Details)
Summary Of Significant Accounting Policies Leases (Details)
Summary Of Significant Accounting Policies New Accounting Pronouncements Adopted (Details)
Summary Of Significant Accounting Policies Property, Plant And Equipment (Details)
Summary Of Significant Accounting Policies Revenue Recognition (Details)
Summary Of Significant Accounting Policies Revenue, Initial Application Period Cumulative Effect Transition (Details)
Summary Of Significant Accounting Policies Summary Of Significant Accounting Policies (Notes)
Summary Of Significant Accounting Policies Summary Of Significant Accounting Policies (Policies)
Ticker: AVID
CIK: 896841
Form Type: 10-K Annual Report
Accession Number: 0000896841-21-000035
Submitted to the SEC: Tue Mar 09 2021 5:20:50 PM EST
Accepted by the SEC: Tue Mar 09 2021
Period: Thursday, December 31, 2020
Industry: Prepackaged Software

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