Avid Technology, Inc. (AVID) 10-Q Quarterly Report May 2022

BURLINGTON, Mass., May 4, 2022 -- Avid® (NASDAQ: AVID), a leading technology provider that powers the media and entertainment industry, today announced its financial results for the first quarter of 2022, which ended on March 31, 2022.

Total revenue increased 6.7% year-over-year in the first quarter, led by enterprise and creative subscription growth as well as favorable demand across product offerings, continuing the sustained growth trend with the fifth consecutive quarter of year-over-year revenue growth. During the first quarter, the recurring revenue components of the Company’s business remained strong with subscription revenue of $33.0 million, up 32.5% year-over-year, and subscription & maintenance revenue of $61.3 million, up 12.0% year-over-year.

The revenue growth, combined with improved gross margin, resulted in a 17.9% year-over-year improvement in Non-GAAP Earnings per Share to $0.33.

First Quarter 2022 Financial and Business Highlights

•Subscription revenue was $33.0 million, an increase of 32.5% year-over-year.

•Paid Cloud-enabled software subscriptions increased by 24.1% year-over-year to approximately 431,800 as of March 31, 2022 and increased by approximately 21,200 during the first quarter.

•Subscription and Maintenance revenue was $61.3 million, up 12.0% year-over-year.

•Total revenue was $100.6 million, an increase of 6.7% year-over-year.

•Gross margin was 66.3%, an increase of 120 basis points year-over-year. Non-GAAP Gross Margin was 66.8%, an increase of 120 basis points year-over-year.

•Operating expenses were $53.5 million, an increase of 5.1% year-over-year. Non-GAAP Operating Expenses were $49.7 million, an increase of 7.4% year-over-year.

•Net income was $10.6 million, an increase of 141.1% year-over-year. Non-GAAP Net Income was $14.8 million, an increase of 13.6% year-over-year.

•Adjusted EBITDA was $19.3 million, an increase of 9.0% year-over-year. Adjusted EBITDA Margin was 19.2%, an increase of 50 basis points year-over-year.

•Net income per common share was $0.23, an increase of 130.0% year-over-year. Non-GAAP Earnings per Share was $0.33, an increase of 17.9% year-over-year.

•Net cash provided by operating activities was $7.9 million in the quarter, a decrease of ($4.4) million compared to the prior year period due to working capital changes.

The following information was filed by Avid Technology, Inc. (AVID) on Wednesday, May 4, 2022 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-Q Quarterly 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-Q Quarterly Report:

Revenue - Product Highlight
This increase was primarily due to increased volume on our higher margin subscription revenue as well as an improvement in our integrated solutions gross margin.

Financial - Expense Highlight
The decrease in other expenses for the three months ended March 31, 2022 was related to a reduction in our bad debt allowance.
Other - Other Highlight
24 LIQUIDITY AND CAPITAL RESOURCES Liquidity and Sources of Cash Our principal sources of liquidity include cash and cash equivalents totaling $41.2 million as of March 31, 2022, as well as the availability of borrowings of up to $70.0 million under our revolving Credit Facility.
Revenue - Product Highlight
In the event revenues in future quarters are lower than we currently anticipate, we may be forced to take remedial actions which could include, among other things (and where allowed by the lenders), (i) further cost reductions, (ii) seeking replacement financing, (iii) raising funds through the issuance of additional equity or debt securities or the incurrence of additional borrowings, or (iv) disposing of certain assets or businesses.
Other - Other Highlight
We commonly sell large, complex solutions to our customers that, due to their strategic nature, have long lead times where the timing of order execution and fulfillment can be difficult to predict.
Financial - Earnings
Our gross margin percentage for...Read more
Other - Other
The proceeds from the Term...Read more
Revenue - Product
In recent quarters, we have...Read more
Financial - Debt
If we are not in...Read more
Financial - Earnings
The A&R Credit Agreement extended...Read more
Other - Other
For a discussion of these...Read more
Other - Other
For a discussion of these...Read more
Other - Other
Although we are encouraged by...Read more
Other - Other
Our cash requirements vary depending...Read more
Financial - Expense
Change in Marketing and Selling...Read more
Revenue - Geography
At the same time, certain...Read more
Financial - Expense
Marketing and Selling Expenses Marketing...Read more
Financial - Expense
R&D expenses increased $1.3 million,...Read more
Revenue - Product
Subscription revenues increased $8.1 million,...Read more
Financial - Cash Flow
Cash Flows from Financing Activities...Read more
Financial - Expense
The increase in other expenses...Read more
Financial - Earnings
Operations Overview Our strategy for...Read more
Revenue - Product
Integrated solutions and other revenues...Read more
Revenue - Product
We expect to increase subscription...Read more
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As a result of these...Read more
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The change in foreign exchange...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

Avid Technology, Inc. provided additional information to their SEC Filing as exhibits

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Ticker: AVID
CIK: 896841
Form Type: 10-Q Quarterly Report
Accession Number: 0000896841-22-000062
Submitted to the SEC: Wed May 04 2022 4:54:07 PM EST
Accepted by the SEC: Wed May 04 2022
Period: Thursday, March 31, 2022
Industry: Prepackaged Software

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Avid Technology, Inc. (AVID) SEC Filing 10-Q Quarterly Report for the period ending Thursday, March 31, 2022

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