Business Wire

MeridianLink Reports Fourth Quarter and Fiscal Year 2021 Results

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

COSTA MESA, Calif.–(BUSINESS WIRE)–$MLNK #earnings–MeridianLink, Inc. (NYSE: MLNK), a leading provider of modern software platforms for financial institutions and consumer reporting agencies, today announced financial results for the fourth quarter and fiscal year ended December 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, chief executive officer of MeridianLink. “Our solid performance in Q4 and throughout the year highlights the trust that financial institutions and consumer reporting agencies place in our solutions as a key driver of their growth acceleration and rapid digitalization. We are in the right place at the right time to help new and existing customers fuel future growth, and I am confident that the coming year will bring many more opportunities.”

Quarterly Financial Highlights:

  • Revenue of $64.0 million, an increase of 19% year-over-year
  • Operating income of $7.8 million, or 12% of revenue and Non-GAAP operating profit of $11.7 million, or 18% of revenue
  • Adjusted EBITDA of $24.6 million, or 38% of revenue
  • Cash flow from operations of $20.8 million, and Free Cash Flow of $19.4 million

Business and Operating Highlights:

  • The company exceeded guidance again in Q4, with GAAP Revenue up 19% 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, up 23% year-over-year, with growth driven, in part, 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 general availability in January 2022

Business Outlook

Based on information as of today, March 10, 2022, the Company issues first quarter financial guidance and initiates full year 2022 financial guidance as follows:

First Quarter Fiscal 2022:

  • Revenue is expected to be in the range of $68.3 million to $69.3 million
  • Adjusted EBITDA is expected to be in the range of $26.5 million to $27.5 million

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 million to $116.0 million

Conference Call Information

MeridianLink will hold a conference call to discuss our fourth quarter and fiscal year 2021 results today, March 10, 2022, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). The conference call can be accessed by dialing (877) 284-4396 from the United States and Canada or (873) 415-0298 internationally with conference ID 4345428. A live webcast of the conference call can be accessed from the investor relations page of MeridianLink’s website at ir.meridianlink.com. An archived replay of the webcast will be available at the same website following the conclusion of the call. A telephonic replay will be 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 United 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 1,900 customers, including a majority of the financial institutions on Forbes’ 2021 lists of America’s Best Credit Unions and Banks. Further information can be found at www.meridianlink.com.

Non-GAAP Financial Measures

To supplement the financial measures presented in accordance with generally accepted accounting principles, or GAAP, we provide certain non-GAAP financial measures, such as adjusted EBITDA and adjusted EBITDA margin; non-GAAP operating income (loss); non-GAAP net income (loss); non-GAAP cost of revenue; non-GAAP sales and marketing expenses; non-GAAP research and development expenses; non-GAAP general and administrative expenses; and free cash flow. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Rather, we 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 between 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 revenue reductions from purchase accounting
  • Non-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 third-party acquisition-related costs
  • Non-GAAP cost of revenue: GAAP cost of revenue, excluding the impact of share-based compensation, employer payroll taxes on employee stock transactions, and amortization of developed technology
  • Non-GAAP operating expenses: GAAP operating expenses, excluding the impact of share-based compensation and employer payroll taxes on employee stock transactions
  • Free cash flow: GAAP cash flow from operating activities plus GAAP purchases of property and equipment (Capital Expenditures) and capitalized costs related to developed technology (Capitalized Software)

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 certain forward-looking non-GAAP financial measures as the GAAP measures are not accessible on a forward-looking basis. We cannot reliably predict all necessary components or their impact to reconcile such financial measures without unreasonable effort. The events necessitating a non-GAAP adjustment are inherently unpredictable and may have a significant impact on our future GAAP financial results.

Forward-Looking Statements

This release contains, and our above-referenced conference call and webcast will contain, statements which are not historical facts and are considered forward-looking within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Generally, these statements can be identified by the use of words such as “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 forward-looking statements. These forward-looking statements reflect our predictions, expectations, or forecasts, including, but not limited to, statements regarding, and guidance with respect to, our future financial and operational performance, our strategic initiatives, our development or delivery of new or enhanced solutions, our market size and growth opportunities, and our competitive positioning. Actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control including, without limitation, risks related to our business and industry, as well as those set forth under the caption “Risk Factors” in our final prospectus filed on July 28, 2021, and our other SEC filings. Additional information will also be set forth in Item 1A. Risk Factors, or elsewhere, in our Annual Report on Form 10-K for the year ended December 31, 2021. Any forward-looking statement contained herein or provided on the related conference call is based on reasonable assumptions as of the date hereof. You should not rely upon forward-looking statements as predictions of future events. We undertake no obligation, other than as required by applicable law, to update any forward-looking statements, whether as a result of new information, future events, or otherwise.

Consolidated Balance Sheets

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

 

 

December 31,

 

December 31,

 

2021

 

2020

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

113,645

 

 

$

37,739

 

Restricted cash

 

 

 

 

2,142

 

Accounts receivable, net of allowance for doubtful accounts

 

24,913

 

 

 

22,358

 

Prepaid expenses and other current assets

 

9,398

 

 

 

5,812

 

Related party receivable from sellers of MeridianLink

 

 

 

 

4,123

 

Total current assets

 

147,956

 

 

 

72,174

 

Property and equipment, net

 

5,989

 

 

 

7,600

 

Intangible assets, net

 

298,597

 

 

 

328,032

 

Deferred tax assets, net

 

4,286

 

 

 

9,484

 

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

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

2,335

 

 

$

2,257

 

Accrued liabilities

 

24,667

 

 

 

21,070

 

Deferred revenue

 

14,707

 

 

 

10,873

 

TazWorks, LLC purchase liability

 

 

 

 

85,646

 

Related party liability due to sellers of MeridianLink

 

 

 

 

30,000

 

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

 

2,139

 

 

 

2,955

 

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’ Deficit

 

 

 

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

 

 

 

 

 

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

 

88

 

 

 

 

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

 

 

 

 

 

Additional paid-in capital

 

596,542

 

 

 

3,909

 

Accumulated deficit

 

(40,352

)

 

 

(30,338

)

Total stockholders’ equity/members’ deficit

 

556,278

 

 

 

(26,429

)

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

$

1,025,893

 

 

$

963,705

 

Consolidated Statements of Operations

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

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

2021

 

2020

 

2021

 

2020

 

 

 

 

 

 

 

 

Revenues, net

$

64,024

 

 

$

53,933

 

 

$

267,676

 

 

$

199,340

 

Cost of revenues:

 

 

 

 

 

 

 

Subscription and services

 

19,025

 

 

 

13,571

 

 

 

77,103

 

 

 

49,480

 

Amortization of developed technology

 

3,329

 

 

 

2,457

 

 

 

12,519

 

 

 

8,874

 

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

 

8,529

 

 

 

5,109

 

 

 

36,336

 

 

 

18,691

 

Sales and marketing

 

4,305

 

 

 

2,866

 

 

 

18,122

 

 

 

9,371

 

Loss on termination of financing obligation due to related party

 

 

 

 

5,755

 

 

 

 

 

 

5,755

 

Impairment of trademarks

 

 

 

 

5,362

 

 

 

 

 

 

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, net:

 

 

 

 

 

 

 

Other income

 

(10

)

 

 

(24

)

 

 

(49

)

 

 

(41

)

Interest expense, net

 

5,542

 

 

 

8,653

 

 

 

32,615

 

 

 

34,686

 

Loss on debt repayment and extinguishment

 

5,593

 

 

 

 

 

 

9,944

 

 

 

 

Total other expense, net

 

11,125

 

 

 

8,629

 

 

 

42,510

 

 

 

34,645

 

Income (loss) before provision for income taxes

 

(3,346

)

 

 

(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

$

(3,213

)

 

$

(13,020

)

 

$

(30,940

)

 

$

(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)

 

Three Months Ended December 31,

 

Year Ended December 31,

 

2021

 

2020

 

2021

 

2020

Subscription fees

$

55,757

 

$

47,460

 

$

235,489

 

$

177,039

Professional services

 

5,895

 

 

4,914

 

 

22,707

 

 

16,301

Other

 

2,372

 

 

1,559

 

 

9,480

 

 

6,000

Total

$

64,024

 

$

53,933

 

$

267,676

 

$

199,340

 

 

 

 

 

 

 

 

Net Revenues by Solution Type

(unaudited)

(in thousands)

 

 

 

 

 

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2021

 

2020

 

2021

 

2020

Lending software solutions

$

43,759

 

 

$

37,054

 

 

$

176,793

 

 

$

133,754

 

Data verification software solutions

 

20,265

 

 

 

16,879

 

 

 

90,883

 

 

 

65,586

 

Total (1)

$

64,024

 

 

$

53,933

 

 

$

267,676

 

 

$

199,340

 

% Growth attributable to:

 

 

 

 

 

 

 

TCI and TazWorks

 

13

%

 

 

 

 

21

%

 

 

Lending software solutions

 

9

%

 

 

 

 

12

%

 

 

Data verification software

 

(3

) %

 

 

 

 

1

%

 

 

Total % growth

 

19

%

 

 

 

 

34

%

 

 

 

 

 

 

 

 

 

 

(1) % Revenue related to mortgage loan market:

 

 

 

 

 

 

 

Lending software solutions

 

9

%

 

 

12

%

 

 

9

%

 

 

12

%

Data verification software

 

68

%

 

 

94

%

 

 

70

%

 

 

93

%

Total % revenue related to mortgage loan market

 

27

%

 

 

38

%

 

 

30

%

 

 

39

%

 

 

 

 

 

 

 

 

Consolidated Statements of Cash Flows

(in thousands)

 

 

Year Ended December 31,

 

2021

 

2020

Cash flows from operating activities:

 

 

 

Net income (loss)

$

(9,996

)

 

$

9,151

 

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

 

 

 

Depreciation and amortization

 

50,453

 

 

 

40,199

 

Amortization of debt issuance costs

 

3,413

 

 

 

1,758

 

Share-based compensation expense

 

30,736

 

 

 

2,841

 

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

 

(18

)

 

 

 

Deferred income taxes

 

4,926

 

 

 

1,555

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

 

1,619

 

 

 

(3,184

)

Prepaid expenses and other assets

 

(5,726

)

 

 

(2,058

)

Accounts payable

 

117

 

 

 

1,536

 

Accrued liabilities

 

(302

)

 

 

2,650

 

Deferred revenue

 

3,834

 

 

 

1,923

 

Deferred rent

 

(94

)

 

 

(77

)

Net cash 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

)

 

 

(5,000

)

Acquisition, net of cash and restricted cash acquired – Saylent Technologies, Inc.

 

(35,945

)

 

 

 

Capitalized software additions

 

(4,906

)

 

 

(3,196

)

Purchases of property and equipment

 

(843

)

 

 

(4,141

)

Net cash used in investing activities

 

(126,299

)

 

 

(115,392

)

Cash flows from financing activities:

 

 

 

Repurchases of Class A Units

 

(54

)

 

 

(907

)

Repurchases of Class B Units

 

(1,887

)

 

 

(2,167

)

Proceeds from initial public offering, net of underwriters’ discounts and commissions

 

247,307

 

 

 

 

Proceeds from exercise of stock options

 

1,714

 

 

 

 

Payment due to effect of corporate conversion

 

(6

)

 

 

 

Proceeds from long-term debt

 

535,000

 

 

 

 

Principal payments of long-term debt

 

(631,255

)

 

 

(4,156

)

Payments of debt issuance costs

 

(7,207

)

 

 

 

Payments of financing obligation due to related party

 

 

 

 

(2,187

)

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 cash provided by (used in) financing activities

 

110,228

 

 

 

(9,976

)

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

 

73,764

 

 

 

(57,889

)

Cash, cash equivalents and restricted cash, beginning of period

 

39,881

 

 

 

97,770

 

Cash, cash equivalents and restricted cash, end of period

$

113,645

 

 

$

39,881

 

Reconciliation of cash, cash equivalents, and restricted cash

 

 

 

Cash and cash equivalents

$

113,645

 

 

$

37,739

 

Restricted cash

 

 

 

 

2,142

 

Cash, cash equivalents, and restricted cash

$

113,645

 

 

$

39,881

 

Consolidated Statements of Cash Flows

(in thousands)

 

 

 

Year Ended December 31,

 

 

2021

 

2020

Supplemental disclosures of cash flow information:

 

 

 

Cash paid for interest

$

29,242

 

$

33,179

Cash paid for income taxes

 

306

 

 

137

Non-cash investing and financing activities:

 

 

 

Effect 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 December 31, 2020 offsetting payments of deferred offering costs

 

423

 

 

Share-based compensation expense capitalized to software additions

 

111

 

 

Vesting of restricted stock awards and RSUs

 

94

 

 

Debt issuance costs included in accrued expenses

 

90

 

 

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)

 

Three Months Ended

December 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

 

3,901

 

 

 

783

 

 

 

30,736

 

 

 

2,841

 

Add: Employer payroll taxes on employee stock transactions

 

16

 

 

 

 

 

 

95

 

 

 

 

Add: Sponsor and third-party acquisition related costs

 

25

 

 

 

2,079

 

 

 

2,348

 

 

 

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,

 

Year Ended

December 31,

 

2021

 

2020

 

2021

 

2020

 

 

 

 

 

 

 

 

Net income (loss)

$

(3,213

)

 

$

(4,089

)

 

$

(9,996

)

 

$

9,151

 

Add: Share-based compensation expense

 

3,901

 

 

 

783

 

 

 

30,736

 

 

 

2,841

 

Add: Employer payroll taxes on employee stock transactions

 

16

 

 

 

 

 

 

95

 

 

 

 

Add: Sponsor and third-party acquisition related costs

 

25

 

 

 

2,079

 

 

 

2,348

 

 

 

3,579

 

Non-GAAP net income (loss)

$

729

 

 

$

(1,227

)

 

$

23,183

 

 

$

15,571

 

Non-GAAP basic net income (loss) per share

$

0.01

 

 

$

(0.02

)

 

$

0.36

 

 

$

0.30

 

Non-GAAP diluted net 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 net income (loss) margin

 

1

%

 

 

(2

) %

 

 

9

%

 

 

8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

2021

 

2020

 

2021

 

2020

 

 

 

 

 

 

 

 

Net income (loss)

$

(3,213

)

 

$

(4,089

)

 

$

(9,996

)

 

$

9,151

 

Interest expense

 

5,542

 

 

 

8,653

 

 

 

32,615

 

 

 

34,686

 

Taxes

 

(133

)

 

 

(1,653

)

 

 

5,141

 

 

 

1,792

 

Depreciation and amortization

 

12,799

 

 

 

10,670

 

 

 

50,453

 

 

 

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 purchase accounting

 

109

 

 

 

334

 

 

 

733

 

 

 

851

 

Impairment of trademarks

 

 

 

 

5,362

 

 

 

 

 

 

5,362

 

Lease termination charges

 

 

 

 

5,755

 

 

 

879

 

 

 

5,755

 

Adjusted 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

 

 

$

16,028

 

 

$

89,622

 

 

$

58,354

 

Less: Share-based compensation expense

 

1,017

 

 

 

71

 

 

 

6,478

 

 

 

180

 

Less: Employer payroll taxes on employee stock transactions

 

 

 

 

 

 

 

3

 

 

 

 

Less: Amortization of developed technology

 

3,329

 

 

 

2,457

 

 

 

12,519

 

 

 

8,874

 

Non-GAAP cost of revenue

$

18,008

 

 

$

13,500

 

 

$

70,622

 

 

$

49,300

 

As a % of revenue

 

28

%

 

 

25

%

 

 

26

%

 

 

25

%

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

2021

 

2020

 

2021

 

2020

 

 

 

 

 

 

 

 

General & administrative

$

21,057

 

 

$

14,347

 

 

$

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

 

8,910

 

 

 

7,682

 

 

 

35,631

 

 

 

28,810

 

Non-GAAP general & administrative

$

9,879

 

 

$

5,636

 

 

$

32,595

 

 

$

21,363

 

As a % of revenue

 

15

%

 

 

10

%

 

 

12

%

 

 

11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

2021

 

2020

 

2021

 

2020

 

 

 

 

 

 

 

 

Research and development

$

8,529

 

 

$

5,109

 

 

$

36,336

 

 

$

18,691

 

Less: Share-based compensation expense

 

1,095

 

 

 

92

 

 

 

7,453

 

 

 

339

 

Less: Employer payroll taxes on employee stock transactions

 

 

 

 

 

 

 

8

 

 

 

 

Non-GAAP research and development

$

7,434

 

 

$

5,017

 

 

$

28,875

 

 

$

18,352

 

As a % of revenue

 

12

%

 

 

9

%

 

 

11

%

 

 

9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

2021

 

2020

 

2021

 

2020

 

 

 

 

 

 

 

 

Sales and marketing

$

4,305

 

 

$

2,866

 

 

$

18,122

 

 

$

9,371

 

Less: Share-based compensation expense

 

95

 

 

 

122

 

 

 

2,247

 

 

 

370

 

Less: Employer payroll taxes on employee stock transactions

 

2

 

 

 

 

 

 

11

 

 

 

 

Non-GAAP sales and marketing

$

4,208

 

 

$

2,744

 

 

$

15,864

 

 

$

9,001

 

As a % of revenue

 

7

%

 

 

5

%

 

 

6

%

 

 

5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

2021

 

2020

 

2021

 

2020

 

 

 

 

 

 

 

 

Net cash provided by operating activities

$

20,823

 

 

$

12,298

 

 

$

89,835

 

 

$

67,479

 

Less: Capital expenditures

 

151

 

 

 

738

 

 

 

843

 

 

 

4,141

 

Less: Capitalized software

 

1,316

 

 

 

1,033

 

 

 

4,906

 

 

 

3,196

 

Free cash flow

$

19,356

 

 

$

10,527

 

 

$

84,086

 

 

$

60,142

 

 

 

 

 

 

 

 

 

 

Contacts

Press
Becky Frost

(714) 784-5839

becky.frost@meridianlink.com

Investor Relations
Erik Schneider

(714) 332-6357

InvestorRelations@meridianlink.com

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