Company Announcements

MeridianLink® Reports Second Quarter 2022 Results

Revenue of $73.0 million grows 7% year-over-year

COSTA MESA, Calif.--(BUSINESS WIRE)--Aug. 9, 2022-- MeridianLink, Inc. (NYSE: MLNK), a leading provider of modern software platforms for financial institutions and consumer reporting agencies, today announced financial results for the second quarter ended June 30, 2022.

“We saw a strong second quarter of 2022, once again exceeding market expectations, with GAAP revenue up 7% year-over-year to $73.0 million, lending software solutions revenue up 14% year-over-year to $51.7 million and 39% adjusted EBITDA margins,” said Nicolaas Vlok, chief executive officer of MeridianLink. “I remain confident in the ability of our business to continue delivering growth with strong profitability.”

Quarterly Financial Highlights:

  • Revenue of $73.0 million, an increase of 7% year-over-year
  • Operating income of $8.9 million, or 12% of revenue and Non-GAAP operating profit of $14.4 million, or 20% of revenue
  • Adjusted EBITDA of $28.2 million, or 39% of revenue
  • Cash flow from operations of $87.6 million, and Free Cash Flow of $80.1 million for the last twelve month period

Business and Operating Highlights:

  • MeridianLink completed the migration of the MeridianLink Mortgage lending module to the cloud. As we migrate more of our products to a cloud-native environment, we are strengthening the MeridianLink One platform, which now includes Mortgage, multiple Consumer modules, and our unified Point of Sale solution.
  • MeridianLink’s market-leading Home Equity lending capabilities were selected by a top-15 national mortgage lender to facilitate their launch into this new category of lending. This selection was based on our solution’s unique depth and breadth of functionality and our ability to facilitate a swift market entry and serve higher value customers.
  • As part of the Company’s growth-focused alignment, we welcomed Sean Blitchok as our new Chief Financial Officer and transitioned Chris Maloof to a newly created role as President of Go To Market. With this additional expertise and operating experience on the team, we have increased the organization’s capacity to execute on strategic initiatives.

Business Outlook

Based on information as of today, August 9, 2022, the Company issues third quarter financial guidance and updates full year 2022 financial guidance as follows:

Third Quarter Fiscal 2022:

  • Revenue is expected to be in the range of $73.0 million to $75.0 million
  • Adjusted EBITDA is expected to be in the range of $25.0 million to $27.0 million

Full Year 2022:

  • Revenue is expected to be in the range of $289.0 million to $293.0 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 second quarter results today, August 9, 2022, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). The conference call can be accessed by dialing (888) 396-8049 from the United States and Canada toll-free or the Participant Local number of (416) 764-8646 with Conference ID 87855235. 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 Tuesday, August 16, 2022, at (877) 674-7070 from the United States and Canada or (416) 764-8692 as a Participant Local with Conference ID 855235.

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, including anticipated benefits and integration of an acquisition, our stock repurchase program, including the execution and amount of repurchases, 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 in Item 1A. Risk Factors, or elsewhere, in our Annual Report on Form 10-K for the year ended December 31, 2021, any updates in our Quarterly Reports on Form 10-Q filed for periods subsequent to such Form 10-K, and our other SEC filings. 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.

Condensed Consolidated Balance Sheets

(in thousands, except share and per share data)

 

 

 

As of

 

June 30, 2022

(unaudited)

 

December 31,

2021

 

 

 

 

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

100,259

 

 

$

113,645

 

Accounts receivable, net of allowance for doubtful accounts

 

33,876

 

 

 

24,913

 

Prepaid expenses and other current assets

 

9,402

 

 

 

9,398

 

Escrow deposit

 

30,000

 

 

 

 

Total current assets

 

173,537

 

 

 

147,956

 

Property and equipment, net

 

5,330

 

 

 

5,989

 

Right of use assets

 

2,562

 

 

 

 

Intangible assets, net

 

293,430

 

 

 

298,597

 

Deferred tax assets, net

 

10,818

 

 

 

4,286

 

Goodwill

 

569,129

 

 

 

564,799

 

Other assets

 

4,153

 

 

 

4,266

 

Total assets

$

1,058,959

 

 

$

1,025,893

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

1,563

 

 

$

2,335

 

Accrued liabilities

 

28,020

 

 

 

24,667

 

Deferred revenue

 

23,259

 

 

 

14,707

 

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

 

3,362

 

 

 

2,139

 

Total current liabilities

 

56,204

 

 

 

43,848

 

Long-term debt, net of debt issuance costs

 

424,439

 

 

 

425,371

 

Long-term deferred revenue

 

378

 

 

 

 

Deferred rent

 

 

 

 

396

 

Other long-term liabilities

 

1,621

 

 

 

 

Total liabilities

 

482,642

 

 

 

469,615

 

Commitments and contingencies (Note 5)

 

 

 

Stockholders’ Equity

 

 

 

Preferred stock, $0.001 par value; 50,000,000 shares authorized; zero shares issued and outstanding at June 30, 2022 and December 31, 2021

 

 

 

 

 

Common stock, $0.001 par value; 600,000,000 shares authorized, 80,475,781 and 79,734,984 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively

 

126

 

 

 

88

 

Additional paid-in capital

 

607,085

 

 

 

596,542

 

Accumulated deficit

 

(30,894

)

 

 

(40,352

)

Total stockholders’ equity

 

576,317

 

 

 

556,278

 

Total liabilities and stockholders’ equity

$

1,058,959

 

 

$

1,025,893

 

Condensed Consolidated Statements of Operations

(unaudited)

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

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2022

 

2021

 

2022

 

2021

Revenues, net

$

72,987

 

 

$

68,474

 

 

$

145,741

 

 

$

136,285

 

Cost of revenues:

 

 

 

 

 

 

 

Subscription and services

 

23,376

 

 

 

17,997

 

 

 

44,480

 

 

 

34,611

 

Amortization of developed technology

 

3,850

 

 

 

3,109

 

 

 

7,284

 

 

 

5,971

 

Total cost of revenues

 

27,226

 

 

 

21,106

 

 

 

51,764

 

 

 

40,582

 

Gross profit

 

45,761

 

 

 

47,368

 

 

 

93,977

 

 

 

95,703

 

Operating expenses:

 

 

 

 

 

 

 

General and administrative

 

20,806

 

 

 

16,591

 

 

 

38,993

 

 

 

34,186

 

Research and development

 

10,487

 

 

 

7,288

 

 

 

18,896

 

 

 

14,274

 

Sales and marketing

 

5,465

 

 

 

4,224

 

 

 

10,208

 

 

 

7,823

 

Acquisition related costs

 

103

 

 

 

31

 

 

 

2,386

 

 

 

781

 

Total operating expenses

 

36,861

 

 

 

28,134

 

 

 

70,483

 

 

 

57,064

 

Operating income

 

8,900

 

 

 

19,234

 

 

 

23,494

 

 

 

38,639

 

Other (income) expense, net:

 

 

 

 

 

 

 

Other income

 

(216

)

 

 

(10

)

 

 

(379

)

 

 

(30

)

Interest expense, net

 

5,436

 

 

 

9,846

 

 

 

9,794

 

 

 

19,908

 

Total other expense, net

 

5,220

 

 

 

9,836

 

 

 

9,415

 

 

 

19,878

 

Income before provision for income taxes

 

3,680

 

 

 

9,398

 

 

 

14,079

 

 

 

18,761

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

1,508

 

 

 

1,966

 

 

 

4,428

 

 

 

4,098

 

Net income

$

2,172

 

 

$

7,432

 

 

$

9,651

 

 

$

14,663

 

 

 

 

 

 

 

 

 

Class A preferred return

 

 

 

 

(9,232

)

 

 

 

 

 

(18,165

)

Net income (loss) attributable to common stockholders

$

2,172

 

 

$

(1,800

)

 

$

9,651

 

 

$

(3,502

)

 

 

 

 

 

 

 

 

Net income (loss) per share:

 

 

 

 

 

 

 

Basic

$

0.03

 

 

$

(0.03

)

 

$

0.12

 

 

$

(0.07

)

Diluted

 

0.03

 

 

 

(0.03

)

 

 

0.12

 

 

 

(0.07

)

Weighted average common stock outstanding:

 

 

 

 

 

 

 

Basic

 

80,418,520

 

 

 

52,015,526

 

 

 

80,197,832

 

 

 

51,843,086

 

Diluted

 

82,223,181

 

 

 

52,015,526

 

 

 

82,251,322

 

 

 

51,843,086

 

Net Revenues by Major Source

(unaudited)

(in thousands)

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2022

 

2021

 

2022

 

2021

Subscription fees

$

63,529

 

$

60,427

 

$

126,998

 

$

120,743

Professional services

 

6,665

 

 

5,615

 

 

13,777

 

 

11,106

Other

 

2,793

 

 

2,432

 

 

4,966

 

 

4,436

Total

$

72,987

 

$

68,474

 

$

145,741

 

$

136,285

Net Revenues by Solution Type

(unaudited)

(in thousands)

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2022

 

2021

 

2022

 

2021

Lending software solutions

$

51,668

 

 

$

45,243

 

 

$

100,835

 

 

$

88,377

 

Data verification software solutions

 

21,319

 

 

 

23,231

 

 

 

44,906

 

 

 

47,908

 

Total (1)

$

72,987

 

 

$

68,474

 

 

$

145,741

 

 

$

136,285

 

% Growth attributable to:

 

 

 

 

 

 

 

Lending software solutions

 

9

%

 

 

 

 

9

%

 

 

Data verification software

 

(3

)%

 

 

 

 

(2

)%

 

 

Total % growth

 

7

%

 

 

 

 

7

%

 

 

 

 

 

 

 

 

 

 

(1) % Revenue related to mortgage loan market:

 

 

 

 

 

 

 

Lending software solutions

 

7

%

 

 

9

%

 

 

7

%

 

 

10

%

Data verification software

 

64

%

 

 

71

%

 

 

67

%

 

 

72

%

Total % revenue related to mortgage loan market

 

24

%

 

 

30

%

 

 

26

%

 

 

32

%

Condensed Consolidated Statements of Cash Flows

(unaudited)

(in thousands)

 

 

 

 

 

Six Months Ended June 30,

 

 

2022

 

2021

Cash flows from operating activities:

 

 

 

Net income

$

9,651

 

 

$

14,663

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation and amortization

 

26,376

 

 

 

24,957

 

Provision for doubtful accounts

 

 

 

 

89

 

Amortization of debt issuance costs

 

1,429

 

 

 

1,817

 

Share-based compensation expense

 

9,247

 

 

 

1,308

 

Loss on disposal of fixed assets

 

135

 

 

 

207

 

Loss on sublease liability

 

 

 

 

405

 

Gain on change in fair value of earnout

 

 

 

 

 

Other adjustments

 

 

 

 

(16

)

Deferred income taxes

 

4,025

 

 

 

3,842

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

 

(8,806

)

 

 

(2,641

)

Prepaid expenses and other assets

 

661

 

 

 

(1,774

)

Accounts payable

 

(1,059

)

 

 

(39

)

Accrued liabilities

 

(2,065

)

 

 

(3,081

)

Deferred revenue

 

8,076

 

 

 

10,221

 

Deferred rent

 

 

 

 

(49

)

Net cash provided by operating activities

 

47,670

 

 

 

49,909

 

Cash flows from investing activities:

 

 

 

Acquisition, net of cash acquired – TazWorks, LLC

 

 

 

 

(85,421

)

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

 

 

 

 

(35,957

)

Acquisition, net of cash and restricted cash acquired – StreetShares, Inc.

 

(23,059

)

 

 

 

Escrow deposit

 

(30,000

)

 

 

 

Capitalized software additions

 

(4,079

)

 

 

(2,216

)

Purchases of property and equipment

 

(480

)

 

 

(553

)

Net cash used in investing activities

 

(57,618

)

 

 

(124,147

)

Cash flows from financing activities:

 

 

 

Repurchases of common stock

 

(193

)

 

 

 

Repurchases of Class A Units

 

 

 

 

(54

)

Repurchases of Class B Units

 

 

 

 

(1,887

)

Proceeds from exercise of stock options

 

186

 

 

 

 

Proceeds from employee stock purchase plan

 

922

 

 

 

 

Proceeds from long-term debt

 

 

 

 

100,000

 

Principal payments of long-term debt

 

(1,088

)

 

 

(2,590

)

Payment of Regulation A+ investor note

 

(3,265

)

 

 

 

Payments of debt issuance costs

 

 

 

 

(1,970

)

Payments of Class A cumulative preferred return

 

 

 

 

(12

)

Payments of deferred offering costs

 

 

 

 

(2,008

)

Holdback payment to sellers of MeridianLink

 

 

 

 

(25,665

)

Net cash provided by (used in) financing activities

 

(3,438

)

 

 

65,814

 

Net decrease in cash, cash equivalents and restricted cash

 

(13,386

)

 

 

(8,424

)

Cash, cash equivalents and restricted cash, beginning of period

 

113,645

 

 

 

39,881

 

Cash, cash equivalents and restricted cash, end of period

$

100,259

 

 

$

31,457

 

Reconciliation of cash, cash equivalents, and restricted cash

 

 

 

Cash and cash equivalents

$

100,259

 

 

$

29,236

 

Restricted cash

 

 

 

 

2,221

 

Cash, cash equivalents, and restricted cash

$

100,259

 

 

$

31,457

 

Condensed Consolidated Statements of Cash Flows

(unaudited)

(in thousands)

 

 

 

 

 

Six Months Ended June 30,

 

 

2022

 

2021

Supplemental disclosures of cash flow information:

 

 

 

Cash paid for interest

$

8,337

 

$

18,078

Cash paid for income taxes

 

762

 

 

212

Non-cash investing and financing activities:

 

 

 

Regulation A+ investor note assumed in business combination

$

3,265

 

$

Initial recognition of operating lease liability

 

3,372

 

 

Initial recognition of operating lease right-of-use asset

 

2,627

 

 

Share-based compensation expense capitalized to software additions

 

188

 

 

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

 

93

 

 

56

Vesting of restricted stock awards and RSUs

 

38

 

 

Related party receivable net against holdback payment to prior shareholders

 

 

 

4,335

Paycheck Protection Program ("PPP") Loan forgiven, reclassified from long- and short-term debt to payable due to sellers of Teledata Communications, Inc.

 

 

 

2,142

Deferred offering costs included in accounts payable and accrued expenses

 

 

 

327

Vesting of Class B Units

 

 

 

47

Reconciliation from GAAP to Non-GAAP Results

(unaudited)

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

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2022

 

2021

 

2022

 

2021

 

 

 

 

 

 

 

 

Operating income

$

8,900

 

 

$

19,234

 

 

$

23,494

 

 

$

38,639

 

Add: Share-based compensation expense

 

5,439

 

 

 

665

 

 

 

9,247

 

 

 

1,308

 

Add: Employer payroll taxes on employee stock transactions

 

3

 

 

 

 

 

 

148

 

 

 

 

Add: Sponsor and third-party acquisition related costs

 

99

 

 

 

741

 

 

 

2,386

 

 

 

2,114

 

Non-GAAP operating income

$

14,441

 

 

$

20,640

 

 

$

35,275

 

 

$

42,061

 

Non-GAAP operating margin

 

20

%

 

 

30

%

 

 

24

%

 

 

31

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2022

 

2021

 

2022

 

2021

 

 

 

 

 

 

 

 

Net income

$

2,172

 

 

$

7,432

 

 

$

9,651

 

 

$

14,663

 

Add: Share-based compensation expense

 

5,439

 

 

 

665

 

 

 

9,247

 

 

 

1,308

 

Add: Employer payroll taxes on employee stock transactions

 

3

 

 

 

 

 

 

148

 

 

 

 

Add: Sponsor and third-party acquisition related costs

 

99

 

 

 

741

 

 

 

2,386

 

 

 

2,114

 

Non-GAAP net income

$

7,713

 

 

$

8,838

 

 

$

21,432

 

 

$

18,085

 

Non-GAAP basic net income per share

$

0.10

 

 

$

0.17

 

 

$

0.27

 

 

$

0.35

 

Non-GAAP diluted net income per share

 

0.09

 

 

 

0.16

 

 

 

0.26

 

 

 

0.32

 

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

 

80,418,520

 

 

 

52,015,526

 

 

 

80,197,832

 

 

 

51,843,086

 

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

 

82,223,181

 

 

 

56,756,604

 

 

 

82,251,322

 

 

 

56,584,164

 

Non-GAAP net income margin

 

11

%

 

 

13

%

 

 

15

%

 

 

13

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2022

 

2021

 

2022

 

2021

 

 

 

 

 

 

 

 

Net income

$

2,172

 

 

$

7,432

 

 

$

9,651

 

 

$

14,663

 

Interest expense

 

5,436

 

 

 

9,846

 

 

 

9,794

 

 

 

19,908

 

Taxes

 

1,508

 

 

 

1,966

 

 

 

4,428

 

 

 

4,098

 

Depreciation and amortization

 

13,472

 

 

 

12,606

 

 

 

26,376

 

 

 

24,957

 

Share-based compensation expense

 

5,439

 

 

 

665

 

 

 

9,247

 

 

 

1,308

 

Employer payroll taxes on employee stock transactions

 

3

 

 

 

 

 

 

148

 

 

 

 

Expenses associated with IPO

 

 

 

 

 

 

 

 

 

 

194

 

Sponsor and third-party acquisition related costs

 

99

 

 

 

741

 

 

 

2,386

 

 

 

2,114

 

Deferred revenue reduction from purchase accounting for acquisitions prior to 2022

 

55

 

 

 

178

 

 

 

119

 

 

 

502

 

Adjusted EBITDA

$

28,184

 

 

$

33,434

 

 

$

62,149

 

 

$

67,744

 

Adjusted EBITDA margin

 

39

%

 

 

49

%

 

 

43

%

 

 

50

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2022

 

2021

 

2022

 

2021

 

 

 

 

 

 

 

 

Cost of revenue

$

27,226

 

 

$

21,106

 

 

$

51,764

 

 

$

40,582

 

Less: Share-based compensation expense

 

1,251

 

 

 

93

 

 

 

2,215

 

 

 

165

 

Less: Employer payroll taxes on employee stock transactions

 

 

 

 

 

 

 

54

 

 

 

 

Less: Amortization of developed technology

 

3,850

 

 

 

3,109

 

 

 

7,284

 

 

 

5,971

 

Non-GAAP cost of revenue

$

22,125

 

 

$

17,904

 

 

$

42,211

 

 

$

34,446

 

As a % of revenue

 

30

%

 

 

26

%

 

 

29

%

 

 

25

%

Reconciliation from GAAP to Non-GAAP Results

(unaudited)

(in thousands)

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2022

 

2021

 

2022

 

2021

 

 

 

 

 

 

 

 

General & administrative

$

20,806

 

 

$

16,591

 

 

$

38,993

 

 

$

34,186

 

Less: Share-based compensation expense

 

2,396

 

 

 

353

 

 

 

3,777

 

 

 

706

 

Less: Employer payroll taxes on employee stock transactions

 

 

 

 

 

 

 

33

 

 

 

 

Less: Depreciation expense

 

580

 

 

 

588

 

 

 

1,141

 

 

 

1,171

 

Less: Amortization of intangibles

 

9,042

 

 

 

8,909

 

 

 

17,951

 

 

 

17,815

 

Non-GAAP general & administrative

$

8,788

 

 

$

6,741

 

 

$

16,091

 

 

$

14,494

 

As a % of revenue

 

12

%

 

 

10

%

 

 

11

%

 

 

11

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2022

 

2021

 

2022

 

2021

 

 

 

 

 

 

 

 

Research and development

$

10,487

 

 

$

7,288

 

 

$

18,896

 

 

$

14,274

 

Less: Share-based compensation expense

 

1,288

 

 

 

82

 

 

 

2,365

 

 

 

164

 

Less: Employer payroll taxes on employee stock transactions

 

1

 

 

 

 

 

 

40

 

 

 

 

Non-GAAP research and development

$

9,198

 

 

$

7,206

 

 

$

16,491

 

 

$

14,110

 

As a % of revenue

 

13

%

 

 

11

%

 

 

11

%

 

 

10

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2022

 

2021

 

2022

 

2021

 

 

 

 

 

 

 

 

Sales and marketing

$

5,465

 

 

$

4,224

 

 

$

10,208

 

 

$

7,823

 

Less: Share-based compensation expense

 

504

 

 

 

137

 

 

 

890

 

 

 

273

 

Less: Employer payroll taxes on employee stock transactions

 

2

 

 

 

 

 

 

21

 

 

 

 

Non-GAAP sales and marketing

$

4,959

 

 

$

4,087

 

 

$

9,297

 

 

$

7,550

 

As a % of revenue

 

7

%

 

 

6

%

 

 

6

%

 

 

6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2022

 

2021

 

2022

 

2021

 

 

 

 

 

 

 

 

Net cash provided by operating activities

$

12,807

 

 

$

21,212

 

 

$

47,670

 

 

$

49,909

 

Less: Capital expenditures

 

(61

)

 

 

(308

)

 

 

(480

)

 

 

(553

)

Less: Capitalized software

 

(2,557

)

 

 

(1,412

)

 

 

(4,079

)

 

 

(2,216

)

Free cash flow

$

10,189

 

 

$

19,492

 

 

$

43,111

 

 

$

47,140

 

 

Press Contact
Becky Frost
(714) 784-5839
becky.frost@meridianlink.com

Investor Relations Contact
Erik Schneider
(714) 332-6357
InvestorRelations@meridianlink.com

Source: MeridianLink, Inc.