MeridianLink Announces Preliminary Unaudited Fourth Quarter Operating Results and Year-End Cash Position
Select Preliminary Unaudited Fourth Quarter 2023 Highlights
-
Revenue of approximately between
$73.5 million and$74.5 million ; -
Net income (loss) of approximately between
$(40.0) million and$(20.0) million ; -
Adjusted EBITDA of approximately between
$30.0 million and$31.0 million ; and -
Cash and cash equivalents as of
December 31, 2023 , of approximately$80.4 million .
These financial results are only preliminary estimates, which are based only on financial information available to the Company’s management as of the date hereof and are subject to change. The Company is in the process of finalizing its audited financial results as of and for the year ended
Stock Repurchase Program
Our Board of Directors has authorized a new stock repurchase program to acquire up to
About
MeridianLink® (NYSE: MLNK) powers digital lending and account opening for financial institutions and provides data verification solutions for consumer reporting agencies. MeridianLink’s scalable, cloud-based platforms help customers build deeper relationships with consumers through data-driven, personalized experiences across the entire lending life cycle.
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. 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.
We define adjusted EBITDA as net income (loss) before interest expense, taxes, depreciation and amortization, share-based compensation expense, employer payroll taxes on employee stock transactions, restructuring related costs, sponsor and third-party acquisition related costs, and deferred revenue reductions from purchase accounting for acquisitions prior to the adoption of ASU 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,” which we early adopted on
The reconciliation of net income (loss), the most directly comparable GAAP financial measure, to adjusted EBITDA for the three months ended
(in thousands) |
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Three months ended |
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Low
|
|
High
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Reconciliation of net income (loss) to adjusted EBITDA |
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|
|
|
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Net income (loss) |
|
$ |
(40,000 |
) |
|
$ |
(20,000 |
) |
Interest expense |
|
|
9,700 |
|
|
|
10,000 |
|
Taxes(1) |
|
|
38,200 |
|
|
|
18,200 |
|
Depreciation and amortization |
|
|
14,100 |
|
|
|
14,400 |
|
Share-based compensation expense |
|
|
8,000 |
|
|
|
8,300 |
|
Employer payroll taxes on employee stock transactions |
|
|
— |
|
|
|
85 |
|
Restructuring related costs |
|
|
— |
|
|
|
— |
|
Acquisition related costs |
|
|
— |
|
|
|
— |
|
Deferred revenue reduction from purchase accounting for acquisitions prior to 2022 |
|
|
— |
|
|
|
15 |
|
Adjusted EBITDA |
|
$ |
30,000 |
|
|
$ |
31,000 |
|
(1) |
Reflects estimate for the range of the valuation allowance to be applied against the Company’s deferred tax assets in its provision for income taxes that will be recorded upon the completion of its results as of and for the three months ended |
|
Forward-Looking Statements
This press release contains 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 our preliminary unaudited fourth quarter financial results; our year-end cash position; and our stock repurchase program, including the execution and amount of repurchases. 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, the completion of our audit, final adjustments, and other developments that may arise in the course of audit and review procedures and changes in market and economic condition, as well as those risks set forth in Item 1A. Risk Factors, or elsewhere, in our Annual Report on Form 10-K for the fiscal year ended
View source version on businesswire.com: https://www.businesswire.com/news/home/20240206332889/en/
Press Contact
(714) 784-5839
Media@meridianlink.com
Investor Relations Contact
(714) 332-6357
InvestorRelations@meridianlink.com
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