Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______ to_______ Commission file number: 001-40680 MeridianLink, Inc. (Exact Name of Registrant as Specified in its Charter) Delaware 82-4844620 ...

Fourth Quarter and Fiscal Year 2024 Review March 2025 ©2025 MERIDIANLINK, INC. ALL RIGHTS RESERVED. Forward-Looking Statements and Disclaimers Information in this presentation and the accompanying oral presentation contain forward-looking statements 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, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future e ...

MeridianLink, Inc. (NYSE:MLNK) Q4 2024 Earnings Conference Call March 6, 2025 5:00 PM ET Company Participants Gianna Rotellini - Senior Director-Investor Relations and Strategic Initiatives Nicolaas Vlok - Chief Executive Officer Larry Katz - President Elias Olmeta - Chief Financial Officer Conference Call Participants Cristopher Kennedy - William Blair Andrew Schmidt - Citi Saket Kalia - Barclays Matthew Kikkert - Stifel Jessica Wang - Raymond James Operator Ladies and gentlemen, thank you for standing by, ...

Core Insights - MeridianLink (MLNK) reported quarterly earnings of $0.08 per share, exceeding the Zacks Consensus Estimate of $0.07 per share, and a significant improvement from a loss of $0.29 per share a year ago [1] - The company achieved revenues of $79.44 million for the quarter, surpassing the Zacks Consensus Estimate by 1.80% and showing growth from $74.58 million year-over-year [3] Earnings Performance - The earnings surprise for the quarter was 14.29%, while the previous quarter saw a negative surprise of -33.33% [2] - Over the last four quarters, MeridianLink has only surpassed consensus EPS estimates once [2] Revenue Insights - MeridianLink has consistently topped consensus revenue estimates, achieving this four times over the last four quarters [3] - The current consensus EPS estimate for the upcoming quarter is $0.10, with expected revenues of $81.04 million, and for the current fiscal year, the estimate is $0.37 on revenues of $329.75 million [8] Market Performance - MeridianLink shares have declined approximately 10.6% since the beginning of the year, contrasting with the S&P 500's decline of -0.7% [4] - The company's current Zacks Rank is 4 (Sell), indicating expectations of underperformance in the near future [7] Industry Context - The Technology Services industry, to which MeridianLink belongs, is currently ranked in the top 27% of over 250 Zacks industries, suggesting a favorable industry outlook [9]

Financial Performance - Fourth quarter revenue reached $79.4 million, representing a 7% year-over-year growth[1] - Full year 2024 revenue totaled $316.3 million, a 4% increase year-over-year[6] - The company expects full year 2025 revenue to be in the range of $326.0 million to $334.0 million[12] - Total revenues for Q4 2024 reached $79,437 thousand, representing a 7% increase from $74,579 thousand in Q4 2023[24] - Subscription fees contributed $65,208 thousand in Q4 2024, up from $61,999 thousand in Q4 2023, marking a growth of 4%[26] Profitability Metrics - Non-GAAP operating income was $17.8 million, or 22% of revenue, while GAAP operating loss was $(0.2) million[6] - Adjusted EBITDA for the fourth quarter was $33.4 million, accounting for 42% of revenue[6] - Non-GAAP operating income for Q4 2024 was $17,828 million, up from $15,209 million in Q4 2023, representing a 17% increase[35] - Net loss for Q4 2024 was $7,745 million, a significant improvement compared to a net loss of $29,574 million in Q4 2023[36] - Adjusted EBITDA for the year ended December 31, 2024, reached $130,704 million, compared to $112,990 million in 2023, reflecting an increase of 15.7%[36] - Non-GAAP net income for the year ended December 31, 2024, was $18,026 million, compared to a loss of $15,543 million in 2023[35] - Non-GAAP basic net income per share for Q4 2024 was $0.08, compared to a loss of $0.29 per share in Q4 2023[35] - The net loss margin improved to (10)% in Q4 2024 from (40)% in Q4 2023, showing a positive trend in profitability[36] Cash Flow and Liquidity - Cash and cash equivalents increased to $92,765 thousand as of December 31, 2024, compared to $80,441 thousand at the end of 2023[32] - The company’s cash flows from operating activities for the year ended December 31, 2024, were $77,802 thousand, compared to $67,964 thousand in 2023, showing a 14.5% increase[32] - Net cash provided by operating activities for Q4 2024 was $13,813 million, compared to $12,478 million in Q4 2023, representing an increase of 10.7%[41] - Free cash flow for Q4 2024 reached $12,050 million, up from $9,636 million in Q4 2023, marking a growth of 25.5%[41] - Total net cash provided by operating activities for the year ended December 31, 2024, was $77,802 million, compared to $67,964 million in 2023, reflecting a year-over-year increase of 14.0%[41] - Total free cash flow for the year ended December 31, 2024, was $70,343 million, up from $57,771 million in 2023, indicating a growth of 21.8%[41] Expenses and Investments - Operating expenses for Q4 2024 were $52,986 thousand, up from $42,764 thousand in Q4 2023, reflecting a 24% increase[24] - Research and development expenses for the year ended December 31, 2024, totaled $39,454 million, down from $47,517 million in 2023, indicating a reduction of 16.9%[40] - General and administrative expenses for Q4 2024 were $32,393 million, an increase from $22,481 million in Q4 2023, representing a 44% rise[40] - Capitalized software costs decreased from $2,246 million in Q4 2023 to $1,609 million in Q4 2024[41] - Capital expenditures also saw a decline from $596 million in Q4 2023 to $154 million in Q4 2024[41] Debt and Assets - Long-term debt increased to $464,922 thousand in 2024 from $420,004 thousand in 2023, representing a 10.7% rise[22] - Total assets decreased to $961,333 thousand in 2024 from $996,251 thousand in 2023[22] Strategic Initiatives - MeridianLink achieved record bookings in the fourth quarter, driven by demand for MeridianLink® One[2] - The company launched a new Share-of-Wallet add-on for MeridianLink® Consumer, resulting in conversion rates of up to 9%[6] - A new partnership with ScoreNavigator was announced, enhancing credit report analysis for customers[6] - The Board of Directors approved a stock repurchase program authorizing up to $129.5 million of common stock[1] Litigation and Settlements - The company incurred $1.5 million in settlements related to litigation during the year ended December 31, 2024[36]

Core Insights - Zest AI has expanded its partnership with MeridianLink to enhance fraud protection for financial institutions through the introduction of Zest Protect, an AI-powered fraud detection tool [1][3][4] - The partnership aims to address the significant rise in consumer fraud, which exceeded $10 billion in losses in 2023, with credit unions and community banks experiencing a 69% increase in fraud cases [2][3] Company Overview - Zest AI focuses on using AI technology to improve lending processes and broaden access to equitable lending, having been recognized in the Forbes Fintech 50 [5] - MeridianLink provides modern software platforms for financial institutions, enabling efficient growth through cloud-based solutions for digital lending and data verification [6][7] Partnership Details - The collaboration allows MeridianLink's over 2,000 customers to utilize Zest Protect, which integrates seamlessly with existing fraud review processes, enhancing the speed and accuracy of fraud detection [1][3] - Zest Protect is customizable, allowing financial institutions to adjust risk thresholds based on various factors, thereby improving their fraud prevention strategies [3][4] Industry Context - The financial sector is facing escalating challenges related to fraud, with every dollar lost to fraud costing institutions four times that amount in expenses and lost time [4] - The partnership is positioned as a proactive measure to combat increasingly sophisticated fraud, including threats from AI-generated fraud [4]

Core Insights - Automatic has announced a strategic partnership with MeridianLink to enhance automotive lending solutions [1][4] - The collaboration aims to leverage Automatic's dealership network technology and MeridianLink's decisioning capabilities to improve lending processes [2][3] Group 1: Company Overview - Automatic is a fintech firm focused on connecting independent car dealerships with lenders, providing a cost-effective solution for the automotive financing sector [6] - MeridianLink is a provider of software platforms for financial institutions, offering solutions for digital lending, account opening, and data verification [7] Group 2: Partnership Details - The partnership will enable financial institutions to access Automatic's platform seamlessly, enhancing their lending processes and member satisfaction [4] - MeridianLink's Advanced Decisioning capabilities will be integrated into Automatic's framework, allowing for real-time loan analysis and improved risk management [3] Group 3: Market Impact - The collaboration is expected to empower lenders to access new clients safely and optimize loan aggregation, thereby capitalizing on market opportunities [4] - This partnership represents a significant milestone for Automatic in its mission to foster an 'Open Marketplace' within the automotive financing landscape [4]

Financial Data and Key Metrics Changes - The company achieved revenue of $80.4 million, representing a 5% year-over-year growth, in line with the high end of guidance [6][33] - Adjusted EBITDA was $33.8 million, reflecting a 42% EBITDA margin, exceeding the high end of guidance [6][33] - Free cash flow generated was $18.7 million, with cash and cash equivalents at $82.3 million at the end of Q3 [33][43] Business Line Data and Key Metrics Changes - Total lending software revenue grew by 7% year-over-year, accounting for nearly 78% of total revenue [36] - Non-mortgage lending revenue increased by 9% year-over-year, driven by ACV release from existing and new customers [36] - Mortgage-related revenue within lending software solutions declined by 7% year-over-year due to customer churn [37] Market Data and Key Metrics Changes - Community banks and credit unions are experiencing deposit constraints, with loan-to-deposit ratios remaining elevated [8] - The affordability of used cars remains a challenge due to high prices and elevated financing rates, although lower used car prices are expected over time [9] - Mortgage rates have increased recently, moderating demand and reflecting macroeconomic uncertainty [10] Company Strategy and Development Direction - The company is focused on a land-and-expand strategy, deepening relationships with customers and generating demand through digital transformation [12] - Management emphasized the importance of developing leadership to scale the business, with recent promotions and onboarding of key executives [11] - The company plans to invest in innovation to meet evolving digital lending needs and enhance customer experiences [12][22] Management Comments on Operating Environment and Future Outlook - Management expects headwinds to persist in the mortgage market, with a slow recovery anticipated [10][46] - The company is focused on disciplined cost management while investing for future success [48] - Management believes that as the macro environment improves, headwinds impacting the customer base will moderate over the medium term [47] Other Important Information - The company returned $31.3 million of capital to shareholders through stock buybacks in Q3 [6][45] - MeridianLink was included in IDC's top 50 of its 2024 Global FinTech 100 list, highlighting its market differentiation [72] Q&A Session Summary Question: What is being done to accelerate the release of ACV? - Management indicated that ACV release is driven by bookings growth and stable delivery times, not by accelerated delivery processes [56][57] Question: When might mortgage headwinds improve? - Management does not anticipate a fast return to normal, expecting mortgage rates to need to drop below five for a meaningful impact [59] Question: What is the expected revenue growth in a normalized environment? - Management indicated that in a normalized environment, revenue growth could reach mid-teens percentage [61][62] Question: What factors are driving success in cross-sell? - Cross-sell success is attributed to the platform's variety of solutions and strong interest in mortgage and data analytics capabilities [64][66] Question: Will the macro environment impact M&A activity? - Management expects increased M&A activity as rates come down, benefiting the company as larger institutions tend to be consolidators [69][70]

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Core Viewpoint - MeridianLink reported quarterly earnings of $0.06 per share, missing the Zacks Consensus Estimate of $0.09 per share, and down from $0.10 per share a year ago [1][2] Financial Performance - The company posted revenues of $80.37 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 1.04%, compared to $76.49 million in the same quarter last year [3] - MeridianLink has topped consensus revenue estimates three times over the last four quarters [3] Earnings Surprises - The quarterly report represents an earnings surprise of -33.33%, and the company has not surpassed consensus EPS estimates over the last four quarters [2][4] Stock Performance - MeridianLink shares have lost about 2.9% since the beginning of the year, while the S&P 500 has gained 24.3% [4] Future Outlook - The current consensus EPS estimate for the coming quarter is $0.08 on revenues of $79.36 million, and $0.27 on revenues of $315.43 million for the current fiscal year [8] - The estimate revisions trend for MeridianLink is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [7] Industry Context - The Technology Services industry, to which MeridianLink belongs, is currently in the top 28% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [9]