MeridianLink(MLNK) - 2024 Q4 - Annual Results

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]