MeridianLink(US:MLNK)2025-03-13 20:15Revenue and Growth - The company reported that approximately 70% of revenue for the full-year 2023 was attributable to lending activities, highlighting the importance of lending for financial institutions [247]. - Revenues for the year ended December 31, 2024, were $316,298 thousand, an increase of $12,681 thousand or 4% compared to $303,617 thousand in 2023, primarily driven by a $17.1 million increase from Lending Software Solutions [291]. - Total net revenues for the year ended December 31, 2024, were $316.3 million, an increase of 4.5% from $303.6 million in 2023 [424]. - Subscription fees contributed $264.4 million to total revenues in 2024, up from $256.8 million in 2023, reflecting a growth of 2.4% [425]. Expenses and Costs - General and administrative expenses increased to $116,458 thousand in 2024 from $92,663 thousand in 2023, reflecting the company's investment in compliance and operational scalability [291]. - Research and development expenses were $39,454 thousand in 2024, a decrease from $47,517 thousand in 2023, indicating a shift in focus or efficiency improvements [291]. - Sales and marketing expenses rose to $43,182 thousand in 2024 from $35,792 thousand in 2023, as the company continues to invest in brand awareness and customer acquisition [291]. - Share-based compensation expense increased significantly to $51.355 million in 2024, up from $30.550 million in 2023, reflecting a 68.3% increase [353]. Profitability and Loss - The net loss for 2024 was $29,772 thousand, compared to a net loss of $42,539 thousand in 2023, indicating an improvement in financial performance despite ongoing challenges [291]. - Adjusted EBITDA for 2024 was $130.7 million, up from $113.0 million in 2023, reflecting a year-over-year increase of approximately 15.5% [329]. - Operating income decreased to $4,636,000 in 2024 from $15,533,000 in 2023, reflecting a decline of 70.2% [347]. Cash Flow and Financing - Net cash provided by operating activities was $77.8 million in 2024, an increase of $9.8 million, or 14%, compared to $67.9 million in 2023 [308]. - Net cash used in investing activities was $7.5 million in 2024, a decrease of $27.6 million, or 137%, from net cash provided in 2023 [312]. - The company authorized a new stock repurchase program in January 2024 to acquire up to $125.0 million of common stock, with $29.7 million remaining for repurchase as of December 31, 2024 [315]. - The company repurchased common stock totaling $104.847 million in 2024, compared to $61.171 million in 2023, reflecting a 71.2% increase in stock repurchases [353]. Assets and Liabilities - As of December 31, 2024, the company had cash and cash equivalents of $92.8 million and accounts receivable of $34.4 million [304]. - Total assets decreased to $961,333,000 in 2024 from $996,251,000 in 2023, a decline of 3.5% [345]. - Total liabilities increased to $533,840,000 in 2024, up from $488,004,000 in 2023, marking an increase of 9.4% [345]. - Stockholders' equity decreased to $427,493,000 in 2024 from $508,247,000 in 2023, a decline of 16% [345]. Market and Strategic Focus - The company believes there is significant untapped market potential in digital lending and account opening markets, focusing on middle-market financial institutions [246]. - The company aims to strengthen customer relationships through high-quality implementations and support services, which are critical for customer retention [250]. - The company has migrated its solutions to the public cloud to enhance innovation and security, which is expected to drive incremental revenue opportunities [245]. Legal and Compliance - The company incurred $1.5 million in settlements of class action lawsuits and $0.4 million in related legal fees during the year ended December 31, 2024 [331]. - The company did not identify any impairment of goodwill in 2024, indicating stable financial health in its reporting units [322]. - The company reported no material interest or penalties related to income taxes for the years ended December 31, 2024, 2023, or 2022 [416].