MeridianLink Reports Fourth Quarter and Fiscal Year 2024 Results

Fourth quarter revenue of $79.4 million grows 7% year-over-year

COSTA MESA, Calif.--(BUSINESS WIRE)--March 06, 2025-- 

MeridianLink, Inc. $(MLNK)$, a leading provider of modern software platforms for financial institutions and consumer reporting agencies, today announced financial results for the fourth quarter and fiscal year ended December 31, 2024. Additionally, MeridianLink's Board of Directors has approved a stock repurchase program that authorizes the Company to repurchase up to $129.5 million of its common stock.

"MeridianLink$(R)$ finished the year strongly, with record bookings despite a challenging macro environment, which is continued evidence of customers turning to MeridianLink(R) One to implement digital lending strategies that win," said Nicolaas Vlok, chief executive officer of MeridianLink. "Our dedication to customer success paired with our focus on execution has solidified our position as the leading digital lending platform for mid-market financial institutions. Looking forward, we are deploying capital into the business to drive demand and accelerate revenue growth. With our solid foundation and incremental investment, we believe we are well-positioned to scale the business in 2025 and beyond."

Quarterly Financial Highlights:

   -- Revenue of $79.4 million, an increase of 7% year-over-year 
 
   -- Lending software solutions revenue of $63.8 million, an increase of 7% 
      year-over-year 
 
   -- Operating loss of $(0.2) million, or 0% of revenue, and non-GAAP 
      operating income of $17.8 million, or 22% of revenue 
 
   -- Net loss of $(7.7) million, or (10)% of revenue, and adjusted EBITDA of 
      $33.4 million, or 42% of revenue 
 
   -- Cash flows from operations of $13.8 million, or 17% of revenue, and free 
      cash flow of $12.1 million, or 15% of revenue 

2024 Fiscal Year Financial Highlights:

   -- Revenue of $316.3 million, an increase of 4% year-over-year 
 
   -- Lending software solutions revenue of $249.3 million, an increase of 7% 
      year-over-year 
 
   -- Operating income of $4.6 million, or 1% of revenue, and non-GAAP 
      operating income of $67.7 million, or 21% of revenue 
 
   -- Net loss of $(29.8) million, or (9)% of revenue, and adjusted EBITDA of 
      $130.7 million, or 41% of revenue 
 
   -- Cash flows from operations of $77.8 million, or 25% of revenue, and free 
      cash flow of $70.3 million, or 22% of revenue 

Business and Operating Highlights:

   -- MeridianLink finished the year strong with a healthy pipeline and record 
      bookings driven by demand for MeridianLink(R) One, demonstrating the 
      success of our land and expand strategy. 
 
   -- In the quarter, fifteen customers selected MeridianLink(R) Access, 
      demonstrating continued demand for our enhanced Point-of-Sale solution 
      that provides personalized, digital consumer experiences. 
 
   -- MeridianLink achieved the best new logo quarter in two years, including a 
      significant deal with an $8 billion bank who purchased both 
      MeridianLink(R) Mortgage and Consumer to enable cross-selling and their 
      digital transformation efforts. 
 
   -- MeridianLink launched a new Share-of-Wallet add-on for MeridianLink(R) 
      Consumer and Opening customers, which FedChoice Federal Credit Union 
      implemented, resulting in conversion rates of up to 9% for their 
      campaigns. 
 
   -- MeridianLink announced a new partnership with ScoreNavigator, an advanced 
      credit report analysis tool, providing our customers with a more 
      efficient screening and communication platform to increase application 
      approval opportunities for lenders. 

Stock Repurchase Program

Our board of directors has authorized a new stock repurchase program to acquire up to $129.5 million of the Company's common stock in February 2025. The program is effective immediately and supersedes all prior authorized stock repurchase programs. There was an aggregate of approximately $29.7 million remaining for repurchase under the prior stock repurchase programs. Stock repurchases are subject to the Company's discretion based on various factors, including market conditions.

Business Outlook

Based on information as of today, March 6, 2025, the Company issues full year 2025 financial guidance as follows:

Full Year 2025:

   -- Revenue is expected to be in the range of $326.0 million to $334.0 
      million 
 
   -- Adjusted EBITDA is expected to be in the range of $131.5 million to 
      $137.5 million 

Conference Call Information

MeridianLink will hold a conference call to discuss its fourth quarter and fiscal year 2024 results today, March 6, 2025, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). The conference call can be accessed by dialing (800) 549-8228 from North America toll-free or the International number of (289) 819-1520 with Conference ID 31623. 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 8:59 p.m. Pacific Time (11:59 p.m. Eastern Time) on Thursday, March 13, 2025, by dialing (888) 660-6264 from North America or the International number of (289) 819-1325 with Playback Passcode 31623.

MeridianLink uses its investor relations website , as a means of disclosing material information and for complying with its disclosure obligations under Regulation FD. Information contained on or accessible through the websites is not incorporated by reference into this release, and links for these websites are inactive textual references only.

About MeridianLink

MeridianLink(R) (NYSE: MLNK) empowers financial institutions and consumer reporting agencies to drive efficient growth. MeridianLink's cloud-based digital lending, account opening, background screening, and data verification software solutions leverage shared intelligence from a unified data platform, MeridianLink(R) One, to enable customers of all sizes to identify growth opportunities, effectively scale up, and support compliance efforts, all while powering an enhanced experience for staff and consumers alike.

For more than 25 years, MeridianLink has prioritized the democratization of lending for consumers, businesses, and communities. Learn more at www.meridianlink.com.

Operational Measures Definitions

We reference bookings, which is an internal operational measure of the business. Bookings is defined as the minimum annual contracted value, or ACV, of newly sold capabilities of our software-as-a-service, or SaaS, products and professional services orders, inclusive of any corresponding fees owed to Third Parties. Bookings is a useful metric as it reflects the SaaS and services that have not been delivered. Management uses bookings to plan their go-to-market and services activities and inform product development efforts.

We reference ACV and ACV release, which are internal operational measures of the business. In any given period, ACV represents the minimum annualized SaaS revenue commitment from fully activated contracts in effect for customers at the end of the applicable period. ACV release is the portion of ACV that is recognized as subscription revenue throughout the twelve-month period beginning on the date after our software solutions are fully implemented. ACV and ACV release are useful to investors in assessing the growth and trajectory of our business. ACV and ACV release are used by management in financial and operational decision-making.

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:

   -- Non-GAAP operating income (loss): GAAP operating income (loss), excluding 
      the impact of share-based compensation, employer payroll taxes on 
      employee stock transactions, expenses associated with our public offering, 
      charges and gains in connection with litigation unrelated to our core 
      business, expenses related to debt modification, restructuring related 
      costs, expenses for services performed by a third party consultant 
      relating to efforts to remediate our material weakness, and third party 
      acquisition related costs. Non-GAAP operating margin is Non-GAAP 
      operating income (loss) divided by total GAAP revenue. 
   -- Non-GAAP net income (loss): GAAP net income (loss), excluding the impact 
      of share-based compensation, employer payroll taxes on employee stock 

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