(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Exhibit No. | Exhibit Description | ||||
99.1 | |||||
99.2 | |||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
MERIDIANLINK, INC. | ||||||||
Date: September 8, 2021 | ||||||||
By: | /s/ Chad Martin | |||||||
Chad Martin | ||||||||
Chief Financial Officer |
June 30, | December 31, | ||||||||||
2021 | 2020 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $29,236 | $37,739 | |||||||||
Restricted cash | 2,221 | 2,142 | |||||||||
Accounts receivable, net of allowance for doubtful accounts | 29,086 | 22,358 | |||||||||
Prepaid expenses and other current assets | 9,322 | 5,812 | |||||||||
Related party receivable from sellers of MeridianLink | — | 4,123 | |||||||||
Total current assets | 69,865 | 72,174 | |||||||||
Property and equipment, net | 7,105 | 7,600 | |||||||||
Intangible assets, net | 320,162 | 328,032 | |||||||||
Deferred tax assets, net | 5,121 | 9,484 | |||||||||
Goodwill | 565,054 | 542,965 | |||||||||
Other assets | 3,043 | 3,450 | |||||||||
Total assets | $970,350 | $963,705 | |||||||||
Liabilities and Members’ Deficit | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $2,400 | $2,257 | |||||||||
Accrued liabilities | 21,730 | 21,070 | |||||||||
Deferred revenue | 21,094 | 10,873 | |||||||||
TazWorks, LLC purchase liability | — | 85,646 | |||||||||
Related party liability due to sellers of MeridianLink | — | 30,000 | |||||||||
Payable due to sellers of Teledata Communications, Inc. | 2,142 | — | |||||||||
Current portion of long-term debt, net of debt issuance costs | 1,757 | 2,955 | |||||||||
Total current liabilities | 49,123 | 152,801 | |||||||||
Long-term debt, net of debt issuance costs | 613,095 | 516,877 | |||||||||
Deferred rent | 456 | 543 | |||||||||
Other long-term liabilities | 127 | — | |||||||||
Total liabilities | 662,801 | 670,221 | |||||||||
Commitments and contingencies | |||||||||||
Class A units, no par value, unlimited units authorized, 319,859 and 319,913 units issued and outstanding as of June 30, 2021 and December 31, 2020, respectively; liquidation preference of $420,706 and $402,607 as of June 30, 2021 and December 31, 2020, respectively | 319,859 | 319,913 | |||||||||
Members’ Deficit | |||||||||||
Class B units, no par value, unlimited units authorized, 52,112,904 and 51,492,805 units issued and outstanding as of June 30, 2021 and December 31, 2020, respectively | 9 | — | |||||||||
Additional paid-in capital | 3,368 | 3,909 | |||||||||
Accumulated deficit | (15,687) | (30,338) | |||||||||
Total members’ deficit | (12,310) | (26,429) | |||||||||
Total liabilities, preferred units, and members’ deficit | $970,350 | $963,705 | |||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Revenues, net | $68,474 | $49,535 | $136,285 | $93,153 | |||||||||||||||||||
Cost of revenues: | |||||||||||||||||||||||
Subscription and services | 17,997 | 12,114 | 34,611 | 23,249 | |||||||||||||||||||
Amortization of developed technology | 3,109 | 2,131 | 5,971 | 4,204 | |||||||||||||||||||
Total cost of revenues | 21,106 | 14,245 | 40,582 | 27,453 | |||||||||||||||||||
Gross profit | 47,368 | 35,290 | 95,703 | 65,700 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
General and administrative | 16,622 | 13,693 | 34,967 | 27,318 | |||||||||||||||||||
Research and development | 7,288 | 4,726 | 14,274 | 9,033 | |||||||||||||||||||
Sales and marketing | 4,224 | 2,177 | 7,823 | 4,201 | |||||||||||||||||||
Total operating expenses | 28,134 | 20,596 | 57,064 | 40,552 | |||||||||||||||||||
Operating income | 19,234 | 14,694 | 38,639 | 25,148 | |||||||||||||||||||
Other (income) expense, net: | |||||||||||||||||||||||
Other income | (10) | (23) | (30) | (24) | |||||||||||||||||||
Interest expense, net | 9,846 | 8,517 | 19,908 | 17,374 | |||||||||||||||||||
Total other expense, net | 9,836 | 8,494 | 19,878 | 17,350 | |||||||||||||||||||
Income before provision for income taxes | 9,398 | 6,200 | 18,761 | 7,798 | |||||||||||||||||||
Provision for income taxes | 1,966 | 1,304 | 4,098 | 1,576 | |||||||||||||||||||
Net income | $7,432 | $4,896 | $14,663 | $6,222 | |||||||||||||||||||
Class A preferred return | (9,232) | (8,462) | (18,165) | (16,747) | |||||||||||||||||||
Net loss attributable to Class B unitholders | ($1,800) | ($3,566) | ($3,502) | ($10,525) | |||||||||||||||||||
Weighted average units outstanding – basic and diluted | 52,015,526 | 51,248,738 | 51,843,086 | 51,024,837 | |||||||||||||||||||
Loss per common unit – basic and diluted | ($0.03) | ($0.07) | ($0.07) | ($0.21) | |||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Subscription fees | $60,427 | $44,000 | $120,743 | $82,771 | |||||||||||||||||||
Professional services | 5,615 | 3,651 | 11,106 | 7,400 | |||||||||||||||||||
Other | 2,432 | 1,884 | 4,436 | 2,982 | |||||||||||||||||||
Total | $68,474 | $49,535 | $136,285 | $93,153 | |||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Lending Software Solutions | $45,243 | $32,799 | $88,377 | $63,338 | |||||||||||||||||||
Data Verification Software Solutions | 23,231 | 16,736 | 47,908 | 29,815 | |||||||||||||||||||
Total | $68,474 | $49,535 | $136,285 | $93,153 | |||||||||||||||||||
% Growth | |||||||||||||||||||||||
TCI and TazWorks Contribution | 24% | 24% | |||||||||||||||||||||
Lending Software Solutions Contribution | 13% | 14% | |||||||||||||||||||||
Data Verification Software Contribution | 1% | 8% | |||||||||||||||||||||
Total % Growth | 38% | 46% | |||||||||||||||||||||
% Mortgage Loan Market Contribution | |||||||||||||||||||||||
Lending Software Solutions Contribution | 8% | 12% | 10% | 11% | |||||||||||||||||||
Data Verification Software Contribution | 71% | 94% | 72% | 92% | |||||||||||||||||||
Total % Mortgage Loan Market Contribution | 30% | 39% | 32% | 37% | |||||||||||||||||||
Six months ended June 30, | |||||||||||
2021 | 2020 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $14,663 | $6,222 | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 24,957 | 19,458 | |||||||||
Provision for doubtful accounts | 89 | 300 | |||||||||
Amortization of debt issuance costs | 1,817 | 349 | |||||||||
Unit-based compensation expense | 1,308 | 1,313 | |||||||||
Loss on disposal of fixed assets | 207 | 72 | |||||||||
Loss on sublease liability | 405 | – | |||||||||
Deferred income taxes | 3,842 | 1,522 | |||||||||
Other adjustments | (16) | – | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | (2,641) | (5,777) | |||||||||
Prepaid expenses and other assets | (1,774) | (1,030) | |||||||||
Accounts payable | (39) | 972 | |||||||||
Accrued liabilities | (3,081) | (339) | |||||||||
Deferred revenue | 10,221 | 7,286 | |||||||||
Deferred rent | (49) | (31) | |||||||||
Net cash provided by operating activities | 49,909 | 30,317 | |||||||||
Cash flows from investing activities: | |||||||||||
Acquisitions, net of cash acquired – TazWorks, LLC | (85,421) | – | |||||||||
Acquisitions, net of cash acquired – Saylent Technologies, Inc | (35,957) | – | |||||||||
Capitalized software additions | (2,216) | (1,428) | |||||||||
Purchases of property and equipment | (553) | (2,829) | |||||||||
Net cash used in investing activities | (124,147) | (4,257) | |||||||||
Cash flows from financing activities: | |||||||||||
Repurchases of Class A Units | (54) | (900) | |||||||||
Repurchases of Class B Units | (1,887) | (1,420) | |||||||||
Proceeds from long-term debt | 100,000 | – | |||||||||
Principal payments of long-term debt | (2,590) | (2,078) | |||||||||
Payments of debt issuance costs | (1,970) | – | |||||||||
Payments of financing obligation due to related party | – | (40) | |||||||||
Payments of Class A cumulative preferred return | (12) | (135) | |||||||||
Payments of deferred offering costs | (2,008) | – | |||||||||
Holdback payment to prior shareholders, net related party receivable | (25,665) | – | |||||||||
Net cash provided by (used in) financing activities | 65,814 | (4,573) | |||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | (8,424) | 21,487 | |||||||||
Cash, cash equivalents and restricted cash, beginning of period | 39,881 | 97,770 | |||||||||
Cash, cash equivalents and restricted cash end of period | $31,457 | $119,257 | |||||||||
Reconciliation of cash, cash equivalents, and restricted cash | |||||||||||
Cash and cash equivalents | $29,236 | $119,257 | |||||||||
Restricted cash | 2,221 | – | |||||||||
Cash, cash equivalents, and restricted cash | $31,457 | $119,257 | |||||||||
Supplemental disclosures of cash flow information: | |||||||||||
Cash paid for interest | $18,078 | $17,258 | |||||||||
Cash paid for income taxes | 212 | 69 | |||||||||
Non-cash investing and financing activities: | |||||||||||
Purchases of property and equipment included in accounts payable and accrued expenses | $56 | $146 | |||||||||
Deferred offering costs included in accounts payable and accrued expenses | 327 | – | |||||||||
Vesting of Class B Units | 47 | 53 | |||||||||
Paycheck Protection Program (“PPP”) Loan forgiven, reclassified from long- and short-term debt to payable due to sellers of Teledata Communications, Inc | 2,142 | ||||||||||
Related party receivable net against holdback payment to prior shareholders | 4,335 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Operating Income | $19,234 | $14,694 | $38,639 | $25,148 | |||||||||||||||||||
Add: stock-based compensation expense | 665 | 673 | 1,308 | 1,313 | |||||||||||||||||||
Add: sponsor and third-party acquisition related costs | 741 | 500 | 2,114 | 1,000 | |||||||||||||||||||
Non-GAAP operating income | 20,640 | 15,867 | 42,061 | 27,461 | |||||||||||||||||||
Non-GAAP operating margin | 30% | 32% | 31% | 29% | |||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net income (loss) | $7,432 | $4,896 | $14,663 | $6,222 | |||||||||||||||||||
Add: stock-based compensation expense | 665 | 673 | 1,308 | 1,313 | |||||||||||||||||||
Add: sponsor and third-party acquisition related costs | 741 | 500 | 2,114 | 1,000 | |||||||||||||||||||
Non-GAAP net income | 8,838 | 6,069 | 18,085 | 8,535 | |||||||||||||||||||
Non-GAAP basic net income per Class B unit | 0.17 | 0.12 | 0.35 | 0.17 | |||||||||||||||||||
Non-GAAP diluted net income per Class B unit | 0.16 | 0.11 | 0.32 | 0.15 | |||||||||||||||||||
Weighted average Class B units used to compute basic net loss per unit attributable to Class B unitholders | 52,015,526 | 51,248,738 | 51,843,086 | 51,024,837 | |||||||||||||||||||
Weighted average Class B units used to compute diluted net loss per unit attributable to Class B unitholders | 56,756,604 | 57,192,530 | 56,584,164 | 56,968,629 | |||||||||||||||||||
Non-GAAP net income margin | 13% | 12% | 13% | 9% | |||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net income (loss) | $7,432 | $4,896 | $14,663 | $6,222 | |||||||||||||||||||
Interest expense | 9,846 | 8,517 | 19,908 | 17,374 | |||||||||||||||||||
Taxes | 1,966 | 1,304 | 4,098 | 1,576 | |||||||||||||||||||
Depreciation and amortization | 12,606 | 9,763 | 24,957 | 19,458 | |||||||||||||||||||
Unit-based compensation expense | 665 | 673 | 1,308 | 1,313 | |||||||||||||||||||
Expenses associated with IPO | – | – | 194 | – | |||||||||||||||||||
Sponsor and third-party acquisition related costs | 741 | 500 | 2,114 | 1,000 | |||||||||||||||||||
Deferred revenue reduction from purchase accounting | 178 | 171 | 502 | 347 | |||||||||||||||||||
Adjusted EBITDA | $33,434 | $25,824 | $67,744 | $47,290 | |||||||||||||||||||
Adjusted EBITDA Margin | 49% | 52% | 50% | 51% | |||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Cost of revenue | $21,106 | $14,245 | $40,582 | $27,453 | |||||||||||||||||||
Less: stock-based compensation expense | 93 | 28 | 165 | 55 | |||||||||||||||||||
Less: amortization of developed technology | 3,109 | 2,131 | 5,971 | 4,204 | |||||||||||||||||||
Non-GAAP cost of revenue | 17,904 | 12,086 | 34,446 | 23,194 | |||||||||||||||||||
As a % of revenue | 26% | 24% | 25% | 25% | |||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Sales and marketing | $4,224 | $2,177 | $7,823 | $4,201 | |||||||||||||||||||
Less: stock-based compensation expense | 137 | 72 | 273 | 141 | |||||||||||||||||||
Non-GAAP sales and marketing | 4,087 | 2,105 | 7,550 | 4,060 | |||||||||||||||||||
As a % of revenue | 6% | 4% | 6% | 4% | |||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Research and development | $7,288 | $4,726 | $14,274 | $9,033 | |||||||||||||||||||
Less: stock-based compensation expense | 82 | 88 | 164 | 159 | |||||||||||||||||||
Non-GAAP research and development | 7,206 | 4,638 | 14,110 | 8,874 | |||||||||||||||||||
As a % of revenue | 11% | 9% | 10% | 10% | |||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
General & administrative | $16,622 | $13,693 | $34,967 | $27,318 | |||||||||||||||||||
Less: stock-based compensation expense | 353 | 485 | 706 | 958 | |||||||||||||||||||
Less: depreciation expense | 588 | 589 | 1,171 | 1,169 | |||||||||||||||||||
Less: amortization of intangibles | 8,909 | 7,043 | 17,815 | 14,085 | |||||||||||||||||||
Non-GAAP general & administrative | 6,772 | 5,576 | 15,275 | 11,106 | |||||||||||||||||||
As a % of revenue | 10% | 11% | 11% | 12% | |||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net cash provided by operating activities | $21,212 | $11,744 | $49,909 | $30,317 | |||||||||||||||||||
Less: Capital expenditures | 308 | 1,159 | 553 | 2,829 | |||||||||||||||||||
Less: Capitalized software | 1,412 | 738 | 2,216 | 1,428 | |||||||||||||||||||
Free cash flow | $19,492 | $9,847 | $47,140 | $26,060 | |||||||||||||||||||
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Cover |
Sep. 07, 2021 |
---|---|
Cover [Abstract] | |
Document Type | 8-K/A |
Document Period End Date | Sep. 07, 2021 |
Entity Registrant Name | MeridianLink, Inc. |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 001-40680 |
Entity Tax Identification Number | 33-0849406 |
Entity Address, Address Line One | 1600 Sunflower Avenue, #200 |
Entity Address, City or Town | Costa Mesa |
Entity Address, State or Province | CA |
Entity Address, Postal Zip Code | 92626 |
City Area Code | 714 |
Local Phone Number | 708-6950 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock, par value $0.001 per share |
Trading Symbol | MLNK |
Security Exchange Name | NYSE |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Central Index Key | 0001834494 |
Amendment Flag | true |
Amendment Description | Correction to Press Release |
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