BURLINGTON, Mass.—Avid is reporting strong growth in its subscription software products, with paid cloud-enabled software subscriptions increased by approximately 23,100 during Q4, 2022 to approximately 506,000 as of December 31, 2022, an increase of 23.2% year-over-year.
Its Q4, 2022 earnings report also indicated that subscription average recurring revenue (ARR) was $141.3 million (as of December 31, 2022), an increase of 37.1% year-over-year.
“We remain pleased with the overall business performance in the fourth quarter as we continue to see strong growth in our software subscription business for both creative and enterprise customers,” explained Jeff Rosica, Avid’s president and CEO. “Our customers continue to adopt our enterprise subscription offerings, which, combined with creative subscription growth, resulted in solid growth in ARR. In addition, we continued making progress in resolving supply chain challenges in our integrated solutions that we experienced throughout 2022.”
Overall, fourth quarter revenue was $116.1 million, a decrease of (2.5%) year-over-year, net income was $25.3 million, an increase of 66.0% year-over-year. Adjusted EBITDA was $24.8 million, a decrease of (0.6%) year-over-year, net income per common share was $0.57, an increase of $0.24 year-over-year, and Non-GAAP Earnings per Share was $0.45, a decrease of ($0.01) year-over year.
Revenue was in the middle of Avid’s Q4 guidance range, Adjusted EBITDA was below our implied Q4 guidance range and Non-GAAP Earnings per Share was within our implied Q4 guidance range.
“While the one-time, non-cash adjustment to revenue we took in the fourth quarter impacted our results for the quarter, absent this adjustment, we would have been at the high-end of our implied Q4 guidance range for revenue and Non-GAAP Earnings per Share, and so, as we start 2023, we are confident in the underlying performance of the business as our product innovations continue to drive strong customer demand for our solutions,” Rosica added.
