BURLINGTON, Mass.—Avid announced total revenues inched up 1.3% for Q3 2022, led by strong subscription growth but offset by continuing supply chain challenges that have prevented the company from shipping “a significant amount” of orders received for integrated solutions during the first nine months of 2022.
Profit for Q3 totaled $12 million and net income was 27 cents per share. Earnings, adjusted for stock option expense and non-recurring costs, were 38 cents per share, beating Wall St.’s expectations of 32 cents per share.
Subscription revenues increased 49.2% year over year to $41.8 million and subscription and maintenance revenue grew 17.6% year over year to $69.1 million. Total revenue increased 1.3% year-over-year to $103.0 million in Q3. Paid Cloud-enabled software subscriptions increased by an all-time record of 32,600 during the quarter to approximately 482,900 as of Sept. 30, 2022, an increase of 24.1% year-over-year.
“We are pleased by the strong growth from our subscription software business, particularly enterprise subscription and reacceleration of our creative tools, most notably Pro Tools,” said Avid CEO/President Jeff Rosica. “Demand for our integrated solutions products remains strong, and while we continue to see some lingering constraints in the supply chain, we were able to resume production of certain audio hardware products late in the third quarter and we believe the remaining constraints are temporary. For the fourth quarter and full year, we believe we are well positioned to deliver earnings growth despite revenue headwinds from the impacts of foreign exchange and slower-than expected recovery from the current global supply chain situation.”
