{"id":454170,"date":"2021-03-09T16:08:28","date_gmt":"2021-03-09T21:08:28","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=454170"},"modified":"2021-03-09T16:08:28","modified_gmt":"2021-03-09T21:08:28","slug":"avid-technology-announces-q4-and-fy-2020-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/avid-technology-announces-q4-and-fy-2020-results\/","title":{"rendered":"Avid Technology Announces Q4 and FY 2020 Results"},"content":{"rendered":"
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\n 15.3% Sequential Revenue Growth in the Fourth Quarter as End Markets Continue to Recover from COVID-19 Downturn<\/strong>
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\n 54.9% Year-Over-Year Subscription Revenue Growth in the Fourth Quarter Driven by Net Increase of Approximately 27,000 Paid Subscriptions and Strong Enterprise Subscription Sales in the Quarter<\/strong>\n <\/p>\n

\n $30.7 million in Net Cash Provided by Operating Activities in the Fourth Quarter Leading to Free Cash Flow of $30.6 million in the Quarter<\/strong>\n <\/p>\n

BURLINGTON, Mass., March 09, 2021 (GLOBE NEWSWIRE) — Avid\u00ae<\/sup> (NASDAQ: AVID), a leading technology provider that powers the media and entertainment industry, today announced its financial results for the fourth quarter and full year ended December 31, 2020.<\/p>\n

Total revenue increased 15.3% sequentially in the fourth quarter, as many of Avid\u2019s end markets showed continued signs of recovery from the COVID-19 pandemic, while still lower year-over-year. During the fourth quarter, the Recurring Revenue components of the Company\u2019s business remained strong with reported subscription revenue of $24.5 million, up 54.9% year-over-year, reflecting strong enterprise subscription sales in the quarter. At the end of 2020, the Company had $231.3 million in Revenue Backlog expected to be recognized during the next 12 months, up 16.0% from the end of 2019. Also, in the fourth quarter, improved profitability and strong seasonal contribution from working capital resulted in Free Cash Flow of $30.6 million for the quarter, the highest quarterly amount since 2007.<\/p>\n

The non-Recurring Revenue portions of the Company\u2019s business related to product and professional services continued to show strong signs of sequential recovery during the fourth quarter, although they still remain below pre-COVID levels. Product revenue from perpetual software licenses and integrated solutions increased 19.2% sequentially, to $42.6 million, in the fourth quarter, but declined by 28.7% year-over-year.<\/p>\n

For the full year 2020, Avid\u2019s revenues were negatively impacted by the COVID-19 pandemic, decreasing 12.5% from 2019. However, subscription revenue grew 61.2%, to $72.8 million, surpassing 20% of total revenue, up from 11% in 2019. During 2020, the Company saw a 280 basis point increase in gross margin, to 63.3%, primarily due to a greater mix of software and subscription sales during the year. The benefit from the higher gross margin and a decrease in operating expenses from cost savings realized during the year resulted in improved profitability and cash generation. As of December 31, 2020, the Company had $79.9 million in cash and cash equivalents.<\/p>\n

\n Fourth Quarter 2020 Financial and Business Highlights<\/strong>\n <\/p>\n