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Avid Technology, Inc.NasdaqGS:AVID Stock Report

Market Cap US$1.2b
Share Price
n/a
US$27.57
n/aintrinsic discount
1Y0.4%
7D0.1%
Portfolio Value
​
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Avid Technology, Inc.

NasdaqGS:AVID Stock Report

Market Cap: US$1.2b

This company has been acquired

The company may no longer be operating, as it has been acquired. Find out why through their latest events.

Avid Technology (AVID) Stock Overview

Avid Technology, Inc., together with its subsidiaries, develops, markets, sells, and supports software and integrated solutions for video and audio content creation, management, and distribution in the United States and internationally. More details

AVID fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance1/6
Financial Health0/6
Dividends0/6

Rewards

Trading at 21.9% below our estimate of its fair value

Earnings are forecast to grow 49.44% per year

Risk Analysis

High level of non-cash earnings

Negative shareholders equity

Interest payments are not well covered by earnings

Profit margins (3.1%) are lower than last year (10.8%)


AVID Community Fair Values

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Avid Technology, Inc. Competitors

Price History & Performance

Summary of share price highs, lows and changes for Avid Technology
Historical stock prices
Current Share PriceUS$27.04
52 Week HighUS$33.41
52 Week LowUS$19.78
Beta1.13
1 Month Change0.60%
3 Month Change1.43%
1 Year Change0.45%
3 Year Change156.06%
5 Year Change306.01%
Change since IPO3.01%

Recent News & Updates

Recent updates

Analysis Article • Aug 07

Calculating The Fair Value Of Avid Technology, Inc. (NASDAQ:AVID)

Key Insights Using the 2 Stage Free Cash Flow to Equity, Avid Technology fair value estimate is US$32.28 Current share...
Analysis Article • Jul 02

Returns on Capital Paint A Bright Future For Avid Technology (NASDAQ:AVID)

There are a few key trends to look for if we want to identify the next multi-bagger. Typically, we'll want to notice a...
Analysis Article • May 27

Is Avid Technology, Inc. (NASDAQ:AVID) Potentially Undervalued?

Avid Technology, Inc. ( NASDAQ:AVID ), is not the largest company out there, but it saw a double-digit share price rise...
Analysis Article • Apr 21

Do Avid Technology's (NASDAQ:AVID) Earnings Warrant Your Attention?

It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story...
Analysis Article • Feb 16

At US$31.33, Is It Time To Put Avid Technology, Inc. (NASDAQ:AVID) On Your Watch List?

Avid Technology, Inc. ( NASDAQ:AVID ), might not be a large cap stock, but it received a lot of attention from a...
Analysis Article • Jan 03

Is Avid Technology, Inc. (NASDAQ:AVID) Trading At A 22% Discount?

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Avid Technology, Inc...
Analysis Article • Dec 16

Here's Why Avid Technology (NASDAQ:AVID) Has Caught The Eye Of Investors

The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even...
Analysis Article • Nov 03

At US$24.73, Is It Time To Put Avid Technology, Inc. (NASDAQ:AVID) On Your Watch List?

While Avid Technology, Inc. ( NASDAQ:AVID ) might not be the most widely known stock at the moment, it saw a...
Seeking Alpha • Oct 13

Avid Technology announces amended credit facility

Avid Technology (NASDAQ:AVID) on Thursday announced an amended secured credit facility, including $186.7M in senior secured term loans and a $120M unfunded revolving credit line. Shares of AVID rose ~5%. Lenders decided to term out existing revolver borrowings into a new term loan and increase the undrawn revolver availability on more favorable terms as a result of AVID's improving financial profile. The amendment increases the revolving credit facility from $70M to $120M and adds a $20M incremental term loan to the existing $166.7M term loan. $19M from the incremental term loan was used to pay off the existing revolving credit facility draw. The amendment includes more favorable terms and does not result in any changes to financial covenants, pricing or maturity (Feb. 2027). "Although total outstanding debt has not changed materially as of the completion of the transaction, the additional undrawn revolver availability provides AVID more financial flexibility to execute growth plans and capital deployment strategy," said CFO Ken Gayron.
Analysis Article • Sep 23

Avid Technology, Inc.'s (NASDAQ:AVID) Intrinsic Value Is Potentially 90% Above Its Share Price

How far off is Avid Technology, Inc. ( NASDAQ:AVID ) from its intrinsic value? Using the most recent financial data...
Seeking Alpha • Aug 29

Avid Technology jumps 10% on joining SmallCap 600

Avid Technology (NASDAQ:AVID) jumped 9.8% postmarket Monday after word that it's joining the S&P SmallCap 600 index. The stock will replace Plantronics/Poly (POLY), after that company's acquisition by HP. The index change is effective prior to the open of trading on Thursday, Sept. 1.
Analysis Article • Aug 21

Should You Be Adding Avid Technology (NASDAQ:AVID) To Your Watchlist Today?

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks...
Analysis Article • Aug 03

What Is Avid Technology, Inc.'s (NASDAQ:AVID) Share Price Doing?

While Avid Technology, Inc. ( NASDAQ:AVID ) might not be the most widely known stock at the moment, it saw a...
Seeking Alpha • Aug 02

Amazon Studios and Avid Technology join hands for production editorial in the AWS Cloud

Avid Technology (NASDAQ:AVID) announced a three-year agreement to bring cloud-based editorial to Amazon Studios’ expanding slate of more than 300 original movies and series. Amazon Studios will untether their editorial process to allow creative work to happen remotely, and centralize the editorial and content workflows in the cloud. This collaboration will bring Avid’s NEXIS media storage solutions to editors and other content contributors wherever they are, supporting creative teams that are spread across the globe.
Seeking Alpha • Jul 27

Avid Continues To Deliver, Seat-Based Model Raises Concerns

Avid continues to deliver overall subscriber growth and deliver on getting customers onto subscriptions. Supply chain issues harangue maintenance and parts of integrated solutions. There are cutbacks on programming as guided by companies like Netflix, but entertainment is still resilient. Still, with macro headwinds risking unemployment spiraling, we're a little worried about per-seat revenue models. Published on the Value Lab 24/7/22 Avid Technology (AVID) is one of the many companies that are now moving away from perpetual license models to subscription models delivered through the cloud. The advantages are clear. They mean more recurring revenue and the opportunity to rebill clients who'd since gone dead unless they'd been on maintenance contracts. Avid overall users continue to grow, and pricing and volume efforts are helping grow revenues, even though there's some cannibalisation of other businesses and a bit of an issue on the semiconductor and hardware side. While the company is attractive, it is not cheap, and with tech being a difficult area, especially enterprise tech that charges on a per-seat basis, we think the macro-outlook is still going to be an issue for getting returns on the stock. Pass for now. Q1 Update Q1 is generally a pretty strong quarter, as noted by one of the analysts on the call. However, this time supply chain issues, specifically problems with semiconductor supply, have been hurting some of the elements of the business that are usually more stalwart, and slowed down turnover in some of the higher ticket businesses for the company. Revenue overall grew by 6%, which isn't bad, and gross margins improved YoY as well. Financial Highlights (Q1 2022 Pres) Subscription revenue continues to grow as well as the company converts customers who were previously on perpetual licenses that mean recognized revenue on a one-off basis into customers that will constitute a growing flow of revenue once they're closed in for a full year of revenue recognition. The strategy has two prongs of rebilling customers once deemed dead as well as allowing for revenue uplift between 120%-140% thanks to continued maintenance arrangements but also the ability to re-tier and reprice customers to better discriminate the user-base. In particular, the release of Pro Tools Artist as a lower tier hobbyist offering opened the door for higher prices on enterprise clients. Breakdown by Type (Q1 2022 Pres) Subscription revenue combined with maintenance revenue was a little more disappointing, and this was primarily because the company saw declines in maintenance revenue. Maintenance is sometimes offered together with subscription services especially to larger customers who have converted to perpetual licenses but not always, so in part these declines can be explained by an expected cannibalisation. But as for maintenance as part of integrated solutions for the larger clients, a segment that is still generally seeing growth, supply chain issues have meant delayed recognition of revenues associated with parts that cannot be delivered because they cannot be sourced from semiconductor suppliers. Likewise, tickets are rising in integrated solutions but delivery has slowed on account of these semiconductor issues. Nonetheless, the overall strategy continues to take for with an increase from 75% to 79% in recurring revenue as a proportion of total revenue.
Analysis Article • May 17

Should You Be Adding Avid Technology (NASDAQ:AVID) To Your Watchlist Today?

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...
Seeking Alpha • May 06

Avid Technology: Sell Off After Earnings Is Unjustified

Avid recently reported its Q1 2022 earnings and the stock plummeted 20%. Guidance for the next quarter slightly missed estimate but management re-affirmed full year guidance. The transition to SaaS is still moving at full speed with subscription revenue up 32.5% year over year. This is a good opportunity to buy the dip as the company is trading at a compelling valuation.
Seeking Alpha • Apr 06

Avid Technology Continues Its Recurring Revenue Push And Is Reasonably Valued

Avid is undergoing a shift from perpetual licenses to getting people on its cloud-based suite offering. Similar to the shift Adobe made some years ago, this should cause increases in margins. End-markets of production and creative work should remain pretty strong, as entertainment and media become increasingly important for households. Valuation does not appear crazy, especially when factoring in the margin improvements expected from the shift to a more recurring revenue model.

Shareholder Returns

AVIDUS TechUS Market
7D0.1%1.6%-0.3%
1Y0.4%58.2%24.1%

Return vs Industry: AVID underperformed the US Tech industry which returned 32.7% over the past year.

Return vs Market: AVID underperformed the US Market which returned 14.1% over the past year.

Price Volatility

Is AVID's price volatile compared to industry and market?
AVID volatility
AVID Average Weekly Movement0.3%
Tech Industry Average Movement10.8%
Market Average Movement7.2%
10% most volatile stocks in US Market16.2%
10% least volatile stocks in US Market3.2%

Stable Share Price: AVID has not had significant price volatility in the past 3 months.

Volatility Over Time: AVID's weekly volatility has decreased from 6% to 0% over the past year.

About the Company

FoundedEmployeesCEOWebsite
19871,485Jeff Rosicawww.avid.com

Avid Technology, Inc., together with its subsidiaries, develops, markets, sells, and supports software and integrated solutions for video and audio content creation, management, and distribution in the United States and internationally. The company’s video products and solutions include the Media Composer, a cloud-enabled solution used to edit video content; Avid NEXIS shared storage systems; Maestro solutions for the integration of virtual sets, augmented reality, and video wall control into existing workflows; AirSpeed 5000 and AirSpeed 5500 on-air server solutions; and MediaCentral, a media production suite. Its audio products and solutions comprise Pro Tools digital audio software solutions to facilitate the audio production process; Sibelius solution to create, edit, and publish musical scores; S1 and dock line audio control surface; S4 and S6 audio control surfaces; and VENUE | S6L live sound system for mixing audio for live sound reinforcement.

Avid Technology, Inc. Fundamentals Summary

How do Avid Technology's earnings and revenue compare to its market cap?
AVID fundamental statistics
Market capUS$1.19b
Earnings (TTM)US$12.95m
Revenue (TTM)US$413.46m
92.1x
P/E Ratio
2.9x
P/S Ratio

Is AVID overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
AVID income statement (TTM)
RevenueUS$413.46m
Cost of RevenueUS$152.49m
Gross ProfitUS$260.97m
Other ExpensesUS$248.02m
EarningsUS$12.95m

Last Reported Earnings

Sep 30, 2023

Next Earnings Date

n/a

Earnings per share (EPS)0.29
Gross Margin63.12%
Net Profit Margin3.13%
Debt/Equity Ratio-176.9%

How did AVID perform over the long term?

See historical performance and comparison

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2023/11/09 13:32
End of Day Share Price 2023/11/06 00:00
Earnings2023/09/30
Annual Earnings2022/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Avid Technology, Inc. is covered by 9 analysts. 3 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Michael NicholsB. Riley Securities, Inc.
Jeffrey RathCanaccord Genuity
Steven FrankelColliers Securities