Announcement • Apr 03
Avid Technology, Inc. Announces Chief Executive Officer Changes Avid Technology, Inc. announced that it has appointed Wellford Dillard as the organization’s next Chief Executive Officer (CEO). Wellford succeeds Jeff Rosica, who is staying with the company in an advisory capacity to ensure a smooth and successful transition. Wellford joins Avid after serving as the CEO of Marigold, a leading provider of omni-channel marketing SaaS solutions, used by businesses to manage and deepen customer engagement. Wellford has more than 20 years of experience in the software industry and, prior to Marigold, held CFO roles at vertical software leaders such as Opower and GetWellNetwork, among others. Announcement • Nov 17
Avid Technology, Inc. Files Form 15 Avid Technology, Inc. has announced that it has filed a Form 15 with the Securities and Exchange Commission to voluntarily deregister its common stock under the Securities Exchange Act of 1934, as amended. The par value of the company's common stock was $0.01 per share. Announcement • Nov 09
Symphony Technology Group, LLC completed the acquisition of Avid Technology, Inc. (NasdaqGS:AVID). Symphony Technology Group, LLC entered into a definitive agreement to acquire Avid Technology, Inc. (NasdaqGS:AVID) for $1.2 billion on August 9, 2023. All-cash transaction values Avid at approximately $1.4 billion, inclusive of Avid’s net debt. Under the terms of the agreement, Avid stockholders will receive $27.05 in cash for each share of Avid common stock. The transaction will be financed through a combination of equity and debt financing and is not subject to a financing condition. Sixth Street Partners and Silver Point are providing committed debt financing in support of the transaction. Sixth Street Partners will make an equity investment of approximately $960.99 million to fund a portion of the financing and the lender parties committed to provide buyer with debt financing of $660 million senior secured credit facility consisting of a $600 million term loan facility and and a $60 million revolving credit facility to finance a portion of the transaction and for working capital purposes. Upon completion of the transaction, Avid will become a privately-held company, and its common stock will no longer be traded on Nasdaq. In case of termination of the transaction under certain circumstances, Avid will be required to pay to a termination fee of $39.8 million. Symphony Technology is required to pay to Avid a termination fee equal to $84.5 million.The transaction is subject to Avid stockholder approval, regulatory approvals, the expiration or termination of the required waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and other customary closing conditions. The transaction was unanimously approved by Avid’s Board of Directors. The transaction was also approved by Symphony Technology Board. The transaction was approved at the special meeting of stockholders of Avid Technology held on November 2, 2023. The transaction is expected to close during the fourth quarter of 2023. Goldman Sachs & Co. LLC is serving as financial advisor and fairness opinion provider to Avid, and Beth Berg and Daniel J. Belke of Sidley Austin LLP are serving as legal counsel. Rothschild & Co is serving as financial advisor to Symphony Technology, and Steve Camahort and Dana Kromm of Paul Hastings LLP are serving as legal counsel to Symphony Technology. Innisfree M&A Inc. is the proxy solicitation agent for Avid for a fee of approximately $25,000. Avid has agreed to pay Goldman Sachs a transaction fee of approximately $20 million which is contingent upon consummation of the merger.Symphony Technology Group, LLC completed the acquisition of Avid Technology, Inc. (NasdaqGS:AVID) on November 7, 2023. As a result of the completion of this transaction, Avid common stock will cease trading prior to the opening of trading on November 7, 2023, and will no longer be listed on the Nasdaq Stock Market. Avid will operate as a privately-held company and remain headquartered in Burlington, Massachusetts Announcement • Sep 23
Avid Technology, Inc. Unveils Pro Tools Sketch for Modern Music Creators and to Expand Pro Tools Workflows Avid announced Pro Tools Sketch™?, a new non-linear, clip-based creation tool in Pro Tools software that is also available as a free iPad app. Pro Tools Sketch enables musicians to quickly capture new ideas and freely experiment with concepts and songs, and find inspiration with a massive library of free loops, virtual instruments and effects. years in the making, this new addition to the Pro Tools workflow adds a must-have creation process directly alongside the Edit and Mix windows that established modern linear audio recording. With Pro Tools Sketch, Avid addresses the growing needs of modern creators, no matter their preferred music creation style. While the Pro Tools Sketch iPad app is available for free to anyone via the Apple App Store, the Pro Tools 2023.9 update is now available to all Pro Tools customers on an active subscription or perpetual license with a current Software Updates + Support Plan, as well as all users of the free Pro Tools Intro application. Pro Tools Sketch is a significant expansion of the Pro Tools music creation workflow, adding a non-linear creation environment to the proven Pro Tools toolset used on the majority of top music releases, movies and TV shows. Users can now start with clip-based sketches in which loops, MIDI and recordings can be freely organized and played, and then exported to be shared with friends. Sketch can also be moved to the Pro Tools timeline for further production using its world-class editing and mixing tools. Other New Pro Tools 2023.9 Features Pro Tools 2023.9 software update also introduces Export Selected Range, which enables Pro Tools Studio and Ultimate customers to export selected portions of the timeline as a new session. This feature is perfect for breaking up large post sessions, separating a live recording into a session per song, and saving important elements of the session as bite size pieces. The release also delivers drag-and-drop plugin slot reordering to give users greater flexibility in experimenting with and changing processing order, and more. The Pro Tools 2023.9software release is now available free to download via the Apple App Store. The Pro Tools 2023., software release is now available to all Pro tools customers on an active subscription or annual license with a current Software Updates+ Support Plan, as well as All users of the free Pro Tools Intro application. New Pro Tools subscriptions (Art, Studio, and Ultimate) can be purchased on the Avid Webstore or through an authorized Avid reseller which can be located at avid.com/find-a-reseller. Pro Tools Intro can beloaded for free at Avid.com/pro- tools-intro. Avid has also announced that it is making available the Pro Tools perpetual license purchase option after receiving clear and consistent feedback from the user community. Announcement • Sep 07
Avid Technology, Inc. Launches Stream IO Subscription-based Ingest & Playout Platform for Next-Generation Media Production Avid Technology, Inc. announcing the commercial availability of Avid | Stream IO™, a new flexible subscription-based software platform for production ingest and playout of news, sports, live entertainment and other TV content. Already, broadcasters around the world – including CNBC-TV18 and BQ Prime (formerly BloombergQuint) – are signing up to take advantage of the new solution at launch. With a flexible architecture that can be configured to ingest or play out IP streams and SDI streams, Avid | Stream IO allows news, sports and live content producers to migrate from legacy workflows and on-premises deployment to cloud and IP workflows at their own pace. Avid | Stream IO provides flexible channel configurations, supporting popular video formats, codecs and resolutions, enabling media companies to leverage new and emerging technologies within their production workflows. It offers complete deployment flexibility, now supporting both off-the-shelf certified hardware for on-premises studio environments and standard virtual machines in the cloud. The new platform also allows media companies to increase efficiency by combining different ingest sources in a single configuration. Ideal for live entertainment and multi-camera productions, Avid | Stream IO will support all common production formats?, including SDI at launch, Compressed IP streams SRT /RTMP soon after, with NDI, and SMPTE 2110 to follow later next year. As a next-generation product, Avid | Stream IO offers all the best capabilities of Avid’s proven hardware-based server solutions—AirSpeed® and FastServe®—while expanding support for emerging IP standards and higher-precision formats, such as 4K and HDR. Avid | Stream IO also supports Avid’s proven fast-turnaround workflows, including shot-listing, craft editing and logging—all while tightly integrating with Avid’s MediaCentral™ production platform to minimize disruption to production. Announcement • Sep 01
Avid Launches Media Composer Panel Software Development Kit to Propel Third-Party Innovation for Media's Top Editing Tool Avid®? is expanding the media & entertainment industry's top editing tool with the introduction of the Media Composer®? Panel Software Development Kit (SDK) to bring a wider universe of custom and third-party apps, services and libraries into Media Composer's video editing user experience. Now, Avid's technology partners and customers can expand their workflows by sourcing, building and integrating the components that their editors want and need directly within Media Composer, optimizing their creative processes in the manner they choose. One of the Avid Community Association's top-requested solutions, the Media Composer Panel SDK is a language-independent solution for Windows and Mac that connects to a range of commands and functions. It grants access to applications and services through an integrated HTML5 panel, giving developers more freedom to create custom integrations and enhance workflows. For example, large editing teams at studios and post houses managing a wide range of critical processes can make working with Media Composer more efficient than ever before by directly integrating the third-party tools they need to expedite dailies uploads, VFX pulls, logging for news, sports, reality TV, and scripted shows, and content review and approvals. Available to customers and third-party developers now, the Media composer Panel SDK will be seen in demonstrations during the IBC2023 Show next month (Avid stand 7.A59) with several integrations including: Autodesk - Moxion is a secure collaboration platform that enables more productive workflows from pre production through final review to help professionals in film and TV create freely and efficiently. This collaboration will help expedite review and approval workflows and give editors more freedom as they design and make content to inspire and delight audiences worldwide. Developers and customers can contact the Media Composer Panel SDK Team to explore their integration possibilities. Avid will demonstrate a wide range of new Media Composer features and capabilities at the IBC2023 Show in Amsterdam, September 15-18, stand 7.A59. To plan user visit with Avid and book an appointment to explore own vision for the future of open media production, go to Avid at IBC2023 today. People who create media for a living become greater creators with Avid's award-winning technology solutions to make, manage and monetize today's most celebrated video and audio content--from iconic movies and binge-worthy TV series, to network news and sports, to recorded music and the live stage. Other trademarks are property of their respective owners. Product features, specifications, system requirements and availability are subject to change without notice. Announcement • Aug 25
Avid Announces the Availability of Its Avid VENUE 7.2 Software Update Avid announced the availability of its Avid VENUE 7.2 software update. The latest advancements in VENUE 7.2 allow more routing capabilities for the Avid VENUE | S6L mixing console, allowing through command of a live mix at scale. This summer, millions of music fans around the world are hearing S6L on some of the most demanding live tours. Avid VenUE | S6L users can now seamlessly patch any input source from anywhere on the VENUE | S6 L platform or connected network -- to any input channel, with fully Automatic delay Compensation, giving engineers unlimited patching flexibility. The advanced and flexible routing capabilities in VENUE 7. 2 include input channels that can be routed directly from six different pickoff points: p of chchannel allows users to get the signal at the raw source -- straight from the analomic pre. The True Gain pickoff point ensures consistent gain structure for engineers when sharing the mic pre across multiple systems, regardless of their role in setup. Pre-EQ, Insert Return, Pre-Fader Post-Mute and Post Fader allow users to choose which level of processing is applied for the duplicated input. In addition to these internal processing paths, users also have direct access to any physical source on thVENUE | S6L plplatform, such as stage and local inputs, and sources from any MADI-192 or MILAN-192 option card. With an extensive array of patching and routing capabilities, users enjoy enhanced creative freedom and can effortlessly position audio exactly where they need it to be, eliminating the need for time-consuming legacy workarounds. Avid's innovations in live sound include the recent addition of Soothe Live for S6L, free for a year with a support plan. Addressing common problems in mixing live sound like overly bright instruments, proximity effect in vocals,uddiness and instrument bleed, Soothe Live works in real time and was developed specifically for S6L users to work quickly and efficiently to get the highest quality mixes regardless of venue size, layout, or acoustics. The Avid VENUE 7.2 software update for Avid VENUE |S6L is now available. Customers can learn more about this live sound innovation at <URL> Avid Powers Greater Creators. People who create media for a living become greater creators with Avid's technology solutions to make, manage and monetize today's most celebrated video and audio content--from iconic movies and binge-worthy TV series, to network news and sports, to recorded music and the live stage. What began more than 30 years ago with invention of non linear digital video editing has led to individual artists, creative teams and organizations everywhere subscribing to powerful tools and collaborating securely in the cloud. The company continue to re-imagine the many ways editors, physicians, journalists, and other content creators will bring their stories to life. Announcement • Aug 11
Symphony Technology Group, LLC entered into a definitive agreement to acquire Avid Technology, Inc. (NasdaqGS:AVID) for $1.2 billion. Symphony Technology Group, LLC entered into a definitive agreement to acquire Avid Technology, Inc. (NasdaqGS:AVID) for $1.2 billion on August 9, 2023. All-cash transaction values Avid at approximately $1.4 billion, inclusive of Avid’s net debt. Under the terms of the agreement, Avid stockholders will receive $27.05 in cash for each share of Avid common stock. The transaction will be financed through a combination of equity and debt financing and is not subject to a financing condition. Sixth Street Partners and Silver Point are providing committed debt financing in support of the transaction. Sixth Street Partners will make an equity investment of approximately $960.99 million to fund a portion of the financing and the lender parties committed to provide buyer with debt financing of $600 million to finance a portion of the transaction and for working capital purposes. Upon completion of the transaction, Avid will become a privately-held company, and its common stock will no longer be traded on Nasdaq. In case of termination of the transaction under certain circumstances, Avid will be required to pay to a termination fee of $39.8 million. Symphony Technology is required to pay to Avid a termination fee equal to $84.5 million.
The transaction is subject to Avid stockholder approval, regulatory approvals, the expiration or termination of the required waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and other customary closing conditions. The transaction was unanimously approved by Avid’s Board of Directors. The transaction was also approved by Symphony Technology. The transaction is expected to close during the fourth quarter of 2023. Goldman Sachs & Co. LLC is serving as financial advisor and fairness opinion provider to Avid, and Beth Berg and Daniel J. Belke of Sidley Austin LLP are serving as legal counsel. Rothschild & Co is serving as financial advisor to Symphony Technology, and Steve Camahort and Dana Kromm of Paul Hastings LLP are serving as legal counsel to Symphony Technology. New Risk • Aug 11
New major risk - Financial position The company's interest payments are not well covered by earnings. Net interest cover: 2.8x This is considered a major risk. If the company is unable to fund interest repayments on its debt through profits, it may be forced into reducing its debt burden through selling assets, undertaking a potentially costly capital raising or even into bankruptcy in the worst case scenario. Currently, the following risks have been identified for the company: Major Risks Interest payments are not well covered by earnings (2.8x net interest cover). Negative equity (-US$119m). High level of non-cash earnings (101% accrual ratio). Minor Risk Profit margins are more than 30% lower than last year (7.6% net profit margin). Price Target Changed • Aug 10
Price target decreased by 11% to US$31.40 Down from US$35.38, the current price target is an average from 7 analysts. New target price is 18% above last closing price of US$26.66. The company is forecast to post earnings per share of US$0.84 for next year compared to US$1.24 last year. Valuation Update With 7 Day Price Move • Aug 04
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to US$27.35, the stock trades at a forward P/E ratio of 24x. Average forward P/E is 23x in the Tech industry in the US. Total returns to shareholders of 206% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at US$33.53 per share. Announcement • Aug 04
Avid Technology, Inc. to Report Q2, 2023 Results on Aug 09, 2023 Avid Technology, Inc. announced that they will report Q2, 2023 results After-Market on Aug 09, 2023 New Risk • Aug 04
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of American stocks, typically moving 10.0% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Negative equity (-US$119m). Minor Risks Share price has been volatile over the past 3 months (10.0% average weekly change). Buying Opportunity • Jul 14
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 19%. The fair value is estimated to be US$33.52, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.5% over the last 3 years. Earnings per share has grown by 51%. For the next 3 years, revenue is forecast to grow by 8.1% per annum. Earnings is also forecast to grow by 17% per annum over the same time period. Announcement • Jun 09
Avid Delivers Pro Tools Innovation with Track Markers and Expanded Immersive Mixing Workflows Avid® announced an update for its Pro Tools® software that introduces track markers, expanded immersive mixing capabilities, and better interoperability with Media Composer® sessions. This will include the ability to navigate and communicate ideas with markers at the track level. The release also improves user experience with more intuitive MIDI tools and guided I/O setup, as well as surround monitoring capabilities to the Pro Tools | Carbon™ interface. Pro Tools 2023.6 introduces track markers that enable music and audio post users to install points on a track, performance notes, dialogue and lyric references and edit comments. Customers can use markers to give detailed, color-coded comments within a track to speed navigation and improve arrangement, mixing, and collaboration workflows. Track markers also offer improved interoperability and compatibility with Media Composer when exporting Pro Tools sessions. Pro Tools now also features new track widths up to 9.1.6 to support Dolby Atmos and other immersive formats including MPEG-H. These new track widths expand the formats that can be mixed and monitored, but they also enable more advanced 3D plugin processing. Users can now also import and export higher quality Dolby Atmos mixes with 96 kHz ADM file support. New track widths offer increased resolution for better spatial accuracy for modern gaming engines and VR workflows with support for up to 7th order Ambisonics. This release continues to improve upon Pro Tools user experience with several new updates. Selecting and configuring the audio hardware is the most fundamental step in setting up a system and Pro Tools now streamlines the process with a guided setup if no device is configured, helping users get up and running faster. The Event Operations window has also been redesigned to enable the adjustment of various MIDI properties like timing, velocity, and transposition. The award-winning Pro Tools | Carbon audio interface also sees an update in this Pro Tools release with the addition of surround support. Now supporting configurations from 5.1 to 7.1.2, the HDX DSP-accelerated system becomes even more capable of handling the most demanding audio workflows. Valuation Update With 7 Day Price Move • May 26
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to US$24.18, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 15x in the Tech industry in the US. Total returns to shareholders of 280% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at US$26.52 per share. Announcement • May 25
Avid Technology Reportedly Explores Potential Sale Avid Technology, Inc. (NasdaqGS:AVID) is exploring a potential sale, according to people familiar with the matter. Avid Technology is working with The Goldman Sachs Group, Inc. (NYSE:GS) on the sale process and has asked for binding offers from interested parties, the sources said. Avid's shares jumped 18% on the news to $24.35 in May 24, 2023 afternoon trading, giving the company a market value of about $1 billion. The sources cautioned that no deal is certain and asked not to be identified because the matter is confidential. Spokespeople for Avid and Goldman Sachs declined to comment. Buying Opportunity • May 13
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 32%. The fair value is estimated to be US$26.06, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 4.5% over the last 3 years. Earnings per share has grown by 51%. For the next 3 years, revenue is forecast to grow by 7.9% per annum. Earnings is also forecast to grow by 19% per annum over the same time period. Major Estimate Revision • May 11
Consensus EPS estimates fall by 12% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from US$457.8m to US$452.3m. EPS estimate also fell from US$1.13 per share to US$0.997 per share. Net income forecast to grow 14% next year vs 2.7% decline forecast for Tech industry in the US. Consensus price target down from US$37.43 to US$36.14. Share price fell 20% to US$21.23 over the past week. Valuation Update With 7 Day Price Move • May 11
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to US$21.23, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 14x in the Tech industry in the US. Total returns to shareholders of 321% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at US$26.19 per share. Announcement • May 06
Avid Technology, Inc. Provides Earnings Guidance for the Second Quarter of 2023 and Reaffirms Earnings Guidance for the Full Year 2023 Avid Technology, Inc. provided earnings guidance for the second quarter of 2023 and reaffirmed earnings guidance for the full year 2023. For the quarter, the company expects revenue to be $101 million to $111 million.For the year, the company expects revenue to be $447 million to $472 million. Reported Earnings • May 06
First quarter 2023 earnings: EPS and revenues miss analyst expectations First quarter 2023 results: US$0.009 loss per share (down from US$0.24 profit in 1Q 2022). Revenue: US$97.8m (down 2.8% from 1Q 2022). Net loss: US$381.0k (down 104% from profit in 1Q 2022). Revenue missed analyst estimates by 3.2%. Earnings per share (EPS) were also behind analyst expectations. Revenue is forecast to grow 7.8% p.a. on average during the next 3 years, compared to a 6.4% growth forecast for the Tech industry in the US. Over the last 3 years on average, earnings per share has increased by 51% per year whereas the company’s share price has increased by 54% per year. Price Target Changed • Apr 04
Price target increased by 9.0% to US$37.43 Up from US$34.33, the current price target is an average from 7 analysts. New target price is 17% above last closing price of US$32.07. Stock is down 12% over the past year. The company is forecast to post earnings per share of US$1.13 for next year compared to US$1.24 last year. Recent Insider Transactions Derivative • Mar 23
President exercised options to buy US$2.2m worth of stock. On the 15th of March, Jeff Rosica exercised 81.43k options to receive shares at no cost, then sold around 5.33k of them at US$28.67 each and kept the remainder. Since March 2022, Jeff's direct individual holding has decreased from 1.14m shares to 1.12m. Company insiders have collectively bought US$3.1m more than they sold, via options and on-market transactions, in the last 12 months. Reported Earnings • Mar 03
Full year 2022 earnings: EPS exceeds analyst expectations Full year 2022 results: EPS: US$1.24 (up from US$0.92 in FY 2021). Revenue: US$417.4m (up 1.8% from FY 2021). Net income: US$55.2m (up 34% from FY 2021). Profit margin: 13% (up from 10% in FY 2021). The increase in margin was primarily driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 17%. Revenue is forecast to grow 9.2% p.a. on average during the next 2 years, compared to a 6.6% growth forecast for the Tech industry in the US. Over the last 3 years on average, earnings per share has increased by 60% per year whereas the company’s share price has increased by 59% per year. Announcement • Feb 17
Avid Delivers New Era of Openness with Scripting Software Development Kit for Pro Tools Avid® announced a new Pro Tools® Scripting Software Development Kit (SDK) supported by the latest version of Pro Tools that ushers in a new era of openness and flexibility for professional music and audio post production teams. The new free Pro Tools Scripting SDK enables high-end facilities and developers to create apps that automate repetitive tasks and establish new audio workflows. The Pro Tools Scripting SDK is a language-independent API for Windows and Mac versions of Pro Tools that provides access to a range of commands, including open, close and save sessions, export in various formats, perform multiple functions on the timeline, leverage “get” commands to review clips and use “set” commands to perform writeable actions in open sessions. The Pro Tools Scripting SDK is an external component that serves as an access layer between scripting applications and Pro Tools offering more commands and greater forward compatibility. Announcement • Feb 10
Avid Technology, Inc. Announces Avid Media Composer Enhances Interoperability with Pro Tools to Accelerate Workflows for Video and Audio Post Production Teams Avid Technology, Inc. announced the latest version of Media Composer with several new features that significantly speed up the post production process between editorial and audio post teams. These features deliver the first step towards gaining significant production efficiency by bringing video and audio post teams and workflows closer together. Export Media Composer Sequences Directly into Pro Tools: Avid is uniquely positioned to streamline the process of exporting complex sequences with video, audio and metadata down to a single step, combining everything in one export .PTX file that can be opened directly in Pro Tools®. This new capability enables teams to complete projects faster and eliminate costly, time-consuming mistakes, while accelerating content creation and delivery for post production workflows. This is the first step in delivering ground-breaking collaborative workflows between Media Composer and Pro Tools, which was identified as a critical need during customer workshops and will allow Avid to introduce a differentiated set of capabilities not available in the market today. Produce World-Class Audio within Media Composer: Offering full support for Avid’s completely reimagined MBOX Studio™ audio interface, Media Composer provides editors with a powerful solution for recording, punch-ins and multichannel monitoring of sequences in up to 7.1 surround sound. Access to the exceptional preamps and audio converters in MBOX Studio also enables users to capture every sonic nuance of every performance with low-latency monitoring. In addition to these groundbreaking audio features, Avid continues to deliver significant innovation in the Media Composer video editing platform, including: Improved Media Management: Avid has improved Media Composer’s groundbreaking media management capabilities by simplifying the media relink workflow and improving performance around the ability to find paths to previously linked files. Users can locate all content within the relink window to easily re-establish broken paths and avoid losing time searching for a file’s previous locations. Simplified UI for New Users: Media Composer now includes a new project creation setting that creates the project format from the editor’s media with one click. The enhanced UI also generates default bins and offers suggestions to guide a new user through project set-up, enabling new users, students and editing teams alike to easily initiate the editing process. Remote Editing and Proxy Workflow Capabilities: Continuing to enable the industry’s sharp rise in remote collaboration, Avid has enhanced the remote editing experience and seamless integration of the Media Composer | Enterprise editing tool and the Avid NEXIS® | EDGE solution. This integration enables editing teams to better collaborate on projects while working remotely in post production environments. Remote production teams using Media Composer can collaborate more efficiently by using Avid NEXIS | EDGE to build innovative proxy workflows. This enables editors to seamlessly flip between high-resolution and proxy content from a single click and with no relinking required, saving production teams time and reducing complexity. Content Review Capabilities for Editors: Media Composer’s new Multiplex IO feature enhances the “over the shoulder” experience by giving users the ability to have up to 10 active I/O plug-ins simultaneously. This allows output from Media Composer to multiple streaming platforms and devices through SRT (Secure Reliable Transport), NDI and any connected and supported I/O hardware, enabling local monitoring while streaming to remote viewers. This integration enables editing teams to better collaborate on projects while working remotely in post production environments. Announcement • Jan 05
Avid Releases Updates to Its Industry-Leading MediaCentral(R) Workflow Platform Avid released updates to its industry-leading MediaCentral(R) workflow platform, including the new MediaCentral | Acquire(TM) IP-based ingest scheduler, along with remote collaboration and improved hybrid working support. These innovative capabilities empower media companies to accelerate production on premises and in the cloud. The introduction of MediaCentral | Acquire adds ingest management to MediaCentral | Cloud UX(TM), advancing Avid's news production solution by enabling content production teams to collaborate from anywhere. To keep up with the growing demand for content, broadcasters need to automate their workflows more efficiently. Avid's new MediaCentral | Acquire ingest scheduler app in MediaCentral | Cloud UX automates ingest scheduling for SDI and IP sources by controlling FastServe | Ingest(TM), FastServe | I/O(TM) and MediaCentral | Stream(TM). MediaCentral | Acquire also supports Edit While Capture workflows for faster turnaround, while enabling ingest management from anywhere using only a web browser. This release also builds on MediaCentral's extensive media production capabilities with new features like the ability to synchronize content across different sites with MediaCentral | Sync and a completely redesigned MediaCentral | Collaborate mobile app. These give production teams even greater flexibility in how they work, from story creation all the way to delivery, whether that is a rundown-based on-air show, or content for online platforms and social media. Recent Insider Transactions • Dec 18
Insider recently sold US$122k worth of stock On the 12th of December, Timothy Claman sold around 4k shares on-market at roughly US$27.30 per share. This transaction amounted to 4.8% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger sale from another insider worth US$836k. Insiders have been net sellers, collectively disposing of US$2.6m more than they bought in the last 12 months. Buying Opportunity • Dec 07
Now 21% undervalued Over the last 90 days, the stock is up 7.7%. The fair value is estimated to be US$34.18, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Meanwhile, the company has become profitable. Revenue is forecast to grow by 17% in 2 years. Earnings is forecast to grow by 49% in the next 2 years. Recent Insider Transactions • Nov 25
Chief Revenue Officer & Senior VP recently sold US$836k worth of stock On the 22nd of November, Tom J. Cordiner sold around 30k shares on-market at roughly US$27.90 per share. This transaction amounted to 13% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of US$2.5m more than they bought in the last 12 months. Price Target Changed • Nov 16
Price target decreased to US$34.33 Down from US$37.00, the current price target is an average from 6 analysts. New target price is 24% above last closing price of US$27.60. Stock is down 19% over the past year. The company is forecast to post earnings per share of US$1.05 for next year compared to US$0.92 last year. Board Change • Nov 16
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 6 experienced directors. 3 highly experienced directors. Independent Director Christian Asmar was the last director to join the board, commencing their role in 2019. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 09
Third quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2022 results: EPS: US$0.27 (down from US$0.32 in 3Q 2021). Revenue: US$103.0m (up 1.3% from 3Q 2021). Net income: US$12.0m (down 19% from 3Q 2021). Profit margin: 12% (down from 14% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 2.3%. Earnings per share (EPS) exceeded analyst estimates by 23%. Revenue is forecast to grow 8.8% p.a. on average during the next 3 years, compared to a 4.7% growth forecast for the Tech industry in the US. Over the last 3 years on average, earnings per share has increased by 70% per year but the company’s share price has only increased by 48% per year, which means it is significantly lagging earnings growth. Reported Earnings • Aug 03
Second quarter 2022 earnings: EPS and revenues exceed analyst expectations Second quarter 2022 results: EPS: US$0.17 (up from US$0.15 in 2Q 2021). Revenue: US$97.7m (up 3.0% from 2Q 2021). Net income: US$7.37m (up 5.2% from 2Q 2021). Profit margin: 7.5% (up from 7.4% in 2Q 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.5%. Earnings per share (EPS) also surpassed analyst estimates by 9.2%. Over the next year, revenue is forecast to grow 8.6%, compared to a 5.0% growth forecast for the industry in the US. Over the last 3 years on average, earnings per share has increased by 83% per year but the company’s share price has only increased by 63% per year, which means it is significantly lagging earnings growth. 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. Price Target Changed • Jul 21
Price target decreased to US$38.83 Down from US$42.00, the current price target is an average from 6 analysts. New target price is 34% above last closing price of US$29.02. Stock is down 21% over the past year. The company is forecast to post earnings per share of US$1.05 for next year compared to US$0.92 last year. Recent Insider Transactions • Jun 17
Chief Revenue Officer & Senior VP recently sold US$254k worth of stock On the 15th of June, Tom J. Cordiner sold around 10k shares on-market at roughly US$25.63 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of US$2.4m more than they bought in the last 12 months. Board Change • May 25
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 5 experienced directors. 3 highly experienced directors. Independent Director Christian Asmar was the last director to join the board, commencing their role in 2019. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • May 11
Investor sentiment deteriorated over the past week After last week's 33% share price decline to US$21.45, the stock trades at a forward P/E ratio of 19x. Average forward P/E is 14x in the Tech industry in the US. Total returns to shareholders of 175% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at US$34.53 per share. Reported Earnings • May 05
First quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2022 results: EPS: US$0.24 (up from US$0.099 in 1Q 2021). Revenue: US$100.6m (up 6.7% from 1Q 2021). Net income: US$10.6m (up 141% from 1Q 2021). Profit margin: 11% (up from 4.7% in 1Q 2021). Revenue missed analyst estimates by 2.3%. Earnings per share (EPS) exceeded analyst estimates by 21%. Over the next year, revenue is forecast to grow 7.8%, compared to a 5.2% growth forecast for the industry in the US. Over the last 3 years on average, earnings per share has increased by 92% per year but the company’s share price has only increased by 45% per year, which means it is significantly lagging earnings growth. Buying Opportunity • May 05
Now 32% undervalued after recent price drop Over the last 90 days, the stock is down 13%. The fair value is estimated to be US$37.65, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Meanwhile, the company has become profitable. For the next 3 years, revenue is forecast to grow by 7.3% per annum. Earnings is also forecast to grow by 23% per annum over the same time period.