Burlington, MA (May 8, 2019)—Avid announced its first quarter 2019 financial results today, reporting revenue of $103.3 million and a second consecutive quarter of 5 percent year-over-year growth.
“We are pleased that the momentum Avid generated at the end of last year has continued throughout the first quarter of this year, underscoring our continued success in executing our strategy,” said Jeff Rosica, CEO and president of Avid.
“We are focused on delivering meaningful product innovations to the market, including several new products in Q2, that we expect will support our growth in the second half of 2019 and beyond. We expect this renewed growth, combined with greater discipline in our operations, will drive increased profitability and deliver greater shareholder value.”
“As a result of the improvement in our financial performance, we have secured $100 million in additional bank debt at a reduced interest rate and more favorable terms to support our business strategy. Since the proceeds will be used to repurchase our outstanding convertible notes, there will be an immaterial change in the total debt for the company once the transactions are completed,” added Ken Gayron, executive vice president and chief financial officer of Avid.
During an earnings call on May 6, Rosica noted the importance of several multi-year agreements that the company signed with large media enterprises in Q1, including a deal with HBO that virtualizes the Media Composer editing and Nexis storage resources available to creatives in its Manhattan facility. Avid also signed a multi-year enterprise agreement with CBS News to upgrade its Avid-based production infrastructure across multiple sites in the US and Europe.
Software revenue from subscriptions increased 10 percent year-over-year, with approximately 137,000 cloud-enabled software subscriptions at the end of Q1 2019, according to the report. Recurring revenue was 57 percent of the company’s revenue in the 12 months ending March 2019, up from 50 percent in the 12 months ending March 2018. E-commerce revenues grew 33 percent, year-over-year.
Rosica also pointed to a new product introduction that “took the industry by surprise quite pleasantly, I would say,” referring to the all-new Media Composer 2019 platform. Avid also unveiled Nexis Cloudspaces, a SaaS storage offering that enables production teams to free up local storage.
He also revealed that Avid is preparing new product announcements for pro audio and music customers that will be unveiled at the summer NAMM Show in Nashville.
Avid Technology • www.avid.com