AVID Launches Pro Tools Intro Artist for New Music Makers
Avid Technology AVID recently announced the debut of Pro Tools Intro, specifically designed for aspiring creatives who are willing to create music, podcasts, songs, loops and beats in any genre.
Pro Tools Intro is available as a download option for free and will introduce Pro Tools Digital Audio Workstation to new creators. Also, this platform will help aspiring musicians and audio artists connect with other notable artists and professionals who use the Pro Tools system.
Avid’s recent launch is in accordance with its strategic plan to introduce features that attract new aspiring artists, specifically millennials and Gen Z. In September, Avid announced that its Avid Learning Academy (ALA) program has transitioned to Pro Tools Artist, which will give every student aspiring to build a career in media and enrolled in the program free access to the new Pro Tools Artist (PTA) software.
Avid introduced the PTA software in late April 2022 as a new lower-priced tier directed at the music creation community. Music creators can use the software to make beats, write songs, record vocals and instruments and mix studio-quality music.
The initial result from the Pro Tools Artist offering reflected solid demand for the product, which helped to increase Avid’s subscriber base and impacted subscription revenue growth positively in the second quarter of 2022. Avid is looking to continue boosting subscription revenue growth in the coming quarters with the launch of its latest Pro Tools Intro.
Avid Technology, Inc. Price and Consensus
Avid Technology, Inc. price-consensus-chart | Avid Technology, Inc. Quote
AVID Driving Subscription Revenues to Boost Shares
AVID’s shares have slumped 25% in the year-to-date period compared with the Zacks Computer - Software industry, which has declined 33% in the same period.
The recent fall in Avid’s share price reflects negative sentiments among investors as the company realized a 10.6% decline in integrated solutions revenues in second-quarter 2022. Due to global supply chain constraints, the company continued to face challenges in delivering certain parts of its integrated solutions portfolio to customers. In the first half of the year, Avid’s unfulfilled contractually committed orders were more than 20 million. This impacted revenue growth negatively.
The company is also facing competition across all of its product offerings from companies like ChryonHego corporation, Dell Technologies, Adobe, Yamaha Corporation and big tech giants like Apple AAPL.
Apple has cut into the video editing space as it provides less expensive digital video editing software. Apple’s video editing software uses machine learning to help provide video editing features and is currently available with its latest iPhone offerings helping the company to gain market share in the video editing software market.
Also, rising inflation has placed huge pressure on media technology budgets, which is expected to affect subscription revenue growth of Avid.
However, amidst such market volatility, Avid’s recent launch of Pro Tools Intro will attract budding artists to the platform for free. However, the probability of turning these budding artists into potential new subscribers is high, as Avid created the Pro Tools Artist as a low-priced tier that aspiring artists can afford, which will contribute to its subscription revenue growth.
However, to deal with the rising competition, Avid has forged strategic partnerships with Amazon AMZN and Microsoft MSFT.
Avid has partnered with Amazon studios to help in Amazon’s content production in the cloud with software such as Media Composer, Nexis storage and media control platform.
Avid is also benefiting from its multi-year agreement with Microsoft, which includes technology collaboration, co-development of cloud bases solutions and the launch of several software-as-a-service offerings. This partnership is helping Avid to create new technologies, which are attracting new users to many of its subscription-based product offerings.
In the second quarter, Avid realized net adds of 18,500 subscriptions and delivered year-over-year growth of 22%. As a result, the company, which currently carries a Zacks Rank #3 (Hold), reported subscription revenue growth of 58.7% in the quarter. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Avid also expects that the effects of the supply chain constraints will start resolving from the second half of 2022, and it will be able to cover much of its backlog.
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