MeridianLink Inc (MLNK) Reports 7% Year-Over-Year Revenue Growth in Q3 2023
MeridianLink Inc (NYSE:MLNK) reported a 7% year-over-year increase in revenue, reaching $76.5 million in Q3 2023.
Lending software solutions revenue grew by 12% year-over-year, contributing $58.9 million to the total revenue.
The company reported an operating income of $5.6 million, representing 7% of the total revenue.
MeridianLink Inc (NYSE:MLNK) reported a net loss of $(2.1) million, or (3)% of revenue.
MeridianLink Inc (NYSE:MLNK), a leading provider of modern software platforms for financial institutions and consumer reporting agencies, announced its financial results for the third quarter ended September 30, 2023, on November 1, 2023. The company reported a 7% year-over-year increase in revenue, driven by a 12% growth in lending software solutions revenue.
Financial Performance
MeridianLink Inc (NYSE:MLNK) reported a total revenue of $76.5 million in Q3 2023, marking a 7% increase from the same period last year. The growth was primarily driven by the lending software solutions segment, which contributed $58.9 million to the total revenue, reflecting a 12% year-over-year growth.
The company reported an operating income of $5.6 million, or 7% of the total revenue. However, it reported a net loss of $(2.1) million, or (3)% of revenue. The company also reported adjusted EBITDA of $29.8 million, or 39% of revenue.
Business and Operating Highlights
MeridianLink Inc (NYSE:MLNK) reported strong demand for its MeridianLink One platform, as demonstrated by an impressive roster of new logo and cross-sell wins. The company also launched its new point-of-sale solution, MeridianLink Access, for MeridianLink Consumer and MeridianLink Mortgage, to provide enhanced configurability and a more personalized consumer experience.
In addition, the company continued to innovate in the data and analytics space by launching MeridianLink Data Connect, a solution that brings transactional data in-house for the customer to gain more insightful reporting.
Business Outlook
For the fourth quarter of fiscal 2023, the company expects revenue to be in the range of $73.0 million to $77.0 million and adjusted EBITDA to be in the range of $22.0 million to $26.0 million. For the full year 2023, the company expects revenue to be in the range of $302.0 million to $306.0 million and adjusted EBITDA to be in the range of $104.0 million to $108.0 million.
Conclusion
The Q3 2023 results reflect MeridianLink Inc (NYSE:MLNK)'s consistent performance driven by its strategic key drivers. The company's continuous product innovation and value-added partner integrations have contributed to its strong demand and revenue growth. Despite the reported net loss, the company remains optimistic about its future performance as it continues to invest in enhancing the consumer experience through improving their digital capabilities.
Explore the complete 8-K earnings release (here) from MeridianLink Inc for further details.
This article first appeared on GuruFocus.
