Meridianlink Inc (NYSE:MLNK), a cloud-based technology company that enables banks, credit unions, mortgage lenders, specialty lending providers, and consumer reporting agencies (CRAs) to streamline loan decision making and origination, and credit reporting and background screening workflows, stock fell 4.51% (As on Sep 8, 11:26:57 AM UTC-4, Source: Google Finance) after the company in the second quarter of FY 21 has reported the revenue of $68.5 million, which represents an increase of 38% year-over-year. The company has posted operating profit of $19.2 million, or 28% of revenue, Adjusted EBITDA of $33.4 million, or 49% of revenue and generated cash flow from operations of $21.2 million, and Free Cash Flow of $19.5 million
Meanwhile, the company has completed its initial public offering on July 28, 2021, for net proceeds of $241.5 million, after deducting underwriters’ discounts. A portion of the net proceeds were used to repay $75.0 million of borrowings outstanding under the first lien credit agreement and all borrowings outstanding under the second lien credit agreement of $125 million.
For the third quarter of fiscal 2021, the revenue is expected to be in the range of $62.9 million to $63.5 million and Adjusted EBITDA is expected to be in the range of $25.0 million to $25.6 million
For full year 2021, the revenue is expected to be in the range of $256.7 million to $257.9 million and Adjusted EBITDA is expected to be in the range of $112.3 million to $113.5 million.
Additionally, the company has recently signed of a definitive agreement to acquire TazWorks, which is a premier technology platform for consumer reporting agencies (CRAs) and the creator of TazWorks Software and TazCloud, a powerful background screening platform. TazWorks has served as a leader in the industry for over 20 years. Its powerful screening platform and suite of screening applications, integrations, and advanced business intelligence tools help companies make better decisions at modern business speed. By leveraging the power of its innovative API infrastructure, TazWorks’ cloud-based platform enables companies to develop custom applications and integrate with the industry’s top third-party partners. MeridianLink is the creator and developer of Mortgage Credit Link (MCL). This unique, browser-based, and API solution provides a stable and powerful fulfillment hub for consumer data verification and analytics. MCL also provides a complete, easy-to-use front-end for CRAs to automate and securely manage order fulfillment from any device, anywhere. The acquisition of TazWorks is anticipated to be finalized shortly.