MeridianLink Inc. (NYSE: MLNK) Stock Soars On Strong Q4 Earnings

This week the MeridianLink Inc (NYSE: MLNK) stock could be one to watch in light of its strong performance in the fourth fiscal quarter and the attendant 19% gains in its stock this past Friday. The company announced strong performances in the fourth quarter and the full fiscal year, both of which ended on December 31, 2024.

The Key Highlights

The advanced software supplier for consumer reporting agencies and financial institutions announced fourth quarter revenues of $79.4 million, which reflected year on year boost of 7%. In the full fiscal year, the revenues stood at $316.3 million, which reflected a rise of 4% from the previous fiscal year. Additionally, the company also announced operating income of $4.6 million for the fiscal year, which worked out to 1% of revenues. However, on a non-GAAP basis the operating income had been $67.7 million.

Further Information

In addition to the strong performance, the board of directors of MeridianLink also approved a stock repurchase initiative. As a consequence, the company would be working on the acquisition of $129.5 million worth of its common stock. It now remains to be seen if the MeridianLink stock maintains its momentum this week or not.

Management Quote

“MeridianLink® finished the year strongly, with record bookings despite a challenging macro environment, which is continued evidence of customers turning to MeridianLink® One to implement digital lending strategies that win,” said Nicolaas Vlok, chief executive officer of MeridianLink. “Our dedication to customer success paired with our focus on execution has solidified our position as the leading digital lending platform for mid-market financial institutions. Looking forward, we are deploying capital into the business to drive demand and accelerate revenue growth. With our solid foundation and incremental investment, we believe we are well-positioned to scale the business in 2025 and beyond.”

Fundamentals

P/E Ratio-55.02
PEG Ratio36.7
Price to Book3.82
Price to Cash Flow
Price to Free Cash Flow
Total Sales (TTM)316.30 M
Revenue per Share (TTM)4.18
Shares Outstanding75.525 M
Share Float (%)28.40 M (37.61%)
% Held by Institutions38.44

Ian Leigh

Ian Leigh is a specialist in analyzing stocks, SEC and OTC filings, and financials of public and privately-held companies. He has played a significant role in M&A activity, consulting with publicly-held firms on acquisitions and divestitures. He also consults on valuations and branding. He lectures at major universities and teaches at specialty financial schools.