©2024 MERIDIANLINK, INC. ALL RIGHTS RESERVED. Third Quarter 2024 Results November 2024 Exhibit 99.2
©2024 MERIDIANLINK, INC. ALL RIGHTS RESERVED. Forward-Looking Statements and Disclaimers 2 Information in this presentation and the accompanying oral presentation contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. All statements other than statements of historical fact included in this presentation and the accompanying oral presentation, including statements regarding, and guidance with respect to, our strategy, future operations, financial position, projected costs, our future financial and operational performance, prospects, market size and growth opportunities, future economic conditions, competitive position, strategic initiatives, development or delivery of new or enhanced solutions, technological capabilities, plans, and objectives of management are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “may,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. These forward-looking statements reflect our predictions, expectations, or forecasts. Actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control including, without limitation, risks related to economic and market conditions, including interest rate fluctuations; our ability to retain and attract customers; our ability to expand and evolve our offerings, features, and functionalities or respond to rapid technological changes; our ability to identify and integrate strategic initiatives; our leadership transition and plans; our realignment plan, including expected associated timing, benefits, and costs; our stock repurchase programs, including the execution and amount of repurchases; our ability to maintain effective internal control over financial reporting and disclosure controls and procedures; the status of litigation matters, including expected or contemplated settlements, associated timing, and estimated fees and expenses; our ability to compete in a highly-fragmented and competitive landscape; market demand for our products and solutions; our ability to effectively implement, integrate, and service our customers; our ability to retain and attract product partners; the benefit to us and our customers of integrations with our product partners; our commercial disputes, including potential losses related thereto; our future financial performance, including, but not limited to, trends in revenue, costs of revenue, gross profit or gross margin, operating expenses, and number of customers; and our high levels of indebtedness; as well as those set forth in Item 1A. Risk Factors, or elsewhere, in our Annual Report on Form 10-K for the most recently ended fiscal year, any updates in our Quarterly Reports on Form 10-Q filed for periods subsequent to such Form 10-K, and our other SEC filings. These forward-looking statements are based on reasonable assumptions as of the date hereof. The plans, intentions, or expectations disclosed in our forward-looking statements may not be achieved, and you should not rely upon forward-looking statements as predictions of future events. We undertake no obligation, other than as required by applicable law, to update any forward-looking statements, whether as a result of new information, future events, or otherwise. Information in this presentation and the accompanying oral presentation, including any statements regarding MeridianLink’s customer data and other metrics, is based on data and analyses from various sources as of December 31, 2023, unless otherwise indicated. This presentation contains statistical data, estimates, and forecasts that are based on independent industry publications or other publicly available information, as well as other information based on our internal sources. This information involves many assumptions and limitations, and you are cautioned not to give undue weight to these estimates. We have not independently verified the accuracy or completeness of the data contained in these industry publications and other publicly available information. Accordingly, we make no representations as to the accuracy or completeness of that data nor do we undertake to update such data after the date of this presentation. MeridianLink uses its investor relations website (https://ir.meridianlink.com), press releases, SEC filings, public conference calls and webcasts, blog posts on its website, as well as its social media channels, such as its LinkedIn page (www.linkedin.com/company/meridianlink), X (formerly Twitter) feed (@meridianlink), and Facebook page (www.facebook.com/MeridianLink/), as a means of disclosing material information and for complying with its disclosure obligations under Regulation FD. Information contained on or accessible through the websites is not incorporated by reference into this presentation, and links for these websites are inactive textual references only. Copyright Notice: All copyrightable text and graphics, the selection, arrangement, and presentation of all materials (including information in the public domain) are ©2024 MeridianLink, Inc. All rights reserved. This presentation includes trademarks, which are protected under applicable intellectual property laws and are the property of MeridianLink, Inc. or its subsidiaries. This presentation may also contain trademarks, service marks, copyrights, and trade names of other companies, which are the property of their respective owners and are used for reference purposes only. Such use should not be construed as an endorsement of the platform and products of MeridianLink. Solely for convenience, trademarks and trade names may appear without the ® or symbols, but such references are not intended to indicate that, with respect to our intellectual property, we will not assert, to the fullest extent under applicable law, our rights or the right of the applicable licensor to these trademarks and trade names.
©2024 MERIDIANLINK, INC. ALL RIGHTS RESERVED. 3 Q3’24 in Review • Delivered solid Q3 results driven by ACV release • Adj. EBITDA margin of 42% exceeded expectations as we proactively managed spend in an uncertain environment • Strengthened management team with promotion of Larry Katz to President and onboarding of Elias Olmeta to CFO • Continued execution of “land and expand” strategy as customers choose MeridianLink® One for their digital transformation • Multiple high-value cross-sell deals across consumer and mortgage • Steady roster of new logos selected multiple modules on our configurable MeridianLink One platform • Returned $31.3M to stockholders via stock repurchases
©2024 MERIDIANLINK, INC. ALL RIGHTS RESERVED. 4 Q3 2024 Financial Highlights Solid third quarter results against continued challenging macro backdrop Adjusted EBITDA, Adjusted Gross Profit, and Free Cash Flow are non-GAAP measures. For a definition and reconciliation of non-GAAP measures, please refer to the Appendix. YoY growth represents year-over-year growth from Q3’23 to Q3’24. (1) Adj. gross profit is calculated by subtracting non-GAAP cost of revenue from net revenues. Adj. gross margin represents adj. gross profit as a percentage of revenues. (2) Adj. EBITDA margin represents adj. EBITDA as a percentage of revenues. (3) Free cash flow margin represents free cash flow as a percentage of revenues. $80.4M Total Revenue 5% YoY growth 23% Free Cash Flow Margin(3) (129)bps YoY growth 73% Adj. Gross Margin(1) 145bps YoY growth 42% Adj. EBITDA Margin(2) 309bps YoY growth GROWTH & SCALE ATTRACTIVE MARGIN AND CASH FLOW PROFILE
©2024 MERIDIANLINK, INC. ALL RIGHTS RESERVED. 5 Q3 2024 Business & Operating Highlights NEW LOGO WINSCROSS-SELL MOMENTUM PLATFORM ROI E X I S T I N G MeridianLink One Credit Union Customer with $750M A U M Debt Optimization solution The implementation of MeridianLink® Mortgage enabled centralization of loan operations on MeridianLink One and reduced its loan processing time by up to six days 6 DAYS $370M AUM new logo credit union customer chose five modules in the initial sale to embrace its digital transformation with one platform Personal Credit Card VehicleAccount Opening Indirect Lending This customer consolidated five disparate mortgage systems onto one solution. Across mortgage and consumer, this customer now has six modules in total on MeridianLink One 6 MODULES
©2024 MERIDIANLINK, INC. ALL RIGHTS RESERVED. % Mortgage $8 $8 $10 $10 Q3'23A Q3'24A 56%57% $18 $17 $52 $56 $7 $7 Q3'23A Q3'24A 10%12% $59 $63 $65 $67 $9 $10 $3 $3 Q3'23A Q3'24A 84%84% $76 $80 6 Q3 2024 Revenue Drivers Revenue by Source ($ millions) % Subscription Professional Services OtherSubscription Fees Lending Software Solutions Data Verification Software Solutions % Mortgage MortgageNon-Mortgage MortgageNon-Mortgage Revenue by Solution Type Note: Financial data as of the three months ended September 30th, 2023 or September 30th, 2024 as noted. Subtotals may not add to totals due to rounding.
©2024 MERIDIANLINK, INC. ALL RIGHTS RESERVED. $52 $55 $58 $56 $59 $59 $61 $62 $63 $49 $49 $51 $48 $52 $52 $54 $55 $56 Q3 2022A Q4 2022A Q1 2023A Q2 2023A Q3 2023A Q4 2023A Q1 2024A Q2 2024A Q3 2024A 7 Lending Solutions Growing High Single-Digits at Scale Lending Software Solutions Revenue Non-Mortgage Lending Software Solutions Revenue % YoY Non-Mortgage Lending Software Solutions Revenue Growth¹ ($ millions) (1) YoY Growth is calculated as the quarter financial performance divided by financial performance of the same quarter in the prior year. % YoY Lending Software Solutions Revenue Growth¹ 21% 23% 13% 1% 6% 5% 6% 14% 17% 26% 18% 8% 12% 8% 5% 11% 9% 7%
©2024 MERIDIANLINK, INC. ALL RIGHTS RESERVED. $30 $34 39% 42% Q3'23A Q3'24A $55 $59 72% 73% Q3'23A Q3'24A 8 Attractive Margin Profile Driven by Cost Discipline Adj. Gross Profit ($ millions) Adj. EBITDA ($ millions) Adj. EBITDA Adj. EBITDA Margin Note: Adj. gross profit and adj. EBITDA are non-GAAP measures. Adj. gross profit is calculated by subtracting non-GAAP cost of revenue from net revenues. Adj. gross profit margin represents adj. gross profit as a percentage of revenues. Adj. EBITDA margin represents adj. EBITDA as a percentage of revenues. For a definition and reconciliation of non-GAAP cost of revenue and adj. EBITDA, please refer to the Appendix. Adj. Gross Profit Adj. Gross Profit Margin $111 $113 39% 37% FY2022A FY2023A $202 $217 70% 72% FY2022A FY2023A
©2024 MERIDIANLINK, INC. ALL RIGHTS RESERVED. $9 $10 12% 13% Q3'23A Q3'24A $10 $7 12% 9% Q3'23A Q3'24A $8 $9 11% 11% Q3'23A Q3'24A $35 $36 12% 12% FY2022A FY2023A 9 Investing in Future Growth & Transformation Non-GAAP Research & DevelopmentNon-GAAP Sales & Marketing ($ millions)($ millions) S&M % of Revenue R&D % of Revenue Note: For a definition and reconciliation of non-GAAP operating expenses, please refer to the Appendix. Non-GAAP General & Administrative ($ millions) G&A % of Revenue $21 $32 7% 11% FY2022A FY2023A $36 $40 13% 13% FY2022A FY2023A
©2024 MERIDIANLINK, INC. ALL RIGHTS RESERVED. $19 $19 25% 23% Q3'23A Q3'24A $14 $18 18% 22% Q3'23A Q3'24A Note: Non-GAAP operating income and Free Cash Flow are non-GAAP measures. Non-GAAP operating margin represents non-GAAP operating income as a percentage of revenues. Free Cash Flow margin represents Free Cash Flow as a percentage of revenues. For a definition and reconciliation of non-GAAP operating income and Free Cash Flow, please refer to the Appendix. 10 Strong Operating Income & Free Cash Flow Conversion Non-GAAP Operating Income Free Cash Flow ($ millions) Non-GAAP Operating Income Non-GAAP Operating Margin Free Cash Flow Free Cash Flow Margin ($ millions) $56 $51 19% 17% FY2022A FY2023A $65 $58 23% 19% FY2022A FY2023A
©2024 MERIDIANLINK, INC. ALL RIGHTS RESERVED. 11 Guidance Update Guidance Update Three Months Ended December 31, 2024 Year Ended December 31, 2024 ($ in thousands) Q4 2023A Low (Estimated) High (Estimated) 2023A Low (Estimated) High (Estimated) Revenue $74,579 $76,000 $80,000 $303,617 $313,000 $317,000 % Growth 6% 2% 7% 5% 3% 4% Adj. EBITDA(1) 31,102 29,500 32,500 112,990 127,000 130,000 % Growth 34% (5)% 4% 2% 12% 15% % Margin(1) 42% 39% 41% 37% 41% 41% Note: This financial information has been prepared by and is the responsibility of our management. Our independent registered public accounting firm has not audited, reviewed or performed any procedures with respect to this preliminary financial data or the accounting treatment thereof and does not express an opinion or any other form of assurance with respect thereto. (1) Adj. EBITDA is a non-GAAP measure. Adj. EBITDA margin represents Adj. EBITDA as a percentage of revenues. No reconciliation is provided with respect to certain forward-looking non-GAAP financial measures as the GAAP measures are not accessible on a forward-looking basis. We cannot reliably predict all necessary components or their impact to reconcile such financial measures without unreasonable effort.
©2024 MERIDIANLINK, INC. ALL RIGHTS RESERVED. 12 Appendix
©2024 MERIDIANLINK, INC. ALL RIGHTS RESERVED. 13 Q3 2024 Performance ($ in thousands) Q3 2023A Q3 2024A Delta Consolidated Statements of Operations Data Revenue $76,488 $80,369 $3,881 Gross profit 49,476 52,719 3,243 % Gross margin 64.7% 65.6% 0.9% Net (loss) (2,069) (7,051) (4,982) % Net (loss) margin (2.7)% (8.8)% (6.1)% Non-GAAP Financial Data Adj. EBITDA(1) 29,835 33,829 3,994 % Adj. EBITDA margin(1) 39.0% 42.1% 3.1% Free cash flow(2) 18,817 18,735 (82) % Free cash flow margin(2) 24.6% 23.3% (1.3)% Note: This financial information has been prepared by and is the responsibility of our management. Our independent registered public accounting firm has not audited, reviewed or performed any procedures with respect to this preliminary financial data or the accounting treatment thereof and does not express an opinion or any other form of assurance with respect thereto. (1) Adj. EBITDA is a non-GAAP measure. Adj. EBITDA margin represents Adj. EBITDA as a percentage of revenues. For a definition and reconciliation of Adj. EBITDA, please refer to the Appendix. (2) Free cash flow is a non-GAAP measure. Free cash flow margin represents free cash flow as a percentage of revenues. For a definition and reconciliation of free cash flow, please refer to the Appendix.
©2024 MERIDIANLINK, INC. ALL RIGHTS RESERVED.©2024 MERIDIA LINK, INC. ALL IGHTS RESERVED. Non-GAAP Financial Measures 14 To supplement the financial measures presented in accordance with United States generally accepted accounting principles, or GAAP, we provide certain non-GAAP financial measures, such as adjusted EBITDA and adjusted EBITDA margin; non-GAAP operating income (loss); non-GAAP net income (loss); non-GAAP cost of revenue; non-GAAP sales and marketing expenses; non-GAAP research and development expenses; non-GAAP general and administrative expenses; and Free Cash Flow. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Rather, we believe that these non-GAAP financial measures, when viewed in addition to and not in lieu of our reported GAAP financial results, provide investors with additional meaningful information to assess our financial performance and trends, enable comparison of financial results between periods, and allow for greater transparency with respect to key metrics utilized internally in analyzing and operating our business. The following definitions are provided: • Non-GAAP operating income (loss): GAAP operating income (loss), excluding the impact of share-based compensation, employer payroll taxes on employee stock transactions, expenses associated with our secondary offering, restructuring related costs, expenses related to debt modification, charges in connection with litigation unrelated to our core business, and expenses for services performed by a third party consultant relating to efforts to remediate our material weakness. • Adjusted EBITDA: net income (loss) before interest expense, taxes, depreciation and amortization, share-based compensation expense, employer payroll taxes on employee stock transactions, expenses associated with our secondary offering, restructuring related costs, expenses related to debt modification, charges in connection with litigation unrelated to our core business, expenses for services performed by a third party consultant relating to efforts to remediate our material weakness, and deferred revenue reductions from purchase accounting for acquisitions prior to the adoption of ASU 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers,” which we early adopted on January 1, 2022 on a prospective basis. Deferred revenue from acquisitions prior to the adoption of ASU 2021-08 was recognized on a straight line basis through December 31, 2023.Non-GAAP cost of revenue: GAAP cost of revenue, excluding the impact of share-based compensation, employer payroll taxes on employee stock transactions, and amortization of developed technology. • Non-GAAP operating expenses: GAAP operating expenses, excluding the impact of share-based compensation, employer payroll taxes on employee stock transactions, expenses associated with our secondary offering, expenses related to debt modification, charges in connection with litigation unrelated to our core business, expenses for services performed by a third party consultant relating to efforts to remediate our material weakness, and depreciation and amortization, as applicable. • Free cash flow: GAAP cash flow from operating activities less GAAP purchases of property and equipment (Capital Expenditures) and capitalized costs related to developed technology (Capitalized Software). Reconciliations to comparable GAAP financial measures are available in the accompanying schedules, which are included in the Appendix of this presentation. No reconciliation is provided with respect to certain forward-looking non-GAAP financial measures as the GAAP measures are not accessible on a forward-looking basis. We cannot reliably predict all necessary components or their impact to reconcile such financial measures without unreasonable effort. The events necessitating a non-GAAP adjustment are inherently unpredictable and may have a significant impact on our future GAAP financial results.
©2024 MERIDIANLINK, INC. ALL RIGHTS RESERVED. 15 Financial Reconciliations ($ in thousands) 2022A 2023A Q3’23A Q3’24A Reconciliation of Net Income (Loss) to Adjusted EBITDA(1) Net income (loss) $1,294 ($42,539) ($2,069) ($7,051) (+) Interest expense, net 24,227 38,158 9,780 10,165 (+/-) Tax expense (benefit)3 4,130 23,943 (800) 816 (+) Depreciation & amortization 53,982 57,829 14,433 14,593 (+) Share-based compensation expense 22,761 31,213 8,322 14,254 (+) Employer payroll taxes on employee stock transactions 350 687 150 301 (+) Expenses associated with public offering – – – 416 (+) Litigation-related charges4 – – – (172) (+) Restructuring related costs5 – 3,621 – – (+) Material weakness remediation6 – – – 507 (+) Sponsor and third-party acquisition related costs 4,228 – – – (+) Deferred revenue reduction from purchase accounting for acquisitions prior to 2022 227 78 19 – Adjusted EBITDA(1) $111,199 $112,990 $29,835 $33,829 Net income (loss) margin 0% (14)% (3)% (9)% Adjusted EBITDA margin(2) 39% 37% 39% 42% Non-GAAP Adjusted EBITDA(1) (1) We define Adj. EBITDA as net income (loss) before interest expense, taxes, depreciation and amortization, share-based compensation expense, employer payroll taxes on employee stock transactions, expenses associated with our secondary offering, restructuring related costs, expenses related to debt modification, charges in connection with litigation unrelated to our core business, and deferred revenue reductions from purchase accounting. (2) Adj. EBITDA margin represents Adj. EBITDA as a percentage of revenues. (3) Taxes reflects a one-time non-cash tax expense of $29.4 million recorded during the quarter ended December 31, 2023, for the recognition of a partial valuation allowance on certain deferred tax assets. (4) Litigation-related charges pertains to litigation settlements and related legal fees. During the nine months ended September 30, 2024, we incurred $1.5 million related to estimated settlements of class action lawsuits and $0.4 million related to third- party legal fees directly related to the settlements. During the three months ended September 30, 2024, we recognized $0.2 million gain on a favorable litigation settlement. The gain was recognized in interest and other income on our condensed consolidated statements of operations. (5) Restructuring related costs for the year ended December 31, 2023 is inclusive of net acceleration (forfeitures) of share-based compensation associated with restructuring in the amount of $(663) thousand. (6) Expenses for services performed by a third party consultant related to efforts to remediate our previously identified material weakness.
©2024 MERIDIANLINK, INC. ALL RIGHTS RESERVED. 16 Financial Reconciliations (Cont’d) ($ in thousands) 2022A 2023A Q3’23A Q3’24A Revenues, net $288,046 $303,617 $76,488 $80,369 Cost of revenue 106,331 108,491 27,012 27,650 (-) Share-based compensation expense 4,630 3,848 910 1,252 (-) Employer payroll taxes on employee stock transactions 127 157 26 55 (-) Amortization of developed technology 15,553 18,129 4,524 4,860 Non-GAAP cost of revenue 86,021 86,357 21,552 21,483 Adjusted gross profit $202,025 $217,260 $54,936 $58,886 GAAP gross margin 63% 64% 65% 66% Adjusted gross margin 70% 72% 72% 73% Adjusted Gross Profit ($ in thousands) 2022A 2023A Q3’23A Q3’24A Operating income (loss) $28,588 $15,533 $5,569 $2,559 (+) Share-based compensation expense 22,761 31,213 8,322 14,254 (+) Employer payroll taxes on employee stock transactions 350 687 150 301 (+) Expenses associated with public offering – – – 416 (+) Sponsor and third-party acquisition related costs 4,228 – – – (+) Restructuring related costs(1) – 3,621 – – (+) Material weakness remediation(2) – – – 507 Non-GAAP operating income $55,927 $51,054 $14,041 $18,037 GAAP operating margin 10% 5% 7% 3% Non-GAAP operating margin 19% 17% 18% 22% Non-GAAP Operating Income Note: Adj. gross profit is a non-GAAP Measure. Adj. gross profit is calculated by subtracting non-GAAP cost of revenue from net revenues. Adj. gross profit margin represents adj. gross profit as a percentage of revenues. (1) Restructuring related costs for the year ended December 31, 2023 is inclusive of net acceleration (forfeitures) of share-based compensation associated with restructuring in the amount of $(663) thousand. (2) Expenses for services performed by a third party consultant related to efforts to remediate our previously identified material weakness.
©2024 MERIDIANLINK, INC. ALL RIGHTS RESERVED. 17 Financial Reconciliations (Cont’d) ($ in thousands) 2022A 2023A Q3’23A Q3’24A Sales and marketing $23,658 $35,792 $9,441 $10,492 (-) Share-based compensation expense 2,160 3,849 1,260 1,870 (-) Employer payroll taxes on employee stock transactions 40 95 27 51 Non-GAAP sales and marketing $21,458 $31,848 $8,154 $8,571 GAAP sales and marketing as a % of revenue 8% 12% 12% 13% Non-GAAP sales and marketing as a % of revenue 7% 10% 11% 11% Non-GAAP Sales and Marketing Expense ($ in thousands) 2022A 2023A Q3’23A Q3’24A Research and development $42,592 $47,517 $11,248 $10,019 (-) Share-based compensation expense 6,472 7,060 1,709 2,630 (-) Employer payroll taxes on employee stock transactions 102 189 38 77 Non-GAAP research and development $36,018 $40,268 $9,501 $7,312 GAAP research and development as a % of revenue 15% 16% 15% 12% Non-GAAP research and development as a % of revenue 13% 13% 12% 9% Non-GAAP Research and Development Expense ($ in thousands) 2022A 2023A Q3’23A Q3’24A General and administrative $82,649 $92,663 $23,218 $29,649 (-) Share-based compensation expense 9,499 16,456 4,443 8,502 (-) Employer payroll taxes on employee stock transactions 81 246 59 118 (-) Expenses associated with public offering – – – 416 (-) Material weakness remediation(1) – – – 507 (-) Depreciation expense 2,319 1,860 490 326 (-) Amortization of intangibles 36,110 37,840 9,419 9,407 Non-GAAP general and administrative $34,640 $36,261 $8,807 $10,373 GAAP general and administrative as a % of revenue 29% 31% 30% 37% Non-GAAP general and administrative as a % of revenue 12% 12% 12% 13% Non-GAAP General and Administrative Expense (1) Expenses for services performed by a third party consultant related to efforts to remediate our previously identified material weakness.
©2024 MERIDIANLINK, INC. ALL RIGHTS RESERVED. 18 Balance Sheet Highlights ($ in thousands) 2022A 2023A Q3’24A Total current assets $128,132 $124,427 $133,443 Property and equipment, net 4,245 3,337 2,362 Intangible assets, net 297,475 251,060 214,125 Goodwill 608,657 610,063 610,063 Other assets 20,648 7,364 7,950 Total assets $1,059,157 $996,251 $967,943 Total current liabilities $54,199 $55,844 $71,619 Long-term debt, net of debt issuance costs 423,404 420,004 466,137 Other liabilities 2,463 12,156 11,865 Total liabilities $480,066 $488,004 $549,621 Total stockholders’ equity 579,091 508,247 418,322 Total liabilities and stockholders’ equity $1,059,157 $996,251 $967,943
©2024 MERIDIANLINK, INC. ALL RIGHTS RESERVED. 19 FCF & Net Leverage ($ in thousands) 2022A 2023A Q3’23A Q3’24A 2021 Term loan $431,738 $427,388 $428,475 $473,919 (-) Debt issuance costs 4,829 3,842 4,006 4,009 (-) Cash and cash equivalents 55,780 80,441 97,560 82,266 Net Leverage $371,129 $343,105 $326,909 $387,644 LTM Adjusted EBITDA 111,199 112,990 105,059 128,454 Leverage multiple 3.3x 3.0x 3.1x 3.0x ($ in thousands) 2022A 2023A Q3’23A Q3’24A Net cash provided by operating activities $74,587 $67,964 $21,301 $20,595 (-) Capital expenditures 1,136 943 42 61 (-) Capitalized software 8,228 9,250 2,442 1,799 Non-GAAP free cash flow $65,223 $57,771 $18,817 $18,735 Net cash provided by operating activities as a % of revenue 26% 22% 28% 26% Free cash flow as a % of revenue 23% 19% 25% 23% Free Cash Flow Net Leverage
©2024 MERIDIANLINK, INC. ALL RIGHTS RESERVED. 20 Financial Supplement Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Lending software solutions $195.5 $193.7 $ 191.1 $189.2 $188.1 $186.4 $185.5 $182.3 $166.2 Data verification software solutions $63.8 $63.6 $ 65.3 $68.4 $69.3 $71.3 $73.4 $77.1 $81.8 Total $259.3 $257.3 $ 256.4 $257.5 $257.4 $257.7 $258.9 $259.4 $248.1 Annual Recurring Revenue (ARR)¹ Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Lending software solutions 101.9% 101.9% 101.1% 101.4% 106.0% 108.9% 113.3% 113.1% 109.1% Data verification software solutions 92.0% 89.9% 90.3% 88.5% 84.3% 83.5% 84.0% 87.0% 89.9% Total 99.2% 98.6% 98.1% 97.5% 98.8% 100.0% 102.6% 103.4% 101.8% Net Retention Rate² Organic Customer Growth Rate4 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Lending software solutions 1,531 1,544 1,555 1,567 1,588 1,594 1,603 1,606 1,519 Data verification software solutions 430 430 430 429 435 436 430 427 431 Total 1,961 1,974 1,985 1,996 2,023 2,030 2,033 2,033 1,950 Total Customer³ Count Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Lending software solutions (3.6)% (3.1%) (3.0)% (2.4)% (0.9)% 0.1% 1.5% 2.8% 3.3% Data verification software solutions (1.1)% (1.4%) 0.0% 0.5% 0.9% 2.1% 1.9% 0.5% 0.0% Total (3.1)% (2.8%) (2.4)% (1.8)% (0.5)% 0.5% 1.6% 2.3% 2.5% (1) Annual Recurring Revenue, or ARR, is calculated as the total subscription fee revenues calculated in the latest twelve-month measurement period for those revenue-generating entities in place throughout the entire twelve-month measurement period plus the subscription fee revenues calculated on an annualized basis from new entity activations in the measurement period. (2) ARR Net Retention Rate is calculated as the total ARR in the latest twelve-month period from the revenue-generating entities in place as of the prior-year period, expressed as a percentage of the total ARR for the prior-year period from the same cohort of entities. (3) Customer defined as a legal entity that has a contractual relationship with us to use our software solutions. (4) Organic Customer Growth Rate is the percentage increase in the number of total customers on the last day of the measurement period compared to the number of total customers on the day twelve months prior to the measurement date, which measures the change in total customers, net of both customer terminations and customer additions between the respective measurement periods.
©2024 MERIDIANLINK, INC. ALL RIGHTS RESERVED.©2024 MERIDIA LINK, INC. ALL IGHTS RESERVED. InvestorRelations@MeridianLink.com 21