Thank everyone. you, Jeff and afternoon good
with above, April in to our figures issued Jeff are Xth. XXXX and for referring first in noted guidance revised update and I noted our financial provided business the were As comments. non-GAAP Overall, quarter results unless on in line business the the of we
the to of global including business sources, maintenance faced revenue our late major recurring our While pandemic. and the nonrecurring the strong, due portion headwinds in subscription unfolding quarter were
will current quickly and conditions. react be focus beyond to market the Our second the in to quarter
of and adjust have spending part saving our and we this began cost have plans effort, April. instituted forecast been efforts in revising As targets, significant that to operating
customers We with shareholders. efforts, coming we to prepared deliver company, are can well weather confident our value and to these the months stronger emerge as the side that other a on and
XX.X% pandemic. let's down now non-recurring with and sales revenue was details down sharply from of in impact GAAP maintenance, quarter our get while year-over-year. fourth revenue and With COVID-XX due $XX.X first subscription perpetual the the strong million that, stable results. the was was financial licenses growth during Recurring to the hardware on of revenue into quarter,
subscription was the revenue growth exceeded revenue. $XX.X year-over-year, decline as up XX.X% Combined XX.X% X.X% the in subscriptions maintenance and far in revenue maintenance million,
legacy in of year-over-year. X.X% XXXX, the the decline systems been at have storage maintenance maintenance Excluding setting] revenue the [sun from end would revenue up
XX% Asia-Pacific XX.X% revenue of year-over-year, down down the During of and was the XX% a was year-over-year, first total were order from XX% the as storage that quarter, from Revenue and EMEA XX% Asia-Pacific XX.X% revenue on first constant revenue the did further the euro approximately the currency, dollar year-over-year. quarter in XXXX year-over-year, to Asia-Pacific when in in down down you down Americas geographies. revenue first in other seen from normalized was multimillion first first U.S. total quarter as the the deal compared was of COVID-XX first Please the XXXX from storage about basis recall and be included reoccur multimillion XXXX, relatively currency the our not total also that impacts negatively before And dollar that dollar XXXX. quarter adjust constant quarter for occurred XX.X% impacted large stronger by of At revenue X%. and our XXXX of our quarter a would XX%. revenue
by was increase due margin. first points on quarter, a margin our XX of more revenue revenue, up year-over-year. in lower higher services maintenance subscription favorable mix and basis margin for in was gross XX.X% the products offset impact to The part the Gross our of professional volumes
were The million, lower initiatives, $XX.X were of well to quarter savings the XXXX. was as and the savings $X.X in bonus by benefits smart from decrease quarter. $XXX,XXX a charges of offset first million exchange which of related $XXX,XXX the the costs Trade and cancelled X.X% write-off, debt spending, Show of Adjusted NAB in onetime the reflecting discretionary for quarter, $XXX,XXX. bad the and decrease for quarter expenses million fourth a expenses $X.X our as due part accrual from EBITDA was and decrease million Operating in year-over-year margin $X.X operating to foreign
as to in an expected the billings decline due inventory the over quarter, per down in lower year decline increase down operating in as net Non-GAAP $X.XX for than negative year the by Free year-over-year, cash collections product flow income, was $XX.X and well net million in million loss sales. plus in $X.X income. the non-GAAP decline the share impacted $X.XX was first reflecting quarter,
and Now, moving our annual The percentage to increase. contract to that recurring of steadily value. recurring continues revenue revenue is
revenue to of nonrecurring months the increased For long-term XXXX. due up XX% the total generally was increased under flat XX with revenue subscription and services ending professional revenue recurring, revenue. months XXXX, and and maintenance March XX March products in Recurring percentage from revenue XX% revenue agreements, ending lower XX, XX,
given subscriptions the seeing revenue are We continue adding our new expect on in long-term time, we growth over increasing percentage agreements. recurring focus and to
was $XXX strategy end software our long-term the agreements. benefiting growth million quarter, million contract at year-over-year, strategic to from [descriptions] ACV both was and agreements Annual and the XX% from $X.X of agreements. enterprise margin focus on or value XX% long-term higher up The year-over-year continued on agreements in purchasing
During new the first two strategic quarter, we purchasing agreements. added
purchase purchasing total strategic quarter the under are their that first minimum in in aggregate of partners Our exceeded XXXX. commitments agreements
of be growth net In quarter, record As with we we detail total growth of was of base. new nearly a XX% streams, the new Media subscription particularly subscriptions by and solutions, subscriptions and XXX,XXX our subscription end. we in Pro number for software resilience encouraged XX% quarter look revenue year-over-year. strong XX,XXX added and Tools, to our counts reached into continued the continue our creative up up first the at Subscription our nearly year-over-year Composer
see paid we when and XX% now paid are revenue we to the monthly paid subscriptions upfront subscriptions, Additionally, shift from the higher annual contracts, up quality which continue XXX% Annual of towards ago. upfront X% grew quarter subscriptions. a for compared represent a to year year-over-year Avid first in total streams believe
subscriptions basically ago. now total the account down of for and flat year were XX% from subscriptions, year-over-year While XX% month-to-month a
believe subscriptions specific increase temporarily certain for important that We capacity month-to-month remain to their will projects. to enable customers
subscriptions, subscriptions augment short-term quarter, in the will effect flow continue in increases our churn with who believe annual grow the From in However, that the are paid paid to customers cash we first the in the subscriptions of in enterprise annual perspective, part long-term. in share more a total front reduce the which help contracts, into went quarter growth billings adopt our and selecting increase the of to for customers price third that as subscriptions upfront up of XXXX. cash coupled increased above XX% due in year-over-year rate will
of the Maintenance during the first to revenues. down X.X% quarter, $XX.X composition moving our million year-over-year. Now revenue was
We support noncash slowly declining the maintenance legacy for revenue the continue and of see end impact flows our of solutions storage to through that revenue.
and on noncash stronger in year-over-year the been have from by maintenance of in part storage subscription. on sales maintenance composer as legacy transition X.X% portion offset management base Tools and on solutions renewal media would growing and a maintenance Excluding users contributions XXXX, generally those to revenue, product a legacy and media up revenue declines maintenance revenue Pro
continues down revenue perpetual over selecting weakness subscription particularly license licenses quarter in portion software While in grow, subscriptions COVID-XX to due to late a to products. year perpetual revenue due sales, our and was XX.X% of rather for than MediaCentral customers year the perpetual our to creative
down Gross was purchasing This line The substantial over maintenance company's XX first as solutions and in year broadcast margin of service due festivals. video impact million impact the customers, due quarter, decisions. due the year basis integrated in declines on in points storage XX.X up in well was of hardware revenue sound COVID-XX on COVID-XX of quarter, to over operations to decline the licenses and sales as and revenue on studio software XX.X% demand on COVID-XX year. concerts to customer the was music on year software in audio of sales XX.X% impact impacted in lower by live and
shifted volumes will products content the see software not lower creation basis do more that plus there points solutions. and in overhead over manufacturing believe be integrated strong quarters first much in Gross less and in down our was mix margin as resurgence we year year as future improvement require hardware storage. hardware in audio XX.X% software to some as absorb and companies economies within we towards will As integrated hardware from production reopen, expect quarter, products in a X,XXX quarter, the
of global balance out revenue as to by personnel the year caused In to in Gross a that year from our down response situation, the services pushed due Professional X.X% XXX further X of The services the to was down quarter, in services to points lower year were XXXX cost we certain April the and quarter. business. positioned COVID-XX to quarter, comes basis first utilization over starting onsite revenue year effort the margin due survive we to million be delays global professional during implemented pandemic. are savings was professional pandemic. evolving ensure our professional the availability well limited services projects in the on rapidly over significant XX.X%
has during wage The our three actions during over of include second to company cost third reduce the expect The at employees per least so will this furloughs and million year year XX quarter expenses non-GAAP that or impact the structured actions to XXXX. We for operating by the customers most reduction equivalent experience weeks savings for period. an little temporary no quarters. furloughs
in non-executive be will similar directors Our and the temporary with executive officers also salary board of line employees. taking reductions
are X hiring to non-material outside spending. of freeze operating million benefit increase shows will at during in professional year-over-year lower and an The efforts of XXXX other reduction gross and we reduction in cash merit with matching, elimination margin of saving in trade expected over costs $XX savings protect actions cancel discretionary yield volumes. usage second consultants which services, of in have reduced product also in sold cost cost expect services expense goods April XXXX. the related quarter year least starting are expected and marketing XXXk contractors, travel the to XXXX, reductions These Our at immediate spend in to reduced year activities, expected and and million other and our
planned also XX% our We liquidity, have November but flow we approximately capital guidance the now also that be preserve all we necessary cash to in indicated situation reduced company growth. best as longer position cost actions we're monitoring provided and level that this further We're capital expenditure XXXX. XXXX free for spending enhance actively the improvement below our term take expenditures plans, prepared And in enterprise we for the the XXXX. and XXXX of deferring will for to expect
balance sheet. Now turning to the
the of million, to quarter million XXXX, had XXXX. $XX.X flow reduced cash billings draw XXXX XX, by on XX, from quarter balance million free $XX Cash accounts million negative offset existing $XX.X from million $XX.X under we of December balance the XXXX. XX, at March $XX credit of quarter. of increased ended in with million X.X cash our due revolving We receivable, primarily up facility, during down the of first December As
Inventory was quarter, to XXXX million of December due $XX.X March XXXX. expected were lower sales XX, at from end Inventory down the $X.X the up the million than at $X.X million and from quarter. levels up XX, end of the
to partners manufacturing be first with that supported the chain would and of expect doesn't performance second quarter continue We production. Mexico, in partner pleased new information, impact on our new quarter Based production the any our needs. and contract issues its fully current supply Avid production
early restrictions Mexican the our on produce month April non-essential response of manufacturers placed the items, the that government limited including pandemic, their in April. to ability as COVID-XX to businesses, products contract In for such
We we the that have revised they production needed expected partners quarter. in sufficient May, manufacturing early guidelines, believe facilities under our contract needs during to us informed our in logistics in production our inventory resumed have products. U.S. our the second However, support of our goods finished
continue globally continues to global the evolve. as our will chain situation providers monitor We supply to pandemic
revenue. draw million and of previously long-term of December deferred the XXXX revenue was monthly seasonal and million, on subscriptions. in $XX.X quarter from million $XX December from the recognition XXXX, quarter, to debt XXst million the $X.X of due up Moving to the XX, March paid maintenance $X.X million increased assets, the revenue mentioned XX, from enterprise end noncash annual $XX.X existing and IPCS revolving At $X.XX to from agreements, million during was $XX.X increase which credit facility. Deferred contract at $XXX.X decline million million down
and to metrics. our turning credit capitalization Now
of We March Starting the XXst, covenant will in June, was leverage down. our given leverage compliance our start times gradually X.X to times. X level. step our leverage credit with liquidity agreement As covenant per in were a
the fully and gradually the We our as of are realize leverage savings. leverage in expect XXXX second half monitoring multiple we improve planned our cost covenant, we to
Paycheck result interest has tax all of in needs of accrue companies that forgiven pandemic. Avid and receiving Avid million expected Avid rate unsecured the X%. conditions, and under a today, If in amount date. signed programs, the a loan Avid also at evaluating stimulus $X.X at the $X.X the loan incentive both would which to be certain some a Program, so been would the million note later an in overseas maybe or U.S. weather promissory Earlier Protection
plan our repay with at maturity. on XXXX our balance notes sheet current Finally, our is to XX, convertible cash due June
Let's our product uncertain. global The and now business turn on for to is demand evolving our COVID-XX impact its pandemic, potential our market still and outlook.
of Given full outlook providing uncertainty, the second level not the quarter. limited we and we’ll for are provide guidance for year XXXX
quarter, professional decline the quarter revenue. quarter a during that Our at current the a year-over-year license resulting weakness in of second is expectation and to saw continue for the second and we the end service in for first in hardware total integrated perpetual solutions,
in and will continue that growth maintenance We be expect will revenue subscriptions stable.
maintenance So to will combined subscription revenue grow continue year-over-year. plus
by We expect at will April XXXX year-over-year that savings $X implemented in protect gross million help and efforts the expenses starting cost margin. reduce operating our least
EBITDA adjusted in the on sequentially based cost structure second outlook expect lower for quarter, the our a for year-over-year the in revenue improved significantly quarter higher We quarter. and
remainder XXXX, the play As could how we have look various business. to the evaluating our situation scenarios out COVID-XX in of we been for
that and will music into with up live our fall that building live for solutions delivering subscription is that believe for to production the the pent new and remain weak television eased. film support content demand We and of resurface expect to for that many sports production, demand performance restrictions strive remain studios content demand their new healthy on the audiences. We offerings as creators should when individually continue within and
for XXXX. for stable business, we margin saving all believe what appropriate to With flow deliver and free our positive taken cash adjusted to these we measures challenges EBITDA be expected cost have
as want have to COVID-XX the repeat Finally, and the quickly I that support our pandemic mobilized customers to through emerged we employees crisis.
We have plans costs during preserve spending downturn. to revised the and operating cash our control
cloud remote our quarter. during to cost and customers, immediate business these have and practice are continuity expect to we pandemic savings the impact during the second out building beyond. And workflows our We support aggressively
the I'd call like turn Whit With back Rappole. that, to to
