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AVI► Source : Avid Technology , Inc. May 05 , 2021 16:05 ET Avid Technology Announces First Quarter 2021 Results 78.2 % Year - Over - Year Subscription Revenue Growth and Net Increase of Approximately 28,000 Paid Subscriptions During the Quarter 9.2 % Year - Over - Year Revenue Growth as the Company Returned to Year - over - Year Growth $ 12.3 million in Net Cash Provided by Operating Activities and Free Cash Flow of $ 11.1 million in the Quarter Raises Full - Year 2021 Guidance for Subscription & Maintenance Revenue and Free Cash Flow BURLINGTON , Mass . , May 05 , 2021 ( GLOBE NEWSWIRE ) -- Avid® ( NASDAQ : AVID ) , a leading technology provider that powers the media and entertainment industry , today announced its financial results for the first quarter ended March 31 , 2021 . Total revenue increased 9.2 % year - over - year in the first quarter , as the Recurring Revenue components of the Company's business remained strong . Subscription revenue was $ 24.9 million , an increase of 78.2 % year - over year , reflecting continued growth in paid subscriptions and strong enterprise subscription sales in the quarter . Net Income was $ 4.4 million in the first quarter , an increase of $ 10.2 million year - over - year , and Adjusted EBITDA was $ 17.7 million in the first quarter , an increase of 324 % year - over - year . Net income and Adjusted EBITDA benefited from the year - over - year increase in revenue combined with expanding gross margin and lower operating expenses . Net income also benefited from the year - over - year reduction in interest expense . The improvement in profitability also resulted in significant year - over - year improvement in net cash provided by operating activities to $ 12.3 million , and Free Cash Flow to $ 11.1 million in the first quarter . First Quarter 2021 Financial and Business Highlights Subscription revenue was $ 24.9 million , an increase of 78.2 % year - over - year . • Paid Cloud - enabled software subscriptions increased by 49.2 % year - over - year to approximately 324,000 at March 31 , 2021 and increased by approximately 28,000 during the quarter . • Subscription and Maintenance revenue was $ 54.7 million , up 19.6 % year - over - year . • Total revenue was $ 94.4 million , an increase of 9.2 % year - over - year . • Gross margin was 65.1 % , an increase of 360 basis points year - over - year . Non - GAAP Gross Margin was 65.6 % , an increase of 390 basis points year - over - year . • Operating expenses were $ 50.9 million , a decrease of ( 5.1 % ) year - over - year . Non - GAAP Operating Expenses were $ 46.3 million , a decrease of ( 9.8 % ) year - over - year . • Net income was $ 4.4 million , an increase of $ 10.2 million year - over - year . Net income was 4.7 % of revenue , up 1,150 basis points year - over year . Non - GAAP Net Income was $ 13.0 million , an increase of $ 16.4 million year - over - year . Non - GAAP Net Income was 13.8 % of revenue , up 1,770 basis points year over - year . • Net income per common share was $ 0.10 , up from a net loss per common share of ( $ 0.14 ) in the first quarter of 2020. Non - GAAP Net Income per Share was $ 0.28 , up from a Non - GAAP Net Loss per Share of ( $ 0.08 ) in the first quarter of 2020 . Adjusted EBITDA was $ 17.7 million , an increase of 323.6 % year - over - year . Adjusted EBITDA Margin was 18.7 % , a year - over - year increase of 1,390 basis points .