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VII Avid Technology Announces Third Quarter 2021 Results November 9 , 2021 12.4 % Year - Over - Year Revenue Growth 56.4 % Year - Over - Year Subscription Revenue Growth $ 16.5 million in Net Cash Provided by Operating Activities Leading to Free Cash Flow of $ 14.0 million Raises Subscription & Maintenance Revenue Guidance and Raises High - End of Revenue Guidance for Full - Year 2021 BURLINGTON , Mass . , Nov. 09 , 2021 ( GLOBE NEWSWIRE ) -- Avid® ( NASDAQ : AVID ) , a leading technology provider that powers the media and entertainment industry , today announced its financial results for the third quarter ended September 30 , 2021 , raised full - year 2021 guidance for Subscription & Maintenance Revenue , raised the high - end and tightened the range for total revenue and tightened the range towards the high - end of guidance on all other full - year 2021 metrics . Total revenue increased 12.4 % year - over - year in the third quarter to $ 101.6 million , as the Recurring Revenue components of the Company's business continued on a strong trajectory . Subscription revenue was $ 28.0 million , an increase of 56.4 % year - over - year , reflecting continued growth in paid subscriptions for creative tools , including an acceleration in Pro Tools net adds in the third quarter , and strong enterprise subscription sales in the quarter . The continued revenue growth resulted in GAAP net income per share of $ 0.32 and Non - GAAP Net Income per Share of $ 0.27 , which was at the higher end of the guidance range provided for the third quarter . This strong profitability resulted in net cash provided by operating activities of $ 16.5 million , and Free Cash Flow of $ 14.0 million for the quarter . Third Quarter 2021 Financial and Business Highlights • Subscription revenue was $ 28.0 million , an increase of 56.4 % year - over - year . • Paid Cloud - enabled software subscriptions increased by 35.0 % year - over - year to approximately 389,000 at September 30 , 2021 and increased by approximately 19,300 from June 30 , 2021 . • Subscription & Maintenance revenue was $ 58.7 million , an increase of 20.5 % year - over - year . • Total revenue was $ 101.6 million , an increase of 12.4 % year - over - year . • LTM Recurring Revenue % was 77.1 % of the Company's revenue for the 12 months ended September 30 , 2021 , up from 71.2 % for the 12 months ended September 30 , 2020 . • Annual Contract Value was $ 328.0 million as of September 30 , 2021 , a year - over - year increase of 20.6 % , from $ 271.9 million as of September 30 , 2020 . • Gross margin was 64.8 % , an increase of 40 basis points year - over - year . Non - GAAP Gross Margin was 65.3 % , an increase of 40 basis points year - over - year . ● Operating expenses were $ 56.4 million , an increase of 24.8 % year - over - year . Non - GAAP Operating Expenses were $ 51.3 million , an increase of 24.1 % year - over - year . The prior year included significant temporary cost savings initiatives that were put in place due to the COVID - 19 pandemic , including a $ 6.0 million benefit from temporary employee furloughs in the third quarter of 2020 , which affect comparisons to the prior year period for operating expenses , net income , Adjusted EBITDA , net cash provided by operating activities and Free Cash Flow . • Net income was $ 14.8 million , an increase of 85.0 % year - over - year . Net income in the third quarter of 2021 included a one - time $ 7.9 million benefit from the forgiveness of the PPP loan and accrued interest . Non - GAAP Net Income was $ 12.4 million , an increase of 1.9 % year - over - year . Both net income and Non - GAAP Net Income in the third quarter of 2020 benefitted from the significant temporary cost savings discussed above . • Net income per common share was $ 0.32 up from net income per common share of $ 0.18 in the third quarter of 2020. Net income per common share in the third quarter of 2021 included a one - time benefit of $ 0.17 per common share from the forgiveness of the PPP loan and accrued interest . Non - GAAP Net Income per Share was $ 0.27 , unchanged from the third