Avid Technology
Burlington, Massachusetts, United States
Industry: Technology/Electronics
Region: US 🇺🇸
Year Founded: 1987
IPO Date: 05-17-1993
Market Cap: $1.2 billion
Number of Employees: Approx. 1,600
Revenue: $511 million (2020)
Net Income: -$28 million (2020)
Avid Technology, Inc.
Avid Technology IPO
Avid Technology first went public on April 15, 1993, on the NASDAQ exchange under the ticker symbol “AVID.”
The company’s IPO was seen as a testament to its emerging strength in the digital media industry, marking an important milestone in its journey.
Since its IPO, Avid Technology has remained a significant player in the digital media industry, despite various economic fluctuations and industry changes.
Avid Technology IPO Prospectus
A prospectus is a formal document required by and filed with the Securities and Exchange Commission (SEC) that provides details about an investment offering to the public.
You can find Avid Technology’s Prospectus here.
Company Overview & History
Founded in 1987 by Bill Warner, Avid Technology, Inc. is a world leader in digital media creation tools for film, video, audio, and broadcast professionals.
The company revolutionized the film industry with its debut product, the Avid/1 Media Composer, which was the first-ever non-linear editing system.
Throughout the years, Avid has continued to innovate and is known for its industry-standard software like Pro Tools, Media Composer, Sibelius, and more.
It also offers an integrated suite of software including graphics, music, newsroom, and sports production tools.
The company has played an instrumental role in shaping the digital content creation industry and continues to lead with pioneering solutions.
Financial Performance
| Year | Revenue($B) | Net Income($B) | EBITDA($B) | Operational Cash Flow($B) |
|---|---|---|---|---|
| 2020 | 0.37 | 0.04 | 0.07 | 0.08 |
| 2019 | 0.41 | 0.02 | 0.06 | 0.06 |
| 2018 | 0.41 | 0.01 | 0.05 | 0.05 |
| 2017 | 0.41 | 0.01 | 0.05 | 0.05 |
| 2016 | 0.51 | 0.01 | 0.07 | 0.07 |
| 2015 | 0.51 | 0.01 | 0.07 | 0.07 |
| 2014 | 0.56 | 0.01 | 0.08 | 0.08 |
| 2013 | 0.57 | 0.01 | 0.08 | 0.08 |
Business Model
Avid Technology operates on a hybrid business model, combining product sales with subscription services.
They provide software, hardware, and integrated solutions for video and audio content creation, management, and distribution.
While they sell products directly to customers, a significant part of their revenue comes from their subscription services, offering customers continual updates, maintenance, and support for their software tools.
Over the years, Avid has been transitioning towards a more software-centric and recurring revenue business model, with a focus on cloud-enabled solutions, which has been beneficial for their growth and sustainability.
Market Cap Over the Years
| Year | Market Cap($B) |
|---|---|
| 2022 | 1.28 |
| 2021 | 1.10 |
| 2020 | 0.81 |
| 2019 | 0.59 |
| 2018 | 0.73 |
| 2017 | 0.66 |
| 2016 | 0.47 |
| 2015 | 0.48 |
| 2014 | 0.35 |
| 2013 | 0.29 |
| 2012 | 0.19 |
| 2011 | 0.08 |
| 2010 | 0.13 |
| 2009 | 0.07 |
| 2008 | 0.07 |
| 2007 | 0.13 |
| 2006 | 0.07 |
| 2005 | 0.05 |
| 2004 | 0.02 |
| 2003 | 0.01 |
| 2002 | 0.01 |
| 2001 | 0.01 |
| 2000 | 0.01 |
Risk Factors
Like any business, Avid Technology faces several risk factors.
These include rapid technological changes and the need to constantly innovate to stay competitive.
Moreover, they operate in a highly competitive market that includes large multinational corporations with considerable resources.
Avid also faces risks related to intellectual property rights and potential litigation from patent disputes.
The company’s global operations expose it to risks related to foreign currency exchange rates and changes in international regulatory requirements.
Market Opportunity
The market opportunity for Avid Technology is vast and growing.
With the continuous rise in digital content creation, there is an ever-increasing demand for high-quality, efficient, and user-friendly editing software.
The boom in streaming platforms, the rise of podcasts, and the demand for high-quality video content for social media platforms are key drivers of this market.
Moreover, the transition towards cloud-based solutions provides a substantial growth opportunity for the company.
The growing acceptance of the subscription model in the software industry also represents a significant market opportunity for Avid.
Competitors
- Adobe Systems
- Apple Inc. (Final Cut Pro)
- Blackmagic Design (DaVinci Resolve)
- Steinberg Media Technologies (Cubase, Nuendo)
- MAGIX Software GmbH (VEGAS Pro)
- Cakewalk Inc.
- Autodesk Inc.
- Microsoft Corporation (Microsoft Stream)
Key/Fun Company Facts
- The very first version of Avid’s now-iconic Pro Tools was launched back in 1989. Today, it’s widely considered the industry standard for digital audio workstations.
- In 1998, Avid was awarded the Oscar for the concept, system design, and engineering of the Avid Film Composer system for motion picture editing.
- The company has been a pioneer in digital non-linear editing systems. These systems have now become a mainstay in modern digital video production.
- Avid’s Pro Tools has been used in the production of numerous hit records. It is a go-to solution for many Grammy-winning artists and producers.
- The co-founder of Avid Technology, Bill Warner, is a well-known figure in the world of entrepreneurship. He founded the company based on the technology he developed while pursuing his hobby of filmmaking.
- Avid hosts the annual Avid Connect conference where it announces new products, upgrades, and discusses industry trends with its customers. It’s a significant event for audio and video professionals.
- Avid entered the broadcast market in the mid-90s and its solutions are now used by major broadcasters worldwide.