Avid Technology Inc (NASDAQ:AVID) Q3 2020 Earnings Conference Call - Final Transcript

Oct 28, 2020 • 05:30 pm ET

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Avid Technology Inc (NASDAQ:AVID) Q3 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good afternoon, ladies and gentlemen, and welcome to the Avid Technology's Third Quarter 2020 Earnings Call. [Operator Instructions]

Let me turn the call over to Whit Rappole, Vice President of Investor Relations. Please go ahead, sir.

Executive
Whit Rappole

Thank you, Keith. Good afternoon, everyone, and thank you for joining us today for Avid Technology's third quarter 2020 earnings call for the period ending September 30, 2020. My name is Whit Rappole, Avid's Vice President for Corporate Development and Investor Relations. With me this afternoon are Jeff Rosica, our Chief Executive Officer and President; and Ken Gayron, our Chief Financial Officer and EVP.

In their prepared remarks, Jeff will provide an overview of our business, and then Ken will provide a detailed review of our financial and operating results, followed by time for your questions. We issued our earnings release earlier this afternoon, and we have prepared a slide presentation that we will refer to on this call. The press release and presentation are currently available on our Investor Relations website at ir.avid.com, and a replay of this call will be available on our website for a limited time.

During today's call, management will reference certain non-GAAP financial metrics and operational metrics. In accordance with Regulation G, both the appendix to our earnings release today and our investor website contain a reconciliation of the most closely associated GAAP financial information to the non-GAAP measures and also definitions for the operational metrics used on this call and in the presentation. Unless otherwise noted, all figures noted by management during the call are non-GAAP figures.

In addition, certain statements made during today's presentation contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Our comments and answers to your questions on this call as well as the accompanying slide deck may include statements that are forward-looking and that pertain to future results or outcomes. Actual future results or occurrences may differ materially from these forward-looking statements.

For more information, including a discussion of some of the key risks and uncertainties associated with these forward-looking statements, please see our press release issued today and our most recent annual report on Form 10-K and quarterly reports on Form 10-Q filed with the SEC.

With that, let me turn the call over to our CEO and President, Jeff Rosica, for his remarks.

Executive
Jeff Rosica

Thank you, Whit, and thanks to everyone for joining us to review Avid's third quarter results that we released today. We're certainly pleased with our Q3 results. Specifically, we're encouraged by the start of the turnaround in demand that we encountered in our non-recurring business during the quarter. And also with the continued strength of the recurring revenue elements of our business, driven by both the growth of our creative software subscription business and initial rollout of our enterprise subscription offerings. COVID-19 did continue to have some temporary impact on customer demand on some parts of our non-recurring product business. But we expect now to continue the recovery that started in the