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COSTA MESA, Calif. - MeridianLink, Inc. (NYSE: MLNK), a $1.44 billion market cap provider of software platforms for financial institutions, has implemented its MeridianLink Mortgage solution at Solarity Credit Union, enhancing the Washington-based credit union’s lending efficiency. With annual revenue of $316.3 million and an impressive gross margin of 71.78%, MeridianLink has demonstrated strong operational efficiency. Solarity, which serves around 50,000 members, transitioned from using 13 different systems to a unified mortgage loan origination system (LOS) provided by MeridianLink.
The adoption of MeridianLink Mortgage has resulted in a more streamlined lending process for Solarity, reducing the time from mortgage application to funding from 23 to 20 days and cutting processing time from 21 days to 14. This has led to increased operational efficiency within the credit union. According to InvestingPro analysis, MeridianLink’s focus on operational excellence has caught analysts’ attention, with two analysts recently revising their earnings estimates upward for the upcoming period. For deeper insights into MeridianLink’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
Solarity Credit Union has also utilized MeridianLink’s unified platform, MeridianLink One, to improve cross-selling capabilities for consumer and mortgage products, including Home Equity Lines of Credit (HELOC) and small business loans involving real estate. The technology has allowed for a more versatile workforce and reduced dependency on specialized roles.
James Wise, business solutions manager at Solarity Credit Union, highlighted the benefits of the technology, stating that the efficiency and simplification provided by MeridianLink have enabled the credit union to thrive and compete effectively. Wise emphasized the cost savings achieved through improved time efficiency, which can be passed on to members.
MeridianLink’s suite of application programming interfaces (APIs) has further allowed Solarity to integrate product and pricing engines into their LOS and maintain existing relationships with key stakeholders, such as title companies and auto dealerships, within a single product offering. This integration strategy helps to mitigate the risk of data leaks.
Devesh Khare, Chief Product Officer at MeridianLink, expressed enthusiasm about expanding the partnership with Solarity Credit Union, aiming to deliver improved consumer experiences through MeridianLink’s digital capabilities.
As Solarity Credit Union looks to attract a younger, Gen Z audience, it plans to continue leveraging MeridianLink’s technology to offer mobile and online financial services that cater to the needs of these tech-savvy members.
This article is based on a press release statement from MeridianLink, Inc. For more information on MeridianLink Mortgage and MeridianLink Consumer, interested parties can visit the company’s website.
In other recent news, MeridianLink reported its fourth-quarter 2024 earnings, revealing a notable miss on earnings per share (EPS), which came in at -$0.10 against a forecast of $0.08. Despite this, the company achieved a slight revenue beat with $79.4 million, which is a 7% increase year-over-year, compared to the anticipated $78.73 million. Raymond James analyst Alexander Sklar revised the price target for MeridianLink to $24.00 from the previous $28.00, maintaining an Outperform rating, citing the company’s strong execution in areas outside the mortgage sector. Meanwhile, Citi analyst Andrew Schmidt adjusted the price target to $20.00 from $24.00, keeping a Neutral rating, and noted that the company’s adjusted EBITDA for the quarter was slightly above expectations.
Stifel analysts maintained a Hold rating with a $20.00 price target, following MeridianLink’s financial results that surpassed expectations in revenue, adjusted EBITDA, and free cash flow. MeridianLink’s strong performance in new logo bookings, marking a two-year peak with a 40% year-over-year increase, was highlighted despite challenges in the mortgage sector. The company announced an incremental share buyback of approximately $100 million, representing about 15% of the current float, which could support the stock price. MeridianLink’s management has provided a revenue guidance range of $326 million to $334 million for 2025, aiming for a 3-6% growth, and plans to continue investing in its product roadmap and go-to-market capabilities.
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