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AVID Launches New Upgrades to Pro Tools Artist for ALA Students
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Avid Technology recently announced that its Avid Learning Academy (ALA) program has transitioned to Pro Tools Artist, which will give every student enrolled in the program free access to the new Pro Tools Artist (PTA) software.
The ALA program was built by Avid to help students aspiring to build a career in media and is currently provided in high schools that are looking to build their own media arts program. To further benefit the aspiring students, Avid is providing them with Pro Tools software.
Avid introduced the PTA software in late April 2022 as a new lower-priced tier directed at the music creation community. Music creators can use the software to make beats, write songs, record vocals and instruments and mix studio-quality music.
The initial result from the Pro Tools Artist offering reflected solid demand for the product, which helped to increase Avid’s subscriber base and impacted the subscription revenue growth positively in the second quarter of 2022. The recent offering of PTA software to ALA program students, who mainly belong to high schools, is expected to increase the company’s brand awareness for the product as budding musicians and producers will use the product for developing their music.
Avid Technology realized a 10.6% decline in integrated solutions revenues in second-quarter 2022, as the company continued to face challenges in delivering certain parts of its integrated solutions portfolio to customers due to global supply chain constraints. In the first half of the year, Avid’s unfulfilled contractually committed orders were more than 20 million. This impacted revenue growth negatively.
Further, the company is facing competition across all of its product offerings from companies like ChryonHego corporation, Dell Technologies, Adobe, Yamaha Corporation and big tech giants like Apple (AAPL - Free Report) .
Apple has cut into the video editing space as it provides less expensive digital video editing software. Apple’s video editing software uses machine learning to help provide video editing features and is currently available with its latest iPhone offerings which is helping the company to gain market share in the video editing software market.
However, to deal with the rising competition, Avid has forged strategic partnerships with other FAAAM companies like Amazon (AMZN - Free Report) and Microsoft (MSFT - Free Report) .
Avid has partnered with Amazon studios to help in Amazon’s content production in the cloud with software such as Media Composer, Nexis storage and media control platform.
Avid is also benefiting from its multi-year agreement with Microsoft, which includes technology collaboration, co-development of cloud bases solutions and the launch of several software-as-a-service offerings. This partnership is helping Avid to create new technologies, which are attracting new users to many of its subscription-based product offerings.
In the second quarter, Avid realized net adds of 18,500 subscriptions and delivered year-over-year growth of 22%. As a result, the company, which currently carries a Zacks Rank #3 (Hold) reported subscription revenue growth of 58.7% in the quarter. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
AVID’s shares have slumped 0.1% in the year-to-date period, beating the Zacks Computer - Software industry, which has declined 60.1% in the same period.
The company expects that the effects of the supply chain constraints will start resolving from the second half of 2022 and Avid will be able to cover much of its backlog.
Also, rising inflation has placed huge pressure on media technology budgets, while content output is expected to increase exponentially to meet the rising demand. To attract next-generation creators amidst this market volatility, Avid created the Pro Tools Artist as a low-priced tier, which will contribute to its subscription revenue growth.
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AVID Launches New Upgrades to Pro Tools Artist for ALA Students
Avid Technology recently announced that its Avid Learning Academy (ALA) program has transitioned to Pro Tools Artist, which will give every student enrolled in the program free access to the new Pro Tools Artist (PTA) software.
The ALA program was built by Avid to help students aspiring to build a career in media and is currently provided in high schools that are looking to build their own media arts program. To further benefit the aspiring students, Avid is providing them with Pro Tools software.
Avid introduced the PTA software in late April 2022 as a new lower-priced tier directed at the music creation community. Music creators can use the software to make beats, write songs, record vocals and instruments and mix studio-quality music.
The initial result from the Pro Tools Artist offering reflected solid demand for the product, which helped to increase Avid’s subscriber base and impacted the subscription revenue growth positively in the second quarter of 2022. The recent offering of PTA software to ALA program students, who mainly belong to high schools, is expected to increase the company’s brand awareness for the product as budding musicians and producers will use the product for developing their music.
Avid Technology, Inc. Price and Consensus
Avid Technology, Inc. price-consensus-chart | Avid Technology, Inc. Quote
Avid’s Subscription Revenue Growth Driving Share Price
Avid Technology realized a 10.6% decline in integrated solutions revenues in second-quarter 2022, as the company continued to face challenges in delivering certain parts of its integrated solutions portfolio to customers due to global supply chain constraints. In the first half of the year, Avid’s unfulfilled contractually committed orders were more than 20 million. This impacted revenue growth negatively.
Further, the company is facing competition across all of its product offerings from companies like ChryonHego corporation, Dell Technologies, Adobe, Yamaha Corporation and big tech giants like Apple (AAPL - Free Report) .
Apple has cut into the video editing space as it provides less expensive digital video editing software. Apple’s video editing software uses machine learning to help provide video editing features and is currently available with its latest iPhone offerings which is helping the company to gain market share in the video editing software market.
However, to deal with the rising competition, Avid has forged strategic partnerships with other FAAAM companies like Amazon (AMZN - Free Report) and Microsoft (MSFT - Free Report) .
Avid has partnered with Amazon studios to help in Amazon’s content production in the cloud with software such as Media Composer, Nexis storage and media control platform.
Avid is also benefiting from its multi-year agreement with Microsoft, which includes technology collaboration, co-development of cloud bases solutions and the launch of several software-as-a-service offerings. This partnership is helping Avid to create new technologies, which are attracting new users to many of its subscription-based product offerings.
In the second quarter, Avid realized net adds of 18,500 subscriptions and delivered year-over-year growth of 22%. As a result, the company, which currently carries a Zacks Rank #3 (Hold) reported subscription revenue growth of 58.7% in the quarter. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
AVID’s shares have slumped 0.1% in the year-to-date period, beating the Zacks Computer - Software industry, which has declined 60.1% in the same period.
The company expects that the effects of the supply chain constraints will start resolving from the second half of 2022 and Avid will be able to cover much of its backlog.
Also, rising inflation has placed huge pressure on media technology budgets, while content output is expected to increase exponentially to meet the rising demand. To attract next-generation creators amidst this market volatility, Avid created the Pro Tools Artist as a low-priced tier, which will contribute to its subscription revenue growth.