NextGen Healthcare Reports Fiscal 2023 First Quarter Results – Latest Digital Transformation Trends | Cloud News

ATLANTA–(BUSINESS WIRE)–NextGen Healthcare, Inc. (Nasdaq: NXGN), a number one supplier of revolutionary, cloud-primarily based healthcare expertise options, at the moment introduced its working outcomes for the fiscal first quarter ended June 30, 2022.

Fiscal 2023 First Quarter Highlights

Total income was $153.3 million in comparison with $146.1 million for a similar interval a 12 months in the past, or 5% development.

Recurring income was $139.8 million in comparison with $132.4 million for a similar interval a 12 months in the past, or 6% development. Recurring income accounted for 91% of whole income.

Subscription companies income was $42.8 million in comparison with $38.3 million for a similar interval a 12 months in the past, or 12% development. This development displays stable demand for NextGen Office, Mobile, Telehealth, and different companies.

Bookings, which displays annual contract worth, was $39.2 million in comparison with $34.3 million for a similar interval a 12 months in the past, or 14% development.

Fully diluted internet revenue per share was $0.02 in comparison with $0.04 for a similar interval a 12 months in the past.

On a non-GAAP foundation, totally diluted earnings per share was $0.16 in comparison with $0.25 for a similar interval a 12 months in the past.

“Fiscal first quarter outcomes mirror continued stable execution and robust total demand, as mirrored in each bookings development and subscription companies income development,” mentioned David Sides, President and Chief Executive Officer of NextGen Healthcare. “We proceed to speculate prudently in every of our three domains; Enterprise, Office and Insights, and are on monitor with our lengthy-time period targets. In addition, our centered efforts in company improvement and portfolio administration are shifting ahead as we just lately offered sure, non-strategic, dental-associated property. NextGen Healthcare has began off the fiscal 12 months with optimistic momentum and is nicely positioned to execute on our development agenda.”

After giving impact for the sale of choose dental property, our outlook for fiscal 2023 is now as follows:

Revenue is between $621 million and $633 million, from between $628 million and $640 million

Adjusted EBITDA is between $109 million and $114 million, from between $111 million and $116 million

Non-GAAP earnings per share is between $0.92 and $0.98, from between $0.95 and $1.01

Conference Call Information

NextGen Healthcare will host a convention name at the moment at 5:00 p.m. EST to debate working outcomes from its fiscal 2023 first quarter. Shareholders and individuals might hearken to a reside broadcast of the decision by dialing 800-225-9448 or 203-518-9708 for worldwide callers and referencing participant code NXGNQ123 roughly quarter-hour previous to the decision. A recording of the reside webcast can be accessible on investor.nextgen.com after the decision. It can be archived for 90 days.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press launch comprises ahead-wanting statements inside the that means of the Private Securities Litigation Reform Act of 1995, together with however not restricted to statements we make concerning our fiscal 12 months 2023 outlook, monetary and working outcomes, strategic priorities, development initiatives and anticipated capital expenditures. These ahead-wanting statements are primarily based on the present beliefs, expectations, and assumptions of the Company’s administration regarding the longer term (together with, with out limitation, statements regarding income, internet revenue, and earnings per share). The phrases “positioned,” “proposed,” “potential,” “venture,” “anticipate,” “anticipate,” “intend,” “plan,” “purpose,” “search,” “consider,” “estimate, “technique,” “expectations,” “future,” “seemingly,” “might,” “ought to,” “will,” variations thereof or related expressions are meant to establish such ahead-wanting statements.

Risks and uncertainties exist that will trigger the outcomes to vary materially from these set forth in these ahead-wanting statements, together with however not restricted to: adjustments in legal guidelines and rules relevant to our enterprise; adjustments in market circumstances and receptivity to our companies and choices; strategic actions, together with acquisitions and inclinations and our success in integrating acquired companies; our capability to keep up and increase our enterprise with current shoppers or successfully transition shoppers to newer merchandise; our capability to draw new companions and efficiently seize new alternatives; our capability to develop and develop associate relationships; our capability to draw and retain key workers; our capability to anticipate or reply rapidly to market adjustments, execute our technique and handle development; the influence of litigation and governmental and regulatory company investigations; the influence of governmental and regulatory company investigations; the event by rivals of latest or superior applied sciences; the timing, value and success or failure of latest product and repair introductions, improvement and product improve releases; the influence of the COVID-19 pandemic on our operations and demand for our companies; influence of breaches or failures of the Company’s info safety measures or unauthorized entry to a buyer’s knowledge; disruptions attributable to acquisitions of firms, merchandise, or applied sciences; and common financial circumstances. Additional dialogue of those and different dangers, uncertainties and components affecting our enterprise is contained in our filings with the SEC, together with our most up-to-date Annual Report on Form 10-Okay and subsequently filed Quarterly Reports on Form 10-Q.

A good portion of the Company’s quarterly gross sales of software program product licenses and pc {hardware} is concluded within the final month of a fiscal quarter, usually with a focus of such revenues earned within the last ten enterprise days of that month. Due to those and different components, the Company’s revenues and working outcomes are very tough to forecast. A serious portion of the Company’s prices and bills, akin to personnel and amenities, are of a set nature and, accordingly, a shortfall or decline in quarterly and/or annual revenues usually ends in decrease profitability or losses. As a outcome, comparability of the Company’s interval-to-interval monetary efficiency just isn’t essentially significant and shouldn’t be relied upon as an indicator of future efficiency. These ahead-wanting statements converse solely as of the date hereof. The Company undertakes no obligation to publicly replace any ahead-wanting statements, whether or not because of new info, future occasions or in any other case.

USE OF NON-GAAP FINANCIAL MEASURES

This information launch comprises sure non-GAAP (Generally Accepted Accounting Principles) monetary measures, that are supplied solely as supplemental info. Investors ought to think about these non-GAAP monetary measures solely together with the comparable GAAP monetary measures. These non-GAAP measures usually are not in accordance with or an alternative choice to U.S. GAAP. Pursuant to the necessities of Regulation G, the Company has supplied a reconciliation of non-GAAP monetary measures to essentially the most straight comparable monetary measure within the accompanying monetary tables. Other firms might calculate non-GAAP measures in a different way than NextGen Healthcare, Inc., which limits comparability between firms. The Company believes that its presentation of non-GAAP diluted earnings per share supplies helpful supplemental info to buyers and administration concerning the Company’s monetary situation and outcomes. The presentation of non-GAAP monetary info just isn’t meant to be thought of in isolation or as an alternative choice to, or superior to, monetary info ready and offered in accordance with GAAP.

The Company calculates non-GAAP diluted earnings per share by excluding internet acquisition prices, amortization of acquired intangible property, amortization of deferred debt issuance prices, impairment of property, restructuring prices, shareholder disputes and associated prices, internet of insurance coverage, which embody internet securities litigation protection and associated prices, share-primarily based compensation, and different non-run-price bills from GAAP revenue earlier than provision for revenue taxes.

The Company makes use of a normalized non-GAAP tax price to offer higher consistency throughout the interim reporting durations inside a given fiscal 12 months by eliminating the consequences of non-recurring and interval-particular gadgets, which may fluctuate in measurement and frequency, and which aren’t essentially reflective of the Company’s longer-time period operations. The normalized non-GAAP tax price anticipated to be utilized to every quarter of fiscal 12 months 2023 is 20.0%. The dedication of this price is predicated on the consideration of each historic and projected monetary outcomes. The Company might regulate its non-GAAP tax price as further info turns into accessible and together with another vital occasions happen that will materially have an effect on this price, akin to merger and acquisition exercise, adjustments in enterprise outlook, or different adjustments in expectations concerning tax rules.

The Company calculates free money move as whole internet money supplied by working actions, internet of money used for the additions of capitalized software program prices and gear and enhancements. The Company calculates internet debt as line of credit score much less money and money equivalents. The Company calculates non-GAAP adjusted EBITDA by excluding internet acquisition prices, amortization of acquired intangible property, impairment of property, restructuring prices, shareholder disputes and associated prices, internet of insurance coverage, which embody internet securities litigation protection and associated prices, share-primarily based compensation, and different non-run-price bills from GAAP revenue from operations after which including again amortization of capitalized software program prices and depreciation as offered inside the condensed consolidated statements of money flows. Non-GAAP adjusted EBITDA margin is calculated as non-GAAP adjusted EBITDA divided by whole revenues. The Company calculates Rule of 40 as annual income development price plus non-GAAP adjusted EBITDA margin.

The Company’s future interval steering on this launch contains changes for gadgets not indicative of the Company’s core operations. Such changes are usually anticipated to be of a nature just like these changes utilized to the Company’s historic GAAP monetary ends in the dedication of the Company’s non-GAAP diluted earnings per share. Such changes, nonetheless, could also be affected by adjustments in ongoing assumptions and judgments as to the gadgets which can be excluded within the calculation of non-GAAP adjusted internet revenue and adjusted diluted earnings per share, as described on this launch. The precise quantity and possible significance of those changes, together with internet acquisition prices, impairment of property, restructuring prices, shareholder disputes and associated prices, and different non-run-price bills, usually are not presently determinable with out unreasonable efforts, however could also be vital. These gadgets can’t be reliably quantified or forecasted as a result of mixture of their historic and anticipated variability. It is subsequently not practicable to reconcile this non-GAAP steering to essentially the most comparable GAAP measures.

About NextGen Healthcare, Inc.

NextGen Healthcare, Inc. (Nasdaq: NXGN) is a number one supplier of revolutionary expertise options. We are reimagining ambulatory healthcare with award-profitable options that allow excessive-performing practices to create more healthy communities. We associate with medical, behavioral and dental suppliers of their journey towards entire individual well being and worth-primarily based care. Our extremely built-in, clever and interoperable options transcend EHR and Practice Management to extend scientific high quality and productiveness, enrich the affected person expertise and drive superior monetary efficiency. We are on a quest to attain higher healthcare outcomes for all. Learn extra at nextgen.com, and comply with us on Facebook, Twitter, LinkedIn, YouTube and Instagram.

 

NEXTGEN HEALTHCARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In hundreds, besides per share knowledge)

(Unaudited)

 

 

Three Months Ended June 30,

 

 

2022

 

 

2021

 

Revenues:

 

 

 

 

 

 

 

Recurring

$

139,759

 

 

$

132,381

 

Software, {hardware}, and different non-recurring

 

13,543

 

 

 

13,703

 

Total revenues

 

153,302

 

 

 

146,084

 

Cost of income:

 

 

 

 

 

 

 

Recurring

 

62,244

 

 

 

57,160

 

Software, {hardware}, and different non-recurring

 

10,676

 

 

 

7,497

 

Amortization of capitalized software program prices and bought intangible property

 

7,134

 

 

 

8,084

 

Total value of income

 

80,054

 

 

 

72,741

 

Gross revenue

 

73,248

 

 

 

73,343

 

Operating bills:

 

 

 

 

 

 

 

Selling, common and administrative

 

49,034

 

 

 

48,486

 

Research and improvement prices, internet

 

21,795

 

 

 

19,321

 

Amortization of acquired intangible property

 

705

 

 

 

881

 

Impairment of property

 

524

 

 

 

382

 

Restructuring prices

 

 

 

 

539

 

Total working bills

 

72,058

 

 

 

69,609

 

Income from operations

 

1,190

 

 

 

3,734

 

Interest revenue

 

46

 

 

 

12

 

Interest expense

 

(330

)

 

 

(317

)

Other expense, internet

 

(5

)

 

 

(22

)

Income earlier than provision for (advantage of) revenue taxes

 

901

 

 

 

3,407

 

Provision for (advantage of) revenue taxes

 

(247

)

 

 

559

 

Net revenue:

$

1,148

 

 

$

2,848

 

Net revenue per share:

 

 

 

 

 

 

 

Basic

$

0.02

 

 

$

0.04

 

Diluted

$

0.02

 

 

$

0.04

 

Weighted-average shares excellent:

 

 

 

 

 

 

 

Basic

 

67,588

 

 

 

67,175

 

Diluted

 

68,283

 

 

 

67,799

 

 

NEXTGEN HEALTHCARE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In hundreds, besides per share knowledge)

(Unaudited)

 

 

June 30, 2022

 

 

March 31, 2022

 

ASSETS

 

 

 

 

 

 

 

Current property:

 

 

 

 

 

 

 

Cash and money equivalents

$

40,361

 

 

$

59,829

 

Restricted money and money equivalents

 

8,054

 

 

 

6,918

 

Accounts receivable, internet

 

77,279

 

 

 

76,057

 

Contract property

 

25,464

 

 

 

25,157

 

Income taxes receivable

 

7,367

 

 

 

6,507

 

Prepaid bills and different present property

 

34,011

 

 

 

37,102

 

Total present property

 

192,536

 

 

 

211,570

 

Equipment and enhancements, internet

 

8,326

 

 

 

9,120

 

Capitalized software program prices, internet

 

47,602

 

 

 

43,958

 

Operating lease property

 

9,707

 

 

 

11,316

 

Deferred revenue taxes, internet

 

19,187

 

 

 

19,259

 

Contract property, internet of present

 

1,729

 

 

 

1,910

 

Intangibles, internet

 

21,817

 

 

 

24,303

 

Goodwill

 

267,212

 

 

 

267,212

 

Other property

 

39,879

 

 

 

39,026

 

Total property

$

607,995

 

 

$

627,674

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Accounts payable

$

15,042

 

 

$

9,125

 

Contract liabilities

 

63,094

 

 

 

61,280

 

Accrued compensation and associated advantages

 

25,967

 

 

 

48,736

 

Income taxes payable

 

363

 

 

 

99

 

Operating lease liabilities

 

7,946

 

 

 

8,089

 

Other present liabilities

 

45,187

 

 

 

53,533

 

Total present liabilities

 

157,599

 

 

 

180,862

 

Deferred compensation

 

7,181

 

 

 

7,230

 

Operating lease liabilities, internet of present

 

9,794

 

 

 

11,934

 

Other noncurrent liabilities

 

4,562

 

 

 

4,570

 

Total liabilities

 

179,136

 

 

 

204,596

 

Commitments and contingencies

 

 

 

 

 

 

 

Shareholders’ fairness:

 

 

 

 

 

 

 

Common inventory, $0.01 par worth; licensed 100,000 shares; issued and excellent 68,064 and 67,075 shares at June 30, 2022 and March 31, 2022, respectively

 

704

 

 

 

692

 

Treasury inventory, at value, 2,318 shares and a pair of,170 shares at June 30, 2022 and March 31, 2022, respectively

 

(38,379

)

 

 

(35,874

)

Additional paid-in capital

 

337,071

 

 

 

329,917

 

Accumulated different complete loss

 

(1,937

)

 

 

(1,909

)

Retained earnings

 

131,400

 

 

 

130,252

 

Total shareholders’ fairness

 

428,859

 

 

 

423,078

 

Total liabilities and shareholders’ fairness

$

607,995

$

627,674

 

 

NEXTGEN HEALTHCARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In hundreds)

(Unaudited)

 

 

Three Months Ended June 30,

 

 

2022

 

 

2021

 

Cash flows from working actions:

 

 

 

 

 

 

 

Net revenue

$

1,148

 

 

$

2,848

 

Adjustments to reconcile internet revenue to internet money supplied by working actions:

 

 

 

 

 

 

 

Amortization of capitalized software program prices

 

5,354

 

 

 

5,866

 

Amortization of debt issuance prices

 

127

 

 

 

127

 

Amortization of different intangibles

 

2,486

 

 

 

3,099

 

Deferred revenue taxes

 

 

 

 

28

 

Depreciation

 

1,292

 

 

 

2,108

 

Excess tax profit from share-primarily based compensation

 

(411

)

 

 

(176

)

Impairment of property

 

524

 

 

 

382

 

Loss on disposal of apparatus and enhancements

 

41

 

 

 

38

 

Loss on overseas forex change charges

 

6

 

 

 

 

Non-cash working lease prices

 

914

 

 

 

1,628

 

Provision for unhealthy money owed

 

241

 

 

 

639

 

Share-based compensation

 

8,766

 

 

 

6,412

 

Changes in property and liabilities:

 

 

 

 

 

 

 

Accounts receivable

 

(1,464

)

 

 

3,407

 

Contract property

 

(126

)

 

 

(919

)

Accounts payable

 

5,829

 

 

 

(4,334

)

Contract liabilities

 

1,814

 

 

 

(582

)

Accrued compensation and associated advantages

 

(22,668

)

 

 

(21,964

)

Income taxes

 

(191

)

 

 

464

 

Deferred compensation

 

(49

)

 

 

743

 

Operating lease liabilities

 

(2,085

)

 

 

(2,676

)

Other property and liabilities

 

(6,193

)

 

 

3,175

 

Net money supplied by (utilized in) working actions

 

(4,645

)

 

 

313

 

Cash flows from investing actions:

 

 

 

 

 

 

 

Additions to capitalized software program prices

 

(8,998

)

 

 

(5,538

)

Additions to gear and enhancements

 

(455

)

 

 

(1,002

)

Net money utilized in investing actions

 

(9,453

)

 

 

(6,540

)

Cash flows from financing actions:

 

 

 

 

 

 

 

Proceeds from issuance of shares below worker plans

 

2,068

 

 

 

671

 

Repurchase of widespread inventory

 

(2,505

)

 

 

 

Payments for taxes associated to internet share settlement of fairness awards

 

(3,668

)

 

 

(2,969

)

Net money utilized in financing actions

 

(4,105

)

 

 

(2,298

)

Effect of change price adjustments on money, money equivalents, and restricted money

 

(129

)

 

 

 

Net lower in money, money equivalents, and restricted money

 

(18,332

)

 

 

(8,525

)

Cash, money equivalents, and restricted money at starting of interval

 

66,747

 

 

 

78,575

 

Cash, money equivalents, and restricted money at finish of interval

$

48,415

 

 

$

70,050

 

 

NEXTGEN HEALTHCARE, INC.

SUPPLEMENTAL FINANCIAL INFORMATION

(In hundreds)

 

The following desk presents our revenues disaggregated by our main income classes and by prevalence:

 

 

Three Months Ended June 30,

 

 

2022

 

 

2021

 

Recurring revenues:

 

 

 

 

 

 

 

Subscription companies

$

42,759

 

 

$

38,284

 

Support and upkeep

 

39,138

 

 

 

38,486

 

Managed companies *

 

30,645

 

 

 

27,908

 

Transactional and knowledge companies *

 

27,217

 

 

 

27,703

 

Total recurring revenues

 

139,759

 

 

 

132,381

 

 

 

 

 

 

 

 

 

Software, {hardware}, and different non-recurring revenues:

 

 

 

 

 

 

 

Software license and {hardware}

 

6,199

 

 

 

7,214

 

Other non-recurring companies

 

7,344

 

 

 

6,489

 

Total software program, {hardware} and different non-recurring revenues

 

13,543

 

 

 

13,703

 

 

 

 

 

 

 

 

 

Total revenues

$

153,302

 

 

$

146,084

 

 

 

 

 

 

 

 

 

Recurring revenues as a proportion of whole revenues

 

91.2

%

 

 

90.6

%

* Beginning in fiscal 12 months 2023, to align the presentation of disaggregated income with the way through which administration evaluations such info, the presentation of disaggregated revenues by main income classes was revised to reclassify revenues associated to affected person pay companies and sure different companies from the managed companies class into the transactional and knowledge companies class, which changed the prior EDI and knowledge companies class. The prior interval presentation of revenues disaggregated by main income classes and by prevalence within the tables beneath have been reclassified to adapt with present interval presentation.

 

Refer to our Investor Relations web site at http://investor.nextgen.com for the revised tables of income disaggregated by main income classes and by prevalence for every interim reporting interval inside the fiscal years ended March 31, 2022 and 2021.

 

 

NEXTGEN HEALTHCARE, INC.

NON-GAAP FINANCIAL MEASURES

(In hundreds, besides per share knowledge)

 

RECONCILIATION OF NON-GAAP DILUTED EARNINGS PER SHARE

 

 

Three Months Ended June 30,

 

 

2022

 

 

2021

 

Income earlier than provision for revenue taxes – GAAP

$

901

 

 

$

3,407

 

Non-GAAP changes:

 

 

 

 

 

 

 

Amortization of acquired intangible property

 

2,486

 

 

 

3,099

 

Amortization of deferred debt issuance prices

 

127

 

 

 

127

 

Impairment of property

 

524

 

 

 

382

 

Restructuring prices

 

 

 

 

539

 

Shareholder disputes and associated prices, internet of insurance coverage

 

121

 

 

 

4,858

 

Share-based compensation

 

8,766

 

 

 

6,412

 

Other non-run-price bills*

 

407

 

 

 

2,719

 

Total changes to GAAP revenue earlier than provision for revenue taxes:

 

12,431

 

 

 

18,136

 

Income earlier than provision for revenue taxes – Non-GAAP

 

13,332

 

 

 

21,543

 

Provision for revenue taxes

 

2,666

 

 

 

4,309

 

Net revenue – Non-GAAP

$

10,666

 

 

$

17,234

 

Diluted internet revenue per share – Non-GAAP

$

0.16

 

 

$

0.25

 

Weighted-average shares excellent (diluted):

 

68,283

 

 

 

67,799

 

 

 

 

 

 

 

 

 

* Other non-run-price bills for the three months ended June 30, 2022 include $257 extra lease-associated expense for vacated amenities and $150 {of professional} companies prices not associated to core operations.

 

Other non-run-price bills for the three months ended June 30, 2021 consist primarily of $470 extra lease-associated expense for vacated amenities, lease termination prices, and different prices, together with retention bonuses, associated to the restructuring plan and $2,249 of severance and different prices associated to the departure of the previous Chief Executive Officer.

 

 

RECONCILIATION OF FREE CASH FLOW

 

Three Months Ended June 30,

 

 

2022

 

 

2021

 

Net money supplied by (utilized in) working actions

$

(4,645

)

 

$

313

 

Additions to capitalized software program prices

 

(8,998

)

 

 

(5,538

)

Additions to gear and enhancements

 

(455

)

 

 

(1,002

)

Free money move

$

(14,098

)

 

$

(6,227

)

 

NEXTGEN HEALTHCARE, INC.

NON-GAAP FINANCIAL MEASURES

(In hundreds)

 

RECONCILIATION OF ADJUSTED EBITDA

 

 

Three Months Ended June 30,

 

 

2022

 

 

2021

 

Income from operations – GAAP

$

1,190

 

 

$

3,734

 

Non-GAAP changes:

 

 

 

 

 

 

 

Amortization of acquired intangible property

 

2,486

 

 

 

3,099

 

Impairment of property

 

524

 

 

 

382

 

Restructuring prices

 

 

 

 

539

 

Shareholder disputes and associated prices, internet of insurance coverage

 

121

 

 

 

4,858

 

Share-based compensation

 

8,766

 

 

 

6,412

 

Other non-run-price bills*

 

407

 

 

 

2,719

 

Total changes to GAAP revenue from operations

 

12,304

 

 

 

18,009

 

Income from operations – Non-GAAP

 

13,494

 

 

 

21,743

 

Amortization of capitalized software program prices

 

5,354

 

 

 

5,866

 

Depreciation

 

1,292

 

 

 

2,108

 

Depreciation and Amortization – Non-GAAP

 

6,646

 

 

 

7,974

 

Adjusted EBITDA – Non-GAAP

$

20,140

 

 

$

29,717

 

Total revenues

$

153,302

 

 

$

146,084

 

Adjusted EBITDA margin – Non-GAAP

 

13.1

%

 

 

20.3

%

 

 

 

 

 

 

 

 

* Other non-run-price bills for the three months ended June 30, 2022 include $257 extra lease-associated expense for vacated amenities and $150 {of professional} companies prices not associated to core operations.

 

Other non-run-price bills for the three months ended June 30, 2021 consist primarily of $470 extra lease-associated expense for vacated amenities, lease termination prices, and different prices, together with retention bonuses, associated to the restructuring plan and $2,249 of severance and different prices associated to the departure of the previous Chief Executive Officer.

 

A reconciliation of adjusted EBITDA for every interim reporting interval inside the fiscal years ended March 31, 2022 and 2021 could also be accessed by way of our Investor Relations web site at http://investor.nextgen.com.

Contacts

Media Relations ContactTami Andrade(949) [email protected]

Investor Relations ContactMatthew Scalo(415) [email protected]

https://wire19.com/nextgen-healthcare-reports-fiscal-2023-first-quarter-results/

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