NextGen Healthcare, Inc. (Nasdaq: NXGN), a leading provider of innovative, cloud-based healthcare technology solutions, today announced its operating results for the fiscal fourth quarter and year ended March 31, 2023.
Fiscal 2023 Fourth Quarter Highlights
- Total revenue was $178.6 million compared to $151.3 million for the same period a year ago, an increase of 18.0%.
- Recurring revenue was $161.9 million compared to $137.2 million for the same period a year ago, an increase of 18.0%.
- Non-recurring revenue was $16.6 million compared to $14.0 million for the same period a year ago, an increase of 18.4%.
- Fully diluted net loss per share was $0.38, which includes an accrual for the settlement of the DOJ matter, compared to $0.01 net income per share for the same period a year ago.
- On a non-GAAP basis, fully diluted earnings per share was $0.31 compared to $0.19 for the same period a year ago.
- Adjusted EBITDA was $33.7 million compared to $23.7 million for the same period a year ago.
- Bookings, which reflects annual contract value excluding renewals, were $45.0 million and included several deals greater than $1.0 million.
Fiscal 2023 Full Year Highlights
- Total revenue was $653.2 million compared to $596.4 million for the same period a year ago, an increase of 9.5%.
- Fully diluted net loss per share was $0.04 compared to a net income per share of $0.02 for the same period a year ago.
- On a non-GAAP basis, fully diluted earnings per share was $0.98 compared to $0.98 for the same period a year ago.
- Adjusted EBITDA was $111.7 million compared to $114.2 million for the same period a year ago.
- Bookings, which reflects annual contract value excluding renewals, were $166.5 million compared to $152.5 million for the same period a year ago.
“These solid results put us one step closer to achieving our long-term goal of double-digit revenue growth, operating leverage, and disciplined capital management,” said David Sides, president and chief executive officer of NextGen Healthcare. “We’re living our mission to advance ambulatory care with innovations for healthier communities, and find ourselves in a great position to deliver another year of balanced growth.”
Introducing Fiscal 2024 Financial Guidance
- Revenue is expected to be in the range of $712 million to $722 million.
- Adjusted EBITDA is expected to be in the range of $125 million to $131 million.
- Non-GAAP earnings per share is expected to be in the range of $1.04 to $1.11.
Conference Call Information
NextGen Healthcare will host a conference call today at 5:00 p.m. EDT to discuss operating results from its fiscal 2023 fourth quarter and full year. Shareholders and interested participants may listen to a live broadcast of the conference call by dialing 800-343-4136 or 203-518-9843 for international callers and referencing participant code NXGNQ423 approximately 15 minutes prior to the call. A recording of the live webcast will be available on investor.nextgen.com after the call. It will be archived for 90 days.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our fiscal year 2024 outlook, financial and operating results and statements related to the settlement of the DOJ matter, strategic priorities, growth initiatives and expected capital expenditures. These forward-looking statements are based on the current beliefs, expectations, and assumptions of our management with respect to future events, only speak as of the date that they are made and are subject to significant risks and uncertainties. Such statements can be identified by the use of words such as “positioned,” “proposed,” “potential,” “project,” “expect,” “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “estimate, “strategy,” “expectations,” “future,” “likely,” “may,” “should,” “will,” and similar terms, although not all forward-looking statements contain such words or expressions. Actual results could differ significantly from those set forth in the forward-looking statements.
Risks and uncertainties exist that may cause the results to differ materially from those set forth in these forward-looking statements, including but not limited to: the final outcome of the DOJ investigation, including our ability to negotiate a final settlement agreement with the DOJ; potential additional investigations and proceedings from governmental entities or third parties related to the same or similar conduct; cybersecurity and data protection risks and related liabilities; potential litigation involving us; a shifting revenue mix that may impact gross margin; changes in laws and regulations applicable to our business; changes in market conditions and receptivity to our services and offerings; impact of strategic actions, including acquisitions and dispositions; management of and our success in integrating acquired businesses; our ability to maintain and expand our business with existing clients or effectively transition clients to newer products; our ability to attract new partners and successfully capture new opportunities; our ability to anticipate or respond quickly to market changes, execute our strategy and manage growth; the development by competitors of new or superior technologies; the timing, cost and success or failure of new product and service introductions, development and product upgrade releases; disruptions caused by acquisitions of companies, products, or technologies; and general economic conditions. A significant portion of the Company's quarterly sales of software product licenses and computer hardware is concluded in the last month of a fiscal quarter, generally with a concentration of such revenues earned in the final ten business days of that month. Due to these and other factors, the Company's revenues and operating results are very difficult to forecast. A major portion of the Company's costs and expenses are of a fixed nature and, accordingly, a shortfall or decline in quarterly and/or annual revenues typically results in lower profitability or losses. As a result, comparison of the Company's period-to-period financial performance is not necessarily meaningful and should not be relied upon as an indicator of future performance.
Additional discussion of these and other risks, uncertainties and factors that could affect our business and financial results is included in the reports on Forms 10-K, 10-Q and 8-K and in other filings we make with the Securities and Exchange Commission from time to time. These forward-looking statements speak only as of the date hereof. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
USE OF NON-GAAP FINANCIAL MEASURES
This news release contains certain non-GAAP (Generally Accepted Accounting Principles) financial measures, which are provided only as supplemental information. Investors should consider these non-GAAP financial measures only in conjunction with the comparable GAAP financial measures. These non-GAAP measures are not in accordance with or a substitute for U.S. GAAP. Pursuant to the requirements of Regulation G, the Company has provided a reconciliation of non-GAAP financial measures to the most directly comparable financial measure in the accompanying financial tables. Other companies may calculate non-GAAP measures differently than NextGen Healthcare, Inc., which limits comparability between companies. The Company believes that its presentation of non-GAAP diluted earnings per share provides useful supplemental information to investors and management regarding the Company's financial condition and results. The presentation of non-GAAP financial information is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP.
The Company calculates non-GAAP diluted earnings per share by excluding net acquisition costs, amortization of acquired intangible assets, amortization of deferred debt issuance costs, gain on disposition of Commercial Dental assets, impairment of assets, restructuring costs, shareholder disputes and related costs, net of insurance, which include net securities litigation defense, proxy contest, other regulatory and litigation matters, and related costs, share-based compensation, and other non-run-rate expenses from GAAP income before provision for income taxes.
The Company utilizes a normalized non-GAAP tax rate to provide better consistency across the interim reporting periods within a given fiscal year by eliminating the effects of non-recurring and period-specific items, which can vary in size and frequency, and which are not necessarily reflective of the Company’s longer-term operations. The normalized non-GAAP tax rate applied to each quarter of fiscal year 2023 was 20.0%. The normalized non-GAAP tax rate expected to be applied to each quarter of fiscal year 2024 is 21.0%. The determination of this rate is based on the consideration of both historic and projected financial results. The Company may adjust its non-GAAP tax rate as additional information becomes available and in conjunction with any other significant events occur that may materially affect this rate, such as merger and acquisition activity, changes in business outlook, or other changes in expectations regarding tax regulations.
The Company calculates free cash flow as total net cash provided by operating activities, net of cash used for the additions of capitalized software costs and equipment and improvements. The Company calculates net debt as line of credit and convertible senior notes less cash and cash equivalents and marketable securities. The Company calculates non-GAAP adjusted EBITDA by excluding net acquisition costs, amortization of acquired intangible assets, impairment of assets, restructuring costs, shareholder disputes and related costs, net of insurance, which include net securities litigation defense, proxy contest, other regulatory and litigation matters, and related costs, share-based compensation, and other non-run-rate expenses from GAAP income from operations and then adding back amortization of capitalized software costs and depreciation as presented within the condensed consolidated statements of cash flows. Non-GAAP adjusted EBITDA margin is calculated as non-GAAP adjusted EBITDA divided by total revenues. The Company calculates Rule of 40 as annual revenue growth rate plus non-GAAP adjusted EBITDA margin.
The Company’s future period guidance in this release includes adjustments for items not indicative of the Company’s core operations. Such adjustments are generally expected to be of a nature similar to those adjustments applied to the Company’s historic GAAP financial results in the determination of the Company’s non-GAAP diluted earnings per share. Such adjustments, however, may be affected by changes in ongoing assumptions and judgments as to the items that are excluded in the calculation of non-GAAP adjusted net income and adjusted diluted earnings per share, as described in this release. The exact amount and probable significance of these adjustments, including net acquisition costs, impairment of assets, restructuring costs, shareholder disputes and related costs, which include net securities litigation defense, proxy contest, other regulatory and litigation matters, and related costs, and other non-run-rate expenses, are not currently determinable without unreasonable efforts, but may be significant. These items cannot be reliably quantified or forecasted due to the combination of their historic and expected variability. It is therefore not practicable to reconcile this non-GAAP guidance to the most comparable GAAP measures.
About NextGen Healthcare, Inc.
NextGen Healthcare, Inc. (Nasdaq: NXGN) is a leading provider of innovative healthcare technology solutions. We are reimagining ambulatory healthcare with award-winning solutions that enable high-performing practices to create healthier communities. We partner with medical, behavioral and dental providers in their journey toward whole person health and value-based care. Our highly integrated, intelligent and interoperable solutions go beyond EHR and Practice Management to increase clinical quality and productivity, enrich the patient experience and drive superior financial performance. We are on a quest to achieve better healthcare outcomes for all. Learn more at nextgen.com, and follow us on Facebook, Twitter, LinkedIn, YouTube and Instagram.
NEXTGEN HEALTHCARE, INC.
|
|||||||||||||||
|
Three Months Ended March 31, |
|
|
Fiscal Year Ended March 31, |
|
||||||||||
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
||||
Recurring |
$ |
161,936 |
|
|
$ |
137,227 |
|
|
$ |
593,918 |
|
|
$ |
539,713 |
|
Software, hardware, and other non-recurring |
|
16,614 |
|
|
|
14,032 |
|
|
|
59,254 |
|
|
|
56,637 |
|
Total revenues |
|
178,550 |
|
|
|
151,259 |
|
|
|
653,172 |
|
|
|
596,350 |
|
Cost of revenue: |
|
|
|
|
|
|
|
|
|
|
|
||||
Recurring |
|
74,861 |
|
|
|
60,169 |
|
|
|
269,191 |
|
|
|
232,481 |
|
Software, hardware, and other non-recurring |
|
11,893 |
|
|
|
7,949 |
|
|
|
44,881 |
|
|
|
31,034 |
|
Amortization of capitalized software costs and acquired intangible assets |
|
7,276 |
|
|
|
7,643 |
|
|
|
27,941 |
|
|
|
31,889 |
|
Total cost of revenue |
|
94,030 |
|
|
|
75,761 |
|
|
|
342,013 |
|
|
|
295,404 |
|
Gross profit |
|
84,520 |
|
|
|
75,498 |
|
|
|
311,159 |
|
|
|
300,946 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
||||
Selling, general and administrative |
|
83,327 |
|
|
|
50,046 |
|
|
|
223,424 |
|
|
|
209,661 |
|
Research and development costs, net |
|
20,027 |
|
|
|
19,428 |
|
|
|
82,300 |
|
|
|
76,657 |
|
Amortization of acquired intangible assets |
|
1,336 |
|
|
|
882 |
|
|
|
3,665 |
|
|
|
3,525 |
|
Impairment of assets |
|
1,587 |
|
|
|
2,329 |
|
|
|
3,163 |
|
|
|
3,906 |
|
Restructuring costs |
|
2,152 |
|
|
|
— |
|
|
|
2,473 |
|
|
|
539 |
|
Total operating expenses |
|
108,429 |
|
|
|
72,685 |
|
|
|
315,025 |
|
|
|
294,288 |
|
Income (loss) from operations |
|
(23,909 |
) |
|
|
2,813 |
|
|
|
(3,866 |
) |
|
|
6,658 |
|
Interest income |
|
1,891 |
|
|
|
22 |
|
|
|
3,541 |
|
|
|
101 |
|
Interest expense |
|
(3,404 |
) |
|
|
(541 |
) |
|
|
(6,298 |
) |
|
|
(1,499 |
) |
Other income (expense), net |
|
661 |
|
|
|
(21 |
) |
|
|
10,927 |
|
|
|
(64 |
) |
Income (loss) before provision for income taxes |
|
(24,761 |
) |
|
|
2,273 |
|
|
|
4,304 |
|
|
|
5,196 |
|
Provision for income taxes |
|
479 |
|
|
|
1,925 |
|
|
|
6,958 |
|
|
|
3,578 |
|
Net income (loss) |
$ |
(25,240 |
) |
|
$ |
348 |
|
|
$ |
(2,654 |
) |
|
$ |
1,618 |
|
Net income (loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
$ |
(0.38 |
) |
|
$ |
0.01 |
|
|
$ |
(0.04 |
) |
|
$ |
0.02 |
|
Diluted |
$ |
(0.38 |
) |
|
$ |
0.01 |
|
|
$ |
(0.04 |
) |
|
$ |
0.02 |
|
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
66,049 |
|
|
|
66,929 |
|
|
|
67,005 |
|
|
|
67,370 |
|
Diluted |
|
66,049 |
|
|
|
67,547 |
|
|
|
67,005 |
|
|
|
67,788 |
|
NEXTGEN HEALTHCARE, INC.
|
||||||||
|
|
March 31, 2023 |
|
|
March 31, 2022 |
|
||
ASSETS |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
98,719 |
|
|
$ |
59,829 |
|
Restricted cash and cash equivalents |
|
|
7,269 |
|
|
|
6,918 |
|
Marketable securities |
|
|
139,612 |
|
|
|
— |
|
Accounts receivable, net |
|
|
88,498 |
|
|
|
76,057 |
|
Contract assets |
|
|
19,561 |
|
|
|
25,157 |
|
Income taxes receivable |
|
|
5,248 |
|
|
|
6,507 |
|
Prepaid expenses and other current assets |
|
|
42,916 |
|
|
|
37,102 |
|
Total current assets |
|
|
401,823 |
|
|
|
211,570 |
|
Equipment and improvements, net |
|
|
6,421 |
|
|
|
9,120 |
|
Capitalized software costs, net |
|
|
54,516 |
|
|
|
43,958 |
|
Operating lease assets |
|
|
3,335 |
|
|
|
11,316 |
|
Deferred income taxes, net |
|
|
29,472 |
|
|
|
19,259 |
|
Contract assets, net of current |
|
|
5,572 |
|
|
|
1,910 |
|
Intangibles, net |
|
|
28,968 |
|
|
|
24,303 |
|
Goodwill |
|
|
321,756 |
|
|
|
267,212 |
|
Other assets |
|
|
44,238 |
|
|
|
39,026 |
|
Total assets |
|
$ |
896,101 |
|
|
$ |
627,674 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
12,022 |
|
|
$ |
9,125 |
|
Contract liabilities |
|
|
61,601 |
|
|
|
61,280 |
|
Accrued compensation and related benefits |
|
|
36,241 |
|
|
|
48,736 |
|
Income taxes payable |
|
|
622 |
|
|
|
99 |
|
Operating lease liabilities |
|
|
3,826 |
|
|
|
8,089 |
|
Other current liabilities |
|
|
83,799 |
|
|
|
53,533 |
|
Total current liabilities |
|
|
198,111 |
|
|
|
180,862 |
|
Contract liabilities, net of current |
|
|
10,310 |
|
|
|
— |
|
Deferred compensation |
|
|
8,033 |
|
|
|
7,230 |
|
Convertible senior notes, net, noncurrent |
|
|
266,843 |
|
|
|
— |
|
Operating lease liabilities, net of current |
|
|
4,095 |
|
|
|
11,934 |
|
Other noncurrent liabilities |
|
|
8,274 |
|
|
|
4,570 |
|
Total liabilities |
|
|
495,666 |
|
|
|
204,596 |
|
Commitments and contingencies |
|
|
|
|
|
|
||
Shareholders' equity: |
|
|
|
|
|
|
||
Common stock, $0.01 par value; authorized 100,000 shares; 70,875 shares and 69,245 shares issued at March 31, 2023 and March 31, 2022, respectively; 66,026 shares and 67,075 shares outstanding at March 31, 2023 and March 31, 2022, respectively |
|
|
709 |
|
|
|
692 |
|
Treasury stock, at cost, 4,849 shares and 2,170 shares at March 31, 2023 and March 31, 2022, respectively |
|
|
(85,752 |
) |
|
|
(35,874 |
) |
Additional paid-in capital |
|
|
359,342 |
|
|
|
329,917 |
|
Accumulated other comprehensive loss |
|
|
(1,462 |
) |
|
|
(1,909 |
) |
Retained earnings |
|
|
127,598 |
|
|
|
130,252 |
|
Total shareholders' equity |
|
|
400,435 |
|
|
|
423,078 |
|
Total liabilities and shareholders' equity |
$ |
896,101 |
$ |
627,674 |
||||
NEXTGEN HEALTHCARE, INC.
|
|||||||||||||||
|
Three Months Ended March 31, |
|
|
Fiscal Year Ended March 31, |
|
||||||||||
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
||||
Net income (loss) |
$ |
(25,240 |
) |
|
$ |
348 |
|
|
$ |
(2,654 |
) |
|
$ |
1,618 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
||||
Amortization of capitalized software costs |
|
6,168 |
|
|
|
5,424 |
|
|
|
22,571 |
|
|
|
23,016 |
|
Amortization of debt issuance costs |
|
381 |
|
|
|
127 |
|
|
|
834 |
|
|
|
508 |
|
Amortization of other intangibles |
|
2,445 |
|
|
|
3,099 |
|
|
|
9,035 |
|
|
|
12,397 |
|
Net amortization (accretion) of premiums/discounts on marketable securities |
|
(476 |
) |
|
|
— |
|
|
|
(476 |
) |
|
|
— |
|
Change in fair value of contingent consideration |
|
200 |
|
|
|
— |
|
|
|
100 |
|
|
|
7 |
|
Deferred income taxes |
|
(9,539 |
) |
|
|
180 |
|
|
|
(9,076 |
) |
|
|
215 |
|
Depreciation |
|
1,247 |
|
|
|
1,496 |
|
|
|
5,088 |
|
|
|
6,902 |
|
Excess tax deficiency (benefit) from share-based compensation |
|
(374 |
) |
|
|
(191 |
) |
|
|
(1,052 |
) |
|
|
643 |
|
Impairment of assets |
|
1,587 |
|
|
|
2,329 |
|
|
|
3,163 |
|
|
|
3,906 |
|
Loss on disposal of equipment and improvements |
|
16 |
|
|
|
20 |
|
|
|
90 |
|
|
|
97 |
|
Loss on foreign currency exchange rates |
|
30 |
|
|
|
— |
|
|
|
17 |
|
|
|
— |
|
Non-cash operating lease costs |
|
524 |
|
|
|
1,277 |
|
|
|
2,716 |
|
|
|
5,732 |
|
Provision for bad debts |
|
814 |
|
|
|
773 |
|
|
|
1,914 |
|
|
|
1,915 |
|
Restructuring costs, net of amounts paid |
|
1,990 |
|
|
|
— |
|
|
|
1,990 |
|
|
|
— |
|
Share-based compensation |
|
6,942 |
|
|
|
7,867 |
|
|
|
33,458 |
|
|
|
26,552 |
|
Gain on disposition of Commercial Dental assets |
|
— |
|
|
|
— |
|
|
|
(10,296 |
) |
|
|
— |
|
Changes in assets and liabilities, net of amounts acquired: |
|
|
|
|
|
|
|
|
|
|
|
||||
Accounts receivable |
|
(9,754 |
) |
|
|
(6,750 |
) |
|
|
(12,379 |
) |
|
|
(431 |
) |
Contract assets |
|
(1,259 |
) |
|
|
(824 |
) |
|
|
5,930 |
|
|
|
(5,610 |
) |
Accounts payable |
|
(3,784 |
) |
|
|
(5,921 |
) |
|
|
333 |
|
|
|
(2,329 |
) |
Contract liabilities |
|
(1,798 |
) |
|
|
6,401 |
|
|
|
(6,739 |
) |
|
|
8,417 |
|
Accrued compensation and related benefits |
|
10,449 |
|
|
|
6,717 |
|
|
|
(13,142 |
) |
|
|
(1,638 |
) |
Income taxes |
|
1,968 |
|
|
|
1,564 |
|
|
|
2,790 |
|
|
|
(5,650 |
) |
Deferred compensation |
|
464 |
|
|
|
(441 |
) |
|
|
803 |
|
|
|
610 |
|
Operating lease liabilities |
|
(1,383 |
) |
|
|
(2,672 |
) |
|
|
(8,808 |
) |
|
|
(12,734 |
) |
Other assets and liabilities |
|
26,065 |
|
|
|
(3,914 |
) |
|
|
17,450 |
|
|
|
(10,598 |
) |
Net cash provided by operating activities |
|
7,683 |
|
|
|
16,909 |
|
|
|
43,660 |
|
|
|
53,545 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
||||
Additions to capitalized software costs |
|
(8,081 |
) |
|
|
(7,663 |
) |
|
|
(34,987 |
) |
|
|
(25,500 |
) |
Additions to equipment and improvements |
|
(219 |
) |
|
|
(545 |
) |
|
|
(2,277 |
) |
|
|
(2,582 |
) |
Payments for acquisitions, net of cash acquired |
|
(3,851 |
) |
|
|
— |
|
|
|
(51,302 |
) |
|
|
— |
|
Proceeds from disposition of Commercial Dental assets |
|
— |
|
|
|
— |
|
|
|
11,253 |
|
|
|
— |
|
Proceeds from sales of marketable securities |
|
506 |
|
|
|
— |
|
|
|
506 |
|
|
|
— |
|
Purchases of marketable securities |
|
(140,087 |
) |
|
|
— |
|
|
|
(140,087 |
) |
|
|
— |
|
Net cash used in investing activities |
|
(151,732 |
) |
|
|
(8,208 |
) |
|
|
(216,894 |
) |
|
|
(28,082 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
||||
Proceeds from convertible senior notes |
|
— |
|
|
|
— |
|
|
|
275,000 |
|
|
|
— |
|
Proceeds from line of credit |
|
— |
|
|
|
— |
|
|
|
50,000 |
|
|
|
— |
|
Repayments on line of credit |
|
— |
|
|
|
— |
|
|
|
(50,000 |
) |
|
|
— |
|
Payment of debt issuance costs |
|
— |
|
|
|
— |
|
|
|
(8,483 |
) |
|
|
— |
|
Proceeds from issuance of shares under employee plans |
|
1,440 |
|
|
|
4,137 |
|
|
|
6,835 |
|
|
|
5,014 |
|
Repurchase of common stock |
|
— |
|
|
|
— |
|
|
|
(49,878 |
) |
|
|
(35,874 |
) |
Payment of contingent consideration related to acquisitions |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(540 |
) |
Payments for taxes related to net share settlement of equity awards |
|
(874 |
) |
|
|
(441 |
) |
|
|
(10,851 |
) |
|
|
(5,891 |
) |
Net cash provided by (used in) financing activities |
|
566 |
|
|
|
3,696 |
|
|
|
212,623 |
|
|
|
(37,291 |
) |
Effect of exchange rate changes on cash and cash equivalents |
|
1 |
|
|
|
— |
|
|
|
(148 |
) |
|
|
— |
|
Net increase (decrease) in cash, cash equivalents, and restricted cash |
|
(143,482 |
) |
|
|
12,397 |
|
|
|
39,241 |
|
|
|
(11,828 |
) |
Cash, cash equivalents, and restricted cash at beginning of period |
|
249,470 |
|
|
|
54,350 |
|
|
|
66,747 |
|
|
|
78,575 |
|
Cash, cash equivalents, and restricted cash at end of period |
$ |
105,988 |
|
|
$ |
66,747 |
|
|
$ |
105,988 |
|
|
$ |
66,747 |
|
NEXTGEN HEALTHCARE, INC.
|
|||||||||||||||
The following table presents our revenues disaggregated by our major revenue categories and by occurrence: |
|||||||||||||||
|
Three Months Ended March 31, |
|
|
Fiscal Year Ended March 31, |
|
||||||||||
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Recurring revenues: |
|
|
|
|
|
|
|
|
|
|
|
||||
Subscription services |
$ |
52,022 |
|
|
$ |
42,055 |
|
|
$ |
184,047 |
|
|
$ |
162,636 |
|
Support and maintenance |
|
38,850 |
|
|
|
39,887 |
|
|
|
153,520 |
|
|
|
155,623 |
|
Managed services |
|
34,452 |
|
|
|
27,741 |
|
|
|
129,115 |
|
|
|
111,377 |
|
Transactional and data services |
|
36,612 |
|
|
|
27,544 |
|
|
|
127,236 |
|
|
|
110,077 |
|
Total recurring revenues |
|
161,936 |
|
|
|
137,227 |
|
|
|
593,918 |
|
|
|
539,713 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Software, hardware, and other non-recurring revenues: |
|
|
|
|
|
|
|
|
|
|
|
||||
Software license and hardware |
|
8,487 |
|
|
|
7,145 |
|
|
|
27,860 |
|
|
|
31,347 |
|
Other non-recurring services |
|
8,127 |
|
|
|
6,887 |
|
|
|
31,394 |
|
|
|
25,290 |
|
Total software, hardware and other non-recurring revenues |
|
16,614 |
|
|
|
14,032 |
|
|
|
59,254 |
|
|
|
56,637 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total revenues |
$ |
178,550 |
|
|
$ |
151,259 |
|
|
$ |
653,172 |
|
|
$ |
596,350 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Recurring revenues as a percentage of total revenues |
|
90.7 |
% |
|
|
90.7 |
% |
|
|
90.9 |
% |
|
|
90.5 |
% |
NEXTGEN HEALTHCARE, INC.
|
|||||||||||||||
RECONCILIATION OF NON-GAAP DILUTED EARNINGS PER SHARE |
|||||||||||||||
|
Three Months Ended March 31, |
|
|
Fiscal Year Ended March 31, |
|
||||||||||
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Income before provision for income taxes - GAAP |
$ |
(24,761 |
) |
|
$ |
2,273 |
|
|
$ |
4,304 |
|
|
$ |
5,196 |
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
||||
Acquisition costs, net |
|
832 |
|
|
|
— |
|
|
|
2,345 |
|
|
|
— |
|
Amortization of acquired intangible assets |
|
2,445 |
|
|
|
3,099 |
|
|
|
9,035 |
|
|
|
12,397 |
|
Amortization of deferred debt issuance costs |
|
381 |
|
|
|
127 |
|
|
|
834 |
|
|
|
508 |
|
Gain on disposition of Commercial Dental assets |
|
— |
|
|
|
— |
|
|
|
(10,296 |
) |
|
|
— |
|
Impairment of assets |
|
1,587 |
|
|
|
2,329 |
|
|
|
3,163 |
|
|
|
3,906 |
|
Restructuring costs |
|
2,152 |
|
|
|
— |
|
|
|
2,473 |
|
|
|
539 |
|
Shareholder disputes, other regulatory and litigation matters, and related costs, net of insurance* |
|
36,026 |
|
|
|
531 |
|
|
|
36,513 |
|
|
|
29,747 |
|
Share-based compensation |
|
6,942 |
|
|
|
7,867 |
|
|
|
33,458 |
|
|
|
26,552 |
|
Other non-run-rate expenses** |
|
160 |
|
|
|
107 |
|
|
|
939 |
|
|
|
4,486 |
|
Total adjustments to GAAP income before provision for income taxes: |
|
50,525 |
|
|
|
14,060 |
|
|
|
78,464 |
|
|
|
78,135 |
|
Income before provision for income taxes - Non-GAAP |
|
25,764 |
|
|
|
16,333 |
|
|
|
82,768 |
|
|
|
83,331 |
|
Provision for income taxes |
|
5,153 |
|
|
|
3,266 |
|
|
|
16,554 |
|
|
|
16,666 |
|
Net income - Non-GAAP |
$ |
20,611 |
|
|
$ |
13,067 |
|
|
$ |
66,214 |
|
|
$ |
66,665 |
|
Diluted net income per share - Non-GAAP |
$ |
0.31 |
|
|
$ |
0.19 |
|
|
$ |
0.98 |
|
|
$ |
0.98 |
|
Weighted-average shares outstanding (diluted): |
|
66,561 |
|
|
|
67,547 |
|
|
|
67,647 |
|
|
|
67,788 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
* Includes $35,095 of legal settlement and related costs associated with the DOJ investigation regulatory matter.
|
|
||||||||||||||
RECONCILIATION OF FREE CASH FLOW |
|||||||||||||||
|
Three Months Ended March 31, |
|
|
Fiscal Year Ended March 31, |
|
||||||||||
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Net cash provided by operating activities |
$ |
7,683 |
|
|
$ |
16,909 |
|
|
$ |
43,660 |
|
|
$ |
53,545 |
|
Additions to capitalized software costs |
|
(8,081 |
) |
|
|
(7,663 |
) |
|
|
(34,987 |
) |
|
|
(25,500 |
) |
Additions to equipment and improvements |
|
(219 |
) |
|
|
(545 |
) |
|
|
(2,277 |
) |
|
|
(2,582 |
) |
Free cash flow |
$ |
(617 |
) |
$ |
8,701 |
|
|
$ |
6,396 |
|
|
$ |
25,463 |
||
NEXTGEN HEALTHCARE, INC.
|
|||||||||||||||
RECONCILIATION OF ADJUSTED EBITDA |
|||||||||||||||
|
Three Months Ended March 31, |
|
|
Fiscal Year Ended March 31, |
|
||||||||||
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Income from operations - GAAP |
$ |
(23,909 |
) |
|
$ |
2,813 |
|
|
$ |
(3,866 |
) |
|
$ |
6,658 |
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
||||
Acquisition costs, net |
|
832 |
|
|
|
— |
|
|
|
2,345 |
|
|
|
— |
|
Amortization of acquired intangible assets |
|
2,445 |
|
|
|
3,099 |
|
|
|
9,035 |
|
|
|
12,397 |
|
Impairment of assets |
|
1,587 |
|
|
|
2,329 |
|
|
|
3,163 |
|
|
|
3,906 |
|
Restructuring costs |
|
2,152 |
|
|
|
— |
|
|
|
2,473 |
|
|
|
539 |
|
Shareholder disputes, other regulatory and litigation matters, and related costs, net of insurance* |
|
36,026 |
|
|
|
531 |
|
|
|
36,513 |
|
|
|
29,747 |
|
Share-based compensation |
|
6,942 |
|
|
|
7,867 |
|
|
|
33,458 |
|
|
|
26,552 |
|
Other non-run-rate expenses** |
|
160 |
|
|
|
107 |
|
|
|
939 |
|
|
|
4,486 |
|
Total adjustments to GAAP income from operations |
|
50,144 |
|
|
|
13,933 |
|
|
|
87,926 |
|
|
|
77,627 |
|
Income from operations - Non-GAAP |
|
26,235 |
|
|
|
16,746 |
|
|
|
84,060 |
|
|
|
84,285 |
|
Amortization of capitalized software costs |
|
6,168 |
|
|
|
5,424 |
|
|
|
22,571 |
|
|
|
23,016 |
|
Depreciation |
|
1,247 |
|
|
|
1,496 |
|
|
|
5,088 |
|
|
|
6,902 |
|
Depreciation and Amortization - Non-GAAP |
|
7,415 |
|
|
|
6,920 |
|
|
|
27,659 |
|
|
|
29,918 |
|
Adjusted EBITDA - Non-GAAP |
$ |
33,650 |
|
|
$ |
23,666 |
|
|
$ |
111,719 |
|
|
$ |
114,203 |
|
Total revenues |
$ |
178,550 |
|
|
$ |
151,259 |
|
|
$ |
653,172 |
|
|
$ |
596,350 |
|
Adjusted EBITDA margin - Non-GAAP |
|
18.8 |
% |
|
|
15.6 |
% |
|
|
17.1 |
% |
|
|
19.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||
* Includes $35,095 of legal settlement and related costs associated with the DOJ investigation regulatory matter.
|
|
||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20230516005941/en/
Contacts
Media Relations Contact
Tami Andrade
(949) 517-2380
tandrade@nextgen.com
Investor Relations Contact
James Hammerschmidt
(949) 237-6112
jhammerschmidt@nextgen.com
