NXGN - NextGen Healthcare Reports Fiscal 2024 Second Quarter Results
NextGen Healthcare, Inc. (Nasdaq: NXGN), a leading provider of innovative, cloud-based healthcare technology solutions, today announced its operating results for the fiscal second quarter ending September 30, 2023.
Fiscal 2024 Second Quarter Highlights
- Total revenue was $176.4 million compared to $159.4 million for the same period a year ago, an increase of 10.6%.
- Recurring revenue was $161.3 million compared to $143.5 million for the same period a year ago, an increase of 12.4%.
- Non-recurring revenue was $15.1 million compared to $15.9 million for the same period a year ago, a decrease of 5.3%.
- Fully diluted net income per share was $0.07 compared to $0.20 for the same period a year ago.
- On a non-GAAP basis, fully diluted earnings per share was $0.31 compared to $0.25 for the same period a year ago.
- Adjusted EBITDA was $34.4 million compared to $28.6 million for the same period a year ago.
- Bookings, which reflects annual contract value excluding renewals, were $40.8 million and included four deals greater than $1.0 million.
“The team produced solid financial and operational results this quarter as we look forward to the next chapter in the company’s history,” said David Sides, president and chief executive officer of NextGen Healthcare. “I would like to thank our shareholders for their support over the past 40 years as a public company.”
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, which include net securities litigation defense, proxy contest, other regulatory and litigation matters, and related costs, net of insurance, 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 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, which include net securities litigation defense, proxy contest, other regulatory and litigation matters, and related costs, net of insurance, 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.
About NextGen Healthcare, Inc.
NextGen Healthcare, Inc. (Nasdaq: NXGN) is a leading provider of innovative healthcare technology and data solutions. We are reimagining ambulatory healthcare with award-winning EHR, practice management and surround solutions that enable providers to deliver whole-person health and value-based care. Our highly integrated, intelligent, and interoperable solutions increase clinical quality and productivity, enrich the patient experience and drive superior financial performance. We are on a relentless quest to achieve better healthcare outcomes for all. Learn more at nextgen.com , and follow us on Facebook , X , LinkedIn , YouTube , and Instagram .
| NEXTGEN HEALTHCARE, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited) |
|
|
| Three Months Ended September 30, |
|
|
|
|
| Six Months Ended |
|
|
|
|
| 2023 |
|
|
|
|
| 2022 |
|
|
|
|
| 2023 |
|
|
|
|
| 2022 |
|
|
| Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Recurring |
| $ |
| 161,316 |
|
|
|
|
| $ |
| 143,503 |
|
|
|
|
| $ |
| 324,690 |
|
|
|
|
| $ |
| 283,262 |
|
|
| Software, hardware, and other non-recurring |
|
|
| 15,102 |
|
|
|
|
|
|
| 15,940 |
|
|
|
|
|
|
| 29,935 |
|
|
|
|
|
|
| 29,483 |
|
|
| Total revenues |
|
|
| 176,418 |
|
|
|
|
|
|
| 159,443 |
|
|
|
|
|
|
| 354,625 |
|
|
|
|
|
|
| 312,745 |
|
|
| Cost of revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Recurring |
|
|
| 75,585 |
|
|
|
|
|
|
| 65,039 |
|
|
|
|
|
|
| 154,806 |
|
|
|
|
|
|
| 127,283 |
|
|
| Software, hardware, and other non-recurring |
|
|
| 12,031 |
|
|
|
|
|
|
| 10,797 |
|
|
|
|
|
|
| 24,205 |
|
|
|
|
|
|
| 21,473 |
|
|
| Amortization of capitalized software costs and acquired intangible assets |
|
|
| 7,181 |
|
|
|
|
|
|
| 6,744 |
|
|
|
|
|
|
| 14,172 |
|
|
|
|
|
|
| 13,878 |
|
|
| Total cost of revenue |
|
|
| 94,797 |
|
|
|
|
|
|
| 82,580 |
|
|
|
|
|
|
| 193,183 |
|
|
|
|
|
|
| 162,634 |
|
|
| Gross profit |
|
|
| 81,621 |
|
|
|
|
|
|
| 76,863 |
|
|
|
|
|
|
| 161,442 |
|
|
|
|
|
|
| 150,111 |
|
|
| Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Selling, general and administrative |
|
|
| 54,175 |
|
|
|
|
|
|
| 44,886 |
|
|
|
|
|
|
| 102,368 |
|
|
|
|
|
|
| 93,920 |
|
|
| Research and development costs, net |
|
|
| 18,020 |
|
|
|
|
|
|
| 20,857 |
|
|
|
|
|
|
| 38,945 |
|
|
|
|
|
|
| 42,652 |
|
|
| Amortization of acquired intangible assets |
|
|
| 1,189 |
|
|
|
|
|
|
| 705 |
|
|
|
|
|
|
| 2,377 |
|
|
|
|
|
|
| 1,410 |
|
|
| Impairment of assets |
|
|
| 166 |
|
|
|
|
|
|
| 805 |
|
|
|
|
|
|
| 525 |
|
|
|
|
|
|
| 1,329 |
|
|
| Restructuring costs |
|
|
| 15 |
|
|
|
|
|
|
| 321 |
|
|
|
|
|
|
| 105 |
|
|
|
|
|
|
| 321 |
|
|
| Total operating expenses |
|
|
| 73,565 |
|
|
|
|
|
|
| 67,574 |
|
|
|
|
|
|
| 144,320 |
|
|
|
|
|
|
| 139,632 |
|
|
| Income from operations |
|
|
| 8,056 |
|
|
|
|
|
|
| 9,289 |
|
|
|
|
|
|
| 17,122 |
|
|
|
|
|
|
| 10,479 |
|
|
| Interest income |
|
|
| 1,520 |
|
|
|
|
|
|
| 74 |
|
|
|
|
|
|
| 3,189 |
|
|
|
|
|
|
| 120 |
|
|
| Interest expense |
|
|
| (3,310 |
| ) |
|
|
|
|
| (325 |
| ) |
|
|
|
|
| (6,549 |
| ) |
|
|
|
|
| (655 |
| ) |
| Other income, net |
|
|
| 430 |
|
|
|
|
|
|
| 10,292 |
|
|
|
|
|
|
| 1,480 |
|
|
|
|
|
|
| 10,287 |
|
|
| Income before provision for income taxes |
|
|
| 6,696 |
|
|
|
|
|
|
| 19,330 |
|
|
|
|
|
|
| 15,242 |
|
|
|
|
|
|
| 20,231 |
|
|
| Provision for income taxes |
|
|
| 1,641 |
|
|
|
|
|
|
| 5,707 |
|
|
|
|
|
|
| 4,031 |
|
|
|
|
|
|
| 5,460 |
|
|
| Net income |
| $ |
| 5,055 |
|
|
|
|
| $ |
| 13,623 |
|
|
|
|
| $ |
| 11,211 |
|
|
|
|
| $ |
| 14,771 |
|
|
| Net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
| $ |
| 0.08 |
|
|
|
|
| $ |
| 0.20 |
|
|
|
|
| $ |
| 0.17 |
|
|
|
|
| $ |
| 0.22 |
|
|
| Diluted |
| $ |
| 0.07 |
|
|
|
|
| $ |
| 0.20 |
|
|
|
|
| $ |
| 0.17 |
|
|
|
|
| $ |
| 0.22 |
|
|
| Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
|
| 67,074 |
|
|
|
|
|
|
| 67,806 |
|
|
|
|
|
|
| 66,749 |
|
|
|
|
|
|
| 67,698 |
|
|
| Diluted |
|
|
| 67,690 |
|
|
|
|
|
|
| 68,422 |
|
|
|
|
|
|
| 67,280 |
|
|
|
|
|
|
| 68,353 |
|
|
| NEXTGEN HEALTHCARE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except per share data) (Unaudited) |
|
|
|
|
| September 30, 2023 |
|
|
|
|
| March 31, 2023 |
|
|
| ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
| Current assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
|
| $ |
| 53,867 |
|
|
|
|
| $ |
| 98,719 |
|
|
| Restricted cash and cash equivalents |
|
|
|
|
| 4,914 |
|
|
|
|
|
|
| 7,269 |
|
|
| Marketable securities |
|
|
|
|
| 146,432 |
|
|
|
|
|
|
| 139,612 |
|
|
| Accounts receivable, net |
|
|
|
|
| 89,277 |
|
|
|
|
|
|
| 88,498 |
|
|
| Contract assets |
|
|
|
|
| 20,489 |
|
|
|
|
|
|
| 19,561 |
|
|
| Income taxes receivable |
|
|
|
|
| 8,134 |
|
|
|
|
|
|
| 5,248 |
|
|
| Prepaid expenses and other current assets |
|
|
|
|
| 39,684 |
|
|
|
|
|
|
| 42,916 |
|
|
| Total current assets |
|
|
|
|
| 362,797 |
|
|
|
|
|
|
| 401,823 |
|
|
| Equipment and improvements, net |
|
|
|
|
| 4,939 |
|
|
|
|
|
|
| 6,421 |
|
|
| Capitalized software costs, net |
|
|
|
|
| 59,875 |
|
|
|
|
|
|
| 54,516 |
|
|
| Operating lease assets |
|
|
|
|
| 2,615 |
|
|
|
|
|
|
| 3,335 |
|
|
| Deferred income taxes, net |
|
|
|
|
| 29,210 |
|
|
|
|
|
|
| 29,472 |
|
|
| Contract assets, net of current |
|
|
|
|
| 5,616 |
|
|
|
|
|
|
| 5,572 |
|
|
| Intangibles, net |
|
|
|
|
| 24,480 |
|
|
|
|
|
|
| 28,968 |
|
|
| Goodwill |
|
|
|
|
| 322,001 |
|
|
|
|
|
|
| 321,756 |
|
|
| Other assets |
|
|
|
|
| 46,217 |
|
|
|
|
|
|
| 44,238 |
|
|
| Total assets |
|
|
| $ |
| 857,750 |
|
|
|
|
| $ |
| 896,101 |
|
|
| LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
| Current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
| Accounts payable |
|
|
| $ |
| 10,467 |
|
|
|
|
| $ |
| 12,022 |
|
|
| Contract liabilities |
|
|
|
|
| 45,932 |
|
|
|
|
|
|
| 61,601 |
|
|
| Accrued compensation and related benefits |
|
|
|
|
| 28,407 |
|
|
|
|
|
|
| 36,241 |
|
|
| Income taxes payable |
|
|
|
|
| 604 |
|
|
|
|
|
|
| 622 |
|
|
| Operating lease liabilities |
|
|
|
|
| 3,471 |
|
|
|
|
|
|
| 3,826 |
|
|
| Other current liabilities |
|
|
|
|
| 54,997 |
|
|
|
|
|
|
| 83,799 |
|
|
| Total current liabilities |
|
|
|
|
| 143,878 |
|
|
|
|
|
|
| 198,111 |
|
|
| Contract liabilities, net of current |
|
|
|
|
| 2,809 |
|
|
|
|
|
|
| 10,310 |
|
|
| Deferred compensation |
|
|
|
|
| 8,722 |
|
|
|
|
|
|
| 8,033 |
|
|
| Convertible senior notes, net, noncurrent |
|
|
|
|
| 267,565 |
|
|
|
|
|
|
| 266,843 |
|
|
| Operating lease liabilities, net of current |
|
|
|
|
| 2,464 |
|
|
|
|
|
|
| 4,095 |
|
|
| Other noncurrent liabilities |
|
|
|
|
| 9,037 |
|
|
|
|
|
|
| 8,274 |
|
|
| Total liabilities |
|
|
|
|
| 434,475 |
|
|
|
|
|
|
| 495,666 |
|
|
| Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
| Shareholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
|
| Common stock, $0.01 par value; authorized 100,000 shares; 71,946 shares and 70,875 shares issued at September 30, 2023 and March 31, 2023, respectively; 67,097 shares and 66,026 shares outstanding at September 30, 2023 and March 31, 2023, respectively |
|
|
|
|
| 719 |
|
|
|
|
|
|
| 709 |
|
|
| Treasury stock, at cost, 4,849 shares and 4,849 shares at September 30, 2023 and March 31, 2023, respectively |
|
|
|
|
| (85,752 |
| ) |
|
|
|
|
| (85,752 |
| ) |
| Additional paid-in capital |
|
|
|
|
| 371,080 |
|
|
|
|
|
|
| 359,342 |
|
|
| Accumulated other comprehensive loss |
|
|
|
|
| (1,581 |
| ) |
|
|
|
|
| (1,462 |
| ) |
| Retained earnings |
|
|
|
|
| 138,809 |
|
|
|
|
|
|
| 127,598 |
|
|
| Total shareholders' equity |
|
|
|
|
| 423,275 |
|
|
|
|
|
|
| 400,435 |
|
|
| Total liabilities and shareholders' equity |
|
|
| $ |
| 857,750 |
|
|
|
|
| $ |
| 896,101 |
|
|
| NEXTGEN HEALTHCARE, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three Months Ended September 30, |
|
|
|
|
| Six Months Ended |
|
|
|
|
| 2023 |
|
|
|
|
| 2022 |
|
|
|
|
| 2023 |
|
|
|
|
| 2022 |
|
|
| Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income |
| $ |
| 5,055 |
|
|
|
|
| $ |
| 13,623 |
|
|
|
|
| $ |
| 11,211 |
|
|
|
|
| $ |
| 14,771 |
|
|
| Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Amortization of capitalized software costs |
|
|
| 6,125 |
|
|
|
|
|
|
| 5,371 |
|
|
|
|
|
|
| 12,061 |
|
|
|
|
|
|
| 10,725 |
|
|
| Amortization of debt issuance costs |
|
|
| 536 |
|
|
|
|
|
|
| 127 |
|
|
|
|
|
|
| 976 |
|
|
|
|
|
|
| 254 |
|
|
| Amortization of other intangibles |
|
|
| 2,244 |
|
|
|
|
|
|
| 2,078 |
|
|
|
|
|
|
| 4,488 |
|
|
|
|
|
|
| 4,564 |
|
|
| Net amortization (accretion) of premiums/discounts on marketable securities |
|
|
| (983 |
| ) |
|
|
|
|
| — |
|
|
|
|
|
|
| (1,956 |
| ) |
|
|
|
|
| — |
|
|
| Change in fair value of contingent consideration |
|
|
| 300 |
|
|
|
|
|
|
| — |
|
|
|
|
|
|
| 400 |
|
|
|
|
|
|
| — |
|
|
| Depreciation |
|
|
| 946 |
|
|
|
|
|
|
| 1,354 |
|
|
|
|
|
|
| 2,064 |
|
|
|
|
|
|
| 2,646 |
|
|
| Excess tax deficiency (benefit) from share-based compensation |
|
|
| (41 |
| ) |
|
|
|
|
| (23 |
| ) |
|
|
|
|
| 170 |
|
|
|
|
|
|
| (434 |
| ) |
| Impairment of assets |
|
|
| 166 |
|
|
|
|
|
|
| 805 |
|
|
|
|
|
|
| 171 |
|
|
|
|
|
|
| 1,329 |
|
|
| Loss on disposal of equipment and improvements |
|
|
| 37 |
|
|
|
|
|
|
| 33 |
|
|
|
|
|
|
| 37 |
|
|
|
|
|
|
| 74 |
|
|
| Loss on foreign currency exchange rates |
|
|
| 16 |
|
|
|
|
|
|
| 1 |
|
|
|
|
|
|
| 100 |
|
|
|
|
|
|
| 7 |
|
|
| Non-cash operating lease costs |
|
|
| 371 |
|
|
|
|
|
|
| 768 |
|
|
|
|
|
|
| 763 |
|
|
|
|
|
|
| 1,682 |
|
|
| Provision for bad debts |
|
|
| 951 |
|
|
|
|
|
|
| 359 |
|
|
|
|
|
|
| 1,826 |
|
|
|
|
|
|
| 600 |
|
|
| Realized loss on marketable securities |
|
|
| 734 |
|
|
|
|
|
|
| — |
|
|
|
|
|
|
| 734 |
|
|
|
|
|
|
| — |
|
|
| Share-based compensation |
|
|
| 9,466 |
|
|
|
|
|
|
| 8,687 |
|
|
|
|
|
|
| 17,422 |
|
|
|
|
|
|
| 17,453 |
|
|
| Gain on disposition of Commercial Dental assets |
|
|
| — |
|
|
|
|
|
|
| (10,296 |
| ) |
|
|
|
|
| — |
|
|
|
|
|
|
| (10,296 |
| ) |
| Changes in assets and liabilities, net of amounts acquired: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Accounts receivable |
|
|
| (6,106 |
| ) |
|
|
|
|
| (63 |
| ) |
|
|
|
|
| (2,606 |
| ) |
|
|
|
|
| (1,527 |
| ) |
| Contract assets |
|
|
| 708 |
|
|
|
|
|
|
| 124 |
|
|
|
|
|
|
| (972 |
| ) |
|
|
|
|
| (2 |
| ) |
| Accounts payable |
|
|
| (1,701 |
| ) |
|
|
|
|
| (2,676 |
| ) |
|
|
|
|
| (1,571 |
| ) |
|
|
|
|
| 3,153 |
|
|
| Contract liabilities |
|
|
| (1,859 |
| ) |
|
|
|
|
| (75 |
| ) |
|
|
|
|
| (23,170 |
| ) |
|
|
|
|
| 1,739 |
|
|
| Accrued compensation and related benefits |
|
|
| 5,572 |
|
|
|
|
|
|
| 2,246 |
|
|
|
|
|
|
| (7,802 |
| ) |
|
|
|
|
| (20,422 |
| ) |
| Income taxes |
|
|
| (4,781 |
| ) |
|
|
|
|
| 4,125 |
|
|
|
|
|
|
| (2,825 |
| ) |
|
|
|
|
| 3,934 |
|
|
| Deferred compensation |
|
|
| (113 |
| ) |
|
|
|
|
| (200 |
| ) |
|
|
|
|
| 689 |
|
|
|
|
|
|
| (249 |
| ) |
| Operating lease liabilities |
|
|
| (912 |
| ) |
|
|
|
|
| (2,012 |
| ) |
|
|
|
|
| (1,979 |
| ) |
|
|
|
|
| (4,097 |
| ) |
| Other assets and liabilities |
|
|
| (26,149 |
| ) |
|
|
|
|
| 14,085 |
|
|
|
|
|
|
| (27,746 |
| ) |
|
|
|
|
| 7,892 |
|
|
| Net cash provided by (used in) operating activities |
|
|
| (9,418 |
| ) |
|
|
|
|
| 38,441 |
|
|
|
|
|
|
| (17,515 |
| ) |
|
|
|
|
| 33,796 |
|
|
| Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Additions to capitalized software costs |
|
|
| (9,195 |
| ) |
|
|
|
|
| (9,418 |
| ) |
|
|
|
|
| (17,420 |
| ) |
|
|
|
|
| (18,416 |
| ) |
| Additions to equipment and improvements |
|
|
| (401 |
| ) |
|
|
|
|
| (971 |
| ) |
|
|
|
|
| (854 |
| ) |
|
|
|
|
| (1,426 |
| ) |
| Proceeds from disposition of Commercial Dental assets |
|
|
| — |
|
|
|
|
|
|
| 11,253 |
|
|
|
|
|
|
| — |
|
|
|
|
|
|
| 11,253 |
|
|
| Proceeds from sales of marketable securities |
|
|
| 8,599 |
|
|
|
|
|
|
| — |
|
|
|
|
|
|
| 15,457 |
|
|
|
|
|
|
| — |
|
|
| Proceeds from maturities and redemptions of marketable securities |
|
|
| 22,111 |
|
|
|
|
|
|
| — |
|
|
|
|
|
|
| 42,871 |
|
|
|
|
|
|
| — |
|
|
| Purchases of marketable securities |
|
|
| (28,316 |
| ) |
|
|
|
|
| — |
|
|
|
|
|
|
| (63,942 |
| ) |
|
|
|
|
| — |
|
|
| Net cash provided by (used in) investing activities |
|
|
| (7,202 |
| ) |
|
|
|
|
| 864 |
|
|
|
|
|
|
| (23,888 |
| ) |
|
|
|
|
| (8,589 |
| ) |
| Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Proceeds from issuance of shares under employee plans |
|
|
| 780 |
|
|
|
|
|
|
| 507 |
|
|
|
|
|
|
| 1,430 |
|
|
|
|
|
|
| 2,575 |
|
|
| Repurchase of common stock |
|
|
| — |
|
|
|
|
|
|
| (7,373 |
| ) |
|
|
|
|
| — |
|
|
|
|
|
|
| (9,878 |
| ) |
| Payments for taxes related to net share settlement of equity awards |
|
|
| (3,206 |
| ) |
|
|
|
|
| (2,456 |
| ) |
|
|
|
|
| (7,104 |
| ) |
|
|
|
|
| (6,124 |
| ) |
| Net cash used in financing activities |
|
|
| (2,426 |
| ) |
|
|
|
|
| (9,322 |
| ) |
|
|
|
|
| (5,674 |
| ) |
|
|
|
|
| (13,427 |
| ) |
| Effect of exchange rate changes on cash and cash equivalents |
|
|
| (78 |
| ) |
|
|
|
|
| (90 |
| ) |
|
|
|
|
| (130 |
| ) |
|
|
|
|
| (219 |
| ) |
| Net increase (decrease) in cash, cash equivalents, and restricted cash |
|
|
| (19,124 |
| ) |
|
|
|
|
| 29,893 |
|
|
|
|
|
|
| (47,207 |
| ) |
|
|
|
|
| 11,561 |
|
|
| Cash, cash equivalents, and restricted cash at beginning of period |
|
|
| 77,905 |
|
|
|
|
|
|
| 48,415 |
|
|
|
|
|
|
| 105,988 |
|
|
|
|
|
|
| 66,747 |
|
|
| Cash, cash equivalents, and restricted cash at end of period |
| $ |
| 58,781 |
|
|
|
|
| $ |
| 78,308 |
|
|
|
|
| $ |
| 58,781 |
|
|
|
|
| $ |
| 78,308 |
|
|
| NEXTGEN HEALTHCARE, INC. |
| SUPPLEMENTAL FINANCIAL INFORMATION |
| (In thousands) |
| The following table presents our revenues disaggregated by our major revenue categories and by occurrence: |
|
|
| Three Months Ended |
|
|
|
|
| Six Months Ended |
|
|
|
|
| 2023 |
|
|
|
|
| 2022 |
|
|
|
|
| 2023 |
|
|
|
|
| 2022 |
|
|
| Recurring revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Subscription services |
| $ |
| 50,263 |
|
|
|
|
| $ |
| 43,416 |
|
|
|
|
| $ |
| 102,761 |
|
|
|
|
| $ |
| 86,175 |
|
|
| Support and maintenance |
|
|
| 37,561 |
|
|
|
|
|
|
| 38,150 |
|
|
|
|
|
|
| 76,070 |
|
|
|
|
|
|
| 77,288 |
|
|
| Managed services |
|
|
| 35,063 |
|
|
|
|
|
|
| 31,055 |
|
|
|
|
|
|
| 69,822 |
|
|
|
|
|
|
| 61,700 |
|
|
| Transactional and data services |
|
|
| 38,429 |
|
|
|
|
|
|
| 30,882 |
|
|
|
|
|
|
| 76,037 |
|
|
|
|
|
|
| 58,099 |
|
|
| Total recurring revenues |
|
|
| 161,316 |
|
|
|
|
|
|
| 143,503 |
|
|
|
|
|
|
| 324,690 |
|
|
|
|
|
|
| 283,262 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Software, hardware, and other non-recurring revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Software license and hardware |
|
|
| 5,521 |
|
|
|
|
|
|
| 7,916 |
|
|
|
|
|
|
| 10,492 |
|
|
|
|
|
|
| 14,115 |
|
|
| Other non-recurring services |
|
|
| 9,581 |
|
|
|
|
|
|
| 8,024 |
|
|
|
|
|
|
| 19,443 |
|
|
|
|
|
|
| 15,368 |
|
|
| Total software, hardware and other non-recurring revenues |
|
|
| 15,102 |
|
|
|
|
|
|
| 15,940 |
|
|
|
|
|
|
| 29,935 |
|
|
|
|
|
|
| 29,483 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total revenues |
| $ |
| 176,418 |
|
|
|
|
| $ |
| 159,443 |
|
|
|
|
| $ |
| 354,625 |
|
|
|
|
| $ |
| 312,745 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Recurring revenues as a percentage of total revenues |
|
|
| 91.4 |
| % |
|
|
|
|
| 90.0 |
| % |
|
|
|
|
| 91.6 |
| % |
|
|
|
|
| 90.6 |
| % |
| NEXTGEN HEALTHCARE, INC. |
| NON-GAAP FINANCIAL MEASURES |
| (In thousands, except per share data) |
| RECONCILIATION OF NON-GAAP DILUTED EARNINGS PER SHARE |
|
|
| Three Months Ended September 30, |
|
|
|
|
| Six Months Ended |
|
|
|
|
| 2023 |
|
|
|
|
| 2022 |
|
|
|
|
| 2023 |
|
|
|
|
| 2022 |
|
|
| Income before provision for income taxes - GAAP |
| $ |
| 6,696 |
|
|
|
|
| $ |
| 19,330 |
|
|
|
|
| $ |
| 15,242 |
|
|
|
|
| $ |
| 20,231 |
|
|
| Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Acquisition costs, net |
|
|
| 8,372 |
|
|
|
|
|
|
| 225 |
|
|
|
|
|
|
| 8,705 |
|
|
|
|
|
|
| 225 |
|
|
| Amortization of acquired intangible assets |
|
|
| 2,244 |
|
|
|
|
|
|
| 2,078 |
|
|
|
|
|
|
| 4,488 |
|
|
|
|
|
|
| 4,564 |
|
|
| Amortization of deferred debt issuance costs |
|
|
| 536 |
|
|
|
|
|
|
| 127 |
|
|
|
|
|
|
| 976 |
|
|
|
|
|
|
| 254 |
|
|
| Gain on disposition of Commercial Dental assets |
|
|
| — |
|
|
|
|
|
|
| (10,296 |
| ) |
|
|
|
|
| — |
|
|
|
|
|
|
| (10,296 |
| ) |
| Impairment of assets |
|
|
| 166 |
|
|
|
|
|
|
| 805 |
|
|
|
|
|
|
| 525 |
|
|
|
|
|
|
| 1,329 |
|
|
| Restructuring costs |
|
|
| 15 |
|
|
|
|
|
|
| 321 |
|
|
|
|
|
|
| 105 |
|
|
|
|
|
|
| 321 |
|
|
| Shareholder disputes, other regulatory and litigation matters, and related costs, net of insurance |
|
|
| (1,059 |
| ) |
|
|
|
|
| 224 |
|
|
|
|
|
|
| (527 |
| ) |
|
|
|
|
| 345 |
|
|
| Share-based compensation |
|
|
| 9,466 |
|
|
|
|
|
|
| 8,687 |
|
|
|
|
|
|
| 17,422 |
|
|
|
|
|
|
| 17,453 |
|
|
| Other non-run-rate expenses* |
|
|
| 92 |
|
|
|
|
|
|
| 205 |
|
|
|
|
|
|
| 186 |
|
|
|
|
|
|
| 612 |
|
|
| Total adjustments to GAAP income before provision for income taxes: |
|
|
| 19,832 |
|
|
|
|
|
|
| 2,376 |
|
|
|
|
|
|
| 31,880 |
|
|
|
|
|
|
| 14,807 |
|
|
| Income before provision for income taxes - Non-GAAP |
|
|
| 26,528 |
|
|
|
|
|
|
| 21,706 |
|
|
|
|
|
|
| 47,122 |
|
|
|
|
|
|
| 35,038 |
|
|
| Provision for income taxes |
|
|
| 5,571 |
|
|
|
|
|
|
| 4,342 |
|
|
|
|
|
|
| 9,896 |
|
|
|
|
|
|
| 7,008 |
|
|
| Net income - Non-GAAP |
| $ |
| 20,957 |
|
|
|
|
| $ |
| 17,364 |
|
|
|
|
| $ |
| 37,226 |
|
|
|
|
| $ |
| 28,030 |
|
|
| Diluted net income per share - Non-GAAP |
| $ |
| 0.31 |
|
|
|
|
| $ |
| 0.25 |
|
|
|
|
| $ |
| 0.55 |
|
|
|
|
| $ |
| 0.41 |
|
|
| Weighted-average shares outstanding (diluted): |
|
|
| 67,690 |
|
|
|
|
|
|
| 68,422 |
|
|
|
|
|
|
| 67,280 |
|
|
|
|
|
|
| 68,353 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| * Other non-run-rate expenses for the three and six months ended September 30, 2023 consist of $92 and $186, respectively, excess lease-related expense for vacated facilities not related to core operations. |
|
|
| RECONCILIATION OF FREE CASH FLOW |
|
|
| Three Months Ended September 30, |
|
|
|
|
| Six Months Ended |
|
|
|
|
| 2023 |
|
|
|
|
| 2022 |
|
|
|
|
| 2023 |
|
|
|
|
| 2022 |
|
|
| Net cash provided by (used in) operating activities |
| $ |
| (9,418 |
| ) |
|
|
| $ |
| 38,441 |
|
|
|
|
| $ |
| (17,515 |
| ) |
|
|
| $ |
| 33,796 |
|
|
| Additions to capitalized software costs |
|
|
| (9,195 |
| ) |
|
|
| $ |
| (9,418 |
| ) |
|
|
|
|
| (17,420 |
| ) |
|
|
|
|
| (18,416 |
| ) |
| Additions to equipment and improvements |
|
|
| (401 |
| ) |
|
|
| $ |
| (971 |
| ) |
|
|
|
|
| (854 |
| ) |
|
|
|
|
| (1,426 |
| ) |
| Free cash flow |
| $ |
| (19,014 |
| ) |
|
|
| $ |
| 28,052 |
|
|
|
|
| $ |
| (35,789 |
| ) |
|
|
| $ |
| 13,954 |
|
|
| NEXTGEN HEALTHCARE, INC. |
| NON-GAAP FINANCIAL MEASURES |
| (In thousands) |
| RECONCILIATION OF ADJUSTED EBITDA |
|
|
| Three Months Ended |
|
|
|
|
| Six Months Ended |
|
|
|
|
| 2023 |
|
|
|
|
| 2022 |
|
|
|
|
| 2023 |
|
|
|
|
| 2022 |
|
|
| Income from operations - GAAP |
| $ |
| 8,056 |
|
|
|
|
| $ |
| 9,289 |
|
|
|
|
| $ |
| 17,122 |
|
|
|
|
| $ |
| 10,479 |
|
|
| Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Acquisition costs, net |
|
|
| 8,372 |
|
|
|
|
|
|
| 225 |
|
|
|
|
|
|
| 8,705 |
|
|
|
|
|
|
| 225 |
|
|
| Amortization of acquired intangible assets |
|
|
| 2,244 |
|
|
|
|
|
|
| 2,078 |
|
|
|
|
|
|
| 4,488 |
|
|
|
|
|
|
| 4,564 |
|
|
| Impairment of assets |
|
|
| 166 |
|
|
|
|
|
|
| 805 |
|
|
|
|
|
|
| 525 |
|
|
|
|
|
|
| 1,329 |
|
|
| Restructuring costs |
|
|
| 15 |
|
|
|
|
|
|
| 321 |
|
|
|
|
|
|
| 105 |
|
|
|
|
|
|
| 321 |
|
|
| Shareholder disputes, other regulatory and litigation matters, and related costs, net of insurance |
|
|
| (1,059 |
| ) |
|
|
|
|
| 224 |
|
|
|
|
|
|
| (527 |
| ) |
|
|
|
|
| 345 |
|
|
| Share-based compensation |
|
|
| 9,466 |
|
|
|
|
|
|
| 8,687 |
|
|
|
|
|
|
| 17,422 |
|
|
|
|
|
|
| 17,453 |
|
|
| Other non-run-rate expenses* |
|
|
| 92 |
|
|
|
|
|
|
| 205 |
|
|
|
|
|
|
| 186 |
|
|
|
|
|
|
| 612 |
|
|
| Total adjustments to GAAP income from operations |
|
|
| 19,296 |
|
|
|
|
|
|
| 12,545 |
|
|
|
|
|
|
| 30,904 |
|
|
|
|
|
|
| 24,849 |
|
|
| Income from operations - Non-GAAP |
|
|
| 27,352 |
|
|
|
|
|
|
| 21,834 |
|
|
|
|
|
|
| 48,026 |
|
|
|
|
|
|
| 35,328 |
|
|
| Amortization of capitalized software costs |
|
|
| 6,125 |
|
|
|
|
|
|
| 5,371 |
|
|
|
|
|
|
| 12,061 |
|
|
|
|
|
|
| 10,725 |
|
|
| Depreciation |
|
|
| 946 |
|
|
|
|
|
|
| 1,354 |
|
|
|
|
|
|
| 2,064 |
|
|
|
|
|
|
| 2,646 |
|
|
| Depreciation and Amortization - Non-GAAP |
|
|
| 7,071 |
|
|
|
|
|
|
| 6,725 |
|
|
|
|
|
|
| 14,125 |
|
|
|
|
|
|
| 13,371 |
|
|
| Adjusted EBITDA - Non-GAAP |
| $ |
| 34,423 |
|
|
|
|
| $ |
| 28,559 |
|
|
|
|
| $ |
| 62,151 |
|
|
|
|
| $ |
| 48,699 |
|
|
| Total revenues |
| $ |
| 176,418 |
|
|
|
|
| $ |
| 159,443 |
|
|
|
|
| $ |
| 354,625 |
|
|
|
|
| $ |
| 312,745 |
|
|
| Adjusted EBITDA margin - Non-GAAP |
|
|
| 19.5 |
| % |
|
|
|
|
| 17.9 |
| % |
|
|
|
|
| 17.5 |
| % |
|
|
|
|
| 15.6 |
| % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| * Other non-run-rate expenses for the three and six months ended September 30, 2023 consist of $92 and $186, respectively, excess lease-related expense for vacated facilities not related to core operations. |
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20231024308175/en/
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