NUAN - Nuance +7.1% after quarterly beat announced sale of transcription/EHR businesses

Nuance Communications (NUAN) is up 7.1% in early after-hours trading following its fiscal Q4 earnings, where it beat consensus on top and bottom lines. The company also announced the sale of its Health Information Management Transcription business and its Electronic Health Record Go-Live Services business, to a new entity, DeliverHealth Solutions (formed by Assured Healthcare Partners in partnership with Aeries Technology Group). Nuance will be a minority shareholder in DeliverHealth and continue to serve it with technology. Revenue was down about 9% overall, though hosting was flat while product/licensing slipped. "In Healthcare, we drove solid growth in our cloud offerings, ending the year at $386M in cloud-based ARR, up 29% for the full year. In particular, we benefited from strong performance in Dragon Medical Cloud, which grew 38% compared to 2019," says CEO Mark Benjamin. "Enterprise revenue increased 4% compared to 2019, marking our fifth consecutive year of organic growth.

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Nuance +7.1% after quarterly beat, announced sale of transcription/EHR businesses