NextGen Healthcare focuses on innovation regardless of impacts to its volume-based enterprise


NextGen Healthcare CEO Rusty Frantz stated the corporate is performing nicely in a tricky surroundings as income dipped 1% from $132 million to $131 million throughout the latest quarter ending June 30.

The largest driver of the income loss was lowered affected person quantity on the firm’s ambulatory observe shoppers, which negatively impacted its volume-based enterprise, Frantz stated in the course of the firm’s fiscal 2021 first-quarter earnings name Thursday.

This was offset by the corporate’s continued progress in subscription income and nonrecurring service income, he stated.

“Within the face of unprecedented circumstances, NextGen delivered an distinctive efficiency by minimizing income affect, preserving earnings and producing free money when affected person go to quantity was considerably lowered,” Frantz stated.

“As we transfer by means of the quarter, our consideration has turned again to innovation, industrial execution and progress primarily based on our differentiated, future-facing ambulatory platform that’s objective constructed to have interaction sufferers of their wellness journey,” he stated.

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In the course of the quarter, NextGen noticed volumes considerably decline initially after which recuperate to roughly 90% at pre-COVID-19 ranges, the place they’ve stayed, executives stated.

“We imagine that quantity will likely be comparatively steady to bettering as folks have realized the way to work together with their suppliers within the COVID world, each nearly and in particular person. Subsequently, we’ve modeled averaging between 90% to 95% over the past three quarters of our monetary yr,” Frantz instructed analysts in the course of the name.

The Irvine, California-based healthcare expertise firm reported its internet loss for the quarter was $800,000 in contrast with internet revenue of $1.2 million within the fiscal 2020 first quarter.

Totally diluted internet loss per share was one cent within the fiscal 2021 first quarter in comparison with internet revenue per share of two cents per share for a similar interval a yr in the past.

On a non-GAAP foundation, totally diluted earnings per share for the fiscal 2021 first quarter was 21 cents, a rise of 31% yr over yr from earnings per share of 16 cents in the identical interval a yr in the past.

The earnings progress displays the affect of each short-term and long-term value actions the corporate has carried out, Frantz stated.

NextGen’s income and earnings within the quarter beat Wall Road forecasts because the consensus estimate was for quarterly earnings of 4 cents per share and income of $115 million.

“We’re seeing many purchasers benefit from the break to double down on investing and remodeling for the brand new regular. Now we have seen some shoppers wrestle and wish steerage and assist to get relaunched. We’re blessed to have the chance to assist deliver well being care again and the capabilities and scale to be a real constructive power within the effort,” Frantz stated.

The COVID-19 pandemic drove quickly rising demand for the corporate’s telehealth resolution.

NextGen’s affected person expertise platform gives a totally built-in strategy to patient-provider interactions, together with built-in digital visits, affected person self scheduling, previsit check-in and affected person funds.

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The corporate’s shoppers executed greater than 425,000 secured digital visits within the first quarter alone versus roughly 40,000 within the earlier quarter, Frantz stated.

“We’re seeing digital visits stage off a bit as our shoppers’ sufferers up for an in-person expertise with their similar supplier, an choice not obtainable with pure telehealth, however is a key advantage of NextGen’s telepractice,” he stated.

Bookings got here in at $25.6 million within the quarter, down 21% on a yr over yr foundation, primarily as many purchasers had been centered on reopening their practices, he stated.

Digital visits generated $Four million in bookings for the quarter.

With its acquisition of Topaz Data Options final yr, the corporate has expanded into the behavioral well being market to assist open entry to remedy.

“We imagine we’re uniquely positioned to deal with this drawback by enabling caregivers to not solely present built-in and coordinated behavioral care but additionally bodily care inside an built-in expertise and a single affected person file to fulfill the urgent wants of complete wellness inside our communities,” Frantz stated.

The corporate’s subscription and providers bookings accounted for $9.2 million within the quarter, a 46% improve yr over yr, whereas perpetual software program license and {hardware} bookings fell to $4.9 million, down 33% yr over yr and 15% sequentially.

Money circulate from operations was $17.7 million within the quarter in comparison with $17 million for a similar interval a yr in the past. Free money circulate was $11 million in comparison with $8.6 million in the course of the interval a yr in the past.

Given the continued uncertainty out there, the corporate didn’t present annual steerage.


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