MDRX - Earnings call transcript Q4 2018

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Operator

Welcome to the Allscripts' Q4 and Full Year 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note this conference is being recorded. I will now turn the conference over to your host, Stephen Shulstein, VP of Investor Realtions. Mr. begin. may you Shulstein,

Stephen Shulstein

much. XXXX And earnings very Allscripts' to fourth quarter conference Good you welcome afternoon. the Thank call.

release Chief and Our Allscripts' speakers non-GAAP future Please affect forward-looking hand part Olis, statements President; statements, non-GAAP SEC the may supplemental presentation of or Poulton. number of over information Investor Chief Black, We'll our Dennis Q&A Relations new well Executive as Officer; tables during release detailed making the today Rick Poulton, risk earnings the are of are a Financial Officer. available to Paul and our be the that, and our to earnings undertake that results. of with the number for of a obligation the to expectations descriptions and can our And these our financial in more in I'm on call. events. cause and both involve forward-looking the and going These refer We Please statements light that call Web our are that workbook based our Rick as vary actual revise to reference results and no factors current filings uncertainties materially. GAAP to on statements site. risks the

Rick Poulton

Stephen. afternoon, our Okay. joining Thanks Good everybody. today. call for Thanks

financial for our appreciate sustainable growth. with strengthen a to time always, Allscripts. significant company as and XXXX to on your a position both the both busy Allscripts path As It number we your well interest was a in moves as of foundation,

the us. it’s years the really these year, the have and moves few sale of over think good With done summarize at a catalog Netsmart end of for the of with the closing time last to I

over revenue without that our M&A activity So first than getting of last recurring capital debt zero. inflows $XXX mean And And added activity million by capital five is, have the I equaled what a all was company. the this flows. annual cost the years all of financial net of more out from any perspective,

operating generated cash either been Dennis today. it say reinvested free never our been is years shareholders. of to later all the flow virtually But about cash result, talk our the last suffice five expectations. will sounder or our to over a flow financially our returned than back company solutions into has As has it

Second and the for markets. the added form platforms solutions great new new importantly, more customers, we have future growth in of and new some end

and former relationships. first also opportunities base. clinical to include, clients from business, products the and new we in of the get additional than which an cost provide XXX these client integration an So relationships EHR continued XXX cross-sell our McKesson provide additional and better efficiencies they financial services us more to space, more client these opportunity brought Collectively,

in with healthcare positioned populations, industry. which to the a the acquisition portal. now consumers Allscripts We of patient Second, pre-visit patient their provide engagement into FollowMyHealth without HealthGrid platform, capabilities post-visit HealthGrid integrated sign our to the enables platform XXX% and leading of reach into requiring to both their organizations the

selling EHR in both outside base inside our of engagement clients. this success to We with patient see expect platform and

amongst Third, life platform science and Fusion peers. our investments the the company's that Practice has markets addition given Allscripts previous in the is end of to payer a unrivaled EHR

bring flow if the of of acute largest provide platform, and information. we hospital drive CarePort bridge, Our insights care have discharge traditional created the post-acute with to solutions integration our care. end to and industry between in post And will, at the planning acute with results is into Allscripts you referral platform, to and we rebranded workflow to the which improved allowing clinical Veradigm, finally these and markets bidirectional

as platform to from to to and explosion and this we as well the value Advantage it. Medicare hospital of payers other sharing growth increase expect future With nice continues opportunities plans, of risk significantly, clients, the our

make entity have to while market. positioned follow very know in in what a reporting company change well been us, it they difficult our the and constant you know we very the intentional all believe So rapidly we is can changes changing have

now So of in across broad-based to quarter quarter increase solution some results million, turn our me $XXX of let reported customer We year-over-year record the with highlights. and XX% bookings fourth areas. strength the reflecting all

digits Netsmart later on Netsmart our our Veradigm remained further the give in strong color in our will call. from the strength basis. bookings And business. grew by has exclude quarter, if both we pipeline outlook strong, a provider of sales Dennis While reflecting periods, still some on and year-over-year both bookings our double for

saw During Sunrise as we Sunrise and realized in platform in wins, facility This for for as our strength reflecting XXXX the to of or times we XX total clients. XXXX. quarter, acute facilities XXXX what and almost hospital times many we the had up than our both wins X two XX more brought new XXXX

quite the the pleased that obviously year we are we there. ended with So momentum

Our fourth as the part platform will they nine are facilities quarter that Sunrise an provider in cancer are integrated include that deploy services totals solution. of oncology

we growth with at this further opportunity see the significant client to at Sunrise facilities. the potential ahead, Looking additional platform deploy for

competitive and Health practices, Paragon our Westlake Austin these and other outpatient We hospital with of expansions in what finally, additional we and the to System proud signed best-in-class Sunrise Center, clinical quarter. extension very got them our strong Medical integrated ability new called Each XX to Center bids. and our financial One would solutions a demonstrates able systems, community and to physician expansion Hospital. with These during facilities cross fourth delivery And Heritage of the demonstrate fully signed I that preposition three slow has these clinical also Anthony And wins year of oncology. wins were a ability solutions. new also our providers. Valley value of integrated in healthcare been agreement St. expansion also was we the team HER I space It hospitals. with Texas. for am signed also our a in solution. agreements clients Medical two add full both both financial market, win the to hospitals were replacement Arise with these capabilities hospital accomplish sales for growing

had our And that competitive management post expansion Moving we ambulatory health solution. signed after as wins. We med, new an replacing competitor the our solution, of market, client several a also which process. suite net signed community to Northwest we extensive Florida included practice competitive significant for engaged TouchWorks, a

for This a a new represents group, provider revenue Additionally, cycle services is large competitive signed Allscripts. deal XXX Adfinitas and which a Health. logo with we management takeout

a our had quarter across happened business, all most Veradigm very But solid related end. they the lines. news fourth its of after Veradigm to exciting to product Moving perhaps

Veradigm, signed platforms. this clinical of the half be integrated network approximately will EHR XX that world be better with HIMS Biopharma records, develop a encompassing million in integrating integrated biopharmaceutical progress last entire and to providers we've science Veradigm as development will to population. understanding to our healthcare Veradigm January, the the access recognition with and point-of-care with We interact payer conference, We largest data analyzing week announced a data clinicians' research U.S. at agreement First, the organizations research this life collaboration of that data, to major their and creates activities access efficiently for signed leader clinical research along the enabling able more directly made approximately through will positions unique memorandum one with making with workflow. patient Nextgen. to believe the year this Veradigm This able development validates drive agreement development in to lifecycle, this solutions pursued support an across believe conduct the performed health Microsoft model, technology the agreement and by it the we to help clients. we a organizations actionable after XXX at of research in research, the networks in plans. of network And a secondly, platform innovative of clinical data health product organizations strategy be and

with HealthGrid engagement gaining integrated channels. the saw product sales the momentum our capabilities, as front, On across integrated we patient FollowMyHealth this we

Our our fourth new in acute and quarter across six wins resulted ambulatory base.

made EHR outside this base. fourth significant our inside XXX opportunities we base. finally, garner outside hospitals EHR With inside to X,XXX momentum, precision have new we of both interest, platform, continue be install driving wins, to and three significant and providers. of precise, and representing quarter landed our And and our traction the outside platform our we to during approximately FollowMyHealth addition, believe client our medicine with new base clients In adoption significant continues six

it. success and leadership teams expect solution the in We industry from the who in thought continued XXXX created of continued have the

positioned have investments So we sustainable quarters overall, these the number growth we and over Allscripts unique a drive last years let platforms, of repeat. believe years and made with The ahead. will in several me

me over outlook XXXX. call turn to as So through to quarter, with the our that, Dennis the financial for well more details for as fourth let go

Dennis Olis

Rick. Thanks

release, So Web schedules the supplemental please investor as well Allscripts this site. earnings the we as on review numbers, workbook the reference in as quarter's data the available relations

purposes, clarity before For results. remarks opening me let diving make into the a few

income non-GAAP and GAAP available the in figures focused First, otherwise non-GAAP earnings release. metrics my stated. will on largely be of comments Full the statement reconciliations on are unless

adjustment new retrospective XXXX, recognition Second, XXX modified new the results. quarter adopted the of single adaption we therefore, fourth digit standard X, in materially not revenue to and did impact the revenue effective a resulted using January standard The approach. our

the to references around our made SEC standard. results Please further standard. our filings applying all new are for current after disclosures review recognition the new such, As revenue

on the now on a of began on discontinued GAAP finally, financial which the that divestiture Fourth, our business the sale closed our XXXX reminder, results business that as Netsmart this closed transaction Practice Content includes results from reflects And quarter in contribution presented. and fourth from XXXX our Third, not Netsmart QX do fusion and for of date. we operations February in from practice a business, as and on of as October the and therefore, we both December unit. a results XX, XX, of Fusion results all result, XXXX. closed closed X, of April XXXX, include periods consolidating One EIS QX

non-GAAP results, Our from of however, the results Netsmart the sale. date through include

the to quarter results. fourth on Moving

in noted, million we $XXX quarter entire bookings products. across of the portfolio strong the Rick and bookings totaled As saw

at the This of impact was $X.X now backlog excludes the bookings Netsmart as the in adjustments billion. Our timing to not stands well included reflects metric. backlog acquired as renewals that bookings, are the both well affected business. quarter recently renewals, by and as QX as of reported in

to of XXXX. $XXX million, $X million Fourth quarter statement. versus of income X% the or revenue decrease a Turning non-GAAP QX totaled

classified the revenue X% XXXX In from growing QX million revenue. Netsmart the businesses in falling adjustments XXXX, service XXXX. as growth and our Our in in revenue revenue totaled XX% a revenue $XX.X fourth reflected deferred million. of fourth the GAAP revenue such of of related non-recurring quarter GAAP year-over-year therefore, versus $X represents excludes quarter discontinued revenue year-ago. QX million, Non-GAAP was short $XX but non-GAAP adjustments by million client quarter fourth the totaled impacted weakness also revenue acquisition expectation. year-over-year of $XXX operations of of

same recurring Looking recurring split. the and Total revenue down total Thus at revenue quarter. in flat sequentially. came sequentially. year-ago period in a flat XX% our million up essentially our revenue at $X of total XXXX, the revenue was versus QX and was mix slightly Non-recurring versus

XX% the XXXX. to continue full-year to expect low the XX% high to trend range We of in for

sequentially flat software total year-over-year. quarter, software year-over-year was item, non-recurring and million. In million. line the revenue of in transaction, $XXX by at results and software subscriptions, support was recurring now and consisting $XXX revenue QX Recurring flat totals maintenance, new revenue sequentially revenue, at XX% XX% to increased Looking

sequentially X% client primarily Recurring to consolidated cycle X% to was $XXX decline year-over-year, multiyear by flat in revenue driven services, million by increased in The upgrade service revenue driven revenue Turning was services non-GAAP and delays year-over-year declined QX. activity. offerings. service but

down this Content non-GAAP Moving earlier year, margins Total margin margin. had to business. the overall business One gross to than which of our basis points attributed was XX gross higher in sale year-over-year, primarily

R&D totaled SG&A other transaction Non-GAAP increase related non-GAAP $XXX excludes related million, Looking flat other transaction year-over-year. The a non-GAAP Recall that and slight at expenses, year-over-year. approximately excludes and SG&A was R&D expenses. figure million, gross to operating non-GAAP $XXX gross expenses.

the be Our range. software low expectations for our the capitalization XX% was XX% within in rate to quarter

$XXX margin. range We expect XX% EBITDA totaled acquired for $XX quarter our to low fourth expected expenses investments result in $XXX quarter in the was impacted the the by equates businesses. in of adjusted EBITDA EBITDA from million lower cap expenses higher at Netsmart in totaled which higher higher employee adjusted expectations and Adjusted million businesses XXXX. acquired for at XXXX. software Veradigm. their than health in was negatively million, and a was and fourth be care EBITDA to costs, the Netsmart's XX% additional Adjusted quarter This

a the rate million. reduction total Looking effective the that a fees credits tax The anti-abuse the below impact $XXX which in divestiture. $X XX%. quarter In came the of the tax which to to year-ago. Netsmart million of transaction $XX the the earnings reduction $X.XX result diluted tax fourth cash of compares GAAP in gain Netsmart. increased adjustment million, were or quarter, related GAAP to $X quarter and tax, sale pretax million made XXXX this an R&D included line, note effective full-year of rate as from share reflect to costs the we costs, base reflected this to Please was result severance and interest per other our of results of and our from a adjustment erosion

from the of As and in our a result cash of a expect XXXX. gain we exhausted sale most Netsmart, taxpayer NOLs be have the recognized to of

non-cash net attributed non-GAAP to expenses, income representing for excluding adjustments EPS non-GAAP X% increase. was and year-over-year $XX quarter, year-over-year and $X.XX transaction totaled up Allscripts million, the XX% other an Finally, related and to

ownership calculated reflect owned, $XXX notes, a These million controlled exclude quarter in $XXX no balance the portion ended of EPS of businesses. of Netsmart's in interest year-end a partially longer Allscripts' and is net to reflected debt, secured principal As of amounts approximately a million balance We with reminder, million non-GAAP non-controlling the consolidated total quarter-over-quarter. debt and sheet. debt is senior long-term our in of which $XXX convertible reduction

significant interest XXXX. savings as we As compared expense to XXXX a expect in result,

XXXX. proceeds Our from the by of is times divided XXXX X.X reflects This leverage Netsmart ratio EBITDA related ratio at of debt the since sale. the the net we've excluding end and elimination This Netsmart. net-debt year lowest is had debt

a in stock repurchased significant in of our have Our We of balance fourth and gives and under million areas additional return a sheet repurchase We year. $XXX $XXX for authorization. existing full high-growth million now shareholders. million the investment remaining flexibility capital to stock the for $XX quarter

repurchases We going expect be to opportunistic share with forward. additional

Turning to cash QX $XXX totaled a million compared million operating with cash, $XX negative flow the a year-ago.

fees relationships capitalized Free million and that one XXXX Our a negatively after was the for free transaction transaction material the software capital expenses, negatively software. flow and with flow to cash cash $XX fourth our purchased adjusting the of totaled in in due lower-than-expected Netsmart's expenditures, but flow cash prepayment negative key reduced cash vendors total impacted quarter. positive flow overall impacted related

cash As vary in noted we've past, flow quarter-to-quarter. will from the

trend as expect levels move XXXX. into we to to from we lower throughout one-time flow XXXX, costs cash XXXX cash As transactions will improve related

net from expect to On income related XXX% transaction the XX% a would forward in cash to of a half some more expect flow. non-GAAP to range basis, conversion we approximately cash of We expenses continue XXXX. first normalized go free

of outlook, bookings earnings Turning per for non-GAAP providing guidance full-year and our we the XXXX are share. to

providing guidance we're first addition, non-GAAP quarter In of the for revenue XXXX.

bookings reflects XXXX businesses. both we strength $XXX million for So, provider and $X the and This of Veradigm in between of our expect billion.

expect $X.XX XXXX. and per per of for an tax earnings XX% outlook We rate between reflects for share XXXX. share $X.XX effective This

million we expect $XXX million. the For XXXX, of non-GAAP $XXX revenue and quarter between first

and quarter year-over-year. full Midway of a of comp the quarter one revenue Practice so in of of reminder, the a had through we difficult closed this revenue As quarter a the first Fusion creates XXXX growth XXXX, first content acquisition

and Day. of We We outlook at CAGR are X% our revenue in three-year between we Investor January our that are reiterating an provided reiterating X.X% three-year a of revenue

growth growth basis. good of to turn for items linear, non-GAAP expect don't provides be excluding Table of make framework our and about that, a earnings can certain to found with release. we providing this it a Netsmart are be long-term we I'll in outlook believe results. easier, And over we how While XXXX XXXX think X XXXX today's To Paul. to revenue on more comparisons This

Paul Black

that and will of market space care market records. opportunities actions Dennis. hospitals it, better installed of marketplace. the offering My of believe physician In This reach cover well means we we need marketplace. base, the healthcare position marketplace. we've patient that surround extending outside both rest are capitalize quality to to leverage cover cost. clients Thanks built innovating to United in the We assets delivering Allscripts EHR we provider solutions have I will to remarks that now with total provider, win and XX% the base, Allscripts also on the the platforms outcomes. solutions our this to taken our the that outside of States that the providing lower around to EHR improve continue electronic and have, provider XX% the practices our health situated healthcare complement in we to drive and position platforms

Our electronic precision engagement, investments from vendors and opportunities significant in along payer health develop the we've market and and footprints made platforms consumer have allowed connectivity, These to platforms; distinguish EHR medicine key sciences. life community us. offer record for other patient Allscripts us with

in and Looking EHR product of past we investment. can flux care year. This markets, for confident outlook $X.X outsourcing. relevance five for our and and additional hosting capitalize ahead, Allscripts additional standalone R&D as believe the international We earlier from landscape will industry as coordination. adoption services other end invested the such over scale Black in We the We companies. world. we've opportunities consumer this can provider remains we we years. growth, see opportunities remain and shared competitive on with including some growth drive client believe also billion and Allscripts in vision the retention, over accolades overall and the gross We benefit Book around built recognition We

end from saw is We and benefits new pursuing with agreement are a in in organizations, of and the of Healthcare. long-term Allscripts taken empowered and never leading their own in payer of agreement recognize expect NextGen industry These networks better context dislocation. highlights opportunity. this connected believe care. and building Allscripts payers, pharma clients this starting patients We This wrap-up, science the expect connected research we we optimize been will open, to position vision Marketplace life market have discussed Rick consumers who providers, the To health. well-informed be has communities to today's to positioned to serve markets.

We have sheet model, platforms balance providers, and relevant highest to a seasoned flexible built team offer science that have recurring access life healthcare solutions and consumers. revenue payers, a a patients executive key for companies

We our scale open-up work, our drive for let's operating to your and questions. for for I have going the thank clients want loyalty associates With the leverage forward. that their for line hard summary, their to shareholders confidence.

Operator

this question-and-answer we'll conducting [Operator At session be Instructions]. time, a

comes line with from question Wells Please first your of Jamie question. Our the from Stockton proceed Fargo.

Jamie Stockton

if just I year can And a maybe number. the moving we first higher like pieces. three one as view rates, Is reasonable that adjust revenue improved that implying guess, with you all QX implies then that view your growth for the the maybe of give revenue the progresses? assessment? the It flat full-year we if anticipate seems year-over-year XXXX rate should

Dennis Olis

first flat-to-flat. revenue as part to relates will not So be your question,

content was fourth the quarter. for QX you expect quarter If factor the was one XXXX in Practice in about Fusion results half for the and of in our

XXXX. to $XX QX that net that the impact repeatable be $XX -- about added those not that million revenue in was So of million will

X gap speaks year-over-year. point to So about that

Jamie Stockton

how And color pacing growth the that? on about the rest through of year, then of should the think we any

Paul Black

down on reasons up for put told Jaime So out basis one just range we reported the is a Dennis the to one there you.

would comps the that over can from favorable and more and I results balance expect that. more you better would expect interpret So year we the of favorable think

Jamie Stockton

outlook you a year-over-year And coming? the there bookings, 'XX as guys is we think we there for then way maybe the far just that between have growth comparison residual on implied should that gave for now 'XX, as the that a what Is businesses. about

Dennis Olis

near-term I our think the longer-term consistent you think with as outlooks. should about range revenue and

Operator

your with Our Jefferies. line question the Please proceed Dodge from Sean from question. comes next of

Sean Dodge

just out. the frame, the guys sounds time that the that the years should plenty some like then EBITDA is that can you to right? compared three and guess timeframe guess you confident leverage putting you I maybe come On be on trajectory anything over also mandate we what still model, the share thinking CAGR there's over EBITDA provided, in costs revenue? how looks to revenue, are I about it of And like

Dennis Olis

to going We’ve number forward, of we some existing over view flow provided including to levels provided again that of still your synergies growth. didn’t are over of a EPS the beyond. bookings and continue from report, recognize of and of drive course cash couple continue will course that there improve We saw had EBITDA provided hope to XXXX we the their to the over course be think and the or points next in outlook the I expectations because And our the metrics EBITDA plan different year. To point, a years.

Sean Dodge

a opportunity then looks you you're bring Allscripts' a lot And the the data be more network? the behind Can strategy. model sounds help And Veradigm. clinical or to Are putting about beyond actionable. it you case of data onetime an these announced thinking purchases? this wood bunch in that I the like data there? make subscription data on bit like little to about basis access more we other trial,are should access of partnership in of guess, talk on to just knock-on selling revenue how guess like selling a there's something offerings benefits more more I with you a The to NextGen, whole a the

Paul Black

a have we of some off, first referenced them. product we and number of inside of lines So Veradigm,

NextGen over spill lines all. relationship not And the of some but product those

a for end we have. us eliminating a are, the much those are that some adds end to bringing point already The markets, and clients of with that attractive data just lines NextGen product those very some relationship will of We make that inefficiencies related which users are related have care. more accessing number -- of and lot workflow scale,

immediate are of value So about some and incremental share scale will translate because us companies. recurring win-win to it's value part relationships relationship, to the through question, characteristics we're are tend between those clearly will some of those a relationships. so leveraging that share projects. first good your say for we It's related? and of excited so mean, each our goes have that I course how the platform. in I'd to different projects And NextGen, that have And of a both we project then on contracts the it,

Operator

Our next question comes from the line of Matthew question. Gillmor your from Robert W. Baird. Please proceed with

Matthew Gillmor

fourth asking with just I like about upgrades. sounds to Maybe to also Netsmart. your higher delays the I right revenues quarter it impacted in performance, were maybe were think some guidance, to sure cost by variables what impacted then the And was for want tied software that, relative make what you that EBITDA products to? the color upgrade provide the was around cause just relative And activity, the and could delays guidance. those by

Paul Black

to pretty the relative were split EBITDA remarks, previous said between of prepared the portions business. our and evenly misses revenue the non-Netsmart fourth So guidance and much as in I for the quarter Netsmart

of it primarily the of XXXX. the half first hospital primarily by out primarily revenue delays So that quarter the upgrades, the got with by the the into Netsmart -- speaking component, driven some non- space of miss to driven and Allscripts' in fourth was pushed was

as the of healthcare did increase in just some contribute to So not that did it. cost From that's -- been We part of pushed upgrade well. see part that it's an out. did EBITDA loss is revenue contribute standpoint revenues

in So another that on factor EBITDA was contributing the Netsmart miss piece. to

Matthew Gillmor

was keep above Xx? perspective as look up What XX follow-up, you then to you curious to with out appetite leverage to capital said buybacks? versus you hoping just you then And get of So M&A a over where levered deployment on X.Xx the an deployment, six respect historically and months. your update as next I both operating to post-Netsmart expect the Netsmart between

Paul Black

about our foundation financial very powder have. and that We feel the good dry we

also our repurchase balance where it can the think think function for sense a to be and our towards trade should the you What between see then one is shares we when expect and I of well. eye first create share we like to investments, our in that the make market put strategic assets we that prices an what value. make sense work will with as we

can You in stock. we in what buying we were thought fourth ridiculously this quarter see were while quite able aggressive was we back undervalued

that balance. a navigate long-term. I to to continue will goal mean is strong our really for create platform we So the

will that put look unmatched share record be by a but simply work want buyer. we is last to our think seen. to assets, we to So for strategic capital years five track with I the repurchases, And I've just not discriminating anybody

And so that. we've think to I earned right the keep doing

So general, And littered keep the doing technology. some with have we of we some marketplace good is that. will which can I In of think pretty companies, undersized take advantage that.

Operator

Citi. Please your question. Our next question Demko proceed comes from the Stephanie from with line of

Stephanie Demko

about assets size Or Is NextGen the incremental opportunity thinking for on have. you is further your to side, one this to you partner data those already do just the think there the Another right beyond assets? Veradigm any business? data

Paul Black

really a space. a strong relationship. Well, NextGen industry the this in footprint nice I has is mean

combined again is going we again, model it what believe think that But We today set around will least we with your already And the yes, created an we've in is it there so data at actionable marketplace the ambulatory are direct say yes. data. and question sense have, think parties. we'll we active answer predict have we to a well. we conversations for I that, But have that continue works make to partnering don’t leverage we as both opportunities now And of that. want has to because some on. other to unrivaled

Stephanie Demko

or outside within space, do a NextGen the of payer, or partnership think EHR pipeline in is the there possibility partnerships or Are more in there tech both? is or the any you the side

Paul Black

I are mean, possibilities. lots of there

The would limited interested what in we've thing. of the more have. collection of label partnership and not to anything own we certain in the So, already assets definition everybody with the say makes with I now else only size ecosystem we has as almost by being the created arrangement,

Stephanie Demko

opportunities trials you some you've facing touched Now you that? past to the the in you -- But also. opportunities have a have also data. bit a little Could payer times few the share you a little on clinical mentioned talk bit

Paul Black

We lot of a have our payer opportunities solutions. with

we Port around, so our is for remarks. and about acute speak instance, to I between what That in post-acute interesting I think care. when of a some called as the entity, asset has bridge Veradigm, platform my for I payers. I'll Care repeat very talked which said

an are the engagement payer leverage well. FollowMyHealth opportunity Payers space. our that's in so as And to platform into interested

way ability the with talk the we to payers you a think about Veradigm, to series they solutions is, the got of clinical best And opportunities I a in about So, the engaging we've it some in payers health healthcare their plans. with creates of whole think lot networks with traditionally touch beyond workflow efficiencies inefficiencies with for just Veradigm. goes the that well where providers our for of intersecting point-of-care. But had it

can we so with And value, share we the them. eliminating down creates walls, inefficiencies that break those value

So the most it's solutions solutions. of innovate them, will of that's but for those to a model that new nature continue

Stephanie Demko

guidance the we bookings? implied part? another Or organic and one is back housekeeping hop I'll in ex contribution should queue. then in think about put Netsmart the just one growth And How way 'XX bookings the what that with

Paul Black

don't also the historically haven't We've color we bookings provided Stephanie, product table supplemental to of on now. doing growth our we and think really with we'll of projections to for on going level. for provided line at and provided seven our I segments, that it lot any plan results we a in that keep next And we're year, provided release. that -- we that the earnings table continue

Stephanie Demko

out? with going call or there to it long-term the line forward targets growth Is safe organic anything in to growth review your bookings is is

Paul Black

fair that assumption would see over same period, we I bookings that range. in think the a that's same

Operator

comes question the from line William of Company. & Carol Jeff with next Please Our your proceed from Blair question.

Jeff Carol

to revenue to of coverage the that historical compared and compared might to convert bookings trends? about want visibility. want ask visibility could a and more I maybe guidance, of proportion the to terms that in frame if outlook was giving guided full-year the without the the levels, forward I you specifically about revenue hoping discussion immediately you've again to just I historical backlog maybe

Paul Black

it the quarter give So was prudent revenue part of one to guidance.

talked about got be and long-term that. that to that. think could components We there when we I our obviously inorganic clean give to guidance. about fact We we've organic the in talked visibility

wanted the type we of in that throughout M&A we had have of course flexibility So adjust any to activity. the XXXX guidance event to our

balance table backlog next XXXX that of do on which in a consistent I with we years. would rolls-off tomorrow, years. seen in throughout in and what in the is say we've the our see backlog terms pretty the In And how number basis annual of our prior filed that roll-off coverage schedule provide coverage, to will you'll show be that an you

Jeff Carol

current then guidance, have mix the in on bookings? the can long-term outsize And bookings any out an the impact managed contribute necessarily services contracts in and not in between year? I know years, change near-term but

Paul Black

I change Yes, would that's of right, Jeff. But makeup bookings prior material any the periods. going our guidance bookings tell have that forward in for you doesn't for the

Jeff Carol

to repurchase. spoke share Netsmart baseline already guidance, But repurchases? bottom just line One last you I to for me your the and share proceeds assumes approach whether those for your to EPS of use of opportunistic any guidance clarify one on

Paul Black

guidance that from we The assumes provided XXXX. we of shares for where number year flat the end

stock the buyback we're the So at any awards year. minimum of that we grant going to course a during we assume

Operator

line question. Our Percher question with comes next Research. Eric proceed Nephron your from the from of Please

Eric Percher

want I to created Rick without M&A your and struck by you've to commentary, the about net spending. what was comments turn I

aren't value. of over in take the of in What's we way were to So operators considered a of the and that I continue to last several the experience your going your past. value necessarily you're obviously, enterprise equity this years view? lot the created about you the transactions reflected some for M&A or opportunities in the has changed opportunities you strategic see think changed them. advantage But know when

Rick Poulton

Well, what's I think question your me a Eric, to we on iterate little start. I changed. but bit, let maybe mean, have

think of we've first say good a of these yield thinking the years some gotten reinforced the has So out deals. it. mean I our we I'd referred of experience five I as

investors, reading after story into we when years we when and have reinforced are winners hit right ago we the value, tried the we've business, like not home patients. we've net think different of seemed growth equation you're investment We when to that invested for like turnaround our put or things just structures that in, and on things. pretty from the were there so I in different and zero low create can say markets did assets very But and simple to zero, take all a opportunities all buying spent type we good speculative the NantHealth. very types losers, we very that. everything. very I some gone how and few of the We But we on McKesson And like different which going a

So been why a ours trading to things in stock frustrating clearly bold That can do cheap. premium earnings that I that said our somebody regard, big ever at performance. with else's need you we think deployed. it's very so it's balance I'm And watch smart capital when more than are to buy we

we we the So and aware are all time. acutely balance of that that

So how responds market that's perform we will to think this been another year. takeaway for us. how watch we I But the

We will if we add off can the the then opportunities us. we'll continue the think and that through we watch the And of to performance growth get returns went I to continue to we think we those. get front in of platforms

scale and we the ability larger that acquisitions integrated gives to differentiated in a say, around faster on who to have capital than, have market do to to industry everything view native innovation happening than that our can technology a bigger some smaller have want model in in good competitors they just lot We we basis. us a of lot have where of shunned of let's tend access bring there's And my a guys. that

can and position that. balance unique it we to a I to to But in We is we're think do our needed need So we trades. smart. exploit against stock where

the the think selection had bit. a So for I sorry little time but long winded, I

Operator

proceed line Our Canaccord next the comes Genuity. question Please question. from Richard of with your Close from

Richard Close

Paul Rick. or guess I for

innovative most contribution and Just focusing sense here development in trying the or market? bringing a see you what ago your second from of can just new to terms revenue? of bring where Veradigm something products Is you a terms of through opportunity provider business As a comments get it like Where bringing the to about to think products in the at to do on to you market market, of you're M&A. functionality? or either

Rick Poulton

I'm are Yes, spending pattern Healthcare money I a think the belt jump saying Richard, I'll a belt of start providers can seeing it. and like reasons. going right drunken but way, We're where amount that now fair not definitely they're through for obvious tightening not sailors. tightened. has Paul on

So scaling off about the conservative that. solely providers, revenue we've think -- back I made healthcare assumptions is of purposely

some in there ourselves think we've the take there And create will that are needs of I position them. tried community out to growth. pockets to provider of

So of mind right large for the now. engagement the CEO again, is on in right top patient system, we industry answer the or every small of And we best now. get health think

thing, that's for Care care areas good does. business So There's like other us. that's coordination, same our what Port

little But to providers a change to they we speaking, have of generally be. doing where all the we ourselves demand will trickier are in it. tried So position think be the because

push view. and And been can translate an that we think science important to to it's it's revenue do that for the payer view provider why that's us area a growth So and faster. life it's with balance

you're Richard, do we provider again, what lot out business some expectations will of familiar, the January. more assumed the robust of side. the And our guidance, there. than with organic term they And on with we obliviously longer guidance so Veradigm saw are put our in And a you we

have me to pause or if that. don’t there. add follow-up And let So to anything I Paul want know Richard do you any you

Paul Black

be add, calls a last ROI four big is deal. that in that Richard element I three would we've or the about just talked the continuing to

provider is But they that business and opportunities number a has accurately take can Rick that have they them around ROI in patient as of issues we towards And and Rick to flow, in comes the place getting mentioned. I perspective getting in how of the reasons that the some can in acquisition and patients now patient around their for probably the that a of do new the solutions result see drive things have these general on Just in that a that up with there the solutions paid lower-cost of for the some mission more we that side discussed. have offer or are also critical manner. that

they as a they're pure have like period pretty as capabilities, darn that and value in margin And bringing other some able not So outsourcing there in and managed still may hosting cases better software, are standpoint is capabilities that services from have long to good of we have and we the you while of around them margin. that things for high client that, you're a with to them. additional time business exchange lock a you be

Richard Close

acquisitions growth You you follow-up the the And to had are guys organic and you Veradigm you maybe impressive, contemplating comments said that side. have the any Are at on and acquisitions But one there the looking that's front? on of success. that Rick mentioned on as just well? guys you front

Rick Poulton

space peers in of tomorrow, think we have might in leader anything can I continue our augment to assets you what yes, and as that traditional as I'm think to expecting are on Richard. But there who a that drop you among area. us not also this position

Operator

of the Ott Our next from Mike with question. comes question proceed your Please Oppenheimer. from line

Mike Ott

I'm going You ambulatory if to competitive your mentioned one landscape, seeing wins. competitors curious you’re a ambulatory changes the recently with any number of competitive especially of private?

Rick Poulton

wins. few noted we Yes,

we business Our to never Because team that year. in the of competitive well would both that compete assets our think things this the us other for the ambulatory has our excited clinical as last that is standing few space. years is have in-charge the in ambulatory mentioned you our well happened some and in been assets stronger that as financial as industry, include as pretty transaction

where see to excited year. are we So can take we this

Mike Ott

specifically Microsoft partnership Veradigm also to in contributing is what your curious And then there?

Rick Poulton

least Well, IQ they'll bring table. And envisioned. collaboration the Microsoft to AI some of first tools some to or their what's that's of and brings that at LP all,

I there think that just I'll for now. it leave

solutions. cloud of are our of We for code, some Microsoft.net of tech and our big partner users Azure the theirs. platform in a lot A is our act architecture obviously

some it their, going IQ and already, natural to the So just anxious of space to entity with we collaborate doing. they're deep quite higher be what relationship fairly a call, have a was assets them we're with. and But that's apply healthcare to let's into

Operator

comes Our next the from from proceed question with your Ricky question. Stanley. Please line Goldwasser of Morgan

Ricky Goldwasser

quarter? in just back think like to delays, the more or this delay Just to upgrade you provider, is activities. like the specific this facility going is this or compared about When one

Paul Black

there was acute out were there that in upgrade. more as a -- And acute the primarily Yes, their different one several it earlier, was we space. said pushed provider wasn’t I impact have had again widespread, that it's that that that clients

Ricky Goldwasser

is And you half. this think out is that pushed going from second expectation that be when said your about to the to guidance, we XQ

quarter So percent when year. that XQ, fourth that we acceleration revenues the think about of acceleration these the from from to of What I'm assuming? remainder coming moving in

Paul Black

over improvements year. Ricky, would year, would upgrades XXXX. was course not the the half that of the the comment We second get those expect pushed into of half of to first the see the

Ricky Goldwasser

-- assume guidance should quarter second so we in? So that factors

Paul Black

of second first guidance. we'll the We one haven't at provided And the guide any We the gave quarter. quarter for revenue end quarter quarter. guidance second

Ricky Goldwasser

you about wins. XX the to talked And just new clarify, Sunrise

to want make sure. Just

So these are extensions? or customer these all are new wins, of

Rick Poulton

Well, I both the I talking a was really. lot buckets commented on about wins.

for that have that XX about couple expansion quarter, the new those the But the and to deals comment some already mention what So I XX at a expansion, in wins. we scope was. of also large I expansion continuation end new were with the did talked slight hospital wins were year of just relationships to

Ricky Goldwasser

comments to and clients. for your What the with research environment, citing So just competitive they talk selecting replacement going when follow-up back, on you? as so the are you just the

Rick Poulton

it. your name we're a long-term, combination That's of going functionality, where flexibility, you that's feature proposition, economics, value

Ricky Goldwasser

the then last going And to provider thing comment. one just back

cost their we think few have weighted own fact to ago, were they pressure. X% you've X.X% the their belts Just you about the from that providers. long-term for reimbursement a thinking If and they're months and think about are provided tightening reductions they going I contribution -- guidance

versus should how within existing expansion new So core about between think your just that we wins?

Rick Poulton

expect the we churn that Well, Ricky, -- share in definitely shift both be represents, collectively There's industry. to it happens winner overtime.

continuing But win comes of that. from we We share and will that to growth client we have expect retain winner, are not shift some so every today. single we be to

wallet existing of what comes client. it call of the with Some share from you'd expansion

they is those that There as need. into solution there new potential well. expansion So accounts services new is of

footprints. So you get as as just combination well both of the new expansion, wallet share

Operator

reached now the have session. question-and-answer closing I'll end call the And We remarks. Shulstein of turn Mr. for to the over

Stephen Shulstein

call. conference for joining everyone fourth appreciate earnings have We you Thank evening. good interest quarter Allscripts' your a and

Operator

This at you may participation. concludes lines for today's your this thank disconnect conference, you your time. and

Veradigm (MDRX) 21 Feb 192018 Q4 Earnings call transcript