MDRX - Earnings call transcript Q4 2019

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Operator

Greetings and welcome to Allscripts Fourth Quarter and Full-Year 2019 Earnings Conference Call. [Operator Instructions] Please note that this call is being recorded.

I will now turn the conference over to our host, Stephen Shulstein, Vice President of Investor Relations. Thank you.

You may begin.

Stephen Shulstein

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

today Paul speakers Poulton, Our are our and Executive President. Rick Officer; Black, Allscripts' Chief

or presentation of We'll our a are actual in can of undertake based and vary the forward-looking risks and events. no expectations, revise statements light of descriptions obligation to that of results. the current earnings Please future results statements a affect factors may our statements call. filings information be to These We Q&A refer number cause during materially. for involve making on SEC and these new of these to and part risk our that forward-looking detailed release the number more uncertainties

non-GAAP website. as non-GAAP statements, the Please that well release the and Relations reference in tables both supplemental GAAP Investor the are our and workbook earnings our on as available financial

I’m over going call to the And with that, hand Poulton. Rick to

Rick Poulton

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

As appreciate Allscripts. in and time always, your both we interest your

want well really and Dennis him time more the of well as the X years a company. our Allscripts for service efforts was for thanking to to begin than dedicated transformative during future. industry, his appreciate which I his We as by both in wish

XXXX; performance; for I'm long term a issuing review for today my the financial thoughts finally, around quarter we on comments our discussing going our are fourth next, ourselves structure review of to three conclude success. areas: of positioning first, guidance by the and

our with performance. start me let So,

This confidence was the at us in very which based and full $XXX million It our bookings with our for bookings across broad high guidance solutions and in clients. is our resonating year-over-year in continued our $X.X up delivered billion fourth end giving year company. that of are X% The balanced and our For strength of range. was saw of XX% the quarter up efforts strength we bookings, was resulted which year-over-year. the sales

addition, In that extensions significant the quarter. several had we client signed during

of bookings business not are extensions healthy and do reminder they reported of do client. a add in our as the count with important they the As reflect strategically existing relationship to our course backlog but

in Northwell our our and TouchWorks extended services business agreement their Some patient Sunrise XXXX. include earlier their notable first base largest U.S. extensions in Health examples through This follows client of contracts. managed

client hospital. newly expand its extended to recent solutions with services until a Sunrise Health Another and agreements acquired Allscripts XXXX and to PIH agreed

Center its pleased And extended we’re announce XXXX. recently also through Sunrise Memorial agreement to Cancer Kettering Sloan that

we India XXXX pipeline to turning international the into were markets, Now we following the market with strong and remains Qatar entered enter in the new Philippines. was deliver partnership a to dbMotion. our and market third pleased Indian to

our continue growth looking outpace our we to And expect international growth. ahead, domestic

Moving had strong clients we to the well as as another as we sales with to new clients. continue quarter market, ambulatory build momentum existing

very competitive benefiting are We in remains from marketplace and pipeline strong. our the dislocations

his Our our and positive platform as as is comments, will highlight show engagement strength coordination as called our These recognition. services as patient industry in revenue Veradigm, experiencing platform in demand, business growth And our care finally, to robust very later FollowMyHealth. well cycle known CarePort, continue Paul include businesses adjacent particular well. as

stands to revenue All-in almost of years or year-end competitive and to true across to bring backlog the work greater are company, throughout our at current year performance. will continue run billion These $X.X differentiators this for transparency Allscripts rates. we at their X.X

P&L. me let pivot to Now, the

earnings release. largely my non-GAAP are reconciliations stated. income the and as the schedules the reference focus Allscripts’ please GAAP Full statement otherwise the comments Relations metrics, well Investor figures on supplemental so, our as in do will non-GAAP I earnings available workbook the Also, of data As release, on available website. unless in on

in quarter $XXX Fourth of our than fourth XXXX. gross XX.X% quarter guidance XX.X% in the XXXX on were This and and basis. compared non-GAAP range the XX.X% in of third XXXX. to within revenue Non-GAAP fourth quarter a quarter margins million. year-over-year more totaled X% the revised up of is That

suffered in gross implementations, So, were continued drive transition delays from during costs, business, quarter. our labor business revenue unproductive cost margins mix Veradigm the in higher-than-expected cybersecurity in disappointing we and they hosting service the and which and had our

a Looking year R&D equates non-GAAP EBITDA of This drove were which total interest $XX down cash EBITDA million, was income $XX in our a non-GAAP an of the decline million which SG&A EPS at totaled our non-GAAP which quarter, $XX costs $X.XX million and ago, XX% adjusted finally, million $XX on to for year-over-year resulted quarter. expenses, adjusted operating million, was $X basis. $X and and slightly a net million non-GAAP decreased of to a share the a for from margin. And this

million time this that due share. price existing a issued We have we hedge of Pivoting face convertible interest of to $XX.XX and XXXX. be mature the during balance these at value the we carry of come of capital issuance, inclusive that to that convertible notes $XXX the of the issued These a in July. structure, per position cash bond the to fourth in quarter, purchased new the of rate an sheet in and million fourth X.XXX% our notes conversion pay-off the quarter effective $XXX

going of We repurchasing consistent authorization, share with our repurchase this be offering, million Because we under stock past in $XXX any were our remaining common with currently the to practice, have and additional existing quarter. note repurchases fourth forward. from expect shares opportunistic restricted

January our settlement in million throughout installments finalized we $XXX settlement in the of pay XXXX. Justice expect Department to we’ve and with Lastly, the

approximately of of to escrows amount a and policies. that recover variety We insurance also half from expect

for full XXXX. While we coverage process will begin will the extend likely beyond realization away, right

want I turn now, to XXXX. for outlook So to our

We and non-GAAP earnings XXXX revenue, full guidance for per year are initiating bookings, share.

XXXX. providing In addition, the revenue quarter for and first bookings we're guidance of

XXXX year-over-year acute from I attrition two on care though. million clear expect we guidance, in for context revenue by $XX impacted negatively our clients. be this to crystal want client in here be background approximately points to As

that client made base. and Sunrise client decisions are across These these client ago decisions. the were First, Paragon both and not are years new spanned

client not is new Second, attrition issue. a

it and past call have every well just client in though only industry bolus impact out a the now in as will will it level in of future as departing experience experienced from undoubtedly competitor aligned We and on such clients real We the create churn significant the because year-over-year high a experienced way comparisons. as some attrition. the have is timing to unusually wind a that in to

and between year, the backdrop $X billion. with for bookings So that million full of we expect $XXX

be just year to and $X.XX non-GAAP the which XXXX per billion XXXX share reflects earn at And full expect between to growth $X.XX share and the at an X% share $X.XX impacts revenue for I increase and $X.XX X.X% year-over-year midpoint midpoint billion represents from earnings which per attrition we discussed. incorporates expect the per it a We of between XXXX.

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

these believe we are we and of of excited about future ourselves lot success. opportunities all out beginning to talking ahead areas, So way market in as opportunities. are about in in the the and long-term talked positioning remarks, comments my recent about our conclude our I a asset mentioned for at that I quarters adjacent realizing these want portfolio by our and We've my competitors

realignment in continued the business continuous our the the This mature which the a also pace always markets. necessitates almost EHR operations management We markets. with of and of each different in public US decisions dynamics see evolution sector and we international of resources these in more the here client see are of deals our

we making upon a effort performance. think we potential can improve and operating Today, our that on and decision are focused resource our efficiencies, alignment streamline don't we full with

of for firms have as support We review as we infrastructure assist advisors effort, around weeks in several within week. transformations, interviewing we been top well in hire our the To these next of begun now the comprehensive corporate have expect to a and us this formally one them. operations

some to and to on assumptions; line. margin our be develop to review assist The an management the to of the planned will in the us perspective company; planning historical plan role first, margin the of with expected initiatives independent executing time operational EBITDA significant second, a advisory and for our threefold, leadership improvement third, challenge improvement our bring jointly

to with we improvement expect advisor, weeks will we our and XX investors complete complete, soon details with of plan it's the Working the to XX margin review as of to as investor next and share the the day review and the in results an analysts. the operational schedule

contain guidance come shared or from already that that today any improvement it. assumptions this we The does will initiatives review have operational margin not about

necessary we at So update the meeting. will as day guidance investor

Paul comments. turn me let some that, his with it to of for over And

Paul Black

Thanks Rick.

to are platforms marketplace. our for offering’s XXXX both serve results the the resources quarter long bookings me of from business lead the that and the both our our beyond revenue backlog have support the of indicator core give in These more implementation year. results our full we our pleased solutions Operationally I'm EHR. we've already using the term the in our the fourth on investments right we're focused client, with made the confidence the sold. Bookings and great strategic EHR solutions to for conversion of in driving - by faster success

to Allscripts are to we market strategy a transition to platforms additional growth few For HER paying position market through these our from as and organic a off. replacement both market inorganic past the growth years, has been capture opportunities adjacent investments,

three total approximately represent platform businesses revenue. now Our company non-EHR of XX%

depth recurring back. me our These margins faster care Veradigm have talked solutions cloud are have patient based a our platform. the other the We revenue, for ordination the let about markets systems, but the growth with aligned two strategy These high businesses. EHR in are and EHR clinical text growing engagement for agnostics include highlight and

Our patient HealthGrid. all including consists patient engagement FollowMyHealth engagement business of asset our

visit. very We with platform capabilities enables designed FollowMyHealth contact HealthGrid’s into integrated patient both Without have the high their data populations provider during utilization pre-visit, XXX% post strategic portal. the to these consumers We organizations into of now see platform. and a requiring which

are have When based XX% client for of care of care take combined response it of usage with made the portals unique design. use industry across adoption value engagement us this critical The patients, this modest rate. consumer out platform levels to we the a reach to approach, continued the historically solution averaging health patient

and shows see potential the organizations. wellness own provider in measurable participate lower not obviously we actively the health patient better returns patient is good for for and outcomes costs. only their This to As but

EHRs hospitals, in solutions all all continuum. Our patients thousands to across software received care for provides crucial makes This important transition coordination at especially CarePort the across only to business data platform risk. post-acute providers visible bridges payers. but that an resource risk everyone care and of has visibility episodes are manage settings for extraordinarily the to providers, especially continuum and care at and is acute patient and coordinator in organizations payers ACOs. This Carrefour not

Community that EHR QX I’d XXXX like to and to community Sunrise of discuss Record Book if Health just fully critical hospitals. community, integrated access needs innovations Survey, cloud-based Black Electronic we've also specifically passed EHR modification more unique Sunrise built And rural and Act Care, our to the than Service, hospitals the some their User of a systems. meet delivered. XXX about

forward rated Care significant improve Allscripts market the that We for Sunrise cloud-based clinical also for We've the Integration. Community critical unique of and recently hospital clinician This look released workflows access clients suppliers a highest results. achieving optimization as solution Smart or and Pump to currently helped was has evaluating implementing patient safety were efficiency, these of our ROI, community, a specialty EHR EHR. the needs.

employing builds effort Result in directly design to improve the advance our which impacting Development, to - user-centered major effectiveness our we've efficiency we've and approach furthers care, solutions. principles satisfaction. in This in our also on had success strides clinician human-centered Solution made to

blocking briefly information Before up, Human currently Health finalized by rule and being to also Services. I comment I wrap wanted on the

our Cure's elements conversations Allscripts We HHS, the rule XXst we on and altering. multiple Blocking with reiterate Congressional needed the even have Law beginning and has Data we To House to of in the shape feedback specifically supported White Offices. The to provided was and support, since effort address that when had take Century thought Congress proposed

taken We seeing have week has will to It data XXXX final rule when their it but ONC physicians every and right that AHS for look patient changes be goes, next our it. control and in sees the we expected who health where moves we mean company may understand from what releases. our client, the to and the forward

the focus to and or our Looking drive performance. manage to free best management and execute priorities of us or accretive of ahead R&D returns, buybacks this shareholders. structure This debt cash on rest will revenue and focus to allow team us allow margin the driving employment M&A. capital optimize clients, associates XXXX, and better will for flow cost expansion, This opportunistic reduction growth serve our long-term incremental organically, to our benefiting on will improve

summary, let's the that questions. With open line for

Operator

Jamie Our from Instructions] your question. state first comes Stockton with Fargo. question [Operator Wells Please

Jamie Stockton

quick I went And decent Can scan quarter? one, is but guess on about the was the about the it great. numbers did that's GAAP Veradigm. part maybe there of K, I just the pretty maybe of It talk a seemed that you a would profitability know first fourth number be the implied any shortfall. QX low. the from I in how a what's and thoughts in going like

Rick Poulton

that. a guess on asked Yes, thanks revenue profitability couple, Jamie. you for I and about the question,

not and quarter-to-quarter. much be modest, really decent drives some year-over-year be it chunk say around to excess there tends can particularly isn't. from of growth seems vary things. to and One, there pretty cash revenue when media so platform, be reflection I’d a something a of two of spotty around And when the see the buy, lot you a execution they the was which So, get of - the that's you

secondly, up as a And There in slower talked the than relationship was us, just have expected from the were we to a media reflection about that of spoken QX contribution see I past, would for part think it. we don't softer it and volume call of about a that's see that's you the well, in as that conditions than we’d in QX we as NextGen I it I ramping bigger in vis-à-vis trend. long-term thought standpoint expected. had what believe then buying. a we their QX. expectations on I they've a little so, an but

in excited opportunity didn't sound. the growth therefore we that We the is the convey think remain still QX, it, quite I traction it So, expected get very but about didn't expected. we and

side, of bit the On little noise. a I - yes there's profitability mean

numbers, You little have have the a GAAP - unallocated year-over-year. that amounts we changed bit

don't apples have you apples. quite and So

decision particularly the a business. Veradigm we've carried we the really investment consciously biggest I'd all made thing to is, with infrastructure, that analytics in a of I for that's fourth XXXX, support that And a on profitability thought But data to long-term. invest an think early even side say and still it year, the us pronounced over in and while bit for but just we the positions the but into And more little quarter. scalability one-time investment think that's going growth

Jamie Stockton

And maybe other just one question.

make? have you free that with flow poor. know think very at of you and Any XXXX to mentioned maybe the that I review specifically guys it got guys thoughts advisors want You going to and on kind come DOJ improve. look know in you've you're been payments cash been I profitability should to business we to that has how talking the about

excluding going came it heels And wonder severance any how margin, makes XXXX? of into me a was kind cost to should there maybe more those, even business. with if try off to to cash action lot McKesson where about of that's the improve period a integrating So of we costs, we just translate the think

thoughts be would on any great? that Just

Rick Poulton

row of know what comments, two numbers Yes flow below it We're to so, but our your things now. it contributed it opening in The pathetic, are of by years I is. I well another start I'll free mean had We've don't and that expectations. the cash is number acknowledging still word. a

to on DOJ shelf if the you your you to restructuring - this the any exclude for type second I you. that look cost the of payments, come see we kind further put of heart we described might as ahead, just a think if and I question should initiative from

would flow. here We goal I a the had think for to conversion XX% target free streamline it's on probably that for it if year, around we've to a ROI more to efficient, think net seen of but money that's And a us myself company think year-over-year. and - invest that. on suffice non-GAAP cash XX%, any good I - be meaningful sitting we're income improvement good and a I for our of of goal today, a say we’ll get us. will program, make realistic I I to don’t be ahead going

more talk that the we'll to. get about So, when closer we to Investor alluded I Day

Operator

Our next with your question from question. comes UBS. Kevin Caliendo Please state

Kevin Caliendo

delta, lost, figure So, clients last year. the care were that that three-year the just year, that you on next knew that you bit I'm they out you revenue what's you when about gen, is of a outlook combination a the to that? the said leaving gave last I us Can relative visibility of things? it before acute you what's just it presumably of little changed guidance is trying of think you fact the a sort to - provided give bunch

Rick Poulton

guess the make Look, I I think some - comments. I

set - with we some is what [indiscernible] an aspiring eye So this January to. XXXX we were of for in numbers out

multiyear is it's for the I the think I multiyear. do hard of of market finding that the changing a bit, dynamics we're us. sitting the stuff to here to guidance structure little bit keep that hard but predict also today are some think I it's challenging We corporate a such think

attrition, don’t always if I you it leave. to you going the it’s but when by this pro for will it's exactly leave, and say you Certainly, going attrition quarter. to know know forma lining that’s don't know up, you

drag out to a little a bit. So clients that have tendency

accelerate, but drag. actually Some more likely they

when to bit it's with that you're model a far out. difficult precision And so, little

from range revenue we're X-ish If you'd the X.X% you talking that that given about for we’ve guidance pro just up forma anywhere is to the note up you percent. million, $XX

described, that what this rate growth ago. quite consistent - know with excluding predicted a we you So bolus of putting I that's year that’s a attrition

it’s the if better is, I of real. few meaningful time, benefit decisions that So don’t hindsight, But pulling question have that but not the bolus could is this done year maybe telling what today, that a see you is at were job this today with recently, you same a know, is ago. know and know, that’s made we predicting a I'm a it’s we what you -

Kevin Caliendo

Okay.

that bit the on - decisions could any there follow-up, the quick one going happened the you of execute be Is Rick quite time search Rick is be one a that? to Just I could - or for bit intention interim wearing CFO while forward. guess quite a he

Paul Black

No. the Rick CFOs a decision. There's been tomorrow. will and be President starting

Operator

comes Eric Our state next Nephron Please from question question. Percher your with Research.

Eric Percher

several With gone respect you've from planning it has to the of segmentation that changes this and and review does to feel differ I through years? do last planning, couple you at some you're to this have it in What that opportunity you the in some the point how is led years, approaches or last that need versus of the time to know you the fundamentally business.

Paul Black

the I in do you from you know, to acquisition. what with describe a integration Eric my guess the first, know know we've is McKesson could is I done couple you best we've the perspective lot of done organizational think you years of it way last I what know we had particularly

reactionary know market. list in do we a it. of been cataloged you say the So And and we that since kind mode went I'd initiatives had number of we a to then, that ticked down and we've

it's under it a serial improvement. meant and targeted time, conditions it’s severance certain were seems were cost conversation. the It's well. some are therefore incurred be designed There where I at and yeah, not nontrivial I like revenue way. targeted the opportunities we to We've sustainable it’s today to is simply to And amounts either. - to we've durable. of so mean and along at This meant are, optimizing as facing be be But think that opportunities about incurred

that a do required investment we what our perspective happen. you the if be we'll think right, I And jobs will to to able give be make on

accountable the that. ability hold to us to have You

think I - that that's in So, it of differently regard.

Eric Percher

away. prior attrition we market, - bolus it's now that business attrition? when you're of stair this started the I some several there should to of look could assume is that are step that years, or the plus and seeing up Is experiencing, away any you're - And years piece the at that ongoing of attrition biggest additional relative assume in where movement that multiyear that the move we that

Paul Black

that’s that for we’re I us I what to across. Yes. to sit - not has first I claim and wanted attrition hit to try that's ever drive time not true. just really don't I now, mean again right to point, try want - the here going want to just

Eric Percher

Sure.

Paul Black

fact the but an such us, a that's of a The life in if it we just bolus it's not XXXX industry. at with a than been now fact as will, of that only of significantly past. again has was we the had That's again And every life. that competitor larger ever with number the stare stars, you in alignment

that trend see don't I as towards more defections.

think embedded, anything of certainly I a lot the No, up ago. to side client on likely believe some Certainly today. stairstep Is with it I you so. here? our losses the see are it that from not guys it I time happened of familiar Paragon lot was that Sunrise that don't a again with, side, on

Operator

& Please question state your with comes next Company. Jeff question. William Garro Our from Blair

Jeffrey Garro

looks us first help And in for sizable basis kind of guidance the bookings on might be XXXX know some more of that the a about wins XXXX clients XXXX? any to those XXXX, quantify expected deals client ask some to that important large of in walk so, XXXX, how drivers some and if could I maybe really you larger saw through had there's you without Want of way helpful? apples-to-apples we performance

Paul Black

the of with. XXXX for we risk we guidance the same I'll overstating you, obvious, is tell I maybe mean, XXXX the put guidance at by start I’ll just the just started

those they're large come expected. deals sales to level same of that a the - being inpatient were to a least at And point, not they stand. your the wound our XXXX couple of great when obviously predicting thing. good So But we're but on year stronger that side business. That's they’re we than was a helped up by

the guidance we're provide and ambulatory, we So last broad adjacent level of our based our our kind we year. that Paul think be started rebooting it really to businesses inpatient, across here, our described. of market as where that same U.S. we will international, When

be And right we'll And the good obviously in we extent - picking it now. contributors but are view to that's have to that we our trends up, best to so won't hopefully it pick they're take our all see weren't that down, going up, and that minds right now.

Jeffrey Garro

more Maybe I'll to years. attrition recurring average on follow-up some revenue attrition give like prior what percentage us already given of looked have notice last one from periods? the the has to base at topic. attrition And you way the what of five current another could and has over look three is maybe

Paul Black

would your impact the part we fully sure in what is for appreciate more this I so not than again this I'm year, year, have experienced year. second which dollar we pointed of The question. XXXX, last Xx is why out

coming asking think I be that in future, asking? what that the is you're is more would there you're

Jeffrey Garro

to might factored And have several isn't You into to different notice, a isn't issue. trying tail decision already this acknowledged a get but move that a Maybe a that new had given made sense clients of platform some to I'm years that XXXX. ago.

Paul Black

worth to And few instances, to try they client other out pointing then at know was going you, were the decided they we that given on worth more that you think came and than we last leave. - thought least are if a they really side back. where are today the had on the they’ve the it - grass greener saying So minute, there not about notice going at is and have - based people about it’s a

a too far it it’s why also that’s talk to difficult So, about out. little

I another intent million would and bleeds out XXXX. over probably who so. the But be $XX XXXX, million That's clients that's impact have felt or to indicated $XX beyond their But that years have say about hit. a beyond would not one-year other several to leave

Operator

Deutsche state George Bank. from Please Our comes with your [Operator next question question. Instructions] Hill

George Hill

I open kind be the what posts? know to parameters it's Paul, with, already drive question guess, radical set the transformation answer and you up are company like they breaking any of or come for the wondering the the up shareholders. to would you any of program. if right are there be growth ideas back goal Rick Are my whether whatever guys think savings and cost if consultants returns or that's around kind could around first that program kind I'm

Paul Black

I mean is right George, this our we're know though that. performance focused looking flow get we're open you ideas. That on what do to know improving beyond the is say way you to and of is any We're financial partnership cash scope proud would generation. of I great here. we're good with team now means to really free

will could share we're board have they that well. make beyond we the get that ideas significant ideas deliberate decisions we strategic think But likely ideas of guidance. very to those to I open to with them sure we're that, all go and less our to look to for as opportunity that kind

George Hill

settlement the you are DOJ follow out might of maybe from about to any guys that be And up is with had liability then would do DOJ be a news the lot came to quick marketing products. of separate kind Fusion. A Practice as settlement? And risk the it worried the that relates of that about having opioid downstream close opioid

Paul Black

of we happen. mean which announcing of There's zero what would beyond thought a settlement. it to than know lot look, the been George. month final terms we're I headlines, follow-on Yes, got is you that know that a more we

perfectly the with lot topic. so was we're But - bit the was there around of know. opioid But so the the a far future, settlement clear guess good. comprehensive, little know, look, not which a don't DOJ - of it was You included going I we on can't Only we different issues.

Rick Poulton

regard number two, feedback client going for one. some then say it, surprisingly and US of And also through and it about us to set that with a that clients to protect on shareholders a did of Not was back from I from insurance with go up based would we're lot this. add international the And number we way that what lot now here appropriate nor isolated, our that there few offense to get unlikely events specific like the to had topic. I'd settlement will help it policies were ability just a clients questions to do think and the play of our because George to we - exist was backdrops perspective, not it that get but I mechanisms say

George Hill

a quick assume then the guess component. margins follow-up you've related of the lot this of kind down? I relates And run to just maybe I legal done and expense topic the it expenses a will as to of

Rick Poulton

you're little that you out said? down, little, cut will So a what wind a is

George Hill

just a lot now behind caution be this the like a would like perspective cost of Well, right? might legal DOJ settlement, from like

Rick Poulton

mean, the down I rate go run that materially, should of Yes, yes.

Operator

Gillmor comes your question. state from question next Our Matthew Please Robert with W. Baird.

Matthew Gillmor

on hoping next are coming that on us of come to feels ramping In quarters? the wanted HealthGrid over I you comments expecting those still you Veradigm. back that couple some to with were revenue ramp and online. I it you update appreciate the can and delays performance. some made service, the was I RCM contracts to you talked the about calls, past also

Rick Poulton

as mean, I for called earlier, definitely, the Yes, again we've a forma few it it contributors are out. that's I to described that both began those Matt. attrition pro

not things contributors they you little That's revenue range to it. X%. talked is about, the guidance a by two driven X.X% being largely meaningful are over just Our to certainly - but

Matthew Gillmor

know first the of about just second some could to sense were under spend know year, capacity then appetite of back you three capacity DOJ you're buybacks? times talking I lot the eaten will part for the free wanted for now. a cash - blocked you're you up by I have you the but give the levered stock like be by I out just settlement, us kind of flow sounds you And if think the to. the and the a for buy

Rick Poulton

our X.X% we're coverage under right mean I Yes. ratios about now.

we full theoretically turn So, we a have could that apply.

run authorization long the got before you that. You'd through

be it as without and to ambitious increase first we our Matt, authorization debt as I to back year last board. been issues certainly we've regarding we'd covenants. So, we're think go our say, have can any with But suffice

Operator

your David Windley Please Our next question. comes with Jefferies. from question state

David Windley

I million from quantify the called you’ve attrition out? impact wondered you the or if EBITDA the $XX - the to that could headwind

Rick Poulton

mix Yes, losing. I'd of service-related it��s I way so it's composite the roughly right mean say we're value software-related to think margin of about it's and kind is revenue, - a going the a be to revenue of the

David Windley

Okay.

Rick Poulton

to going that with we're offset revenue growth. Obviously,

I it’s if you by So, profile about I just going think should company. to market you itself, should the - change the of think not just don't

David Windley

kind comment in some implementation or if there’s Okay. a flowing think I answers revenue one understand remarks prepared there then the delays the the that might have into in is just delays to to Separately, but about XXXX? fourth impact positive been of quarter, it of a impacting was implementation want question, I there.

Rick Poulton

you wind service I get projects were David. I a that around made the to gross with things margin margins When comment off rattling Yes labor. had delayed, up down. was and that few gross unproductive performance contributed our

cost kind the that have hurt, revenue. the so And of you without

David Windley

Sure.

Rick Poulton

We most a because base of reasons. the client get lot this client upgrade of all the EHR the part base in for that back - year regulatory need XXXX. Most of should to

So, that's we also say guidance. But our - that would back. get revenue reflected I should in

David Windley

delay Okay. the you that is infrastructure last it slower of in point And is at clients. business? that date there. them, the receipt in activity from your an kind to NextGen regarding stage that mentioned question of a wondering ramp ramping what Veradigm, the with the I'm which of happening or relationship, then on Is

Paul Black

and us just predominantly it's issue. other between Yes them and the interfaces

David Windley

Okay.

So critical guess traction like or in sales data, do your need that mass that aggregate more you to so enough of wondering attention? to is I'm catch I data more deals to in your the gaining to be for material still what deal enough business significant it's much not be order NextGen

Paul Black

set set We think again, so. of with think We - of our don't care growth. population data terms U.S. combined half the their in data primary in terms represents

David Windley

right. all Okay,

Paul Black

think data more. that. and things other to then aggregate with sales we able that just such We activity. need in don't And like to it be We have to claims need need the we as relevant package big. information, It’s link -

business kind close then us and So is secondly happen. the to there. two between them, interface things our One that continue team sales to of and needs sales our is,

Operator

Our next Dougherty question comes Mannheimer your from question. Please with state Gene and Company.

Eugene Mannheimer

you attrition bulk these into they revenue that predictability topic to to say, which go are after for - if - when to time, just the of former a to wouldn't that contractually or had maintenance decision away? the the more back this even period going Regarding of committed was have hospitals wind the leave they contract clients, down, defined made after

of your say a reasonable And is of seems bit. or follow-up characterized is you overwhelming before? It that sort the to be segments to entirety then blindsided majority non-EHR to now the it coming you the Thanks. my from that that growth little

Paul Black

earlier hosting, think this mean had forms blend quite just see from some at of don't the same relationships of I all. is managed is why not today. right kind mean - that's old I you services, type Gene, various It's is outsourcing in cases And these software comment clients. I is, premise I of that’s company maintenance too. lot slowing made the Yes revenue across we the pool composite the the of a

It's software maintenance. not simply

to seem suggest we - I'm that. on blindsided. comment to trying As not the

than I projecting done telling and I just more you But better the probably what's double. communicating. maybe more that is past. sitting I’m the and said, I have think than a here today number is could job shared earlier, higher we happened as happened importantly,

now comparisons. that think amount. a I fairly, - impact as It significant will a qualifies

happening And there. what's I want to make just understand everybody

or end, than turns months actually happen think need clients and because then it's may the going this even in stuff’s system. a doing it's they're six - So out client science run something more to to longer exactly not off that months, that the know they nine to when

as you might it's not predictable perfectly as So, think.

Operator

Ladies and I'll Paul closing gentlemen, to there Black CEO at are this it Thank remarks. you. for time. further no back questions turn

Paul Black

is much. us. Thank now We're that you XXXX glad very behind

in existing positioned only the year. not lot that of with a on of clarity, lot ones businesses we're grow a very are perspective growth the The and on. this working nicely We'll new to going get XXXX. have moving We parts clients, but with also

investment and to you by review we're make your everything that talked Allscripts. And the of about an going some return Have much we bringing nice to get we a very day. interest good expect third-party today. of independent for time Thank your in very

Operator

conference. you. All Thank concludes may This parties disconnect. today's Have a great evening.

Veradigm (MDRX) 2 Mar 202019 Q4 Earnings call transcript