MDRX - Earnings call transcript Q4 2020

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Operator

Greetings and welcome to Allscripts' Fourth Quarter and Full Year 2020 Earnings Call. At this time all participants are in listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a remainder this conference is being recorded. It is now my pleasure to introduce your host, Stephen Shulstein, Vice President of Investor Relations. you. Thank

begin. may You

Stephen Shulstein

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

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

Paul Black

as fourth decisions implemented solutions of expectations. by of entire lead The initial Allscripts. summarize significant have appreciate and I'm our results, by very These made to that XXXX this our velocity the fundamentals a and pandemic which The was results Allscripts enthusiasm founded joining heartened help very the an everyone of the the most proud portfolio, sheet, enabled respond the Thanks were the year to we Stephen of I our for that internationally. and and value associates needs. base to looked thanks in with and XXXX. years align the we company to have associates client your call. and our were last of balance cost for our of and we resolve to line thanks focus extend to above to Allscripts both proud shocked year the confident in to way at and Allscripts. been past we year. shareholders made of serve the domestically also XX reset a the year world. clients, the and our stiffened to success the for our by to that collective family without leverage front pandemic. adapted priorities, of our were nor Allscripts, it and company. clients' clients, we We over year, year clients the and a the infectious will I'm to interest in be ago, clients we sincere surprised, concluded has significant past This rapidly challenge the into impacting long-term We able outpour continue Interestingly, generate strategic their precedent our I'm my in we shareholders. strengthen on our changes To driven crisis, order past resilience was saw XXXX. our for over as quarter work a were

rapid our care they nature the of the to care. journey, data more made captured smart our helped to access the the enhancements using records Simultaneously, pandemic, of had in and of to of data, manage across the quicker, to the address in to platforms our some clear their on the company. help made their critical Because them patients patients the effective ensure to their populations made clients to On are care mission clients across both solutions on We of made gain manage strategic insights health pandemic organizations. we've surge of patients from solutions decisions optimum electronic Here and our deliver manage the the details health their financial data, on to individually continuum. data and progress open enabling platform, to COVID-XX outcomes. our for importance

to at Veradigm monthly critical the a earliest design and infection is unit question confers data and and one COVID scale, and indicators understanding of COVID-XX maternal whether on that service COVID-XX. interplay US Hopkins, using of Urban about this machine University Our our retesting answer and national business immunity. COVID-XX system major prototype it health the Stanford, now approaches trends, the between led All rare. Institute and leading track the EHR is Harvard, re-infection EHRs are developing to telehealth using combat and utilization a of to researchers reporting Texas learning on the contribute Johns data working treatments, report, to our research On evaluating emerging

population we care that solution. a architected bunch to our strategy the be easily That cool consumers platform This is telemedicine connected vaccinated a favorably to contrasts data real approach isolated venues, of issues FollowMyHealth of strategy as all should further being to EHR patients not record time arise. reach This by to why the Our medical of the and safety manufacturers changed new potential has EMR-agnostic venue engage identify silos consumer in patient an needs to they On vaccine care team. care permanently consumer to through physicians with data. information, patient care just patients is help our a from data will telehealth providers. This the added EMR surveil delivery. perpetuate immediately near the Telehealth way engagement helps necessity Core, access health company. inoperable apps created record. has pandemic one their contains EMR used of

version burden clinicians The during In of and updates the a easing enhancements, experience of fourth and milestone pandemic availability a of client Community care vision system. most. a overall improvements. in will pandemic perfect more to coordinated care, precisely subside. the wide connected opinion, inefficiencies will to a health ease in cause community the health, any my data quote quarter time clinical To than based provider choice transitions networks with hosting display move a reduce unified and to our facilitate they referral in general platforms, other individually provided the we broad what the Sunrise providing communities introduced the which XX.X matters. user than of It Our of streamline Microsoft is and particular and workflows this colleague, need new vision announced open contributes XXX more of XX patient patient of includes a performance release. Sunrise it and burden why on to financial in to the Azure made when cloud, the resourcing, new line platform enhancement

for response, analytics, applause effective it important and and engagement. including the While to the platforms, telehealth the swift patient is response success note the EHR contributions and has to crisis, provided received during post-acute have rapid Core much technologies networks,

All clients utilized upgrade and treat of to aligned to migrate teams, deadly successfully and Azure. we Allscripts actions this On to center, these platforms associated are internally development, to were Microsoft, have necessary client ensure contain on-premise orchestrate pandemic. professional services, the current hardened support methodologies our to that

to clients for and allow Moving lower to and the experience cost innovation more providers, total for new improve the engage consumers effectively. allow with clients solutions, help EHR will our with of ownership, impactful cloud to

commitment see Sunrise at this where seven-year Sunrise in deliver a with to are the use Gippsland the market efficiency, On practice the Sunrise and eight EHR our existing new associated headed. investments. a utilized seeing fourth and progress all year, the This to healthcare benefits health Regional continuing one on momentum Sunrise for we decision imperatives force to This the facilities, one platform four Azure. is as Internationally, solutions, HCAs outpatient system additional these on to behind extend and last platform with first to migrate we at Australia seeing Microsoft. benefit Professional speed had of TouchWorks seen hospitals. continued platform by the the of health with increasing oncology region which HCA built Microsoft into Sarah recent as year, completed expansion is the of just Professional we the long-term we market flexibility Our from in from was records. example added trends. of hosting are Gippsland. we a EHR quarter, partnership the signed of In leading Microsoft Hospital. our resilience Azure. rollout partnership driving is to we Microsoft of the in are this In Australia as our XX example contract deployment front. Victoria, cloud-based October Latrobe designed parallel enterprise, Allscripts across Cannon ambulatory we their We a make logos TouchWorks to we Cancer Strong EHRs across benefits across is The believe using of the HCA, clients was share Last electronic a on-premise Institute of cloud many on is with upgrade is

to our new and connectivity. us we've are Veradigm highlight have research, client clients growth. to as an vendors. momentum scale end-to-end to implementation clinical risk significant guidelines larger our improve infrastructure integrated platforms will fourth will leading allow partnership the fewer with and in new The data service platform practices answer to I'd to This and was as particularly software to our USOA care for saw Orthopedic scale community pivot help national client are combined On to for exchange we the investments this grow data like deals, clinical strong evolving looking country. analytics. agility payment applications timelines, support that and Alliance. protocols, solutions, coordination, to evidence-based and around data to bring bookings financial in consolidate with and We in in returned made orthopedic creating to CMS winning opportunity market offerings adjusted consider agreement clinical, One market analytics our in to led and wide States analytics a designed across United EHR our provide the and quarter The

linked to source available the directly have We for largest and connected platforms. patient EHR clinical research, database claims from

work at lab, the distinct advantage occur insights we and with companies This home. loop will medicine precision closed research the generated allow the is competitive clinic, the bedside, to by in On clinical Veradigm and are and care robust our the over and share services the growth manifestation chain data sciences value enabled outcomes. and our drive business. allowing designed workflows through simplify research and Our practice to payer the capture The Payer, and connect Veradigm and ability and across profitability, data, of larger us improve analytics platform vision life a several brings. All that value will are last platforms. substantial and have enhancements to data pointed our R&D the expanded provider better we to care solutions investments protocols that years, of collaboration these ease are as

were I'd Now fourth of monetize and growth. these we like businesses simplify CarePort time. same we discuss returning the receiving Allscripts shareholders Health not in ownership. EPSi solutions in the And We assets sale these to reducing to at proceeds and appropriate the made quarter. to value to continue that our and did capital to from solutions valuation leverage, unlock thus, decision business investing work multiples portfolio and sale the to the drive the the the to under deploy from our clear It's to completed both

and in quarter Regarding were not costs EBITDA the on and combined us our onset in uncertain margins. of resulted last action were second beginning focus the a decisive the driving we of pandemic and environments our market the This with in cost with we improved, beginning taking with at sustainable year to solutions. reduce base, XXXX, Core seeing rapid of optimized

made never are easy, we actions these systemic changes. and While lasting

the forward. and will leverage that to optimistic improved flow We drive margins, and are cash made we going changes confident to continue we free

confident progress even while is have areas. clients, XXXX associates for and better positioned these am challenging, our that We to I made all win significant critical of shareholders. across was Allscripts And

I Before highlight call I Rick, recently recognition external to the have some to received. hand wanted we that

competitors. one, trusting beating community us, partner after under of clients named of surveying category most our our in all Research hospitals Solve number the has

requests as hospitals, that month, the independent to testament our by finally, success, to our teams, responsibility recognized positive communities, available published third very on report, be proud issues. corporate being in is to to a This with nearly categories, collaborating needs past we tailor our surveyed we to the first XXX our clients, particularly of impact Allscripts this difficult And committed four these of the parties. solutions, ranked our the we our solution firm community website. this I'm a special as our pleased XXXX. For highest have is in with are on resolve year accommodating report development which our testament aligning clients client

is. changing to about lives who are core This better. is We Allscripts the for passionate

expect company. all responsibility. call collective and report across Officer. world. aligned this With to has social We pandemic our It Allscripts' let Rick the of Financial progress to and that, the The and our has clients serve corporate our update annually Chief facets to share spirit Poulton, communities over stirred the President me turn around

Rick Poulton

and thanks, today. I'm two today going Paul joining to my structure around Thanks Okay. us everybody really areas. for comments

First, I'm and I'll going operating review give XXXX detailed full outlook. and year fourth you more talk our our to about of financial secondly, performance. a And quarter

that's financial So financial the as in additional Investor reminder, data on supplemental workbook details a available website. Relations are posted our

original and prior well and assist CarePort and and new financial like-for-like as excluding building Health This results prior on will our compare workbook that the XXXX and results results divestitures, outlook on supplemental basis. allow guidance we from - guidance models year. our both the last our the you models, asset divested data a businesses from financial your has details EPSi our the XXXX with you including to Allscripts your Given to company in performance, as the compare

it begin on period and performance EPSi quarter, we XXXX. with of results. drumbeat fourth fourth quarter fourth include Health the In that comments, results our quarterly these quarter the years. improved for throughout the best focused I'll for be steady far my by to in let's businesses. So performance primarily owned summary, was In which CarePort continued And non-GAAP

Our management both improvement sequential in seasonal flow. very share operating and that for along in traditional per the margin cost earnings free we sales QX and performance, significant and strength revenue continued cash with resulted experienced leverage strong in

the So of environment bookings me was products clients. year. million color. sales additional existing followed quarter of the with and We and to significant services $XXX some traditional new that hospital overview detailed of base seasonal let patterns The selling and provide had generated more our success business strongest

We also strong benefited research from life ambulatory of we new around exchange. and clinical sales had particularly data wins also continued strength Veradigm, competitive and And clients. quarter at science a

XXXX actually $X.X of XXXX, you'll bookings. an increased year, the year secured While we to backlog which compared absolute this bookings were down reflects include in during in considerable at basis client level our over as do end. recall, to billion we the on reported This period renewals not our

So XXXX, position regards we for we new in revenue. to the booked year selling a ended softer while business environment the in actually was than stronger with entered it future

Total million, non-GAAP headwind million and Now for software than the EPSi you'll stronger our more P&L. in Veradigm million related was business, seasonal recall up strength to offset quarter closed in the which XX. sale as third quarter the October of was revenue and to $XXX XXX revenue $X the the on from

QX. EPSi significantly QX it is impact return and This basis, the the a attrition for of client digested the we of having at earlier patient that year. to disposition, normalize QX Looking the in the highlighted on a narrowed you as in decline of after well as steady year-over-year volumes, compared in revenue year-over-year indicative

margin in the on a the margin a point P&L. reflected consolidated decline XXX expenses results performance point a in first basis point This basis Turning came nearly EBITDA to on improvement a year-over-year was our an from areas and XXX and we relative quarter adjusted basis driven quarter QX improvement basis revenue despite to XXX across reduction basis. improvement the better year-over-year point margin was from our margin the capitalized X,XXX of than The as software in XX.X% and basis. reduction XXXX operating continued expected of a and above software all seasonally our in benefited expectations quarter, in

As we we is we than amortize on earnings are on reducing cost that we our had previewed quarter now and call, fourth more our progress the working actually sheet as on last amount balance made down balance during R&D capitalized. the deferred the capitalized of

recorded this brought to We GAAP this And major expect of fourth significantly severance capitalized cash you through supplemental resulting quarter can from primarily million, Free charges other the us our our strength of in results, found to million. to be if of and we for costs XXXX And total free the lower you restructuring software area really operations. focus margin can in year expenses for be improvement data look flow generation trend one cash ahead, expenses, and as we $XX our XXXX number thus in free look in see of less These XXXX. in opportunity to workbook. we flow continuing continue flow related plan. be a drain the details performance on expect quarter's operating for table In is throughout full year. our $XX cash which from and the a the

if During payment generated from $XX operating we in exclude operations cash flow quarter. during million cash of the flow and you $XX DOJ, the operations continuing million free $XX quarter cash our final million the continuing from of to the

the sheet. at with position So with now turn the of the year cash $XXX million principle ended financial where we the $XXX a I'd balance stood outstanding, like end balance to ended the stronger at year. debt started and the to million our to year. of year significantly compared We in We

we simultaneously our removed expect $XXX a payment, balance on from have to million month. common stock. the of in XXXX while outstanding we the After will repurchasing billion since end yearend make sheet sheet $X than million also We obligation pay tax balance more have that of that $XXX we next obligations

value whose diminished. reduced significantly XX felt we from wrote receivable and days, XX assets to in We $XX average days also million our outstanding off accounts had

proud all this drive outcome total net have start worth helped and balance my very team aspects both been who position. very and have hard, our tangible to in So and sheet they stronger. never allowed us I'm we of of powerful XXXX a worked our

now our XXXX. talk I shift So for outlook and want gears to about

trends visibility improved. into somewhat future our has As

We please have XXXX refer financial details provides operations. to returned annual outlook. our and providing I XXXX, when which Xb the comparisons an in our our to outlook workbook non-GAAP respectively, our want for to normal making supplemental Xb, and Xb practice between reiterate of financial tables performance continuing

Veradigm recent outlook continued In factors And business. we for this as expect is well uncertainties in in continue. to essence, as billion. revenue XXXX Our our $X.X trends COVID growth

expect seasonal a expect of terms we to the toward quarter that XXX million And quarter, quarter-to-quarter end In results, bottom fall with the end revenue range, top of revenue first million range to XXX of the to in fluctuations fourth quarterly we of quarter the and the continue. range. closer of at per

cash Our a and confidence and de drive to outlook ability in opportunity our growth. costs million us cash reflecting repurchases consistent sheet XXXX investing expectations an free margin manage with zero our flow along to with million, are improvement to of XXXX. expected with with in to is provides million, a $XX $XXX additional also to business XXXX adjusted million and risk while debt our guidance continue flow significant range conversion flow share year-over-year for for And of $XXX profitable our compared drive our cash reflects shareholders our This to capital improvement. net prior EBITDA range $XXX to with balance via our free free return finally,

XXXX was been what challenging a initiatives up gratifying year. multiple has to financial and on a in otherwise progress in So strategic wrap very

and to balance position our solutions, strong breath structure path sustainable very Our - clear value cost a creation. Allscripts relevant with long-term provides sheet, of

for open that, the like so I'd questions. to with call And any up

Operator

gentlemen, and with Ladies question-and-answer of time, line Markets. Dodge question Instructions] a Please this from questions. the with Our [Operator comes we proceed your session. be at first conducting RBC will Capital you. Thank Sean

Thomas Keller

Thomas good for the for This Hey, on questions. taking is Sean. afternoon. Keller Thanks

landscape So Veradigm? involved about being the Does this launching anything on kind should dynamics think Organization, there, of change one impact new how Truvada this or we the for on the recent potential of with Northwell competitive about Veradigm?

Paul Black

as Veradigm don't that outlook. we on impact see any No, having direct our

Thomas Keller

you take one disrupted of another maybe How and cloud. the kind going kind then or Sunrise elements the of delayed and long of pandemic any of to do as overall expect this? to to this the process migration back Okay

Paul Black

and that perhaps think that actually a have. on It had has of how work going move would very and result other on the not We've lot very together. given not closely client that we're simultaneously. for on with Meaning we additional have We'll delayed to pieces we of technical something plan it's some things it, architects activities put some capabilities we're have us it room been ensure going this focus have there's and Microsoft the working we've cloud considerations to perhaps tight. might upon move going the some normally lot got to depending that's we what We as were of as solution architectural a already. not that the architects timeframe that in to a

clients are and saw of depending you're it end solutions on XXX talking are some mentioned, the as specifically, And period as other the organizations. actually for as and below, sized have the that we on using talking beds world of well marketplace marketplace of in similarly of about using those clients Azure parts have big been a and we what I'm long low as things had the time. in But about, we've who I Sunrise

Thomas Keller

much. Thank very you Okay, great.

Paul Black

Thomas. Thanks

Operator

Our Please next question. with Cowen. with comes proceed Rhyee question of from your the line Charles

James Auh

business growth Auh Can you consistent has to noted. on the business broadly, Hey, the noted have it's the term? long And of Veradigm others the life drivers been You talk think performance which Charles. more about sciences in with we this profile about strength of of the more space in what how James the in Veradigm? for near should in also

Rick Poulton

revenue, shared, we've term that. in in for the expect reflected what near outlook out do Veradigm is already we Well, of so our

quarterly disclosures packs the will with other Veradigm of parts that that our course, from reporting and the monitor of separate You to business. be our able

is lot we still? I do see So party forward. a Paul comments you'll be why question made of - strength going the able to see first we Why that do think watch EHRs we in one repetitive. - be that collectively industry. our the across have is share footprints largest a of mean, ambulatory could of are the this all market of I and

we in a data doing And extensive people with what's to involved this way, linking footprint. data rights so data of now. for of across hard across working on competitors some We've recognizing science which conversation the are registries. very we've a is, started we relationships built have just think, worked the compiling usable data We claims it It's have and increasingly value right our years. years, for been very recently, what that extensive And I not actually we've other leading life community, to growth. all that's have and our that

James Auh

was the also, guidance margins this the of than - than expected the reductions in margins upside also And in were did or well come expected? better adjusted driven OpEx driven seasonal all seasonally revenue, EBITDA ahead better software by quarter,

Rick Poulton

for I along right a of cost now. in quarters direction improvement. the mix several better a mean, Both for it's have combination going been with and us Costs higher revenue, continued

James Auh

you. thank Okay,

Rick Poulton

Thanks James.

Operator

Cherny Our question the Michael Please with your proceed of Bank America. line next comes question. of from with

Michael Cherny

updates opportunities. of Good - particular Thanks color nice the for on so some in afternoon. Paul, gave you some far. your all up-sell

continue and As potential so in hold Microsoft sales of Azure, their you to that they serviced terms when penetrate the take to everything for start force when those long? of customers the have toolkit feel rollout go the you've upgrade in integrated next does out with cross really platform like tools next opportunities the with your terms to in about of sell cloud-based the think does up-sell, step those with leg

Paul Black

of we spring side, two the weeks parallel that work announcement our kickoff the but obviously, we're to sales that this The did with is on internal parallels or it in the engineering ago. also work doing,

have the appropriate on lot the expectation organizations out especially this to but with of to There's the around on-premise been, having we'll go is and make year cyber. jump discussions it And all to that so from pressure these something folks capabilities, about us. larger of something and has a tooled cloud will, of on-premise a you who to those in commitment our capability My that. is one and to get full see clients to that number up presentations with want move the appropriate the if in around of start do drivers

this with to options take the play there that cloud, and a expect to so around cloud plans of and that availability nicely is natively AI, of the combined with delivery a And our increased bit we faster do people are urgency different lot lot capabilities an of into of TCO, that in have driving will a and continuous a your to demand. something than for upgrades sense closet that computers

Michael Cherny

for had Got a all saw balance it Rick, on of where that is your and front then nice a on the the I question divestitures. do chick to double alongside when really debt I sheet, job

rest cash? liability, As your buyback into cleanup you think you stand do think about from should of share use And outstanding authorization? one currently perspective, that the heading the where the 'XX, about we you of mentioned but how use on of a cash just on

Rick Poulton

Thanks Mike.

So reverse in let those order. take me

XXX stock million. new XXX got an accelerated announced we a we - program million. Shortly for authorization authorization after current that, Our for repurchase last November

thirds the two program up used about kind we'll probably of by that program happening think is we is April and up that wrap and of speak So timeframe. that sometime as in

So that so always to go seek we current will up under leave authorization. some of and course, us capacity then board should that, to the choose. And back our can we

facts just of So our authorization the those and it. are use around

positive, see made about in again, and now think kind position net you be comfortable we're We've cash about good of the place at year. into. turns the comments the public company, business at to on the one net end your obligation free here first zero flow of very that on debt longer to, debt about the our right think of year. I talked at Mike, during we'd target we slightly - essence generate a as about around the of cash - I payoff publicly we've we're And a term, bit settling half we've talked the question, that think off sitting if somewhere expecting pretty a tax little cash of part the positive I referred

on in to gives capital that make something to right small term. on what we'll buy deployment about there'll stock. acquisitions you look sense some necessary undervalued perhaps continue So be bolt believe what that the now, Nothing to of be have we might thinking and radar invest as then And we'll we but and there back some in might of what the terms have, sense. we in near of is continue type first

Michael Cherny

Great, Thanks job. so nice really much and

Rick Poulton

Mike. Thanks

Operator

of Jones comes question with line question. your from Please the Goldman proceed next with Robert Our Sachs.

Robert Jones

Hey, I looking of opportunity do I the top your a about curious opportunities, great, coming to you're are where Like, future kind looks growth, line? step at touched of most kind like the other see but growth see of about you top maybe you the some you growth this, questions. say some guess the Paul if and or think had there be you taking from? thanks for re know like do accelerate It guys obvious I'd mentioned, of kind I expectations excited? the to would accelerating you again, but the future, Rick, on Or it's your if Veradigm, flat think just line you guess, 'XX. year-over-year. organic for where the back you most

Rick Poulton

past. the market. in US mean, is Well, it. that repeat I'll Bob, you what replacement I largely mean, a our might Look, to have heard market answer EHR the I than is just tremendously from But different us not

happens we a one opportunities place. the that's a be fragmented to understands everybody a most we'll there for that. But as expect think It's basis, of into US. of the naturally replacement. believe market so lot see regulatory is replacement digital keep and continue industry US market, Hopefully, on up. still penetration But digital that be winner greenfield consolidated. net the way will everybody we in going tools that. understands healthcare the stay the of Outside compliant is behind the - the requirements replacement there's outside US and wins tool amount to still the a to And I

to difficult opportunities a standards as care successful they'll deals, sector around value-based we they're they're also medicine of drive there. to new predict to about. it's opportunities So whether will can in that's tend changing, some or more continue expect too, from. think around cases or We whether benefit care. be we're an the nevertheless it's that such into incremental we opportunity These but think that are whether there. use create timing, areas out care And that we cases be excited reimbursement personalized be to They so so new of use US it's will public little incorporation around that

nice markets and and around the steady outlook that's growth areas that the life And science our been had then to for a working drumbeat So expect that services bringing have I collectively financial and end - We've maybe something and years. think that and cycle continue growth about other a clinical revenue It's continuing for essence, will to is particular of area Veradigm, of clients. that's seen there. is we'll financial - talked continue. to that's to expand business. on of one payer couple in the in nice which the course, ambulatory And we've we've in we've we assets

grow as real So those expect commercial we we very relationships. And very have nicely real ahead. some we to look infrastructure and

outlook So that's for growth and comfort. our

Robert Jones

to comments in shape, helpful. shape. around follow much sheet maybe off leverage the super balance I the better that's getting just in guess better debt No, of a up build much the

on value-based just tools to giving that or around to to and in primary or even I obviously thoughts commercial You differently focusing asset bit access them maybe these out take guess, these an capitated little maybe better that out and there huge to of market a as MA approach the invest get in internally be capital out trying are focus and a some have There's them do them a side. with are even acquire of as that Any with place in to advantage world, care deploying that of there. coming on the whether them there. far more Doc's days to partnering lot models

Rick Poulton

spend you area. Whether out that about makes acquire some, time we expect and thinking is a capabilities active sense short us in see yes. should to more to organically that. answer lot certainly Yes, But it of or build

Robert Jones

it thanks. Okay, great. Appreciate

Rick Poulton

you. Thank

Operator

proceed Markets. question Our next Please KeyBanc of line with from comes Hooker question. with Capital Donald the your

Donald Hooker

good Great, afternoon.

segment? - I the obviously, takes hope just mean, of I a at look point, - about - and and now Is initiatives So we done different for are starting a albeit lot But of starting this, EBITDA moving I of that number feel else higher? strong if margin at looks kind puts financial had quarter of targeted of that seasonally or I the the on there long didn't that is the I in segment a you the keep clinical a point with ahead? is that you mentioned core a at And segments, particular - mostly going in of you've to particular the fourth to are efficiency expansion but - it that something like that sort as kind like kind mean, miss there. going think and segment solutions now year. your is is of level kind of I course long-term? was tremendous think Do over it You your you're

Rick Poulton

I question a good it's Don. - Yeah, think

but think I quarter, fourth I've we mean, what of the you very some talked that seasonality is assisted - about. look, it by real, see definitely in the I

that see that think wouldn't going okay. I quarter So you every expect - shouldn't to as number higher than a forward

about a we're talking of And look as year, holistically up. you when improvement now. quarters think signaling function continue year. core it look some And to that that several we've been that the go on of continuing is the across absolutely should full you what we'll clinical the see for margin initiatives at it is improvement the at across I

Donald Hooker

I to did the goal you margin, for segment, to that me here - think and Super that long-term just remind EBITDA it's from right. XX%, XX

Rick Poulton

That's correct.

Donald Hooker

if us sold the substantial were analytics for which margin segment time could visibility for the profitable there gain, a businesses - the segment, is care Was margin two that understand understand over coordination kind of segments - plus the is you obviously, kind here, a targeting target XX% past, the change a segment, help and of kind And I'm there? then trying data different very the to there. in What obviously, expansion new will to to of kind you of just I as maybe that great, but substantially. of

Rick Poulton

will new a There target. be

We XXXX haven't our published at chance one look yet. to But your workbook, observation if had I'm do is so Don you data supplemental sure right. not We had a you've - if that like there's of going there. you're the new lot like What with those we that businesses kind look look it? with think does need a of We some expectations expansion margin my details of and pretty specific of now. And clear a part haven't but - see - in it that's we'll there's will I'm happen reset giving out we not specifically segment so guidance nice a what it? businesses that yet, with. does where see in but what but guidance, of yes, overall there, right you'll segment margin on do And to divested pretty

Donald Hooker

Yeah.

super, Okay, thank you.

Rick Poulton

You're welcome.

Operator

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

Eric Percher

you 'XX? bit a obviously time we you became look Thank on investments detail those internal changes us XXXX whether and at have Can a or you. us of course piece A into And a platform helped was investment give that. the how virtual telehealth year I question appreciate and approach. a where of of the significant I became as on the this understand investment, larger think internal over last feel trended of there's focused

Rick Poulton

the Eric, grow I are. terms to we that focus in is to where required - recount that infrastructure significant in replay. business. of mean to investing were our and investments It I Veradigm internal help changes mean,

with some the We Sunrise well. of in tech are earlier, talked around as our about but invest new some touched some feature to areas Paul doing continue well. vis-a-vis to investing of core of functionalities other couple solutions as platforms modernizing EHR before that that on. it bringing of terms of around some And a in it, questions we're that our kind we you

taking So manage themselves position maximum ambulatory and some risk, in believe as that we of the on like risk, cases reimbursement, to And areas tools for that that we're them are more things practices invest well. in will capitated participate tools that care. new like people continuing that. to as There's helping help be use to coming

Eric Percher

growth and landed investment comment over the you're year when last it ready given other the guidance. see this the the the assets course of of where and without Veradigm us in has the the to gave over course additional margin it Is provide on question, we But in not growth quite ongoing the the data Got you Veradigm year, here. assume to base? new fair expansion from

Rick Poulton

as a is full allocation area going part with overhead their target improvement. the It to well. nice them corporate that get you're of they'll numbers And two is fair is reasons. of seeing very is for operating to grow and course against segments I expect that the top off absolutely assume burdened One for the that. But line, leverage secondly, margin is of

we So segments there, way the that'll improve well. as as its find into

Eric Percher

that. for Thanks Sure.

Rick Poulton

You're welcome.

Operator

the from line of comes question. with next proceed Our your Jeff Sandler. question Garro with Piper Please

Jeff Garro

and questions. thanks the for afternoon, good taking Yeah,

any that if clients on for see feedback there other to Sunrise early one users, want prospects First were from is I data me, XX.X?

Rick Poulton

the thus build into far and response about of that design the has excited our universally centered manifestation up a we core experience look very been the with. are construct the that positive. user have is go Yeah, They that feel, we

The had Microsoft. that this text, you that through really going have other one what's things take AI voice capabilities utilize that on advantage thing is in the the is releases first of full that around will of cloud we to can

by how all as earlier be well data around work a systems up I on they people that a different runs their as having well basically, that utility, As on. currently as have, back can to effort like as the going system duplicate well contract substantially different they centers, than of they're which have them streamlined just and for how and as security, what through experiences always checkbox capability amount quite substantial to is have mentioned them uptime as a as important

in Not Interestingly, enthusiastically. logo side, participate there outpatient capabilities hand, important robust those they get that we're also EMR, outpatient a inpatient all will, and the of that clients my will, well platform received. the overall if Sunrise. it's people billing, as business a we're part been is in but our of eager of for the we important. if what have well scoreboard say, in also us And one their have business all raised to expectation that's And new post cloud. around of inpatient, and a EMR, more So selling you are lot been on as And in number that received, they're set that going out for incredibly pretty new marketplace. you to in billing, liked

Jeff Garro

that helpful. thanks very for Great,

one the me, side. financial one for Second on

could You might but year further core have on retention the was past segment you how in comment I trends, in trend revenue think you that XXXX? hoping XXXX the performance general discussed in over and

Rick Poulton

about if the numbers year talked and you we a absorb and terms absolute bolus impacted attrition that about the a in talking started so that revenue. accounts bolus previous, years several lot made And Well decline our that for to dollar decisions we a was recall, in in came from year-over-year clearly in of XXXX, that expected that remember really we of XXXX.

And our many we their sometime that intent in of in perhaps, if XXXX. you XXXX in backdrop, in feel terms with how to will, about that. us the of and very so good notified was leave experience that people future, And number low

doing attrition to make make to leading is continue and to as drive proposition where going. And we our that's indicator retention about value our high best it. the can So across me, best we're as

So it. the revenue outlook that's the about I is - of in can number reflected guess for or expectation is why attrition given. otherwise reflected our you then tell that was impact the attrition I And

Jeff Garro

And rebound right kind think about the trend of fourth of segment think kind about we or so in full a decline. around core is in the quarter XXXX? a again, performance Or or to conservatism maybe think similar when that only that the should - year So and I utilization that there is that? the there in of from rate the pandemic continued about

Rick Poulton

of in expected of was And expecting current we kind that I represented X.X revenue said again, what about what said, is, I billion. Well, trends essence, continue. - a we're to

year. different than delivered that's we message last a So

in of So because last year, we this revenue about decline at talked attrition. a time, net

this year. of there outlook trends. us kind You're current We're that's an hearing with consistent not that saying is say

Jeff Garro

for the questions. taking thanks Understood,

Rick Poulton

welcome. You're

Jeff Garro

Thanks.

Operator

with proceed Our of comes your with next Halper line Please Fitzgerald. question Cantor question. from Steve the

Steve Halper

and one Sure, up. question follow one

So or XX is Sunrise upgrade considered normal for is version a there revenue opportunity customers that existing a there?

Paul Black

the but other features if they're upgrade fees They're based to license we cases, put surgery, client if our to us In on many their historical the looking it's of relationship, time in looking included support our to the or at, the it's move and center that center taking It's the from all you clients time time Sunrise at will, managers, round of to put we but in in portfolio, place in that where they then shouldn't they're asks really charges, really it's the full the ED, upgrade. this financial portfolio at. be not at rest as included. also to are monthly the they Steve. in time well help our the things look see though, chips encourage that's sure new to upgrade, there's sold make advantage only And have of them Typically put take to the out to to as time table.

that the that years solutions course helping of we I over And operating have result bolster family a the are a lot of us most for discussion. a have single that of spent venues all plus an spent clients of We in. eight that have record really gone and in we clients have as patient upgrade dollars all to Sunrise as the that's think last

Steve Halper

makes that And question. sense. Yeah, one housekeeping

You've for of the should given your assume expense we sheet, balance for what interest strength year? the

Rick Poulton

that Well, interest is we cash the debt bonds are have convertible so Steve outstanding the on only and rate X%. under

a So I it's I eighths seven of think. think point,

the goes also into some we place. is some line amortization the interest item when So expense What that's put from of in your costs cash renewal the facility interest.

work effect your so put non-cash an to also closer cost high get at place they like look incurred costs if rate straight then in offering. rules the in way you a financials, for interest bonds, the facility some charge there. of accounting some for a And impute debt So to convertible there's there's amortized, non-cash our those that's GAAP yield

So that's for in out we piece GAAP, non-GAAP. adjust that but

the the you of it's use cash a number just amortization combination if then some and So non-GAAP deferred costs. of financials,

Steve Halper

Thanks. it. Got

Paul Black

Steve. Thanks

Operator

[Operator Instructions] comes proceed question from with Our line with the Flox Jefferies. next question. your Please of Benjamin

Benjamin Flox

the on hearing environment Hi, you're in around kind the kind there the positions? talks the for of selling we're in first hearing good just clients' discussions How of the I My and stimulus what's about question. you mean, environment. the that impact thinking are package financial the Thanks marketplace? potential about afternoon. client one's

Paul Black

individual when going access this also is year people in be not clients knowing healthy material to very The ensure that But a interested and healthcare for this that have that be. and keen if last for have financially. healthcare administration will benefited year it'll to difficult I access that citizens payback that is pretty way, are relatively from to what to be the to believe healthcare, the in organizations

was they last year, two surgeries. will of year on had experienced, This better months ever that that mode expectation fundamental of the the these which all full hit. best May, US March, than to that my So because are a bit of because pandemic do healthcare close our be a we April elective not, That environment experienced. some shutdowns, to the is package time was were organizations two whether and predictable. then to of into were will by months ever did those just last July, the very had and mostly worst that including or been it organizations more that moved June continue starting stimulus By there's

don't So et component the with elective doing They're down consolidate health the Very extent anybody's They're important a do. we on clinical They're all client of doing from moving to the core perspective. can around more that what they around. extended everything an furloughs, predictability appropriate overall cetera. the costs. that least we makes on - we That's knock currently, wood, that it and - have much to shutting have now that surgeries. people

be costs amount what probably become manage scrutiny. than substantial historically. attuned every lot better they've able perhaps all a So being a And their that extraordinarily they single to line receiving is of to have had, item they

Benjamin Flox

it, helpful. Thank sorry, me? I guess hear Got - that's you. you can

Paul Black

Yeah. Sure.

Benjamin Flox

Sorry.

- the want like just out claim it set? I I data like Are is Veradigm, sub the who believe focused, assets? larger mean, to peers help to ambulatory you data some me that differentiation sets therapeutic kind is to the what data the areas? in I distinction Can understand, life of like, a help better have of to back Jumping there billion relative there's Okay. covered I it's lives? more - differentiates mean, market? the you specific just understand segments, of understand kind science, therapeutic targeting wholly

Rick Poulton

life it's companies beneficial longitudinal Well, a clinical research as why looking for is which itself. data manifest an set, a science are at very - seemed or it's companies condition to

prescribing coming largely their most from two, setting, it's Number largely coming opposed exclusively not ambulatory one. number happens from in that's client is So but to base, it the behavior setting. our inpatient as that

science also is valuable, that life our certainly to So companies.

it's up I is to limited mean, you pick how it what what - can how it? can value to its and to where Thirdly about in do And information claims the of information it's ubiquity with level linked other with isolation you you link information, significantly. has data It's do starts value. when it have

combination the so it's add plus to commercial have, of infrastructure kind is. around it, we relationships of that, what a the built all And of it collectively we

the get competitors more them that when value to their right that so to you I one points of And on know exclamation ask than of have them out you put when guess always help much tell not to information. sure is you from your how now, you turn something but to I

Benjamin Flox

the just could that at - Microsoft in to Azure save in all? some that. money sneak on internal the for I clients talked potential real cost Are If one move the you there cloud synergies quick about from on on

Rick Poulton

answer the a there of well, stage cost transition a be the moving there's environment, duplicate critical not as get In lot, folks we synergies. either. but into of Azure mass no is will burden Yeah, yes, an it's

a So there. we synergies come, more will mass get the critical of real and

Benjamin Flox

Thank you.

Rick Poulton

welcome. You're

Operator

proceed from question Eugene Please next of question. with Our comes Mannheimer your with the Collier line Securities.

Eugene Mannheimer

growth you would quarter? today And businesses top clients to outlook do gentlemen. you margin Thanks color XXXX. domestic be globally? finish Can that's the appreciate strong up in on I divestitures the give the how both share my the Thank customers the Sunrise of profile if around then post as line us you long-term Congrats two a fourth earlier. follow could count many you. and and a

Rick Poulton

we to we've base try than should attrition, take about shrinking is the allow talked you the into Gene of thanks appreciate that a to talked long-term that. grow better lot obviously we're grow. business and an outlook thoughts think There's to We've be obviously Well, in And rate we the guess that us for reestablishing about of don't for revenue that of projections. there. off which of. to want I the directionally now, growth variables you just gives warm a account have top I to areas

- our was your the at question, so I'm just for And I now comments leave that or part Gene. I second question sorry on that think of point there

Eugene Mannheimer

to Sunrise the client related base. They're

Rick Poulton

Yeah.

just to in And I say let's really we than this more that. be it's I mean, any okay. want So don't Gene, think the specific hundreds

Eugene Mannheimer

balanced including Is US overseas that Canada? and the across

Rick Poulton

towards still. yes, US heavily the all, but includes split on certainly versus US international It skews

Eugene Mannheimer

you. Thank Great.

Rick Poulton

welcome. You're

Paul Black

Gene. Thanks

Operator

back remarks. to we That's like have questions. for it Paul time all I'd closing the for Mr. to Black hand

Paul Black

up Thanks, Thank today. XXXX challenging an you been quite progress was multiple us and and wrap very our initiatives, otherwise joining has everybody, strategic for gratifying very in year. on To much. financial

your us sustainable and with a Our - relevant position to cost breath time today. of structure a very sheet competitive and provides significant much long-term creation. you - positions interest solutions, advantage and path for value balance Allscripts Thank strong

Operator

gentlemen, this today's teleconference. and for Thank you participation. Ladies your does conclude

have your this You wonderful a lines day. time at may disconnect and

Veradigm (MDRX) 26 Feb 212020 Q4 Earnings call transcript