ATHN - Earnings call transcript Q2 2018

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Operator

Welcome to athenahealth's Second Quarter Fiscal Year 2018 Earnings Conference Call.

As a reminder, today's call is being recorded. At this time, I would like to turn the call over to Dana Quattrochi, Head of Investor Relations for athenahealth. Please go ahead, Ms. Quattrochi.

Dana Quattrochi

you us. thank and morning, for joining Good With Executive Directors; Chairman the call and Jeffrey Immelt, today is of Officer. Levine Chief me our on Marc Financial our Board of share today's brief we've On this then questions. and will afternoon, and Marc Jeff published highlights the prepared call, from remarks take we will as forward-looking XXE everyone the meaning the of the XXA of We remind statements Act as during within that would of like Section this amended. statements made Act amended of Securities Exchange XXXX Securities certain of to conference and call are XXXX Section fact All exploration statements, statements future. and improve other position to of made expectations operational than our during experience regarding our customer our for statements the the operating conference statements for forward-looking efforts create of market are and new financial client our value, and historical strategic performance add call features management's and and future this alternatives including expenditures, environment,

may, with of Forward-looking anticipate, these identified negative statements estimate may terms. the upcoming, be as words expect, similar and believe, plan, or terminology will, such

are website XX-K which under on the the Commission, and periodic other and reports our at differ could Form contemplated on recent are uncertainties actual not These are most and website Forward-looking www.sec.gov. filed and section on future beyond performance of of to Exchange control, of those include and the www.athenahealth.com report uncertainties, heading Risk a our guarantees in variety our these which of the Factors forward-looking are promises risks SEC's to which annual at with Securities those or results and statements materially risks subject from Investors in many cause statements. available

long-term by as compensation that measures exclude as undertake except as financial today's items speak financial such law, and that to or trends, XXXX these note to performance GAAP available release items call, obligation certain a reconciliation the these will order from refer consider Please update We forward-looking to financial in a GAAP. stock-based of and to of to on GAAP certain supplement quarter which measures hereof, impact on determined may measures to our non-GAAP noncash results. the believe our date only with wish announcing financial today's nonrecurring press investors second revise financial our to short-term or results we website, www.athenahealth.com, understand we results. refer statements properly of in accordance statements. no non-GAAP Please our these Forward-looking as our required performance we in for

we we on our please that Marc. On Again, revenue revenue this January our information quarter reconciliation based available refer results. to turn over now financial XXXX release call previous press standard. recognition I'll today's historical and standard revenue on impact of against new for results both financial comparability as to additional our XXXX. the on of the adopted announcing new second results and today's allow the Finally, the a to that, new website, between for With recognition well standard as presented please recognition our prior www.athenahealth.com, new to as X, call, note will standard discuss results,

Marc Levine

that well on focus critical the was clear quarter, but you, direction, easy quite explore in in acknowledging on performance solid process had launch would midst strategic and a business Thank and to by been our team eventful the the the up been start have there leadership alternatives. team executed and stepped uncertainty, included to entire of thanks of everyone, like I'd delivering changes organization for providing this remaining to make for renewed have the excuses slip priorities. entire It during what Good joining the results leadership us Dana. today. afternoon, focused athenahealth business and an the quarter and

our our we company result, outlook experience on performance, focus most year on On our and second well for our aspects the a build on will to our as the care. quarter of as intense call, as discuss this improve the culture. with remain our fix positive customer to year financial plans unique track commitments, deliver health today's As we a

on will share to minimizes Jeff Board strategic of Directors' some about our Additionally, comments business. efficient explore alternatives an that process effective and focus disruption overseeing to our

a our solid First, We that top with standard, second let begin of recognition results. with Total achieved was as new in revenue presented revenue, was line million. under internal our me growth quarter plans. review the line $XXX

revenue revenue new standard prior impact grew to For QX the $XXX company of year-over-year to versus purposes, XX% of million comparative total year. last

in the progress GAAP year, the second was efforts operating improve revenue to operating year-over-year XX% increased and new to million $XX continued $XX impact $XX to the last increased of of million. quarter. $XX income, made also during presented, Prior to million GAAP to compared operating non-GAAP profitability. We in standard, our as million QX income income

our solid quarter, Compared last on athenaCollector year, During providers number network. of we growth QX the second XX%. the drove on of to increased

customer quarter. are have we saw to success to actions pay increase Promoter for accountability of to improve service taken again issue delivery beginning The Score focus on our delivering we our during Net off. we As and internal the experience, continued higher resolutions, great drive clients stabilize the second

with team. consistent this Net have Score, the the we the mid-quarter, recognize company retention in happen. With demonstrated execution experience, expectations. with on do to bookings announcements customer making we teams line outstanding sequential our client more improvement and the QX in We by to are the sales our focused Again, improvement Promoter saw in ensure good

recognized During We to $XX nonrecurring. year of indicator report QX last This of the $X was million $XX visibility future million in million $XX which which million and was $X to of and $XX compares million line to recurring quarterly nonrecurring. million of business quarter, one bookings total provide in top recurring of bookings, bookings we second revenue.

into due soft or given can booking on focus to in also the Reading the mix discussed large can any too quarter, strong quarter be quarter bookings Consequently, of in we be deals As trend. last one much misleading. the lumpy period.

on requires to our on continue the offerings. us to quarter value solid field core of downward the this recent While focus executing expanding showed sequential the trend and improvement,

our me a more strength XXX% X% Let QX services. results. color core saw enterprise were over on continued approximately as down And medical bookings we ambulatory booking little relative bookings versus group declined prior Independent give in while year-over-year were to the We up year. the you sequentially, experience they target slightly the those hospital market. fewer hospitals broader see we where bookings the before of focusing numbers relatively deals overall down maintain be and in small. positive up were segment market. the segment, the we remained In year-over-year strategy on as customer will move the Hospital large

second the While with quarter, new service features half and that we're improvement looking experience to on on of ahead this XXXX, focused to bookings remain we customer our execution to work sequential improve the the value continuing pleased and add in continuing proposition.

made road of second map. that effort, quarter the part As progress product and we during technology on our

our records results off I'll XXXX, and our deepen in million more interoperability our committed build distinguish as with connected like providers patient double-digit continue in growth like care. we're benefit our recognition grow now and caring XXX,XXX authorization service further More retention services delivering executing management on XXX client sharing, to do athenaNet, that we're review all based doctors to most in in strive in their our standard. our network of revenue needs, and efficiently our I'll record eliminating the work people deepen matters as year billion to driving help seeing and $XX client our plates more our there momentum to Throughout managed clients' spend past We our patient continue our more enabling across and Today, in their detail, ways taking on health approximately committed on and results new on ever, initiatives alone. plans growth to nearly strengthen were network. what network. by service, year-over-year and begin clients to we're areas. and the these to are athenahealth time presented capabilities our nearly Initiatives drive more these the and platform, of We with real-time meet businesses And additional administrative customers' network collections free for financial to run than checks. patients.

gross was $XX standard income GAAP quarter, During historical revenue, $XXX to the $XXX share. enable revenue second net prior total operating income total total and recognition against diluted I'll or the $X.XX was of per now $XX was GAAP was million results or comparability profit XX.X% million or million. revenue the million impact new GAAP results. XX% revenue. of our discuss to of

revenue GAAP up XX% the declined points XX%, XX%, year-over-year XX increase in in same second quarter of XX% Epocrates last quarter number gross year-over-year. athenaCollector providers. due margin of during second revenue Nonrecurring by million, for XXXX. XX.X% $XXX a Recurring driven was to quarter the from an in of the bookings increase a year. decrease was mainly basis revenue grew Our

expense XX.X% our and line we percentage the sales research $XX in to our research as half in development sales million and services. to of On $XX of $XX $X well marketing initiatives marketing in platform development in by core expense and as primarily launched the during million network year-over-year and QX and second to XXXX due of year-over-year came XXXX. spend, basis, related compared items, in XX.X% the and lower compensation QX, second cash revenue, year. our GAAP million last GAAP million at decreased services, a to quarter cost at driven increased as Looking commissions investments expenses a efficiencies reduction to development

expenses decrease primarily to administrative lower year-over-year general driven declined by $X million This consulting $XX GAAP our Lastly, spend. million. was

XXX% $XX or operational the $X.XX $XX $XX GAAP second GAAP compares to standard. results second income impact increases or $X.XX the comparisons, per our of net We in earnings. income during per prior improvement of year. non-GAAP now to generated GAAP execution, we recognition diluted million share, a share diluted generated the of the the of net Moving To recorded quarter million $XX I'll of And quarter, of provide during reflecting to year-over-year last QX continued prior million versus enable new the million a income year. in which revenue operating

line And margin gross margin XX% increased was last non-GAAP Non-GAAP to initiatives. quarter million, points top our year-over-year and Our QX second by basis driven expense XX.X% non-GAAP of the savings income in improved as XX.X%. year. operating compared to operating year-over-year QX XXX XX.X% $XX growth during to

earnings before amortization. taxes, interest, and at Looking depreciation

million up second non-GAAP per basis from diluted $X.XX of non-GAAP income $XX $XX share our Our QX of in non-GAAP And XX.X%. per up million or the year-over-year, share XX% year. during the was XXX in diluted $X.XX generated period last $XX quarter, the or quarter EBITDA we net expanded to margin and million EBITDA points same

free and and margin continue flow. generated million We operating operating and cash appropriate an revenue to in cash balance between of invested expenditures. flow in million Year-to-date, $XX seek million $XX software we growth, $XXX capital capitalized

flow, less generation compared This the a defined million as June six of $XX flow first of an outflow Our cash XX, $XX was months improvement an of free last year. flow purchases, of capital inflow months cash million cash in free million XXXX. during of $XX ended operating the to net six was

our guidance. to and for we're our performance now year outlook. XXXX financial the Turning updating year, of second our financial fiscal the Based half our year-to-date on expectations

midpoint. slower recall, operating midway behind of than consistently we the began guidance year. you'll and affirm that our guidance six investments narrowing revenue raising wide as very range midpoint year we As our guidance, months to we're are tracking the the to now our With we're for anticipated. ramping guidance gave of And a range margin through and revenue as continuing us this

in our guidance customer original are we comparability expect platform allow continuing cost mind of our revenue plan. indirect following support prior the for impact as is to well recognition behind to to year research investment our services to slightly keep prior to against and standard Please experience, work in the new invest the full do results. deepen that While improve year development the our to we continue fall and as to

to $XXX to $X,XXX,XXX,XXX We're non-GAAP to million guidance to the XXXX new full to expect $XXX revenue or within or to of recognition of introducing XX.X% of operating of revenue. and $XXX X.X% under For be be $XXX to fiscal income the XX.X% the GAAP revenue, standard. range financial year revenue the be operating $X,XXX,XXX,XXX, million million within income to the within range of also a XX.X% year, we range million

be revenue. we $X,XXX,XXX,XXX, income within call new $XXX financial revenue. brief year, presented million the range XXXX, within million And full standard. XX.X% the process GAAP to under as of the For the million to the year operating be to non-GAAP range to to I'd XX.X% as business fiscal or income $XXX to be expect $X,XXX,XXX,XXX update operating be to With ongoing the on or will of guidance explore like Jeff to recognition only XX.X% revenue within XX.X% range our to of to in million that, the $XXX on $XXX Starting comments some well to over results and strategic of revenue turn alternatives. for a our of

Jeffrey Immelt

has that begin and I Executive Executive thrilled employees Chairman Chairman, making of be clients. years, I'll that has believe of the certain care the company experiences team. a I'm and mine spent uncertainty. a as passion a than great disruptive Since by saying of Marc. lead closely changes that athenahealth of more on engaging been of the and Thanks, and the undergoes to taking Any working improving time management here and related technology with the degree Advancing for health change athenahealth wave across with role type I've athenahealth we're at industry. opportunity to next XX

to very other have faster during athenahealth However, team improve company. and where proud overwhelming better, one for do the Marc been working team and we're optimism athenahealth rest our the been accountable. and the time rallied know headed. innovate the our opportunities strength win about each more on align we the closely hold how of has entire market, sentiment of priorities, execution and most and a leadership and We the of with together our and with busy I'm important in of to clients has confidence the I've employees things

that about Our and there's I in and embedded the month notwithstanding taken value announced deliver strategic board plans this resilience demonstrates believe briefly growth the positive and our alternatives. to last strong I also second on we quarter been company, to performance have ability actions The to the to explore commitments. enhance profitability. want significant speak

engaged our evaluation shareholder in enhance release, press X alternatives fully of we're on As June to announced strategic a thorough value.

an of While sale, time completion we on platform. company. care of This realize as set other moving a focused yet transaction a this definitive continuing exploration company well athenahealth independent number have we including as and the options, process, full the value of as its potential the to as a purpose we're merger involving not technology strategic unlocking process for positioning or is consider health line with premier

this, will aggressively continue. and do clients to moderator drive our unlock back athenahealth's company I'm we meantime, focused to our the As it the our we that, value positive for work In call shareholders. change remain to I'll confident executing in conference turn on for With Q&A. XXXX over commitments

Operator

Instructions]. [Operator

the question first ISI. Muken Ross comes Evercore Our of from of line

Unidentified Analyst

Suzie [ph] is Ross. This on for

you see on How have few organization been to And and pretty to eventful good multiple us typical the the share sequential these half of terms is a that'll nice the the the to model the responded expectations has So appreciate months can in of the with changes. a other strategic results. balance announcements? then follow-up the year? management seasonality in first around second and anything there bookings. last help than But uptick It's the color given better half regards

Jeffrey Immelt

So one, I , Jamie the team Marc, give I'll do why very don't first rallied would really second here. the say substantially has I one. and the you Suzie

And results. quarter senior Clearly, see are the management industry. we've leadership the that of really They there's and the of in change, seen driven. athenahealth think the second the really company I team You at think but I purpose love the lot can and quality a rally. the team

the and shows seen on up we've and great stability that And results. response, again, so good

Marc Levine

as Marc. I the echo given good you would the in of quarter, all we sequential and out, that. second bookings. events The pointed said, -- solid This QX think a you Yes. delivered in showed, I is as improvement

your bookings. Regarding for full for your question year didn't we half with respect just -- second for going the part offer guidance second don't the half. -- guidance the to we not second to any bookings, any offer We're of

Operator

Our line the of Wells Stockton next of question from Jamie comes Fargo.

James Stockton

the of of here. year-over-year. on but comment fixing was you might are those caught some customers. undermined by that picked deals you still status lot what's pickup have that call large the about partner you sounds piece issues? Just reductions sequentially. it still on was of aren't the happening, I maybe last the guys you one up lot with said Could headcount are Marc, year, down bookings guys QX another channel existing that expanding then know that that of the been guess, happened I late like, from relationships existing the largely it And that enterprise talked I bookings on customers? there a touch a

Marc Levine

so mainly first the deals large on new Jamie, the Yes. customers. large deals, were

So you'll pickup We real this quarter. a last was that large were was recall, signal quarter. There that good us. it for this didn't some see volume deals any see good to as quarter so

are reps to The where, I moving own momentum. right direction. it's but think, want done, the right see necessary the between and in ultimately, partners, making the talked a would time smoothly. you little model any make the I that of their sales a is about in to second the last it as team to reps, partner Regarding takes whenever the in the get in operations as those your channel direction. relationship describe positive get to the And certainly and think we move I quarter, I saw channel think recalibrate and change to for start it connections what quarter, team, wouldn't I it describe our I business running people we bit think it I it's sales go-to-market direction,

Operator

line America. Cherny Our Bank comes question of next Michael of of from the

Michael Cherny

volume perspective? how price book what of clearly same-store your and you're still about core, You business previous that going activity, a talk terms in What's going bit growth on you're as market? talk a bookings from to at about base there, had? your growing the the of be they're As of about type doing book talk think else about think your about go-forward you've you basis, from the you What years. from And how customers always in clip a are pretty little see should but below client you the growing business? healthy getting you do you pickup. Can think trend what across of a

Marc Levine

Look, Yes. is was for was about Recurring quarter, collections. healthy. XX% is that And We the activity I the solid fact Collector the quarter. a talked with provider think Collector base signal. increase in XX% XX% base was that good provider base, business the the remaining certainly for up up revenue and the

that's think, rate. is to So be. stability, grow in to the a think to the we of to expect the I quarters it in where prepared bookings healthy in us maintain indicated with we several over It's And continue. line the and expected kind and seen that numbers, retention remarks, as past up really, continue I we'd we've the those to retention

me some base. So all stability for of things the in those signal

Operator

Goldwasser from Ricky question Morgan line Stanley. comes next the of Our of

Rivka Goldwasser

So the business? the cost And cutting How the biggest of the were continues about to savings? exceed margins we think for our sources should operating sustainable what expectations.

Marc Levine

took see driven that you in that at and last process are at this from So the actions carry business. we cost the the to related really that reflected end ran Most the savings in into really the this of we the structure year. of point passives year early Ricky, forward were actions

the the we as initial So any to baked material see of the reductions of into continue of were that result the R&D. about, be you more We be an way we to development. our think at actions They're related beginning perspective, going We've wouldn't financials. do some product into talked to that's right that. year, grow R&D business expecting up to program. and that From ramped significant savings the to we forward, going the a reinvesting

are see that's that well one in some that to growth. going that investments showing as make we results. necessary as that on is You increase the P&L area just new the platform, continue We're to sales to the think the out in as can see market. products to for we going bring the team work rolling continue that rearchitecture can those It's

Operator

the Piper Sean from of comes Jaffray. question next of Wieland line Our

Sean Wieland

you're So be in focusing on days segment, said bed you the where will were and said down hospital positive. experience customer you

your So the strategy. thinking into latest just segment an fits on hospital wanted to the how get update broader on

Marc Levine

a bed Yes. were actually Sean, so year-over-year. basis. on sequential up XXX% flat They days were

during the So brought we eight quarter. live added we -- new hospitals

a it As make but we great about the we're can still that to that well hospital is a and our sure before, make we to, customers we that talked committed experience. do sure want segment segment customer have

until focused and that feel do that certainly on have share. good going some hospital we it segment And smaller good customers then in, we're we that market market move relatively we're experience successfully just the get in. the So not really and we're to we can upstream take

Operator

Our next RBC. question comes from the line of George Hill of

George Hill

you Marc, change guess, there I has talk can churn you any of the comments quarter? rates? any success how can or on the was strategy guess, impacted the not about I in process go-to-market and retention kind during whether provide And client

Marc Levine

some The where think from Yes, of direction. scores I rate right mentioned, right saw we We churn, the movement churn in tracking with -- quarter to is our actually be. it another in the customers. George. in good NPS We expect our we're line as

now going So best direction right of moving that's in probably the of for our us, forward. leading and quarters several indicators one retention it's in improvement

look the then really perspective. team and team. things retention good organization, So sales are a from having how yes, kind go-to-market we that's of from the actually And go-to-market response

and them in them. whenever finishes team quarter, a Concern, I the that behind that tailwind pretty they with are felt I in strong, very I and energized. going it's the supported events quarter, the they finished middle good think happened company got them a the obviously, the they of strong but whole sales forward. And think behind think

in it showing have least QX. up for we confidence seems results a what they're to lot the So the doing, team, that and -- of at go-to-market be in

Jeffrey Immelt

These the goodwill And confidence mainly Marc speak said. clients. to There's with the XX for team probably now chance think our in are athenahealth. has for and me. think well are to our known had clients. market echo or tremendous support that tremendous from I'd I Marc's XX I the to people point, right great great commercial I've what company, support

Operator

the is Sean Dodge of question Jefferies. next Our line of from

Sean Dodge

Maybe one term. longer got any and on a I being margins the talked come savings longer margin thoughts still belt. ramping targets mean, quarters. the you I Marc, or from Do now in over under reinvestment you've reflected fully or term your have about margin coming on guess, to R&D initiatives cost couple of what trajectory quarters should you could be?

Marc Levine

you the this What sure to expansion margin our for look, picture client not places while. and direction, end anything we're in it activity, going of clearly, I for going we up. to to we're ability -- interrupt margin interrupt not of we we've important out a but priorities sure platform right. most to I we to products to make signaled that opportunities it increased on figure what is get want really yes, we go-to-market new are. something here out and about that the experience Those right perspective, thing the creation, are that those business forward value the roll So make want talked doing has think haven't our to do moving value creation not Sean, now, I the when think where going about the in right continue from and and potential interrupt going that that are to business that that's going to work the

ways but not of that's to So at we'll to land kind continue this going going at can look to to always continue margin, ready call that We're look it. we're we point. where at expand to

Operator

next line the is Hooker of Donald from Our KeyBanc. question of

Donald Hooker

gap add So in could your P&L? that maybe maybe all service around you small what can in on acquisition make offering? like Can management May. a filled financially kind of anything contract elaborate elaborate And the you -- maybe on you -- you to made that looks did

Marc Levine

Yes, sure.

it describe said, It's a It it in capability added. a it's on to immaterial just a would functionality, as very we that functionality we but you the not small acquisition, pretty that value As We the was just But it in a right Don, now. did deliver was action managements. little really May. financials I the a we contract focused really feel And the tuck-in we to of took, going we're wanted to forward company our that impact in think say fits perspective with bring market. material to what strategically customers. it from

Operator

from Our Oppenheimer. the of Naidu Mohan next of question comes line

Mohan Naidu

guys one new right in that? on you flat you And like It looks more what What follow-up is but just segment. the small causing hospital quarter Marc, quick or eight hospitals attrition. days had attrition the to are seeing doing bed now? this change

Marc Levine

the on a small is basis. said, sequentially and I it's relatively Yes. up small We're Look, were and year-over-year numbers, bringing hospital we haven't you as business that live, right -- these The now talked a about attrition in the growing accounts pretty mentioned still space. base. The Mohan. in off days, bed we're flat base

really now you even discharge can that movements So they base in swings I cause have installed have hospitals days. These are we're don't of right the bed big census numbers. small and in, can think activity within small that

So census in a still on in hospitals it these sequential small bed to a will move days base discharge a in take lot basis. a numbers for small result with

So I read than don't that this at in would it think point into time. more I

Operator

line comes the next Our David question Leerink. Larsen of of from

David Larsen

that in some like of be the some also you or checks? you about pop on you then in solution, cost bit Are last little product, or adding I Coordinator fully year, along health benefit staffed like touch force? functionality the there adding think new may reduction late enhancing that How mentioned real-time that Following process? not? the a can sales And talk the you you you're far products the are some that you Can sales back. guys

Marc Levine

sure. Yes,

So -- actually the from right with a staffing perspective, we're team. pretty spot sales good we're in now

experienced we've so actually team out the sales stability market of now. tenure mentioned, I right force had and The stability. is up, we actual our As in good there got

good pretty that. feeling we're So about

it I earlier particularly for fact little still that quarter reasons. the and made that out think on believe a made. sales little points to go-to-market the And in we be last just you we and channel I've takes little disruption, time a new right the when in But partnership forces sales make touched made bit a the mentioned bit team, in in the of to connection changes the we model, all activity. and between we that the our this I that that what changes disrupted call, individuals some on between market, rebuild our just team that

we're So for, still looking seen what that's some we've improvement. and really

As better, a continued but -- an March. getting perspective, say, it and update had -- we released From let's product early to we think a look, products rollout, the yes, of it's I -- late said, major I much strengthen. in

update our completed month just also product there. We this just get to latest out more

-- the products put think, that they being far, being I are and the so enhance well value in received, the we market. proposition continuously

forward out think getting making will is team R&D out, So and great in that investment some is these I we a been customers continue to that these The products. in my job roll responding. perspective the we've forward doing go saw are that year. I rest the from we some to some we look that and we the second as And seeing strengths think of quarter, in of

Jeffrey Immelt

small the change really high the to during and impacted add was traction which said. group most probably from quarter. the the showed year, Marc last would think some second I Win rates I segment, what remain

commercial think, So engaged team is us hard. things, all I in make like driving those the feel really

Operator

Nephron is Research. Our the from line next of Eric of question Percher

Eric Percher

board's leveraging unlocking the opportunities the of Jeff, a athena's an your the alternatives And question that's Are as view and that is you public regarding like mission? the of to what I'd a about value thinking hear you key your standalone as Or the market? then value and today. platform? see do reflected in platform. on to the comment to accelerate this obtain not opportunity

Jeffrey Immelt

independent really about or what think limited a strong say, it's to Look, Eric, company. potential process initiated There's we will look, the good I I consider an it's sale can feel a I we've would that. in company, -- whether interest I'm that -- all outcomes for remaining and and athenahealth, say,

a we can platform. delivered, think the of this match. would things is, I me a that I and is, can asset terms unique health very as how which go unlock our has we we'll think deliberate to the our is best deliberate way. have doctors that way, approached value say really for gets see appeal are that extremely and that care there in the door the in really, athenahealth look, we footprint few And lot in value is front care, we health how in people in and of what the the I for of of What a call essential a that can process being through valuable very very clients investors think for team. really assess really And process I the one

Operator

line question Baird. comes of Robert the Matthew from Gillmor of next Our

Matthew Gillmor

process. as on I concerns a of Similar part question some to what's the feedback met been what of you of review their provide process. that. could have and the Jeff in mentioned questions you've details hoping review terms was been athena for had their or that clients lot with

Jeffrey Immelt

they Look, think a all again, -- the And and long team. athenahealth the all time, read Jonathan for they've they I they've known know newspapers.

have and we about they support specific do going we better they And have how get an make think initial of -- needs can a see very then job can them platform. like the and the more we strategies their into for I own quickly productive, we that. we curiosity company how their of the supporting how how things forward

-- health care it's think analysts. are look, all you I guys, guys So

of amount change are seismic You on changes just underway. that the of the going of kind industry amount the that's big in and know

about clients So their have they going through forward. the thought all own best process our are of business model going

athenahealth And team, earlier I you the is the think at like and much so our echo they a what for I role this I which the said the industry. would of clients support as in play the athenahealth they care But industry. we look tremendous just very platform, understand being health valuable changes part on, have

Operator

next Sachs. of Robert question line comes of our Jones the And from Goldman

Nathan Rich

and just Nathan decline population And more is could level, quarter? lives just about for high about maybe health drove you in position maybe you talk This of the on overall future for need demand better in the what the level Rich Marc, of Bob. the talk do what market. think line of product to in this seeing to offering the kind the this you're you in kind

Marc Levine

Yes.

a is need clearly deliver in. it's lot we're It's wouldn't one pretty some small one up business investing conclusion we a up wouldn't sure departing. just working committed I to that signing terms off in tell just that material or do two you customers or small for case. health working movement a anything part customers a other. now That's moving trend right of I just either what we to our one we get space down solution population the be that to We value. not movement. in it's We -- execute or to But a base or we're -- to there. capabilities, make the that's that too business, space. customer, look, the right good pretty think that to to and to still read that in make not we're with up need and a us a it. So adds so that way jump I seeing the We're sure small piece We're for piece that of can down some of can we product of into us get now

Operator

[Operator Instructions].

from Citi. comes the Stephanie Our question of line next of Demko

Stephanie Davis

And follow-up you'd verticals one. left? to how the a where it's you And headcount But and developer prior past quarters? to then to few one, fully attrition like give the how as in to can progressed us get maybe on what much need you to would your follow-up hiring an be? workforce A update is that the it

Marc Levine

Yes. to is hiring one where talked and I the space. investments trying the about, we're R&D most make part, as mean, the really make investments we've in Look, continue place to the for

our work. months We past continue where there. of to -- classes had of out we're start we've the the just be we Yes, had will new to -- that that So one good to market the hires. we've response biggest in had past openings the in

given certainly news couple see, So to that especially good past of all interest the the that's we months. generated in there's athena, over and

what touched But mission that's signed people to doing, it frankly. focused kind know And there's given of on. attrition, think grow about running the in So the the From continue set back athena to people team priorities of what -- and feel over we that look, company's of have a space move lot tell that kind to them R&D of have see good got materially opportunities it's comes here. bring We're what still the we're bit continue demonstrating of I the and they say perspective, really you, and we're people past an on. lot the that a the would to going here when the I why we've and we Jeff and of employees, on, a generated surprising company, news changing that what that at and think doing we attrition letting bit of is lot on And a stay got in pause could business, a I what you a of a couple job months. and we're do. aren't work with of quite to we as -- haven't nice we even doing communicating seen a know significant

Jeffrey Immelt

I've as and would Austin of know has to sites CTO, Marc addition I really our Boston. chance India Atlanta said. the what I visit up standing in in had done Prakash, well. also a echo great to job

going talent been by technical technical impressed I think and the well bodes execution forward. that I've recruited, So for we've the it

Operator

the like Immelt, to to closing remarks. for And over back at this time, I'm showing Jeff Chairman, no conference Executive turn further questions. I'd

Jeffrey Immelt

much. press Good our athenahealth release. the in second value, Again, the marketplace team. The you've the shareholder seen very athenahealth the about continue position the support to is clients Board really today. great the quarter increase deliberate and Strong Thanks process team. being questions for drive Great. has with really to

want I'd great of to here efforts. to disruption. I we out a has done fantastic say again, of their athenahealth at job like to the time thanks team depart, to, during this just Before do them shout great all a for who

So thanks see much, Dana? and time. next very Right, you

Dana Quattrochi

That's right.

Jeffrey Immelt

Good.

Operator

This Call. XXXX concludes Fiscal athenahealth's Quarter Earnings Second Year

You may listening. disconnect. for Thank now you

Heliogen (HLGN) 31 Jul 182018 Q2 Earnings call transcript