NextGen Healthcare Stories Fiscal 2023 Third Quarter Outcomes

Raises Full 12 months Income Steering and Reaffirms Earnings

REMOTE-FIRST COMPANY/NEW YORK, January 24, 2023–(BUSINESS WIRE)–NextGen Healthcare, Inc. (Nasdaq: NXGN), a number one supplier of modern, cloud-based healthcare know-how options, at this time introduced its working outcomes for the fiscal third quarter ended December 31, 2022.

Fiscal 2023 Third Quarter Highlights

• Whole income was $161.9 million in comparison with $149.7 million for a similar interval a yr in the past, a rise of 8%.

• Recurring income was $148.7 million in comparison with $134.5 million for a similar interval a yr in the past, a rise of 11%.

• Non-recurring income was $13.2 million in comparison with $15.2 million for a similar interval a yr in the past, a lower of 14%.

• Bookings, which displays annual contract worth excluding renewals, was $44.8 million and included six offers better than $1.0 million.

• Absolutely diluted internet revenue per share was $0.12 in comparison with $0.08 for a similar interval a yr in the past.

• On a non-GAAP foundation, totally diluted earnings per share was $0.26 in comparison with $0.24 for a similar interval a yr in the past.

• Issued $275.0 million convertible senior notice with concurrent $40 million share repurchase.

• Acquired TSI Healthcare, a long-standing associate offering purpose-built scientific content material and a differentiated service-oriented consumer expertise.

“I’m happy to report sturdy execution and strong outcomes for the quarter. The crew made nice progress throughout a number of fronts, delivering income progress and demonstrating a disciplined strategy to capital administration,” mentioned David Sides, president and chief government officer of NextGen Healthcare. “We proceed to make investments required for long-term profitability and stay assured in our means to ship sturdy progress in fiscal yr 2024 and past.”

The corporate’s revised steerage for fiscal 2023, together with the TSI acquisition and the convertible notice issuance, is now as follows:

• Income is anticipated to be within the vary of $642 million to $650 million, a rise from prior steerage vary of $630 million to $640 million.

• Adjusted EBITDA is anticipated to be within the vary of $110 million to $115 million, according to prior steerage.

• Non-GAAP earnings per share is anticipated to be within the vary of $0.93 to $0.99, according to prior steerage.

Convention Name Info

NextGen Healthcare will host a convention name at this time at 5:00 p.m. EST to debate working outcomes from its fiscal 2023 third quarter. Shareholders and contributors might take heed to a reside broadcast of the decision by dialing 800-343-4849 or 785-424-1699 for worldwide callers and referencing participant code NXGNQ323 roughly quarter-hour previous to the decision. A recording of the reside webcast will likely be obtainable on investor.nextgen.com after the decision. Will probably be archived for 90 days.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press launch incorporates forward-looking statements throughout the which means of the Non-public Securities Litigation Reform Act of 1995, together with however not restricted to statements concerning our fiscal yr 2023 outlook, monetary and working outcomes, strategic priorities, progress initiatives and anticipated capital expenditures. These forward-looking statements are primarily based on the present beliefs, expectations, and assumptions of the Firm’s administration referring to the long run (together with, with out limitation, statements regarding income, internet revenue, and earnings per share). The phrases “positioned,” “proposed,” “potential,” “mission,” “count on,” “anticipate,” “intend,” “plan,” “purpose,” “search,” “consider,” “estimate, “technique,” “expectations,” “future,” “probably,” “might,” “ought to,” “will,” variations thereof or comparable expressions are supposed to determine such forward-looking statements.

Dangers and uncertainties exist that will trigger the outcomes to vary materially from these set forth in these forward-looking statements, together with however not restricted to: modifications in legal guidelines and rules relevant to our enterprise; modifications in market circumstances and receptivity to our companies and choices; strategic actions, together with acquisitions and inclinations and our success in integrating acquired companies; our means to take care of and broaden our enterprise with present purchasers or successfully transition purchasers to newer merchandise; our means to draw new companions and efficiently seize new alternatives; our means to develop and develop associate relationships; our means to draw and retain key workers; our means to anticipate or reply shortly to market modifications, execute our technique and handle progress; the influence of litigation and governmental and regulatory company investigations; the influence of governmental and regulatory company investigations; the event by opponents of recent or superior applied sciences; the timing, price and success or failure of recent product and repair introductions, improvement and product improve releases; the influence of the COVID-19 pandemic on our operations and demand for our companies; influence of breaches or failures of the Firm’s info safety measures or unauthorized entry to a buyer’s information; disruptions attributable to acquisitions of corporations, merchandise, or applied sciences; and common financial circumstances. Extra dialogue of those and different dangers, uncertainties and components affecting our enterprise is contained in our filings with the SEC, together with our most up-to-date Annual Report on Kind 10-Ok and subsequently filed Quarterly Stories on Kind 10-Q.

A good portion of the Firm’s quarterly gross sales of software program product licenses and pc {hardware} is concluded within the final month of a fiscal quarter, typically with a focus of such revenues earned within the remaining ten enterprise days of that month. As a consequence of these and different components, the Firm’s revenues and working outcomes are very troublesome to forecast. A serious portion of the Firm’s prices and bills, akin to personnel and amenities, are of a hard and fast nature and, accordingly, a shortfall or decline in quarterly and/or annual revenues sometimes leads to decrease profitability or losses. In consequence, comparability of the Firm’s period-to-period monetary efficiency will not be essentially significant and shouldn’t be relied upon as an indicator of future efficiency. These forward-looking statements converse solely as of the date hereof. The Firm undertakes no obligation to publicly replace any forward-looking statements, whether or not on account of new info, future occasions or in any other case.

USE OF NON-GAAP FINANCIAL MEASURES

This information launch incorporates sure non-GAAP (Usually Accepted Accounting Rules) monetary measures, that are supplied solely as supplemental info. Buyers ought to think about these non-GAAP monetary measures solely along side the comparable GAAP monetary measures. These non-GAAP measures are usually not in accordance with or an alternative to U.S. GAAP. Pursuant to the necessities of Regulation G, the Firm has supplied a reconciliation of non-GAAP monetary measures to probably the most straight comparable monetary measure within the accompanying monetary tables. Different corporations might calculate non-GAAP measures otherwise than NextGen Healthcare, Inc., which limits comparability between corporations. The Firm believes that its presentation of non-GAAP diluted earnings per share supplies helpful supplemental info to traders and administration concerning the Firm’s monetary situation and outcomes. The presentation of non-GAAP monetary info will not be supposed to be thought of in isolation or as an alternative to, or superior to, monetary info ready and introduced in accordance with GAAP.

The Firm calculates non-GAAP diluted earnings per share by excluding internet acquisition prices, amortization of acquired intangible property, amortization of deferred debt issuance prices, achieve on disposition of Business Dental property, impairment of property, restructuring prices, shareholder disputes and associated prices, internet of insurance coverage, which embody internet securities litigation protection, proxy contest, and associated prices, share-based compensation, and different non-run-rate bills from GAAP revenue earlier than provision for revenue taxes.

The Firm makes use of a normalized non-GAAP tax fee to supply higher consistency throughout the interim reporting intervals inside a given fiscal yr by eliminating the results of non-recurring and period-specific gadgets, which might differ in dimension and frequency, and which aren’t essentially reflective of the Firm’s longer-term operations. The normalized non-GAAP tax fee utilized to every quarter of fiscal yr 2023 is 20.0%. The dedication of this fee relies on the consideration of each historic and projected monetary outcomes. The Firm might alter its non-GAAP tax fee as further info turns into obtainable and along side every other vital occasions happen that will materially have an effect on this fee, akin to merger and acquisition exercise, modifications in enterprise outlook, or different modifications in expectations concerning tax rules.

The Firm calculates free money circulate as whole internet money supplied by working actions, internet of money used for the additions of capitalized software program prices and tools and enhancements. The Firm calculates internet debt as line of credit score much less money and money equivalents. The Firm calculates non-GAAP adjusted EBITDA by excluding internet acquisition prices, amortization of acquired intangible property, impairment of property, restructuring prices, shareholder disputes and associated prices, internet of insurance coverage, which embody internet securities litigation protection, proxy contest, and associated prices, share-based compensation, and different non-run-rate bills from GAAP revenue from operations after which including again amortization of capitalized software program prices and depreciation as introduced throughout the condensed consolidated statements of money flows. Non-GAAP adjusted EBITDA margin is calculated as non-GAAP adjusted EBITDA divided by whole revenues. The Firm calculates Rule of 40 as annual income progress fee plus non-GAAP adjusted EBITDA margin.

The Firm’s future interval steerage on this launch consists of changes for gadgets not indicative of the Firm’s core operations. Such changes are typically anticipated to be of a nature just like these changes utilized to the Firm’s historic GAAP monetary leads to the dedication of the Firm’s non-GAAP diluted earnings per share. Such changes, nonetheless, could also be affected by modifications in ongoing assumptions and judgments as to the gadgets which can be excluded within the calculation of non-GAAP adjusted internet revenue and adjusted diluted earnings per share, as described on this launch. The precise quantity and possible significance of those changes, together with internet acquisition prices, impairment of property, restructuring prices, shareholder disputes and associated prices, which embody internet securities litigation protection, proxy contest, and associated prices, and different non-run-rate bills, are usually not at present determinable with out unreasonable efforts, however could also be vital. This stuff can’t be reliably quantified or forecasted as a result of mixture of their historic and anticipated variability. It’s due to this fact not practicable to reconcile this non-GAAP steerage to probably the most comparable GAAP measures.

About NextGen Healthcare, Inc.

NextGen Healthcare, Inc. (Nasdaq: NXGN) is a number one supplier of modern healthcare know-how options. We’re reimagining ambulatory healthcare with award-winning options that allow high-performing practices to create more healthy communities. We associate with medical, behavioral and dental suppliers of their journey towards complete individual well being and value-based care. Our extremely built-in, clever and interoperable options transcend EHR and Follow Administration to extend scientific high quality and productiveness, enrich the affected person expertise and drive superior monetary efficiency. We’re on a quest to attain higher healthcare outcomes for all. Study extra at nextgen.com, and comply with us on Facebook, Twitter, LinkedIn, YouTube and Instagram.