athenahealth, Inc. (NASDAQ: ATHN) (the "Company"), a leading provider of
cloud-based practice management, electronic health record (EHR),
and care
coordination services to medical groups, today announced financial
and operational results for the second quarter of fiscal year 2012. The
Company will conduct a conference call tomorrow, Friday, July 20, 2012,
at 8:00 a.m. Eastern Time to discuss these results and management's
outlook for future financial and operational performance.
Total revenue for the three months ended June 30, 2012, was $103.5
million, compared to $77.9 million in the same period last year, an
increase of 33%.
"I am very pleased with our execution so far this year and our continued
focus on becoming medical care givers most trusted service," said
Jonathan Bush, the Company's Chairman and Chief Executive Officer. "Be
it confirmation of the Affordable Care Act or the results of our third
annual Physician Sentiment Index, all evidence suggests that cloud-based
services are on the right side of history. The athenahealth team
understands the growing cost of care coordination placed on medical care
givers today and remains focused on improving that experience in a
sustainable way. During the past quarter, we brought athenaNet mobile
with the launch of our iPhone application, expanded our service
offerings to include credentialing and eligibility denials, and expanded
our client training and support through the athenaCareSM
service. By listening to our clients and understanding their concerns,
athenahealth will remain better equipped to help our clients manage
change while improving their financial and operational performance
regardless of how their services are paid for."
For the three months ended June 30, 2012, Non-GAAP Adjusted Gross Margin
was 62.6%, down from 64.4% in the same period last year, as the Company
continues to invest in its newest service offering, athenaCoordinator®.
Non-GAAP Adjusted EBITDA increased 18%, to $20.6 million, or 19.9% of
total revenue, from Non-GAAP Adjusted EBITDA of $17.5 million, or 22.5%
of total revenue, in the same period last year. For the three months
ended June 30, 2012, GAAP net income was $4.2 million, or $0.11 per
diluted share, compared to $5.2 million, or $0.14 per diluted share, in
the same period last year. Non-GAAP Adjusted Net Income was $9.0
million, or $0.24 per diluted share, up from $7.9 million, or $0.22 per
diluted share, in the same period last year. See "Use of Non-GAAP
Financial Measures" below.
"We continued to enjoy strong revenue growth and increased adoption of
our service offerings during Q2 2012, rounding out an impressive first
half of 2012," said Tim Adams, the Company's Chief Financial Officer.
"Our quarterly revenue surpassed the $100 million mark for the first
time in Company history, and we continued to exceed 30% top-line growth.
Given this strong performance year to date, we are pleased to update our
guidance for fiscal year 2012, increasing our expectations for both
revenue growth and profitability. Thus, for full year 2012, we currently
expect to achieve revenue growth of 31% to 33% and Non-GAAP Adjusted Net
Income per Diluted Share of $0.90 to $1.00."
athenahealth's revised fiscal 2012 guidance is presented below:
In addition, our anticipated fiscal year 2012 GAAP effective tax rate is
approximately 45%-46%. Please see athenahealth's Q2 2012 Prepared
Remarks, published in conjunction with this press release for more
information on the Company's revised fiscal year 2012 guidance.
Key metrics and milestones in the second quarter of fiscal year 2012
included the following:
-
$2.3 billion in collections posted to client accounts in the second
quarter of 2012, compared to $1.8 billion in the same quarter of 2011
-
38.2 average client Days in Accounts Receivable (DAR) in the second
quarter of 2012, compared to 39.1 average client DAR in the same
quarter of 2011
-
35,409 active medical providers using athenaCollector® at
June 30, 2012, 25,001 of whom were physicians, compared to 29,482
providers and 20,824 physicians at June 30, 2011
-
8,558 active medical providers using athenaClinicals® at
June 30, 2012, 6,151 of whom were physicians, compared to 4,848
providers and 3,444 physicians at June 30, 2011
-
8,642 active medical providers using athenaCommunicator® at
June 30, 2012, 6,306 of whom were physicians, compared to 1,936
providers and 1,198 physicians at June 30, 2011
As of June 30, 2012, the Company had cash, cash equivalents, and
available-for-sale investments of $156.9 million. The Company does not
have any outstanding debt obligations.