athenahealth second quarter total revenue increases 33% to $103.5 million

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.

Comments

The opinions expressed here are the views of the writer and do not necessarily reflect the views and opinions of News Medical.
Post a new comment
Post

While we only use edited and approved content for Azthena answers, it may on occasions provide incorrect responses. Please confirm any data provided with the related suppliers or authors. We do not provide medical advice, if you search for medical information you must always consult a medical professional before acting on any information provided.

Your questions, but not your email details will be shared with OpenAI and retained for 30 days in accordance with their privacy principles.

Please do not ask questions that use sensitive or confidential information.

Read the full Terms & Conditions.

You might also like...
Strategies to overcome social challenges in cancer prevention