NextGen Healthcare Reports Fiscal 2021 Fourth Quarter and Full Year Results

Rhea-AI Summary

NextGen Healthcare (NXGN) reported a strong fiscal fourth quarter and full year 2021, ending March 31, 2021. Total revenue increased to $144.2 million for Q4 and $556.8 million for the year. Subscription services revenue saw a 16% rise to $38.2 million in Q4. The net loss reduced to $0.6 million in Q4 while net income for the year was $9.5 million. Non-GAAP EPS for Q4 was $0.21, up from $0.20, and the fiscal year was $0.98, up from $0.83. Looking ahead, NXGN anticipates revenue between $574-$584 million and non-GAAP EPS of $0.89-$0.95 for fiscal 2022.

Positive

• Q4 total revenue increased by 5.7% to $144.2 million.
• Fiscal year total revenue rose by 3.4% to $556.8 million.
• Subscription services revenue grew 16% in Q4 to $38.2 million.
• Q4 bookings increased 13% to $35.1 million.
• Net loss for Q4 significantly reduced to $0.6 million from $4.2 million year-over-year.
• Fiscal year net income increased to $9.5 million, up from $7.5 million.
• On a non-GAAP basis, EPS for Q4 was $0.21, edging up from $0.20.
• Non-GAAP EPS for the fiscal year increased to $0.98 from $0.83.
• Cash flow from operations for Q4 was $22.5 million, an increase from $21.2 million.

Negative

• Net loss of $0.6 million in Q4 indicates ongoing losses despite improvements.
• Free cash flow for Q4 decreased to $14.7 million from $16.1 million.

NextGen Healthcare, Inc. (Nasdaq: NXGN), a leading provider of ambulatory-focused technology solutions, today announced its operating results for the fiscal fourth quarter and full year 2021 ended March 31, 2021.

Fiscal 2021 Fourth Quarter and Full Year Highlights

• Total revenue for the fiscal 2021 fourth quarter was $144.2 million compared to $136.4 million for the same period a year ago. Revenue for the fiscal year ended March 31, 2021 was $556.8 million compared to $540.2 million a year ago.
• Subscription services revenue in the fiscal fourth quarter generated $38.2 million, or 16 percent growth over the prior year period, driven by demand for patient experience-related solutions.
• Fiscal 2021 fourth quarter bookings, which reflects annual contract value, was $35.1 million, 13 percent higher than the prior year period.
• Net loss for the fiscal 2021 fourth quarter was ($0.6) million compared to net loss of ($4.2) million for the same period a year ago. Net income for fiscal year 2021 was $9.5 million compared with net income of $7.5 million a year ago.
• On a GAAP basis, fully diluted net loss per share in the fiscal 2021 fourth quarter was $0.01 compared to a net loss of $0.06 per share the same period a year ago. On a GAAP basis, fully diluted net income per share for fiscal year 2021 was $0.14 compared to $0.11 per share a year ago.
• On a non-GAAP basis, fully diluted earnings per share for the fiscal 2021 fourth quarter was $0.21 compared to $0.20 for the same period a year ago. On a non-GAAP basis, fully diluted earnings per share for fiscal year 2021 was $0.98 compared to $0.83 reported a year ago.
• Cash flow from operations for the fiscal 2021 fourth quarter was $22.5 million compared to $21.2 million for the same period a year ago. Free cash flow for the fiscal 2021 fourth quarter was $14.7 million compared to $16.1 million for the same period a year ago. Cash flow from operations for fiscal year 2021 was $98.5 million compared to $85.6 million for the same period a year ago. Free cash flow for fiscal year 2021 was $70.2 million compared to $58.7 million for the same period a year ago.
• Entered into a $300 million second amended and restated revolving credit agreement facility, that includes a $150 million “accordion” feature, which could accommodate borrowing up to $450 million in the aggregate.

“NextGen Healthcare’s achievements, during this unprecedented year, are outstanding,” said President and CEO Rusty Frantz. “We were decisive and kept focused on employee safety and meeting the needs of our clients in this challenging and transformational time. We leveraged our solid financial position, award winning platform solution and a resilient and well-equipped employee base to deepen our client relationships and gain new ones.”

Frantz continued, “We delivered excellent fiscal Q4 financial results, led by an increasing number of large wins and strong ongoing demand for our full platform offering. This momentum provides a great launch pad for Spring ’21 major platform release. This release brings forward exciting advancements, including our NextGen® Patient Experience Platform and much more as we detailed at our March investor event. In summary, we enter fiscal year 2022 with positive momentum, a major platform launch, and are well positioned to achieve both our corporate growth goals and increasing shareholder value.”

Fiscal Year 2022 Financial Outlook

The Company’s outlook for fiscal year 2022:

• Revenue between $574 and $584 million, and
• Non-GAAP earnings per share range between $0.89 and $0.95

Conference Call Information

NextGen Healthcare will host a conference call to discuss its fiscal year 2021 and fourth quarter operating results today at 5:00 p.m. Eastern time. Shareholders and interested participants may listen to a live broadcast of the conference call by dialing 866-750-8947 or 720-405-1352 for international callers and referencing participant code 8675815 approximately 15 minutes prior to the call. A recording of the live webcast will be available on investor.nextgen.com after the call. It will be archived for 90 days until August 26, 2021.

SAFE HARBOR PROVISIONS FOR FORWARD-LOOKING STATEMENTS

This news release may contain forward-looking statements within the meaning of the federal securities laws, including but not limited to, statements regarding future events including but not limited to the COVID-19 pandemic, developments in the healthcare sector and regulatory framework, the Company's future performance, as well as management's expectations, beliefs, intentions, plans, estimates or projections relating to the future (including, without limitation, statements concerning revenue, net income, and earnings per share). Risks and uncertainties exist that may cause the results to differ materially from those set forth in these forward-looking statements. Factors that could cause the anticipated results to differ from those described in the forward-looking statements and additional risks and uncertainties are set forth in Part I, Item A of our most recent Annual Report on Form 10-K and subsequently filed Quarterly Reports on Form 10-Q, including but not limited to: volatility and uncertainty in the global economy, financial markets and on our customers in light of the continuing COVID-19 pandemic, including the potential (i) slowdown or shutdown of preventive and elective medical procedures, (ii) delay in the contracting for additional products and services by our customers and (iii) delay in the sales cycle for new customers;

FAQ

What were the revenue results for NXGN in fiscal Q4 2021?

NXGN reported total revenue of $144.2 million for fiscal Q4 2021.

How did subscription services revenue perform for NXGN in Q4 2021?

Subscription services revenue increased by 16% to $38.2 million in Q4 2021.

What is NXGN's financial outlook for fiscal year 2022?

NXGN projects revenue between $574 and $584 million and non-GAAP EPS between $0.89 and $0.95 for fiscal year 2022.

How much was NXGN's net income for the full year 2021?

NXGN's net income for the fiscal year 2021 was $9.5 million, up from $7.5 million in the previous year.

What was NXGN's EPS for fiscal Q4 2021?

Non-GAAP EPS for NXGN in fiscal Q4 2021 was $0.21, compared to $0.20 in the same period last year.