Apr 30 2010
athenahealth, Inc. (Nasdaq: ATHN), (the "Company"), a leading provider of Internet-based business services for physician practices, today announced financial and operational results for the first quarter of fiscal year 2010. The Company will conduct a conference call on Friday, April 30, 2010, at 8:00 a.m. Eastern Time to discuss these results and management's outlook for future financial and operational performance. In addition, the Company has furnished prepared remarks in conjunction with this press release via a Current Report on Form 8-K. These prepared remarks, including a supplemental document containing non-financial metrics commonly reported with quarterly results, are available within the Investors section of the Company's website at www.athenahealth.com.
“Non-GAAP Adjusted Net Income per Diluted Share.”
Total revenue for the three months ended March 31, 2010, was $54.5 million, compared to $41.0 million in the same period last year, an increase of 33%.
"We believe that athenahealth's strategic position has never been stronger," said Jonathan Bush, the Company's Chairman, President, and Chief Executive Officer. "Demand for our services is increasing and at the same time, a confluence of change and complexity is occurring within the physician market. For this reason, it is vital that we drive awareness of athenahealth higher to take advantage of these opportunities with increased investments in sales and marketing."
For the three months ended March 31, 2010, Non-GAAP Adjusted Gross Margin was 58.5%, up from 55.9% in the same period last year. Non-GAAP Adjusted EBITDA was $6.4 million, or 12% of total revenue, compared to Non-GAAP Adjusted EBITDA of $6.1 million, or 15% of total revenue in the same period last year. GAAP Net Income for the first quarter of 2010 was $0.3 million, or $0.01 per diluted share compared to GAAP Net Income of $1.5 million or $0.04 per diluted share in the same period last year. Non-GAAP Adjusted Net Income was $2.3 million, or $0.06 per diluted share compared to $2.6 million or $0.08 per diluted share in the same period last year. As planned, the Company's bottom line results were impacted by increased investments in sales and marketing as well as higher general and administrative expense of approximately $1.0 million related to the Company's recent accounting review and restatement process.
"We are very pleased with the Company's strong year-over-year revenue growth of 33%," said Tim Adams, the Company's Chief Financial Officer. "As projected during our Q4 earnings call, our Non-GAAP Adjusted Gross Margin expanded year-over-year, but higher indirect expense levels caused our bottom line profitability to decline. We continue to believe that year-over-year expansion in Non-GAAP Adjusted Gross Margins as well as general and administrative expense leverage will drive year-over-year expansion in bottom line profitability during the back half of the year. At the same time, we expect to maintain our investments in sales and marketing and believe that this expense, on a GAAP basis, should approximate at least 20% of total revenue for the full year 2010."
Key metrics and milestones in the first quarter of 2010 included the following:
- $1.3 billion in collections posted to client accounts, compared to $1.1 billion in the same quarter of 2009
- 40.0 average client Days in Accounts Receivable (DAR), compared to 44.3 average client DAR in the same quarter of 2009
- 16,369 active physicians using athenaCollectorSM at March 31, 2010, compared to 13,196 at March 31, 2009
- 23,978 active medical providers using athenaCollector at March 31, 2010, compared to 19,739 at March 31, 2009
- 1,867 active medical providers using athenaClinicalsSM at March 31, 2010, 1,275 of which were physicians, compared to 949 providers and 574 physicians at March 31, 2009
- Launched athenaCommunicatorSM service for patient cycle management on March 17, 2010
As of March 31, 2010, the Company had cash, cash equivalents, and short-term investments of $79.1 million and short- and long-term debt and capital lease obligations of $11.9 million.
Use of Non-GAAP Financial Measures
In the Company's earnings releases, conference calls, slide presentations, or webcasts, the Company may use or discuss non-GAAP financial measures as defined by SEC Regulation G. The GAAP financial measure most directly comparable to each non-GAAP financial measure used or discussed, and a reconciliation of the differences between each non-GAAP financial measure and the comparable GAAP financial measure, are included in this press release after the condensed consolidated financial statements. The Company's earnings press releases containing such non-GAAP reconciliations can be found on the Investors section of the Company's web site at http://www.athenahealth.com.
Source: athenahealth