athenahealth, Inc. (NASDAQ:ATHN) (“athenahealth” or “we”), a leading provider of cloud-based services and mobile applications for medical groups and health systems, today announced financial and operational results for the second quarter of fiscal year 2015. We will conduct a conference call tomorrow, Friday, July 24, 2015, 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, 2015, was $224.7 million, compared to $185.9 million in the same period last year, an increase of 21%.
- Revenue from athenahealth-branded services was $209.1 million, an increase of 23% over $170.3 million for the three months ended June 30, 2014.
- Total revenue for the six months ended June 30, 2015, was $431.1 million, compared to $349.0 million in the same period last year, an increase of 24%.
- Revenue from athenahealth-branded services was $401.2 million, an increase of 26% over $318.5 million for the six months ended June 30, 2014.
- Grew net new active physicians on athenaCollector® (2,114 physicians added), athenaClinicals® (1,127 physicians added), and athenaCommunicator® (1,670 physicians added) for the three months ended June 30, 2015, compared to athenaCollector (2,023 physicians added), athenaClinicals (1,151 physicians added), and athenaCommunicator (1,807 physicians added) in the same period last year.
“We continue to make progress in building the health care internet and in connecting care across the care continuum in meaningful ways. Today, we connect providers to financial results and clinical outcomes, to their patients, to new innovations, and to each other,” said Jonathan Bush, chairman and chief executive officer of athenahealth. “This quarter, we made marked progress across a number of priorities including our work to master the EHR user experience, advance care team coordination, and introduce new innovations across our network. While we have much more to accomplish, our trajectory toward becoming greater and bigger, as well as delivering value that is greater and bigger is established and improving the way health care works in this country.”
- For the three months ended June 30, 2015, Non-GAAP Adjusted Gross Margin was 63.3%, compared to 63.0% in the same period last year.
- For the three months ended June 30, 2015, Non-GAAP Adjusted Operating Income was $22.2 million, or 9.9% of total revenue, compared to $21.6 million, or 11.6% of total revenue, in the same period last year.
- For the three months ended June 30, 2015, GAAP Net Income was $9.3 million, or $0.24 per diluted share, compared to GAAP Net Loss of $2.2 million, or $0.06 per diluted share, in the same period last year.
- For the three months ended June 30, 2015, Non-GAAP Adjusted Net Income was $12.4 million, or $0.32 per diluted share, compared to $12.2 million, or $0.32 per diluted share, in the same period last year.
“Our continuous investment in advancing our technology-enabled services and results-oriented model not only puts us with skin in the game to ensure our clients achieve their clinical and financial goals, but it’s proven to work and drive our own success,” said Kristi Matus, chief financial and administrative officer of athenahealth. “We delivered another strong quarter and remain ahead of internal financial goals through the first half of the year. Second quarter highlights included record bookings performance in our group and small group segments, expansion of our enterprise segment with two academic medical centers, and growth in our network to over 67,000 providers. We are proud of the progress we have made to date and are very encouraged by our ability to continuously move faster, to innovate, and to deliver profitable growth.”
Our fiscal year 2015 guidance we released in conjunction with our fourth quarter and full year 2014 earnings call on February 6, 2015, is summarized in the following table:
We are not making any changes to the fiscal year 2015 guidance we released in conjunction with our fourth quarter and full year 2014 earnings call on February 6, 2015. However, based on our year-to-date performance and our current expectations for the second half of 2015, we are providing additional insight into our fiscal year 2015 guidance as follows:
- We expect GAAP Total Revenue to be at or above the mid-point of the $905 million to $925 million guidance range.
- We expect Non-GAAP Adjusted Gross Margin to be at or above the mid-point of the 62.5% to 63.5% guidance range.
- We expect Non-GAAP Adjusted Operating Income to be at or above the mid-point of the $75 million to $85 million guidance range.
- Finally, we expect Non-GAAP Adjusted Net Income per Diluted share to be at or above the mid-point of the $1.10 to $1.20 guidance range.
Please refer to our press release dated February 5, 2015 for a reconciliation of these non-GAAP financial measures to comparable GAAP measures for fiscal year 2015 guidance.
Use of Non-GAAP Financial Measures
In our earnings releases, prepared remarks, conference calls, slide presentations, and webcasts, we 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. Our earnings press releases containing such non-GAAP reconciliations can be found in the Investors section of our website at www.athenahealth.com.
