Allscripts Healthcare Solutions reported its highest-ever first quarter for bookings, even as company revenue remained flat year-over-year.
Allscripts posted $432 million in revenue for the first quarter of 2019, just shy of the $433.8 in revenue it reported during the same period last year, according to earnings results that the electronic health records vendor released Thursday.
The EHR vendor’s CEO, Paul Black, emphasized looking to revenue rather than metrics such as market share as an indicator of the company’s market prominence during an earnings call Thursday.
“We believe the best way to share our industry size is by revenue, as we are the third-largest player in the industry by this metric,” Black said, presumably alluding to industry giants Epic Systems Corp. and Cerner Corp. Allscripts tends to rank lower when considering EHR market share.
Cerner reported $1.39 billion in revenue for the first quarter earlier this week. Epic is a privately held company.
Software delivery, support and maintenance revenue accounted for 64% of Allscripts’ $432 million, with the remainder of its first-quarter revenue attributed to client services. These figures were also relatively static year-over-year.
Allscripts reported a net loss of $8 million for the quarter, compared to a net loss of $28.5 million during the same period last year.
It’s difficult to compare year-over-year financial results given Allscripts’ recent spate of transactions, Allscripts Chief Financial Officer Dennis Olis said.
Allscripts purchased two companies—EHR provider Practice Fusion and patient engagement firm HealthGrid—last year. It also sold its patient medical chart management solution OneContent and closed its sale of behavioral health technology vendor Netsmart during 2018.
The company reported a record first quarter for bookings at $286 million, up 9% from the same period last year. Allscripts said it recently realigned its business into three parts—provider; payer and life sciences; and corporate—although it declined to break out results by segment.
Allscripts’ payer and life sciences division, which uses patient data from Allscripts products to create cost management tools for customers, has struck some significant deals since it rebranded under the name Veradigm in late 2018. That includes agreements with Microsoft and Allscripts competitor NextGen Healthcare.
“Veradigm had a very good first quarter,” Allscripts President Rick Poulton said. “It’s certainly a good part of why we set a new record in the quarter.”
Date: May 04, 2019