Earnings and money circulate have been every up triple digits for athenahealth within the second quarter of fiscal 12 months 2018, and income was on the upswing too as the corporate appears to be like to chart a course via a tumultuous interval marked by a hostile takeover bid and the resignation of its founding CEO.
The cloud-based EHR and apply administration vendor adopted a brand new income recognition customary at first of the 12 months and can implement it totally beginning in Q1 2019. Accordingly, athenahealth posted 7 p.c progress in Q2, with complete income of $323.three million. (Income previous to the affect of the brand new customary was $331.9 million, in comparison with $301.1 million in the identical interval in 2017, a rise of greater than 10 p.c, in line with the corporate.)
Internet revenue from persevering with operations, in the meantime, was up almost 265 p.c, 12 months over 12 months, and adjusted earnings per share up virtually 112 p.c.
“We achieved double digit top-line progress on a comparable foundation and considerably improved profitability and working money circulate year-over-year,” stated athenahealth Chief Monetary Officer Marc Levine. “We stay centered on executing towards our product and expertise initiatives, bettering the shopper expertise, and delivering on our monetary commitments.”
12 months over 12 months, the cloud-based IT firm additionally noticed double-digit community progress for its ambulatory expertise (athenaCollector, athenaClinicals, athenaCommunicator) and triple-digit progress for its athenaOne platform for hospitals.
“Any firm that undergoes the kind of adjustments we’re making at athenahealth experiences a sure diploma of uncertainty,” stated athenahealth Government Chairman Jeffrey Immelt on Monday’s earnings name. “Nonetheless, the overwhelming sentiment with our workers and shoppers has been one among optimism and confidence in regards to the power of athenahealth and the place we’re headed.”
Immelt additionally famous that the corporate has but to resolve on a technique for the way or whether or not to discover a purchaser, amid ongoing stress from Elliott Administration.
“The board and I consider there’s vital worth embedded within the firm, however the optimistic actions which have been taken to reinforce progress and profitability,” stated Immelt. “We’re totally engaged in an intensive analysis of strategic alternate options to reinforce shareholder worth.”
He added that there is no definitive timeline for the completion of that course of, however “we’re shifting with goal as we think about quite a few choices, together with a sale, merger or different transaction involving the corporate in addition to persevering with as an impartial firm.”
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