Allscripts Q1 revenue dips 3%, operating income up to $13.4M
Allscripts Healthcare Solutions on Thursday posted $368.4 million in revenue for 2021’s first quarter, down 3.4% from $381.4 million in revenue posted during the same period last year.
Allscripts’ first-quarter revenue comprises $222.7 million from software delivery, support and maintenance, down 4% year-over-year, and $145.7 million from client services, down 2.4%.
The Chicago-based electronic health records company posted $13.4 million in operating income for the quarter, up from a $26.9 million operating loss in 2020’s first quarter. The company’s adjusted earnings before interest, taxes, depreciation and amortization—or EBITDA—margin was 18.3%, compared to 9.6% for last year’s quarter.
Allscripts reported a 19.7% adjusted EBITDA margin for its clinical and financial solutions segment and a 15.4% adjusted EBITDA margin for its data, analytics and care coordination segment.
“This is the cleanest quarter of financial reporting that we’ve had in years,” said Rick Poulton, president and CFO, on a call with investment analysts Thursday.
Allscripts last year hired advisory firm AlixPartners as part of a margin improvement plan. Poulton on Thursday shared an updated long-term target goal of a full-year 18-20% adjusted EBITDA margin for its clinical and financial solutions segment and a full-year 23-25% adjusted EBITDA margin for its data, analytics and care coordination segment.
Allscripts’ stock jumped to $16.26 on Friday morning, up from $15.75 when markets closed Thursday. The company’s stock was $15.51 at noon Eastern Daylight Time on Friday.
Allscripts on Thursday reported $194 million in bookings, up 6% from $183 million posted in the previous year’s quarter. That included signing four new hospitals and six new ambulatory sites.
Allscripts officials on Thursday’s call continued to highlight the company’s Veradigm business, which works with providers, payers and biopharmaceutical companies, as an area for growth. Veradigm sells de-identified patient data and analytics tools; one of its services involves identifying possible participants for clinical trials and enrolling them into studies.
“Our vision for the future is to provide a ‘research as a care option’ for our providers and patients,” said Allscripts CEO Paul Black on Thursday.
It’s an increasingly popular approach. Allscripts competitor Cerner Corp., too, has cited “data-as-a-service” business as an area for growth, which Cerner executives have said they’re working to develop into a $1 billion business.
Veradigm is part of Allscripts’ data, analytics and care coordination segment. The segment posted $63.6 million in segment revenue for the quarter, compared to $63.5 million in 2020’s first quarter. Allscripts expects to see continued growth in data analytics throughout the rest of 2021, according to Poulton.
“That’s going to do a lot for margins,” he said. “It’s an area that ultimately we’ll be investing in to support growth, but we’ll get some nice operating leverage out of that growth.”
Allscripts reaffirmed financial guidance it released in February, expecting to post $1.5 billion in revenue for full-year 2021.