Ambulatory technology company NextGen Healthcare wrapped up its 2021 fiscal year with $557 million in revenue, up 3% from $540 million a year ago.
The company brought in profits of $9.5 million for the full year ending March 31, or 14 cents per share, compared to $7.5 million in its 2020 fiscal year.
Fourth-quarter revenue grew 6% to $144 million compared to $136 million for the same period a year ago, the company reported in its full-year and fourth-quarter earnings report.
The company reported $35 million in bookings during its fiscal 2021 fourth quarter, up 13% compared to the same quarter a year ago. A quarter of those bookings came from new clients, NextGen Healthcare CEO Rusty Frantz said during the company’s earnings call Wednesday.
“Is been an unforgettable year for our healthcare provider clients, for patients, for our employees and our investors. The COVID-19 pandemic challenged and evolved how a healthcare provider engages a patient, essentially the very foundation of our healthcare system,” he said.
“NextGen Healthcare’s achievements, during this unprecedented year, are outstanding,” he said. “We delivered excellent fiscal Q4 financial results, led by an increasing number of large wins and strong ongoing demand for our full platform offering.”
The company enters its fiscal year 2022 with “positive momentum, a major platform launch, and is well-positioned to achieve both its corporate growth goals and increasing shareholder value,” he said.
Subscription services revenue in the fiscal fourth quarter generated $38 million, up 16% growth over the prior-year period, driven by demand for virtual care and patient-experience-related solutions.
Total recurring revenue during the quarter was $129 million, a year-over-year increase of $4.9 million or 4%.
Nonrecurring revenue of $14.8 million increased $2.9 million or 25% over the same quarter last year. Software license and hardware revenue of $8.2 million grew $3.5 million or 73% year over year.
The company ended fiscal 2021 with $73 million in cash and equivalents and no balance outstanding on its line of credit, according to NextGen Healthcare Chief Financial Officer Jamie Arnold.
NextGen Healthcare reported a loss of $580,000 in its fiscal fourth quarter compared to a net loss of $4.2 million in the fourth quarter last year. On a per-share basis, the Irvine, California-based company said it had a loss of 1 cent. Earnings, adjusted for stock option expense and nonrecurring costs, were 21 cents per share.
The results topped Wall Street expectations. The average estimate of nine analysts surveyed by Zacks Investment Research was for earnings of 19 cents per share.
The company’s quarterly revenue also topped Street forecasts. Seven analysts surveyed by Zacks expected $139.9 million.
Despite the better-than-expected results, NextGen Healthcare shares fell 13% Thursday.
NextGen Healthcare is aiming to reach 5% to 8% revenue growth by fiscal year 2024, Frantz said.
The company plans to make significant organic investments to support that growth, including investments in commercial capabilities, both sales and implementation, as well as to increase R&D investment to drive innovation, he said.
The health IT company also hired Srinivas (Sri) Velamoor as its new chief growth officer. Velamoor previously worked at McKinsey & Company, where he was a partner and the health sector leader of McKinsey’s North America digital and analytics business, and he was a partner at both PwC and Diamond Management & Technology Consultants.
The company is projecting full-year revenue between $574 and $584 million, or 3% to 5% growth over fiscal 2021, and non-GAAP earnings per share to range between 89 cents to 95 cents.
“Key drivers of our fiscal ’22 financial guidance include that revenue growth will be more balanced this year versus last year. For example, with patient volumes returning to more normalized levels, we expect managed services and the EDI data to grow, while subscription revenue service—subscription services will continue to grow, but likely not as strong as we—the pace as we saw in fiscal ’21,” Arnold said.