Veradigm (MDRX) 30 Apr 212021 Q1 Earnings call transcript

Greetings, and welcome to Allscripts' 2021 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Stephen Shulstein, Vice President of Investor Relations. Thank you.

You may begin.

much. very you Thank to first welcome conference XXXX call. the afternoon quarter Allscripts' earnings Good

information to are the GAAP or Chief We'll that events. refer Black, Rick speakers part during Paul non-GAAP well as Our and today factors the Please may and more Allscripts' number forward-looking for release to our President Q&A Chief the uncertainties results. future statements presentation financial a materially. SEC statements on our Black actual cause filings and risk the Poulton, begin. light based are hand Please and regarding Executive Financial making earnings involve as in affect the We both the statements I'm can on reference no expectations and our information and workbook forward-looking our a Officer. with supplemental earnings call to Relations the that also our over call. be of vary going revise number of available of the statements our to that, new These that current website. of Paul in And undertake obligation are risks and Investor to these non-GAAP tables and release Officer; to results

for Stephen. in Allscripts. We joining thanks Thanks, And appreciate everyone call. the your interest

and the me by work year tough make hard to reflect quarter and I'm last saying These very that results. pleased we the Let long-term results begin company success. continue for first with our position solid decisions the made

adjusted to COVID solutions balance we to clients thank clients and gratifying to their portfolio. our the performance, made delivering unceasing associates to for our dramatic again priorities see devotion transformation sheet our I Looking help we has back improving the optimized a like our pandemic, ago, for and results. Allscripts financial once these respond to and it's year our

America, increases on vaccines not have and the decreases population of COVID in given severe North who pandemic trend efficacy COVID ended, outcomes. becoming the are been COVID impacts in of the infections preventing lines for has percentage in While we vaccinated, more optimistic the

the IT bring the We care. highlighted of across also pandemic value and believe solutions that the data significant continuum health

to functionality We by are clients we delivery and Allscripts the with team succeed We our the known the Data necessary community, the and to pandemic alerts clients populations. pandemic. our to a them to positioning post continue we competitors ensuring taking support actions Throughout provider throughout as were the organizations in risk of identify to and new Reaction were from recovery to our updated the us assist recognized to pandemic. the took up lead early solutions crisis. outperformed to services our and our quickly having their immediately proud months, When of the respond and crisis by the became set medical

make telemedicine that our During access to many Once offering procedures business. decisions tools, by saw to position. full time, recover help in to clients them management organizations for again, challenges and data their better were healthcare there a Allscripts solutions, more elective help and reduction workforce financial the

the From phase organizations their enter data our pandemic, trusted themselves protect open analytics, access a from clients been services. clients. future Allscripts partner equally with help into has beginning to of and the and recovery and our to Allscripts to as telemedicine we Now prepared the and enabled cloud the crises consumers pandemic, in throughout

benefit revenue health as cycle. quarter. Let's our we platform business, highlights from go momentum a In experience investments. settings the for we We to built care R&D strategic across and of the multiple patient hospital with record some

our of is resonating health long design, in marketplace. human with open Our connected Microsoft driven the leveraged of centered by communities vision standing partnership

a Included utilize capable in platform long-term also the Mercy cybersecurity, System community hospital continuity highly healthcare of and Microsoft Iowa single welcome client hospitals of its City's a an availability, their financial its new will long-term we deployed in new a also specialty EHR selected complete strategy, for Sunrise QX, health important Allscripts health by expansion, as Azure adding Mercy two few is Allscripts We ecosystem In with features disaster outcomes improvement business validation years. EHR large Allscripts was XXXX. the utilize innovative operating and extended City. Allscripts services, and that group partnership relationship community. will we forward optimizes Sunrise a connected on inpatient to Blessing be future built deliver Mercy pharma. agreement platform. investments and and validation, -- continuous Health patient their Allscripts look the practice being to of Mercy to the substantially ready outpatient, them. as will our cycle, expanded its R&D Microsoft our model. commitment with with of system Blessing After all-in we will with feature. competitive core on another client, Integrated service process record multi is past Azure, Iowa over delivered high through in managed clinics. Azure. our Blessing Sunrise cloud recovery During digital to drive medical as the strategically searching one for software health partner they to A platform vision an Mercy through revenue for cloud,

provided Health QX their of platform, client in its adding new largest in additional partnership. and Medical In system additional Long our an addition, strategy Microsoft also Center our hospital expanding underwriting These Peconic Sunrise Bay in Island. health system, the is have Northwell lines

also by Health our the as ambulatory quarter, as technology cloud need. that the clients momentum with ambulatory independent our support survey additional party -- shows in able for its the received been to they with providing last momentum to third in our for were we healthcare recognized solution new We to new six tools the report In smaller validation Blackbook's provide system from We've fifth this marketplace. Blackbook continued consecutive we vendors business. the one sign another we compete segment. our XXXX number commitment Systems in organizations expect health Community business, for as year. We've again

Our in second platforms, investments as ambulatory robust. quarter in ambulatory number the positioning. depth of by our breadth one both we benefit team, which from further our made we've And our market pipeline remained share supported across solutions, is

complete offerings of cycle and solution portfolio clinical, for attractive outsourcing. to to look revenue end consumer, consolidate and Our financial, is as clients highly vendors covering end

our services business has in grown example one cycle Clinic, Central and is gain as in existing Our Springfield of its pivot volumes. COVID result to risk business services, a An With their of as awarded expansion delivery. future we key management present Springfield of our relationships. clients a Clinic Illinois, and is piece patient large our Clinic RCMS presence the our needs the Veradigm, Springfield a largest revenue partnership. cycle energy healthcare of continues address management press were to in traction recovery to our of

with data science industry at value and a care bi-directional provides of point and connectivity analytics Our the providers leading providers. life companies, platform substantial payers to

helping biopharma, along have leveraging and transform addressable electronic relevance to record us ambulatory growing is with for footprint, provider vast strong purposeful By product Veradigm a position We investments development commercialization. to health relationships Veradigm and markets. across of multiple made across

providers as vision point-of-care the for We patients. a provide a are for research our option extending And future to is research. and care workflows our include to clinical

ACA number at the where the signed XX a new business, highlight quarter. In me one the health Top clients in solution exchange our Veradigm. Veradigm EHR lives. Advantage, we're and our clinical to Let areas and we first another of seeing includes career two pair from providing of for which data progress We're pulsate plans almost of lines business, analytics these plan, Medicare XXX,XXX plans,

platform research with by EHR eligible and healthcare extending to workflows, Our Veradigm patients, for our research. the systems include identifying enrolling study our research them data study utilizing assist in instance, clinical source efficiently studies, modernizes

over I'd a IT and improving treatment we neighborhood Housing data integration plan nutrition, to Before a the are first impact of data point crime situation, can't effective This like has to The More quarter, for physician where enables status, limited all the To over the these system, philosophy geographical is in been centric, ecosystem. health outcomes. factors have likely precise, address published health leading determinants more Allscripts to system. local financial these level, be health. important electronic for effective inequities an believe overall be clinician insightful the They help contributing corporate forefront the reduce The partnerships social documented brought We role. that positive provide some must on a Allscripts health data inequities on plays at report health in of previously information to open and require important envisioning I will to care updates are discuss that only access interoperable Rick, truly detailed within health education come healthcare together we to say an includes more are rates, and organizations, a to has outcome. that areas role and treatment we our the more healthcare here decade. community patient. are social have based to But healthcare how multiple power how capture a CSR to data information. and to in will record and solutions with care, centers. of information patient better community This can provide the health. strong a IT all can a call our is responsibility and our pandemic the our hand API

we cohort We provides expert at analytics are risk gaps healthcare. for focused identification. see consultation This on bridge in delivering data patient help these support often that solutions includes that and

believe can and engagement helps ability means these consideration out some patients at such eligibility outreach afford to service and communities telehealth enabling routine same vary coverage, to distribution. And, importantly, visits. To Today insurance substantial summarize, and open pocket to costs clients health understanding strategies tools, of I about their vaccine We time a it filled. our prescriptions, to us help where out patients very of of performance that ability needs, shareholders, And our is into can based to of patient taking associates, of communities. position our proactive the for address include as value patients trends that XXXX. the care to clients. more value vision connected on understand practice Software while pocket fees encourage optimistic that our that direct the to to remain in for associated of to -- issues, our to deliver with our they provide

Life our scale relevant deliver Sciences to landscape. our Our and platform and platform and clients the in for with the and payer partnership value positioned Sciences long-term with solutions Life solutions us R&D have integrated payer, differentiated investments building across Microsoft provider added

allows and Our improved structure generate earnings, amounts Rick more that, to I'll of meaningful it to more free Thank and cost our bottom sustainable With line to us detail provide financial you. over position. turn flow. drive cash

thanks for are One that's workbook Okay, And Paul. website. thanks supplemental posted the joining Stephen our Relations more reminder, indicated, data today. as available additional to Investor in financial financial details everybody us

reporting So discipline reflect created on really first our that to the with were trend quarter. years. This Overall several seen we themselves our coming they free pleased resulting for quarter cleanest all quarters. we line EPS numbers EBITDA, with the revenue in And leverage, now is flow, of in were have the start speak our cost XXXX. cash and as structure operating think performance continued we've had financial in for our plan. for I significant in above performance the very adjusted and And bookings expectations that our

will usual. shorter comments than prepared be my So

items up in with weak So quarter. with what is overview, highlight We a which new of bookings X% a generated year-over-year, X% bookings performance. quarter, sequentially, seasonally $XXX few typically that was starting and our million let me in bookings the

their result continued recover their as have was the environment. to operations any basis. from on and reported their than pandemic to This overall optimizing focus we environment like continue for reflects our higher IT quarter a and modest in improvement clients of quarter First care improving the health XXXX sales turn a like in

new strength our four as quarter, Sunrise competitive our mentioned, and the our particular in in with Paul business hospitals wins six ambulatory continued business quarter in As well. new with its the franchise momentum

proposition and As its we science These flow saw differentiated along bidirectional and recognize the discussed there set, our value good provider, Veradigm, with the to provider connection solution of our patient deal life very partners Paul business some analytics to point including and clients. the continue with care. across platform, data payer around bring unique

year; up quarter, size XXX turnaround past over services XX.X%, business well as in organization consolidated which cost margin this in structure we reflects our right year-over-year. points performance of the productivity the enhance base. was our dramatic improvement basis environment the reflect non-GAAP the that margin was Turning current to as gross in revenue lever to client This the

in As resulted margin margin of compared SG&A quarter That adjusted services the strong a XX.X%, and year-over-year year-over-year along was reflects discipline than XXX result, with which in on quarter, costs XXXX. around $XX points adjusted basis points growth up was a which million, or was of XX% X,XXX more consolidated year-over-year a EBITDA on first EBITDA first our performance Client basis. in basis. basis cost gross XX.X% R&D margin with up the This a

quarter diluted which up first performance, benefit share worth -- first noting margin of As count, XXXX. we is along did that a with in $X.XX our of It share, a a from quarter first that of the share we lower from reported of $X.XX a record in EPS is the not restructuring we quarter result GAAP charges the strong XXXX.

this, cash our of to so help overall free continue our conversion. with quality R&D flow this capitalization improving is And expect to our earnings. we trend And rate along drive lower

previous as XXXX. million we $XX Subsequent flow. our start goal the quarter million first we full a of improvement $XX operations of first cash toward is XXXX. our quarter, receivable the of continuing And from the settled divestiture pro principal our of provided. remaining to have commenting generated related well we obligations the so flow as great from balance debt tax our a During I'll income of tax to end dramatic the free sheet, we quarter, for year and This cash by overall approximately obligations cash to by cash March balance everybody our position, forma understands these our CarePort make transactions finish if today back position on $XX sure on our exceeds all million. -- XX

outlook cash doing originally we saw the that remained provide We we're the so are CarePort adjusted trends EBITDA Also an February we year revenue, segment to of end our reaffirming during earnings free outlook I'd end stable. for and we And at year first provided the full the margin that long-term because update divestiture given flow on like last provide the quarter on of year. call.

care business range adjusted is data long-term margin XX% outlook Our divestiture adjusted to remains of updated to clinical long-term volatility. range And coordination core and level quarter-to-quarter CarePort. unchanged to segment segment effects seasonality EBITDA outlook will of drive at a a XX%. financial and solution EBITDA our revenue of At XX% margin analytics segment the the and XX% to reflect mix

to are and first will revenue adjusted same year. To performance is as quarter expect term this in this expected So we drive digit of towards. to this EBITDA below near to full that over year-over-year adjusted range low segment period. we balance segment targets the growth coordination the goals the analytics for illustrate digit in long range, these see high data double drive year targeted continue the care point, single And to although was margin margin this this well intended EBITDA

pleased up, execution to the we're So results all the remain questions. that And and for With to call optimistic business the across about quarter. very facets up like our I'd of in XXXX. for outlook wrap open we first with

Charles of Rhyee with from [Operator line Instructions] the question first comes Our Cowen.

greater doing Charles. role James you enable about Hi, cares care? this Allscripts on in is virtual Can what Obviously talk playing for virtual to delivery. a care is

on rolled last our with Yes, significant to gotten quarters And actually that. been telehealth our a year clients out pretty up now. talking few quickly we've on clients. for very it pick about We we've this capabilities

we is revenue telehealth for and our tele I patient big able remotely assist to been the win think to with that contributed items pandemic our -- visits the as to were also of with that's maintain to pyramid. them of clients but assist during doing But a top their relationship it's lot through try help been at the went a our clients. their their probably they've Paul work other So patients.

capital you Care share capacities in the program the authorizations and under cash how deployment And talk additional repurchase divestures EPSi plans any for also following priorities position that available given much strong current the and future? also, Points, your of about can the

so questions, those Yes, part let there. two pick two me question

level. continue look make priorities R&D we to to business, do to smart want a that Our we'll -- And are, will been we we've dramatically shares capabilities our in high investments continue the pretty our about we at our the that to need we we we been think we as transparent that pretty add see continue I been have think to fact to undervalued. fit. as have But also maintain

have detailed place week about quarters now, program on returning of we that focused end share an that accelerated in put next end, we're over to we or We've so been to shareholders. cash And repurchase to in coming QX. several

our we, will and do and make we net of have quite that as authorization you monitor comfortable me last will fact, do we million remaining But from price to; the heard of just debt, close about still in we we're authorization authorization November. to some decisions in that right have plan here. we incremental two But that, we used with position As thirds got And now. have stock up cash continue left. net is to say our no $XXX

we cash So return to capacity tremendous to shareholders. have to continue

from with of America. Our the of Bank Cherny next Michael comes question line

you're your up the I a me in a you nicely how dynamics board But first we dynamics, and operational Afternoon growth analytics of you little Congratulations. the opportunity, thinking side? engaged give ongoing the and the sense showing to the here, further the it's margins. next of timing. on and in I expansion bit, on just on improvement across of margin what data in with to with leg Could a much on be close where really that mix from operational components comes consulting the been, business very since correct believe, some start the should year, on nice quarter. expect of was us job focused particular versus working next on some what it's firm please will come

Yes.

the for have within you question. Mike, questions comments and the guess thanks a that. So I few

structure rapidly yes, So us term And we that deviated -- And we that. it from of ago outside we the about off, targets, that's of in standard. what holding with needed still that. than belongs. brought the But the haven't with our call. scale yes, the to cost a happy assistance some haven't our for very forgotten where published from in other to to that results about first it done We some those, the I'm we that portfolio year help them, of a early was changes, refresh course, margin back process. I've of course, we're fact long to this And margin with high

think, solution side, on on in core our efficiency grow. really we I will cost look clinical the but focus continue to opportunities for segment financial also and to

market, it's be growth all we a there are there we know, winner so grow is replacement but that in. not will market a And and net high pockets into, a still to believe

with and up. inpatient other said, as that solution, our competitive crew So of makes we have market on feel us examples we our platform. the our good the replacement to right side wounds ambulatory side Sunrise comes in And as the I log some continue Paul the

costs, there continue us. our services big list base, evolve and in And too. providing the it's focus with of a And that also some cycle course that client client a revenue some to be base wins as for area, are nice replacement well. there with from good use but cases on off space outpatient growth particular picking it'll are So, in then,

question are clients the The today solutions about it us tools looking first and provide of for, Remote gives opportunity some Patient to telehealth that our an there.

question made not continue function we've combination but goals, long And changes a I march it's of your to think improvement term going group of of will to progress. the significant going we've we'll core help its I step improvement. continuous lot to already. towards But that And started just a drumbeat see all its here, as of think we're So change. a see in continue you made drive we're clinical

On the side. data analytics

say. the nice of As margins. the I to year, And do I back for going of lot left the that's quarters said expecting we're growth a the three next half year, for should

costs growth, going So be smart some that's we're get investing ultimately But our leverage but there. area that about it's we'll be nice growth. operating we'll off support to that an to in

me I know still got let if or your I all pause I left So if there don't Mike, something questions out.

ranted I Rick, longer needed. it's did You probably than

more So much more one that's I'll ask and quick separate direct. question

Since as does growth its are in out you dynamics companies, it how it both various profile, area where trying to be shaping Veradigm do the other see well? and competitors, different the to where an Given traditional seem competitive in others expand of market?

imitation is look the well, Yes, sincerest flattery, form right. of

multiple see about from not client real years, over have we folks. distribution The platform, talking a So is good just relationships there. real we're and that it; network a news other real we

assets. feel competitive help assets of a asked data So with us own, also I think our have but are to have, that have them we their we only positioning, I competitors set we also some not about unique our assets, of good

not a unique if difficult, is to it's that extremely asset So impossible base replicate.

position. look nice for growth So start balance the expecting when good engine; think, of we're the I the And results I we feel said there. year, we as yield out this some about to

that business. on the of side So good things feel

Our from next Dodge Sean of Markets. line question comes Capital RBC the with

that now? are decision in afternoon. them market, percolating some just post comments opportunities those either pandemic activity or Thanks. of sidelined replacement seeing of lot Are of you of, Rick, helping kind pandemic a any hopefully there I'd guess, levels and are kind here catalyze now, regulatory your kind maybe anything probably I that activity? of the change there kind Good imagined the processes. being the in anything earlier fact otherwise on

than Paul to spends we on do. side. front ambulatory the lot that time But because clients start some of a in ask actually I I our remind I'm you Yes, going more Paul year wins to last had nice feeds I'd on may and

lot So pretty how even did pandemic, it we a fared think very were of year in was though the year, and last we But inpatient market slow I on a XXXX. there. replacement activity with the happy see ambulatory with depth side side, on of the the we

So almost will XXXX public And I by sector sector terms definition, we better Those than to into we're true year, tend those I public be a And be back XXXX for And that's to down think think opportunities. of see last reasons. year momentum more starting deals. internationally. especially in think all that some creep shut obvious discussions.

So ask Paul, let add me to that. to

Yes, new as -- for for it's side three last years. or our there's as good the on four been the hospital a is business pipeline

So good teams interestingly, because after to extent, it very that at just it's being very are but we there's hard, and payment the in that's lot been other in of also will had exists he and all keyed a that and of we of we right they're getting a better consultants activity the the with QX have, things up, going front competitive. opportunities by have

of results , last level respect outside it year, sized care to the take United was medical was at populations States those Health much good than things sometimes, the more of some lumpy. so Ministry So a are With the of records. to big diversion pretty has there replace the electronic go that more

But very QX. business we side accurately, also down. ambulatory had year, and new that as slow the US The a good wouldn't last robust fact, the in existing say the in said of did, are that the I slowdown expanding. clients also pretty so marketplace Rick was And

a do out revenue that's in are but of are be cycle AP bought. inpatient that other outpatient number and And breadth some are that are things thing of only those there of bit to -- consulting clients that is have that's hospitals highlight usually outsourcing that reserved outsourcing have services, seeing the different asking IT shop, is bodes we're services. us, and will And for offerings we this And only be hand somebody of of for a today. to that that that some always of specifically that We're year happens getting services, that. on of not for suite But about many for other somebody a additional when to total the into a today history that when one those may we bit some and revenue acquired. stop and cycle, results acquired buy well they we last had And allow to have that perhaps that. and a organizations relationships and physician it fees additional expand clinic for us their talked The depth also the come talked more a raising So I how for they on also and that as that more. outsourced added doing come may and value clients well. we're a for seeing us and organization not historically they to like the our

actually of to they're inside actually from working, from that think if they've home. that the interested will they're space I four does and back will, you that that, the hospital, for organizations somebody walls in of people looking Some perhaps the were the lot in if office, up four the noticing out function take at and or move it already clinic. else hospital And a like sent the those them, of pandemic, that the over given walls those people of you freed where

pandemic, I work out dynamic, will come another to certainly try the clients. we interesting that's on of that's So think our that aggressively with

the client will to and costs you then of Microsoft the base long expect can your the then is that And they very expect Sunrise rollout thank will the you of through you helpful, or decision over have new it how and changes, of to a upgraded, maybe maybe choice economics that yes, most how hosting, transitioned Okay, the them, that for migrate migrate that's on the platform, majority you. take kind walk make?

texting on-premise things already are the into talked be of bifurcate those this, I are but especially about centers, the Nuance, like around their some that clients come premise, folks the only of think operations, data recognition, pretty around the people are to the think the I about our especially that read native broader are even the experience on- think that people, doing, a when option marketing when of that the interested of of in one you the technologies not that they interesting physician about that the about versus get already to trying folks to inside are cloud, that are before and ambient of in with very going topic cloud, new more as around they native third you hosted the capabilities cyber, physicians, voice in as you Microsoft around less and come that continuous fatigue. for business keyboard versus acquisition earlier, capabilities of to ours

and that, So those are but based. we drive towards us business, things that new all new help cloud exclusively almost do business, our

the their with that The and XX are on-prem over So us already time, of to going already of months, to I would XX I'd are other host course then some next are people like, three that's will folks the move are years. to over five period depending number one. upon a what moving, contract in looks that say hosted say people next

Piper comes Sandler. question of the next from Jeff Garro line Our with

to what the I could mix that about segue then question you bookings a ask evolving nonrecurring thanks of sounded revenue good with between and congrats the nice is referenced. Microsoft that how you hoping was want Sunrise and quarter. was here, particularly I Yes, product comment bookings. quarter and in taking very questions relationship recurring the good And a that afternoon, the for on light a John's on And the in just of quarter. knowing and like

don't nothing way. there's Well, that start let its, don't know this, me said. by we as what mix quarter about the we say typically can on think I guess have basis, it categorize changes we recurring versus really But bookings nonrecurring I is a I report you fundamentally that the

some extent project as a people we're is XX% on a upfront recurring still buy So nonrecurring of subscription. to license licenses on perpetual services, software them through percent opposed XX-ish a a made to basis up nonrecurring, our primarily again

the sales, have view, the there's things in first changes of that aspects. quarter nonrecurring that. we but fundamentally the Sometimes those to tend my about be hardware And some nothing composition that are

of think that's as million the the Okay, extensions. all deal to the to and the of new a have reported the an a $XXX ideal, Northwell areas way Hospital Sunrise yes, other But the I Blessing quarter, on was was we Mercy that both it company. good full the had so part, get big contribution we with that bookings,

franchise ambulatory significant the also bookings the mix. overall and were also to So contributors Veradigm

unusually nothing the bookings So there my quarter, for skewed in was any company. on view of area their performance about first

helpful. Thank so That's you.

question, -- see then answer want you Jeff. I us. not and may your else what But just to backdrop, ask start That let's that with

something how hits Very Microsoft relationship deal helpful to color, then bookings, translates in I and bit wasn't a deal versus P&L. changes of Sunrise like little but expecting specific maybe what today if percentages, a a the looks the commentary more like on nonrecurring, terms and Mercy recurring

a structure is XX deal. price. logo as Mercy a a is So the year single Most of the of a seven subscription structured bundled of typically new deal to either in relationship everything kind

a of that little is implementation bit largely, services. there's initial So

structured our So some XX like so there what that nothing they're is goes but looked break largely they a probably that averages The our And because client is when on be relationship at how fees. with now changes -- of different really deal. with past hospital could revenue, get place, actually it, additional is it long-term clients. They once it's a you it's all down, deals you based with today, revenue it's, we nonrecurring -- implementation deal. initial that's in that already unusual about where look all nothing like that lot what the was recurring

the long deal they perpetual more top just of So the to some that who need on be subscription. follow on a term a facility subscription of clients to And they look already they'll licenses Others same they'll and as have. when for licenses. model, new same, tends few structure started that clients a started add that are the

of the and So client what so hard structure Jeff, generalization that like. to very the deal specific, look it tends say, it's the client beyond nothing was to is like, would it's follow and what

me, the one I about for Got and around it, One comment wanted last consolidate ask helpful. the vendors. very to market ambulatory

are pursuing help types for portfolio address different markets of organizations segments what might efforts. parts vendors your how consolidation you of and curious Just the that of now, those consolidation

down. I saying visits perhaps were think clinic to are had them. see we brought specifically of year I and actually saying, going things the consolidation some some a pressures. And that unable ago, were the during they their was full we're they that right, to referring financial They to was, pandemic patients are

were effective. more so bucket, roles, they of and turned they more that And be talking about one you different And was And more us. the relationships to if relationships Iris them out into cost effective cost had. of their talked it it be will, put of some that to us about to we might to those number

wouldn't their spend of have figure look to that So a us benefited we their XX them that spend cases that that that, because players actually and more overall to versus become was for our or and IT currently of some and that increased didn't XX many percent business reduce depth a and way you to coming we have, of consolidate out or try breadth if as spend in continue achieve we larger, which accounts to work other more a efficient goal offerings, payable, broad we pieces their percent will, and their them share. we is with if us at to could bit

line of Nephron Eric question from Percher Research. Our the next with comes

termed Paul questions what it you for one quick and clean then clarifications. clarifying on you appreciate a the quarter. Rick and Thank Two

is And or cash right So percent was. then I debt that there's cap stating revenue which that $XX.X software cash was of relative understood without or at level. million comment, I million think of to the $XX absolute size to level debt net the what sure make about want I

two. to just those clarify wanted So

Yes. Eric. Thanks Yes.

yes. So question, I forma April. then at effort the upward outstanding, don't have compare of face cash that balance the you bonds I'm, second tax $XX just everybody early on up understood an a time. to pro over you know you mean, accrete sure that that settlement show convertible that position, And net the was million make in it's if the, we sheet value. in as on They did the we the

a a compare So cut bonds, cash of value familiar Makes sense? to $XX want you're everybody just I is through to if for understood who the all anybody position. cash noise just you million face with it, net net in little make less sure that

And, yes, and cap software.

Okay.

were little you a So, to hear. hard

So not sure. I'm

understand me Let just make was. your what I sure question

million was $XX.X right. we So the this capitalized, that spend amount of quarter

on $XX a -- it, million, I bit the where I'm -- that repeat gross of have and And lost the -- as may your a think but capitalization was, question but So rate. not little that's to I right? so what you

Yes, that's where I was going.

Okay, the talking been and that few sheet. quarters, about up to build continue the cap capitalization costs balance rate so been to just trying for a the rate, we've on I've down, not drive

to our this is intersecting income The should with little feel QX at to than been going quarters, gross accounting percent trend because to edges, good a we've dropped on should better, the three what for to we've quarter see were XX% that's amortizing went of and capitalizing, continues of so now, during that just fund QX to continue. the rate, you're movement XX%, I quarter. the more in earnings rules we XX% the better the So in bit get quality that been around the of

get bit go the to like we definitely the of up in to, but, gotten So out, little you'll was number mid-XXs. bubbling to sit where a expect not back had XXs and I that which almost

of of the are alignments it about? expansion, that are that Veradigm, opportunities do on you ago. acts think faster beyond as like When be And I expanding to extend late. maybe a for to year week, was was Nuance the get systems it improvement. one that expected that think us that and going relative always with it we that's there they moves And this manufacturers. that the of health some even core you you you to Okay, Microsoft, everywhere there or are think we've they're the opportunities and or last And to then, beyond topic seeing they like of doesn't biopharma Paul, see excited talked making. about And about broader than seem two appear

between enterprise a Microsoft, on to what's to an way, the they getting cloud. they The big are are opinion, have, there think, out continue software will, will marketplace. an resides them the people they'll of distinction their if appearance This, system in reality, an that and my healthcare absolutely some you inside player, that is of perhaps very in going interesting are I that into be other and continue operating the in

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why have other of as So that of large lot to think going a result historically as healthcare is to a traction I people noted, piece, a And big a that. is Microsoft, marketplace. many get Eric, we're as very

drive expectation into the are lot targeting They're targeting with, relationship the They organizations large in rapid capabilities of those but if Ministries they'll you this mean additional other enterprises. not in and they're large on applications the countries a this the Some that doing large to have different lot that The healthcare not my some a world. very a marketplace, to short a they And work large, manner. globe. other them. leverage in Azure only those industries then around some of of that with they of into the around of serve Health will also things also ability organizations organizations is and it's

look you exactly of capital things intellectual will, we of then So on a with, institutions, where they joint are calling people and as my us sit they supplying hand or going is at capabilities might think those and large is in get point only of incredibly them, they're as our just hand in can historic, electronic that with interested work with additional alignment helpful, to of get these of all place top or if in the about with all some relationship time to the very need listening working we They in to with to engineers great like, what alignment existing strategic. Microsoft, also we think opportunities. how health we to on either any have are

It's interesting, thank you.

bet. You

to -- Didn't answer really get

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line Leerink. the SVB Demko of with Stephanie next Our question from comes

around you and I the your Veradigm in my time the that congrats clinician estate this facing your sounds is It the have pockets spend quarter. your wallets? only EHR? Fusion busy core Life love to real pharma questions. Practice using like with of your something any relationships that about for strategy ad hear been you echo I'd digital very Veradigm making of you're in for Hey, guys, leverage thanks the for see longer-term Or opportunity Do Sciences business? side that more

do on was as do, that started, a activity, in how ads, terms through decision clinical of might things So, kind learning was lot Fusion that's helpful what like right. viewed of ad what a and pharma curve went know, doing more to as okay a Practice Stephanie, to and prescription of was okay fostering be as and not you support right

kind they've the So along lesson way. of learned that

than answer nature is think at to platforms. But to the pure those ahead. client base go our of it easier opportunities Because of the a much to of EHR of I longer client -- Practice the technology it's with of good other cloud So wide server that some deliver we absolutely, really will big term Fusion, we're a as we was what is things we were some of that part mean, that's doing pursue had that. question some there's leverage part Practice your they bought to acquisition the across, thought knew a we to Fusion when a that and base that continue opportunities we larger I that case,

as in component any an EHR, solution the with sort some the there? embedded add opportunities adjacencies or some such of patient telemedicine around there Are the maybe having Zoom portal, of and even clinician facing?

it have quarter. within and me records? -- they for I of opportunities too there it Veradigm a as way, opportunities providers our ad, product little let is a to are bring new streams, say they doing to streams I And that is that's and there friction the personal of answer to this Yes, really users to absolutely. mean, say what with the new the reduce is, payers? the interacting information spin living up some every are The people an of solution new a maybe health streams narrow, create revenue off

that. pretty when do place your a where There got we new we innovate it's a on is you of web to weave solutions. So way books, good through rule

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one partnerships. there one me. Microsoft clean? And Thank into deal fully way that or exclusivity anything these known sometimes Is on do the then quick to you. been like one has for just

No. Very clean.

from comes KeyBanc with Markets. of next Our line Capital Donald Hooker question the

good I Hey, lot my asked questions to here been great, sure just But here, for understand. afternoon. of so just have make course. clarification a I of want

at your the what think I understand there core from clear, and you I probably financial obviously, or solution are I guys, of operating from you've segment, comments. your be EBITDA just long made term margins, you you So in with top to, to about when clinical so mean the the progress range margins

So recede reason things why be from if little better a this here? is was a quarter, a seasonally weak might there bit quarter, might and it next sounds margins like

let's don't match and the is were a with a the seasonal think first we've comment to We we be all some good bookings, in seen we the and happy for lift highest Well, just activity is out The comments, with the It quarter. sure did a we came and only the made that's where weakness the was I throughout I Don. why softer tends what last mix quarter. we it make was have of typically year. not very quarter, bookings sequential

bit. the on a commentary selling more was improving environments that So little

made a and is I that had our see function quarter-to-quarter margins and boost margins. was revenue think we and quarter EBITDA good talked in it about you QX clear we'll volatility, mix of EBITDA purposely big as during I a favorable in a mix revenue that

We SG&A a also of to bit little a in that nice next our had quarters. a segment; some I'm lift flat see to of curve going there over couple

is So was I end right, think a I the at quarter great range. mean your observation quarter the the high of was

I this for going segment. think three in see that we're next don't to I each think of quarters the

that And of other the grows. probably so little segment off while in we'll here a tail a segment bit see

that my all are were will these so And clear annual we goals. to be quarter-to-quarter around just some And margins comments see meant segment volatility.

question a clarifying a one Okay, that. for here. maybe thank And maybe you mundane

the EPSi you models? guess, of do this here, was sort my is is I work there I have How into off unallocated sort going segment, some of our there that and we of which two is which be? segments, understanding have gone, run sort is to the You an now guess

little more reason quarter more we revenue that was we have this we needed obviously not much. we what pricing consolidation. between than segments. have vary more, the Don, And going EPSi, to it do outflow -- Yes, the is it transfer see two What do was to eliminate is some we a is you when

has the out to intercompany pool I couple we bit that just elimination there's for there's revenue. little that the company have segments public happen of company costs. call We then also necessary don't costs of so to business -- a the what and allocate it a keep And of

any QX I think that So steady could see a use what you in you you to. is level, pretty model, wanted in if

Our line next question comes from George Bank. Hill of with Deutsche

Yes, thanks the for Maxie for taking hi, George, on questions. it's

forward long about talked going mostly significant get driven goal, revenue achieve in service to to Or term the aggressive margin cost expansion? in on to the the it you cost do this by improvement going structure you containment side? So is be quarter, need more segment

last of in kind we've the lot Well, of question questions. covered that few a

toward high the That's opportunity. end what's drive lot ever will as of noted on at continued a -- the the with we journey think guidance bring going goals for catalyst of, think top the their quarter-to- demand core modest I focused, earlier, step see goals. largely, are segment is the for going this going as core just volatility. were said, market range been as well no lift, previous see The cost solutions -- not but to some question, analytics annual this quarter's quarter focus continued which its margin clinical it's upwards. our of talked by but And wins, is the clinical that's new as function to But be saying think we're am more to to improve. business, we some and data changes I lines some along of pockets I to that one I we're replacement financial margins really the about

business maybe quick some on provide the churn last rest see to the one. for Great thank you year, in a the We've thanks. could the you. and quarter, expect client client improvement in in attrition you color QX attrition And of core seen trends

do given. not everything closing we that bolus assumptions like we've the knew we such to attrition got what that our going last client we reflected particular because and to again, ever we of to that around outlook knew out had we not needed hand that's that Q&A. we that had to a everybody upfront it front. a Yes, are our year back we that provide bolus, This hit the everything happening some concludes about year-over-year we where shared same was the Mr. we'll -- But attrition our can that see to on And understand for in XXXX. pointed for beliefs And we comparisons. If Black guidance reflects And was guidance. so remarks. I again, us. a point

us everybody was value things JP us inside lot did spending for our for conference. Thanks at we And got assets XXXX a about today. bunch company, of we the talked big a we as where a a reset, the reset portfolio, time with company. year of different in focus reset cost structure; some lot on well of of the we as some as our unlocking Morgan

day today respect that of I which gave that the having reaffirm day pandemic. are the clients we time a result that patient that that expecting We return clients, are a end in to -- some States months we but experienced appreciate front that where with Allscripts. to think we with volumes as our of throughout are regard very to And a now starting been resiliency much. on We're not Thank gives you to clients today. of they've there lot here, interest the see seeing who've also XX this your seeing us with to you work regard are operations, in their everything a your of a As also confidence regards the and of revenues first about lot showing our only the are people to normalcy and we and United the quarter, also of done. guidance

teleconference. gentlemen, participation. conclude does this Ladies for your Thank you today's and

this at You your a time. lines may And disconnect have day. wonderful