Veradigm Investor Update Conference Call Summary Company Overview - **Company**: Veradigm - **Industry**: Healthcare Technology and IT Services Key Points Financial Performance - **Revenue Stability**: Revenue for Q2 2025 is estimated between $145 million and $148 million, reflecting a slight decrease of 2% year-over-year at the midpoint, and a year-to-date decrease of 1% at the midpoint [8][9] - **Recurring Revenue**: Approximately 79% of total revenue is recurring, consistent with the prior year [9] - **Provider Segment**: The largest segment, Provider revenue is estimated between $115 million and $117 million, down 3% year-over-year at the midpoint [9] - **Payer and Life Sciences Segment**: Revenue estimated between $30 million and $31 million, up 3% year-over-year at the midpoint [10] - **Cash Position**: As of June 30, 2025, cash on hand was $350 million, with debt at $283 million, resulting in a net cash positive position [13][17] Strategic Focus and Outlook - **2025 Outlook**: Revenue is expected to remain approximately flat compared to 2024, with a commitment to remain net cash positive throughout 2025 [19] - **SEC Filing Status**: The company aims to regain current filing status with the SEC by 2026, with ongoing audits for fiscal years 2023 and 2024 [20][21] - **Leadership Transition**: Don Trigg, the new CEO, emphasizes improving profitability, reigniting growth, and becoming current with SEC filings as top priorities [29][36] Growth Initiatives - **Revenue Cycle Management**: Recent contracts indicate momentum in revenue cycle services, with a three-year deal valued at $2.7 million signed in the Southeast [32] - **Payer Insights**: The company has deployed its gap in care closure solution, Veradigm Payer Insights, across 10,000 practices and over 35,000 providers [33] - **Life Sciences Data**: Veradigm offers a significant ambulatory patient data set for pharmaceutical research, enhancing its collaboration with organizations like the American College of Cardiology [34][35] Challenges and Opportunities - **Operational Challenges**: The company acknowledges challenges but also sees advantages in its established client base and strategic data assets [29][49] - **Market Position**: Veradigm's reputation in the marketplace is seen as an opportunity to enhance operational value for clients, particularly in practice operations and financial management [48][49] Future Plans - **Capital Investment Discipline**: Increased discipline around capital investment is planned to maximize returns [30][38] - **Operational Improvements**: The company is reviewing its product portfolio and operational systems to enhance growth and profitability [31][36] Closing Remarks - **Commitment to Progress**: The leadership expresses excitement about the future and the strategic potential of Veradigm, aiming for a relisting of common stock in 2026 [54] This summary encapsulates the key insights from the Veradigm Investor Update Conference Call, highlighting the company's financial performance, strategic focus, growth initiatives, challenges, and future plans.

[Company Overview and Strategic Direction](index=1&type=section&id=Company%20Overview%20and%20Strategic%20Direction) [Introduction and Key Updates](index=1&type=section&id=Introduction%20and%20Key%20Updates) Veradigm released Q2 2025 estimates, reaffirmed FY2025 outlook, and appointed Donald Trigg as CEO - Veradigm provided **Q2 2025 financial estimates**, details on **recent financing activities**, and **reaffirmed its FY2025 outlook**[1](index=1&type=chunk) - Donald Trigg joined Veradigm as **Chief Executive Officer and Board member** on **September 2, 2025**[2](index=2&type=chunk) [New Leadership and Strategic Vision](index=1&type=section&id=New%20Leadership%20and%20Strategic%20Vision) New CEO Donald Trigg outlined plans to boost profitability, revive growth, and ensure timely SEC filings - CEO Don Trigg outlined Veradigm's immediate path: **enhance profitability**, **revitalize growth**, and **timely complete SEC financial filings**[3](index=3&type=chunk) - The company possesses a **large national physician practice base** and **differentiated data assets** offering a 'mainstream health' perspective[3](index=3&type=chunk) [About Veradigm](index=2&type=section&id=About%20Veradigm) Veradigm is a healthcare technology company providing advanced insights and data-driven solutions - Veradigm is a healthcare technology company that creates value through its **unique combination of platform, data, expertise, connectivity, and scale**[9](index=9&type=chunk) - The Veradigm network provides **advanced insights, technology, and data-driven solutions** for healthcare providers, payers, and the biopharmaceutical market[9](index=9&type=chunk) [Second Quarter 2025 Financial Performance](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Performance) [Preliminary Unaudited Financial Overview](index=1&type=section&id=Preliminary%20Unaudited%20Financial%20Overview) Veradigm reported preliminary Q2 2025 GAAP revenue of $145-$148 million, with $350M cash and $283M debt Financial Metrics Overview | Metric | Q2 2025 Estimate | YoY Change (Midpoint) | | :----- | :--------------- | :--------------------- | | Revenue (GAAP) | $145 million - $148 million | -2% | | Cash & Equivalents (as of Jun 30, 2025) | $350 million | Increase of ~$78M from Mar 31, 2025 | | Debt (as of Jun 30, 2025) | $283 million | | [Revenue Performance](index=4&type=section&id=Revenue%20Performance) Q2 2025 GAAP revenue projected at $145-$148 million, with provider revenue at $115-$117 million Revenue Breakdown | Revenue Segment | Q2 2025 (Estimate) | Q2 2024 | H1 2025 (Estimate) | H1 2024 | | :-------------- | :----------------- | :-------- | :----------------- | :-------- | | Provider Revenue (GAAP) | $115 million - $117 million | $119 million - $120 million | $228 million - $232 million | $234 million - $236 million | | Payer & Life Sciences Revenue (GAAP) | $30 million - $31 million | $29 million - $30 million | $61 million - $63 million | $58 million - $60 million | | **Total Veradigm Revenue (GAAP)** | **$145 million - $148 million** | **$148 million - $150 million** | **$289 million - $295 million** | **$292 million - $296 million** | [Cash and Debt Position](index=5&type=section&id=Cash%20and%20Debt%20Position) As of June 30, 2025, cash and equivalents totaled $350 million, up $78M from March 31, with total debt at $283M Cash and Debt Summary | Metric | Jun 30, 2025 | Dec 31, 2024 | | :----- | :------------ | :---------------- | | Cash & Cash Equivalents | $350 million | $294 million | | Debt | $283 million | $208 million | - Cash and equivalents increased by approximately **$78 million** from March 31, 2025, reflecting **$72 million in net debt financing inflows**, **$23 million in net portfolio activity inflows**, **$7 million in capital expenditure outflows**, and **$10 million in net operating activity outflows**[5](index=5&type=chunk) [Operational Highlights](index=2&type=section&id=Operational%20Highlights) Q2 2025 commercial team secured over $30 million in ACV, consistent with Q1, with stable revenue - The commercial team completed over **$30 million in annual contract value (ACV) transactions** in Q2 2025, consistent with Q1[7](index=7&type=chunk) - The interim CFO stated that **stable revenue performance** and a **robust capital base** are foundational pillars for the company's future success[7](index=7&type=chunk) [Financing Activities](index=1&type=section&id=Financing%20Activities) [Convertible Notes Repurchases](index=1&type=section&id=Convertible%20Notes%20Repurchases) Veradigm completed two convertible note repurchases totaling $230 million, reducing outstanding notes - On July 1, 2025, the company repurchased approximately **$180 million of convertible notes** using cash on hand, including **$164 million in principal** and **$16 million in contractual repurchase premium plus accrued interest**[5](index=5&type=chunk) - On September 29, 2025, the company repurchased approximately **$50 million of convertible notes** using cash on hand, including **$44 million in principal** and **$6 million in contractual repurchase premium plus accrued interest**[5](index=5&type=chunk) [Debt Structure Post-Repurchases](index=2&type=section&id=Debt%20Structure%20Post-Repurchases) Post-repurchases as of September 29, 2025, Veradigm's debt is primarily $75 million from a senior secured term loan - As of September 29, 2025, post-convertible note repurchases, the majority of the company's debt consists of **$75 million outstanding** under its senior secured term loan facility[6](index=6&type=chunk) - As of September 29, 2025, the company had **108.9 million common shares outstanding** and **10.6 million unvested restricted stock units**[6](index=6&type=chunk) [Fiscal Year 2025 Outlook](index=2&type=section&id=Fiscal%20Year%202025%20Outlook) [Reaffirmed Financial Expectations](index=2&type=section&id=Reaffirmed%20Financial%20Expectations) Veradigm reaffirmed FY2025 outlook, projecting GAAP revenue flat with FY2024 ($583-$588 million) and positive net cash FY 2025 Financial Outlook | Metric | FY 2025 Outlook | FY 2024 Estimate Range | | :----- | :------------------ | :---------------------- | | Revenue (GAAP) | Largely Flat | $583 million - $588 million | | Net Cash | Expected to Remain Positive | | [Investor Relations](index=2&type=section&id=Investor%20Relations) [Conference Call and Webcast Details](index=2&type=section&id=Conference%20Call%20and%20Webcast%20Details) Veradigm management will host an investor conference call and webcast on October 1, 2025, at 8:00 AM ET - Veradigm management plans to host an **investor conference call and webcast** on **October 1, 2025, at 8:00 AM ET**[7](index=7&type=chunk) - Participants can access the call via the **Veradigm Investor Relations website** or by dialing **877-405-1224** or **201-389-0848 (Access ID 13755960)**, with a replay available on the website for one year[8](index=8&type=chunk) [Legal and Forward-Looking Statements](index=3&type=section&id=Legal%20and%20Forward-Looking%20Statements) [Disclaimer on Preliminary Results](index=3&type=section&id=Disclaimer%20on%20Preliminary%20Results) Preliminary, unaudited financial estimates are subject to change upon completion of financial closing procedures - The financial performance estimates in this press release are **preliminary, unaudited results**, and final results may change upon completion of the company's financial closing procedures[12](index=12&type=chunk) [Forward-Looking Statements and Risk Factors](index=3&type=section&id=Forward-Looking%20Statements%20and%20Risk%20Factors) This release contains forward-looking statements based on management's beliefs, subject to risks like unlisted common stock, delayed reporting, internal control issues, SEC investigation, and litigation - This press release contains **forward-looking statements** based on management's current beliefs and expectations regarding future events, subject to **significant risks and uncertainties**[13](index=13&type=chunk) - Key factors that could cause actual results to differ materially from forward-looking statements include risks such as **common stock not trading on a national securities exchange**, **delayed financial reporting**, **internal control deficiencies**, **SEC investigation**, **litigation**, **leadership recruitment**, and **additional indebtedness**[14](index=14&type=chunk)

Core Points - Veradigm LLC experienced a data breach that was discovered around July 1, 2025, involving unauthorized access to customer data [1][3] - The breach likely exposed sensitive personal information, including names, Social Security numbers, contact details, dates of birth, health records, insurance information, payment data, and driver's license numbers [4] Company Overview - Veradigm LLC is a healthcare technology company that provides data-driven tools and solutions aimed at enhancing patient care and reducing healthcare costs [2] Incident Details - The data breach occurred around December 15, 2024, shortly after another security issue affected a different client of Veradigm [3] - The compromised storage account was the entry point for the unauthorized access to customer data [3] Legal Actions - Edelson Lechtzin LLP is investigating potential class action lawsuits for individuals whose sensitive personal data may have been compromised due to the breach [5]

Core Insights - Veradigm, previously known as Allscripts, has a long history in healthcare IT and has experienced multiple market cycles [1] - The company underwent rebranding in 2022 after selling its previous business [1] Company Overview - Veradigm is focused on identifying growth opportunities in the stock market while maintaining a reasonable price and strong economic moats [1] - The company emphasizes high-quality analysis, including valuations, key business drivers, risk/reward assessments, and various future scenarios [1]

Core Points - Veradigm LLC, a health information technology company, announced a cybersecurity incident affecting the personal information of tens of thousands of individuals [1] - The breach involved unauthorized access to personally identifiable information (PII) including names, contact details, dates of birth, health records, health insurance information, payment details, Social Security numbers, and driver's license numbers [1] Legal Implications - Lynch Carpenter, LLP is investigating claims against Veradigm related to the data breach, indicating potential legal actions for affected individuals [2] - Individuals who received a data breach notification from Veradigm may be entitled to compensation [2] Company Background - Lynch Carpenter is a national class action law firm with a focus on data privacy matters, representing millions of clients over more than a decade [3]

Core Viewpoint - Veradigm, a prominent provider of healthcare data and technology solutions, is set to provide a business update on September 30th, 2025, after market hours, followed by an investor conference call on October 1st, 2025, at 8:00 a.m. Eastern Time [1] Group 1 - Veradigm will announce a business update after the close of regular stock market hours on September 30th, 2025 [1] - An investor conference call and webcast will be held to discuss the company's update on October 1st, 2025 [1] - The announcement will be distributed promptly after the market closes [1]

Veradigm (MDRX) Investor Update Conference Call Summary Company Overview - **Company**: Veradigm (MDRX) - **Date of Call**: June 24, 2025 - **Key Speakers**: Tom Langan (Interim CEO), Lee Westerfield (Interim CFO) Key Industry Insights - **Industry**: Healthcare Technology - **Market Demand**: Positive signs of growth in new business, particularly in payer and provider markets, indicating strong market demand for Veradigm's solutions and services [4][5][11] Core Financial Highlights - **Annual Contract Value**: Signed deals valued at over $30 million in annual contract value with new customers in Q1 2025 [4] - **Revenue Performance**: Estimated revenue for Q1 2025 is between $145 million to $147 million, reflecting a 1% increase year-over-year [22] - **Recurring Revenue**: Approximately 78% of total revenue is recurring, consistent with previous year [22] - **Provider Segment Revenue**: Estimated revenue from the provider segment is between $113 million to $115 million, essentially flat compared to the prior year [22] - **Payer and Life Science Revenue**: Estimated revenue in this segment is between $31 million to $32 million, an 8% increase year-over-year [22] Strategic Initiatives - **Product Development**: Continued strengthening of products and solutions, particularly in specialty practices like urology and orthopedics [6][9] - **AI Integration**: Development of AI capabilities aimed at enhancing provider workflow efficiencies and financial enhancements [13][14] - **Operational Improvements**: Implementation of a new ERP system scheduled to go live in 2026, aimed at improving operational efficiency [14][60] Recognition and Awards - **Awards**: Veradigm payer insights received the 2025 CLAS points of light award, and Black Book rated Veradigm payer analytics as the number one provider for health plans [6] Customer Engagement - **Customer Summit**: Increased attendance by over 50% at the Veradigm Customer Summit, indicating strong customer engagement and interest in the company's vision and solutions [10] Challenges and Risks - **Client Attrition**: Client attrition was in line with assumptions, particularly in the larger physician segment, which continues to face challenges [4][54] - **Market Headwinds**: Some headwinds in the life sciences market due to policy changes and R&D investment shifts, but overall positive momentum observed [48][74] Financial Position and Outlook - **Debt Financing**: Entered into a credit agreement providing up to $100 million, with an initial draw of $75 million [28][30] - **Cash Position**: Cash on hand was $272 million as of March 31, 2025, down $23 million from year-end 2024 [24] - **Profitability Outlook**: No specific earnings guidance for 2025 provided, but ongoing cost initiatives are expected to improve profitability in future years [42][59] Conclusion - **Future Plans**: Veradigm aims to regain current status with SEC financial filings by 2026 and plans to continue providing periodic business updates until compliance is achieved [32][36] - **Leadership Transition**: Tom Langan announced his departure from the leadership team, marking the end of his tenure during this call [37][84]

Veradigm 2025 Financial & Business Update [Business & Commercial Update](index=1&type=section&id=Business%20%26%20Commercial%20Update) Veradigm secured over **$30 million** in Q1 2025 annual contract value, a **25% increase**, while progressing towards current SEC filings by 2026 - Closed deals with over **$30 million** in annual contract value in Q1 2025, representing a **25% increase** compared to the same period in 2024[2](index=2&type=chunk) - The company is actively working to become current in its SEC financial filings and anticipates completion in **2026**[2](index=2&type=chunk) [Preliminary Q1 2025 Financial Results](index=1&type=section&id=Preliminary%20Q1%202025%20Financial%20Results) For Q1 2025, Veradigm estimates GAAP revenue between **$145M-$147M**, with cash decreasing to **$272M** and debt stable at **$208M** Preliminary Financials as of March 31, 2025 | Metric | Value (Estimated) | | :--- | :--- | | GAAP Revenue (Q1 2025) | $145M - $147M | | Cash and Equivalents | ~$272M | | Debt | ~$208M | Q1 Revenue Comparison (YoY) | Revenue Segment | Q1 2025 (Est.) | Q1 2024 (Est.) | | :--- | :--- | :--- | | Provider | $113M - $115M | $115M - $116M | | Payer & Life Science | $31M - $32M | $29M - $30M | | **Total GAAP Revenue** | **$145M - $147M** | **$144M - $146M** | - Cash and equivalents decreased by approximately **$23 million** from December 31, 2024, due to **~$13M** for prior acquisitions, **~$6M** for capital expenditures, and **~$4M** in net operating outflows[5](index=5&type=chunk) [Debt & Liquidity](index=1&type=section&id=Debt%20%26%20Liquidity) Veradigm secured a new **$100M** loan, drawing **$75M**, increasing total expected debt to **$283M** by June 30, 2025 New Debt Financing Details | Feature | Detail | | :--- | :--- | | Total Facility | Up to $100M | | Amount Drawn | $75M (on June 18, 2025) | | Interest Rate | SOFR + 750 basis points | | Term | 5 years | Expected Debt Structure (as of June 30, 2025) | Debt Component | Amount | | :--- | :--- | | New Borrowings | $75M | | 2019 Convertible Notes (Principal) | $208M | | **Total Expected Debt** | **$283M** | - If all holders of the 2019 convertible notes exercise their repurchase option on July 1, 2025, the required repayment would be **$228 million**[4](index=4&type=chunk) [Fiscal Year 2025 Outlook](index=2&type=section&id=Fiscal%20Year%202025%20Outlook) Veradigm reaffirms its FY2025 outlook, expecting GAAP revenue to be flat compared to 2024 estimates of **$583M-$588M**, with positive net cash FY 2025 Financial Outlook | Metric | Outlook | | :--- | :--- | | GAAP Revenue | Approx. flat compared to 2024 (Est. $583M - $588M) | | Net Cash | Expected to remain positive | [SEC Filings and Stock Information](index=2&type=section&id=SEC%20Filings%20and%20Stock%20Information) The company aims to become current with SEC filings by **2026** for relisting, with **108.6M** common shares outstanding as of June 10, 2025 - The company plans to become current in its SEC filings during **2026** and subsequently seek to relist its common stock[6](index=6&type=chunk) Share Information (as of June 10, 2025) | Security Type | Outstanding | | :--- | :--- | | Common Stock | 108.6 million shares | | Unvested Restricted Stock Units | 10.9 million units | [Investor Communication](index=2&type=section&id=Investor%20Communication) Veradigm management will host an investor conference call and webcast on June 24, 2025, to discuss the company's update - An investor conference call and webcast is scheduled for **8:00 a.m. ET** on **June 24, 2025**, to discuss the company's update[6](index=6&type=chunk)[7](index=7&type=chunk) [Disclaimer and Forward-Looking Statement Information](index=3&type=section&id=Disclaimer%20and%20Forward-Looking%20Statement%20Information) Preliminary unaudited financial results are subject to change, and forward-looking statements carry significant risks including SEC investigations - The estimated financial results are preliminary, unaudited, and may change upon completion of the financial closing audit[11](index=11&type=chunk) - The report contains forward-looking statements that are subject to significant risks, including delays in SEC filings, potential for additional accounting errors, ongoing SEC investigations, and litigation[12](index=12&type=chunk)[13](index=13&type=chunk)

Financial Data and Key Metrics Changes - The company completed its 2022 restatement and is on track to become current with its filing obligations [6][8] - For 2023, estimated GAAP revenue is projected to be between $620 million and $625 million, with recurring revenue making up approximately 80% of total revenue [23][24] - Adjusted EBITDA for 2023 is estimated to be between $139 million and $144 million, which is higher than previously estimated [24] - For 2024, GAAP revenue is estimated to be between $583 million and $588 million, with a recurring revenue percentage consistent with prior years [27] - Adjusted EBITDA for 2024 is estimated to be between $85 million and $90 million, below previous guidance [29][30] Business Line Data and Key Metrics Changes - Provider business revenue dipped by 1% year-over-year, while payer and life sciences revenue declined by 10% [27][28] - The company signed significant contracts in its provider business, including a multimillion-dollar deal with a large urology practice and a major wound care organization [13][14] - The payer business saw the onboarding of nearly 400 new sites in 2025, with care gap alerts provided to over 3,500 healthcare practices [14] Market Data and Key Metrics Changes - The company experienced unexpected revenue shortfalls in the payer and life sciences segments, particularly in Q4 of 2024 [26][68] - The life sciences segment saw softness in media revenue and real-world data sales, while the payer segment faced implementation delays [68] Company Strategy and Development Direction - The company aims to remediate material weaknesses and enhance internal controls while executing its growth strategy [15][36] - The focus is on expanding the core provider base and enhancing the value of offerings, including AI-enabled workflows [15][16] - The company is pursuing additional debt financing to ensure liquidity and support future growth [80] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business model despite revenue shortfalls and emphasized the importance of operational improvements [12][36] - The outlook for 2025 anticipates flat revenue compared to 2024, with expectations of growth from new customers offset by customer attrition [32][58] - Management noted that the remediation efforts and regaining current filing status are expected to occur in 2026 [33][41] Other Important Information - The company incurred significant external audit and legal fees in 2023 and 2024, impacting cash flow [9][30] - The acquisition of Science.io and Koa Health is expected to impact EBITDA margins due to new costs associated with these businesses [101][102] Q&A Session Summary Question: Clarification on remediation efforts and filing status - Management clarified that remediation efforts can continue while regaining currency on filings, with both expected to occur in 2026 [38][40] Question: Net attrition in provider business - Higher net attrition was noted in the core provider business, particularly in revenue cycle management, but not driven by market consolidation [44][46] Question: Revenue visibility for FY 2025 - Management indicated that while revenue is expected to be flat, there are uncertainties due to customer attrition and the need for a rebound from the previous year's shortfall [60][63] Question: Trends in life sciences and pharma segment - Management noted softness in media revenue but observed a pickup in spending in Q1 2025, indicating potential recovery in the life sciences segment [89] Question: Impact of acquisitions on financials - The acquisition of Science.io is not expected to contribute revenue in 2024, but it is seen as a strategic investment in AI capabilities [97][100]

Financial Performance - Veradigm reported total revenue of $588.0 million for the year ended December 31, 2022, an increase from $577.4 million in 2021, representing a growth of 1.0%[11] - The company's gross profit for 2022 was $308.4 million, up from $282.4 million in 2021, indicating a gross margin improvement[11] - Net loss for 2022 was $86.4 million, compared to a net income of $139.7 million in 2021, reflecting a significant decline in profitability[11] - Total revenue for the Provider segment in 2022 was $588.0 million, with a gross profit of $353.5 million[16] - Total revenue for 2022 was $465.9 million, a slight decrease from $478.4 million in 2021, representing a year-over-year decline of approximately 2.6%[19] - Gross profit for 2022 was $233.1 million, down from $234.2 million in 2021, indicating a decrease of about 0.5%[19] - Non-GAAP gross profit for 2022 was $267.4 million, compared to $270.9 million in 2021, reflecting a decline of approximately 1.3%[19] - Payer & Life Science revenue for 2022 reached $122.1 million, a significant increase from $99.0 million in 2021, marking a growth of approximately 23.2%[19] - Non-GAAP gross profit for Payer & Life Science in 2022 was $86.1 million, up from $57.2 million in 2021, representing an increase of about 50.6%[19] - Adjusted EBITDA for 2022 was $141.4 million, with an adjusted EBITDA margin of 24.0%, down from 29.2% in 2021[13] - Non-GAAP net income for 2022 was $56.9 million, compared to $152.4 million in 2021[13] - The company reported a GAAP effective tax rate of 69% for 2022, compared to 19% in 2021[13] - The diluted loss per share from continuing operations was $0.18 for 2022, compared to earnings of $0.92 per share in 2021[13] - The company experienced a loss from discontinued operations of $7.1 million in 2022, compared to a gain of $15.8 million in 2021[13] - Total revenue for the year was $577.4 million, with Q4 revenue reaching $157.2 million, representing a 10.5% increase from Q3[22] - Adjusted EBITDA for the year was $141.4 million, with Q4 adjusted EBITDA at $42.3 million, showing a 25.5% increase from Q3[22] - Non-GAAP net income for the year was $152.4 million, with Q4 non-GAAP net income at $24.0 million, a significant recovery from a loss in Q3[22] - GAAP net income for the year was $139.7 million, with Q4 GAAP net income at $73.7 million, indicating a strong performance in the last quarter[22] - Gross profit for the year was $353.5 million, with Q4 gross profit at $98.3 million, reflecting a solid margin performance[22] - The company experienced a loss from discontinued operations of $15.8 million for the year, with Q4 showing a gain of $6.8 million[22] - Weighted shares outstanding on a diluted basis were 138.7 million for the year, with Q4 at 116.8 million[22] Liquidity and Assets - Cash and cash equivalents increased to $446.6 million as of December 31, 2022, compared to $133.7 million in 2021, showing a substantial improvement in liquidity[9] - Total assets decreased to $1,504.7 million in 2022 from $2,311.1 million in 2021, indicating a reduction in the asset base[9] - Total liabilities were reported at $487.2 million in 2022, down from $950.7 million in 2021, reflecting a decrease in financial obligations[9] Research and Development - Research and development expenses rose to $97.9 million in 2022, compared to $84.1 million in 2021, highlighting an increased focus on innovation[11] Strategic Focus and Future Outlook - The company aims to remediate material weaknesses in financial reporting and improve internal controls as part of its growth strategy[3] - Veradigm is focused on executing its growth strategy to deliver end-to-end solutions for clients and plans to relist its common stock[3] - The company aims to expand its market presence and enhance product offerings in the upcoming fiscal year[20] - Future outlook includes continued investment in new technologies and potential strategic acquisitions to drive growth[21] - The company has indicated a focus on strategic acquisitions to enhance its competitive position in the market[22] Non-GAAP Financial Measures - Veradigm reported a non-GAAP gross profit, which excludes acquisition-related amortization and stock-based compensation, providing a clearer view of operational performance[24] - The company’s Adjusted EBITDA reflects GAAP net income adjustments, including interest, depreciation, and asset impairment charges, indicating a focus on core business operations[24] - Non-GAAP net income excludes discontinued operations and adds back acquisition-related amortization, stock-based compensation, and other non-cash charges, highlighting underlying profitability[24] - The effective income tax rate for non-GAAP measures is aligned with the statutory federal and state rates, providing a more accurate tax impact on earnings[24] - Acquisition-related amortization is excluded from key financial metrics as it may not correlate directly with current business performance, emphasizing the focus on ongoing operations[28] - Stock-based compensation is treated as a non-cash expense, reflecting the company's incentive structure for employees contributing to operational results[29] - Asset impairment charges are excluded from Adjusted EBITDA, indicating management's assessment of asset value recovery potential[30] - Transaction and other revenue and expenses are excluded from non-GAAP metrics, as they do not reflect core business performance, ensuring clarity in financial reporting[32] - The company uses non-GAAP diluted income per share and Adjusted EBITDA for internal forecasting and incentive compensation plans, indicating their importance in performance measurement[26] - Non-GAAP financial measures are not a substitute for GAAP measures, and investors are encouraged to review reconciliations for a comprehensive understanding of financial performance[27]