Veradigm (US:MDRX)2025-03-18 21:24Financial 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]