CPSI(CPSI) - 2023 Q4 - Annual Results

Revenue Performance - Fourth quarter 2023 total revenue was $85.9 million, an increase of 3.2% compared to $83.2 million in Q4 2022[15] - Full year 2023 total revenue reached $339.4 million, up from $326.6 million in 2022, marking a 3.5% increase[15] - Revenue Cycle Management (RCM) revenue for Q4 2023 was $51.0 million, representing 60.7% of total recurring revenue and 59.3% of total revenue[15] - Full year 2023 RCM revenue was $193.9 million, accounting for 58.9% of total recurring revenue and 57.1% of total revenue[15] - Bookings for Q4 2023 were $26.0 million, up from $24.7 million in Q4 2022[15] - Revenue from RCM for Q4 2023 was $6,596 thousand, down from $8,824 thousand in Q4 2022[25] - EHR revenue increased to $5,506 thousand in Q4 2023 from $4,886 thousand in Q4 2022[25] - Total revenue for the twelve months ended December 2023 was $47,576 thousand, compared to $55,899 thousand for the same period in 2022[25] - Total revenues for the fourth quarter of 2023 were $85,868 million, an increase of 3.2% compared to $83,224 million in the same period of 2022[34] - Revenue Cycle Management (RCM) segment generated $50,956 million in Q4 2023, up from $45,670 million in Q4 2022, reflecting a growth of 5.6%[34] - Patient engagement revenue reached $1,500 million in Q4 2023, a decrease of 5.4% from $1,586 million in Q4 2022[34] Financial Metrics - Adjusted EBITDA for Q4 2023 was $12.0 million, a decrease of 9.1% from $13.2 million in Q4 2022[15] - Adjusted EBITDA for Q4 2023 was $11,984, a decrease from $13,228 in Q4 2022, resulting in an Adjusted EBITDA margin of 14.0% compared to 15.9% in the prior year[26] - The company expects Q1 2024 revenue to be in the range of $82 million to $84 million and adjusted EBITDA between $8.5 million and $9.5 million[6] - For the full year 2024, the company projects revenue between $340 million and $350 million, with adjusted EBITDA of $45 million to $50 million[6] Net Income and Loss - The company reported a GAAP loss per diluted share of $(2.92) for Q4 2023, compared to a loss of $(3.15) for the full year 2023[15] - Net income for 2023 was $(45,789) thousand, a significant decrease from $15,867 thousand in 2022[22] - Net loss per common share for Q4 2023 was $(2.92), a decline from a net income of $0.17 per share in Q4 2022[34] - The company reported a net loss of $(42,474) million for the year ended December 31, 2023, compared to a net income of $2,517 million for the previous year[34] - Non-GAAP net income for Q4 2023 was $5,129, compared to $8,710 in Q4 2022, with Non-GAAP EPS at $0.36, down from $0.61[26] Expenses and Impairments - Total expenses for Q4 2023 were $127,649 million, significantly higher than $78,958 million in Q4 2022, marking an increase of 62%[34] - Operating loss for Q4 2023 was $(41,781) million, compared to an operating income of $4,266 million in Q4 2022[34] - The company reported an impairment of goodwill amounting to $35,913 thousand in 2023, with no such impairment recorded in 2022[22] - The company reported an impairment of goodwill amounting to $35,913 in Q4 2023, with no such impairment recorded in Q4 2022[26] - The company incurred severance and other nonrecurring charges of $22,186 for the twelve months ended December 2023, significantly higher than $4,505 in the previous year[26] - Interest expense for the twelve months ended December 2023 was $11,776, compared to $5,267 in the previous year[26] Cash Flow and Investments - Total cash provided by operating activities decreased to $1,059 thousand in 2023 from $32,375 thousand in 2022[22] - Cash and cash equivalents at the end of the period were $3,848 thousand, down from $6,951 thousand at the beginning of the period[22] - The company experienced a net cash used in investing activities of $(60,110) thousand in 2023, compared to $(62,731) thousand in 2022[22] - Proceeds from the revolving line of credit increased to $67,023 thousand in 2023 from $48,000 thousand in 2022[22] - The company invested $23,059 thousand in software development in 2023, up from $19,097 thousand in 2022[22] Market Position and Challenges - The recent acquisition of Viewgol is expected to strengthen the company's market position and enhance financial health for community hospital partners[15] - The company highlighted ongoing challenges in the healthcare industry, including market saturation and regulatory uncertainties, which may impact future performance[32] - Management emphasized the importance of non-GAAP financial measures as indicators of operational strength and performance trends[30] Contract and Subscription Growth - The company achieved net new RCM contracts of $7,130 million in Q4 2023, up from $5,173 million in Q4 2022, representing a growth of 37.8%[39] - Subscription revenue for EHR in Q4 2023 was $5,596 million, slightly up from $5,191 million in Q4 2022, indicating a growth of 7.8%[39]