EHR giant Allscripts
reported first quarter record highs this week, with bookings reaching $223 million.
This represents an increase of 26 percent when compared with Allscripts' 2013 first quarter bookings of $178 million, company officials noted, citing new sales of electronic health record
-related software, revenue management, population health solutions and managed IT service offerings as the reason. Allscripts added 130 new clients in Q1 2014, officials noted on a May 8 earnings call, including clients in the U.K. and Australia.
One area in which the company saw significant growth was in population health management sales. A huge portion of the first quarter 2014 bookings, some 36 percent, were from the sale of population health management solutions. Contract revenue backlog also increased slightly to $3.4 billion as of March 31, 2014.
"We believe this is a solid start to the year," said Paul M. Black, president and chief executive officer of Allscripts, in a May 8 earnings call. "This quarter we continued to meet client obligations and drive advances on key strategic initiatives. As a result, we are seeing strengthening confidence across the Allscripts client base. Our first quarter financial performance positions us well for a successful year," Black then noted in a press statement.
Added Black, "Continued momentum within the business is evidenced by bookings, which grew 26 percent over the same period last year. In January, we presented three-year goals for growth in non-GAAP revenue and adjusted EBITDA, and we are executing against those targets."
Other financial highlights include:
Non-GAAP Q1 2014 revenue stood at $345 million compared with $348 million in the first quarter of 2013. Moreover, in Q1 2014 recurring revenue was 78 percent of total revenue compared with 74 percent in the first quarter of 2013. On a GAAP basis, first quarter 2014 revenue was lower, at $340 million compared with $347 million in the first quarter of 2013.
On a non-GAAP basis, first quarter 2014 gross margin expanded to nearly 45 percent compared with 42.5 percent in Q1 2013. On a GAAP basis, first quarter 2014 gross margin expanded to 40.6 percent compared with 38.7 percent in the first quarter of 2013.
Black noted the non-GAAP adjusted EBITDA stood at $48 million in Q1 2014 compared with $50 million in Q1 2013. When evaluating differences between comparable periods, he noted non-GAAP adjusted EBITDA in the first quarter of 2013 included one-time gains reaching $8 million, recorded in other income.
Just this April Allscripts competitor Cerner
also reported an all-time high for first quarter results, with bookings pegged at $910.2 million, compared to 2013 first quarter bookings at $801.6 million. Cerner's revenue was also a 15 percent increase from Q1 2013, at $784.8 million.