NextGen Healthcare Inc., an Irvine-based healthcare software provider, is seeing its investments in telehealth pay off.
The company (Nasdaq: NXGN) on July 30 reported fiscal first-quarter revenue of $130.9 million, which surpassed analysts’ expectations of $115 million. The company reported revenue of $131.9 million in the same period a year ago.
In the three trading sessions after the report, its shares climbed 19% to $14.31 and a $955 million market cap. Its shares have almost tripled since their 52-week low of $5.10 in March.
Adjusted profit, which excludes some one-time costs, jumped to $14.1 million, or 21 cents a share, compared with $10.5 million, or 16 cents in the same period a year ago. On a GAAP basis, the company reported a loss of $824,000.
The company said in its earnings call its biggest loss came from reduced patient volume at the company’s ambulatory practice clients, while significant gains came from continued growth in its subscription revenue and nonrecurring service revenue.
The firm saw its sales volumes decline initially in March and April before recovering to about 90% of pre-COVID levels where they have remained stable, Chief Executive Rusty Frantz said.
“We believe that volume will be relatively stable to improving as people have learned how to interact with their providers in the COVID world, both virtually and in person,” Frantz said.
The company did not provide guidance for the rest of the year because of “the continued uncertainty of the market.”
425K Virtual Visits
In the last quarter of 2019, NextGen made three acquisitions: behavioral health services platform Topaz Information Solutions; patient engagement platform Medfusion Inc. and telehealth provider Otto Health.
At the time of the announcements, NextGen said it planned to merge the latter two platforms to bolster its virtual visit capabilities.
NextGen’s new patient experience platform, which launched earlier this year, includes integrated virtual visits, patient self-scheduling, pre-visit check-in, patient engagements, payment processing and more.
The company said in its first quarter it saw more than 425,000 virtual visits compared to about 40,000 in the fiscal fourth quarter of 2020.
“Many of these visits might not otherwise have occurred as a result of the pandemic,” said Frantz, who pointed out that NextGen has the ability to offer virtual and in-person experiences through its clients’ wide breadth of services in a variety of specialties such as optometry and cardiology.
Moving forward, the company said it plans to double down on its investments.
“As we move through the quarter, our attention has turned back to innovation, commercial execution and growth based on our differentiated, future-facing ambulatory platform that is purpose built to engage with patients in their wellness journey,” Frantz said.