Athenahealth released its earnings results for the third quarter of 2018 on Nov. 9.
In a statement, athenahealth noted it adopted a new revenue recognition standard Jan. 1, which hinders its ability to compare its quarterly revenue with last year's earnings. To address the discrepancy, athenahealth provided figures on both its revenue as presented today, and as it would have been presented before implementing the new revenue standard.
Here are four things to know about the Watertown, Mass.-based healthcare software vendor's financial performance:
1. Athenahealth posted $329.5 million in revenue for the third quarter. The company's revenue would have been presented as $331.4 million before implementing the new revenue standard, up 9 percent from the $304.6 million it reported during the same period last year.
2. Business services made up most of athenahealth's third-quarter revenue at $322.7 million under the previous revenue standard, up 9 percent from the third quarter of 2017. Athenahealth attributed its remaining $8.7 million in revenue to implementations and other services.
3. Athenahealth posted $26.4 million in net income, or $21.5 million under the previous revenue standard. The $21.5 million figure represents a 65 percent increase from the $13 million in net income the company reported during the third quarter of 2017.
4. The company reaffirmed its expectations for its full-year 2018 revenue, which it expects to be in the range of $1.33 billion to $1.36 million.
"During [the third quarter], we achieved stable top-line growth on a comparable basis and significantly improved profitability and operating cash flow year-over-year," said athenahealth CFO Marc Levine. "We are confident in the opportunities available to athenahealth. Athenahealth maintains a differentiated position in the market, and continues to drive positive change for our clients, expand the value of our core offerings and unlock value for our shareholders."
In a Nov. 9 statement releasing its earnings results, athenahealth said it planned to hold a conference call Nov. 12 to discuss "these results and management's outlook for future financial and operational performance." In a separate Nov. 12 announcement, athenahealth detailed its agreement to be acquired by two private equity firms, and the company canceled the call, citing "today's announcement and the pending transaction."