13 in a Row for athenahealth, Inc (ATHN)

Page 1 of 2

The number 13 stood out for athenahealth, Inc (NASDAQ:ATHN) CEO Jonathan Bush when discussing his company’s earnings announced on Thursday. That’s the number of consecutive years that athenahealth grew sales by 30% or more. There were other good numbers mentioned in the quarterly results also — enough to send shares rising more than 4% in early trading on Friday. Let’s take a look.

Up and up
Fourth-quarter revenue was up 26% year-over-year to $116.3 million. GAAP earnings came in at $5.9 million, or $0.16 per diluted share. That’s up from $5.3 million, or $0.15 per diluted share, in the fourth quarter of 2011. Adjusted earnings increased to $0.29 per diluted share from $0.26 per diluted share in the prior year. The average analyst estimate was $0.28 per share.

athenahealth, Inc (NASDAQ:ATHN)Not everything was up for the full year. Revenue jumped 30% from 2011′s total of $324.1 million to $422.3 million in 2012. However, GAAP earnings fell from $0.53 per diluted share in 2011 to $0.50 per share in 2012. On an adjusted basis, though, earnings were up — from $0.88 per diluted share in 2011 to $1.00 per share in 2012. Stock-based compensation expenses made the key difference between the GAAP and adjusted figures.

Several other key product metrics shared by athenahealth showed strong year-over-year growth. The company’s athenaCollector medical billing service had 39,752 active providers on board in 2012, compared to 32,740 in the previous year. Its electronic health record system, athenaClinicals, grew from 6,525 active users in 2011 to 10,926 in 2012. The number of medical providers using patient communications portal athenaCommunicator increased to 14,065 from 10,153 the prior year.

From Epocrates, Inc. (NASDAQ:EPOC) to “I love Judy”
Yet again, athenahealth’s numbers looked good. And yet again, the more interesting stuff came from what Bush and his management team said on the conference call after the earnings results were announced.

Bush particularly noted the contrast between brand awareness between athenahealth and Epocrates, Inc. (NASDAQ:EPOC), which it is in the process of buying. While seven out of 10 doctors don’t know who athenahealth is, 90% of physicians recognize the Epocrates name. Bush sees great opportunities in getting more doctors to look at the cloud-based services offered by athenahealth with Epocrates under its wings.

When asked about getting providers to convert from legacy electronic medical record systems, Bush stated that his team “have to get better at explaining to people why their Flock of Seagulls EMR is going to go to the same place that their Flock of Seagulls vinyl albums went.” He acknowledged the challenges of going up against scenarios where hospitals buy software from Allscripts Healthcare Solutions Inc (NASDAQ:MDRX) and give it to doctors as inexpensively as they legally can. Of course, he could have also noted (but didn’t) that Allscripts’ revenue and earnings declined last quarter.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!