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

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

The 10 Biggest Outlet Malls in USA

The 5 Most Popular Rap Songs of All Time

The 10 Countries that Eat the Most Meat

The10 Most Expensive Countries to Fly To

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!