NextGen Healthcare, Inc. (NASDAQ:NXGN) Q1 2024 Earnings Call Transcript

Sean Dodge: Okay. Great. That’s very helpful. And then, on the bookings, is there any more color you can share on the $39 million you signed in the quarter? Was that in line with plans? Were there any kind of pushes or pull? Anything that slipped or was pulled ahead from adjacent quarters? And then maybe give us a sense of the kind of cadence you need there in order to achieve the guidance for the year? Is $39 million a quarter good enough, or do you need something a little bit higher than that going forward?

David Sides: We need something higher than that going forward. Certainly for — especially, when you think out till 2025. I mean, we kind of talked about that before in the first quarter. The first quarter does feed into Q3 and Q4. But once we get to the third quarter, we’re really talking about the following year. And the beauty of our recurring business model is 91%, like we have really good visibility. So people are like, how do you know that your confidence around your kind of revenue forecast is because, it’s still recurring in nature. But we need better than $39 million in Q2 and we’re — the current forecast looks better than that. So we’re not nervous about that. But you’re starting — when you get into Q3 really setting up for 2025. So this quarter was good. Next quarter should be better. We feel good still about the year. And those latter half of this year’s bookings will really be about how do we continue the growth at double digits in 2025.

Sean Dodge: Okay. Great. Thanks again.

David Sides: Thanks.

Operator: Thank you. Our next question comes from Jailendra Singh with Truist Securities.

Jailendra Singh: Thank you and thanks for taking my questions. I actually want to double click on the data you shared around 200 providers and 30,000 attributed lives for 2024 CMS enrollment in MSSP and ACO products. A few questions there. First, how many of these 200 providers were you existing clients versus clients who are working with you just on value based care or these MSSP solutions? And second, maybe can you dig a little bit deeper on the key differentiation you guys have in your solutions compared to several other vendors out there doing, like, single value based care solutions?

David Sides: Thanks, Jailendra. So they’re all existing clients. So everyone we’ve targeted so far has been existing. And what we’re bringing is, we’re bringing them the tech and the technology and insights integrated into the workflow so that they can actually achieve those savings without having to do a lot of work, right? And what I mean by that is, so all of our population health applications and analytics, we bring that kind of face up in the application as they’re going through a clinical encounter with a patient. We’re telling them, you need to check the following things to get the outcomes that will generate the better shared savings. So that’s what differentiates us. We’re not — some places are taking lots of tech and then putting it together, we’re able to bring all of our tech to it and bring with that some of the clinical change support.

And importantly too, I’d point out that we have a proven model here. So we’ve seen us put out press releases with some of our clients that are generating $100 million in shared savings. We’re learning from those clients and we’re learning together and we’re further refining our models to do better in this construct.

Jailendra Singh: It’s kind of related to that. I think there was a proposal a couple of weeks back from CMS around some changes to the program and I know it might be a little early, but just curious if you had any early conversation with any provider clients because it seems like CMS expects some more participation and more lives to be attributed because of those changes. Just curious like have you heard anything in the last couple of weeks or so?