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

Jessica Tassan: Got it. And so then would you expect kind of the mix of bookings or just the pace of bookings from net new customers to moderate or that should remain strong despite the market generally having upgraded to be compliant?

David Sides: Yeah. I think it stays strong like you’ve seen it. We’ve been very consistent around 25%. We did a little bit better this quarter, 28%. But it’s consistent. And the nice part about those clients is, they’re bringing a lot of applications and Surround solutions at once, always hosted. So another way of saying that is, they’re buying everything and it makes them sticky. So the part that we like about that is, we see the more like those things, the more solutions we get installed stickier they become and then new clients that are coming to us are buying everything at once. So they’re sticky from the start, which, if you think about our base, they may have started somewhere 10 years ago, we’ve been moving them along over time. It’s nice that our sales process is mature enough to sell everything at once and create a very sticky client right from the start.

Jessica Tassan: Got it. That’s really helpful. And my final one would just be, are the providers that you all signed so far for MSSP. Are those providers who are already participating? And if so, what were they using previously to support their participation in MSSP? Thanks again.

Jessica Tassan: Yes, it’s a good question. So thanks, Jessica. Most of them are new to — new to the MSSP process, but we did have some conversions from competitors that aren’t our normal competitors, right? So it’s not like we converted them from [indiscernible] or whoever, we converted them from the kind of that different class of competitor that is still yet to prove out profitability of their business model. And the way we’re looking at it is, we’re trying to create a profitable business model right from the start with the very first 200 providers. So it’s one of the differentiated way we’re going to market is that, we’re not spending, it’s going to be profitable from the start. Let me just say that. We’re not spending tons of money to make an unprofitable business model. We’d rather move into size and scale for our providers and we think there’s a lot of movement here, but we’re moving over time profitable from the start.

Jessica Tassan: Thanks again.

Operator: Thank you. And there are no additional questions at this time. I’d like to now turn the conference over to Mr. David Sides for any closing remarks.

David Sides: Thank you all for joining the conference call. We really look forward to talking to you again in the fall, in October for earning call and potentially for an Investor Day in November. So appreciate everyone’s interest and we’ll talk to you soon. Thanks.

Operator: Thank you. Ladies and gentlemen, this concludes today’s presentation. You may now disconnect.