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NextGen Healthcare, Inc. NXGN delivered adjusted earnings per share (“EPS”) of 24 cents in the third quarter of fiscal 2022, down 7.7% year over year. The figure, however, surpassed the Zacks Consensus Estimate by 14.3%.
GAAP EPS in the quarter was 8 cents, reflecting a stupendous surge of 700% from the year-earlier figure.
Revenue Details
NextGen registered revenues of $149.7 million in the fiscal third quarter, up 5.6% year over year. The figure surpassed the Zacks Consensus Estimate by 2.5%.
Segment Details
NextGen generates revenues from two sources — Recurring revenues, and Software, hardware and other non-recurring revenues.
Total Recurring revenues (89.8% of total revenues) were $134.5 million, up 4.9% from the year-ago quarter.
Total Software, hardware and other non-recurring revenues (10.2% of total revenues) amounted to $15.2 million, up 12.7% on a year-over-year basis.
NextGen Healthcare, Inc. Price, Consensus and EPS Surprise
NextGen Healthcare, Inc. price-consensus-eps-surprise-chart | NextGen Healthcare, Inc. Quote
Margins
In the quarter under review, NextGen’s adjusted gross profit rose 3.7% to $83.7 million. However, adjusted gross margin contracted 105 basis points (bps) to 55.9%.
Selling, general and administrative expenses fell 3.5% to $47.2 million. Research and development expenses went up 6.6% year over year to $19.4 million. Adjusted operating expenses of $66.6 million dipped 0.8% year over year.
Adjusted operating profit totaled $17.1 million, reflecting a 25.8% uptick from the prior-year quarter. Adjusted operating margin in the fiscal third quarter expanded 183 bps to 11.4%.
Financial Position
NextGen exited the third quarter of fiscal 2022 with cash and cash equivalents of $49.4 million compared with $75.3 million at the end of fiscal second quarter.
Cumulative net cash flow from operating activities at the end of the third quarter of fiscal 2022 was $36.6 million compared with $75.9 million a year ago.
In October 2021, NextGen’s management approved a $60-million share repurchase program. In the reported quarter, the company purchased approximately 2.2 million shares, worth $35.9 million, in the open market.
Fiscal 2022 Guidance
NextGen has raised its financial outlook for fiscal 2022.
The company now projects revenues in the range of $591-$595 million (up from the previously guided range of $584-$590 million). The Zacks Consensus Estimate for the same is pegged at $588.1 million.
Adjusted EPS is now projected in the band of 96 cents-$1.00 (up from the prior guidance of 90-96 cents). The Zacks Consensus Estimate for the same stands at 95 cents.