ATHENAHEALTH, INC. REPORTS THIRD QUARTER 2007 FINANCIAL RESULTS

November 1st, 2007 | Computer Software , Technology | 0 Comments »

33% Revenue Growth Compared to Same Quarter Last Year Quarterly Adjusted EBITDA of $4.2 million or 16% of Revenue Reports First Quarter of Net Income

WATERTOWN, Mass. (November 01, 2007) – (PrimeNewswire via COMTEX News Network) — 33% Revenue Growth Compared to Same Quarter Last Year – Quarterly Adjusted EBITDA of $4.2 million or 16% of Revenue – Reports First Quarter of Net Income

WATERTOWN, Mass., Nov. 1, 2007 (PRIME NEWSWIRE) — athenahealth, Inc. (Nasdaq:ATHN), a leading provider of internet-based business services for physician practices, today announced financial results for the third quarter of 2007.

Total revenue for the three months ended September 30, 2007 was $26.2 million, compared to $19.6 million for the same period last year, an increase of 33%.

“This quarter included several important milestones for athenahealth, including our IPO and our first quarter of net income,” said Jonathan Bush, Chairman and Chief Executive Officer of athenahealth. “Our growth demonstrates the appeal of our network-based service offering.”

For the three months ended September 30, 2007, the Company’s Non-GAAP Adjusted EBITDA of $4.2 million was 16% of revenue, compared to Non-GAAP Adjusted EBITDA for the same period last year of $0.4 million which was 2% of revenue. GAAP net income in the quarter was $0.5 million, compared to a GAAP net loss of $2.0 million in the same period last year. Non-GAAP adjusted net income for the quarter was $2.1 million, compared to a Non-GAAP adjusted net loss of $1.8 million in the same period last year.

“The financial results in the quarter demonstrate the power of our recurring revenue model and the operating leverage of our business,” said Carl Byers, Chief Financial Officer of athenahealth. “Our IPO and our positive earnings have put the Company in a position of financial strength.”

For the nine months ended September 30, 2007, the Company’s Non-GAAP Adjusted EBITDA of $7.4 million was 10% of revenue, compared to Non-GAAP Adjusted EBITDA for the same period last year of $0.7 million which was 1% of revenue. For this period, the GAAP net loss was $5.6 million, compared to a GAAP net loss of $6.5 million in the same period last year. Non-GAAP adjusted net income for the nine months ended September 30, 2007 was $1.1 million, compared to a Non-GAAP adjusted net loss of $5.5 million in same period last year.

Key metrics and milestones in the third quarter of 2007 included the following:

Completion of the Company’s Initial Public Offering on September 25, 2007
$704 million in cash collections posted to client accounts, compared to $518 million in the third quarter of last year
8,978 active physicians served, compared to 7,034 in the third quarter of last year
Initiation of PSS World Medical lead generation partnership
Announcement of the second large client win through the Company’s Eclipsys partnership
As of September 30, 2007, the Company had cash and marketable securities of $89.8 million. On September 25, 2007 the Company completed its Initial Public Offering, in which the Company sold 5,000,000 common shares, which raised $90.0 million in gross proceeds and resulted in net proceeds of $81.3 million, after underwriting discounts, commissions and offering expense. The offering also included 2,229,842 shares from existing stockholders, resulting in a total gross offering size of $130.1 million. The Company did not receive any of the proceeds from the sale of shares by existing stockholders.

A reconciliation of the Company’s financial results determined in accordance with United States generally accepted accounting principles (GAAP) to certain non-GAAP financial measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading “Explanation of Non-GAAP Financial Measures.”

Source: ATHENAHEALTH