ATHENAHEALTH, INC. REPORTS THIRD QUARTER 2008 RESULTS

November 6th, 2008 | Computer Software , Technology | 0 Comments »

35% Revenue Growth Over Third Quarter of 2007 Non-GAAP Adjusted Net Income of $4.8 Million or $0.14 Per Diluted Share 59% Adjusted Gross Margin and 17% Adjusted EBITDA Margin

WATERTOWN, MA (November 06, 2008) – athenahealth, Inc. (Nasdaq: ATHN), a leading provider of internet-based business services for physician practices, today announced financial results for the third quarter of 2008. The Company will conduct a conference call on Friday, November 7, 2008, at 8:30 a.m. Eastern Time to discuss its financial results.

Total revenue for the three months ended September 30, 2008, was $35.4 million, compared to $26.2 million for the same period last year, an increase of 35%.

“The third quarter was athenahealth’s strongest quarter to date as a public company; we added a record number of net new physicians and providers to our network, including the providers of MinuteClinic,” said Jonathan Bush, Chairman and Chief Executive Officer of athenahealth. “These implementations reflect the appeal of our service offering and the outstanding work of our operations teams.”

For the three months ended September 30, 2008, the Company’s Non-GAAP Adjusted EBITDA grew to $6.1 million, compared to a Non-GAAP Adjusted EBITDA of $4.2 million for the same period last year. Non-GAAP Adjusted Net Income was $4.8 million, compared to a Non-GAAP Adjusted Net Income of $2.1 million in the same period last year. GAAP net income for the quarter was $3.7 million, compared to a GAAP net income of $0.5 million in the same period last year.

“The company continues to perform very well financially,” said Carl Byers, Chief Financial Officer. “Our growth rate is strong and our margins continue to expand even as we make increased investments, including substantial commission expense in the quarter related to growth.”

Key metrics and milestones in the third quarter of 2008 included the following:

$932 million in collections posted to client accounts in the third quarter of 2008, compared to $704 million in the same quarter of 2007

11,967 active physicians live in the third quarter of 2008, compared to 8,978 in the same quarter of last year

17,297 active medical providers live in third quarter of 2008, compared to 11,510 in the same quarter of last year

In the third quarter of 2008 there were 549 active medical providers using athenaClinicalsSM, of which 400 were physicians
As of September 30, 2008, the Company had cash, cash equivalents, and short-term investments of $78.5 million and short- and long-term debt of $8.5 million.

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.”

Conference Call Information
To participate in athenahealth’s live conference call and webcast, dial 877-874-1589 ( 719-325-4835 for international calls) or visit the investors section of the Company’s web site: http://www.athenahealth.com. A replay of the conference call will be available via the website or by calling 888-203-1112 ( 719-457-0820 for international calls) and using Passcode Number: 3841189.

Source: ATHENAHEALTH