ATHENAHEALTH INC | Understand Stock

No Longer Reporting

The company has not filed an annual or quarterly report since its Q3 FY2018 10-Q, filed Nov 9, 2018. Its latest SEC filing is a 15-12B from Feb 21, 2019.

The sections below describe the company as of the FY2017 annual report.

What Did They Do?

Provides cloud-based medical software and back-office services to medical practices, hospitals, and health systems.

How Did They Make Money?

Clients generally sign one-year service contracts that renew automatically and are billed monthly based on payments collected on their behalf, minimum or flat fees, or per-claim fees.

FY2017 revenue

Who Were Their Customers?

Medical practices and hospitals or health systems buy through a direct sales force; channel partners promote or support sales but typically do not sell directly. Pharmaceutical and other institutional clients buy Epocrates services through a dedicated sales team.

Did Revenues Turn Into Profits?

Yes. It kept 4 cents of every revenue dollar as net income in FY2017 and turned 13 cents into free cash flow.

Operating income, FY2017

6% of revenue

▲ +165% vs FY2016 ($26.6M, 2%)

Net income, FY2017

4% of revenue

▲ +153% vs FY2016 ($21M, 2%)

Free cash flow, FY2017

13% of revenue

▲ +42% vs FY2016 ($113.6M, 10%)

How Were They Changing?

Since the FY2017 annual report

Latest quarter: Q3 FY2018, the three months to Sep 30, 2018

Revenue: ▲ +8%; vs $304.6M in Q3 FY2017
Net income: ▲ +103%; vs $13M in Q3 FY2017

Feb 11, 2019 Merger closes; company requests share delisting Each share was converted into a right to receive $135.00 in cash; the company requested delisting from Nasdaq.
Nov 13, 2018 Company agrees to be acquired in a cash merger The agreement provides for shareholders to receive $135.00 per share in cash.
Nov 9, 2018 Company reaffirms its financial outlook The outlook included revenue of $1,330 million to $1,360 million under the previous revenue standard.
Jun 6, 2018 Chief executive officer steps down as board starts strategic review The board said it would consider a sale, merger or continuing as an independent company.

Grew. Revenue grew 2.1x in 4 years, from $595M in FY2013 to $1.2B in FY2017, about 20% a year.

Hospital-focused offerings The older report described an ambulatory focus and a planned move into acute care; the latest report presents a dedicated athenaOne offering for hospitals and health systems alongside the practice suite.

Who Did They Compete With?

Competes with AdvancedMD, Allscripts Healthcare Solutions, CareCloud, Cerner, eClinicalWorks, Epic Systems, Greenway Health, McKesson, Optum, Practice Fusion, Quality Systems, NextGen Healthcare Information Systems, SCI Solutions, Medscape, UpToDate, Computer Programs and Systems, Medical Information Technology, and WebMD