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ADVISORY BOARD CO

No Longer Reporting

The company has not filed an annual or quarterly report since its Q3 FY2017 10-Q, filed Nov 8, 2017. Its latest SEC filing is a SC 13G/A from Feb 14, 2018.

The sections below describe the company as of the FY2016 annual report.

What Did They Do?

Sold industry research, software and data services, and consulting to health care organizations and education institutions.

How Did They Make Money?

Membership fees were generally billed when agreements were signed and collected in advance, while members received the included research, software, and services throughout the membership term. Separate consulting and management work was sold under fixed-fee or time-and-materials agreements.

FY2016 revenue

Who Were Their Customers?

Health care organizations and education institutions bought memberships and related services through direct sales teams that met with senior executives; member-services teams handled ongoing relationships and renewals.

Did Revenues Turn Into Profits?

Yes. It kept 11 cents of every revenue dollar as net income in FY2016 and turned 8 cents into free cash flow.

Operating income, FY2016
10% of revenue
▲ Now profitable vs FY2015 (−$54.4M, −7%)
Net income, FY2016
11% of revenue
▲ Now profitable vs FY2015 (−$119M, −15%)
Free cash flow, FY2016
8% of revenue
▼ −38% vs FY2015 ($109M, 14%)

How Were They Changing?

Since the FY2016 annual report
Latest quarter: Q3 FY2017, the three months to Sep 30, 2017
Revenue
▼ −9%
vs $200.5M in Q3 FY2016
Net income
▼ −98%
vs $37.5M in Q3 FY2016
  • Nov 17, 2017 Optum completed its acquisition of the company The company became a wholly owned subsidiary of Optum after the merger.
  • Aug 29, 2017 Agreed to sell its health care and education businesses The health care business was to go to Optum, while the education business was to go to a Vista Equity Partners affiliate.

Grew. Revenue grew 2.2x in 4 years, from $370.3M in FY2011 to $803.4M in FY2016, about 21% a year.

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