CERNER Corp | Understand Stock

No Longer Reporting

The company has not filed an annual or quarterly report since its Q1 FY2022 10-Q, filed May 3, 2022. Its latest SEC filing is a 15-12G from Jun 23, 2022.

The sections below describe the company as of the FY2021 annual report.

What Did They Do?

Sells clinical, financial and operational information systems and services to hospitals, health systems and other healthcare organizations.

How Did They Make Money?

Healthcare clients pay for software, implementation and other services, hosting, support, and hardware. Contracts typically call for an initial payment at signing, with later payments due on set dates for licensed software and as services, hardware, and sublicensed software are delivered; service fees may be billed as hours are worked.

revenue

Segment	Share	How money arrives
Revenue, Licensed Software, Net Mix	13% FY2018: 11%	Mix
Revenue, Technology Resale, Net Mix	3.2% FY2018: 4.6%	Mix
Revenue, Subscriptions, Net Mix	6.6% FY2018: 6.1%	Mix
Revenue, Professional Services, Net Mix	37% FY2018: 34%	Mix
Revenue, Managed Services, Net Recurring	22% FY2018: 22%	Recurring
Revenue, Support and Maintenance Services, Net Recurring	18% FY2018: 21%	Recurring
Revenue, Reimbursement Revenue	0.6% FY2018: 1.8%

Who Were Their Customers?

Hospitals and health systems make up the main market; Cerner also sells to physician groups, governments and other healthcare organizations. It markets directly to physician practices and uses existing client relationships to generate sales contacts.

Customers above 10% of revenue, FY2021

of revenue from one customer

Did Revenues Turn Into Profits?

Yes. It kept 10 cents of every revenue dollar as net income in FY2021 and turned 26 cents into free cash flow.

Operating income, FY2021

12% of revenue

▼ −23% vs FY2020 ($914.6M, 17%)

Net income, FY2021

10% of revenue

▼ −29% vs FY2020 ($780.1M, 14%)

Free cash flow, FY2021

26% of revenue

▲ +29% vs FY2020 ($1.2B, 21%)

How Were They Changing?

Since the FY2021 annual report

Latest quarter: Q1 FY2022, the three months to Mar 31, 2022

Revenue: ▲ +3%; vs $1.4B in Q1 FY2021
Net income: ▲ +20%; vs $172.3M in Q1 FY2021

Revenue, Professional Services, Net share of revenue vs 35.6% in Q1 FY2021

Jun 8, 2022 Oracle completed its acquisition of Cerner Cerner became an indirect, wholly owned subsidiary of Oracle.

Grew. Revenue grew 12% in 4 years, from $5.1B in FY2017 to $5.8B in FY2021, about 3% a year.

Life sciences research services Cerner adds a business serving life sciences companies with data-driven services for discovery, development and deployment of therapies and clinical research. The older business description lists healthcare data analysis and services for employers.

Revenue over time

Revenue, Licensed Software, Net Revenue, Technology Resale, Net Revenue, Subscriptions, Net Revenue, Professional Services, Net Revenue, Managed Services, Net Revenue, Support and Maintenance Services, Net Revenue, Reimbursement Revenue

$10B$5B$0

FY2017 FY2018 FY2019 FY2020 FY2021

Who Did They Compete With?

Competes with Allscripts Healthcare Solutions, Epic Systems, Arcadia Solutions, Health Catalyst, athenahealth, InterSystems, Capsule Technologies, Innovaccer, Computer Programs and Systems, Medical Information Technology, eClinicalWorks, and Optum