Veradigm Inc MDRX shares are trading lower after it provided below-consensus FY23 guidance.
For FY23, the company expects revenue (on a GAAP basis) of $608 million-$622 million (vs. $637.67 million estimate), including a favorable customer litigation settlement, contributing approximately $16 million on a GAAP basis that reflects services provided over prior years.
MDRX sees adjusted EBITDA of $122 million-$135 million for FY23, excluding around $16 million favorable customer litigation settlement and certain other legal settlements.
For FY23, the analyst projects adjusted EPS of $0.79-$0.88 vs. consensus of $0.89.
As of December 31, 2023, net cash is estimated to be over $232 million, comprising cash and cash equivalents to exceed $440 million and debt of $208 million.
Lee Westerfield, Interim Chief Financial Officer said, "The state of Veradigm is fundamentally healthy. Its financials rest on a solid foundation that is evident in its net cash position and its high-quality mix of recurring subscription revenue. We believe our fiscal health enables us to invest in strategic opportunities for growth, product initiatives for margin expansion, and share repurchases for returns to shareholders – all in all, fulfilling our mission to address unmet client needs for healthtech and to elevate ROI and shareholder value."
Last month, MDRX announced leadership changes amid an investigation into financial reporting. Greg Garrison is now Executive Chairman, Shih-Yin Ho is interim CEO and Lee Westerfield is interim CFO. Former CEO Richard J. Poulton and CFO Leah S. Jones resigned.
Price Action: MDRX shares are down 9.95% at $9.69 on the last check Wednesday.
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