NextGen Healthcare, Inc. (NASDAQ:NXGN) Q3 2023 Earnings Call Transcript

David Sides: And on the EPS, EBITDA side too, we can land that exactly with spend. So, I feel like that’s the easier part of the equation to work on. We’ve, I think, worked on and are achieving the harder part, which is double-digit revenue growth or certainly achieve that in fiscal year 2024. And then just the 92% recurring nature of our revenue, a record Q3, we can see fiscal year 2024 very clearly now from a revenue perspective. We’ll give guidance in our call in May, but we’re spending money this year to still hit our EPS guidance range, but we’re using that money to improve our cyber profile to improve our productivity to do more robotic process automation and some of these things that will have a good NPV for us and present value for years to take care of these things one-time.

Jailendra Singh: I’m assuming all those initiatives, kind of apply to your TSI Healthcare , that’s what I was actually referring to, right?

David Sides: Right. So, taking TSI, which we’ve worked with for many years really like the company, love the people, taking them from a privately owned organization up to a SOX-compliant, public company standard takes investment. And so, we’re working through those investments while it’s on the IT side, the finance side, how we run, but we’ll get through those. And then as we said it, we’ll be accretive in the first year.

Jailendra Singh: Okay. And then I know we have talked about this in the previous call and you guys made some comments on this call too about the impact of macro environment, but I don’t know if maybe it’s just me. I mean, it looks like you’re a little bit more cautious this time, like you’re watching the trends and macro impact. Have you seen any early indications in the impact of sales cycle in decision process among your clients or even indications to put any spending on hold, clearly, your bookings don’t reflect there, but just curious like why is there any change in tone or still you think that there is no impact as such?

David Sides: Well, I mean, it does impact our clients from their ability to recruit staff, their bottom lines, right. But to the point of record bookings, right, we’re doing well from a sales perspective. So, we’re not seeing an impact there. We feel good about the current quarter of Q4 that we’re in to end the year. So, it’s not affecting us from that perspective. Obviously, like anyone, we have our own cost internally where it affects us. We’ve seen that, but we’re mitigating that and feeling good about that. But the main piece is, I’ll hand it to Jamie.

Jamie Arnold: Yeah, David. Jailendra, it was more about €“ when we talked about it today, it was more in context of the software revenue and the software bookings in this quarter. Last quarter, we were, kind of about the bookings level. And we said, it was kind of a timing. We clearly made it up and through the first three quarters this year, our bookings were up 9% in total. What we did see this quarter that makes €“ that’s sort of €“ that we called out was the lower software level. And so, we’re monitoring the macro trends, all this discussion about potentially a recession this year and other conditions that affect our clients. We are seeing €“ as we see the pipeline develop there seems to be more of a preference for the SaaS product than the license product and that’s what we were commenting on.

Jailendra Singh: Got it. Thanks a lot.