NextGen Healthcare, Inc. (NASDAQ:NXGN) Q3 2023 Earnings Conference Call January 24, 2023 5:00 PM ET

Company Participants

James Hammerschmidt - Senior Vice President, Finance, and Investor Relations

David Sides - President and Chief Executive Officer

Jamie Arnold - Chief Financial Officer

Conference Call Participants

Stephanie Davis - SVB Securities

Jack Wallace - Guggenheim Securities

Jailendra Singh - Truist Securities

Sean Dodge - RBC Capital Markets

Jessica Tassan - Piper Sandler

George Hill - Deutsche Bank

Operator

Welcome to NextGen Healthcare Fiscal 2023 Third Quarter Results Conference Call. Hosting the call today from NextGen are David Sides, President and Chief Executive Officer; and Jamie Arnold, Chief Financial Officer. Today’s call is being recorded. All lines have been placed on listen-only mode. [Operator Instructions] At this time, I would like to turn the call over to James Hammerschmidt, Senior Vice President of Finance and Investor Relations of NextGen. James, you may begin.

James Hammerschmidt

Thank you, operator. Before we start, please note that we will be making forward-looking statements during the presentation and the Q&A part of the call. These statements are based on management’s current expectations and assumptions and are subject to risks and uncertainties.

Factors that may cause actual results to materially differ from expectations are detailed in our earnings release and SEC filings. This call will also reference certain non-GAAP financial measures. Information about non-GAAP financial measures, including reconciliation to U.S. GAAP can be found in our earnings release, which is available on our Investor Relations website.

At this time, I’d like to turn the call over to our President and CEO, David Sides.

David Sides

Thank you, James. In May of last year, we described our multiyear journey to deliver double-digit revenue growth, operating leverage, and disciplined capital management. And I'm pleased to report strong execution and solid results across all three fronts in the quarter. But before I go into my prepared remarks, I'd like to address an important topic.

On January 6, we became aware of unauthorized access to a limited part of the NextGen network. Upon investigation, we learned the company was the target of a sophisticated cyber-attack. We immediately executed our internal response procedures and contained the threat, secured our network, and have returned to normal operations.

Our forensic review is ongoing and to date we have not uncovered any evidence of access to or ex-filtration of client or patient data. Based on our investigation to date, this incident impacted select administrative non-client files within our network. In total, this affected less than 1% of the devices used by our employees. Out of an abundance of caution as soon as we noticed the threat, we severed connectivity to some systems and notified clients who were impacted in a timely manner.