NextGen Healthcare, Inc. (NASDAQ:NXGN) Q3 2022 Earnings Conference Call October 25, 2022 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
Sean Dodge - RBC Capital Markets
George Hill - Deutsche Bank
Jessica Tassan - Piper Sandler
Jailendra Singh - Truist
Annie Samuel - JPMorgan
Operator
Good day, everyone and welcome to today’s NextGen Healthcare Second Quarter 2023 Earnings Call. [Operator Instructions] It is now my pleasure to turn today’s program over to James Hammerschmidt, Senior Vice President of Finance and IR. Sir, please begin.
James Hammerschmidt
Thank you, operator. Before we start, please note that we will be making forward-looking statements during the presentation and 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. How time flies. It’s hard to believe I recently passed the 1 year anniversary as CEO at NextGen. It’s also hard to believe that we are more than halfway through fiscal year 2023.
Let me start by saying that we have improved confidence and due to our consistent execution and client results, we are increasing our outlook for the remainder of the year. Our updated guidance implies that we will have made up for the lost revenue and earnings from the commercial dental divestiture we announced last call. In my prepared remarks today, I will touch on three areas supporting our positive outlook: number one, our ability to execute; number two, our clients; and number three, our approach to capital allocation.
Let’s start with execution. Bookings were solid for the quarter with 5 flagship deals over $1 million. Net new client wins accounted for approximately 20% of total bookings as our differentiated value proposition aligns with the needs of integrated care organizations, federally qualified healthcare organizations, behavioral health, ophthalmology and orthopedic practices. These clients are purchasing multiple solutions at once and we continue to have success selling this around into the base. As a reminder, our surround solutions include the patient experience platform, patient pay, virtual visits, mobile, population and financial analytics, managed cloud services and revenue cycle management.