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Dec 31, 2019

TruBridge Q4 2019 Earnings Report

Reported record operating cash flows and targeted three-year average organic recurring revenue growth rate.

Key Takeaways

CPSI announced its Q4 2019 results with revenues of $70.6 million, GAAP net income of $11.2 million, and cash provided by operations of $18.1 million. The company is targeting a three-year average organic recurring revenue growth rate of 5% to 8%.

Revenues of $70.6 million

Total bookings of $27.3 million

TruBridge bookings of $9.6 million

Cash provided by operations of $18.1 million

Total Revenue
$70.6M
Previous year: $72.3M
-2.3%
EPS
$0.78
Previous year: $0.78
+0.0%
Total Bookings
$27.3M
TruBridge Bookings
$9.6M
Cash from Operations
$18.1M
Gross Profit
$36.6M
Previous year: $39.7M
-7.8%
Cash and Equivalents
$7.36M
Previous year: $5.73M
+28.3%
Free Cash Flow
$18M
Previous year: $8.92M
+101.8%
Total Assets
$340M
Previous year: $328M
+3.6%

TruBridge

TruBridge

Forward Guidance

The Company expects to achieve three-year average annual organic recurring revenue growth of 5% to 8%. For 2020, the Company anticipates recurring revenue growth at the low end of the long-term guidance and total revenue of $280 to $290 million.

Positive Outlook

  • Continued growth of TruBridge among both existing and new customers
  • Accelerating shift in software and support revenues from license to SaaS
  • Opportunities to expand internationally will drive recurring revenue growth
  • Positive impact on recurring revenue
  • Increased focus on operational efficiencies

Challenges Ahead

  • Negative impact on total revenue
  • Margin compression from the SaaS transition
  • Uncertainty in the pace of the SaaS transition
  • Negative impact on margin expansion, at least initially
  • GAAP net margin is expected to be 7% to 8%