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Dec 31, 2020

TruBridge Q4 2020 Earnings Report

Announced Q4 2020 results, launching a transformation initiative to reach $80 million in Adjusted EBITDA in 2024, and targeting a 5% to 8% three-year average organic recurring revenue growth rate.

Key Takeaways

CPSI announced its Q4 2020 results, with revenues of $66.8 million and a GAAP net income of $3.1 million. The company is launching a transformation initiative aimed at achieving $80 million in Adjusted EBITDA in 2024 and targeting a 5% to 8% three-year average organic recurring revenue growth rate.

Revenues reached $66.8 million.

GAAP net income was $3.1 million, while non-GAAP net income was $7.8 million.

GAAP earnings per diluted share were $0.22, and non-GAAP earnings per diluted share were $0.55.

Adjusted EBITDA amounted to $12.3 million.

Total Revenue
$66.8M
Previous year: $70.6M
-5.4%
EPS
$0.55
Previous year: $0.78
-29.5%
Cash from Operations
$16.2M
Previous year: $18.1M
-10.5%
Gross Profit
$34.6M
Previous year: $36.6M
-5.4%
Cash and Equivalents
$12.7M
Previous year: $7.36M
+72.2%
Free Cash Flow
$16.1M
Previous year: $18M
-10.7%
Total Assets
$326M
Previous year: $340M
-3.9%

TruBridge

TruBridge

Forward Guidance

The Company expects to achieve three-year annual organic recurring revenue growth of 5% to 8%. For 2021, we expect recurring revenue growth at the higher end of that 5% to 8% range, with total expected revenues of $270 to $280 million. GAAP net margin is expected to be 6.5% to 7.5%, and Adjusted EBITDA margin is expected to be 16.5% to 17.5% as we anticipate incremental margin pressure from the continued SaaS transition.

Positive Outlook

  • Achieve three-year annual organic recurring revenue growth of 5% to 8%.
  • Recurring revenue growth at the higher end of that 5% to 8% range.
  • Total expected revenues of $270 to $280 million.
  • GAAP net margin is expected to be 6.5% to 7.5%.
  • Adjusted EBITDA margin is expected to be 16.5% to 17.5%.

Challenges Ahead

  • Incremental margin pressure from the continued SaaS transition.