Veradigm Inc. · OTC:MDRX
Veradigm — Allscripts Healthcare Solutions — J.P. Morgan 2017 Healthcare Conference
31 slides from Veradigm's conference presentation, Jan 10, 2017
Slide 1: Allscripts J.P. Morgan 2017 Healthcare Conference
Allscripts Investor Presentation J.P. Morgan 2017 Healthcare Conference January 10, 2017 Exhibit 99.2
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on the current beliefs and expectations of Allscripts management, only speak as of the date that they are made, and
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes references to non-GAAP gross margin, selling, general and administrative expenses (SG&A), non-GAAP earning per share, Adjusted EBITDA and Adjusted EBITDA, net of non-controlling interest which are also considered non-GAAP financial measures unde
Slide 4: Who We Are: A Global Leader in Healthcare Technology
WHO WE ARE A Global Leader in Healthcare Technology
Slide 5: The Midcap Leader in Healthcare IT
The Midcap Leader in Healthcare IT NASDAQ: MDRX Public since 1999 Global HQ: Chicago, IL 2016E Non-GAAP Revenue: ~$1.6B ~78% recurring Our Team 7,300 team associates globally Veteran executive leadership Clients, team members in 13 countries incl. Australia, Canada, Israel & UK Note: Revenue based o
Slide 6: Comprehensive IT Portfolio: Healthcare Providers and Payers
Comprehensive IT Portfolio: Healthcare Providers and Payers POPULATION HEALTH MANAGEMENT ELECTRONIC HEALTH RECORDS FINANCIAL MANAGEMENT PRECISION MEDICINE/ CONSUMER SOLUTIONS …meeting the complex needs of healthcare globally today and tomorrow
Slide 7: Unrivaled connectivity, network and data potential across healthcare
Unrivaled connectivity, network and data potential across healthcare 10M+ CONNECTED CONSUMERS ~14M POST-ACUTE REFERRALS 45K+ PHYSICIAN PRACTICES ~2,500 HOSPITALS ~180K PHYSICIANS Building OPEN, Connected Communities of Health ™ 45K+ POST-ACUTE NETWORK 2B+ OPEN API DATA SHARES
Slide 8: Demand Fundamentals Strong Amid Federal Uncertainty
Demand Fundamentals Strong Amid Federal Uncertainty Fundamentals transcend politics Specific Federal regulations could be moderated/slowed. But needs remain: increased efficiency; tools to manage risk; enabling technology to manage ever-more-complex reimbursement models; new models required for coor
Slide 9: Momentum in Reputation and Recognition
Momentum in Reputation and Recognition HIT Loyalty Index 2016: Allscripts recognized as a “Most Loyal” vendor by customers – the top tier rating 2016, 2015, 2014 Top Rated Inpatient EHR: Large Hospitals & Academic Medical Centers (+200 beds) 2016, 2015, 2014 Top Ambulatory EHR: Large Group Practices
Slide 10: Strong finish to 2016
Strong finish to 2016 Expected Q4 consolidated bookings >$400M Record fourth quarter bookings Affirm fourth quarter guidance range for all measures Implies 2016 double digit growth – Bookings; Non-GAAP revenue; Adjusted Net EBITDA; Non-GAAP EPS See reconciliation of non-GAAP metrics in the appendix
Slide 11: Position and Strategy: Growth Opportunity
POSITION AND STRATEGY Growth Opportunity
Slide 12: Diversified Growth Strategy
Diversified Growth Strategy Strong foundational core with multiple growth segments for the future U.S. EHR/Core Systems Value-based Care Tools Recurring Services Global Markets Post-Acute ~15% ~15% ~25% ~40% ~5% Replacement Growth Growth Growth Growth Market Trend 2016 % Revenue
Slide 13: Domestic EHR/Core Systems
Domestic EHR/Core Systems A Comprehensive Software Foundation Serving all market segments for integrated clinical and revenue cycle management Well positioned to be a net share-shift winner via industry consolidation/maturation Evidence: The largest Sunrise™ acute facilities expansion in corporate h
Slide 14: Value-Based Care Tools
Value-Based Care Tools Population Health Differentiators: Connects, aggregates community data to create a True Harmonized View of the patient Care coordination sets clinical interventions Into Action Patient-Centric engagement across all settings Financial Decision Support Differentiators: Enables F
Slide 15: Recurring Services Opportunity
Recurring Services Opportunity Drivers Reimbursement complexity, cash flow challenges No scale for efficient technology deployment, staffing Revenue upside from risk-based reimbursement Allscripts Offering Revenue Cycle Services Managed IT/Private Cloud and Staff Outsourcing Financial/clinical decis
Slide 16: Global Markets
Global Markets Key Advantages Outstanding reputation and presence in English speaking countries Leverage single Sunrise™ platform to international growth markets Complete solution: clinical/financial + value-based care U.K., Australia, others lag the U.S. in healthcare digital automation Allscripts
Slide 17: Post-Acute Care: High Growth IT Potential
Post-Acute Care: High Growth IT Potential Large software/technology market: 3-5% spend ($15~$25B), growing double digits NME Source: CMS 2015 National Health Expenditures
Slide 18: The Leading Growth Platform in Post-Acute Care
The Leading Growth Platform in Post-Acute Care Netsmart the largest provider of post-acute medical/behavioral digital solutions Chronic illness are 2-3x1 more costly w/ behavioral comorbidity CONCLUSION: Post-acute care integration critical for value-based care models 1Economic Impact of Integrated
Slide 19: Allscripts: Financial Model
#4 Allscripts: Financial Model
Slide 20: Consistent Execution Since 2013
Consistent Execution Since 2013 Operating Playbook Results Maximize client relation Recurring revenue = 78% Generate consistent results Bookings 17+% 2016E Increase operational efficiency Margin expansion; expense leverage while increasing R&D to 17% of revenue New growth sources Multiple growth pil
Slide 21: 2016 Metrics Demonstrate Healthy Growth
2016 Metrics Demonstrate Healthy Growth Bookings 17+% Growth Y/Y Non-GAAP Revenue ~13-14% Growth Y/Y Non-GAAP EPS ~17-21% Growth Y/Y Driving high recurring revenues, outsized non-GAAP EPS growth Note: Growth based on anticipated Q4 actuals within guidance ranges provided November 3, 2016 and affirme
Slide 22: Financial Model & Capital Deployment
Financial Model & Capital Deployment Excellent long-term revenue visibility revenue backlog of $3.9B Expanding gross margins (up ~300bps Y/Y) Outstanding discretionary expense management Repurchased ~$100M of stock in 2016 through mid-November New authorization for additional $200M through 2019 Depl
Slide 23: Preliminary Growth Outlook for 2017
Preliminary Growth Outlook for 2017 Non-GAAP Revenue: $1.71-$1.74B Consolidated Adjusted EBITDA $345-$365M Netsmart1 Adjusted EBITDA between $90-100M Allscripts Excl. Netsmart Adjusted EBITDA between $255-265M Non-GAAP EPS growth 10%-15% 1Netsmart Adjusted EBITDA contribution includes 100% of the fo
Slide 24: Attractive Long-Term Growth Investment
Attractive Long-Term Growth Investment Large, diverse client base and mix drives sustainable, recurring revenue and cash flow Beyond the EHR – high-value cross sale into expansive base Well positioned for multiple growth opportunities including value-based care and post-acute Strong momentum in glob
Slide 25: Upcoming Events
Upcoming Events Allscripts 4Q and 2016 Earnings Call Thursday, February 16 4:30 pm ET HIMSS 2017 Orlando, February 19 - 23 Allscripts Investor Day New York City, March 21 8:00 am ET SunTrust HIT Summit Park City, March 23
Slide 26: Allscripts J.P. Morgan 2017 Healthcare Conference
Allscripts Investor Presentation J.P. Morgan 2017 Healthcare Conference January 10 2017
Slide 27: Appendix – Non-GAAP Reconciliations
APPENDIX – Non-GAAP Reconciliations
Slide 28: Reconciliations: Recurring/Non-Recurring Revenue
Reconciliations: Recurring/Non-Recurring Revenue
Slide 29: Reconciliations: Non-GAAP Net Income and EPS Q3'16
Reconciliations: Non-GAAP Net Income and EPS Q3’16
Slide 30: Reconciliations: Non-GAAP Net Income and EPS 2015
Reconciliations: Non-GAAP Net Income and EPS 2015
Slide 31: Allscripts J.P. Morgan 2017 Healthcare Conference
Allscripts Investor Presentation J.P. Morgan 2017 Healthcare Conference January 10 2017
Allscripts Healthcare Solutions — J.P. Morgan 2017 Healthcare Conference on 6ix