NextGen Healthcare, Inc.

Welcome to the NextGen Healthcare Fiscal 2022 Fourth Quarter Financial Results Conference Call. Hosting the call today from NextGen is David Sides, President and Chief Executive Officer, Jamie Arnold, Executive Vice President and Chief Financial Officer, and Matt Scallo, Vice President of Investor Relations. Today's call is being recorded, and I will now turn the call over to Matt Scallo. Hello.

Thank you, operator. And before we start, I'd like to remind everyone that the comments made on this call may include statements that are forward-looking within the meaning of the federal securities laws, including, and without limitations, statements related to anticipated industry trends, the company's plans, future performance, products, perspectives, and strategies. Risks and uncertainties exist that may cause results to differ materially from those expressed in forward-looking statements including, among others, those risks set forth in the company's public filings with the U.S. Securities and Exchange Commission, including the discussion under the heading Risk Factors in the company's most recent annual report on the Form 10-K and any subsequent quarterly report on Form 10-Q. Any forward-looking statements speak only as of today. The company expressly disclaims any intent or obligation to update these forward-looking statements. Our remarks on today's call include both our earnings results and guidance, which contain certain non-GAAP financial measures. For our earnings results, the GAAP financial measures most directly comparable to each non-GAAP financial measure used or discussed in a reconciliation of the differences between each non-GAAP financial measure and the comparable GAAP financial measure can be found within our latest quarterly earnings release that was filed with the SEC and is posted to the investor relations section of our website. This release also provides qualitative descriptions of how we have calculated non-GAAP financial measures contained in our guidance. At this time, I'd like to turn the call over to our president and CEO, David Sides.

Thank you, Matt, and good afternoon, everyone. Earlier this month, we preannounced our fiscal fourth quarter results and issued fiscal 23 financial guidance. and hosted our first investor event as a new management team. We covered a lot of ground during the investor event, providing a clear overview of our business across three domains, enterprise, office, and insights. We highlighted NextGen's top goals, including our path to accelerating revenue growth and our target 10% rate by fiscal 25, piece to longer-term operating leverage, an expanding adjusted EBITDA figure, and the Rule of 40 performance metric, which combines revenue growth and adjusted EBITDA margin. For those of you who are not able to attend the investor event, I would strongly encourage you to listen to the replay on our website. Now let me turn to my favorite topic, growth. For fiscal year 22, NextGen generated 7% revenue growth, an acceleration over 3% growth in fiscal 21, and 2% in fiscal 2020. This growth was driven broadly across product lines, but consistent with the investor event, I thought I would provide a few comments across each domain. Starting with enterprise, which we define as practices with 10 or more providers, is our largest practice area by revenue. And we're growing faster than the industry average driven by new client wins and further penetration of existing clients with our expanding breadth of solutions. Our success in this market area is built on longstanding and trusted client relationships, which is particularly attractive now with such uncertainty and transition at a number of industry participants. The last point I'd like to make on our enterprise group is we remain on track with our three-year target of incremental $100 million in bookings from our surround solutions through fiscal year 2024. Now turning to our second domain, office, which focuses on the smaller independent ambulatory practice market. Think of a practice with fewer than 10 physicians, which we service with our multi-tenant TAS offerings. This area continues to grow well, reflecting the strength of our SaaS solution and our success providing managed services and revenue cycle management solutions during a period when many of our clients are struggling with labor shortages. We are confident the office domain can continue to grow double digits as we continue to execute and expand into slightly larger practices and adjacent medical specialties over time. And our third domain, what we call Insights, offers significant untapped potential. We spent considerable time outlining the opportunities in this exciting area at our investor event, but I won't repeat it here. However, NextGen is investing in a number of solutions and strategies across connectivity, analytics, and outcomes that will provide a solid foundation for strong growth in this business over the long term. We entered fiscal 2023 with solid momentum. And our fiscal 23 revenue guidance of $628 million to $640 million reflects our competence in continuing to execute on our growth. We are also introducing adjusted EBITDA into our fiscal 23 financial guidance. I think it's important to call this out as we see this as another step the company is making to improve visibility, particularly as investors now track our progress on the Rule 40 metric going forward. My final comment is on the company's disciplined capital deployment strategy. NextGen has an attractive business model that generates positive free cash flow, has a healthy balance sheet, and access to significant capital. We continue to have a board-approved share buyback program in place, and we envision other business development activities, such as M&A, to contribute to our longer-term growth goals. And with that, I'll ask our CFO, Jamie Arnold, to provide the details on fiscal fourth quarter and our outlook. Thank you, David.