NextGen Healthcare Inc (NASDAQ:NXGN), the healthcare technology company, credited a significant increase in bookings and deal-size growth for its profit increase in its fiscal 2019 fourth quarter.
The Irvine, California-based provider of ambulatory-focused technology solutions swung to a profit over the quarter, reporting a net income of $3.9 million during fiscal 4Q 2019, a significant reversal from the $11 million loss it posted during the comparative period a year prior.
NextGen’s shares rose 10% in afterhours trading to hit $21.51.
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On a per share basis, the company posted a profit of $0.06 against an average analyst estimate of $0.17, compared to a loss of $0.17 during the year-ago period.
NextGen reported total revenue of $134.8 million during the period, compared to $135.8 a year prior, on a GAAP basis. Analysts had an average revenue target of around $134 million for the quarter.
President and CEO Rusty Frantz highlighted significant bookings and deal-size growth as the major driver behind the increase in income during the quarter.
“While we encountered some market headwinds in the second half that impacted top line revenue performance, we’re pleased to deliver earnings per share at the high end of our full-year 2019 range,” he said in a statement. “We remain confident in our growth strategy, the market opportunity, and our plan to deliver 20% operating margin in the next three years.”
Total revenue for the year was $529.2 million compared to $531 million in 2018, while net income was $24.5 million or $0.38, compared with net income of $2.4 million or $0.04 in fiscal year 2018.
The company is anticipating revenues of between $543 million and $559 million for fiscal 2020, with an EPS between $0.86 and $0.94.
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