The Affordable Care Act, or Obamacare, was a big push for healthcare IT companies like athenahealth (NASDAQ:ATHN). As these subsidies and regulatory pressures decline, athenahealth is shifting its focus to develop services that enhance end-customers' productivity.
athenahealth's Financials
Third quarter revenue grew 17% to $276.7 million, missing analyst estimates of $280.9 million. GAAP net income soared to $13.9 million, or $0.35 per diluted share, from GAAP net income of $5.8 million, or $0.15 per diluted share a year ago. Non-GAAP adjusted net income was $24.1 million, or $0.60 per diluted share exceeding analyst estimates of $0.47.
During the quarter, athenahealth added 3,829 physicians and 5,092 providers to athenaCollector, 2,090 physicians and 2,844 providers to athenaClinicals, and 3,416 physicians and 4,478 providers to athenaCommunicator. Its national network today connects over 85,000 providers, 83 million unique patient records, and 140,000 network endpoints. By segment, revenue from Business Services grew 18.7% to $267.12 million and Implementation and Other declined 13.8% to $9.55 million.
