Athenahealth (ATHN) Reaffirms 2016 Guidance, Issues Solid 2017 Guidance

athenahealth, Inc. (NASDAQ: ATHN) reaffirmed financial guidance for fiscal year 2016 and announced financial guidance for fiscal year 2017.

Our fiscal year 2017 guidance is presented below:

In order to help the investment community better understand our strategic investments and financial goals for our fiscal year 2017 performance expectations, we are providing the following additional insight and points of interest:

• We expect to continue to deliver strong bookings and revenue growth.
• We plan to continue to scale our operations and improve our automation rates across each service offering.
• We plan to continue to invest in selling and marketing to support our bookings goal.
• We plan to continue to invest in research and development to support evolving our technology platform and building and improving our core services and network services.
• We plan to scale general and administrative expenses.
• We plan to continue to improve our profitability margins and operating cash flow.

1Management defines “Annual Bookings” as the sum of the expected annualized recurring revenue from our athenahealth-branded services and the contracted value from our Epocrates-branded services; net of actual charge backs. Management considers this financial metric to be an important indicator of future revenue.

Fiscal year 2016 guidance:

We are reaffirming our fiscal year 2016 guidance communicated on December 10, 2015 at our Eighth Annual Investor Summit. As disclosed in our Q3 2016 earnings materials filed on October 20, 2016, we expect to be near the mid-point of our guidance ranges for each financial measure. Please refer to these Q3 2016 earnings materials for a reconciliation of non-GAAP financial measures to comparable GAAP measures for fiscal year 2016 guidance.

“We are a growth company and we continue to see expansive market opportunities for our network-enabled services. As we look towards 2017, we will be focused on further evolving our platform and further extending our technology assets so we can go deeper with our core services and broader with our network services,” said Karl Stubelis, chief financial officer, athenahealth. “As has been our approach in the past, we will measure our success in 2017 by our corporate balanced scorecard which includes stability, performance, client satisfaction, and financial metrics that we believe best reflect how we are progressing against our long-term vision of building the healthcare internet. We are also a financially disciplined company and we look forward to presenting our financial plan for fiscal year 2017 at our Ninth Annual Investor Summit tomorrow.”

Ninth Annual Investor Summit Webcast Information

A webcast of our Ninth Annual Investor Summit tomorrow, Thursday, December 15, 2016, starts at 8:30 a.m. Eastern Time. We will provide an update on athenahealth’s business and share our outlook for future financial and operational performance. A live webcast of the Investor Summit can be accessed via the Investors section of our website at http://www.athenahealth.com. A replay of this webcast will be available on the website within 24 hours following the event and will remain available through December 14, 2017.

Use of Non-GAAP Financial Measures

In our earnings releases, conference calls, slide presentations, and webcasts, we may use or discuss non-GAAP financial measures, as defined by Regulation G. The GAAP financial measure most directly comparable to each non-GAAP financial measure used or discussed herein, and a reconciliation of the differences between each non-GAAP financial measure and the comparable GAAP financial measure, are included in this press release. Our earnings press releases containing such non-GAAP reconciliations can be found on the Investors section of our website at http://www.athenahealth.com.

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