Computer Programs & Systems (CPSI) Misses Q4 EPS by 15c

Computer Programs & Systems (NASDAQ: CPSI) reported Q4 EPS of $0.55, $0.15 worse than the analyst estimate of $0.70. Revenue for the quarter came in at $66.8 million versus the consensus estimate of $69.33 million.

“Looking forward, the Company expects to achieve three-year annual organic recurring revenue growth of 5% to 8%. The continued growth of TruBridge among both existing and new customers will continue to be our primary catalyst for recurring revenue growth, supported by an accelerating shift in software and support revenues from license to SaaS. For 2021, we expect recurring revenue growth at the higher end of that 5% to 8% range, with total expected revenues of $270 to $280 million. GAAP net margin is expected to be 6.5% to 7.5%, and Adjusted EBITDA margin is expected to be 16.5% to 17.5% as we anticipate incremental margin pressure from the continued SaaS transition.”

Boyd Douglas, president and chief executive officer of CPSI, stated, “We have turned our attention to a journey of transformation that will drive long-term sustainability and exciting growth for CPSI. Over the past several months, we collaborated with a premier consulting group to review our strategy and growth opportunities. As a result, we are focused on modernizing our business and achieving great success in a post-COVID world both in the current markets we serve and by reaching adjacent markets through innovation. The core growth component of this transformation plan is highlighted by TruBridge cross sales, net new TruBridge sales, the continued retention of our valuable EHR client base and cost optimization. This aggressive, yet obtainable, plan is intended to provide sizeable shareholder returns over the next three to four years culminating in an end-goal of achieving $80 million in Adjusted EBITDA in 2024.”

For earnings history and earnings-related data on Computer Programs & Systems (CPSI) click here.

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