nxgn-10q_20211231.htm
0000708818 false 2022 Q3 --03-31 true false true P3Y P3Y P5Y P3Y8M12D P2Y10M24D P3Y2M12D P3Y1M6D P3Y1M6D P3Y 0000708818 2021-04-01 2021-12-31 xbrli:shares 0000708818 2022-01-21 iso4217:USD 0000708818 2021-12-31 0000708818 2021-03-31 iso4217:USD xbrli:shares 0000708818 nxgn:RecurringRevenueMember 2021-10-01 2021-12-31 0000708818 nxgn:RecurringRevenueMember 2020-10-01 2020-12-31 0000708818 nxgn:RecurringRevenueMember 2021-04-01 2021-12-31 0000708818 nxgn:RecurringRevenueMember 2020-04-01 2020-12-31 0000708818 nxgn:SoftwareHardwareAndOtherNonRecurringMember 2021-10-01 2021-12-31 0000708818 nxgn:SoftwareHardwareAndOtherNonRecurringMember 2020-10-01 2020-12-31 0000708818 nxgn:SoftwareHardwareAndOtherNonRecurringMember 2021-04-01 2021-12-31 0000708818 nxgn:SoftwareHardwareAndOtherNonRecurringMember 2020-04-01 2020-12-31 0000708818 2021-10-01 2021-12-31 0000708818 2020-10-01 2020-12-31 0000708818 2020-04-01 2020-12-31 0000708818 us-gaap:CommonStockMember 2021-03-31 0000708818 us-gaap:AdditionalPaidInCapitalMember 2021-03-31 0000708818 us-gaap:RetainedEarningsMember 2021-03-31 0000708818 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-03-31 0000708818 us-gaap:CommonStockMember 2021-04-01 2021-06-30 0000708818 us-gaap:AdditionalPaidInCapitalMember 2021-04-01 2021-06-30 0000708818 2021-04-01 2021-06-30 0000708818 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-04-01 2021-06-30 0000708818 us-gaap:RetainedEarningsMember 2021-04-01 2021-06-30 0000708818 us-gaap:CommonStockMember 2021-06-30 0000708818 us-gaap:AdditionalPaidInCapitalMember 2021-06-30 0000708818 us-gaap:RetainedEarningsMember 2021-06-30 0000708818 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-06-30 0000708818 2021-06-30 0000708818 us-gaap:CommonStockMember 2021-07-01 2021-09-30 0000708818 us-gaap:AdditionalPaidInCapitalMember 2021-07-01 2021-09-30 0000708818 2021-07-01 2021-09-30 0000708818 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-07-01 2021-09-30 0000708818 us-gaap:RetainedEarningsMember 2021-07-01 2021-09-30 0000708818 us-gaap:CommonStockMember 2021-09-30 0000708818 us-gaap:AdditionalPaidInCapitalMember 2021-09-30 0000708818 us-gaap:RetainedEarningsMember 2021-09-30 0000708818 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-09-30 0000708818 2021-09-30 0000708818 us-gaap:CommonStockMember 2021-10-01 2021-12-31 0000708818 us-gaap:AdditionalPaidInCapitalMember 2021-10-01 2021-12-31 0000708818 us-gaap:TreasuryStockMember 2021-10-01 2021-12-31 0000708818 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-10-01 2021-12-31 0000708818 us-gaap:RetainedEarningsMember 2021-10-01 2021-12-31 0000708818 us-gaap:CommonStockMember 2021-12-31 0000708818 us-gaap:TreasuryStockMember 2021-12-31 0000708818 us-gaap:AdditionalPaidInCapitalMember 2021-12-31 0000708818 us-gaap:RetainedEarningsMember 2021-12-31 0000708818 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-12-31 0000708818 us-gaap:CommonStockMember 2020-03-31 0000708818 us-gaap:AdditionalPaidInCapitalMember 2020-03-31 0000708818 us-gaap:RetainedEarningsMember 2020-03-31 0000708818 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-03-31 0000708818 2020-03-31 0000708818 us-gaap:CommonStockMember 2020-04-01 2020-06-30 0000708818 us-gaap:AdditionalPaidInCapitalMember 2020-04-01 2020-06-30 0000708818 2020-04-01 2020-06-30 0000708818 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-04-01 2020-06-30 0000708818 us-gaap:RetainedEarningsMember 2020-04-01 2020-06-30 0000708818 us-gaap:CommonStockMember 2020-06-30 0000708818 us-gaap:AdditionalPaidInCapitalMember 2020-06-30 0000708818 us-gaap:RetainedEarningsMember 2020-06-30 0000708818 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-06-30 0000708818 2020-06-30 0000708818 us-gaap:CommonStockMember 2020-07-01 2020-09-30 0000708818 us-gaap:AdditionalPaidInCapitalMember 2020-07-01 2020-09-30 0000708818 2020-07-01 2020-09-30 0000708818 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-07-01 2020-09-30 0000708818 us-gaap:RetainedEarningsMember 2020-07-01 2020-09-30 0000708818 us-gaap:CommonStockMember 2020-09-30 0000708818 us-gaap:AdditionalPaidInCapitalMember 2020-09-30 0000708818 us-gaap:RetainedEarningsMember 2020-09-30 0000708818 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-09-30 0000708818 2020-09-30 0000708818 us-gaap:CommonStockMember 2020-10-01 2020-12-31 0000708818 us-gaap:AdditionalPaidInCapitalMember 2020-10-01 2020-12-31 0000708818 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-10-01 2020-12-31 0000708818 us-gaap:RetainedEarningsMember 2020-10-01 2020-12-31 0000708818 us-gaap:CommonStockMember 2020-12-31 0000708818 us-gaap:AdditionalPaidInCapitalMember 2020-12-31 0000708818 us-gaap:RetainedEarningsMember 2020-12-31 0000708818 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-12-31 0000708818 2020-12-31 0000708818 us-gaap:AccountingStandardsUpdate201912Member 2021-12-31 0000708818 nxgn:SubscriptionServicesMember 2021-10-01 2021-12-31 0000708818 nxgn:SubscriptionServicesMember 2020-10-01 2020-12-31 0000708818 nxgn:SubscriptionServicesMember 2021-04-01 2021-12-31 0000708818 nxgn:SubscriptionServicesMember 2020-04-01 2020-12-31 0000708818 nxgn:SupportAndMaintenanceMember 2021-10-01 2021-12-31 0000708818 nxgn:SupportAndMaintenanceMember 2020-10-01 2020-12-31 0000708818 nxgn:SupportAndMaintenanceMember 2021-04-01 2021-12-31 0000708818 nxgn:SupportAndMaintenanceMember 2020-04-01 2020-12-31 0000708818 nxgn:ManagedServicesMember 2021-10-01 2021-12-31 0000708818 nxgn:ManagedServicesMember 2020-10-01 2020-12-31 0000708818 nxgn:ManagedServicesMember 2021-04-01 2021-12-31 0000708818 nxgn:ManagedServicesMember 2020-04-01 2020-12-31 0000708818 nxgn:ElectronicDataInterchangeAndDataServicesMember 2021-10-01 2021-12-31 0000708818 nxgn:ElectronicDataInterchangeAndDataServicesMember 2020-10-01 2020-12-31 0000708818 nxgn:ElectronicDataInterchangeAndDataServicesMember 2021-04-01 2021-12-31 0000708818 nxgn:ElectronicDataInterchangeAndDataServicesMember 2020-04-01 2020-12-31 0000708818 nxgn:SoftwareLicenseAndHardwareMember 2021-10-01 2021-12-31 0000708818 nxgn:SoftwareLicenseAndHardwareMember 2020-10-01 2020-12-31 0000708818 nxgn:SoftwareLicenseAndHardwareMember 2021-04-01 2021-12-31 0000708818 nxgn:SoftwareLicenseAndHardwareMember 2020-04-01 2020-12-31 0000708818 nxgn:OtherNonRecurringServicesMember 2021-10-01 2021-12-31 0000708818 nxgn:OtherNonRecurringServicesMember 2020-10-01 2020-12-31 0000708818 nxgn:OtherNonRecurringServicesMember 2021-04-01 2021-12-31 0000708818 nxgn:OtherNonRecurringServicesMember 2020-04-01 2020-12-31 xbrli:pure 0000708818 srt:MinimumMember 2021-12-31 0000708818 srt:MaximumMember 2021-12-31 0000708818 us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember 2021-04-01 2021-12-31 0000708818 us-gaap:OtherNoncurrentAssetsMember 2021-04-01 2021-12-31 0000708818 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CarryingReportedAmountFairValueDisclosureMember 2021-12-31 0000708818 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2021-12-31 0000708818 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2021-12-31 0000708818 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2021-12-31 0000708818 us-gaap:FairValueMeasurementsRecurringMember us-gaap:CarryingReportedAmountFairValueDisclosureMember 2021-03-31 0000708818 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2021-03-31 0000708818 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2021-03-31 0000708818 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2021-03-31 0000708818 us-gaap:FairValueInputsLevel3Member 2021-12-31 0000708818 nxgn:TopazInformationLLCMember 2021-04-01 2021-12-31 0000708818 nxgn:TopazInformationSystemsLimitedLiabilityCompanyMember 2021-10-01 2021-12-31 0000708818 nxgn:TopazInformationSystemsLimitedLiabilityCompanyMember 2021-04-01 2021-12-31 0000708818 srt:MinimumMember 2021-04-01 2021-12-31 0000708818 srt:MaximumMember 2021-04-01 2021-12-31 0000708818 nxgn:LeaseRightOfUseAssetsAndPropertyPlantAndEquipmentMember 2021-04-01 2021-12-31 nxgn:segment 0000708818 us-gaap:CustomerRelationshipsMember 2021-12-31 0000708818 us-gaap:TradeNamesMember 2021-12-31 0000708818 us-gaap:ComputerSoftwareIntangibleAssetMember 2021-12-31 0000708818 us-gaap:CustomerRelationshipsMember 2021-03-31 0000708818 us-gaap:TradeNamesMember 2021-03-31 0000708818 us-gaap:ComputerSoftwareIntangibleAssetMember 2021-03-31 0000708818 nxgn:CustomerRelationshipsAndTradeNamesMember us-gaap:OperatingExpenseMember 2021-10-01 2021-12-31 0000708818 nxgn:CustomerRelationshipsAndTradeNamesMember us-gaap:OperatingExpenseMember 2020-10-01 2020-12-31 0000708818 nxgn:CustomerRelationshipsAndTradeNamesMember us-gaap:OperatingExpenseMember 2021-04-01 2021-12-31 0000708818 nxgn:CustomerRelationshipsAndTradeNamesMember us-gaap:OperatingExpenseMember 2020-04-01 2020-12-31 0000708818 us-gaap:ComputerSoftwareIntangibleAssetMember us-gaap:CostOfSalesMember 2021-10-01 2021-12-31 0000708818 us-gaap:ComputerSoftwareIntangibleAssetMember us-gaap:CostOfSalesMember 2020-10-01 2020-12-31 0000708818 us-gaap:ComputerSoftwareIntangibleAssetMember us-gaap:CostOfSalesMember 2021-04-01 2021-12-31 0000708818 us-gaap:ComputerSoftwareIntangibleAssetMember us-gaap:CostOfSalesMember 2020-04-01 2020-12-31 0000708818 us-gaap:OperatingExpenseMember 2021-12-31 0000708818 us-gaap:CostOfSalesMember 2021-12-31 0000708818 nxgn:CapitalizedSoftwareCostsMember 2021-12-31 0000708818 us-gaap:RevolvingCreditFacilityMember 2021-03-12 0000708818 us-gaap:RevolvingCreditFacilityMember 2018-03-29 0000708818 us-gaap:LetterOfCreditMember 2021-03-12 0000708818 nxgn:SwingLineLoansMember 2021-03-12 0000708818 us-gaap:RevolvingCreditFacilityMember 2021-12-31 0000708818 us-gaap:RevolvingCreditFacilityMember 2021-04-01 2021-12-31 0000708818 us-gaap:ComputerEquipmentMember 2021-12-31 0000708818 us-gaap:ComputerEquipmentMember 2021-03-31 0000708818 us-gaap:SoftwareDevelopmentMember 2021-12-31 0000708818 us-gaap:SoftwareDevelopmentMember 2021-03-31 0000708818 us-gaap:FurnitureAndFixturesMember 2021-12-31 0000708818 us-gaap:FurnitureAndFixturesMember 2021-03-31 0000708818 us-gaap:LeaseholdImprovementsMember 2021-12-31 0000708818 us-gaap:LeaseholdImprovementsMember 2021-03-31 0000708818 us-gaap:EmployeeStockOptionMember 2021-10-01 2021-12-31 0000708818 us-gaap:EmployeeStockOptionMember 2020-10-01 2020-12-31 0000708818 us-gaap:EmployeeStockOptionMember 2021-04-01 2021-12-31 0000708818 us-gaap:EmployeeStockOptionMember 2020-04-01 2020-12-31 0000708818 nxgn:TwoThousandFiveEmployeeStockOptionAndIncentivePlanMember 2005-10-31 0000708818 us-gaap:EmployeeStockOptionMember nxgn:TwoThousandFiveEmployeeStockOptionAndIncentivePlanMember 2021-04-01 2021-12-31 0000708818 nxgn:TwoThousandFiveEmployeeStockOptionAndIncentivePlanMember 2021-12-31 0000708818 nxgn:TwoThousandFifteenPlanMember 2015-08-31 0000708818 nxgn:TwoThousandFifteenPlanMember 2017-08-31 0000708818 nxgn:TwoThousandFifteenPlanMember 2019-08-31 0000708818 nxgn:TwoThousandFifteenPlanMember 2021-10-31 0000708818 us-gaap:EmployeeStockOptionMember nxgn:TwoThousandFifteenPlanMember 2021-04-01 2021-12-31 0000708818 us-gaap:EmployeeStockOptionMember 2021-12-31 0000708818 us-gaap:RestrictedStockUnitsRSUMember 2021-12-31 0000708818 nxgn:TwoThousandFifteenPlanMember 2021-12-31 0000708818 nxgn:InducementPlanMember 2021-12-31 0000708818 nxgn:InducementPlanMember us-gaap:RestrictedStockUnitsRSUMember 2021-12-31 0000708818 nxgn:InducementPlanMember nxgn:PerformanceStockUnitAwardsMember 2021-12-31 0000708818 us-gaap:CostOfSalesMember 2021-10-01 2021-12-31 0000708818 us-gaap:CostOfSalesMember 2020-10-01 2020-12-31 0000708818 us-gaap:CostOfSalesMember 2021-04-01 2021-12-31 0000708818 us-gaap:CostOfSalesMember 2020-04-01 2020-12-31 0000708818 us-gaap:ResearchAndDevelopmentExpenseMember 2021-10-01 2021-12-31 0000708818 us-gaap:ResearchAndDevelopmentExpenseMember 2020-10-01 2020-12-31 0000708818 us-gaap:ResearchAndDevelopmentExpenseMember 2021-04-01 2021-12-31 0000708818 us-gaap:ResearchAndDevelopmentExpenseMember 2020-04-01 2020-12-31 0000708818 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2021-10-01 2021-12-31 0000708818 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2020-10-01 2020-12-31 0000708818 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2021-04-01 2021-12-31 0000708818 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2020-04-01 2020-12-31 0000708818 2020-04-01 2021-03-31 0000708818 us-gaap:EmployeeStockOptionMember 2021-10-01 2021-12-31 0000708818 us-gaap:EmployeeStockOptionMember 2020-10-01 2020-12-31 0000708818 us-gaap:EmployeeStockOptionMember 2021-04-01 2021-12-31 0000708818 us-gaap:EmployeeStockOptionMember 2020-04-01 2020-12-31 0000708818 us-gaap:RestrictedStockMember 2021-03-31 0000708818 us-gaap:RestrictedStockMember 2021-04-01 2021-12-31 0000708818 us-gaap:RestrictedStockMember 2021-12-31 0000708818 us-gaap:RestrictedStockMember 2021-10-01 2021-12-31 0000708818 us-gaap:RestrictedStockMember 2020-10-01 2020-12-31 0000708818 us-gaap:RestrictedStockMember 2020-04-01 2020-12-31 0000708818 us-gaap:RestrictedStockMember srt:MinimumMember 2021-04-01 2021-12-31 0000708818 us-gaap:RestrictedStockMember srt:MaximumMember 2021-04-01 2021-12-31 0000708818 nxgn:PerformanceStockUnitAwardsMember nxgn:UnitsGrantedOnOctoberTwoThousandEighteenMember 2018-10-23 2018-10-23 0000708818 nxgn:PerformanceStockUnitAwardsMember nxgn:UnitsGrantedOnOctoberTwoThousandEighteenMember 2021-10-01 2021-12-31 0000708818 nxgn:PerformanceStockUnitAwardsMember nxgn:UnitsGrantedOnOctoberTwoThousandEighteenMember 2020-10-01 2020-12-31 0000708818 nxgn:PerformanceStockUnitAwardsMember nxgn:UnitsGrantedOnOctoberTwoThousandEighteenMember 2020-04-01 2020-12-31 0000708818 nxgn:PerformanceStockUnitAwardsMember nxgn:UnitsGrantedOnOctoberTwoThousandEighteenMember 2021-04-01 2021-12-31 0000708818 nxgn:PerformanceStockUnitAwardsMember nxgn:UnitsGrantedOnDecemberTwoThousandNineteenAndJanuaryTwoThousandTwentyMember 2019-12-26 2020-01-27 0000708818 nxgn:PerformanceStockUnitAwardsMember nxgn:UnitsGrantedOnDecemberTwoThousandNineteenAndJanuaryTwoThousandTwentyMember 2021-10-01 2021-12-31 0000708818 nxgn:PerformanceStockUnitAwardsMember nxgn:UnitsGrantedOnDecemberTwoThousandNineteenAndJanuaryTwoThousandTwentyMember 2020-10-01 2020-12-31 0000708818 nxgn:PerformanceStockUnitAwardsMember nxgn:UnitsGrantedOnDecemberTwoThousandNineteenAndJanuaryTwoThousandTwentyMember 2020-04-01 2020-12-31 0000708818 nxgn:PerformanceStockUnitAwardsMember nxgn:UnitsGrantedOnDecemberTwoThousandNineteenAndJanuaryTwoThousandTwentyMember 2021-04-01 2021-12-31 0000708818 nxgn:PerformanceStockUnitsMember nxgn:UnitsGrantedOnSeptemberTwoThousandTwentyOneMember 2021-09-20 2021-09-20 0000708818 nxgn:PerformanceStockUnitsMember nxgn:UnitsGrantedOnOctoberTwoThousandTwentyOneMember 2021-10-26 2021-10-26 0000708818 nxgn:PerformanceStockUnitsMember nxgn:UnitsGrantedOnOctoberTwoThousandTwentyMember 2020-10-26 2020-10-26 0000708818 nxgn:PerformanceStockUnitsMember nxgn:UnitsGrantedOnOctoberTwoThousandTwentyMember 2021-10-01 2021-12-31 0000708818 nxgn:PerformanceStockUnitsMember nxgn:UnitsGrantedOnOctoberTwoThousandTwentyMember 2021-04-01 2021-12-31 0000708818 nxgn:PerformanceStockUnitsMember nxgn:UnitsGrantedOnOctoberTwoThousandTwentyMember 2020-10-01 2020-12-31 0000708818 nxgn:PerformanceStockUnitsMember nxgn:UnitsGrantedOnOctoberTwoThousandTwentyMember 2020-04-01 2020-12-31 0000708818 nxgn:PerformanceStockUnitsMember nxgn:UnitsGrantedOnSeptemberTwoThousandTwentyOneMember 2021-10-01 2021-12-31 0000708818 nxgn:PerformanceStockUnitsMember nxgn:UnitsGrantedOnSeptemberTwoThousandTwentyOneMember 2021-04-01 2021-12-31 0000708818 nxgn:PerformanceStockUnitsMember nxgn:UnitsGrantedOnOctoberTwoThousandTwentyOneMember 2021-10-01 2021-12-31 0000708818 nxgn:PerformanceStockUnitsMember nxgn:UnitsGrantedOnOctoberTwoThousandTwentyOneMember 2021-04-01 2021-12-31 0000708818 nxgn:PerformanceStockUnitsMember 2021-12-31 0000708818 nxgn:PerformanceStockUnitsMember 2021-04-01 2021-12-31 0000708818 nxgn:EmployeeSharePurchasePlanMember 2014-08-11 0000708818 nxgn:EmployeeSharePurchasePlanMember 2021-12-31 0000708818 nxgn:EmployeeSharePurchasePlanMember 2014-08-10 2014-08-11 0000708818 nxgn:EmployeeSharePurchasePlanMember 2021-10-01 2021-12-31 0000708818 nxgn:EmployeeSharePurchasePlanMember 2020-10-01 2020-12-31 0000708818 nxgn:EmployeeSharePurchasePlanMember 2021-04-01 2021-12-31 0000708818 nxgn:EmployeeSharePurchasePlanMember 2020-04-01 2020-12-31 0000708818 2021-10-31 0000708818 nxgn:SevenPointFourPercentagePreviouslyOwnedShareholderMember 2021-10-01 2021-12-31 0000708818 nxgn:FormerDirectorMember 2021-09-29 2021-09-30

 

 

UNITED STATES

SECURITIES and EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended December 31, 2021

or

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

Commission file number: 001-12537

NEXTGEN HEALTHCARE, INC.

(Exact name of registrant as specified in its charter)

 

Delaware

(State or other jurisdiction of incorporation or organization)

95-2888568

(IRS Employer Identification No.)

 

 

3525 Piedmont Rd., NE, Building 6, Suite 700, Atlanta, GA

(Address of principal executive offices)

30305

(Zip Code)

 

(404) 467-1500

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading Symbol

Name of each exchange on which registered

Common Stock, $0.01 Par Value

NXGN

NASDAQ Global Select Market

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes   No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes    No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

Non-accelerated filer

Small reporting company

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes    No

The number of outstanding shares of the Registrant’s common stock as of January 21, 2022 was 66,864,899 shares.

 

 

 


 

 

NEXTGEN HEALTHCARE, INC.

TABLE OF CONTENTS

FORM 10-Q

FOR THE THREE MONTHS ENDED DECEMBER 31, 2021

 

 

 

Item

 

Page

 

 

PART I.  FINANCIAL INFORMATION

 

 

Item 1.

 

Financial Statements.

 

3

 

 

Unaudited Condensed Consolidated Balance Sheets as of December 31, 2021 and March 31, 2021

 

3

 

 

Unaudited Condensed Consolidated Statements of Net Income and Comprehensive Income for the three and nine months ended December 31, 2021 and 2020

 

4

 

 

Unaudited Statements of Condensed Consolidated Stockholders’ Equity for the nine months ended December 31, 2021 and 2020

 

5

 

 

Unaudited Condensed Consolidated Statements of Cash Flows for the nine months ended December 31, 2021 and 2020

 

7

 

 

Notes to Unaudited Condensed Consolidated Financial Statements

 

8

Item 2.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations.

 

25

Item 3.

 

Quantitative and Qualitative Disclosures about Market Risk.

 

37

Item 4.

 

Controls and Procedures.

 

37

 

 

PART II.  OTHER INFORMATION

 

 

Item 1.

 

Legal Proceedings.

 

38

Item 1A.

 

Risk Factors.

 

38

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds.

 

39

Item 3.

 

Defaults Upon Senior Securities.

 

39

Item 4.

 

Mine Safety Disclosure.

 

39

Item 5.

 

Other Information.

 

39

Item 6.

 

Exhibits.

 

40

 

 

Signatures

 

41

2


 

 

PART I.  FINANCIAL INFORMATION

ITEM 1.

FINANCIAL STATEMENTS.

NEXTGEN HEALTHCARE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except per share data)

(Unaudited)

 

 

 

December 31, 2021

 

 

March 31, 2021

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

49,429

 

 

$

73,295

 

Restricted cash and cash equivalents

 

 

4,921

 

 

 

5,280

 

Accounts receivable, net

 

 

70,080

 

 

 

77,541

 

Contract assets

 

 

24,246

 

 

 

19,481

 

Income taxes receivable

 

 

6,966

 

 

 

765

 

Prepaid expenses and other current assets

 

 

30,098

 

 

 

31,282

 

Total current assets

 

 

185,740

 

 

 

207,644

 

Equipment and improvements, net

 

 

10,818

 

 

 

14,539

 

Capitalized software costs, net

 

 

41,719

 

 

 

41,474

 

Operating lease assets

 

 

13,047

 

 

 

18,446

 

Deferred income taxes, net

 

 

19,439

 

 

 

19,474

 

Contract assets, net of current

 

 

1,997

 

 

 

1,976

 

Intangibles, net

 

 

27,402

 

 

 

36,700

 

Goodwill

 

 

267,212

 

 

 

267,212

 

Other assets

 

 

37,960

 

 

 

37,021

 

Total assets

 

$

605,334

 

 

$

644,486

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

15,232

 

 

$

11,378

 

Contract liabilities

 

 

54,879

 

 

 

52,863

 

Accrued compensation and related benefits

 

 

42,019

 

 

 

50,374

 

Income taxes payable

 

 

405

 

 

 

584

 

Operating lease liabilities

 

 

8,437

 

 

 

12,735

 

Other current liabilities

 

 

49,436

 

 

 

52,699

 

Total current liabilities

 

 

170,408

 

 

 

180,633

 

Deferred compensation

 

 

7,671

 

 

 

6,620

 

Operating lease liabilities, net of current

 

 

12,781

 

 

 

18,453

 

Other noncurrent liabilities

 

 

3,331

 

 

 

7,136

 

Total liabilities

 

 

194,191

 

 

 

212,842

 

Commitments and contingencies (Note 15)

 

 

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

 

 

 

Common stock, $0.01 par value; authorized 100,000 shares; issued and outstanding 66,865 and 67,069 shares at December 31, 2021 and March 31, 2021, respectively

 

 

690

 

 

 

671

 

Treasury stock, at cost, 2,170 shares at December 31, 2021

 

 

(35,874

)

 

 

 

Additional paid-in capital

 

 

318,356

 

 

 

304,263

 

Accumulated other comprehensive loss

 

 

(1,933

)

 

 

(1,924

)

Retained earnings

 

 

129,904

 

 

 

128,634

 

Total shareholders' equity

 

 

411,143

 

 

 

431,644

 

Total liabilities and shareholders' equity

 

$

605,334

 

 

$

644,486

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

3


 

NEXTGEN HEALTHCARE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME AND COMPREHENSIVE INCOME

(In thousands, except per share data)

(Unaudited)

 

 

Three Months Ended December 31,

 

 

Nine Months Ended December 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recurring

$

134,496

 

 

$

128,243

 

 

$

402,486

 

 

$

373,456

 

 

Software, hardware, and other non-recurring

 

15,225

 

 

 

13,509

 

 

 

42,605

 

 

 

39,177

 

 

Total revenues

 

149,721

 

 

 

141,752

 

 

 

445,091

 

 

 

412,633

 

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recurring

 

58,033

 

 

 

54,204

 

 

 

172,312

 

 

 

157,539

 

 

Software, hardware, and other non-recurring

 

7,978

 

 

 

6,800

 

 

 

23,085

 

 

 

18,924

 

 

Amortization of capitalized software costs and acquired intangible assets

 

8,193

 

 

 

9,320

 

 

 

24,246

 

 

 

29,180

 

 

Total cost of revenue

 

74,204

 

 

 

70,324

 

 

 

219,643

 

 

 

205,643

 

 

Gross profit

 

75,517

 

 

 

71,428

 

 

 

225,448

 

 

 

206,990

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

47,238

 

 

 

48,972

 

 

 

159,615

 

 

 

131,659

 

 

Research and development costs, net

 

19,390

 

 

 

18,197

 

 

 

57,229

 

 

 

54,111

 

 

Amortization of acquired intangible assets

 

881

 

 

 

1,112

 

 

 

2,643

 

 

 

3,336

 

 

Impairment of assets

 

 

 

 

2,215

 

 

 

1,577

 

 

 

2,215

 

 

Restructuring costs

 

 

 

 

 

 

 

539

 

 

 

2,562

 

 

Total operating expenses

 

67,509

 

 

 

70,496

 

 

 

221,603

 

 

 

193,883

 

 

Income from operations

 

8,008

 

 

 

932

 

 

 

3,845

 

 

 

13,107

 

 

Interest income

 

50

 

 

 

9

 

 

 

79

 

 

 

27

 

 

Interest expense

 

(321

)

 

 

(631

)

 

 

(958

)

 

 

(2,873

)

 

Other expense, net

 

(9

)

 

 

(15

)

 

 

(43

)

 

 

(17

)

 

Income before provision for (benefit of) income taxes

 

7,728

 

 

 

295

 

 

 

2,923

 

 

 

10,244

 

 

Provision for (benefit of) income taxes

 

2,535

 

 

 

(169

)

 

 

1,653

 

 

 

149

 

 

Net income

$

5,193

 

 

$

464

 

 

$

1,270

 

 

$

10,095

 

 

Other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation, net of tax

 

(21

)

 

 

171

 

 

 

(9

)

 

 

260

 

 

Comprehensive income

$

5,172

 

 

$

635

 

 

$

1,261

 

 

$

10,355

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.08

 

 

$

0.01

 

 

$

0.02

 

 

$

0.15

 

 

Diluted

$

0.08

 

 

$

0.01

 

 

$

0.02

 

 

$

0.15

 

 

Weighted-average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

67,958

 

 

 

66,943

 

 

 

67,514

 

 

 

66,644

 

 

Diluted

 

68,167

 

 

 

67,140

 

 

 

67,851

 

 

 

66,649

 

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

4


 

NEXTGEN HEALTHCARE, INC.

STATEMENTS OF CONDENSED CONSOLIDATED STOCKHOLDERS’ EQUITY

(In thousands)

(Unaudited)

 

 

 

 

Nine Months Ended December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

Accumulated Other

 

 

Total

 

 

 

Common Stock

 

 

Treasury

 

 

Paid-in

 

 

Retained

 

 

Comprehensive

 

 

Shareholders'

 

 

 

Shares

 

 

Amount

 

 

Stock

 

 

Capital

 

 

Earnings

 

 

Loss

 

 

Equity

 

Balance, March 31, 2021

 

 

67,069

 

 

$

671

 

 

$

-

 

 

$

304,263

 

 

$

128,634

 

 

$

(1,924

)

 

$

431,644

 

Common stock issued under stock plans, net of shares withheld for taxes

 

 

293

 

 

 

3

 

 

 

 

 

 

(2,301

)

 

 

 

 

 

 

 

 

(2,298

)

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

6,412

 

 

 

 

 

 

 

 

 

6,412

 

Components of other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Translation adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(38

)

 

 

(38

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,848

 

 

 

 

 

 

2,848

 

Balance, June 30, 2021

 

 

67,362

 

 

 

674

 

 

 

 

 

 

308,374

 

 

 

131,482

 

 

 

(1,962

)

 

 

438,568

 

Common stock issued under stock plans, net of shares withheld for taxes

 

 

1,032

 

 

 

10

 

 

 

 

 

 

(1,804

)

 

 

 

 

 

 

 

 

(1,794

)

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

5,223

 

 

 

 

 

 

 

 

 

5,223

 

Components of other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Translation adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

50

 

 

 

50

 

Net income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,771

)

 

 

 

 

 

(6,771

)

Balance, September 30, 2021

 

 

68,394

 

 

 

684

 

 

 

 

 

 

311,793

 

 

 

124,711

 

 

 

(1,912

)

 

 

435,276

 

Common stock issued under stock plans, net of shares withheld for taxes

 

 

641

 

 

 

6

 

 

 

 

 

 

 

(487

)

 

 

 

 

 

 

 

 

(481

)

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

7,050

 

 

 

 

 

 

 

 

 

7,050

 

Repurchase of common stock(1)

 

 

(2,170

)

 

 

 

 

 

(35,874

)

 

 

 

 

 

 

 

 

 

 

 

(35,874

)

Components of other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Translation adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(21

)

 

 

(21

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,193

 

 

 

 

 

 

5,193

 

Balance, December 31, 2021

 

 

66,865

 

 

$

690

 

 

$

(35,874

)

 

$

318,356

 

 

$

129,904

 

 

$

(1,933

)

 

$

411,143

 

 

 

(1)Weighted-average repurchase price (dollars per share) for the three months ended December 31, 2021 was $16.53.

5


 

 

NEXTGEN HEALTHCARE, INC.

STATEMENTS OF CONDENSED CONSOLIDATED STOCKHOLDERS’ EQUITY

(In thousands)

(Unaudited)

 

 

 

 

Nine Months Ended December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

Accumulated Other

 

 

Total

 

 

 

Common Stock

 

 

Paid-in

 

 

Retained

 

 

Comprehensive

 

 

Shareholders'

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Earnings

 

 

Loss

 

 

Equity

 

Balance, March 31, 2020

 

 

66,134

 

 

$

661

 

 

$

282,857

 

 

$

119,119

 

 

$

(2,143

)

 

$

400,494

 

Common stock issued under stock plans, net of shares withheld for taxes

 

 

535

 

 

 

6

 

 

 

(1,414

)

 

 

 

 

 

 

 

 

(1,408

)

Stock-based compensation

 

 

 

 

 

 

 

 

5,393

 

 

 

 

 

 

 

 

 

5,393

 

Components of other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Translation adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(13

)

 

 

(13

)

Net income (loss)

 

 

 

 

 

 

 

 

 

 

 

(824

)

 

 

 

 

 

(824

)

Balance, June 30, 2020

 

 

66,669

 

 

 

667

 

 

 

286,836

 

 

 

118,295

 

 

 

(2,156

)

 

 

403,642

 

Common stock issued under stock plans, net of shares withheld for taxes

 

 

65

 

 

 

 

 

 

(45

)

 

 

 

 

 

 

 

 

(45

)

Stock-based compensation

 

 

 

 

 

 

 

 

5,437

 

 

 

 

 

 

 

 

 

5,437

 

Components of other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Translation adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

102

 

 

 

102

 

Net income

 

 

 

 

 

 

 

 

 

 

 

10,455

 

 

 

 

 

 

10,455

 

Balance, September 30, 2020

 

 

66,734

 

 

 

667

 

 

 

292,228

 

 

 

128,750

 

 

 

(2,054

)

 

 

419,591