Allscripts Healthcare Solutions, Inc. (NASDAQ:MDRX) Q2 2019 Earnings Conference Call - Final Transcript
Aug 08, 2019 • 04:30 pm ET
Greetings, and welcome to Allscripts' Second Quarter 2019 Earnings Conference Call. [Operator Instructions]
I would now like to turn the conference over to your host, Stephen Shulstein. Thank you. You may begin.
Thank you very much. Good afternoon, and welcome to the Allscripts second quarter 2019 earnings conference call. Our speakers today are Paul Black, Allscripts Chief Executive Officer; Rick Poulton, our President; and Dennis Olis, our Chief Financial Officer. We'll be making a number of forward-looking statements during the presentation and the Q&A part of the call. These statements are based on current expectations and involve a number of risks and uncertainties that can cause our actual results to vary materially. We undertake no obligation to revise these forward-looking statements in light of new information or future events. Please refer to our earnings release and SEC filings for more detailed descriptions of the risk factors that may affect our results. Please also reference the GAAP and non-GAAP financial statements as well as the non-GAAP tables in our earnings release and the supplemental workbook that are both available on our Investor Relations website.
And with that, I'm going to hand the call over to Rick Poulton.
Okay. Thanks, Stephen. Good afternoon, everybody. Thanks for joining our call today. As always, we appreciate both your time and your interest in Allscripts.
We reported a strong second quarter with bookings of $276 million, which was up 31% year-over-year. Our pipeline of new deals remain strong as well, and so in conjunction with our strong first half performance, we are raising our outlook for 2019 bookings by $125 million at the midpoint of the new guidance range compared to the midpoint of the old range. Although conversion of backlog to revenue was a little slower than we had hoped for during the quarter, we nevertheless had nice sequential revenue growth from Q1, and we expect this quarterly sequential growth to continue throughout the balance of the year. Dennis will provide more details on financial performance and our outlook later in the call.
Now let me highlight some specific trends and client activity during the quarter. In the hospital and health systems market, we had a very strong quarter from a bookings perspective as we saw strength across both the Sunrise and Paragon customer bases. Specifically, we had two separate Paragon accounts expand their footprint to include the integrated ambulatory module and with that decision, also signed seven-year extensions. We are proud of the progress we've made with the Paragon base as nearly 20 clients have now signed on to long-term agreements since we acquired the business from McKesson in late 2017. While we've experienced some anticipated attrition in the Paragon base from clients who had already made a decision before we bought the business, our investments have allowed us to retain the vast majority of clients, and we look forward to continue serving this client base.
With our Sunrise solution, we acquired two brand-new clients during the quarter, both the result of winning competitive