Q4 2023 NextGen Healthcare Inc Earnings Call
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Okay.
Welcome to the Nextgen healthcare fiscal 2023 fourth quarter results conference call.
Hosting the call today from Nextgen are David sides, President and Chief Executive Officer, and Jamie Arnold Chief Financial Officer.
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At this time I would like to turn the call over to James Hammerschmidt.
In your Vice President of Finance and Investor Relations of Nextgen.
John you may begin.
Thank you operator before we start please note that we will be making forward looking statements during the presentation and the Q&A part of the call. These statements are based on management's current expectations and assumptions and are subject to risks and uncertainties factors that may cause actual results to materially differ from.
Patients are detailed in our earnings release and SEC filings. This call will also reference certain non-GAAP financial measures information about non-GAAP financial measures, including reconciliation to U S. GAAP can also be found in our earnings release, which is available on our Investor Relations website. At this time I'd like to turn the call over to our president and COO.
Oh, David sides.
Thank you James.
And thank you to all who joined the call today I will start today's call by covering some of the more notable accomplishments in our fiscal fourth quarter.
Then review our performance for the fiscal year, and finally provide an outlook and why we're excited for fiscal year 2024 before turning the call over to Jamie to take you through the financial commentary.
He will then close the call and open it up for questions.
Starting with fourth quarter accomplishments.
The team continues to execute well, which resulted in solid performance to end the fiscal year.
Bookings grew both year over year and sequentially, which means another new quarterly bookings record.
We continue to see strong demand inside the base for our surround solutions and interoperability capabilities.
Our ability to serve integrated care organizations need a single platform that combines both medical and behavioral health continues to differentiate us in the market leading to more flagship wins.
Revenue came in better than expected for the quarter, resulting in 18% year over year growth for the company.
While subscription showed significant growth as expected with the acquisition of Tsi.
We also were pleased that revenue cycle management saw an increase in collections and.
And our transactional and data services, we're ahead of plan.
Furthermore, perpetual license sales came in above our prior six quarter trend and our expectations.
We had the opportunity to spend time with both current and prospective clients advising him the last two months.
We approach these industry trade shows to validate our areas of focus and investment.
Clients are looking for EHR powered workflows.
Naval care beyond traditional practice settings.
Mobile tools that allow doctors to treat patients wherever they may be.
Increased focus on equitable patient access and brighter wellbeing.
From an interoperability perspective fire and integrations with social determinants of health content and social services.
Continues to be a repeating thing.
These are all key areas that we are investing in.
Which will position us nicely in the market.
We also see opportunities in health care I T to partner with.
With leading tech players to accelerate innovation and unlock new business models.
And five we hosted a joint event with Snowflake in AWS, which had over 200 attendees.
One example of these partnerships with the launch of Mirth cloud connect a cloud based solution that provides interoperability as a managed service.
<unk>, our market, leading mirth connect interoperability engine.
And our partnership with AWS.
The new offering is designed to help solve clinical data exchange challenges faced by large physician networks and health technology vendors.
From an operation standpoint.
We continue to invest in building a scalable infrastructure to facilitate growth.
The team is focused on process improvement identifying areas, where we can leverage technology systems and automation to improve our own operating model. One. Recent example was the decision to consolidate multiple HR payroll and recruiting systems to a single integrated global platform.
Now I'd like to take a moment to provide a brief update on our security related matter that occurred during the quarter.
At the end of March we were alerted to suspicious activity involving our Nextgen office system.
As a reminder, this is our small physician office system and is the 10th the size of our Nextgen enterprise system, which has the bulk of our client base.
We executed our intermodal response procedures engage the support of leading outside cyber experts and notified the law enforcement.
Following our forensic investigation, we determined that an unknown third party gained unauthorized access to a limited set of personal information stored on the Nextgen office system.
Our investigation. This did not include patient health or medical information.
At the end of April we notified impact that NGL providers and their patients as well as state regulatory authorities.
As you know from our discussion on our last earnings call. We also experienced an incident in January .
We continue to work with independent experts to ascertain whether personal information has been impacted and to the extent that detailed analysis reveals that personal information has been impacted.
We'll notify individuals' accordingly.
Security in all its forms is and will continue to be a top priority for nextgen healthcare.
While we have determined that the recent incident was the result of storm claim credentials from sources and incidence unrelated to nexgen.
We're taking action to further strengthen our security with the help of our independent experts.
I'll close my comments on the quarter by discussing our progress on the integration of Tsi.
The first acquisition the company has done in several years.
It's on track and going well.
We're making the investments we said, we'd make which includes ramping up dedicated sales resourcing and demand generation.
Migrating from a co location facility to AWS and the cloud.
And continuing the base upgrade.
The latest curious certified version.
We remain encouraged by the opportunity it represents not just with Nextgen enterprise, but also with Nextgen insights and the data potential.
Now to reflect on the full year.
We've made significant progress on our long term goals, we outlined last may.
Which include building a path to deliver double digit revenue growth <unk>.
Investing to great operating leverage and demonstrating disciplined capital management.
Here are some key accomplishments I'd like to highlight.
Bookings came in line with our plan growing 9% year over year with net new client wins contributing about 25% of total bookings.
While continuing to cross sell our surround solutions.
Revenue for the year grew nine 5%, which was a combination of turning bookings into revenue and maintaining strong client retention.
Which has been further accelerated by the Tsi acquisition.
We were one of the first to achieve <unk> certification and invested in the upgrade center of excellence to give our clients predictably predictability and best practices throughout their upgrade process.
We became a remote first organization, reducing our facility in carbon footprint also improving the employee experience, which was recognized by Forbes and Newsweek America for the second year in a row.
We divested our commercial dental assets, which further focus the company on our core mission and.
We raised capital through a convertible note, which provides us access to dry powder at a REIT at a favorable cost.
It feels like a full year lining us up to achieve our long term financial goals.
Looking forward to next year and the strategic drivers that will lead to sustainable growth.
Fiscal year 'twenty four it will be about commercial execution and continuing to invest in innovation, which will carry momentum into fiscal year 'twenty five and beyond.
I'd like to talk about some of the areas we are investing in to deliver sustained organic growth.
We will continue to scale our investment in the enterprise data cloud and partnership with AWS and Snowflake.
To deliver a broad set of data solutions to our customers.
We will work with our clients to unlock the value of their own data and make it seamless to integrate with third party data and test new monetization models.
This will ultimately become a flywheel for innovation, improving our speed to market.
And the ability to impact client outcomes.
I'm also excited for the opportunity we see in our interoperability.
Both the migration to a fully managed interoperability as a service in the cloud.
As well as the ability to support international clients.
You also have scaled needs.
We will be focused on enhancing our value based care analytics capabilities.
And clinical operations support to help providers achieve superior quality and financial outcomes when participating in Acos and other alternative payment models.
We believe the ability to deliver insights at the point of care through their providers current systems of use like the EHR will be a differentiating capability for any volume providers to take on risk.
And finally, we will continue to focus on removing friction out of the physician experience with investments in mobility and voice enablement.
I'm confident that with our strong position in the market are highly engaged and committed client base.
And these new organic growth initiatives, we can sustain mid to high single digit revenue growth.
Which provides a solid foundation to layer on inorganic effort.
To reach our 10% plus.
Plus revenue growth target.
Touching on the M&A, our corporate development team is busy building and maintaining an active pipeline of opportunities.
We see opportunity to further accelerate growth, especially related to nextgen insights for the right acquisition could gain access to new capabilities and solutions, we can sell back into our well established commercial channel.
And of course, we will continue to be prudent when considering strategic and financial sense during the M&A process.
And with that I'd like to turn the call over to Jamie to provide an update on the financials Jamie.
Thank you David.
Before diving into the fourth quarter results I would like to comment on our fiscal year 2023 accomplishments.
As David mentioned total revenue of $653 2 million increased nine 5% compared to last year.
It was ahead of our full year guidance updated in January .
Subscription services revenue of 184 million grew 13, 2%.
Managed services revenue.
Ru of 129, 1 million grew 15, 9% and transaction and data services revenue of $127.
2 million grew 15, 6%.
Software revenue of $27 9 million declined 11, 6%.
On a GAAP basis.
Fully diluted net loss per share was four cents compared to a net earnings per share of two cents a year ago.
On a non-GAAP basis fully diluted earnings per share of 98 cents compared to 98 cents in the prior year.
These results reflect strong execution on the commercial side.
And deliberate cost management efforts balanced against the investments made to support long term growth plans.
Now turning to the fourth quarter results.
Total bookings came in at $45 million.
This represents a 9% increase from the fourth quarter of last year and slightly above the prior quarter.
There were 4 million dollar deals in the quarter.
As a reminder, bookings represent the annual contract value excluding renewals.
Total revenue for the quarter was $178 6 million, an 18% increase year over year.
Recurring revenue accounted for 161 9 million or 91% of total revenue.
Recurring revenue grew 18% year over year.
Subscription services revenue of 52 million grew 23, 7%.
Managed services revenue of $34 5 million grew 24, 2%.
And transaction and data services revenue of 36, 6% grew 32.9%.
The growth was fueled by a combination of revenue from acquisition of DSI, plus the acceleration of organic solutions.
Non recurring revenue for the quarter was $16 6 million, an 18% increase compared to the same quarter last year.
And is 26% increase from last quarter.
Software revenue at eight and a half million came in higher than the prior six quarter trend and exceeded our internal forecast largely due to a transaction where an existing client expanded licenses to consolidate acquired practices on our solution.
Gross margin of 47, 3% was down approximately 250 basis points compared to the same quarter last year, but modestly better than last quarter.
As discussed on last quarters earnings calls.
We have made significant investment in our upgrade center of excellence and professional services as well as a shift in product mix.
Margin improvement will continue to be a focus and spend related to upgrade center of excellence should start to moderate towards the end of fiscal year 'twenty four.
Okay.
This is one 6% decrease compared to the same quarter last year, which included several one time pull forward investments.
SG&A of $83 3 million increased by 67% compared to the same quarter last year, largely because of a $35 million of accrual for settlement of the Doj matter.
As noted in the earnings press release, we have an agreement in principle with the Doj subject to final approval by them.
All of them all claims against the company.
<unk> to our previously disclosed investigation and qui Tam lawsuit.
We accrued approximately $32 million and anticipated settlement expense and $3 million in legal fees and costs related to the mediation and settlement.
We do not anticipate a corporate integrity agreement as a result of this settlement.
We expect to finalize the agreement food and look forward to putting this behind us.
Our non-GAAP tax rate for the year was 20%.
And we plan, our non-GAAP tax rate for fiscal year, 'twenty four will be 21%.
On a GAAP basis Q4 diluted net loss per share was 38, six which includes the Doj settlement accrual compared to a net income of one cents per share for the same period a year ago.
On a non-GAAP basis fully diluted earnings per share for the fiscal fourth quarter of 2023 was 31 cents compared to 19 cents in the year ago quarter.
Turning to the balance sheet, we ended the fiscal fourth quarter with $238 3 million in cash cash equivalents in marketable securities and we had no balance outstanding on our line of credit.
Free cash flow for the quarter was a negative $600000.
We did not repurchase shares in Q4, which means for the full fiscal year, we repurchased two 7 million shares of common stock for a total of $49.9 million.
And as of March 31, 2023 we have 74.3 million remaining in our share repurchased authorization.
We plan to Opportunistically assess share repurchases as a means of offsetting shareholder dilution from employee stock compensation.
With deploying capital to support M&A as the top priority for capital allocation.
Turning to our fiscal 2024 financial guidance.
As noted in the press release, we expect fiscal 'twenty for total revenue to be in the range of $712 million to 722 million.
Which represents a year over year growth of nine 8% at the midpoint.
Moving to our profitability targets, we expect adjusted EBITDA to be in the range of 125 million to 131 million and a non-GAAP EPS range of $1 four to $1 11.
In closing I believe the company is well positioned to meet our long term objectives based on our strong bookings performance.
Operational execution and disciplined deployment of capital for smart acquisitions like Tsi and.
And now let me turn the call back to David for closing comments.
Thank you Jamie.
Nextgen continues to execute with a focus on driving growth for both us and our clients and we're making the investments required to deliver our long term profitability and scale.
Our overall positive outlook reflects the tailwind we created by solely focusing on ambulatory care, our resilient business model and our focus on driving shareholder value.
Our ability to deliver sustained revenue growth and create a scalable infrastructure comes from our people and culture and our ability to deliver value to the clients we serve.
As always I'm incredibly proud of the commitment and care shown by the next Gen family and their ability to drive results both to each other and to our clients.
This concludes my comments, let's move to questions operator.
Thank you.
At this time, if you would like to ask a question. Please press star one on your telephone keypad.
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And our first question will come from Stephanie Davis with SBB Securities. Your line is open.
Hi, guys. This is Phoenix.
Thank you for taking our question.
I'd first like to hear more about your commercial strategy execution, Okay, alright perfect.
Just curious how you're shifting.
Yes.
Sure.
Right.
Thanks, Anna So on 24, we're shifting some more resource to insights. So as we've created some of the new organic products and insights like we mentioned the enterprise data cloud first cloud connect.
We're looking at and also taking international.
Three.
Products, we've now run through pilot stages. So we have feedback from clients to refine our go to market strategy and then also how do we go to market from a sales perspective too.
Garner interest and we're going to really fully execute that strategy starting this year. So.
We've kind of built new products, new organic products tested them with clients refine them solve what what work for them as far as how do we approach it but messaging works, what's the pricing and now we're taking that to market and we'll roll it out in earnest with additional resource.
Alright, thank you.
All helpful color and then just a quick follow up can you provide any color on the key swing factors or assumptions.
I think what could get speech at the high end.
End of the range.
So we always look at guidance as of today so.
The debt ceiling limit, maybe we will see how that goes so that's one of the things we kind of think that just.
It works through.
We're looking at that at the macro this next year.
For our federal is going to keep interest rates higher or raise rates. So I think we're looking at it as kind of what's your read in the paper what you would expect.
And then what we've seen from the last quarter and last year's performance.
We're 91% recurring revenues so that gives us a nice basis to look at the year every time, we budget, 191% of recurring and some of the nonrecurring or things like services, which we can see with good visibility in our pipeline.
So we feel good about the guidance today.
The macro could always you don't throw things off.
That's how we're thinking about it.
Yeah, I mean, I think what would drive the number.
High end or the low end.
Biggest variable is software a we've talked about it last quarter you heard us talk about it this quarter.
We had a really good quarter.
With software, but it appears to be trending down.
Look a little bit longer term.
So that is a variable.
It could move us either.
Either side.
<unk> strong it would be upside to the forecast and if it weakens off with it.
Not just the current run rate, but even the quarterly trends when you look back over the last six quarters or so.
Would probably move us a little bit lower.
Those are probably the areas that most variability.
And that obviously has an impact on EPS because of the high margin that's all weird theories.
Yes.
Thank you.
Our next question will come from Jack Wallace with Guggenheim Securities.
Your line is open.
Hey, Thanks for taking my questions and congrats on a great fourth quarter.
Pretty positive outlook for the year.
Back at the Analyst day last year, you broke out.
This segments Enterprise office data and insights I was wondering if given.
An update on the relative growth rate.
For those three segments.
How they compared to your expectations.
Pre acquisition and divestitures.
Yes, thanks, Jack so.
How do we how does enterprise office and inside compared to our expectations from Investor day last year as far as growth I would say so far on track. So our guidance. This year is in the range that we talked about at Investor day.
You'll see maybe a little bit more growth from enterprise now that we've we bought tsi, which consolidates into that segment than we might've said at the time, so a little stronger on an enterprise.
But otherwise in line with our thinking from from Investor Day.
Got it and then on the data and insights business.
Yes, it's smaller growing faster it sounds like just Ben.
Some R&D.
Yeah, we're having a little trouble hearing you Jack on the insights.
What we say if you recall, what we said last year is that over the longer term, we expected to grow between 25, and 35%, but that it was going to take a couple of years to reach that level of production.
And so 23% performance was.
It was below that range, but we do expect to see some acceleration in 'twenty four and certainly.
By 'twenty five we would expect it to be at the low end of.
The guidance range that we provided last year.
Got you. That's helpful can you hear me better now.
Yes, yes, okay, sorry about that just a quick quick follow up on that side. So it sounds like there is an acceleration of resources going to those solutions.
Thank you correctly and thats, not even including the potential for M&A.
Is it fair to say that in terms of incremental.
Contribution to growth over the next two to three years.
That segment will be.
Yeah.
As as large as say the office segment, if not larger.
It depends on the year, you look but it is accelerating so there is an intercept their office will still grow in the double digits.
But you know that.
The 20% to 30% for insights catches up in some period of years.
We do see disproportionate growth there. That's also to your point, where we've invested in organic new product solutions and any M&A will help with that piece too where we round out any any parts of the offering that we need to bring additional technical capabilities.
Yes.
Yep.
If you think of last year was year, one and a five year.
We gave kind of a five year outlook, it's closer to the year four and five for the intercept to occur.
Yeah.
Thank you.
Our next question will come from Jeff Garrow with Stephens. Your line is open.
Yeah. Good afternoon. Thanks for taking the questions I wanted to ask about the series of behavioral health deals announced in the quarter. It seems like there is clear momentum in that vertical. So I was hoping you could help us think about your positioning in that space and that the growth opportunity from here as well.
Just in the individual releases it seems like an interesting mix of.
In person and virtual service as well as an ability to grow with those clients over time. Thanks.
Yeah. So behavioral health is one of the specialties, we've really focused on in the last couple of years.
Our virtual capabilities add to that substantially as across health care.
Mental health and behavioral health has been a delivered virtually during the pandemic and that has persisted. So we have a technological advantage. There. We also have done behavioral health for some time and are federally qualified health centers.
And our community health centers, where they integrate medical dental and behavioral so it's a big advantage for us with those clients against all of our competitors.
We've added in functionality last year, you would have seen.
Some organic additions to that solution set that we announced and that's really resonated with the market so the ability to.
Have in person virtual hybrid models to.
To support the workflow.
Behavioral health and to build for them, which they can be very complex, especially at the state level.
How are you.
Bill Medicaid and others. Those are are good for us.
Excellent that's super helpful and I wanted to ask one about the cost and operations side of things some comments around the upgrade center of excellence and monitoring spend towards the end of FY 'twenty four but wanted to follow up and ask them what that means in terms of the.
Upgrade cycle and also ultimately your ability to deliver speed and quality of client upgrades.
Yes, so the upgrade center of excellence is working on getting everyone to the <unk>.
<unk> certified edition of our software that if you'll recall it needs to be done ideally by September 30th So they have a full quarter to report.
Penalty.
So we should be through the bulk of all the upgrades by the end of September which is.
Second quarter of our fiscal 'twenty four.
From there we're going to take all those talented people and either do things like seldin back to clients billable resources.
To the extent, our hosting business expands put them in our hosting business. So we have a wealth of talent to redeploy other places in the in the organization that we're excited about and so that.
We will.
Help us as we think about how do we transition the bulk of work into more value added things for our clients like driving outcomes for them.
Thank you.
Our next question will come from Joe on dressing with Truth Securities. Your line is open.
Hi, guys. Thanks for taking the question. This is eduardo on for Joe <unk>.
Yes.
Recycle on the macro you guys have talked about you know a challenging environment open up more opportunities for the company and hosting evi and patient engagement.
I guess what are your updated thoughts around staff shortages claims processing times and health guaranteed budget spend.
Eduardo is a good question.
Yes.
Ironically, not seeing an improvement in unemployment rates, it's still a very tight market. Despite the fed's tightening. So I think from a macro level people had expected that that would start to modify it and it hasn't.
It works well for us in that we're adding to our RCM.
The breadth of our RCM process to move things upstream.
It also helps with our.
Patient engagement solutions to be able to get patients to self schedule and take that pressure off the frontline staff.
We're seeing continued.
Susie has them there and on the <unk> side, we're constantly working with our with our partners on how can we automate parts of this too.
Make this an easier process for example would be prior authorization is one of the things that we're adding into the solution set so that we don't have to do.
That it's our claims resubmission, because we've gotten the authorization upfront.
Does any one of those three are things that clients are looking for as they work through staffing shortages and really how do we become more productive with staff. In addition to the things we've talked about before like doing a.
Robotic process automation to automate our own processes to be more efficient.
On behalf of our clients to constantly think about how can we drive down the price of doing business.
Especially as they're seeing rising costs throughout throughout their own labor pools.
That's helpful.
You know you guys have done a launch launched <unk> cloud connect.
Great.
Mirth connect which you guys talked about today.
And that sits inside of the insides segment, just sort of how does that.
Go into the 25% to 35% growth outlook as you're talking about getting to the low end in 2025, just curious how that how that you envision that.
Contributing to that that target.
Yes that one I would say is a direct result of your last question. So we have clients in.
We're running a lot of interfaces or using our solution to interface.
To run whole states as a health information exchange, where they might be this is the one place we sell to hospitals interoperability to hospitals. They may have connections to lots of offices labs et cetera, and it's just really difficult to find the skilled workforce to support these applications and so if you look at the <unk> cloud connect one of.
The first things we offers we monitor and run these systems for them. So they can move their people to creating new interfaces, rather than monitoring the existing ones and if we help them create new we can reuse the ones. We've already used are the connections we've already made to make them more efficient at a price point, that's hard to compete with but at the same time.
It's it's really the labor shortages that could be driving it enough its.
It's difficult to compete.
Compete for these resources and they can be more expensive.
Thank you.
Our next question will come from Vishal Patel with Piper Sandler Your line is open.
Hi, This is vishal Andre just pass on thanks for taking our questions.
Firstly I wanted to ask how should we think about fiscal 'twenty five and respecting the wall for the measure.
They planned and we've guided to 27, 6% for fiscal 'twenty four.
And during the Investor Day, I believe you mentioned, 30% by fiscal 'twenty five is that still a reasonable expectation and if so how should we get comfortable with that EBITDA margin expansion in light of the investment as highlighted in our prepared remarks.
Yes.
Yes. This is Jamie Arnold.
While we're not prepared right now to give guidance on 25 with that degree of specificity I think our this year's performance plus.
What we are guiding for 24%.
30% would certainly be within the realm of our expectation.
Okay.
Got it got it that's helpful and then.
If I could ask what was the contribution of CSI in the quarter.
I'm, sorry could you ask that again.
Yeah, what was the contribution of tsi in the quarter.
We're not going to break what I would tell you on tsi is that it was being performed.
In line with the guidance, we provided for this year for the stub period and.
And but we're not going to break it out as a separate line item.
It was outside the range of the guidance that we provided we let you know.
Thank you.
Our next question will come from George Hill with Deutsche Bank. Your line is open.
Yeah, Good evening, guys and thanks for taking the question I guess, David as it seems like fiscal 'twenty four is going to be a year, where you guys get close to hitting the double digit revenue growth, but maybe not with the operating leverage that you guys were looking for I guess can you talk about has anything changed with the growth algorithm longer term and maybe how should we think about the breakdown of like share gains.
New footprints versus like client wallet share gains.
And kind of like how big a will you expect capital deployment to play it and I'm really thinking kind of like repo versus M&A, and where youre seeing the best opportunity now.
Given where the share prices.
Yeah, I think George.
Good to hear you.
Our view of the of the growth is maintained right. So we see 10% growth we got there a year earlier than we said at Investor day.
We see that continuing through 'twenty five.
We have also.
Beyond so not just in the next couple of years, but ongoing we also.
From a new business existing business.
Hit the numbers that we want to see from a sales bookings perspective of 25% of our bookings coming from new clients, even as we're increasing sales and having a record quarter last quarter from a sales side.
And then on the question on M&A versus repurchase we prefer M&A. So.
We prefer to find new solutions that our clients will love and that's our preferred use of cash.
But we have outstanding authorization for repurchases. If we don't have uses for that cash to return to shareholders, but our preference is M&A and we've said before too we're looking primarily at the insights business because we see so much opportunity there too.
Round out our offerings as we go to market.
Okay, and maybe just a quick follow up on the M&A question I guess, maybe could you comment on the valuations that you're seeing in the market right now as you look around given kind of like the market has had a pretty severe retrenchment, especially around what I guess, what we would consider growth names like Vcs arent funding like drams and C rounds for companies that are showing any type of financial distress.
Yeah.
Let me explain shopping for assets.
Yeah, we think it's a great time to be a strategic bid.
The leverage.
Leverage collateralized market is kind of.
Difficult now right, it's a lot harder to make something work at 11% to 15% then it than it was a few years ago at five that's good for us and that our cost of capital is below that.
Are seeing the private market, obviously lag that public markets public markets correct every time Theres, a theres an increase what.
But we're starting to see the private markets correct. We think the latter half of this year from the companies we've talked to their valuations will come attractive and.
We will be active so that it's nice to see the expectations come down I think they are also coming down later this year as people start to run through their last round of funding from the latter half of last year or middle of next year and there is no.
Easy path for many of these companies to get debt financing and so even the SBB.
You know kind of meltdown that weekend, we called some of our targets on the Friday and said look we know you may not be able to make payroll on Monday, we're happy to help you make payroll because we've got hundreds of millions of cash and we can work out the terms of some of these things later, so I think.
I think it's a good time from a macro invest investment perspective for us from an M&A perspective.
We'll be aggressive.
Thank you.
Once again that is star one to ask a question.
And at this time there are no further questions in the queue.
I would like to turn the call back over to management for any additional or closing remarks.
Thank you all for attending the call and your continued interest in Nextgen healthcare had a great quarter and great year, we look forward to more to come in fiscal year 'twenty. Four this concludes our call.
Thank you ladies and gentlemen, this concludes today's call and we appreciate your participation.
May disconnect at any time.
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