Veradigm releases long-awaited financial results

Dive Brief:

• Veradigm released updated financial results this week, about a year after the health IT company was delisted from Nasdaq for failing to comply with financial reporting requirements. 
• The firm issued its full year report for 2022, as well as restated filings for 2020, 2021 and the first three quarters of 2022 on Tuesday. Before these updates, Veradigm hadn’t reported its annual or quarterly financials to regulators since November 2022 due to “internal control failures.” 
• The health IT vendor also released unaudited financial ranges for 2023 and 2024, and guidance for this year. Veradigm won’t be current on its financial reporting until sometime in 2026, executives said on a call with investors. 

Dive Insight: 

Veradigm, formerly known as Allscripts, has struggled for years to comply with financial reporting requirements. In March 2023, the company determined several quarters worth of statements couldn’t be relied upon due to failures stemming from its accounting processes and a software tool used by the firm. 

The vendor was eventually removed from trading on Nasdaq after missing a deadline to get its financial reports in order. After the company was delisted, Veradigm considered a sale or merger, but the firm ended a strategic review of its options early this year without a deal. 

The latest efforts to get its financial filings up to date mark an “important milestone” for Veradigm, interim CEO Tom Langan said in a call with investors Wednesday.

The company reported $588 million in revenue in 2022 and an $86.4 million net loss, according to the newly released filing. It took the company a long time to release the 2022 annual report due to extensive audits complicated by the internal control deficiencies, Langan said. 

Veradigm also updated previous financial results that showed it overstated revenue from continuing operations in 2020 and the first nine months of 2022, while understating revenue in 2021. Additionally, it overstated net earnings in 2020 and understated them in 2021.

The company provided some financial details for 2023 and 2024 as well. Veradigm estimates revenue was between $620 million and $625 million in 2023. For 2024, the health IT vendor expects revenue between $583 million and $588 million. 

Revenue is expected to be flat in 2025 compared with last year, Veradigm said. 

The health IT vendor also added to its board this week. On Tuesday, the company said it had appointed two new directors: Jonathan Sacks, a partner at Stonehill Capital Management, and Bruce Felt, CFO at cloud software company Domo. 

Lou Silverman, who joined as a director last month, will become chairman of the board.