XML 39 R25.htm IDEA: XBRL DOCUMENT v3.22.4
Segment Reporting
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segment Reporting SEGMENT REPORTING
Our chief operating decision makers ("CODM") previously utilized the following three operating segments, "Acute Care EHR", "Post-acute Care EHR" and "TruBridge". However, in the fourth quarter of 2022, the Company made a number of changes to its organizational structure and management system to better align the Company's operating model to its strategic initiatives. As a result of these changes, the Company revised its operating segments. The new operating and reportable segments, based on our three distinct business units with unique market dynamics and opportunities, are RCM, EHR, and "Patient Engagement". These segments represent the components of the Company for which separate financial information is available that is utilized on a regular basis by the CODM in assessing segment performance and in allocating the Company's resources. Management evaluates the performance of the segments based on revenues and adjusted EBITDA. The Company previously evaluated the performance of the segments based on segment gross profit. Management believes adjusted EBITDA is a useful measure to assess the performance and liquidity of the Company as it provides meaningful operating results by excluding the effects of expenses that are not reflective of its operating business performance. Our CODM group is comprised of the Chief Executive Officer, Chief Operating Officer, and Chief Financial Officer. Accounting policies for each of the reportable segments are the same as those used on a consolidated basis. The segment disclosures below for the years ended December 31, 2022, 2021, and 2020 have been recast to conform to the current year presentation.
Adjusted EBITDA consists of GAAP net income as reported and adjusts for (i) deferred revenue purchase accounting adjustments arising from purchase allocation adjustments related to business acquisitions; (ii) depreciation expense; (iii) amortization of software development costs; (iv) amortization of acquisition-related intangible assets; (v) stock-based compensation; (vi) severance and other non-recurring charges; (vii) interest expense and other, net; (viii) gain on contingent consideration; and (ix) the provision for income taxes. There are no intersegment revenues to be eliminated in computing segment revenue.
The following table presents a summary of the revenues and adjusted EBITDA of our three operating segments for the years ended December 31, 2022, 2021, and 2020:
Year Ended December 31,
(In thousands)202220212020
Revenues:
RCM$179,870 $131,242 $107,431 
EHR
Recurring revenue
Acute Care EHR$109,340 $108,440 $105,597 
Post-acute Care EHR$15,384 $16,472 $16,272 
Total recurring EHR revenues124,724 124,912 121,869 
Non-recurring revenue
Acute Care EHR$13,138 $16,939 $29,173 
Post-acute Care EHR$1,961 $1,258 $1,912 
Total non-recurring EHR revenues15,099 18,197 31,085 
Total EHR revenue139,823 143,109 152,954 
Patient engagement6,955 6,278 4,103 
Total revenues$326,648 $280,629 $264,488 
Adjusted EBITDA by Segment:
RCM36,242 30,211 22,780 
EHR19,091 23,061 21,488 
Patient engagement566 (595)(881)
Total adjusted EBITDA$55,899 $52,677 $43,387 

The following table reconciles net income to adjusted EBITDA:

Year Ended December 31,
(In thousands)202220212020
Net income, as reported$15,867 $18,430 $14,246 
Deferred revenue and other acquisition-related adjustments109 747 — 
Depreciation expense2,443 2,156 1,790 
Amortization of software development costs3,484 931 118 
Amortization of acquisition-related intangibles17,403 13,786 11,421 
Stock-based compensation5,173 5,457 7,005 
Severance and other non-recurring charges4,504 4,892 1,999 
Interest expense and other, net5,267 1,632 2,270 
Gain on contingent consideration(565)— — 
Provision for income taxes2,214 4,646 4,538 
Total adjusted EBITDA$55,899 $52,677 $43,387