athenahealth — Investor Day (December 2010)
98 slides from athenahealth's investor day presentation, Dec 16, 2010
Slide 1: Third Annual Investor Summit December 16, 2010
Third Annual Investor Summit December 16, 2010
Slide 2: Safe Harbor Statement
Safe Harbor Statement 2 This presentation contains forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements reflecting athenahealth, Inc. (the "Company") management's expectations for future financ
Slide 3: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures In the Company's earnings releases, conference calls, slide presentations, or webcasts, the Company may use or discuss non-GAAP financial measures as defined by SEC Regulation G. The GAAP financial measure most directly comparable to each non-GAAP financial measure
Slide 4: Opening Remarks
Opening Remarks Jonathan Bush Chairman, President & CEO
Slide 5: Agenda
Agenda Opening Remarks: Jonathan Bush, President, Chairman & CEO People and Process Update: Leslie Brunner, SVP, People & Process Product Strategy Discussion: Derek Hedges, SVP, Product Strategy & Biz. Dev. Innovation Partners Fireside Chat: David Kreiss, VP, Corp. Dev. (Moderator) Growth Strategy D
Slide 6: athenahealth Is a Company With Tremendous Purpose
athenahealth Is a Company With Tremendous Purpose 6 A national information infrastructure that makes health care work as it should Our Vision To be medical groups' most trusted business service Our Mission Being the best in world at getting doctors paid for doing the right thing Our Role Teachers an
Slide 7: All Of Our Services Are "Cloud-Based"
All Of Our Services Are "Cloud-Based" Software ASP Software only-"Saas" (SalesForce.com) Low High Connection to Outcomes Low Cost Upfront cost - Low Connection to outcomes - High Performance visibility - High Upfront cost - Low Connection to outcomes - Moderate Performance visibility - Moderate Mode
Slide 8: Our Services Help to Optimize a Wide Range of Business Processes
And Our Services Help to Optimize a Wide Range of Business Processes... 8 More Money + More Control = Financial Health athenaCollector(r) Practice Management & Billing athenaClinicals(r) Electronic Health Record (EHR) athenaCommunicator(r) Patient Portal & Communications Anodyne Intelligence Platfor
Slide 9: Across A Wide Range Of Ambulatory Health Care Providers
.... Across A Wide Range Of Ambulatory Health Care Providers 9 As of Q3 2010: 1,877 total clients 18,573 total physicians 26,317 total providers 40+ states 60+ specialties Our clients include solo physician practices as well as leading hospitals, health systems, and retail clinics with thousands of
Slide 10: Each Year, We Revisit our Strategic Position by Doing a Five Forces Analysis
Each Year, We Revisit our Strategic Position by Doing a Five Forces Analysis Position by Doing a Five Forces Analysis Position by Doing a Five Forces Analysis 10
Slide 11: These Forces are Placing Unprecedented Pressure on Physicians and Hospitals
11 2010 2011 2012 2013 2014 2015-2022 Patients Payers Government These Forces are Placing Unprecedented Pressure on Physicians Hospitals Meaningful Use stages leading to eventual penalty in 2017 for failure to adopt Shift to ANSI 5010 Shift to ICD-10 14 million new beneficiaries in Medicaid Trend to
Slide 12: This Pressure Creates New Opportunities for Growth Across the Supply Chain
This Pressure Creates New Opportunities for Growth Across the Supply Chain 12 For independent practices: athenahealth will support Patient Centered Medical Home (PCMH), contract management, and clinical control infrastructure e.g., Dr. Peter Masucci, MD, PC Pediatrics For financially-oriented health
Slide 13: We Will Pursue These Growth Opportunities With a Balanced Strategy
We Will Pursue These Growth Opportunities With a Balanced Strategy 13
Slide 14: We Will Pursue These Growth Opportunities With a Balanced Strategy
We Will Pursue These Growth Opportunities With a Balanced Strategy 14 Invest in Research & Development Invest in Sales & Marketing High service quality Key strategic initiatives
Slide 15: Framework of Four Major Themes
And Have Organized our Strategy into a Framework of Four Major Themes Framework of Four Major Themes Framework of Four Major Themes 15
Slide 16: Framework of Four Major Themes
And Have Organized our Strategy into a Framework of Four Major Themes Framework of Four Major Themes Framework of Four Major Themes 16
Slide 17: athenahealth is a Disruptive Innovator with Tremendous Growth Opportunity
athenahealth is a Disruptive Innovator with Tremendous Growth Opportunity
Slide 18: Culture Discussion
Culture Discussion Leslie Brunner SVP, People and Process
Slide 19: Our Culture Thrives On High Growth and High Innovation
19 Our various geographies leverage different talents Watertown is our innovation center Belfast is our operations center India is our replication center Smaller offices (Atlanta area) and remote athenistas are typically travel-intensive Strong connective tissue between these geographies is necessar
Slide 20: We Have Succeeded in Preserving Our Culture as We Grow
20 We hire for teaching, learning, and teamwork We hired 303 new employees through Q3 2010 and received approximately 13,000 resumes for those positions When employees are hired, they tend to stay with us Employee engagement remains at 4.0 out of 5.0 Voluntary turnover remains low as economy improve
Slide 21: Now We Are Focused on Growing the Depth of Our Expertise
21 We have historical success with hiring great people and moving them around We look for intellectually curious people who are comfortable with flexibility We have an internal transfer and promotion rate of 30% We have invested in developing people to succeed in their roles Cohort and role-specific
Slide 22: Our Focus on Expertise and Planning Allows Us to Grow in a Long-term Sustainable Way
22 We are thinking deliberately about our future talent and organizational design Proactive planning in 2010 for 2011 organizational design Implementation of formal senior leadership development program Corporate-wide succession planning implemented Our Focus on Expertise and Planning Allows Us to G
Slide 23: The Result is a Strong Executive Team Equipped for the Next Chapter
23 The Result is a Strong Executive Team Equipped for the Next Chapter
Slide 24: Product Strategy Discussion
Product Strategy Discussion Derek Hedges SVP, Product Strategy & Business Development
Slide 25: Our Mission: To Be the Best at Getting Doctors Paid for Doing the Right Thing
Our Mission: To Be the Best at Getting Doctors Paid for Doing the Right Thing In order to fulfill this mission, we deliver software-enabled services These services fulfill the key requirements for success in the cloud: High connection to outcomes High performance visibility Low to no upfront cost Fu
Slide 26: Our Software-Enabled Services Offer Shared Responsibility for Outcomes
Our Software-Enabled Services Offer Shared Responsibility for Outcomes More Money + More Control = Financial Health athenaCollector(r) Practice Management & Billing athenaClinicals(r) Electronic Health Record (EHR) athenaCommunicator(r) Patient Portal & Communications Anodyne Intelligence Platform W
Slide 27: High Connection to Outcomes: Perform and Automate Manual Work
High Connection to Outcomes: Perform and Automate Manual Work SERVICE - During the last 12 months: 155 tons of paper documents 46.7m claims submitted 95.6m remittance items processed 436% growth in credit card transactions $5.77b in practice payments 19m clinical documents processed 56.9m eligibilit
Slide 28: High Connection to Outcomes: Evolution of the Service (2011)
High Connection to Outcomes: Perform and Automate Manual Work EVOLUTION OF THE SERVICE (2011) athenaCollector Automated bank reconciliation Credit card processing athenaClinicals P4P enrollment and rule building Clinical performance management Unfulfilled order tracking athenaCommunicator Automated
Slide 29: High Performance Visibility: The Services Generate Knowledge
SERVICES KNOWLEDGE SOFTWARE KNOWLEDGE 36% of rules triggered in last month were written in past 180 days 7.3m P4P rules surfaced at point-of- care through our Quality Management Engine (QME) Clinical analytics (to drive campaigns) High Performance Visibility: The Services Generate Knowledge US Paten
Slide 30: High Performance Visibility: Evolution of the Knowledge (2011)
EVOLUTION OF THE KNOWLEDGE (2011) athenaCollector Thousands of new ANSI 5010 rules updated in platform athenaClinicals Physician productivity and delegation, reporting & benchmarking athenaCommunicator Automated patient outreach to drive patient compliance with P4P (Meaningful Use, Alternative Quali
Slide 31: Low Upfront Cost: Knowledge Is Shared Through Free Software
Payers Government SERVICES KNOWLEDGE SOFTWARE SOFTWARE One platform, single-instance Constant performance monitoring Consistent workflow across network Guaranteed availability "The software is the vehicle through which the knowledge, derived through the services, gets shared with our network of clie
Slide 32: Low Upfront Cost: Evolution of the Software (2011)
EVOLUTION OF THE SOFTWARE (2011) athenaCollector & athenaClinicals athenaCollector and athenaClinicals (remote) self- service implementation (SSI) Physician productivity based on network knowledge (e.g., ICD-9 search) athenaCommunicator Streamlined pre-visit workflow (registration, social / family h
Slide 33: Software-Enabled Services Produce Consistent Network Performance
Software-Enabled Services Produce Consistent Network Performance athenaCollector 86% client referencability 9.2% increase in collections 37% reduction in days in accounts receivable athenaClinicals 90% client referencability 98.6% of encounters are closed electronically 3.7% better patient throughpu
Slide 34: Introducing athenaCommunity
Introducing athenaCommunity: A sustainable partnership model for hospitals and affiliated physicians
Slide 35: Understanding the Difference: HIE (the noun) vs. HIE (the verb)
Data Aggregation & Passive Exchange Data aggregated from multiple sources and exchanged with active participants Challenges: Lack of integration with core workflows Lack of data relevance Lack of incentives Care coordination failures are not solved An Order Facilitation Service Active patient exchan
Slide 36: It Is Incredibly Complicated to Coordinate Care Between Providers
It Is Incredibly Complicated to Coordinate Care Between Providers Ordering Provider Receiving Provider Identify appropriate provider - confirm eligibility Assist in scheduling patient appt Secure referral / pre-auth from insurer Transfer data (patient info) to receiving provider Track progress and p
Slide 37: athenaCommunity Addresses Order Facilitation Inefficiencies
athenaCommunity Addresses Order Facilitation Inefficiencies Primary Target Market (2011) We are focused initially on solving this problem for hospitals and their affiliated physicians We have one pilot site running and will be starting more pilots in 2011 Goals Enable tight clinical and administrati
Slide 38: It Eliminates Inefficiency by Bridging the Gap Between Supply Chain Partners
The following capabilities are included in this initiative: It Eliminates Inefficiency by Bridging the Gap Between Supply Chain Partners Provider Search & Selection 1 Scheduling & Appointment Request 2 3 Order Preferences 4 Reporting 5 Insurance Referral / Prior Authorization 38
Slide 39: It Creates a Community by Enabling Selection of In-Network Providers
It Creates a Community by Enabling Selection of In-Network Providers Enhanced search and selection features: Recipient matched to order type Filtered based on patient's zip code Indicates trading partner status Sorted based on whether provider will accept insurance Captures reason for out-of-network
Slide 40: It Provides Unprecedented Visibility into Orders That Drive Activity & Cost
It Provides Unprecedented Visibility into Orders That Drive Activity & Cost Outside of the Exam Room Sample Workflow 40
Slide 41: athenahealth's Product Strategy Continues to Drive Disruptive Innovation
athenahealth's Product Strategy Continues to Drive Disruptive Innovation and Market-Leading Performance The mission of the product strategy team is to guide the use of our software, knowledge, and services in a way that perpetuates the differentiation of our products by making those products structu
Slide 42: Product Strategy Panel
42 Product Strategy Panel Moderator Derek Hedges - SVP, Product Strategy & Biz. Dev. Panelists Evan Grossman VP, athenaClinicals Product Strategy Ryan Wise VP, athenaCollector Product Strategy David Harvey VP, athenaCommunicator Product Strategy
Slide 43: Innovation Partners Panel
43 Innovation Partners Panel Moderator David Kreiss - VP, Corporate Development, athenahealth Panelists Ralph de la Torre, MD President & CEO, Caritas Christi Health Care Tim O'Rourke Vice President, National Contracting, Humana, Inc.
Slide 44: Growth Strategy Discussion
Rob Cosinuke Growth Strategy Discussion SVP, Chief Marketing Officer
Slide 45: Our Growth Organization Has Come a Long Way Since Our IPO in 2007
Our Growth Organization Has Come a Long Way Since Our IPO in 2007 45 Our total sales and marketing headcount has grown by 158% Our quota-carrying sales force has grown by 112% Our GAAP sales and marketing expense has grown by 121% The portion of our sales and marketing expense allocated to in-market
Slide 46: For the First Time, We Are Operating with a World-Class Infrastructure
Sales & Pipeline Management Marketing Automation Data Quality & Market Intelligence Prospect and lead dataWorkflow and taskingLead scoringMarket planningDashboard reportingProposal and contract generation Advanced segmentation and targetingEngagement monitoring and scoringCampaign design and managem
Slide 47: We've Built a Growth Culture That Continuously Tracks & Improves Performance
47 And We've Built a Growth Culture That Continuously Tracks & Improves Performance Our Sales and Marketing "Engine"
Slide 48: This Discipline Has Created a Unique Competency in Lead and Meeting Generation
This Discipline Has Created a Unique Competency in Lead and Meeting Generation Average growth in activity of 270% since Q108 48
Slide 49: Improved the ROI on Our Sales and Marketing Spend
And Has Enabled Us to Improve the ROI on Our Sales and Marketing Spend 40% improvement in cost per lead since Q108 49
Slide 50: With this "Engine" in Place, We Are Confidently Spending More to Drive Growth
50 With this "Engine" in Place, We Are Confidently Spending More to Drive Growth Our 2011 Goals: Increase market awareness of athenahealth and our model Increment on our success in small/group market Continued focus on the virtual/remote sales and implementation model Compete and win consistently in
Slide 51: Execution of Our Growth Strategy Will Require a More Deliberate, Two-Pronged Approach
51 Enterprise: "Consultative" Selling Networked lead generation Selling the execution of the hospital's strategic vision; tightening community relationships Maximize enterprise opportunities by incorporating athenahealth "non-sales experts" into the sales process Small/Group: "Results" Selling Marke
Slide 52: We Are Very Effective at Selling Results to the Small/Group Practice Market
~42% of the addressable physician market 30 day sales cycle - closing the "lookers" Most consistent, predictable source of leads and sales Scalable, virtual sales model Emotional decision, appeal to sense of urgency High preference for integrated services 52 Small Practice (1-3 Docs) Group Practice
Slide 53: Our Success Is Largely Driven by Being Best-in-Class at Knowing Who's Looking
53 Outbound Telemarketing (OTM) phone-based screening Inbound Telemarketing (ITM) phone screening Google paid search and form submission Search Engine Optimization (SEO) and organic search form submission Our Success Is Largely Driven by Being Best-in-Class at Knowing Who's Looking Sample Market Int
Slide 54: Our New Campaigns Build Our Brand
54 Web Advertising Outdoor Billboards Print Advertising In Addition, Our New Campaigns Build Our Brand by Tapping Into a Deep Vein of Physician Frustration Website Redesign - SEO
Slide 55: Expanded Investment in our Media Plan Drives Awareness And New Leads
While Expanded Investment in our Media Plan Drives Awareness And New Leads 55 Drive to Website Drive to Events Print & Online Events = Flywheels = Dinner Seminars Drive to Phone
Slide 56: A Growing Network of Channel Partners Provides Us With Trusted Introductions
National partnership with PSS since 2007 Currently working with 20+ Regional Extension Centers (RECs) Selected as preferred vendor in nine RECs Hospital affiliation channel partnerships Regional relationships State medical societies Consultants, accountants, lawyers, CPAs Managed Service Organizatio
Slide 57: In the Enterprise/Hospital Segment, We Will Compete Aggressively and Win
~21% of the addressable physician market 20+ active enterprise clients on the network Substantial revenue opportunity from existing base 12-24 month sales cycle Market consolidation/acquisition and affiliation strategies are key decision drivers Cloud-based model is key differentiator C-level execut
Slide 58: Adapting Our Enterprise Team to Become More "Trusted Advisors"
58 Enterprise Sales Team Segment Characteristics And We Are Adapting Our Enterprise Team to Become More "Trusted Advisors" Enterprise Solutions Design Group Formed in Q1 2009 Currently comprised of 7 sales reps Most representatives hired from HCIT competition or promoted from within Newly formed in
Slide 59: Our Segmentation Criteria of The Enterprise Market Helps Us Find Prime Targets
Hospital Community Inpatient Close Affiliation Casual Affiliation Ambulatory Our Knowledge and Segmentation Criteria of The Enterprise Market Helps Us Find Prime Targets Vendor vulnerability Old, sun-setting platforms Weak revenue cycle platforms Size and competitiveness Highly competitive market Hi
Slide 60: Our Value Proposition Is Most Compelling within Three Prime Target Segments
e.g., Community Health Systems (CHS) e.g., CVS MinuteClinic e.g., Caritas Christi Health Care System Our Value Proposition Is Most Compelling within Three Prime Target Segments athenahealth Enterprise Value Proposition: Balance-sheet friendly, low upfront cost Tackles all future payment and quality
Slide 61: Investing Explicitly in Enterprise C-Level Awareness
61 Print Events Web Given This Opportunity, We Are Investing Explicitly in Enterprise C-Level Awareness 61 Print Events Web
Slide 62: Working with An Expanded Network of Partners to Gain Access
Anodyne Health Acquired in October 2009 Network of over 10,000 providers Quorum Health Resources (QHR) National market leader in hospital management 150+ managed hospitals 6,000+ affiliated providers; 1,000 owned/employed LifePoint Hospitals A leading hospital company focused on providing quality he
Slide 63: We Will Continue to Invest Aggressively in Our Sales Organization
Looking Ahead, We Will Continue to Invest Aggressively in Our Sales Organization Organization Organization Organization 63 We plan to add 28 new quota-carrying reps in 2011 We are promoting a leading VP to SVP We are expanding sales training and development programs under Bob Hueber We are creating
Slide 64: Investing Aggressively In-Market to Fuel Our Expanded Sales Capacity
And We Are Also Investing Aggressively In-Market to Fuel Our Expanded Sales Capacity 64 Small/Group Practices Enterprise/Large Hospitals Physician Awareness Advertising Finding the "Lookers" (OTM, PPC, SEO) Increase Regional "Flywheels" Robust Event Calendar Expand Channel Partner Management (esp. H
Slide 65: We are Well-Positioned to Maintain Rapid Growth as a Disruptive Innovator
We are Well-Positioned to Maintain Rapid Growth as a Disruptive Innovator Our Team: Highly talented sales team Best-in-class marketing and growth operations competency Our Strategy: Deliberate, two-pronged sales approach and leadership Strong investment in sales and marketing Dedicated senior leader
Slide 66: Growth Strategy Panel
66 Growth Strategy Panel Moderator Rob Cosinuke - SVP, Chief Marketing Officer Panelists Bill Conway VP, Small Group Sales Mark Gowetski VP, Enterprise Sales Robert Hueber SVP, Sales John Lewis RVP, Group Sales
Slide 67: Operations Strategy Discussion
Operations Strategy Discussion Ed Park EVP, Chief Operating Officer
Slide 68: Running a Medical Practice Is a Messy, Complicated Business
Running a Medical Practice Is a Messy, Complicated Business 68
Slide 69: Operations Manages This Work at Scale with Consistency and Integrity
Operations Manages This Work at Scale with Consistency and Integrity 69 Each month, athenahealth's Operations team does the following: Serves up 600 million dynamic page views Sends out 4 million claims Sends out 600,000 prescriptions Receives and processes 700,000 lab results Creates 2.6 million au
Slide 70: We Deliver Industry-Leading Performance to our Clients
And We Deliver Industry-Leading Performance to our Clients 70 As of Q3 2010: $1.5 billion dollars collected per quarter 9.2% average increase in collections 38.8 client days in accounts receivable (DAR) 600,000 clean patient charts per month
Slide 71: Cook Children's Is a Recent Example of Client Success
Cook Children's Is a Recent Example of Client Success One of the country's leading integrated pediatric health care delivery systems 270 physicians 350 billable providers 55 pediatric primary care offices and specialty clinics throughout Texas 71
Slide 72: Our Implementation Time and Cost Were a Fraction of The Alternatives
Our Implementation Time and Cost Were a Fraction of The Alternatives 72 Signed athenahealth contract in July 2009 In February 2010, athenahealth simultaneously brought all medical providers live on athenaCollector(r) and a first wave of clients on athenaClinicals(r) All specialties were live on athe
Slide 73: How Do We Achieve These Results?
How Do We Achieve These Results? 73
Slide 74: We Have a Reliable, Secure, and Scalable Cloud Architecture
We Have a Reliable, Secure, and Scalable Cloud Architecture 74 The world's first cloud-based platform for health care computing Leveraging one application allows us to become a virtual knowledge management system capable of updating key data across all practices instantaneously Reliable: uptime comm
Slide 75: We Have an Obsession with Operational Efficiency
We Have an Obsession with Operational Efficiency 75 (CHART) Example 1: With athenaCollector, we have focused on measures such as the First Pass Resolution (FPR) Rate and Client Days in Accounts Receivable (DAR). Example 2: We are following the same path with athenaClinicals and have been able to cut
Slide 76: Our Aligned Business Model Incents Us to Look For Ways to Help Our Clients
Our Aligned Business Model Incents Us to Look For Ways to Help Our Clients We are "in the trenches" with our clients We work to ensure that our clients don't experience cash flow "hiccups" due to changes in regulations and other requirements e.g., HIPAA, NPI, ANSI 5010, ICD-10, Meaningful Use 76 Cli
Slide 77: Our Aligned Business Model Incents Us to Look For Ways to Help Our Clients
As the reimbursement landscape shifts from fee-for-service to mechanisms based on clinical performance, revenue cycle and clinical cycle are converging, we ensure that our clients get their cut We are also rolling out a series of tools targeted at helping client manage patient payments 77 Our Aligne
Slide 78: Since We Only Win When Our Clients Win, We Build a Relationship of Trust
Since We Only Win When Our Clients Win, We Build a Relationship of Trust 78 (CHART)
Slide 79: In 2011, Operations Will Be Focused on Gross Margin and Growth Opportunities
In 2011, Operations Will Be Focused on Gross Margin and Growth Opportunities Increase gross margin of core-back-end operations relentlessly via EDI/automation, unit efficiencies, and geographic labor arbitrage across all product lines Expand our successful remote implementation program to double- ba
Slide 80: Operations Strategy Panel
80 Operations Strategy Panel Moderator Ed Park - EVP, Chief Operating Officer Panelists Jody Blakeway SVP, Client Services Jeremy Delinsky VP, Chief Technology Officer David Tassoni SVP, Operations
Slide 81: Financial Discussion
Financial Discussion Tim Adams SVP, Chief Financial Officer
Slide 82: athenahealth Is a Company With Tremendous Purpose
athenahealth Is a Company With Tremendous Purpose 82 A national information infrastructure that makes health care work as it should Our Vision To be medical groups' most trusted business service Our Mission Being the best in world at getting doctors paid for doing the right thing Our Role Teachers a
Slide 83: We Are Positioned To Continue Our Success Over the Long Term
And We Are Positioned To Continue Our Success Over the Long Term We have a huge market opportunity. The power of our business model drives a sustainable competitive advantage. The value of a new client generates a strong IRR for our shareholders. We have a high-growth business with operating leverag
Slide 84: Growth Opportunities Abound as Our Addressable Market Remains Vast
Growth Opportunities Abound as Our Addressable Market Remains Vast 84 Enterprise (150+) Group (4-149) Small (1-3) Total U.S. Physicians in Addressable Market of ~650,000* athenahealth Share of Total Addressable Market at ~19,000 Physicians At September 30, 2010 *Data approximate. Source: SK&A, 2010
Slide 85: The Power of Our Business Model Drives a Sustainable Competitive Advantage
The Power of Our Business Model Drives a Sustainable Competitive Advantage Our focus on Services, Knowledge, and Software truly differentiates us We have a disruptive, cloud-based service model Adapts to rapid change in real-time Low upfront cost Rapid implementation cycle We have a business model t
Slide 86: Client Adoption of Multiple Services Is Increasing
Client Adoption of Multiple Services Is Increasing 86 63% of all new athenaCollector(r) deals now include athenaClinicals(r)* 10% of physicians live on athenaCollector use athenaClinicals* 19% of all new athenaCollector deals now include athenaClinicals and athenaCommunicator(r)* 3% of physicians li
Slide 87: The Value of a Client Is Growing and Far Exceeds the Cost to Acquire Them
The Value of a Client Is Growing and Far Exceeds the Cost to Acquire Them 87 (CHART) Base avg. athenaCollector revenue of $20K per physician Discount rate of 11% (WACC) Excludes terminal value Key Assumptions: New physician to the network 12-year period 62.5% Non-GAAP Adj. GM Annual revenue attritio
Slide 88: Our Business Model Allows Us to Invest in Growth While Expanding Profitability
Our Business Model Allows Us to Invest in Growth While Expanding Profitability 88 50% growth in GAAP M&S Expense 52% growth in Non-GAAP Adj. EBITDA 32% growth in Total Revenue
Slide 89: Our Strong Balance Sheet Positions Us For the Future
Our Strong Balance Sheet Positions Us For the Future While largely focused on organic growth, we have completed two acquisitions: Anodyne Health Partners, Inc. Acquisition completed October 2009 $30.0 million total consideration* Crest Line Technologies, LLC (d.b.a. MedicalMessaging.net) Acquisition
Slide 90: Looking Ahead, We Are Updating Our 2011 Expectations
Looking Ahead, We Are Updating Our 2011 Expectations 90 Note: These estimates reflect the Company's current operating plan as of December 16, 2010, and are subject to change as future events and opportunities arise. Fiscal Year 2011 Expectations Fiscal Year 2011 Expectations Annual Revenue $300 - $3
Slide 91: Other Points of Interest
Other Points of Interest 91 Our expected FY 2011 GAAP effective tax rate is 46-47% Our estimated FY 2011 FAS123R expense is approximately $20 million Our business is impacted by moderate seasonality Our collections are directly correlated to physician office activity, which may be reduced subsequent
Slide 92: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures In the Company's earnings releases, conference calls, slide presentations, or webcasts, the Company may use or discuss non-GAAP financial measures as defined by SEC Regulation G. The GAAP financial measure most directly comparable to each non-GAAP financial measure
Slide 93: Non-GAAP Reconciliation for Fiscal Year 2011 Expectations: Adjusted Gross Margin
Non-GAAP Reconciliation for Fiscal Year 2011 Expectations 93 Non-GAAP Adjusted Gross Margin
Slide 94: Non-GAAP Reconciliation for Fiscal Year 2011 Expectations: Adjusted EBITDA
Non-GAAP Reconciliation for Fiscal Year 2011 Expectations 94 Non-GAAP Adjusted EBITDA
Slide 95: Non-GAAP Reconciliation: Adjusted Net Income & Adjusted EPS
Non-GAAP Reconciliation for Fiscal Year 2011 Expectations 95 Non-GAAP Adjusted Net Income & Non-GAAP Adjusted EPS
Slide 96: Non-GAAP Reconciliation: Adjusted Net Income
Non-GAAP Reconciliation for Fiscal Year 2011 Expectations 96 Non-GAAP Adjusted Net Income
Slide 97: athenahealth is Positioned to Continue Our Success Over the Long Term
athenahealth is Positioned to Continue Our Success Over the Long Term We have a huge market opportunity. The power of our business model drives a sustainable competitive advantage. The value of a new client generates a strong IRR for our shareholders. We have a high growth business with operating le
Slide 98: Third Annual Investor Summit December 16, 2010
Third Annual Investor Summit December 16, 2010