Veradigm Releases Long-Awaited Financial Results, Faces Continued Reporting Challenges

Health IT vendor Veradigm, formerly known as Allscripts, has finally released its updated financial results after a prolonged period of non-compliance with reporting requirements. The company, which was delisted from Nasdaq in 2023, faces a long road to regaining its financial reporting currency.

Financial Disclosures and Restatements

Veradigm has issued its full-year report for 2022, along with restated filings for 2020, 2021, and the first three quarters of 2022. The company reported revenue of $588 million for 2022, with a net loss of $86.4 million. These long-awaited disclosures come after Veradigm hadn't reported its annual or quarterly financials to regulators since November 2022 due to what the company described as "internal control failures."

The restatements revealed that Veradigm had overstated revenue from continuing operations in 2020 and the first nine months of 2022, while understating revenue in 2021. Similarly, net earnings were overstated in 2020 and understated in 2021.

Future Outlook and Reporting Timeline

Veradigm also provided unaudited financial ranges for 2023 and 2024, estimating revenue between $620 million and $625 million for 2023, and between $583 million and $588 million for 2024. The company projects flat revenue growth for 2025 compared to the previous year.

Despite these disclosures, Veradigm executives stated that the company won't be current on its financial reporting until sometime in 2026, indicating a prolonged period of catch-up and regulatory compliance efforts.

Corporate Governance Changes

In conjunction with its financial updates, Veradigm announced changes to its board of directors. The company appointed two new directors: Jonathan Sacks, a partner at Stonehill Capital Management, and Bruce Felt, CFO at cloud software company Domo. Additionally, Lou Silverman, who joined as a director last month, will assume the role of chairman of the board.

Interim CEO Tom Langan described the latest financial filings as an "important milestone" for Veradigm, acknowledging the extensive audits and complications arising from internal control deficiencies that led to the delayed reporting.