Veradigm Inc. (MDRX)·Q2 2023 Earnings Summary

Executive Summary

• Veradigm did not report Q2 2023 financials due to extended audit and internal control remediation tied to ASC 606 revenue recognition; quarterly results remain unavailable, creating a transparency gap .
• FY 2023 guidance was affirmed at Revenue $615–$635M, non-GAAP EPS $0.80–$0.90, and newly introduced Adjusted EBITDA $160–$170M; the estimated cumulative revenue restatement impact for 2020–2022 was reduced from ~$40M to ~$20M, modestly easing fundamental uncertainty .
• Nasdaq issued a delisting notice after the company missed the exception period; Veradigm intends to appeal and request an extended stay while expecting to file the delayed 10-K and 10-Qs in Q4 2023, a key near-term catalyst for the stock’s narrative .
• With no Q2 call transcript or quarterly metrics, investor focus is on audit completion, restatement scope, listing status, and the ability to hit affirmed FY guidance—these events and timelines are the primary trading catalysts in the near term .

What Went Well and What Went Wrong

What Went Well

• Management reduced the estimated cumulative revenue restatement impact for 2020–2022 from ~$40M to ~$20M, narrowing uncertainty: “revising the estimated cumulative impact down to approximately $20 million” .
• FY 2023 guidance was affirmed: Revenue $615–$635M and non-GAAP EPS $0.80–$0.90; new Adjusted EBITDA guidance of $160–$170M adds clarity on profitability targets .
• A clear remediation plan is underway, including building a “new supplemental revenue system tool” to address revenue recognition issues—demonstrating concrete steps toward control repair .

What Went Wrong

• Q2 2023 quarterly financials and the 10-Q were not filed; management indicated the “work effort…has taken longer than previously expected,” delaying audited results and Q2 reporting .
• Nasdaq issued a delisting notice after the exception period expired, increasing listing risk and investor uncertainty while the company appeals .
• The company attributed delays to “internal control failures…[and] a software tool implemented…to comply with ASC 606,” signaling deep process issues and material weaknesses in revenue recognition controls .

Financial Results

Note: Veradigm did not report Q2 2023 consolidated financials due to the extended audit; no quarterly metrics were furnished. The company provided FY 2023 guidance only.

Quarterly Results vs Prior Periods and Estimates

Wall Street consensus estimates via S&P Global were unavailable due to missing mapping for MDRX in the S&P Global CIQ system. Values retrieved from S&P Global were not available.

FY 2023 Guidance (as of Q2 period)

Segment Breakdown

KPIs

Guidance Changes

Footnote on non-GAAP definitions: Non-GAAP EPS adds back acquisition-related amortization, stock-based compensation, transaction and other costs (including audit/restatement costs) and a GAAP-to-non-GAAP tax rate alignment; Adjusted EBITDA adjusts GAAP operating income for D&A, stock-based compensation, and transaction/restatement-related costs .

Earnings Call Themes & Trends

Note: No Q2 2023 earnings call transcript was available.

Management Commentary

• “The work effort to conclude on its previously disclosed accounting and internal control errors has taken longer than previously expected, and more time is needed to complete its audit procedures.” (Press release, Sep 18, 2023) .
• “The Company is now revising the estimated cumulative impact down to approximately $20 million for these same reporting periods.” (Press release, Sep 18, 2023) .
• “Revenue is expected between $615 million and $635 million… Non-GAAP earnings per share is expected between $0.80 and $0.90… Non-GAAP Adjusted EBITDA is expected between $160 million and $170 million.” (Press release, Sep 18, 2023) .
• “Internal control failures…primarily stem from accounting processes and a software tool implemented…to comply with the requirements of FASB’s rule ASC 606.” (Press release, Aug 18, 2023) .
• “The Company intends to appeal…the Company believes that it satisfies the standards for the granting of such an extended stay.” (Press release, Sep 22, 2023) .

Q&A Highlights

No Q2 2023 earnings call transcript or Q&A was available due to delayed filings and the absence of a reported quarterly earnings event .

Estimates Context

• S&P Global (Capital IQ) Wall Street consensus for Q2 2023 and prior two quarters was unavailable due to missing CIQ mapping for MDRX; therefore, we cannot provide consensus benchmarks for revenue, EPS, or EBITDA. Values retrieved from S&P Global were not available.
• Given the lack of reported quarterly data and unavailable consensus, estimate revisions will likely hinge on audit completion, restatement finalization, and confirmation of FY 2023 guidance trajectory .

Key Takeaways for Investors

• The absence of Q2 2023 reported financials and a Q2 call is a material transparency gap; near-term stock reaction will be driven by audit filing timing, restatement magnitude, and Nasdaq listing developments .
• Guidance stability is notable: Revenue $615–$635M and non-GAAP EPS $0.80–$0.90 affirmed; Adjusted EBITDA introduced at $160–$170M—watch for whether filings in Q4 confirm trajectory and margin assumptions .
• The restatement impact narrowing to ~$20M across 2020–2022 is incrementally positive; final audited numbers will be critical to de-risk the story .
• Listing risk has increased with the delisting notice; the appeal and potential extended stay are immediate catalysts—monitor Panel outcomes and any interim Nasdaq communications .
• Process remediation is tangible (new revenue system tool, manual transaction mapping), but delays suggest execution risk remains until filings are complete .
• Without SPGI consensus and quarterly prints, sell-side models lack anchors; the first audited filings could trigger meaningful estimate resets and stock volatility.
• Trading implication: positioning should consider binary catalysts—successful Q4 filings and listing stay could lift uncertainty premium; any further delays or adverse Panel decisions would likely pressure the equity .

Notes and Sources

• Veradigm 8-K and press releases: Sep 18 audit and guidance update ; Sep 22 delisting notice and intent to appeal ; Aug 18 Nasdaq notice ; Jun 14 Nasdaq exception approval ; Mar 22 revenue guidance revision and restatement disclosures .
• SPGI consensus data: unavailable due to mapping error for MDRX in SPGI CIQ system. Values retrieved from S&P Global were not available.