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Cerner Notches Nearly $5.7B in Full Year Revenues

By Jack O'Brien  
   February 04, 2020

The Kansas City-based health information technology company's backlog totaled $13.71 billion.

Cerner Corp.'s Q4 2019 and full year revenues both increased 6% year-over-year, according to the company's latest earnings report released Tuesday afternoon.

For Q4, Cerner reported revenues of $1.4 billion, which were in line with company expectations, and full year revenues of nearly $5.7 billion.

The Kansas City-based health information technology company reported full year bookings of almost $6 billion, which were represented a year-over-year decline due to Cerner "being more selective in the types of contracts it pursues."

Related: Cerner Revenue Hits $1.4B in Q3

Additionally, Cerner reported an operating cash flow of $ 437.6 million and a free cash flow of $292.1 million, which both marked improvements compared to Q3 2019. 

C-suite perspective:

"I am pleased with our strong finish to the year, with all of our key operating metrics at or above our expectations in the fourth quarter," Brent Shafer, CEO of Cerner, said in a statement. "2019 was an important and productive year for Cerner.  We made meaningful progress on driving value for our clients, delivering operating efficiencies, simplifying our business, and refining our growth strategy.  These efforts are ongoing, and I believe they position us for long-term profitable growth."

Cerner produced a quarterly operating margin of 12.68%, up slightly from 12.02% in Q4 2018.

The company's operating earnings reached nearly $183 million in Q4 2019, an increase of $18 million year-over-year. Cerner's backlog totaled $13.71 billion.

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For its guidance, Cerner expects to generate between $1.4 billion to $1.46 billion in revenues for Q1 2020 and adjusted diluted earnings per share (EPS) between $0.69 and $0.71.

For the full year, Cerner expects to generate between $5.72 billion and $5.9 billion, as well as new business bookings between $1.1 billion and $1.3 billion.

Related: Inside Google's Quest for Millions of Medical Records

For complete financial information, review Cerner's filing with the Securities and Exchange Commission.

Jack O'Brien is the finance editor at HealthLeaders, a Simplify Compliance brand.

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