EHR Vendor Cerner Reports Q1 2022 Revenue Growth

EHR vendor Cerner’s revenue for Q1 of 2022 came in at $1.43 billion, a three percent increase compared to Q1 of 2022.

“I am pleased with Cerner’s solid results in the first quarter,” David Feinberg, MD, Cerner president and CEO, said in a news release. “Our results reflect solid execution across the business and strong contributions from Cerner EnvizaSM, which is well-positioned to build on a terrific first year by accelerating the discovery, development, and deployment of therapies.”

The EHR vendor also reported a GAAP operating margin of 17.6 percent for Q1 of 2022, up 190 basis points from 15.7 percent in Q1 2021.

“During the first quarter, we delivered revenue growth in line with our expectations and expanded Adjusted Operating Margin by 130 basis points, resulting in strong Adjusted Diluted EPS growth of 17 percent,” said Mark Erceg, Cerner executive vice president and chief financial officer.

“The margin expansion this quarter was on top of strong margin expansion over the past two years. Since the first quarter of 2020, our GAAP operating margin has expanded 500 basis points,” he added. “Our Adjusted Operating Margin has expanded 330 basis points, reflecting the ongoing impact of our organizational transformation, productivity measures, more focused product strategy, and cost control initiatives.”

On December 20, 2021, the EHR vendor entered into a merger agreement with tech giant Oracle.  

According to the merger agreement, on January 19, 2022, Oracle commenced a cash tender offer to acquire all the issued and outstanding shares of Cerner stock.

The EHR vendor expects the merger to close in 2022, subject to receiving certain regulatory approvals and satisfying other closing conditions.  

“We continue to make progress towards the closing of the proposed acquisition by Oracle, and I remain excited by the potential for the combination to further our purpose of empowering those devoted to delivering care and keeping people healthy,” Feinberg said.

Due to the proposed acquisition of Cerner by Oracle, the EHR vendor will not host an earnings conference call, issue prepared remarks, provide financial guidance, or repurchase shares.