Cerner's revenue rose 4.7% to $5.8 billion last year and 4.1% to $1.5 billion during the fourth quarter, the electronic health records vendor announced Wednesday.
The company missed its revenue targets and attributed that performance to projects delayed by the COVID-19 pandemic and to lower-than-expected revenue from technology resales. Cerner is the second-largest company in the EHR space and controls 25% of the U.S. market, behind Epic Systems's 31%, according to KLAS Research.
Oracle plans to acquire Cerner, which has been ramping up its data business, for $28.3 billion, the companies announced in December. Oracle and Cerner expect the acquisition to close by the end of this year.
"We had a solid fourth quarter driven by a sharper focus on our core business and better operational execution," Cerner President and CEO Dr. David Feinberg said in a news release. "I'm also excited by how the pending acquisition by Oracle can accelerate our development work to help make care more proactive, accessible, equitable and dignified."
Full-year operating earnings declined 22.6% to $708.3 million but rose 21.6% to $215.7 million in the final quarter. Annual adjusted operating margin rose from 19.9% in 2020 to 21.7% in 2021 while the fourth-quarter margin improved from 21.5% to 23%. The company aims to boost adjusted operating margin to the mid-20% range by 2024.
Professional services generated the most revenue among Cerner's business lines. Revenues for this category increased 9.6% to $2.1 billion last year and 11.5% to $533.2 million in the fourth quarter. Management services revenue rose 3.5% to $1.3 billion for the year and 3.2% to $327.2 million for the quarter.
Cerner did not host an earnings conference call with investors and will not issue financial guidance while Oracle acquisition proceeds, the company said in a news release.
Oracle plans to acquire Cerner through an all-cash tender offer of $95 per share. The offer is set to expire March 16 but the companies expect to extend it, according to an Oracle news release. Cerner will be Oracle's largest acquisition, surpassing the roughly $10 billion purchase of enterprise software company PeopleSoft in 2005.