AMN Healthcare Reports Q4 and Full Year 2024 Results
AMN Healthcare Services, Inc. (NYSE: AMN), a leader in total talent solutions for healthcare organizations across the U.S., has announced its financial results for the fourth quarter (Q4) and full year of 2024. Here are the key financial highlights:
Financial Overview (Dollars in Millions)
| Metric | Q4 2024 | % Change Q4 2023 | Full Year 2024 | % Change Full Year 2023 |
|---|---|---|---|---|
| Revenue | $734.7 | -10% | $2,983.8 | -21% |
| Gross Profit | $219.0 | -16% | $919.4 | -26% |
| Net Income (Loss) | $(187.5) | NM | $(147.0) | NM |
| Diluted Earnings (Loss) per Share | $(4.90) | NM | $(3.85) | NM |
| Adjusted Diluted EPS | $0.75 | -43% | $3.31 | -60% |
| Adjusted EBITDA | $75.1 | -28% | $340.8 | -41% |
Note: Non-GAAP items are included in the reconciliation of adjusted financial results.
Key Highlights for 2024
Despite challenges, AMN Healthcare reported a stronger-than-expected fourth quarter, with notable improvements in labor disruption and core staffing revenue. Key achievements include:
- Labor Disruption Revenue: $62 million, $22 million higher than anticipated.
- Revenue Excluding Labor Disruption: Nurse and Allied Solutions, as well as Technology and Workforce Solutions, exceeded expectations.
- ShiftWise Transition: Successfully onboarded nearly all ShiftWise clients to the ShiftWise Flex VMS platform ahead of schedule.
- Client Retention: Strategic accounts saw positive client retention for the full year.
- Locum Tenens Rebound: The locum tenens managed services provider (MSP) business saw a more than 20% volume increase in the second half of the year.
- Debt Reduction: AMN Healthcare reduced its debt by $75 million during Q4, contributing to a $250 million reduction for the full year.
- Cash Flow: Operational cash flow reached $73 million for Q4 and $320 million for the full year.
Cary Grace, President and CEO of AMN Healthcare, commented, “AMN recorded a solid fourth quarter that outperformed our expectations, reflecting a more normalized operating environment. Our technology-driven solutions are resonating well with both healthcare organizations and professionals, unlocking opportunities for growth.”
Fourth Quarter 2024 Results
AMN Healthcare’s Q4 consolidated revenue was $735 million, reflecting a 10% decrease compared to Q4 2023, but a 7% increase from the previous quarter. The company reported a net loss of $188 million, or $(4.90) per diluted share, compared to net income of $12 million, or $0.33 per share, in the same quarter the prior year. The loss primarily stemmed from a $222 million non-cash goodwill impairment.
Revenue for the Nurse and Allied Solutions segment was $455 million, representing a 15% year-over-year decline, though it grew 14% sequentially. The segment saw $62 million in labor disruption revenue. Travel nurse revenue fell by 35% compared to Q4 2023, and Allied revenue dropped by 9%, but increased 6% sequentially.
The Physician and Leadership Solutions segment generated $173 million, an increase of 3% year-over-year but a 4% decline from Q3. Locum tenens revenue grew by 10% due to the MSDR acquisition but fell by 4% sequentially. Interim leadership revenue declined by 11% year-over-year, while search revenue dropped 32%.
Revenue for the Technology and Workforce Solutions segment was $107 million, a 5% decrease year-over-year but only a 1% decline from Q3. Language services revenue grew 12% year-over-year, while vendor management systems revenue fell by 26%.
Full Year 2024 Results
For the full year of 2024, consolidated revenue totaled $2.984 billion, a decrease of 21% compared to 2023. Net loss for the year was $147 million, or $(3.85) per diluted share, down from net income of $211 million, or $5.36 per share, in 2023. Adjusted diluted EPS was $3.31, down 60% from the prior year’s $8.21.
The Nurse and Allied Solutions segment’s revenue dropped 31%, while the Physician and Leadership Solutions segment rose 9% due to the MSDR acquisition. Revenue for the Technology and Workforce Solutions segment decreased by 11%.
For the full year, gross margin dropped to 30.8% from 33.0%, mainly due to lower margins across all segments. SG&A expenses decreased by 16% year-over-year to $632 million, driven by cost-cutting initiatives.
AMN also reduced its debt significantly in 2024, lowering its revolver balance by $250 million. As of December 31, 2024, the company held $11 million in cash, and its total debt outstanding was $1.06 billion.
First Quarter 2025 Outlook
AMN Healthcare has provided guidance for Q1 2025:
- Revenue: Projected between $660 – $680 million, reflecting a 17-20% decrease year-over-year.
- Gross Margin: Estimated to be between 28.1% – 28.6%.
- Adjusted EBITDA Margin: Expected to be between 7.7% – 8.2%.
- Operating Margin: Forecasted to range from (0.3%) to 0.4%.
Revenue Breakdown for Q1 2025:
- Nurse and Allied Solutions: Estimated to decrease by 22-25% year-over-year.
- Physician and Leadership Solutions: Expected to be down 9-11%.
- Technology and Workforce Solutions: Expected to decline by 8-10%.
Conclusion
Despite a challenging year, AMN Healthcare showed strong operational progress and strategic alignment with its workforce solutions and technology-driven initiatives. While the company faces some headwinds, particularly in the Nurse and Allied Solutions segment, its efforts in debt reduction, operational efficiency, and service expansion position it for continued growth moving into 2025.
