BASIS OF PRESENTATION

6 Months Ended

Jun. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BASIS OF PRESENTATION

BASIS OF PRESENTATION

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and include all adjustments that, in the opinion of management, are necessary for a fair presentation of the results of the periods presented. All such adjustments are considered of a normal recurring nature. Quarterly results of operations are not necessarily indicative of annual results.

Certain footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted. The condensed consolidated balance sheet as of December 31, 2023 was derived from the audited consolidated balance sheet at that date. These unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements of TruBridge, Inc. (“TruBridge” or the “Company”) for the year ended December 31, 2023 and the notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.

In May 2024, the Company realigned its reporting structure due to certain organizational changes. As a result, the Company changed from three reportable segments of (i) Revenue Cycle Management (“RCM”), (ii) Electronic Health Records (“EHR”), and (iii) Patient Engagement to two reportable segments of (i) RCM and (ii) EHR. The Patient Engagement segment results have been transitioned into the EHR segment. This change is intended to improve connectivity and alignment between the two business units to better serve our clients and more accurately reflect how the Company’s management views and operates the business. All prior segment information has been recast to reflect the Company's new segment structure and current period presentation. Refer to Note 17 - Segment Reporting for more information.

During the third quarter of 2023, we changed the presentation of certain costs previously recorded within the expense captions of "Product development" and "General and administrative" to better comply with the disclosure requirements of Staff Accounting Bulletin Topic 11.B. Miscellaneous Disclosure: Depreciation and Depletion Excluded from Cost of Sales. These changes are summarized as follows:

•Amortization expense associated with capitalized software development costs, previously recorded within the expense caption of "Product development," has been combined with amounts previously recorded within the expense caption "Amortization of acquisition-related intangibles" and reflected in a newly-presented expense caption of "Amortization."

•Depreciation expense previously recorded within the expense caption of "General and administrative" has been reclassified within the newly-presented expense caption of "Depreciation."

•The expense caption previously labeled as "Costs of sales" has been renamed "Costs of revenue (exclusive of amortization and depreciation)," with the previously reported reference to "Gross profit" removed from the current presentation.

The following table provides the amounts reclassified for the three and six months ended June 30, 2023.

	Three Months Ended June 30, 2023
(in thousands)	As previously reported		Re-classifications		As reclassified		As currently reported
Costs of revenue (exclusive of amortization and depreciation)
RCM	$	27,119	$	—	$	27,119	$	27,119
EHR	17,014		—		17,014		17,014
Other expenses
Product development	10,595		(1,826)		8,769		8,769
Sales and marketing	8,132		—		8,132		8,132
General and administrative	19,654		(597)		19,057		19,057
Amortization of acquisition-related intangibles	4,014		(4,014)		—		—
Amortization	—		5,840		5,840		5,840
Depreciation	—		597		597		597

	Six Months Ended June 30, 2023
(in thousands)	As previously reported		Re-classifications		As reclassified		As currently reported
Costs of revenue (exclusive of amortization and depreciation)
RCM	$	54,302	$	—	$	54,302	$	54,302
EHR	34,008		—		34,008		34,008
Other expenses
Product development	20,434		(3,313)		17,121		17,121
Sales and marketing	15,089		—		15,089		15,089
General and administrative	34,604		(1,094)		33,510		33,510
Amortization of acquisition-related intangibles	8,029		(8,029)		—		—
Amortization	—		11,341		11,341		11,341
Depreciation	—		1,095		1,095		1,095

Principles of Consolidation

The condensed consolidated financial statements of TruBridge include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany balances and transactions have been eliminated.