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View All NewsAMN Q2 revenue up 66.4%, notes severe workforce shortages and higher demand
Second-quarter revenue at AMN Healthcare Services Inc. (NYSE: AMN) rose 66.4% year over year.
The company reported all three business segments — nurse and allied solutions, physician and leadership solutions, and technology and workforce solutions — exceeded revenue expectations in the second quarter.
AMN also noted demand for staffing and other services was significantly higher than pre-pandemic due to severe workforce shortages.
“The healthcare delivery model that is highly dependent on the skills, passion and many hours worked by clinicians is being tested beyond its limits. Open healthcare jobs in the US continue to pace beyond 2.5 times the number of hires each month, and there is no quick fix,” CEO Susan Salka said.
| (US$ thousands) | Q2 2022 | Q2 2021 | % change |
| Revenue | $1,426,607 | $857,445 | 66.4% |
| Gross profit | $460,237 | $280,543 | 64.1% |
| Gross margin percentage | 32.3% | 32.7% | |
| Net income | $123,800 | $66,770 | 85.4% |
In the company’s nurse and allied solutions segment, travel nurse revenue grew 70% year over year, while allied revenue rose 54%. However, the businesses sequentially fell 20% and 3%, respectively.
Locum tenens revenue, which is included in AMN’s physician and leadership solutions segment rose 36% year over year, while interim leadership revenue increased 8%.
In AMN’s technology and workforce solutions segment, language services revenue was up 17% year over year, while vender management system revenue rose 144%.
“The AMN team continues to perform exceptionally well and make a significant impact for clients, healthcare professionals and our community. These efforts amidst a strong market resulted in better-than-expected revenue and earnings for the second quarter,” Salka said.
Revenue by segment
| (US$ thousands) | Q2 2022 | Q2 2021 | % change |
| Nurse and allied solutions | $1,101,478 | $624,485 | 76.4% |
| Physician and leadership solutions | $175,697 | $139,104 | 26.3% |
| Technology and workforce solutions | $149,432 | $93,856 | 59.2% |
Additionally, the expansion of AMN’s international nurse business beyond contract staffing was driven by the acquisition of Connetics USA in May.
Guidance
AMN forecast third-quarter revenue will be up by between 23% and 26% year over year.
Forecast year-over-year increases by segment:
- Nurse and allied solutions revenue, up by between 24% and 28%
- Physician and leadership solutions revenue, up 15%
- Technology and workforce solutions revenue, up 30%
The guidance includes $7 million from labor disruption activities.
Share price and market cap
Shares in AMN were up 8.21% to $117.13 as of 12:11p.m. Eastern time; they were 9.29% below the 52-week high, according to FT.com. The company had a market cap of $4.84 billion.