AMN Healthcare Services Inc. (NYSE: AMN) reported revenue rose 13.7% in the second quarter with travel nurse revenue leading the way, but revenue was up 2% on an organic basis.
| (US$ thousands) | Q2 2020 | Q2 2019 | % change |
| Revenue | $608,351 | $535,177 | 13.7% |
| Gross profit | $197,540 | $179,542 | 10.0% |
| Gross margin percentage | 32.5% | 33.5% | |
| Net income | $22,325 | $28,869 | -22.7% |
Nurse and allied revenue was up 20.8%; on an organic basis excluding the 2019 acquisition of Advanced Medical, it rose 13%,. However, travel nurse revenue was up 41% year over year and up 35% on an organic basis.
Revenue in AMN’s “technology and workforce solutions” segment was up 123.4%, but the increase was 3% on an organic basis. The company acquired Stratus Video and b4health in February. Technology and workforce solutions includes remote video interpreting, vendor management solutions, predictive analytics, RPO and credentialing services.
Revenue by segment
| (US$ thousands) | Q2 2020 | Q2 2019 | % change |
| Nurse and allied solutions | $444,464 | $367,994 | 20.8% |
| Physician and leadership solutions | $108,622 | $142,449 | -23.7% |
| Technology and workforce solutions | $55,265 | $24,734 | 123.4% |
Guidance
AMN reported healthcare labor demand has been volatile and differs widely among client segments amid the Covid-19 pandemic. It expects travel nurse revenue to be up between 3% and 5% in the third quarter and total nurse and allied solutions revenue to be down approximately 10%.
Allied revenue is expected to be lower by 27% to 29% in the third quarter.
Physician and leadership solutions revenue is expected to be down 30% in the third quarter while technology and workforce solutions revenue is expected to rise 140%, including the acquisitions of Stratus Video and b4health.
Share price and market cap
Shares in AMN were up 5.52% to $58.30 as of 12:42 p.m. Eastern time; they were 59.07% above their 52-week low. The company had a market cap of $2.60 billion.