The stock price of athenahealth, Inc (NASDAQ:ATHN) suffered a steep decline after reporting a net loss for the third quarter.

Athenahealth

The shares of the company declined more than 10% to $108.16 per share at the time of this writing around 1:13 in the afternoon in New York.

In May, David Einhorn revealed the he was shorting the shares of athenahealth, Inc (NASDAQ:ATHN) and projected that the company could lose 80% of its value.

Financial results

For the third quarter, athenahealth, Inc (NASDAQ:ATHN) posted GAAP net loss of $1.6 million or $0.04 per diluted share. During the same period last year, the company recorded a net income of $1.2 million or $0.03 in earnings per diluted share.

athenahealth, Inc (NASDAQ:ATHN) said its total revenue for the quarter increased 26% to $190.4 million from $151.5 million in the year-ago quarter.

Its revenue from athenahealth-branded services rose 31% to $175.6 million from $134.3 million a year earlier. The company said its revenue from Epocrates-branded services fell 27% to $9.8 million. Its revenue from third-party tenant and non-core revenue rose 32% to $5 million from $3.8 million last year.

According to athenahealth, Inc (NASDAQ:ATHN), its non-GAAP adjusted operating income was $18.5 million or 9.7% of its total revenue. Its gross margin slightly declined to 61.2%.

In a statement, Jonathan Bush, chairman and CEO of athenahealth, Inc (NASDAQ:ATHN) said, “We continued to see strong momentum across the business in the third quarter.” According to him, the company added a substantial number of physicians, opened two offices in Atlanta and San Francisco and launched a brand new user experience across its client base.

“As we prepare for the next wave of growth, we are intently focused on achieving the ambitious goals we laid out for 2014, as well as refining our 2015 roadmap and priorities,” added Bush.

On the other hand, Kristi Matus, CFO and administrative officer of athenahealth, Inc (NASDAQ:ATH) emphasized that the company is” strongly positioned to continue to drive meaningful change in healthcare and remained focused on innovating and connecting care across continuum.”

athenahealth maintains 2014 guidance

For the fiscal 2014, athenahealth, Inc (NASDAQ:ATHN) expected to deliver GAAP total revenue at or above the mid-point of its $725 million to $755 million estimated range.

Its non-GAAP net income is expected to be close to the high end of its $0.98 to $1.10 per share guidance range. The company expected to achieve non-GAAP operating income at or above the mid-point of its guidance range of $70 million to $80 million.