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Dec 31, 2023
Privia Health Q4 2023 Earnings Report
Privia Health's financial performance for Q4 2023 was reported, showing revenue growth and progress in key operating metrics, while also outlining the company's strategic initiatives for 2024.
Key Takeaways
Privia Health reported a 21.0% increase in total revenue for Q4 2023, reaching $440.8 million, and a net income of $2.8 million. The company achieved growth in practice collections, care margin, and platform contribution. They are proactively addressing challenges in the Medicare Advantage market and focusing on strategic initiatives for 2024.
Total revenue increased by 21.0% year-over-year, reaching $440.8 million.
Net income was $2.8 million, compared to $17.8 million in the same quarter of the previous year.
Non-GAAP adjusted net income increased by 26.1% to $20.3 million.
Implemented providers reached 4,305, a 19.4% increase compared to the end of 2022.
Privia Health
Privia Health
Forward Guidance
Privia Health anticipates revenue between $1.600 billion and $1.675 billion and Adjusted EBITDA between $85 million and $90 million.
Positive Outlook
- Increasing density and scale in existing geographies through organic provider growth.
- Achieving operating leverage to drive Adjusted EBITDA growth, and converting 80% of Adjusted EBITDA to Free Cash Flow.
- Continuing to pursue business development efforts to enter new states and increase overall addressable market.
- Care Margin between $388 million and $400 million
- Platform Contribution between $180 million and $188 million
Challenges Ahead
- Limiting downside-risk arrangements in a challenging Medicare Advantage (MA) market.
- Renegotiating MA capitation arrangements for more favorable contract structures and margin contribution expected to reduce capitated practice collections by approximately $198 million year-over-year due to revenue recognition rules as 19,900 attributed lives move to upside/downside risk arrangements.
- Exiting Delaware ACO (~12,000 attributed lives in the Medicare Shared Savings Program), effective January 1, 2024.
- Practice Collections guidance includes reduction of approximately $198 million from renegotiated Medicare Advantage capitation agreements, and assumes minimal year-over-year increase in Shared Savings accruals
- Adjusted EBITDA guidance includes approximately $10-12 million in start-up costs for new geographies announced in last 15 months