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Mar 31, 2024

Evolent Health Q1 2024 Earnings Report

Evolent Health's Q1 2024 financial results were announced, demonstrating revenue growth and strategic advancements.

Key Takeaways

Evolent Health reported a 49.6% increase in revenue to $639.7 million for Q1 2024. The company is raising its revenue outlook for the full year 2024 and reiterating its full year Adjusted EBITDA guidance. The net loss attributable to common shareholders was $(25.2) million, with an Adjusted EBITDA of $54.1 million.

Revenue increased by 49.6% to $639.7 million compared to Q1 2023.

Net loss attributable to common shareholders was $(25.2) million.

Adjusted EBITDA reached $54.1 million, with a margin of 8.5%.

The company raised its revenue outlook for the full year 2024 and reiterated its full year Adjusted EBITDA guidance.

Total Revenue
$640M
Previous year: $428M
+49.6%
EPS
$0.34
Previous year: $0.21
+61.9%
Lives on Platform
39.89K
Previous year: 41.3M
-99.9%
Gross Profit
$74.6M
Previous year: $117M
-36.4%
Cash and Equivalents
$165M
Previous year: $158M
+4.8%
Free Cash Flow
-$438K
Total Assets
$2.64B
Previous year: $2.59B
+2.1%

Evolent Health

Evolent Health

Forward Guidance

For Q2 2024, revenue is expected to be in the range of $625.0 million to $645.0 million, and Adjusted EBITDA is expected to be in the range of $48.0 million to $62.0 million. For the full year 2024, revenue is expected to be in the range of $2.53 billion to $2.60 billion, and Adjusted EBITDA is expected to be in the range of $235.0 million to $265.0 million.

Positive Outlook

  • Revenue is expected to be in the range of approximately $625.0 million to $645.0 million for Q2 2024.
  • Adjusted EBITDA is expected to be in the range of approximately $48.0 million to $62.0 million for Q2 2024.
  • Revenue is expected to be in the range of approximately $2.53 billion to $2.60 billion for the year ending December 31, 2024.
  • Adjusted EBITDA is expected to be in the range of approximately $235.0 million to $265.0 million for the year ending December 31, 2024.
  • Net cash provided by operating activities is expected to exceed $150 million for the year ending December 31, 2024.

Challenges Ahead

  • The wide range for its second quarter outlook for Adjusted EBITDA is driven by higher leading indicator volume in certain Performance Suite contracts in Q1.
  • Lower claims visibility from partners in part due to the Change Healthcare cyber-attack.
  • These variables resulted in increased conservatism for Q2 guidance.
  • Uncertainty in the health care regulatory framework, including the potential impact of policy changes.
  • Increasing inflationary pressures and economic and business conditions and the impact thereof on the economy resulting from public health emergencies, epidemics, pandemics or contagious diseases.