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Jun 30, 2023

Evolent Health Q2 2023 Earnings Report

Evolent Health reported strong second-quarter results, marked by revenue growth and new business momentum.

Key Takeaways

Evolent Health announced financial results for Q2 2023, featuring a 46.6% increase in revenue to $469.1 million compared to the same period last year. The company reported a net loss attributable to common shareholders of $41.4 million, with an adjusted EBITDA of $47.4 million. Evolent also highlighted new operating partnerships and expansions, raising its Adjusted EBITDA range for 2023.

Revenue increased by 46.6% to $469.1 million compared to Q2 2022.

Net loss attributable to common shareholders was $41.4 million.

Adjusted EBITDA reached $47.4 million, with a margin of 10.1%.

Total Lives on Platform increased to 78.6 million.

Total Revenue
$469M
Previous year: $320M
+46.6%
EPS
$0.14
Previous year: $0.1
+40.0%
Lives on Platform
41.8M
Gross Profit
$117M
Previous year: $70.2M
+66.9%
Cash and Equivalents
$143M
Previous year: $193M
-26.2%
Total Assets
$2.65B
Previous year: $1.3B
+103.0%

Evolent Health

Evolent Health

Forward Guidance

For the third quarter of 2023, Evolent Health expects revenue to be in the range of $500 million to $520 million and Adjusted EBITDA to be in the range of $42 million to $47 million. The company is reiterating its previously-stated revenue guidance and raising its Adjusted EBITDA guidance for the full year 2023, with revenue expected to be in the range of $1.935 billion to $1.965 billion and Adjusted EBITDA expected to be in the range of $185 million to $200 million.

Positive Outlook

  • Revenue is expected to be in the range of approximately $500 million to $520 million for Q3 2023.
  • Adjusted EBITDA is expected to be in the range of approximately $42 million to $47 million for Q3 2023.
  • Revenue expected to be in the range of approximately $1.935 billion to $1.965 billion for the year ending December 31, 2023.
  • Adjusted EBITDA expected to be in the range of approximately $185 million to $200 million for the year ending December 31, 2023.
  • Cash deployed for software development is expected to be in the range of $35 million - $40 million for the year ended December 31, 2023.