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Sep 30, 2021

Evolent Health Q3 2021 Earnings Report

Evolent Health's Q3 2021 financial performance reflected a mix of revenue decrease and strategic advancements.

Key Takeaways

Evolent Health reported a GAAP revenue of $222.5 million, a 7.1% decrease compared to Q3 2020, but revenue excluding divested assets increased by 36.3%. The company achieved an Adjusted EBITDA of $13.8 million and managed a total of 14.7 million lives. Evolent also announced new agreements with Sunflower Medical Group and Northern Medical Group, along with a partnership with Health New England.

GAAP revenue was $222.5 million, a decrease of 7.1% year-over-year.

Revenue excluding divested assets increased by 36.3% year-over-year.

Adjusted EBITDA reached $13.8 million.

Total lives managed amounted to 14.7 million.

Total Revenue
$222M
Previous year: $265M
-15.9%
EPS
-$0.03
Previous year: -$0.03
+0.0%
Lives on Platform
14.7M
Previous year: 3.5M
+320.0%
Gross Profit
$59.3M
Previous year: $81.4M
-27.1%
Cash and Equivalents
$252M
Previous year: $371M
-31.9%
Total Assets
$1.25B
Previous year: $1.39B
-9.9%

Evolent Health

Evolent Health

Forward Guidance

Evolent Health provided revenue and Adjusted EBITDA guidance for the full year 2021 and the fourth quarter of 2021.

Positive Outlook

  • Full year 2021 revenue is expected to be in the range of approximately $884 million to $900 million.
  • Full year 2021 Adjusted EBITDA is expected to be in the range of approximately $56 million to $60 million.
  • Fourth quarter 2021 revenue is expected to be in the range of approximately $225 million to $240 million.
  • Fourth quarter 2021 Adjusted EBITDA is expected to be in the range of approximately $14 million to $18 million.
  • Company is seeing momentum from the current portfolio

Challenges Ahead

  • Actual results may differ materially due to various factors.
  • Significant portion of revenue derived from largest partners.
  • Uncertainty in the health care regulatory framework.
  • Risks related to completed and future acquisitions.
  • Potential negative impact of the COVID-19 pandemic.