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Sep 30, 2023

Evolent Health Q3 2023 Earnings Report

Evolent Health reported revenue of $511.0 million, representing a 44.9% increase year-over-year, and a net loss attributable to common shareholders of $33.2 million for Q3 2023.

Key Takeaways

Evolent Health announced strong Q3 2023 results, with revenue reaching $511.0 million, a 44.9% increase compared to the previous year. The company's specialty care offerings experienced significant growth. Evolent is raising the mid-point of its outlook for revenue and Adjusted EBITDA in 2023.

Revenue of $511.0 million, an increase of 44.9% from the three months ended September 30, 2022.

Specialty care offerings grew 80% compared to the three months ended September 30, 2022, with the NIA acquisition contributing approximately 24% of the growth.

Net loss attributable to common shareholders of Evolent Health, Inc. of $33.2 million resulting in a net loss margin of (6.5)%.

Adjusted EBITDA of $48.7 million resulting in an Adjusted EBITDA margin of 9.5%.

Total Revenue
$511M
Previous year: $353M
+44.9%
EPS
$0.3
Previous year: $0.59
-49.2%
Lives on Platform
41.7M
Gross Profit
$124M
Previous year: $86M
+44.7%
Cash and Equivalents
$185M
Previous year: $157M
+17.7%
Free Cash Flow
$53.7M
Total Assets
$2.67B
Previous year: $1.76B
+51.8%

Evolent Health

Evolent Health

Forward Guidance

For the fourth quarter of 2023, revenue is expected to be in the range of approximately $537 million to $557 million. Adjusted EBITDA is expected to be in the range of approximately $45 million to $53 million. The Company is reiterating its previously-stated guidance for revenue and raising its Adjusted EBITDA guidance for the year ending December 31, 2023, with revenue expected to be in the range of approximately $1.945 billion to $1.965 billion and Adjusted EBITDA expected to be in the range of approximately $192 million to $200 million.

Positive Outlook

  • Revenue is expected to be in the range of approximately $537 million to $557 million for Q4 2023.
  • Adjusted EBITDA is expected to be in the range of approximately $45 million to $53 million for Q4 2023.
  • Revenue expected to be in the range of approximately $1.945 billion to $1.965 billion for full year 2023.
  • Adjusted EBITDA expected to be in the range of approximately $192 million to $200 million for full year 2023.
  • Cash deployed for capitalized software development is expected to be in the range of $25 million - $30 million for the year ended December 31, 2023.