•
Dec 31, 2023

Evolent Health Q4 2023 Earnings Report

Evolent Health reported strong Q4 2023 results, achieving financial objectives with revenue growth and successful integration of NIA.

Key Takeaways

Evolent Health announced its Q4 and Full Year 2023 results, with Q4 revenue reaching $556.06 million and a net loss of $41.40 million. The company achieved all financial objectives for the year, driven by underlying growth and the successful integration of NIA. The company is providing initial outlook for 2024 in line with long-term targets.

Q4 revenue reached $556.06 million.

Net loss attributable to common shareholders was $(41.40) million.

Adjusted EBITDA was $48.06 million.

The company signed four new revenue agreements for 2024, reflecting success in value-based specialty care.

Total Revenue
$556M
Previous year: $382M
+45.4%
EPS
$0.23
Previous year: $0.1
+130.0%
Lives on Platform
40.58K
Previous year: 20.6M
-99.8%
Gross Profit
$102M
Previous year: $83.1M
+22.3%
Cash and Equivalents
$193M
Previous year: $188M
+2.5%
Free Cash Flow
$83.3M
Total Assets
$2.68B
Previous year: $1.82B
+47.5%

Evolent Health

Evolent Health

Forward Guidance

For the year ending December 31, 2024, revenue is expected to be in the range of approximately $2.4 billion to $2.5 billion and Adjusted EBITDA is expected to be in the range of approximately $235 million to $265 million.

Positive Outlook

  • Revenue is expected to be in the range of approximately $2.4 billion to $2.5 billion.
  • Adjusted EBITDA is expected to be in the range of approximately $235 million to $265 million.
  • Cash deployed for capitalized software development of approximately $30 million.
  • Cash flow from operations to exceed $150 million.
  • Initial financial outlook for 2024 includes revenue growth of 25% at the midpoint, exceeds multi-year revenue and profit growth targets.

Challenges Ahead

  • The company cannot provide guidance for the more significant reconciling items between net income (loss) attributable to common shareholders of Evolent Health, Inc. and Adjusted EBITDA without unreasonable effort.
  • Future period non-GAAP guidance includes adjustments for items not indicative of our core operations.
  • Such adjustments may be affected by changes in ongoing assumptions, judgements, as well as nonrecurring, unusual or unanticipated charges, expenses or gains (losses) or other items that may not directly correlate to the underlying performance of our business operations.
  • The exact amount of these adjustments are not currently determinable but may be significant.
  • Actual results may differ materially.