- Practice Collections +18.2% compared to 3Q’22
- Implemented Providers +14.2% compared to 3Q’22
- Company Updated Full Year 2023 Guidance
Third Quarter
Total revenue for the third quarter of 2023 was
Non-GAAP adjusted net income was
Reconciliation of net income (loss) to adjusted net income, as well as other non-GAAP reconciliations, are presented in tables near the end of this press release.
Key operating and non-GAAP financial metrics include:
- Practice Collections for the third quarter of 2023 were
$723.5 million , compared to$611.9 million for the same period in 2022 (+18.2%). - Care Margin for the third quarter of 2023 was
$92.1 million , compared to$77.7 million for the same period in 2022 (+18.4%). - Platform Contribution for the third quarter of 2023 was
$45.2 million , compared to$37.0 million for the same period in 2022 (+22.2%). - Adjusted EBITDA for the third quarter of 2023 was
$18.8 million , compared to$15.7 million for the same period in 2022 (+20.0%). - Implemented Providers for the third quarter of 2023 were 4,105, compared to 3,595 for the same period in 2022 (+14.2%).
- Value-Based Care Attributed Lives for the third quarter of 2023 were approximately 1,094,000, compared to 846,000 for the same period in 2022 (+29.3%).
Nine Months
Total revenue was
Net income for the first nine months of 2023 was
Key operating and non-GAAP financial metrics include:
- Practice Collections for the first nine months of 2023 were
$2.08 billion , compared to$1.79 billion for the same period in 2022 (+16.4%). - Care Margin for the first nine months of 2023 was
$267.7 million , compared to$225.6 million for the same period in 2022 (+18.7%). - Platform Contribution for the first nine months of 2023 was
$131.2 million , compared to$109.5 million for the same period in 2022 (+19.9%). - Adjusted EBITDA for the first nine months of 2023 was
$55.0 million , compared to$46.6 million for the same period in 2022 (+18.0%).
Privia Enters South Carolina
Capital Resources
The Company's balance sheet at
Financial and Business Outlook a b c d
FY 2022 | Initial FY 2023 Guidance at | Current FY 2023 Guidance | |||||||||||
($ in millions) | Actual | Low | High | ||||||||||
Implemented Providers | 3,606 | 4,050 | 4,150 | Above High End | |||||||||
Attributed Lives | 856,000 | 1,050,000 | 1,150,000 | Midpoint | |||||||||
Practice Collections | $ | 2,424.1 | $ | 2,700 | $ | 2,850 | Midpoint | ||||||
GAAP Revenue | $ | 1,356.7 | $ | 1,550 | $ | 1,650 | Mid to High End | ||||||
Care Margin | $ | 305.6 | $ | 350 | $ | 365 | Mid to High End | ||||||
Platform Contribution | $ | 148.5 | $ | 160 | $ | 168 | Above High End | ||||||
Adjusted EBITDAc | $ | 60.9 | $ | 70 | $ | 74 | Mid to High End | ||||||
- Practice Collections guidance includes impact of paused capitated agreement previously announced
- Adjusted EBITDA guidance includes approximately
$10 million in start-up costs for new geographies and ACOs, and higher than initially forecasted sales and marketing costs due to record in-market sales - Capital expenditures expected to be less than
$1 million in full-year 2023 - Approximately 80-90% of Adjusted EBITDA expected to convert to free cash flow (defined as net cash provided by operating activities less capital expenditures) in FY 2023
- Management has not reconciled forward-looking non-GAAP measures to their most directly comparable GAAP measures of gross margin, operating income and net income. This is because the Company cannot predict with reasonable certainty and without unreasonable efforts the ultimate outcome of certain GAAP components of such reconciliations due to market-related assumptions that are not within our control as well as certain legal or advisory costs, tax costs or other costs that may arise. For these reasons, management is unable to assess the probable significance of the unavailable information, which could materially impact the amount of the future directly comparable GAAP measures.
- See “Key Metrics and Non-GAAP Financial Measures” for more information as to how the Company defines and calculates Implemented Providers, Attributed Lives, Practice Collections, Care Margin, Platform Contribution, and Adjusted EBITDA, and for a reconciliation of the most comparable GAAP measures to Care Margin, Platform Contribution, Adjusted EBITDA, Adjusted Net Income and Adjusted Net Income Per Share.
- Certain non-recurring or non-cash and other expenses will be treated as an add back in the reconciliation of Net Income to Adjusted EBITDA, and the reconciliation of Net Income to Adjusted Net Income and Adjusted Net Income Per Share, the details of which can be found in the Reconciliation schedules near the end of this and in future quarterly financial press releases.
- Any slight variations in totals due to rounding.
Webcast and Conference Call Information
The Company will host a conference call on
This news release and the financial statements contained herein, and the slide presentation for the webcast, are also available on the Privia Health Investor Relations website at ir.priviahealth.com.
About
Privia Health™ is a technology-driven, national physician enablement company that collaborates with medical groups, health plans, and health systems to optimize physician practices, improve patient experiences, and reward doctors for delivering high-value care in both in-person and virtual settings. Our platform is led by top industry talent and exceptional physician leadership, and consists of scalable operations and end-to-end, cloud-based technology that reduces unnecessary healthcare costs, achieves better outcomes, and improves the health of patients and the well-being of providers. For more information, visit priviahealth.com.
Non-GAAP Financial Measures
The Company reports and discusses its operating results using financial measures consistent with accounting principles generally accepted in
The Company believes that the non-GAAP financial measures presented in this press release are relevant and provide useful information to the Company's management, investors, and other interested parties about the Company's operating performance because the measures allow them to understand and compare the Company's actual and expected operating results during the prior, current and future periods in a more consistent manner. The non-GAAP measures presented in this press release may not be comparable to similarly titled measures used by other companies. These non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP and reflect an additional way of viewing aspects of the Company's operations that, when viewed with GAAP results and the accompanying reconciliations to corresponding GAAP financial measures, provides a more complete understanding of the results of operations and trends affecting the Company's business. These non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to financial measures calculated in accordance with GAAP.
Safe Harbor Statement
The financial results in this press release reflect preliminary, unaudited results, which are not final until the Company’s Form 10-Q is filed with the
Factors related to these risks and uncertainties include, but are not limited to: compliance with applicable healthcare laws and government regulations in the heavily regulated industry in which the Company operates; the Company’s dependence on relationships with its medical groups, some of which the Company does not own; the Company’s growth strategy, which may not prove viable and the Company may not realize expected results; the Company’s inability to successfully enter new markets; difficulties implementing the Company’s proprietary end-to-end, cloud-based technology solution for Privia physicians and new medical groups; the high level of competition in the Company’s industry and the Company’s failure to compete and innovate; challenges in successfully establishing a presence in new geographic markets; the Company’s reliance on its electronic medical record vendor, which the Privia Technology Solution is integrated and built upon; changes in the payer mix of patients and potential decreases in the Company’s reimbursement rates as a result of consolidation among commercial payers; the Company’s use, disclosure, and other processing of personally identifiable information, including health information, is subject to the Health Insurance Portability and Accountability Act of 1996 and other federal and state privacy and security regulations; and those factors discussed under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended
Contact:
SVP,
IR@priviahealth.com
817.783.4841
Condensed Consolidated Statements of Operations(a)
(unaudited)
(in thousands, except share and per share data)
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Revenue | $ | 417,282 | $ | 342,899 | $ | 1,216,909 | $ | 992,236 | |||||||
Operating expenses: | |||||||||||||||
Provider expense | 325,222 | 265,174 | 949,195 | 766,672 | |||||||||||
Cost of platform | 50,324 | 43,839 | 145,254 | 127,495 | |||||||||||
Sales and marketing | 7,241 | 5,088 | 18,483 | 14,568 | |||||||||||
General and administrative | 27,228 | 32,219 | 79,987 | 101,436 | |||||||||||
Depreciation and amortization | 1,731 | 1,153 | 4,761 | 3,436 | |||||||||||
Total operating expenses | 411,746 | 347,473 | 1,197,680 | 1,013,607 | |||||||||||
Operating income (loss) | 5,536 | (4,574 | ) | 19,229 | (21,371 | ) | |||||||||
Interest (income) expense, net | (2,894 | ) | (285 | ) | (5,524 | ) | 610 | ||||||||
Income (loss) before provision for (benefit from) income taxes | 8,430 | (4,289 | ) | 24,753 | (21,981 | ) | |||||||||
Provision for (benefit from) income taxes | 2,488 | (4,845 | ) | 6,049 | 6,931 | ||||||||||
Net income (loss) | 5,942 | 556 | 18,704 | (28,912 | ) | ||||||||||
Gain (loss) attributable to non-controlling interests | 299 | (1,068 | ) | (1,537 | ) | (2,551 | ) | ||||||||
Net income (loss) attributable to | $ | 5,643 | $ | 1,624 | $ | 20,241 | $ | (26,361 | ) | ||||||
Net income (loss) per share attributable to | $ | 0.05 | $ | 0.01 | $ | 0.17 | $ | (0.24 | ) | ||||||
Net income (loss) per share attributable to | $ | 0.05 | $ | 0.01 | $ | 0.16 | $ | (0.24 | ) | ||||||
Weighted average common shares outstanding – basic | 117,602,059 | 111,592,834 | 116,266,938 | 109,458,855 | |||||||||||
Weighted average common shares outstanding – diluted | 124,924,442 | 124,845,602 | 124,646,849 | 109,458,855 | |||||||||||
(a) Any slight variations in totals due to rounding.
Condensed Consolidated Balance Sheets(a)
(in thousands)
Assets | (unaudited) | ||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 330,391 | $ | 347,992 | |||
Accounts receivable | 350,110 | 189,604 | |||||
Prepaid expenses and other current assets | 17,167 | 14,366 | |||||
Total current assets | 697,668 | 551,962 | |||||
Non-current assets: | |||||||
Property and equipment, net | 2,597 | 3,386 | |||||
Right-of-use asset | 7,104 | 8,089 | |||||
Intangible assets, net | 107,244 | 57,387 | |||||
135,612 | 126,938 | ||||||
Deferred tax asset | 35,189 | 40,368 | |||||
Other non-current assets | 6,916 | 4,683 | |||||
Total non-current assets | 294,662 | 240,851 | |||||
Total assets | $ | 992,330 | $ | 792,813 | |||
Liabilities and stockholders’ equity | |||||||
Current liabilities: | |||||||
Accounts payable and accrued expenses | $ | 54,326 | $ | 52,837 | |||
Provider liability | 336,641 | 208,424 | |||||
Operating lease liabilities, current | 3,225 | 3,013 | |||||
Total current liabilities | 394,192 | 264,274 | |||||
Non-current liabilities: | |||||||
Operating lease liabilities, non-current | 5,768 | 8,490 | |||||
Other non-current liabilities | 1,313 | 1,000 | |||||
Total non-current liabilities | 7,081 | 9,490 | |||||
Total liabilities | 401,273 | 273,764 | |||||
Commitments and contingencies | |||||||
Stockholders’ equity: | |||||||
Common stock | 1,180 | 1,148 | |||||
Additional paid-in capital | 739,953 | 714,639 | |||||
Accumulated deficit | (196,452 | ) | (216,693 | ) | |||
544,681 | 499,094 | ||||||
Non-controlling interest | 46,376 | 19,955 | |||||
Total stockholders’ equity | 591,057 | 519,049 | |||||
Total liabilities and stockholders’ equity | $ | 992,330 | $ | 792,813 | |||
(a) Any slight variations in totals are due to rounding.
Condensed Consolidated Statements of Cash Flows(a)
(unaudited)
(in thousands)
For the Nine Months Ended | |||||||
2023 | 2022 | ||||||
Cash flows from operating activities | |||||||
Net income (loss) | $ | 18,704 | $ | (28,912 | ) | ||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||||||
Depreciation | 878 | 927 | |||||
Amortization of intangibles | 3,883 | 2,509 | |||||
Amortization of debt issuance costs | — | 687 | |||||
Stock-based compensation | 25,429 | 58,184 | |||||
Deferred tax expense | 5,179 | 6,553 | |||||
Changes in asset and liabilities: | |||||||
Accounts receivable | (156,219 | ) | (128,946 | ) | |||
Prepaid expenses and other current assets | (2,801 | ) | 1,657 | ||||
Other non-current assets and right-of-use asset | (1,246 | ) | (7,705 | ) | |||
Accounts payable and accrued expenses | 1,489 | 1,268 | |||||
Provider liability | 123,930 | 113,570 | |||||
Operating lease liabilities | (2,510 | ) | (1,750 | ) | |||
Other long-term liabilities | (32 | ) | — | ||||
Net cash provided by operating activities | 16,684 | 18,042 | |||||
Cash from investing activities | |||||||
Purchases of property and equipment | (90 | ) | (89 | ) | |||
Business Acquisitions, net of cash acquired | (37,858 | ) | — | ||||
Net cash used in investing activities | (37,948 | ) | (89 | ) | |||
Cash flows from financing activities | |||||||
Repayment of note payable | — | (33,250 | ) | ||||
Proceeds from exercised stock options | 8,788 | 11,491 | |||||
Repurchase of non-controlling interest | (5,694 | ) | — | ||||
Proceeds from non-controlling interest | 569 | 125 | |||||
Net cash provided by (used in) financing activities | 3,663 | (21,634 | ) | ||||
Net decrease in cash and cash equivalents | (17,601 | ) | (3,681 | ) | |||
Cash and cash equivalents at beginning of period | 347,992 | 320,577 | |||||
Cash and cash equivalents at end of period | $ | 330,391 | $ | 316,896 | |||
Supplemental disclosure of cash flow information: | |||||||
Interest paid | $ | 40 | $ | 680 | |||
Income taxes paid | $ | 1,019 | $ | 266 | |||
(a) Any slight variations in totals are due to rounding.
Additional Financial Information
Revenues disaggregated by source:
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||
(Dollars in Thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||
FFS-patient care | $ | 245,569 | $ | 221,911 | $ | 704,346 | $ | 637,540 | |||||||
FFS-administrative services | 29,845 | 25,270 | 83,413 | 71,911 | |||||||||||
Capitated revenue | 88,526 | 54,708 | 253,481 | 160,776 | |||||||||||
Shared savings | 33,530 | 30,243 | 130,304 | 90,296 | |||||||||||
Care management fees (PMPM) | 17,778 | 9,239 | 39,904 | 27,519 | |||||||||||
Other revenue | 2,034 | 1,528 | 5,461 | 4,194 | |||||||||||
Total Revenue | $ | 417,282 | $ | 342,899 | $ | 1,216,909 | $ | 992,236 | |||||||
The Company’s liabilities for unpaid medical claims under at-risk capitation arrangements:
(Dollars in Thousands) | 2023 | 2022 | ||||||
Balance, beginning of period | $ | 28,617 | $ | — | ||||
Incurred health care costs: | ||||||||
Current year | 246,004 | 160,607 | ||||||
Prior years | 5,723 | — | ||||||
Total claims incurred | $ | 251,727 | $ | 160,607 | ||||
Claims paid: | ||||||||
Current year | $ | (185,287 | ) | $ | (124,385 | ) | ||
Prior year | (30,502 | ) | — | |||||
Total claims paid | $ | (215,789 | ) | $ | (124,385 | ) | ||
Balance, end of period | $ | 64,555 | $ | 36,222 | ||||
Key Metrics and Non-GAAP Financial Measures
Key Metrics(a)
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
(unaudited; $ in millions) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
Implemented Providers (as of end of period) (1) | 4,105 | 3,595 | 4,105 | 3,595 | ||||||||||||
Attributed Lives (as of end of period) (2) | 1,094,000 | 846,000 | 1,094,000 | 846,000 | ||||||||||||
Practice Collections (3) | $ | 723.5 | $ | 611.9 | $ | 2,082.4 | $ | 1,789.2 | ||||||||
(1) Implemented Providers is defined as the total of all service professionals on Privia Health’s platform at the end of a given period who are credentialed by | ||||||||||||||||
(2) Attributed Lives are defined as any patient that a payer deems attributed to | ||||||||||||||||
(3) Practice Collections are defined as the total collections from all practices in all markets and all sources of reimbursement that the Company receives for delivering care and providing Privia Health’s platform and associated services. Practice Collections differ from revenue by including collections from Non-Owned Medical Groups. | ||||||||||||||||
(a) Any slight variations in totals are due to rounding. | ||||||||||||||||
Non-GAAP Financial Measures (4)(a)
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
(unaudited; $ in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
Care Margin | $ | 92,060 | $ | 77,725 | $ | 267,714 | $ | 225,564 | ||||||||
Platform Contribution | $ | 45,181 | $ | 36,981 | $ | 131,199 | $ | 109,451 | ||||||||
Platform Contribution Margin | 49.1 | % | 47.6 | % | 49.0 | % | 48.5 | % | ||||||||
Adjusted EBITDA | $ | 18,774 | $ | 15,650 | $ | 54,950 | $ | 46,587 | ||||||||
Adjusted EBITDA Margin | 20.4 | % | 20.1 | % | 20.5 | % | 20.7 | % | ||||||||
(4) In addition to results reported in accordance with GAAP,
| ||||||||||||||||
(a) Any slight variations in totals are due to rounding. | ||||||||||||||||
Reconciliation of Gross Profit to Care Margin(a)
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
(unaudited; $ in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
Revenue | $ | 417,282 | $ | 342,899 | $ | 1,216,909 | $ | 992,236 | ||||||||
Provider expense | (325,222 | ) | (265,174 | ) | (949,195 | ) | (766,672 | ) | ||||||||
Amortization of intangible assets | (1,434 | ) | (842 | ) | (3,883 | ) | (2,509 | ) | ||||||||
Gross Profit | $ | 90,626 | $ | 76,883 | $ | 263,831 | $ | 223,055 | ||||||||
Amortization of intangibles assets | 1,434 | 842 | 3,883 | 2,509 | ||||||||||||
Care margin | $ | 92,060 | $ | 77,725 | $ | 267,714 | $ | 225,564 | ||||||||
(a) Any slight variations in totals are due to rounding. | ||||||||||||||||
Reconciliation of Gross Profit to Platform Contribution(a)
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
(unaudited; $ in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
Revenue | $ | 417,282 | $ | 342,899 | $ | 1,216,909 | $ | 992,236 | ||||||||
Provider expense | (325,222 | ) | (265,174 | ) | (949,195 | ) | (766,672 | ) | ||||||||
Amortization of intangibles assets | (1,434 | ) | (842 | ) | (3,883 | ) | (2,509 | ) | ||||||||
Gross Profit | $ | 90,626 | $ | 76,883 | $ | 263,831 | $ | 223,055 | ||||||||
Amortization of intangibles assets | 1,434 | 842 | 3,883 | 2,509 | ||||||||||||
Cost of platform | (50,324 | ) | (43,839 | ) | (145,254 | ) | (127,495 | ) | ||||||||
Stock-based compensation(5) | 3,445 | 3,095 | 8,739 | 11,382 | ||||||||||||
Platform Contribution | $ | 45,181 | $ | 36,981 | $ | 131,199 | $ | 109,451 | ||||||||
(a) Any slight variations in totals are due to rounding. | ||||||||||||||||
(5) Amount represents stock-based compensation expense included in Cost of Platform. | ||||||||||||||||
Reconciliation of Net Income (Loss) to Adjusted EBITDA(a)
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
(unaudited; $ in thousands) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
Net income (loss) | $ | 5,643 | $ | 1,624 | $ | 20,241 | $ | (26,361 | ) | |||||||
Net income (loss) attributable to non-controlling interests | 299 | (1,068 | ) | (1,537 | ) | (2,551 | ) | |||||||||
Provision for (benefit from) income taxes | 2,488 | (4,845 | ) | 6,049 | 6,931 | |||||||||||
Interest (income) expense, net | (2,894 | ) | (285 | ) | (5,524 | ) | 610 | |||||||||
Depreciation and amortization | 1,731 | 1,153 | 4,761 | 3,436 | ||||||||||||
Stock-based compensation | 10,801 | 14,833 | 25,429 | 58,184 | ||||||||||||
Other expenses(6) | 706 | 4,238 | 5,531 | 6,338 | ||||||||||||
Adjusted EBITDA | $ | 18,774 | $ | 15,650 | $ | 54,950 | $ | 46,587 | ||||||||
(a) Any slight variations in totals are due to rounding. | ||||||||||||||||
(6) Other expenses include employer taxes on equity vesting/exercises, legal, severance and certain non-recurring costs. Employer taxes on equity vesting/exercises of | ||||||||||||||||
Reconciliation of Net Income (Loss) to Adjusted Net Income and Adjusted Net Income Per Share(a)
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||
(unaudited; $ in thousands) | 2023 | 2022 | 2023 | 2022 | |||||||||||
Net income (loss) | $ | 5,643 | $ | 1,624 | $ | 20,241 | $ | (26,361 | ) | ||||||
Stock-based compensation | 10,801 | 14,833 | 25,429 | 58,184 | |||||||||||
Intangible amortization expense | 1,434 | 842 | 3,883 | 2,509 | |||||||||||
Provision for (benefit from) income tax | 2,488 | (4,845 | ) | 6,049 | 6,931 | ||||||||||
Other expenses(6) | 706 | 4,238 | 5,531 | 6,338 | |||||||||||
Adjusted net income attributable to | $ | 21,072 | $ | 16,692 | $ | 61,133 | $ | 47,601 | |||||||
Adjusted net income per share attributable to | $ | 0.18 | $ | 0.15 | $ | 0.53 | $ | 0.43 | |||||||
Adjusted net income per share attributable to | $ | 0.17 | $ | 0.13 | $ | 0.49 | $ | 0.39 | |||||||
Weighted average common shares outstanding – basic | 117,602,059 | 111,592,834 | 116,266,938 | 109,458,855 | |||||||||||
Weighted average common shares outstanding – diluted | 124,924,442 | 124,845,602 | 124,646,849 | 122,741,319 | |||||||||||
(a) Any slight variations in totals due to rounding. | |||||||||||||||
(6) Other expenses include employer taxes on equity vesting/exercises, legal, severance and certain non-recurring costs. Employer taxes on equity vesting/exercises of | |||||||||||||||
Source:
2023 GlobeNewswire, Inc., source