LifeStance Health Group Inc · Q3 2021 earnings

Briefing

LifeStance reported strong revenue growth driven by an increase in clinicians, but experienced a net loss primarily due to stock-based compensation. The company is adjusting its full-year revenue expectations slightly downward due to anticipated clinician holiday time off.

LifeStance Health Group reported a 70% increase in revenue to $173.8 million for the third quarter of 2021, driven by a 72% increase in clinicians. However, the company experienced a net loss of $120.5 million, primarily due to stock and unit-based compensation. The company is adjusting its full-year revenue expectations to the lower end of the previously guided range due to anticipated clinician holiday time off.

• Revenue increased by 70% to $173.8 million compared to the prior-year period.
• Total clinicians increased by 72% to 4,375, with a net increase of 400 clinicians in the third quarter.
• Net loss was $120.5 million, primarily driven by stock and unit-based compensation.
• Adjusted EBITDA decreased by 29% to $10.7 million.

Headline financials

Revenue & EPS history

LifeStance is reiterating its full year 2021 guidance ranges for revenue, Center Margin and Adjusted EBITDA. The company expects full year revenue toward the lower end of the previously guided $668 million to $678 million range, primarily due to the expectation that clinicians will take additional time off at the holidays due to fatigue from COVID. For the full year, the company continues to expect Center Margin in the range of $198 million to $208 million and Adjusted EBITDA in the range of $47 million to $53 million.