NASDAQ$PRVA

Privia Health Group, Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Privia Health's financial performance improved in Q2 2023 with increased revenue and profitability.

Privia Health reported a strong second quarter in 2023, with a 23.2% increase in revenue to $413.4 million. The company achieved net income of $7.3 million, a significant improvement from the net loss of $(10.5) million in the same quarter last year. Key metrics, including practice collections, care margin, and attributed lives, also showed substantial growth.

  • Total revenue increased by 23.2% year-over-year to $413.4 million.
  • Net income was $7.3 million, a significant improvement from the prior year's net loss.
  • Practice collections grew by 13.7% year-over-year to $700.0 million.
  • Value-Based Care Attributed Lives increased by 26.6% year-over-year to approximately 1,084,000.

Headline financials

Total Revenue

$413M

Previous: $336M+23.2%
EPS (adj)

$0.17

Previous: $0.13+30.8%
Implemented Providers

3.9K

Previous: 3.5K+9.3%
Attributed Lives

1.1M

Previous: 856.0K+26.6%
Practice Collections

$700M

Previous: $616M+13.7%
Care Margin

$91.6M

Previous: $76.2M+20.2%
Platform Contribution

$44.6M

Previous: $37.5M+18.9%
Adjusted EBITDA

$19.3M

Previous: $15.5M+24.5%
Capital Expenditures

-$72K

Previous: -$73K+1.4%
Free Cash Flow

$7.2M

Previous: -$10.5M+168.3%
Net Income

$7.27M

Previous: -$10.5M+169.4%
Operating Income

$6.98M

Previous: -$5.25M+232.9%
Gross Profit

-$322M

Previous: -$259M-24.1%
Cash & Equivalents

$318M

Previous: $292M+8.8%
Total Assets

$938M

Previous: $745M+25.9%
Stock-Based Comp

$9.25M

Previous: $18.5M-49.9%

Revenue & EPS history

Privia Health · Revenue · Quarterly

$413M

Q2 2023+23.2%vs Q2 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Privia Health · $417M total across 6 segments · Q3 2023

  • FFS-patient care
    $246M
  • Capitated revenue
    $88.5M
  • Shared savings
    $33.5M
  • FFS-administrative services
    $29.8M
  • Care management fees (PMPM)
    $17.8M
  • Other revenue
    $2.03M

Forward guidance

Privia Health updated its full-year 2023 guidance with increased expectations across several key metrics.

Tailwinds

  • Implemented Providers: Expecting mid to high end of 4,050-4,150 range.
  • Attributed Lives: Expecting midpoint of 1,050,000-1,150,000 range.
  • Practice Collections: Expecting midpoint of $2,700 million - $2,850 million range.
  • GAAP Revenue: Expecting mid to high end of $1,550 million - $1,650 million range.
  • Adjusted EBITDA: Expecting mid to high end of $70 million - $74 million range.

Headwinds

  • Practice Collections guidance includes impact of paused capitated agreement previously announced
  • Adjusted EBITDA guidance includes approximately $8-10 million in start-up costs for new geographies and ACOs
  • Management has not reconciled forward-looking non-GAAP measures to their most directly comparable GAAP measures of gross margin, operating income and net income
  • 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+3.5%

Avg return

Earnings day

+4.1%

Avg return

5 days after

+1.3%

Avg return

30 days after

64%

16 / 25 earnings

Positive

+28.3%

Q1 2022

Best reaction

-8.8%

Q2 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.1%-4.1%-9.9%
Q4 2025+9.9%+4.9%-11.6%
Q3 2025-4.3%-2.8%-4.7%
Q1 2025+7.3%+4.2%-0.6%
Q4 2024+5.8%+6.1%-6.1%
Q3 2024+0.7%+6.7%+0.1%
Q2 2024+4.4%+9.7%+2.1%
Q1 2024-4.7%-4.3%-9.1%
Q4 2023+9.4%+11.6%-2.0%
Q3 2023+9.7%+9.0%+6.0%
Q2 2023+1.6%-1.2%-2.3%
Q1 2023+7.3%+7.2%-8.3%
Q4 2022+4.6%+6.3%+1.7%
Q3 2022+5.3%+6.2%-9.7%
Q2 2022+0.6%-4.6%+13.3%
Q1 2022+28.3%+25.1%+41.0%
Q4 2019-2.0%+6.4%-3.5%
Q4 2021+3.3%+7.5%+10.4%
Q3 2020+12.3%+18.3%-14.5%
Q3 2021+12.3%+18.3%-14.5%
Q2 2020-8.8%-14.8%-26.5%
Q2 2021-8.8%-14.8%-26.5%
Q4 2020-2.2%+0.7%+34.8%
Q1 2020-2.2%+0.7%+34.8%
Q1 2021-1.1%+0.9%+39.1%

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