NASDAQ$PRVA

Privia Health Group, Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Privia Health's Q4 2022 performance was strong, marked by revenue growth and strategic expansions.

Privia Health reported a strong fourth quarter in 2022, with a 32.4% increase in revenue compared to the previous year. The company's operating income turned positive, and net income significantly improved. Key operating metrics such as practice collections, care margin, and platform contribution also showed substantial growth.

  • Total revenue increased by 32.4% year-over-year, reaching $364.4 million.
  • Operating income was $2.2 million, a significant improvement from the prior year's operating loss of $19.3 million.
  • Net income was $17.8 million, or $0.14 per diluted share, compared to a net loss of $12.0 million, or $(0.11) per share in the prior year.
  • The company announced new market entries in Connecticut, Delaware, North Carolina, and Ohio, expanding its national presence.

Headline financials

Total Revenue

$364M

Previous: $275M+32.4%
EPS (adj)

$0.13

Previous: $0.06+116.7%
Implemented Providers

3.6K

Previous: 3.3K+8.7%
Practice Collections

$635M

Previous: $513M+23.7%
Care Margin

$80.1M

Previous: $68.6M+16.8%
Platform Contribution

$39.1M

Previous: $27.8M+40.6%
Adjusted EBITDA

$14.3M

Previous: $7.5M+90.7%
Capital Expenditures

$15K

Previous: $151K-90.1%
Free Cash Flow

$29.1M

Previous: -$12.5M+333.7%
Net Income

$17.8M

Previous: -$12M+248.3%
Operating Income

$2.2M

Previous: -$19.3M+111.4%
Gross Profit

$36.7M

Previous: $68.6M-46.5%
Cash & Equivalents

$348M

Previous: $321M+8.5%
Total Assets

$793M

Previous: $686M+15.5%
Stock-Based Comp

$9.18M

Previous: $25.1M-63.4%

Revenue & EPS history

Privia Health · Revenue · Quarterly

$364M

Q4 2022+32.4%vs Q4 2021
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Privia Health · $364M total across 6 segments · Q4 2022

  • FFS-patient care
    $232M
  • Capitated revenue
    $57.7M
  • Shared savings
    $42.3M
  • FFS-administrative services
    $23M
  • Care management fees (PMPM)
    $8.02M
  • Other revenue
    $1.75M

Forward guidance

Privia Health provided full-year 2023 guidance, reflecting management's expectations for growth from existing markets, new market entries, capitated agreements, and investments in operations and technology.

Tailwinds

  • Implemented Providers are expected to be between 4,050 and 4,150, representing a 12.3% to 15.1% increase from FY 2022.
  • Attributed Lives are projected to be between 1,050,000 and 1,150,000, a 22.7% to 34.3% increase from FY 2022.
  • Practice Collections are anticipated to be between $2.7 billion and $2.85 billion, an 11.4% to 17.6% increase from FY 2022.
  • GAAP Revenue is expected to range from $1.55 billion to $1.65 billion, a 14.3% to 21.6% increase from FY 2022.
  • Adjusted EBITDA is projected to be between $70 million and $74 million, a 15.0% to 21.6% increase from FY 2022.

Headwinds

  • 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 due to the uncertainty of predicting certain market-related assumptions and potential legal or advisory costs.
  • Capital expenditures are expected to be less than $1 million in full-year 2023.
  • Approximately 80-90% of Adjusted EBITDA is expected to convert to free cash flow in FY 2023.
  • The partnership with OhioHealth is subject to the negotiation and execution of definitive agreements by both parties.

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 Q4 2022

Historical avgQ4 2022

+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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