NASDAQ$PRVA

Privia Health Group, Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Privia Health's financial performance for Q4 2023 was reported, showing revenue growth and progress in key operating metrics, while also outlining the company's strategic initiatives for 2024.

Privia Health reported a 21.0% increase in total revenue for Q4 2023, reaching $440.8 million, and a net income of $2.8 million. The company achieved growth in practice collections, care margin, and platform contribution. They are proactively addressing challenges in the Medicare Advantage market and focusing on strategic initiatives for 2024.

  • Total revenue increased by 21.0% year-over-year, reaching $440.8 million.
  • Net income was $2.8 million, compared to $17.8 million in the same quarter of the previous year.
  • Non-GAAP adjusted net income increased by 26.1% to $20.3 million.
  • Implemented providers reached 4,305, a 19.4% increase compared to the end of 2022.

Headline financials

Total Revenue

$441M

Previous: $364M+21.0%
EPS (adj)

$0.15

Previous: $0.13+15.4%
Implemented Providers

4.3K

Previous: 3.6K+19.4%
Attributed Lives

1.1M

No prior period
Practice Collections

$757M

Previous: $635M+19.2%
Care Margin

$91.5M

Previous: $80.1M+14.2%
Platform Contribution

$42.3M

Previous: $39.1M+8.2%
Adjusted EBITDA

$17.3M

Previous: $14.3M+21.0%
Capital Expenditures

-$23K

Previous: $15K-253.3%
Net Income

$2.8M

Previous: $17.8M-84.3%
Operating Income

$1.4M

Previous: $2.2M-36.4%
Gross Profit

$90M

Previous: $36.7M+145.1%
Stock-Based Comp

$11.7M

Previous: $9.18M+27.2%

Revenue & EPS history

Privia Health · Revenue · Quarterly

$441M

Q4 2023+21%vs Q4 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 anticipates revenue between $1.600 billion and $1.675 billion and Adjusted EBITDA between $85 million and $90 million.

Tailwinds

  • Increasing density and scale in existing geographies through organic provider growth.
  • Achieving operating leverage to drive Adjusted EBITDA growth, and converting 80% of Adjusted EBITDA to Free Cash Flow.
  • Continuing to pursue business development efforts to enter new states and increase overall addressable market.
  • Care Margin between $388 million and $400 million
  • Platform Contribution between $180 million and $188 million

Headwinds

  • Limiting downside-risk arrangements in a challenging Medicare Advantage (MA) market.
  • Renegotiating MA capitation arrangements for more favorable contract structures and margin contribution expected to reduce capitated practice collections by approximately $198 million year-over-year due to revenue recognition rules as 19,900 attributed lives move to upside/downside risk arrangements.
  • Exiting Delaware ACO (~12,000 attributed lives in the Medicare Shared Savings Program), effective January 1, 2024.
  • Practice Collections guidance includes reduction of approximately $198 million from renegotiated Medicare Advantage capitation agreements, and assumes minimal year-over-year increase in Shared Savings accruals
  • Adjusted EBITDA guidance includes approximately $10-12 million in start-up costs for new geographies announced in last 15 months

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 2023

Historical avgQ4 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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