Evolent Health Inc · Q1 2023 earnings

Briefing

Evolent Health's Q1 2023 revenue increased by 44.0% year-over-year, reaching $427.7 million, driven by growth in total lives on the platform and strong performance across its Performance Suite, Specialty Technology and Services Suite, and Administrative Services platforms. However, the company reported a net loss of $26.3 million, although adjusted EBITDA reached $50.5 million.

Evolent Health reported strong first-quarter results with a 44.0% increase in revenue, reaching $427.7 million. The company's total lives on the platform grew significantly, driven by expansion in Performance Suite, Specialty Technology and Services Suite, and Administrative Services. Despite the revenue growth, Evolent Health reported a net loss of $26.3 million, but adjusted EBITDA was $50.5 million.

• Revenue increased by 44.0% to $427.7 million compared to the same period last year.
• Net loss attributable to common shareholders was $26.3 million, resulting in a net loss margin of (6.1)%.
• Adjusted EBITDA was $50.5 million, resulting in an Adjusted EBITDA margin of 11.8%.
• Total Lives on Platform reached 65.6 million, up from 17.9 million in the prior year.

Headline financials

Revenue & EPS history

For the second quarter of 2023, Evolent Health expects revenue to be in the range of $455 million to $470 million and Adjusted EBITDA to be in the range of $45 million to $49 million. The company is raising its guidance for revenue and reiterating its previously-stated Adjusted EBITDA guidance for the full year 2023, with revenue expected to be in the range of $1.935 billion to $1.965 billion and Adjusted EBITDA expected to be in the range of $180 million to $200 million.