Privia Health Reports Fourth Quarter and Full-Year 2024 Financial Results

   -- All 2024 Operating and Financial Metrics Above High End of Guidance 
      Ranges 
 
   -- Very strong New Provider Signings with Implemented Providers +11.2% from 
      Year-end 2023 
 
   -- Full-year 2024 Net Cash Provided by Operating Activities of $109.3 
      million, +35.3% from 2023, with De Minimis Capital Expenditures 
 
   -- Year-end 2024 Cash Balance of $491.1 million and No Debt 
 
   -- 2025 Guidance Reflects Continued Momentum and Profitable Growth Despite 
      Challenging Medicare Advantage and Value-based Environment 

ARLINGTON, Va., Feb. 27, 2025 (GLOBE NEWSWIRE) -- Privia Health Group, Inc. (Nasdaq: PRVA) today announced financial and operating results for the fourth quarter and full year ended December 31, 2024. Each of the Company's operating and financial performance metrics were above the high end of its guidance ranges for 2024, as highlighted below.

Full-Year Performance

 
                   For the Years Ended December 31, 
                   --------------------------------  ------------- 
($ in millions, 
except per share 
amounts)                  2024             2023       Change (%)* 
                       -----------      -----------  ------------- 
 
Total revenue       $      1,736.4   $      1,657.7       4.7% 
Gross profit        $        397.7   $        353.8      12.4% 
Operating income    $         17.0   $         20.6     (17.8)% 
Net income (a)      $         14.4   $         23.1     (37.7)% 
Non-GAAP adjusted 
 net income (b)     $         97.6   $         81.5      19.8% 
Net income per 
 share              $         0.11   $         0.19     (42.1)% 
Non-GAAP adjusted 
 net income per 
 share (b)          $         0.78   $         0.64      21.9% 
 
      * Any slight variations in totals are due to rounding. 
       a. Net income for full-year 2024 included $56.7 million 
       in non-cash stock compensation expense and $9.5 million 
       in legal, non-recurring, and other expenses. Net income 
       for full-year 2023 included $37.1 million in non-cash 
       stock compensation expense and $7.9 million in legal, 
       non-recurring, and other expenses. 
       b. Reconciliations of non-GAAP adjusted net income 
       and other non-GAAP financial measures are presented 
       in tables near the end of this press release. 
 
 

Highlights from 2024 include:

   -- Very strong new provider signings with Implemented Providers increasing 
      +11.2% from 2023; 
 
   -- Fee-for-service collections growth of +13.6% year over year and strong 
      value-based care performance; 
 
   -- Shared savings of $176.6 million through the Medicare Shared Savings 
      Program (MSSP) for the 2023 performance year, a +34.1% increase from 
      2022; 
 
   -- Adjusted EBITDA growth of +25.2% over full-year 2023; and 
 
   -- Full-year 2024 Net Cash Provided by Operating Activities was $109.3 
      million compared to $80.8 million in 2023 (+35.3%) with de minimis 
      capital expenditures. Free cash flow (defined as net cash provided by 
      operating activities less capital expenditures, primarily purchases of 
      property and equipment) of $109.3 million (+35.4% year over year), 
      approximately 121% of Adjusted EBITDA. 

Key Operating and Non-GAAP Financial Metrics (d)

 
                    For the Years Ended December 
                                 31, 
                   -------------------------------  ------------ 
($ in millions)            2024           2023       Change (%) 
                       ------------   ------------  ------------ 
 
Implemented 
 Providers                    4,789          4,305     11.2% 
Attributed Lives          1,256,000      1,120,000     12.1% 
Practice 
 Collections        $       2,968.0  $     2,839.0      4.5% 
Care Margin         $         403.9  $       359.2     12.4% 
Platform 
 Contribution       $         195.6  $       173.5     12.8% 
Adjusted EBITDA     $          90.5  $        72.2     25.2% 
 
 

Full-Year 2024 Actual Performance versus Guidance (d)

 
                                          Updated 
                                          FY 2024 
                     Initial FY 2024      Guidance 
                       Guidance (c)         (c)       FY 2024 
                  ----------------------  --------  ------------ 
                                             at 
                                          January 
                                            13, 
($ in millions)      Low         High       2025       Actual 
                  ----------  ----------  --------  ------------ 
Implemented 
 Providers             4,650       4,750  High End       4,789 
                                             Above 
                                              High 
Attributed Lives   1,150,000   1,200,000       End   1,256,000 
Practice 
 Collections      $    2,775  $    2,875  High End  $  2,968.0 
GAAP Revenue      $    1,600  $    1,675  High End  $  1,736.4 
Care Margin       $      388  $      400  High End  $    403.9 
Platform 
 Contribution     $      180  $      188  High End  $    195.6 
Adjusted EBITDA   $       85  $       90  High End  $     90.5 
 
c. Management had not reconciled forward-looking non-GAAP 
 measures to their most directly comparable GAAP measures 
 of Gross Profit and Net Income. This is because the 
 Company could not have predicted with reasonable certainty 
 and without unreasonable efforts the ultimate outcome 
 of certain GAAP components of such reconciliations 
 due to market-related assumptions not within our control 
 as well as certain legal or advisory costs, tax costs 
 or other costs that have arisen. For these reasons, 
 management is unable to assess the probable significance 
 of the unavailable information, which could materially 
 impact the amount of the directly comparable GAAP 
 measures. 
 d. Reconciliations of Care Margin, Platform Contribution, 
 Adjusted EBITDA and other non-GAAP financial measures 
 are presented in tables near the end of this press 
 release. 
 
 

Fourth Quarter Performance

 
                  For the Three Months Ended December 
                                  31, 
                  -----------------------------------  ------------- 
($ in millions, 
except per share 
amounts)                   2024              2023       Change (%)* 
                  ----  -----------  ---  -----------  ------------- 
 
Total revenue        $        460.9    $        440.8       4.6% 
Gross profit         $        106.1    $         90.0      18.0% 
Operating income     $          5.2    $          1.4     269.6% 
Net income (e)       $          4.4    $          2.8      55.0% 
Non-GAAP 
 adjusted net 
 income (f)          $         26.5    $         20.3      30.5% 
Net income per 
 share               $         0.03    $         0.02      50.0% 
Non-GAAP 
 adjusted net 
 income per 
 share (f)           $         0.21    $         0.15      40.0% 
 
* Any slight variations in totals are due to rounding. 
 e. Net income for the fourth quarter of 2024 included 
 $15.3 million in non-cash stock compensation expense 
 and $2.5 million in legal and other expenses. Net 
 income for the fourth quarter of 2023 included $11.7 
 million in non-cash stock compensation expense and 
 $2.4 million in legal and other expenses. 
 f .Reconciliations of non-GAAP adjusted net income 
 and other non-GAAP financial measures are presented 
 in tables near the end of this press release. 
 
 

Key Operating and Non-GAAP Financial Metrics (g)

 
                      For the Three Months Ended 
                             December 31, 
                   ---------------------------------  ------------ 
($ in millions)             2024             2023      Change (%) 
                   ----  ----------  ---  ----------  ------------ 
 
Practice 
 Collections          $       792.5    $       756.6      4.7% 
Care Margin           $       107.7    $        91.5     17.8% 
Platform 
 Contribution         $        53.2    $        42.3     25.9% 
Adjusted EBITDA       $        24.9    $        17.3     44.0% 
 
 

g. Reconciliations of Care Margin, Platform Contribution, Adjusted EBITDA and other non-GAAP financial measures are presented in tables near the end of this press release.

Capital Resources and Cash Flow

The Company's balance sheet at December 31, 2024 included $491.1 million of cash and cash equivalents and no debt, compared to cash and cash equivalents of $389.5 million and no debt at December 31, 2023 (+26.1%). Full-year 2024 Net Cash Provided by Operating Activities was $109.3 million compared to $80.8 million in 2023 (+35.3%) with de minimis capital expenditures. Free Cash flow for the year ended December 31, 2024 was $109.3 million compared to $80.7 million in the prior year (+35.4%).

2025 Financial and Business Outlook (g h i)

Privia Health's key actions and areas of focus in 2025 include:

   -- Increasing density and scale in existing states through organic provider 
      growth; 
 
   -- Continuing to perform in value-based risk arrangements for positive 
      margin contribution in challenging Medicare Advantage $(MA)$ market; 
 
   -- Achieving operating leverage to drive Adjusted EBITDA growth, and 
      converting at least 80% of Adjusted EBITDA to Free Cash Flow; and 
 
   -- Pursuing business development efforts to enter new states and expand in 
      existing states to increase overall addressable market. 

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February 27, 2025 06:00 ET (11:00 GMT)