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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