Evolent Health, Inc · NYSE:EVH
Evolent Health — Q4 2024 Earnings Presentation
20 slides from Evolent Health's earnings presentation, Feb 20, 2025
Slide 1: Evolent Health, Inc. Fourth Quarter 2024 Results
Evolent Health, Inc. Fourth Quarter 2024 Results February 20, 2025 CONTACT: Seth R. Frank Evolent Investor Relations sfrank@evolent.com 1 Confidential – Do Not Distribute
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements made in this presentation and in other written or oral statements made by us or on our behalf are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (“PSLRA”). These include statements relating to future ac
Slide 3: Evolent 2024 Highlights
Evolent 2024 Highlights Expanded customer relationships to an average of 84 million product members, generating year over year revenue growth of 30%. Growth Strongest year on record for new business development, with 17 new revenue agreements announced during 2024. 100% logo renewal rate for o
Slide 4: Evolent 2025 Value Creation Pillars
Evolent 2025 Value Creation Pillars Organic Revenue Growth: Targeting 15-18% growth over 2024 Adjusted Revenue1, which accounts for one-time revenue impact of ($765M) from: (1) conversion of one PS oncology contract to tech and services, and (2) expected change to net revenue recognition for two a
Slide 5: Update On Performance Suite With Contractual Changes
Update On Performance Suite With Contractual Changes November Goals: Additional Goal: Drive $100M+ in Earnings Improvement Across 3 Narrow Scope for Solutions Outside of Core Contracts; Evolve Risk Model Oncology and Cardiology; Simplify Reporting Rate Corridor Anticipate Switch Bottom Line Corridor
Slide 6: Projection for 2025 Oncology Cost Growth Exceeds Q4 2024 and Comparable Historical Experience
Projection for 2025 Oncology Cost Growth Exceeds Q4 2024 and Comparable Historical Experience Annual Growth in Per Member Oncology Expenses 12% 11% 8% Estimated Q4 2024 Growth Rate Excluding Typical Historical Experience Assumption at Midpoint of 2025 Adjusted Redeterminations EBITDA Guidance Note:
Slide 7: Introducing 2025 Financial Outlook
Introducing 2025 Financial Outlook 1 2025 Full Year Low End High End $2.06 billion $2.11 billion Revenue (15% y/y growth (18% y/y growth above 2024 Adjusted Revenue2) above 2024 Adjusted Revenue2) Adjusted EBITDA2 $135 million $165 million Cash deployed to capitalized $35 million $35 million softwar
Slide 8: Bridging to 2025 Revenue Outlook
Bridging to 2025 Revenue Outlook Revenue ($MM) $2,555 $420 $2,085 $1,790 ($765) ($125) 2024 Revenue One-Time 2024 Adjusted One-Time Growth to Mid- 2025 Mid-Point Actual Contractual Revenue1 Membership Point of Guidance Revenue Outlook Changes Headwinds Guidance contemplates 15%-18% growth over 2024
Slide 9: Bridging to 2025 Adjusted EBITDA Outlook
Bridging to 2025 Adjusted EBITDA Outlook 1 Adjusted EBITDA2 ($MM) $115 ($10) ($20) $150 ($25) $25 $90 ($25) Q4 2024 Estimated Expected Impact 2025 Time- Estimated Estimated Impact Core Organic 2025 Adjusted Annualized3 Annualized of Performance Bound Platform Membership of 12% Oncology Growth EBITDA
Slide 10: Supplemental Information and Appendices
Supplemental Information and Appendices 10 Confidential – Do Not Distribute
Slide 11: Non-GAAP Financial Measures
Non-GAAP Financial Measures In addition to disclosing financial results that are determined in accordance with GAAP, we present and discuss certain non-GAAP financial measures, as supplemental measures to help investors evaluate our fundamental operational performance. Net Debt is defined as the car
Slide 12: Non-GAAP Financial Measures (continued)
Non-GAAP Financial Measures (continued) The Company views the following activities as integral to understanding its non-GAAP financial measures: Repositioning costs include but are not limited to severance, termination benefits and related payroll taxes, dedicated employee costs, and third-party pro
Slide 13: How We Calculate Volume and Revenue Metrics: PMPM, Lives and Cases
How We Calculate Volume and Revenue Metrics: PMPM, Lives and Cases • Performance Suite: consists of the average monthly membership over the period for the Company’s risk-based solutions for oncology, cardiology and Evolent Care Partners. • Specialty Technology and Services Suite consists of the aver
Slide 14: Year-Over-Year Metrics
Year-Over-Year Metrics Q4 2024 Q4 2023 Y/Y Growth % Income Statement (In thousands) Total Revenue $ 646,542 $ 556,055 16.3% Adjusted EBITDA1 22,612 48,055 (52.9)% Adjusted EBITDA Margin %1 3.5% 8.6% Balance Sheet / Cash Flow (In thousands) Change in Available Cash from prior quarter 2 6,889 19,451 I
Slide 15: Volume and Pricing Metrics
Volume and Pricing Metrics Evolent Quarterly Business Drivers Average Lives on Platform/Cases (in thousands) Q4 2024 Q4 2023 Performance Suite 7,145 5,986 Specialty Technology and Services Suite 75,158 72,139 Administrative Services 1,203 1,815 Cases 16 15 Average Products Per Unique Member 2.1 2.0
Slide 16: Revenue by Line of Business and by Product Type
Revenue by Line of Business and by Product Type For the Three Months Ended December 31, (In thousands) 2024 2023 2024 2023 Medicaid $ 215,582 $ 197,442 33.3 % 35.5 % Medicare 251,762 234,318 38.9 % 42.1 % Commercial and Other 179,198 124,295 27.7 % 22.4 % Total $ 646,542 $ 556,055 100.0 % 100.0 % Pe
Slide 17: Appendix A – Adjusted EBITDA Reconciliation
Appendix A – Evolent Health, Inc. Adjusted EBITDA Reconciliation ($ in thousands) Q4 2024 Q4 2023 LTM Q4 2024 LTM Q4 2023 Net loss attributable to common shareholders of Evolent Health, Inc. $ (30,615) $ (41,395) $ (93,454) $ (142,260) Net loss margin (4.7)% (7.4)% (3.7)% (7.2)% Less: Interest incom
Slide 18: Appendix B – Net Debt to LTM Adjusted EBITDA
Appendix B – Net Debt to LTM Adjusted EBITDA ($ in thousands) 12/31/2024 12/31/2023 Short-term debt, net of discount $171,467 $0 Long-term debt, net of discount 490,520 597,049 Net discount and deferred financing costs 13,013 15,451 Principal amounts of long-term debt 1 675,000 612,500 Less: Cash, c
Slide 19: Appendix C – Adjusted Revenue
Appendix C – Adjusted Revenue ($ in thousands) Q4 2024 Q3 2024 Q2 2024 Q1 2024 2024 Revenue $646,542 $621,401 $647,145 $639,653 $2,554,741 Less: Impact of 2025 contractual changes1 192,453 159,200 213,467 199,653 764,773 Adjusted revenue $454,089 $462,201 $433,678 $440,000 $1,789,968 1. Represents 2
Slide 20: Appendix D – Reserve for Claims and Performance-Based Arrangements
Appendix D – Reserve for Claims and Performance - Based Arrangements YTD Q4 2024 YTD Q4 2023 Balance, beginning of period $404,048 $199,730 Incurred health care costs: Current year to date period 1,507,740 $928,013 Prior year to date period (24,757) (36,925) Total claims incurred 1,482,983 891,088 C