Evolent Health, Inc · NYSE:EVH
Evolent Health — Investor Presentation (January 2018)
28 slides from Evolent Health's investor presentation, Jan 10, 2018
Slide 1: Evolent Health Overview January 2018
Evolent Health Overview January 2018
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements 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”). A forward-looking statement is a statement that is
Slide 3: 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 Adjusted EBITDA, Adjusted Revenue, Adjusted Transformation Revenue, Adjusted Platform and Operations Revenue, Adjusted Cost of Revenue, Adjusted Services Revenu
Slide 4: Presenters
Presenters Nicky McGraneChief Financial OfficerEvolent Health Frank WilliamsChief Executive Officer and Co-founderEvolent Health
Slide 5: Investment Highlights
Investment Highlights Established market leading position with 30+ partnerrelationships and 2.7M lives as of Sept. 30, 2017Highly differentiated offering through fully integrated clinical, administrative and technology platform Attractive business modelMultiple avenues of organic growthRecurring rev
Slide 6: Evolent Health: what we do
1) Non-GAAP measure, see “Non-GAAP Financial Measures” above for definition and the Appendix below for reconciliation to GAAP. GAAP revenues in 2013, 2014, 2015, 2016 and for LTM 30-Sep-17 were $25.7M, zero, $96.9M, 254.2M and $409.4M respectively. Evolent Health what we do Provide an integrated cli
Slide 7: Continued Strong Performance in 2017
*Non-GAAP measure; see “Non-GAAP Financial Measures” above for the definition and Appendix A for reconciliation to GAAP; GAAP revenues in Q3 2016 and Q3 2017 were $60.2M and $107.9M, respectively. Continued Strong Performance in 2017 2017 Highlights Launched MDwise 1/1/17, Passport HPS migration 10/
Slide 8: Mounting Cost Pressure as Health Care Spending Growth Remains Untenable
* Source: Congressional Budget Office, Long Term Budget Outlook, March 30, 2017. Mounting Cost Pressure as Health Care Spending Growth Remains Untenable PAYER RESPONSES TO COST PRESSURES: Radically Cut Rates Value-Based Care or Medicare, Medicaid, CHIP and other health programs Social Security Other
Slide 9: Large Market in Early Stages Across Multiple Segments
Large Market in Early Stages Across Multiple Segments MEDICAID COMMERCIAL MEDICARE CMS reducing FFS paymentsMACRA / MIPSDelegated ACO riskDramatic MA enrollment growth2 Increasing state budget pressureMovement to provider-driven managed MedicaidABD population unmanagedWaivers encouraging innovation
Slide 10: Provider Evolution Toward Risk
Provider Evolution Toward Risk Full Premium Risk Provider System Risk Exposure Population Health Capability Requirements P4P Partial Risk Full Risk Shared Savings Incremental $ Tied to Specific Activities Upside Based on Total Cost Upside and Downside Based on Total Cost
Slide 11: Supporting Partners with an Integrated Value-Based Platform
Supporting Partners with an Integrated Value-Based Platform PAY FOR PERFORMANCE PARTIAL RISK FULL RISK CLINICAL PLATFORM Care Management Predictive Modeling Patient Identification / Engagement Utilization Management ADMINISTRATIVE PLATFORM Health Plan Administration Risk Adjustment Pharmacy Benefit
Slide 12: Clinical and financial results for partners
1) Study period varies by partner analysis. Baseline period for clinical and utilization profile: 12 months prior to Complex Care case creation. Cases were excluded based on program length and closure status. Persons who declined participation were also excluded. Cases and controls were matched on d
Slide 13: Evolent is Active Across all Segments of the Growing Market
Sources: Evolent Health Evolent is Active Across all Segments of the Growing Market Lives by Segment as of 30-Sep-17 2.7M+Lives Supported 30+ Y Evolent Footprint Partners
Slide 14: Strong Recent Partner Additions
Strong Recent Partner Additions MEDICAID COMMERCIAL MEDICARE
Slide 15: Financial discussion
Financial discussion
Slide 16: Financial Highlights
Financial Highlights Strong Consistent GrowthLarge addressable marketGrowth through expansion in existing and new marketsRecurring Revenue Model with High VisibilityPer Member Per Month (PMPM) contracts Long-term service agreementsScalable ModelScalable platform leveraging existing infrastructureHig
Slide 17: Strong Topline Results
*Non-GAAP measure, see “Non-GAAP Financial Measures” above for the definition and Appendix A for reconciliation to GAAP. GAAP revenues in 2013, 2014, 2015, 2016 and for LTM 30-Sep-17 were $25.7M, zero, $96.9M, 254.2M and $409.4M respectively. **Lives on the platform as of 31-Dec-13, 31-Dec-14, 31-De
Slide 18: Delivering Bottom Line Performance
*Non-GAAP measure, see “Non-GAAP Financial Measures” above for definition and Appendix B for reconciliation to GAAP. Net income (loss) attributable to Evolent Health, Inc. for Q1-Q4 2015 was ($11.3 million), $359.9 million, ($12.0 million) and ($4.1 million). Net income (loss) attributable to Evolen
Slide 19: Capital Strategy
Capital Strategy STRATEGIC M&A GOALSEnhance capabilities / performanceImprove margins through scale and in-sourcing servicesCross-sell opportunityMarket leadership CO-INVESTMENT STRATEGY GOALSCatalyze attractive marketsImprove deal economics and longer-term arrangementsEnhance clinical and financial
Slide 20: Co-Investments with Partners
Co-Investments with Partners HIGHLY SELECTIVE OPPORTUNITIES…Catalyze attractive opportunitiesTarget large, attractive opportunities through combination of capabilities and capitalPartner Selection Key is to select motivated, high-performance partners, e.g., high-performing IPAs, Tier 1 providersExte
Slide 21: 2017 Performance and 2018 Outlook
2017 Performance and 2018 Outlook 2017 PerformanceAdded 6 new partners through Sept. 30, 2017Strong additions at certain existing partners, e.g., Passport / CountyCarePartner challenges in PSHP MA strategyAnticipate meeting or exceeding Q4 Adjusted Revenue and Adjusted EBITDA guidance2018 OutlookStr
Slide 22: Investment Highlights
Investment Highlights Established market leading position with 30+ partnerrelationships and 2.7M lives as of Sept. 30, 2017Highly differentiated offering through fully integrated clinical, administrative and technology platform Attractive business modelMultiple avenues of organic growthRecurring rev
Slide 23: Appendix
Appendix
Slide 24: Appendix A: Non-GAAP Reconciliation, Adjusted Results
For the quarters ended Sept 30, 2017 and 2016 and the last twelve months (LTM) ended Sept 30, 2017 and 2016: Appendix A: Non-GAAP Reconciliation Evolent Health, Inc. Adjusted Results (1) Adjustments to platform and operations revenue include deferred revenue purchase accounting adjustments of approx
Slide 25: Appendix A: Non-GAAP Reconciliation (continued)
For the years ended December 31, 2016, 2015, 2014, and 2013: Appendix A: Non-GAAP Reconciliation Evolent Health, Inc. Adjusted Results (continued) (4) We recorded deferred revenue adjustments of approximately $2.0 million to transformation revenue and platform and operations revenue during 2016, rel
Slide 26: Appendix B: Adjusted EBITDA Reconciliation
For Q1-Q4 of 2015 and 2016: Appendix B: Evolent Health, Inc. Adjusted EBITDA Reconciliation Adjusted EBITDA Reconciliation Adjusted EBITDA Reconciliation Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Net Income (Loss) Attributable to Evolent Health, Inc. $ (11.3) $ 359.9 $ (12.0) $
Slide 27: Appendix B: Adjusted EBITDA Reconciliation (continued)
For Q1, Q2 and Q3 2017: Appendix B: Evolent Health, Inc. Adjusted EBITDA Reconciliation (continued) (in millions) Q1 2017 Q2 2017 Q3 2017 Net Income (Loss) Attributable to Evolent Health, Inc. $ (18.0) $ (16.9) $ (12.6) Less: Interest income 0.2 0.2 0.4 Interest expense (1.0) (0.9) (0.9) (Provision)
Slide 28: Evolent Health contact
800 N Glebe Rd, Suite 500 • Arlington, VA 22203 • evolenthealth.com evolent HEALTH
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