Lifestance Health Group, Inc. · NASDAQ:LFST
Lifestance Health — Q3 2023 Earnings Presentation
17 slides from Lifestance Health's earnings presentation, Nov 8, 2023
Slide 1: Reimagining Mental Health
Reimagining Mental Health Q 3 2 0 2 3 E a r n i n g s P re s e n t a t i o n • N o v e m b e r 8 , 2 0 2 3
Slide 2: Forward-Looking Statements
Forward-Looking Statements DISCLAIMERS Cautionary Note Regarding Forward-Looking Statements This presentation and related oral statements, including during any question and answer portion of the presentation, contain forward-looking statements about LifeStance Health Group, Inc. and its subsidiaries
Slide 3: LifeStance: Reimagining Mental Healthcare
LifeStance: Reimagining Mental Healthcare 6,418 Clinicians 18% Y/Y Growth OUR MISSION Increasing access to trusted, affordable, and personalized mental healthcare OUR VISION A truly healthy society where mental and physical healthcare are unified to make lives better $1,005M Revenue | TTM(1) 22% Y/Y
Slide 4: Q3 2023 Highlights
Q3 2023 Highlights • Q3 Revenue of $262.9 million increased 21% year-over-year • Total clinicians of 6,418, +18% Y/Y; 286 net clinician adds in Q3 • Q3 Center Margin of $76.2 million, or 29.0% as a percentage of revenue • Q3 Adjusted EBITDA of $14.6 million, or 5.6% as a percentage of revenue • Ende
Slide 5: Q3 2023 Results
Q3 2023 Results Clinicians Revenue (in $M) Center Margin (in $M) Adjusted EBITDA (in $M) +18% +21% +26% -5% 6,418 $262.9 $76.2 $15.4 $14.6 5,431 $217.6 $60.3 Q3'22 Q3'23 Q3'22 Q3'23 Q3'22 Q3'23 Q3'22 Q3'23 Center Margin (% of total revenue) Adj. EBITDA (% of total revenue) 27.7% 29.0% 7.1% 5.6% 5 No
Slide 6: Quarterly Trends
Quarterly Trends Clinicians Revenue (in $M) Center Margin (in $M) Adjusted EBITDA (in $M) $259.6 $262.9 $252.6 6,418 $15.4 $14.6 $229.4 $76.2 $14.1 $217.6 $73.0 $69.6 $10.2 $10.1 6,132 $62.7 $60.3 5,961 5,631 5,431 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q3'22 Q4'22 Q1'23 Q2'23 Q
Slide 7: Balance Sheet, Cash Flow, and Capital Allocation
Balance Sheet, Cash Flow, and Capital Allocation Balance Sheet & Cash Flow Capital Allocation $43M $248M Cash & Cash Equivalents Net Long-term Debt* De Novos Acquisitions ($34M) $29M Selective deployment No acquisitions in Q3 to enable clinician and market growth No further M&A anticipated in 2023 O
Slide 8: 2023 Guidance
2023 Guidance Planning Assumptions (All $ in M) FY 2023 Q4 2023 • Assumes no more than 36 de novo Revenue $1,030 – $1,040 $255 – $265 center openings (Narrowed from $1,010 - $1,040; midpoint raised) • Assumes M&A spend of ~$40M, inclusive of up to $20M in earnouts Center Margin $292 – $300 $73 – $81
Slide 9: Appendix
HEALTH Appendix
Slide 10: Statements of Operations and Comprehensive Loss
Quarterly Statements of Operations and Comprehensive Loss 2023 2022 ($M) Q3 Q2 Q1 Q4 Q3 Q2 Q1 Total revenue $262.9 $259.6 $252.6 $229.4 $217.6 $209.5 $203.1 Operating expenses Center costs, excluding depreciation and amortization 186.7 186.6 183.0 166.7 157.3 149.7 148.9 General and administrative e
Slide 11: GAAP to Non-GAAP Reconciliations – Center Margin
Quarterly GAAP to Non-GAAP Reconciliations – Center Margin 2023 2022 ($M) Q3 Q2 Q1 Q4 Q3 Q2 Q1 Loss from operations ($74.4) ($48.4) ($34.1) ($46.0) ($38.8) ($60.5) ($64.9) Adjusted for: Depreciation and amortization 19.6 19.5 19.1 18.9 17.9 16.7 15.7 General and administrative expenses (1) 130.9 101
Slide 12: GAAP to Non-GAAP Reconciliations – Adjusted EBITDA
Quarterly GAAP to Non-GAAP Reconciliations – Adjusted EBITDA 2023 2022 ($M) Q3 Q2 Q1 Q4 Q3 Q2 Q1 Net loss ($61.6) ($45.5) ($34.2) ($46.7) ($37.9) ($68.7) ($62.3) Adjusted for: Interest expense, net 5.5 5.1 5.1 5.2 4.2 7.1 3.4 Depreciation and amortization 19.6 19.5 19.1 18.9 17.9 16.7 15.7 Income ta
Slide 13: Non-GAAP Financial Metrics
Non-GAAP Financial Metrics 2023 2022 ($M) Q3 Q2 Q1 Q4 Q3 Q2 Q1 Key Metrics Clinicians 6,418 6,132 5,961 5,631 5,431 5,226 4,989 Total Revenue $262.9 $259.6 $252.6 $229.4 $217.6 $209.5 $203.1 Center costs, excluding depreciation and amortization 186.7 186.6 183.0 166.7 157.3 149.7 148.9 Center Margin
Slide 14: Balance Sheets
Quarterly Balance Sheets 2023 2022 ($M) Q3 Q2 Q1 Q4 Q3 Q2 Q1 Current assets Cash and cash equivalents 42.6 79.6 68.3 108.6 90.3 96.7 114.0 Patient accounts receivable, net 149.7 121.8 118.4 100.9 113.3 99.7 95.0 Prepaid expenses and other current assets 71.9 36.5 25.8 23.7 49.0 47.9 54.3 Total curre
Slide 15: Statements of Cash Flows
Statements of Cash Flows Nine Months Ended Six Months Ended Nine Months Ended Six Months Ended ($M) Q1’23 Q1’22 Q3’23 Q2’23 Q3’22 Q2’22 CASH FLOWS FROM OPERATING ACTIVITIES Net loss (141.3) ($79.7) ($34.2) (168.9) ($131.1) ($62.3) Adjustments to reconcile net loss to net cash (used in) provided by o
Slide 16: GAAP to Non-GAAP Reconciliations – Free Cash Flow (FCF)
Quarterly GAAP to Non-GAAP Reconciliations – Free Cash Flow (FCF) 2023 2022 ($M) Q3 Q2 Q1 Q4 Q3 Q2 Q1 Net cash (used in) provided by operating activities ($25.4) ($0.4) ($7.9) $36.0 $5.7 $7.8 $3.3 Purchases of property and equipment ($9.8) ($11.6) ($7.7) ($10.4) ($15.1) ($25.9) ($27.9) Free Cash Flo
Slide 17: Visits and Total Revenue Per Visit
Quarterly Visits and Total Revenue Per Visit 2023 2022 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Total Revenue ($M) $262.9 $259.6 $252.6 $229.4 $217.6 $209.5 $203.1 Total Visits (000s) 1,714 1,705 1,665 1,487 1,429 1,413 1,392 Total Revenue Per Visit (TRPV) $153.4 $152.3 $151.7 $154.3 $152.3 $148.3 $145.9 Amounts are un
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