Former CFO of CVS Health, Aetna and Coventry Health Care brings deep experience driving growth and profitability. Mr. Guertin's nomination represents continuation of Evolent's board refreshment efforts. WASHINGTON, April 22, 2025 /PRNewswire/ -- Evolent Health, Inc. (NYSE: EVH) ("Evolent"), a company focused on achieving better health outcomes for people with complex conditions, today announced that a new director nominee will stand for election to the Board of Directors at the annual meeting of stockhold ...

Program aims to achieve the best possible treatment outcomes — longer lives with fewer side-effects — without excess financial strain. Collegial provider engagement model brings together education, technology and incentives to encourage top-quality regimens. One low-value regimen costs about 70 times more than a clinically equivalent alternative.WASHINGTON, April 15, 2025 /PRNewswire/ -- When treating patients with cancer, oncologists typically can choose from multiple FDA-approved regimens, or combinati ...

Core Points - Evolent Health, Inc. will release its first quarter 2025 financial results on May 8, 2025, after market close, followed by a conference call at 5 p.m. ET [1] - The company will participate in several upcoming investor conferences, including the Needham 20th Annual Technology, Media and Consumer Conference on May 12, 2025, and the RBC Global Health Care Conference on May 21, 2025 [6] Company Overview - Evolent specializes in improving health outcomes for individuals with complex conditions through solutions that simplify and make healthcare more affordable [4] - The company serves a national base of leading payers and providers and is recognized as a top workplace in the healthcare sector [4]

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 actions, trends in our businesses, prospective services, new partner additions/expansions, our business outlook and future performance or financial results, and the closing of pending transactions and the outcome of contingencies, such ...

Financial Data and Key Metrics Changes - The company reported Q4 2024 revenue of $646.5 million, with a year-over-year growth of 30% compared to 2023 [8][33] - Adjusted EBITDA for Q4 was $160.5 million, which was at the low end of the guidance range due to elevated oncology expenses [8][34] - The company ended 2024 with cash and equivalents of $104 million, with cash used in operations amounting to $26.2 million [34][36] Business Line Data and Key Metrics Changes - The Performance Suite margin was reported at 3%, significantly impacted by a negative 7% in the oncology segment [34][46] - The technology and services business maintained steady state margins at 11.9% [34] - The company achieved a 100% logo renewal rate for its top customers in 2024, representing over 90% of revenue [14] Market Data and Key Metrics Changes - The company anticipates organic growth of 15% to 18% for 2025, adjusted for one-time contract conversions [9][37] - The oncology cost trend is projected to increase by 12% in 2025, which is a conservative estimate based on historical data [18][45] - The company expects to cover an additional 1.9 million tech and services product members in 2025 [11] Company Strategy and Development Direction - The company aims to grow its business organically at a rate of 15% or better off the adjusted 2024 revenue baseline [53] - Plans to expand margins through automation and efficiency, targeting a 20% annual growth in adjusted EBITDA [53] - The company is focused on maintaining a diversified business model, balancing between Medicare, Medicaid, and commercial lines [121] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2025 guidance, citing improvements in contract negotiations and a strong sales pipeline [58][60] - The company believes it is well-positioned to address the growing need for condition management in complex diseases like cancer and cardiovascular conditions [23][26] - Management acknowledged the challenges faced in 2024 but emphasized the importance of reestablishing trust and credibility with stakeholders [55] Other Important Information - The company has integrated new automation technologies, expecting to achieve over $20 million in annualized cost improvements by the end of 2025 [19] - A contract extension with Centene was highlighted, which includes adjustments aimed at enhancing patient and physician-friendly automation initiatives [15][127] Q&A Session Summary Question: Confidence in 2025 guidance - Management confirmed that confidence stems from oncology trends and changes made to the Performance Suite [58][60] Question: Oncology trend impact on EBITDA - Management provided insights on how a 2% change in oncology trend could significantly impact adjusted EBITDA [62] Question: Cardiology trends - Management indicated that cardiology trends are expected to be modestly above 2024 levels, with a conservative approach being taken [75] Question: Factors affecting EBITDA guidance - Management noted that the greatest downside risk comes from unexpected medical cost inflation [82] Question: Performance Suite profitability - Management clarified that the profitability curve for Performance Suite contracts remained consistent, with some contracts still underwater [132] Question: Pricing increases expectations - Management stated that while a 12% oncology trend is projected for 2025, it is not expected to be the new normal [140]

Core Insights - Evolent Health reported revenue of $646.54 million for the quarter ended December 2024, reflecting a year-over-year increase of 16.3% but falling short of the Zacks Consensus Estimate by 1.48% [1] - The company's EPS was -$0.02, a decline from $0.23 in the same quarter last year, with no surprise against the consensus EPS estimate of -$0.02 [1] Financial Performance Metrics - Evolent Health's shares have returned +5.2% over the past month, outperforming the Zacks S&P 500 composite's +2.6% change, and currently holds a Zacks Rank 3 (Hold) [3] - Average PMPM Fees / Revenue per Case for the Performance Suite was $21.32, slightly below the estimated $21.81 [4] - Average PMPM Fees / Revenue per Case for the Specialty Technology and Services Suite matched the estimate at $0.37 [4] - Average PMPM Fees / Revenue per Case for Administrative Services was $16.43, exceeding the estimate of $15.44 [4] - Average Lives on Platform for Cases was 16 thousand, surpassing the estimate of 14.27 thousand [4] - Average Lives on Platform for the Performance Suite was 7.15 million, slightly below the estimate of 7.19 million [4] - Average Lives on Platform for the Specialty Technology and Services Suite was 75.16 million, compared to the estimate of 75.59 million [4] - Average Lives on Platform for Administrative Services was 1.2 million, below the estimate of 1.27 million [4] - Average PMPM Fees / Revenue per Case for Cases was $3,073, exceeding the average estimate of $2,976.69 [4]

Core Insights - Evolent Health reported a quarterly loss of $0.02 per share, aligning with the Zacks Consensus Estimate, compared to earnings of $0.23 per share a year ago [1] - The company posted revenues of $646.54 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 1.48%, but showing an increase from $556.06 million year-over-year [2] - Evolent Health shares have declined approximately 6.5% since the beginning of the year, contrasting with the S&P 500's gain of 4.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.11 on revenues of $634.34 million, and for the current fiscal year, it is $0.57 on revenues of $2.52 billion [7] - The estimate revisions trend for Evolent Health is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Internet - Software industry, to which Evolent Health belongs, is currently in the top 34% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Acquisitions and Growth Strategy - Evolent Health, Inc. acquired Vital Decisions in October 2021, IPG in August 2022, and NIA in January 2023, enhancing its service offerings in advance care planning and surgical management solutions[13] - Evolent aims to expand its market presence and capture new opportunities, although competition and industry consolidation pose challenges[19] - Evolent Health's ability to attract and retain key personnel is critical for its operational success and growth strategy[19] Business Model and Revenue Dependence - The company operates under a value-based care model, focusing on high-quality and cost-effective care, which aims to reduce preventable hospital admissions and emergency visits[18] - Evolent's revenue is significantly dependent on its largest partners, with potential risks associated with the loss or renegotiation of contracts[19] - The company has entered into an increasing number of risk-sharing arrangements, which may impact revenue predictability and exposure under performance-based contracts[19] Operational Challenges and Risks - The company faces risks related to managing growth and maintaining an efficient cost structure amid ongoing operational challenges[19] - Evolent Health's financial performance may be affected by regulatory changes, data privacy laws, and the evolving healthcare landscape[19] - The company is subject to various risks, including data security, compliance with privacy laws, and potential liabilities related to safeguarding confidential data[20] Reputation and Brand Management - The company emphasizes the importance of maintaining and enhancing its reputation and brand recognition in a competitive environment[19] - Evolent Health's financial performance may be affected by regulatory changes, including governmental funding reductions and policy shifts[19] - The company faces risks related to managing growth and maintaining an efficient cost structure while pursuing new product and service innovations[19]

Financial Performance - Revenue for Q4 2024 was $646.5 million, representing a 16.3% increase compared to Q4 2023, while total revenue for the year reached $2,554.7 million, reflecting a 30.1% growth year-over-year[3] - Net loss attributable to common shareholders for Q4 2024 was $30.6 million, with a net loss margin of (4.7)%, and for the full year, the net loss was $93.5 million, resulting in a net loss margin of (3.7)%[3] - Adjusted EBITDA for Q4 2024 was $22.6 million, with an adjusted EBITDA margin of 3.5%, and for the full year, adjusted EBITDA totaled $160.5 million, yielding a margin of 6.3%[3] - Operating loss for Q4 2024 was $18.60 million, a slight improvement from a loss of $21.35 million in Q4 2023[25] - The company reported a net cash provided by operating activities of $18.77 million for the year ended December 31, 2024, down from $142.58 million in 2023[29] - Adjusted EBITDA for Q4 2024 was $22.6 million, down from $48.1 million in Q4 2023, resulting in an Adjusted EBITDA margin of 3.5% compared to 8.6% in the previous year[46] - Adjusted income attributable to common shareholders for the year 2024 was $47.4 million, compared to $53.7 million in 2023, with an adjusted income per share of $0.41 versus $0.48[48] Revenue Guidance and Projections - For Q1 2025, revenue is projected to be between $440 million and $470 million, with adjusted EBITDA expected in the range of $31 million to $37 million[10] - Full year 2025 revenue guidance is approximately $2.06 billion to $2.11 billion, indicating a projected annual growth of 15%-18% after adjusting for one-time contract changes[11] Cost and Investment - The company plans to invest approximately $35 million in cash for capitalized software development during 2025[12] - Total liabilities decreased to $1.35 billion in 2024 from $1.43 billion in 2023[27] - The total cost of revenue for the year ended December 31, 2024, was $2.19 billion, compared to $1.50 billion in 2023, indicating a significant increase in operational scale[43] Partner Relationships and Market Strategy - The company achieved 100% partner contract retention across its top customers, which collectively accounted for over 90% of 2024 revenue[3] - Evolent signed contract amendments in all three Performance Suite negotiations, expected to generate an annual improvement of $115 million in net income and adjusted EBITDA for 2025 compared to Q4 2024[3] - The company emphasizes the importance of attracting new partners and capturing new opportunities to drive growth[52] Risks and Challenges - The company derives a significant portion of its revenue from major partners, with potential risks related to the loss or renegotiation of these relationships[52] - Future performance is subject to uncertainties, including governmental funding reductions and policy changes affecting partner success[52] - There are risks associated with managing growth and maintaining an efficient cost structure amid competitive pressures[52] - The company faces challenges related to data security and privacy, which could impact its reputation and operational effectiveness[53] - The ability to achieve profitability in the future remains uncertain, influenced by various financial obligations and market conditions[53] - The impact of inflationary pressures and rising consumer costs is a concern for the company's business operations[56] - The company is subject to risks from litigation proceedings and government inquiries, which could affect its financial performance[56] Cash and Assets - Total cash and cash equivalents as of December 31, 2024, were $104.2 million[6] - Cash and cash equivalents decreased to $104.20 million as of December 31, 2024, down from $192.83 million in 2023[27] - Total assets decreased to $2.54 billion in 2024 from $2.68 billion in 2023[27] Stock and Dividends - The company does not intend to pay cash dividends on its Class A common stock, which may affect investor returns[56]

Core Insights - Evolent Health, Inc. reported financial results for Q4 and the full year 2024, achieving revenue growth of 16.3% for the quarter and 30.1% for the year compared to 2023 [3][5] - The company maintained a 100% retention rate among its top customers, which account for over 90% of its 2024 revenue [2][3] - Adjusted EBITDA for Q4 was $22.6 million, with an adjusted EBITDA margin of 3.5%, while for the full year, adjusted EBITDA was $160.5 million with a margin of 6.3% [3][6] Financial Performance - Revenue for Q4 2024 was $646.5 million, and for the full year, it was $2.5547 billion [3][5] - The net loss attributable to common shareholders for Q4 was $30.6 million, resulting in a net loss margin of (4.7)%, while the full year net loss was $93.5 million with a margin of (3.7)% [3][5] - Adjusted income (loss) attributable to common shareholders for Q4 was $(2.5) million, and for the full year, it was $47.4 million [6][31] Business Outlook - For Q1 2025, the company expects revenue between $440 million and $470 million, and adjusted EBITDA between $31 million and $37 million [10] - For the full year 2025, revenue is projected to be approximately $2.06 billion to $2.11 billion, indicating a 15%-18% annual growth rate after adjusting for one-time contract changes [11] - The company anticipates an annual improvement of $115 million in net income and adjusted EBITDA due to recent contract amendments [3][11] Operational Metrics - Average lives on the Performance Suite platform increased to 7,145, while the Specialty Technology and Services Suite saw an increase to 75,161 [3][5] - The average PMPM fee for the Performance Suite was $21.32, and for the Specialty Technology and Services Suite, it was $0.37 [3][5] - The company added a primary care practice in the mid-Atlantic region to its Complex Care business, expanding its service offerings [8]