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]

Core Viewpoint - Evolent Health, Inc. is enhancing its Board of Directors as part of its commitment to strong corporate governance and collaboration with shareholders, with Rick Jelinek set to become Chair and Brendan Springstubb appointed as a new independent director [1][2][3]. Board Changes - Rick Jelinek will be named Chair of the Board at the 2025 Annual Meeting, succeeding Cheryl Scott, who has served since 2022 [2][5]. - Brendan Springstubb joins the Board as an independent director, bringing over 20 years of experience in investing in healthcare companies and expertise in strategy and investor communications [3][6]. Board Refreshment Efforts - The Board plans to refresh an independent director seat before the 2025 Annual Meeting, continuing a search process overseen by the Nominating and Governance Committee [4]. - Evolent has added five new independent directors to its Board in the past three years, reflecting ongoing efforts to enhance governance [4]. Leadership Insights - Cheryl Scott emphasized that the rotation of the Chair role and continued Board refreshment align with best practices in corporate governance [5]. - Glenn W. Welling, a significant shareholder, expressed confidence in Springstubb's ability to advocate for shareholders and highlighted Evolent's strong competitive position [5]. - CEO Seth Blackley noted the importance of the Board's skills and experience in creating value for stakeholders [5].

Core Points - Evolent Health, Inc. will release its fourth quarter 2024 financial results on February 20, 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 Cowen 45th Annual Health Care Conference on March 4, 2025, the Oppenheimer 35th Annual Health Care MedTech and Services Conference on March 17, 2025, and the KeyBanc Annual Health Care Forum on March 19, 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]

Longtime CMO Dr. Andrew Hertler to serve as senior advisor and CMO emeritus. WASHINGTON, Dec. 18, 2024 /PRNewswire/ -- Evolent Health, Inc. (NYSE: EVH), a company focused on achieving better health outcomes for people with complex conditions, announced the appointment of Dr. Von Nguyen as Chief Medical Officer, effective January 1, 2025. Dr. Nguyen joined Evolent as Chief Clinical Officer in July 2024 after serving as clinical lead for population health at Google. Among other previous roles, he has been Chi ...

Lately, I’ve found myself in the peculiar role of covering stocks that have seen meteoric gains—those big, showy 100%-plus jumpers that have been on a tear, like IonQ ( IONQ ) and Applied Optoelectronics (The mission of Grassroots Trading rests on the following principles: providing objective, unbiased, and balanced research, backed by solid data and completely void of emotional influences or preference for companies; focusing on small- to mid-cap companies, offering the Seeking Alpha investor compelling po ...

evolent 1 Confidential – Do Not Distribute Evolent Health, Inc. Third Quarter 2024 Results November 7, 2024 CONTACT: Seth R. Frank Evolent Investor Relations sfrank@evolent.com 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"). A forward-looking statement is a statement that is not a historical fact and, without limitation, inclu ...

Core Insights - Evolent Health reported $621.4 million in revenue for Q3 2024, a year-over-year increase of 21.6%, but fell short of the Zacks Consensus Estimate of $625.58 million by -0.67% [1] - The company’s EPS for the quarter was $0.04, a significant decline from $0.30 a year ago, resulting in an EPS surprise of -86.67% compared to the consensus estimate of $0.30 [1] Revenue and Earnings Performance - Total revenue by product type for the Performance Suite was $435.10 million, compared to an estimate of $441.93 million, reflecting a year-over-year increase of +34.4% [3] - Total revenue for Cases was $41.43 million, below the estimated $43.18 million, with a year-over-year increase of +10.9% [3] - Administrative Services generated $59.40 million, slightly above the estimate of $58.87 million, but showed a year-over-year decline of -13.6% [3] - Specialty Technology and Services Suite revenue was $85.47 million, exceeding the estimate of $81.94 million, with a year-over-year increase of +5.2% [3] Key Metrics Analysis - Average PMPM Fees for the Performance Suite were $20.97, below the estimate of $21.43 [3] - Average Lives on Platform for Cases was 13 thousand, lower than the estimated 15.1 thousand [3] - Average PMPM Fees for Cases was $3,113, significantly higher than the estimated $2,859.51 [3] - Average Lives on Platform for Administrative Services was 1.26 million, slightly below the estimate of 1.27 million [3] Stock Performance - Evolent Health shares have returned -8.3% over the past month, contrasting with the Zacks S&P 500 composite's +4.9% change [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [4]