Revenue Performance - Revenue for Q3 2024 was $621.4 million, an increase of $110.4 million or 21.6% compared to Q3 2023[1] - Revenue for the three months ended September 30, 2024, was $621,401 thousand, a 21.6% increase from $511,015 thousand in the same period of 2023[25] - For Q4 2024, revenue is expected to be between $642.0 million and $667.0 million, with Adjusted EBITDA projected between $22.0 million and $37.0 million[12] - Full year 2024 revenue guidance is approximately $2.55 billion to $2.575 billion, with Adjusted EBITDA expected to be between $160.0 million and $175.0 million[13] Profitability and Loss - Net loss attributable to common shareholders was $(31.2) million, with a net loss margin of (5.0)%, an improvement from (6.5)% in Q3 2023[4] - The net loss attributable to common shareholders for the three months ended September 30, 2024, was $(31,231) thousand, compared to a net loss of $(33,196) thousand for the same period in 2023, reflecting an improvement[47] - The company reported a basic and diluted loss per common share of $(0.27) for the three months ended September 30, 2024, compared to $(0.30) in the same period of 2023[25] - Net loss before preferred dividends decreased to $38,821 thousand in September 2024 from $79,629 thousand in September 2023, representing a 51% improvement[28] - The company experienced a loss before income taxes of $(23,756) thousand for the three months ended September 30, 2024, an improvement from $(30,874) thousand in the same period of 2023[25] Adjusted EBITDA - Adjusted EBITDA for the quarter was $31.8 million, resulting in an Adjusted EBITDA margin of 5.1%, down from 9.5% in the same quarter last year[4] - The adjusted EBITDA for the three months ended September 30, 2024, was $31,801 thousand, with an adjusted EBITDA margin of 5.1%, down from $48,714 thousand and 9.5% in the prior year[47] - The company continues to expect average annual revenue growth in excess of 15% and average Adjusted EBITDA growth of 20% on a long-term basis[14] - Adjusted EBITDA margin is expected to provide further insight into operational performance compared to revenues over time, as management focuses on long-term operational costs[39] Operating Expenses - Total operating expenses for the three months ended September 30, 2024, were $637,669 thousand, compared to $528,953 thousand in the prior year, reflecting a 20.6% increase[25] - Adjusted cost of revenue for the three months ended September 30, 2024, was $539,591 thousand, up from $386,534 thousand in the same period of 2023, reflecting a 39% increase[44] - Total selling, general, and administrative expenses for the nine months ended September 30, 2024, were $215,349 thousand, down from $276,682 thousand in the same period of 2023[45] Cash and Liquidity - Cash and cash equivalents decreased to $96,583 thousand as of September 30, 2024, down from $192,825 thousand at the end of 2023[26] - Total current liabilities decreased to $523,683 thousand as of September 30, 2024, from $674,242 thousand at the end of 2023, indicating improved liquidity[26] - Cash and cash equivalents and restricted cash decreased to $127,851 thousand as of the end of September 2024 from $224,498 thousand at the end of September 2023, a decline of 43%[29] - Net cash provided by operating activities was $44,996 thousand for the nine months ended September 30, 2024, compared to $53,201 thousand for the same period in 2023[28] - The net cash used in investing activities was $43,002 thousand for the nine months ended September 30, 2024, compared to $409,492 thousand in the same period of 2023, showing a significant reduction[28] Contracts and Growth - Evolent announced six new contract agreements in Q3 2024, the highest number in the company's history, including a significant oncology Performance Suite agreement[6] - Evolent Health anticipates continued expansion and new partner additions, indicating a focus on growth despite current market dynamics[52] Risks and Challenges - The company faces risks related to the integration of acquisitions and maintaining profitability under performance-based contracts, which could impact future financial results[53] - The company faces risks related to the ability to contain health care costs and maintain adequate reserves for policy benefits[54] - There is a dependency on key personnel, impacting the ability to attract and retain talent[54] - The company has obligations to make material payments to pre-IPO investors for future tax benefits[54] - The company’s debt following the NIA acquisition raises concerns about meeting obligations[54] - There are potential volatility risks for the Class A common stock price, especially if a substantial number of shares are sold[54] - The company does not intend to pay cash dividends on its Class A common stock[54] - Risks related to legal proceedings and the safeguarding of confidential data may impact operations[54] - The company relies on third-party vendors for technology platform maintenance, which poses operational risks[54] - The conditional conversion features of the 2025 and 2029 Notes may adversely affect financial condition[54] - The company operates in a rapidly changing and competitive environment, with new risk factors emerging[55]

Core Insights - Evolent Health, Inc. reported a revenue of $621.4 million for the quarter ended September 30, 2024, representing an increase of $110.4 million or 21.6% compared to the same period in 2023 [1][4][7] - The company experienced a net loss attributable to common shareholders of $(31.2) million, with a net loss margin of (5.0)%, an improvement from (6.5)% in the previous year [1][4][7] - Adjusted EBITDA for the quarter was $31.8 million, resulting in an Adjusted EBITDA margin of 5.1%, down from 9.5% in the same quarter of 2023 [1][4][7] - Evolent announced six new contract agreements during the quarter, marking the highest number of new agreements in a single quarter in the company's history [5][11] Financial Performance - Revenue for the quarter was $621.4 million, up from $511.0 million in the same quarter of 2023 [4][7] - Cost of revenue increased to $540.7 million from $386.6 million year-over-year [7][22] - Selling, general and administrative expenses decreased to $67.1 million from $96.6 million in the prior year [7][22] - Adjusted income attributable to common shareholders was $4.7 million, compared to $20.0 million in the same quarter of 2023 [8][41] Business Outlook - The company revised its outlook for Adjusted EBITDA for 2024, expecting it to be in the range of $160.0 million to $175.0 million for the full year [11][12] - Evolent continues to anticipate average annual revenue growth exceeding 15% and average Adjusted EBITDA growth of 20% on a long-term basis [12][11] - The company is taking aggressive actions to improve profitability, particularly in response to rising medical costs and losses in its Performance Suite [3][4] New Contracts and Market Position - The six new agreements include significant partnerships with major payers and health plans, indicating strong demand for Evolent's solutions in managing complex health conditions [5][11] - The company noted a $42 million increase in medical costs in the third quarter, attributed to new data and an industry-wide spike in oncology costs [3][4] - Evolent's diversified business is performing at or better than expectations, despite challenges in the Performance Suite [3][4]

The upcoming report from Evolent Health (EVH) is expected to reveal quarterly earnings of $0.30 per share, indicating no change from the year-ago quarter compared to the year-ago period. Analysts forecast revenues of $625.58 million, representing an increase of 22.4% year over year.Over the last 30 days, there has been a downward revision of 2.4% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial fore ...

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Evolent Health (EVH) . This company, which is in the Zacks Internet - Software industry, shows potential for another earnings beat.This health care software and consulting services provider has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the la ...

Core Viewpoint - The market anticipates Evolent Health (EVH) to report flat earnings of $0.30 per share for the quarter ended September 2024, with revenues expected to rise by 22.4% to $625.58 million compared to the previous year [1][3]. Earnings Expectations - The upcoming earnings report is scheduled for November 7, and the stock may experience upward movement if actual results exceed expectations, while a miss could lead to a decline [2]. - The consensus EPS estimate has been revised down by 2.4% over the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows a positive Earnings ESP of +13.33% for Evolent Health, suggesting analysts have recently become more optimistic about the company's earnings prospects [10]. - Despite the positive Earnings ESP, the stock holds a Zacks Rank of 4, complicating predictions of an earnings beat [10]. Historical Performance - Evolent Health has a history of beating consensus EPS estimates, having surpassed expectations in the last four quarters, including a +42.86% surprise in the most recent quarter [11][12]. Industry Comparison - Clarivate PLC (CLVT), another player in the Zacks Internet - Software industry, is expected to report earnings of $0.19 per share, reflecting a year-over-year decline of 9.5% [16]. - Clarivate's consensus EPS estimate has been revised down by 1.1%, but a higher Most Accurate Estimate results in a positive Earnings ESP of 2.15%, indicating a likely earnings beat [17].

Company to Participate in Upcoming Conferences WASHINGTON, Oct. 11, 2024 /PRNewswire/ -- Evolent Health, Inc. (NYSE: EVH), a company that specializes in better health outcomes for people with complex conditions through proven solutions that make health care simpler and more affordable, today announced it will release its third quarter 2024 financial results on Thursday, November 7, 2024, after market close, with a conference call to follow at 5 p.m. ET. Shareholders and interested participants may listen to ...

Investment Thesis - Evolent Health (EVH) is rumored to be taken private with a bid valuing the company at approximately $3.8 billion [2] - The current bid implies a valuation of 21x forward free cash flow to enterprise value, suggesting a potential 15% upside to the stock price at $32 per share [2] - The company may still be undervalued, and further bids could emerge in the coming days [2] Evolent's Business Model - Evolent Health provides healthcare services and technology solutions aimed at improving care quality and reducing costs for patients with complex conditions [3] - The company partners with health plans to manage care in expensive treatment areas like oncology and cardiology [3] - Evolent uses data-driven strategies and advanced payment models to optimize healthcare costs, creating value for customers such as insurance companies [3] Revenue Growth and Earnings - Evolent's revenue growth rates are expected to decelerate substantially in the second half of 2024 [4] - The company has a history of modest earnings surprises, with recent surprises ranging from -1.52% to 6.80% [6] - Despite a slight improvement in revenue growth rates in early 2024, the market has been skeptical of Evolent's prospects prior to acquisition rumors [6] Valuation and Financial Outlook - Evolent could be acquired for $3.8 billion, with Elevance Health (ELV) being a potential bidder [8] - The company is targeting $220 million in free cash flow by the end of 2024 and a $300 million exit run rate by year-end [8][10] - Evolent's enterprise value is estimated at $4.5 billion, factoring in $200 million in preferred shares, $600 million in debt, and $100 million in cash and marketable securities [11] - A higher bid of $4.3 billion for equity could push the enterprise value to $5 billion, representing a 23x forward free cash flow multiple [11] Market Reaction and Stock Performance - Prior to acquisition rumors, Evolent's stock was down approximately 15% year-to-date [12] - The stock saw a decline from earlier highs despite Q2 2024 earnings results, but acquisition rumors have sparked renewed investor interest [7] - If acquisition talks fall through, the stock could drop, but the company remains undervalued at 18x to 20x forward free cash flow [14] Potential Upside - A takeover bid could drive Evolent's shares up by an additional 15% in the coming weeks [14] - The combination of a solid business model and the possibility of a lucrative buyout makes Evolent a compelling investment opportunity [14]

For the quarter ended June 2024, Evolent Health (EVH) reported revenue of $647.15 million, up 37.9% over the same period last year. EPS came in at $0.30, compared to $0.14 in the year-ago quarter. The reported revenue represents a surprise of +2.04% over the Zacks Consensus Estimate of $634.18 million. With the consensus EPS estimate being $0.21, the EPS surprise was +42.86%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Stre ...

Financial Data and Key Metrics Changes - Evolent reported Q2 2024 revenue of $647.1 million, representing a year-over-year growth of 37.9%, all driven organically [11] - Adjusted EBITDA for the quarter was $52 million, slightly lower than the midpoint of expectations [12] - The company ended the quarter with a cash position of $101 million after an outflow of $89 million for the earn-out to the former owner of NIA [12] Business Line Data and Key Metrics Changes - Specialty Technology and Services revenue was $81.5 million, down $7.5 million sequentially due to Medicaid redetermination and lower one-time quarterly revenue compared to Q1 2024 [23] - Evolent secured four new revenue agreements in Q2, adding over $70 million in new annualized revenue bookings across Performance Suite and Technology and Services [10][12] Market Data and Key Metrics Changes - The company averaged 39.9 million unique members in Q2, with an average of two products deployed per unique member, totaling 79.9 million product members [11] - Medicaid membership declines were approximately 15%, consistent with expectations due to redeterminations [26] Company Strategy and Development Direction - Evolent is focused on enhancing its clinical value proposition and expanding profitability through disciplined capital allocation and operational efficiencies [18][21] - The company aims to achieve a $300 million adjusted EBITDA exit run rate by the end of 2024, with confidence in reaching this target despite current utilization trends [6][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in capturing approximately $60 million in additional revenue on an annualized basis from new rates aligned with partners [7] - The company anticipates that the majority of economic benefits from rate increases will begin in Q3 2024 [7] - Management noted that the impact of Medicaid redeterminations has been largely captured in revenue and earnings through Q2, indicating a positive outlook moving forward [9] Other Important Information - Evolent completed the acquisition of Machinify Technology, which is expected to enhance operational efficiencies and expand product offerings [19][20] - The company is targeting up to $50 million in annualized EBITDA improvement from the Machinify solution in the coming years [21] Q&A Session Summary Question: Visibility on rate increases and mechanisms for future adjustments - Management confirmed alignment with partners on rate increases, with about 60% of the $35 million expected to be formalized soon [38][39] Question: Decision to exit certain markets and revenue impact - The decision was made collaboratively with a payer to narrow the scope due to elevated prevalence and acuity, with no expected impact on adjusted EBITDA [40] Question: Margin maturation for the Performance Suite - Management indicated that the margin maturation includes both initial actuarial conservatism and driving underlying clinical value, with expectations for continued improvement [42][43] Question: Timing of Medicare shared savings and rate increases - Management expects to see a revenue true-up from the Medicare shared savings program in Q3, which is incorporated into guidance [44][45] Question: Cost trends and leading indicators - Management noted that while leading indicators have improved, costs remained elevated, only partially covered by rate increases [51] Question: Automatic triggers in risk-based contracts - Management stated that some contracts have negotiated provisions for automatic rate adjustments, while others require broader discussions [53][54] Question: Machinify technology rollout - The Machinify platform is live and in demand, with significant interest from payers for managing long-tail specialties [67][68]

Evolent Health (EVH) came out with quarterly earnings of $0.30 per share, beating the Zacks Consensus Estimate of $0.21 per share. This compares to earnings of $0.14 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 42.86%. A quarter ago, it was expected that this health care software and consulting services provider would post earnings of $0.21 per share when it actually produced earnings of $0.34, delivering a surprise of 61. ...