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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]

Evolent Health (EVH) came out with quarterly earnings of $0.04 per share, missing the Zacks Consensus Estimate of $0.30 per share. This compares to earnings of $0.30 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -86.67%. 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 $0.30, delivering a surprise of 42. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _________________________ FORM 10-Q _________________________ Title of each class Trading Symbol(s) Name of each exchange on which registered Class A Common Stock of Evolent Health, Inc., par value $0.01 per shareEVH New York Stock Exchange (Mark One) S QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR ...

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 ...

Core Viewpoint - Evolent Health (EVH) is positioned well to potentially beat earnings estimates in its upcoming quarterly report, continuing a trend of strong performance in earnings surprises [1]. Earnings Performance - Evolent Health has a strong track record of beating earnings estimates, with an average surprise of 52.38% over the last two quarters [2]. - In the last reported quarter, Evolent Health achieved earnings of $0.30 per share, exceeding the Zacks Consensus Estimate of $0.21 per share, resulting in a surprise of 42.86% [3]. - In the previous quarter, the company was expected to earn $0.21 per share but delivered $0.34 per share, leading to a surprise of 61.90% [3]. Earnings Estimates and Predictions - Recent earnings estimates for Evolent Health have been revised upward, indicating positive sentiment among analysts [4]. - The Zacks Earnings ESP for Evolent Health is currently +13.33%, suggesting that analysts are optimistic about the company's earnings prospects [7]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) indicates a high likelihood of another earnings beat [7]. Statistical Insights - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [5]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [6].

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].