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]

Core Insights - Evolent Health reported a revenue of $647.15 million for the quarter ended June 2024, marking a 37.9% increase year-over-year and exceeding the Zacks Consensus Estimate by 2.04% [1] - The company's EPS was $0.30, up from $0.14 in the same quarter last year, resulting in a surprise of 42.86% over the consensus estimate of $0.21 [1] Financial Performance Metrics - Average PMPM Fees / Revenue per Case - Performance Suite: $22.30, surpassing the average estimate of $21.16 [3] - Average PMPM Fees / Revenue per Case - Specialty Technology and Services Suite: $0.38, matching the average estimate [3] - Average PMPM Fees / Revenue per Case - Administrative Services: $15.97, exceeding the average estimate of $14.93 [3] Additional Performance Metrics - Average PMPM Fees / Revenue per Case - Cases: $2,849, above the average estimate of $2,758.50 [4] - Average Lives on Platform / Cases - Performance Suite: 6.9 million, below the average estimate of 7.11 million [4] - Average Lives on Platform / Cases - Specialty Technology and Services Suite: 71.7 million, below the average estimate of 72.78 million [4] - Average Lives on Platform / Cases - Administrative Services: 1.27 million, slightly above the average estimate of 1.24 million [4] Revenue Breakdown by Product Type - Total Revenue by product type - Performance Suite: $461.60 million, exceeding the average estimate of $451.34 million [6] - Total Revenue by product type - Cases: $43.26 million, above the average estimate of $42.74 million [6] - Total Revenue by product type - Administrative Services: $60.77 million, surpassing the average estimate of $55.70 million [6] - Total Revenue by product type - Specialty Technology and Services Suite: $81.52 million, below the average estimate of $82.95 million [6] Stock Performance - Evolent Health shares have returned +6.4% over the past month, contrasting with the Zacks S&P 500 composite's -4.5% change [7] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [7]

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. ...

Revenue of $647.1 million, an increase of $178.0 million or 37.9%, from the three months ended June 30, 2023. Net loss attributable to common shareholders of Evolent Health, Inc. of $(6.4) million and a net loss margin of (1.0)%. Adjusted EBITDA of $52.0 million resulting in an Adjusted EBITDA margin of 8.0%. Narrows revenue outlook for full year 2024 and provides updated 2024 Adjusted EBITDA guidance. Reiterates confidence in achieving $300 million in Adjusted EBITDA run rate exiting 2024. WASHINGTON, Aug. ...

Evolent Health (EVH) shares soared 12.8% in the last trading session to close at $21.72. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 11.1% loss over the past four weeks. This health care software and consulting services provider is expected to post quarterly earnings of $0.21 per share in its upcoming report, which represents a year-over-year change of +50%. Revenues are expected to be $634.18 million, up 35.2% from the year- ...

Company to Participate in Upcoming Conferences Analysts interested in asking questions during the live call should dial 855.940.9467, or 412.317.6034 for international callers, and reference the "Evolent call" 15 minutes prior to the call. Additionally, The Company announced that its executive management team will participate in upcoming investor conferences. About Evolent Seth R. Frank Vice President, Investor Relations Evolent [email protected] 571-895-3919 (W) Shareholders and interested participants may ...

Machinify is a privately held company based in Palo Alto, California. Upon closing, Evolent will be acquiring certain assets and the exclusive license to the Machinify Auth platform. In addition, certain employees of Machinify will be re-badged as Evolent employees upon closing. Lastly, Machinify and Evolent expect to enter into a long-term services agreement at closing to support the development and integration of the platform with Evolent. The acquisition is immaterial to Evolent's revenue outlook and is ...

Evolent Health (EVH) reported $639.65 million in revenue for the quarter ended March 2024, representing a year-over-year increase of 49.6%. EPS of $0.34 for the same period compares to $0.21 a year ago.The reported revenue represents a surprise of +6.33% over the Zacks Consensus Estimate of $601.6 million. With the consensus EPS estimate being $0.21, the EPS surprise was +61.90%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall S ...