| --- | --- | |--------------------------------------------------------|-------| | | | | | | | | | | Evolent Health First Quarter 2022 Results May 4, 2022 | | | | | | 0 | | Safe Harbor Statement Certain statements made in this report 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 limit ...

Financial Data and Key Metrics Changes - Evolent Health reported total revenue of $297.1 million for Q1 2022, representing a 38% increase compared to Q1 2021 [5][19] - Adjusted EBITDA for Q1 2022 was $24.3 million, reflecting a 63% growth year-over-year, with an adjusted EBITDA margin expansion of 130 basis points to 8.2% [5][19] - The company exceeded its revenue outlook range for the quarter, which was $280 to $295 million, and delivered at the high end of its adjusted EBITDA outlook of $20 million to $25 million [5][19] Business Line Data and Key Metrics Changes - Revenue from Clinical Solutions increased by 46.1% to $190.2 million, driven by same-store sales and new client growth [19] - Evolent Health Services revenue grew by 25.9% to $106.9 million, supported by new client go-lives, including the addition of approximately 330,000 Bright HealthCare lives [21] - Membership in the Performance suite for Clinical Solutions was 1.5 million, with a PMPM fee of $38.07, up from $26.32 in the prior year [20] Market Data and Key Metrics Changes - The company ended the quarter covering 20.3 million lives across all platforms, a 74% increase from 11.6 million a year ago [6][18] - The growth was primarily driven by New Century Health and Evolent Care Partners, which together constitute the Clinical Solutions segment [6] - The PMPM fee for the Technology and Services suite decreased slightly to $0.38 from $0.43 in the prior year [21] Company Strategy and Development Direction - Evolent Health focuses on three core operating priorities: strong organic growth, expanding margins, and optimal capital allocation [8][14] - The company aims to drive innovation through internal development, accretive M&A, and strategic partnerships [26][39] - Evolent sees significant opportunities for growth in oncology, cardiology, and musculoskeletal services, responding to customer demand for expanded capabilities [41][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong revenue growth and margin expansion, driven by the Clinical Solutions segment [13][19] - The macro environment is viewed as a tailwind for growth, with increased urgency for health plans to drive quality care while lowering costs [12][18] - The company raised its revenue guidance for the year to a range of $1.16 to $1.21 billion and adjusted EBITDA to between $85 and $95 million [23] Other Important Information - Evolent Health's cash position at the end of the quarter was $210.2 million, with $156.3 million available after accounting for cash held in regulated accounts [22] - The company anticipates continued strong performance in the second quarter, with adjusted revenue forecasted at $290 million to $305 million [23] Q&A Session Summary Question: Can you discuss the Oncology Care Partners relationship and its financial relevance for 2022? - Management indicated that the relationship is part of their innovation strategy and is not expected to have a significant short-term financial impact [26][28] Question: What are the growth opportunities with existing clients? - Management highlighted the potential for upselling existing clients to the Performance suite, which could lead to significant revenue increases [33][34] Question: How do you view the impact of potential recession on your pipeline? - Management believes that the core dynamics of managing care will remain stable regardless of economic conditions, although they are monitoring the situation [75][72] Question: What is the expected impact of Medicaid redeterminations? - Management expects a slow ramp in membership rolling off due to redeterminations, with minimal impact on overall guidance [60][61] Question: Can you provide details on the performance fees recognized in the quarter? - Performance fees were recognized based on savings driven relative to benchmarks, contributing to the top-line beat [67][68]

Part I [Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited consolidated financial statements for Q1 2022 and Q1 2021, including balance sheets, income statements, and cash flows Consolidated Balance Sheet Summary (Unaudited) | Balance Sheet Items | March 31, 2022 ($ thousands) | December 31, 2021 ($ thousands) | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | 210,158 | 266,280 | | Accounts receivable, net | 179,270 | 130,604 | | Total current assets | 463,388 | 523,960 | | Goodwill | 426,274 | 426,297 | | **Total assets** | **1,339,149** | **1,419,458** | | **Liabilities & Equity** | | | | Total current liabilities | 382,465 | 445,493 | | Long-term debt, net | 282,598 | 215,676 | | Total liabilities | 727,940 | 725,825 | | Total shareholders' equity | 611,209 | 693,633 | | **Total liabilities and shareholders' equity** | **1,339,149** | **1,419,458** | Consolidated Statement of Operations Summary (Unaudited) | Income Statement Items | Three Months Ended Mar 31, 2022 ($ thousands) | Three Months Ended Mar 31, 2021 ($ thousands) | | :--- | :--- | :--- | | Revenue | 297,057 | 215,071 | | Total operating expenses | 299,855 | 231,016 | | Operating loss | (2,798) | (15,945) | | Net loss attributable to common shareholders | (5,350) | (9,807) | | Basic and diluted loss per share | (0.06) | (0.12) | Consolidated Statement of Cash Flows Summary (Unaudited) | Cash Flow Items | Three Months Ended Mar 31, 2022 ($ thousands) | Three Months Ended Mar 31, 2021 ($ thousands) | | :--- | :--- | :--- | | Net cash used in operating activities | (57,442) | (48,163) | | Net cash provided by investing activities | 16,766 | 45,951 | | Net cash used in financing activities | (51,376) | (55,584) | | Net decrease in cash and restricted cash | (92,156) | (57,795) | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes Q1 2022 financial performance, noting a **38.1% revenue increase** and narrowed operating loss, with sufficient liquidity - The company operates through two reportable segments: Evolent Health Services (EHS), providing administrative and clinical platforms, and Clinical Solutions, focusing on specialty care management and total cost of care improvement[208](index=208&type=chunk) - To date, the COVID-19 pandemic has not materially impacted the company's financial condition or results of operations, and its cash balance of **$210.2 million** as of March 31, 2022, is believed to be sufficient for liquidity needs over the next twelve months[210](index=210&type=chunk) - On October 1, 2021, the company acquired Vital Decisions, a provider of technology-enabled advance care planning services, for **$46.5 million** in cash and **1.8 million** shares of Class A common stock, integrated into the Clinical Solutions segment[219](index=219&type=chunk) - On March 31, 2021, the company completed the sale of its subsidiary True Health New Mexico to Bright HealthCare, with True Health's results now reported as discontinued operations[222](index=222&type=chunk) [Results of Operations](index=41&type=section&id=Results%20of%20Operations) Q1 2022 revenue grew **38.1%** to **$297.1 million**, driven by Clinical Solutions, with operating loss significantly improving Revenue by Segment (in thousands) | Segment | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Evolent Health Services | $106,858 | $84,838 | | Clinical Solutions | $190,199 | $130,233 | Lives on Platform (in thousands) and Average PMPM Fees | Metric | As of/For Q1 2022 | As of/For Q1 2021 | | :--- | :--- | :--- | | **Evolent Health Services** | | | | Lives on Platform | 2,079 | 1,982 | | Average PMPM Fee | $19.17 | $14.60 | | **Clinical Solutions** | | | | Performance Suite Lives | 1,495 | 1,405 | | Performance Suite PMPM | $38.07 | $26.32 | | Tech & Services Suite Lives | 16,721 | 8,246 | | Tech & Services Suite PMPM | $0.38 | $0.43 | - Cost of revenue increased by **$61.9 million (39.2%)**, primarily due to **$38.6 million** in higher claims activity in the Clinical Solutions segment, **$8.3 million** in higher personnel costs, and **$9.6 million** from accelerated amortization of contract costs[257](index=257&type=chunk) - Selling, general, and administrative (SG&A) expenses increased by only **$0.3 million (0.6%)**, as higher personnel costs (**$8.3 million**) and stock compensation (**$1.4 million**) were largely offset by lower professional fees (**$7.4 million**) from the Repositioning Plan and shareholder advisory services[258](index=258&type=chunk) [Liquidity and Capital Resources](index=47&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains **$210.2 million** in cash, with management affirming sufficient liquidity for the next twelve months despite Q1 operating cash outflow - The company had **$210.2 million** of cash and cash equivalents as of March 31, 2022[273](index=273&type=chunk) - Net cash used in operating activities was **$57.4 million** for Q1 2022, primarily due to the net loss, timing of customer and vendor payments, and changes in working capital balances[272](index=272&type=chunk)[277](index=277&type=chunk) - Net cash provided by investing activities was **$16.8 million**, mainly from a **$23.0 million** payment related to the transfer of membership (Passport), partially offset by **$8.5 million** in capital expenditures[279](index=279&type=chunk) - Net cash used in financing activities was **$51.4 million**, largely due to a **$34.4 million** decrease in working capital balances for partner claims processing and **$16.2 million** for taxes withheld on vested equity awards[281](index=281&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Market risk is minimal, primarily from fixed-rate convertible notes and immaterial foreign currency exposure to Indian Rupee operating expenses - The company's outstanding convertible notes of **$289.6 million** are fixed-rate instruments, thus not subject to fluctuations in interest rates[293](index=293&type=chunk) - Foreign currency risk is related to operating expenses denominated in Indian Rupee, but the impact is currently minimal, with a recognized loss of **$0.1 million** for the quarter[294](index=294&type=chunk) [Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) Management confirmed effective disclosure controls and procedures as of March 31, 2022, with no material changes to internal controls during the quarter - Management concluded that as of March 31, 2022, the company's disclosure controls and procedures were effective[296](index=296&type=chunk) - There were no changes in internal control over financial reporting during the quarter ended March 31, 2022, that have materially affected, or are reasonably likely to materially affect, internal controls[297](index=297&type=chunk) Part II [Legal Proceedings](index=52&type=section&id=Item%201.%20Legal%20Proceedings) The company faces shareholder class action and derivative lawsuits concerning alleged misstatements and board negligence related to Passport Health Plan - A shareholder class action lawsuit filed in August 2019 alleges the company made false or misleading statements regarding its business with Passport, currently in the discovery phase after a partial motion to dismiss ruling[135](index=135&type=chunk) - A shareholder derivative action was filed in June 2021 against board members, alleging negligence in oversight of the company's relationship with Passport Health Plan, with a motion to dismiss currently being briefed[137](index=137&type=chunk) [Risk Factors](index=52&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported from those disclosed in the 2021 Annual Report on Form 10-K - No material changes to risk factors were reported for the quarterly period ended March 31, 2022, from those disclosed in the 2021 Form 10-K[302](index=302&type=chunk) [Exhibits](index=53&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including agreements and CEO/CFO certifications

| --- | --- | |---------------------------------------------------------------|-------| | | | | | | | | | | Evolent Health Fourth Quarter 2021 Results February 23, 2022 | | | | | | | | Safe Harbor Statement Certain statements made in this report 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, w ...

Evolent Health, Inc. (NYSE:EVH) Q4 2021 Results Conference Call February 23, 2022 5:00 PM ET Company Participants Seth Blackley - Chief Executive Officer John Johnson - Chief Financial Officer Seth Frank - Vice President of Investor Relations Conference Call Participants Ryan Daniels - William Blair Anne Samuel - JPMorgan Charles Rhyee - Cowen David Larsen - BTIG Matthew Shea - Piper Sandler Operator Welcome to Evolent Health's Earnings Conference Call for the Fourth Quarter and Year ended December 31, 2021 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _________________________ FORM 10-K _________________________ (Mark One) S ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to | --- | --- | --- | --- | --- | --- | |------------------|-------------------------------------------------- ...

Evolent Health, Inc. (NYSE:EVH) Q3 2021 Earnings Conference Call November 3, 2021 5:30 PM ET Company Participants Seth Blackley - Chief Executive Officer John Johnson - Chief Financial Officer Conference Call Participants Ryan Daniels - William Blair Sean Wieland - Piper Sandler Charles Rhyee - Cowen Inc. David Larsen - BTIG, LLC Operator Welcome to Evolent Health Earnings Conference Call for the Quarter Ended September 30, 2021. As a reminder, this conference call is being recorded. Your host for the call ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _________________________ FORM 10-Q _________________________ (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, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-37415 _________________________ | --- | --- | --- | --- | --- | --- | | ...

Evolent Health, Inc. (NYSE:EVH) Q2 2021 Earnings Conference Call August 4, 2021 6:00 PM ET Company Participants Seth Blackley - Co-Founder, CEO & Director John Johnson - CFO Conference Call Participants Ryan Daniels - William Blair & Company Charles Rhyee - Cowen and Company Richard Close - Canaccord Genuity David Larsen - BTIG Sean Wieland - Piper Sandler & Co. Operator Welcome to Evolent Health's Earnings Conference Call for the Quarter Ended June 30, 2021. As a reminder, this conference call is being rec ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _________________________ FORM 10-Q _________________________ (Mark One) S QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-37415 _________________________ | --- | --- | --- | --- | --- | --- | |----- ...