Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________ FORM 10-Q _______________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Exact Name of Registrant as Specified in Its Charter) _________________________ Delaware 81-3599420 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 950 N. Glebe Rd., Suite 700 Arlington, Virginia 2220 ...

ARLINGTON, VA – May 9, 2024 – Privia Health Group, Inc. (Nasdaq: PRVA) today announced financial results for the first quarter ended March 31, 2024. | | | | For the Three Months Ended March 31, | | | | --- | --- | --- | --- | --- | --- | | ($ in millions, except per share amounts) | 2024 | | | 2023 | Change (%) | | Total revenue | $ | 415.2 | $ | 386.3 | 7.5 % | | Gross profit | $ | 93.4 | $ | 83.0 | 12.5 % | | Operating income | $ | 0.8 | $ | 6.7 | (87.7)% | | a Net income | $ | 3.0 | $ | 7.3 | (59.3)% | | ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________ FORM 10-K _______________________________ (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the year ended December 31, 2023 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 001-40365 _________________________ Privia Health Group, Inc. (Exact ...

Financial Data and Key Metrics Changes - Privia Health reported a 19.2% year-over-year increase in Practice Collections for Q4 2023, reaching $757 million [23] - Full-year Practice Collections grew 17.1% to $2.84 billion, while Care Margin increased by 17.5% [24] - Adjusted EBITDA for Q4 2023 grew 21.1% to $17.3 million, and for the full year, it increased by 18.7% to $72.2 million [23][24] Business Line Data and Key Metrics Changes - The company added 200 implemented providers in Q4 2023, totaling 4,305 implemented providers, a 19.4% increase year-over-year [23] - The growth in more mature markets contributed to a significant outperformance in Platform Contribution, validating strong unit economics [12] Market Data and Key Metrics Changes - As of January 1, 2024, Privia serves 1.13 million attributed lives across over 100 at-risk payer contracts, a 32% increase from year-end 2022 [18] - Commercial attributed lives increased by more than 36% to 678,000, with 69% in upside-only arrangements [18] Company Strategy and Development Direction - The company plans to focus on organic provider growth, limit downside risk arrangements, and drive operating leverage for adjusted EBITDA growth in 2024 [26][29] - Privia aims to invest $10 million to $12 million in platform costs in 2024 to support growth in newer markets [15] Management's Comments on Operating Environment and Future Outlook - Management noted that the current environment does not support overextension into downside risk or capitation arrangements, emphasizing a prudent approach to managing risk [13][14] - The company expects to see normalization in the MA market post-2024, allowing for a return to more capitated relationships [46] Other Important Information - Privia ended 2023 with approximately $390 million in cash and no debt, with free cash flow exceeding $81 million [25] - The company is exiting the Delaware ACO effective January 1, 2024, due to negative contribution margin expectations [7] Q&A Session Summary Question: Can you talk about the negotiations with payers around taking risk? - Management explained that they have built a model that can take risk in various forms and that payers are understanding of the need to adjust risk levels based on utilization trends [32][34] Question: How should we think about provider growth and attributed lives growth for 2024? - Management indicated that they aim to add 400 to 500 new implemented providers annually and that they expect to maintain strong growth in EBITDA despite current market challenges [38][40] Question: Can you clarify the minimal increase in shared savings for 2024? - Management attributed the minimal increase to current utilization trends and indicated that they expect normalization in the MA market after 2024 [44][46] Question: What are the new market entry costs expected in 2024? - Management noted that the majority of the $10 million to $12 million in costs are related to platform support for new providers in states like Connecticut and South Carolina [65] Question: Can you discuss the exit from Delaware and its impact? - Management clarified that exiting Delaware was an economic decision due to expected negative margins and that it would prevent further losses [61][66]

| --- | --- | --- | --- | --- | |----------------------------------------------------------------------------------------|-------------------------------------------------|-------|-------|-------| | | | | | | | | | | | | | 4 th Quarter 2023 Results February 27, 2024 Parth Mehrotra – David Mountcastle – | Chief Executive Officer Chief Financial Officer | | | | 1 Disclaimer Forward-Looking Statements This presentation contains forward-looking statements that express the Company's opinions, expectations, belie ...

[Overview and Performance Summary](index=1&type=section&id=Overview%20and%20Performance%20Summary) Privia Health demonstrated robust financial and operational growth in 2023, achieving all guidance metrics and continuing strong performance into the fourth quarter [Full-Year 2023 Performance Highlights](index=1&type=section&id=Full-Year%202023%20Performance%20Highlights) Privia Health achieved all its full-year 2023 guidance metrics, demonstrating strong financial growth with a 22.2% increase in total revenue and a shift from operating loss to income, alongside significant operational expansion in implemented providers and attributed lives [Financial Performance](index=1&type=section&id=Financial%20Performance_FY23) Privia Health's full-year 2023 financial performance shows significant revenue growth and a positive shift from net loss to net income | Metric | 2023 ($ millions) | 2022 ($ millions) | Change (%) | | :--- | :--- | :--- | :--- | | Total revenue | 1,657.7 | 1,356.7 | 22.2 % | | Gross profit | 353.8 | 302.3 | 17.0 % | | Operating income (loss) | 20.6 | (19.1) | nm | | Net income (loss) | 23.1 | (8.6) | nm | | Non-GAAP adjusted net income | 81.5 | 63.7 | 27.9 % | | Net income (loss) per share | 0.20 | (0.08) | nm | | Non-GAAP adjusted net income per share | 0.64 | 0.52 | 23.1 % | - Net income for full-year 2023 included **$37.1 million** in non-cash stock compensation expense and **$7.9 million** in legal, non-recurring, and other expenses[2](index=2&type=chunk) [Operating Performance](index=1&type=section&id=Operating%20Performance_FY23) Operational performance for full-year 2023 demonstrates substantial growth in implemented providers and value-based care attributed lives - Implemented Providers increased by **19.4%** compared to year-end 2022[4](index=4&type=chunk)[5](index=5&type=chunk)[6](index=6&type=chunk) - Gross provider retention was over **98%**[5](index=5&type=chunk) - Three new market entries: Connecticut, South Carolina, and Washington[5](index=5&type=chunk) | Metric | 2023 | 2022 | Change (%) | | :--- | :--- | :--- | :--- | | Implemented Providers | 4,305 | 3,606 | 19.4 % | | Value-Based Care Attributed Lives | 1,120,000 | 856,000 | 30.8 % | | Practice Collections ($ millions) | 2,839.0 | 2,424.1 | 17.1 % | | Care Margin ($ millions) | 359.2 | 305.6 | 17.5 % | | Platform Contribution ($ millions) | 173.5 | 148.5 | 16.8 % | | Adjusted EBITDA ($ millions) | 72.2 | 60.9 | 18.7 % | [Performance vs. Guidance](index=2&type=section&id=Performance%20vs.%20Guidance_FY23) Privia Health successfully achieved or exceeded all its initial and updated 2023 operating and financial guidance metrics - Achieved all 2023 operating and financial guidance metrics[4](index=4&type=chunk) | Metric | Initial FY 2023 Guidance (Low) | Initial FY 2023 Guidance (High) | Updated FY 2023 Guidance | FY 2023 Actual | | :--- | :--- | :--- | :--- | :--- | | Implemented Providers | 4,050 | 4,150 | Above High End | 4,305 | | Attributed Lives | 1,050,000 | 1,150,000 | Midpoint | 1,120,000 | | Practice Collections ($ millions) | 2,700 | 2,850 | Midpoint | 2,839.0 | | GAAP Revenue ($ millions) | 1,550 | 1,650 | Mid to High End | 1,657.7 | | Care Margin ($ millions) | 350 | 365 | Mid to High End | 359.2 | | Platform Contribution ($ millions) | 160 | 168 | Above High End | 173.5 | | Adjusted EBITDA ($ millions) | 70 | 74 | Mid to High End | 72.2 | [Fourth Quarter 2023 Performance Highlights](index=3&type=section&id=Fourth%20Quarter%202023%20Performance%20Highlights) The fourth quarter of 2023 showed continued strong performance, with total revenue growing by 21.0% and non-GAAP adjusted net income increasing by 26.1% year-over-year, supported by robust practice collections and Adjusted EBITDA growth [Financial Performance](index=3&type=section&id=Financial%20Performance_Q423) Fourth quarter 2023 financial results indicate strong revenue growth and a significant increase in non-GAAP adjusted net income | Metric | Q4 2023 ($ millions) | Q4 2022 ($ millions) | Change (%) | | :--- | :--- | :--- | :--- | | Total revenue | 440.8 | 364.4 | 21.0 % | | Gross profit | 90.0 | 79.2 | 13.6 % | | Operating income | 1.4 | 2.2 | nm | | Net income | 2.8 | 17.8 | nm | | Non-GAAP adjusted net income | 20.3 | 16.1 | 26.1 % | | Net income per share | 0.02 | 0.14 | nm | | Non-GAAP adjusted net income per share | 0.15 | 0.13 | 15.4 % | - Net income for the fourth quarter of 2023 included **$11.7 million** in non-cash stock compensation expense and **$2.4 million** in legal and other expenses[10](index=10&type=chunk) [Operating Performance](index=3&type=section&id=Operating%20Performance_Q423) Fourth quarter 2023 operating performance highlights robust growth in practice collections, care margin, and Adjusted EBITDA | Metric | Q4 2023 ($ millions) | Q4 2022 ($ millions) | Change (%) | | :--- | :--- | :--- | :--- | | Practice Collections | 756.6 | 634.8 | 19.2 % | | Care Margin | 91.5 | 80.1 | 14.2 % | | Platform Contribution | 42.3 | 39.1 | 8.2 % | | Adjusted EBITDA | 17.3 | 14.3 | 21.1 % | [Detailed Financial Information](index=7&type=section&id=Detailed%20Financial%20Information) This section provides comprehensive GAAP financial statements and supplemental data, detailing revenue disaggregation and liabilities for unpaid medical claims [GAAP Financial Statements](index=7&type=section&id=GAAP%20Financial%20Statements) The GAAP financial statements for 2023 reflect a significant improvement in the company's financial health, moving from a net loss to a net income, with substantial increases in assets and operating cash flow, indicating effective financial management and operational efficiency [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The condensed consolidated statements of operations show a positive shift from operating loss to income and net loss to net income in 2023 | Metric (in thousands) | FY 2023 | FY 2022 | | :--- | :--- | :--- | | Revenue | $ 1,657,737 | $ 1,356,660 | | Total operating expenses | $ 1,637,088 | $ 1,375,782 | | Operating income (loss) | $ 20,649 | $ (19,122) | | Net income (loss) | $ 21,028 | $ (12,064) | | Net income (loss) attributable to Privia Health Group, Inc. | $ 23,079 | $ (8,585) | | Net income (loss) per share – basic | $ 0.20 | $ (0.08) | | Net income (loss) per share – diluted | $ 0.19 | $ (0.08) | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The condensed consolidated balance sheets reflect a strong financial position with increased cash, total assets, and stockholders' equity | Metric (in thousands) | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $ 389,511 | $ 347,992 | | Total current assets | $ 700,804 | $ 551,962 | | Total assets | $ 999,900 | $ 792,813 | | Total current liabilities | $ 386,952 | $ 264,274 | | Total liabilities | $ 392,511 | $ 273,764 | | Total stockholders' equity | $ 607,389 | $ 519,049 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The condensed consolidated statements of cash flows highlight a significant increase in net cash from operating activities and strategic investments in business acquisitions | Metric (in thousands) | FY 2023 | FY 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $ 80,785 | $ 47,196 | | Net cash used in investing activities | $ (42,971) | $ (104) | | Net cash provided by (used in) financing activities | $ 3,705 | $ (19,677) | | Net increase in cash and cash equivalents | $ 41,519 | $ 27,415 | | Cash and cash equivalents at end of period | $ 389,511 | $ 347,992 | - The Company invested **$42.9 million** in 2023 on business acquisitions to enter new states[14](index=14&type=chunk)[34](index=34&type=chunk) [Supplemental Financial Data](index=10&type=section&id=Supplemental%20Financial%20Data) This section provides a detailed breakdown of Privia Health's revenue streams, highlighting growth across all categories, particularly in capitated revenue, and details the increase in liabilities for unpaid medical claims under at-risk arrangements [Revenue Disaggregation](index=10&type=section&id=Revenue%20Disaggregation) Revenue disaggregation details the growth across various sources, including FFS patient care, administrative services, capitated revenue, and shared savings | Revenue Source (in Thousands) | FY 2023 | FY 2022 | | :--- | :--- | :--- | | FFS-patient care | $ 976,688 | $ 869,165 | | FFS-administrative services | $ 113,154 | $ 94,929 | | Capitated revenue | $ 338,729 | $ 218,463 | | Shared savings | $ 170,143 | $ 132,615 | | Care management fees (PMPM) | $ 50,519 | $ 35,541 | | Other revenue | $ 8,504 | $ 5,947 | | Total Revenue | $ 1,657,737 | $ 1,356,660 | [Liabilities for Unpaid Medical Claims](index=10&type=section&id=Liabilities%20for%20Unpaid%20Medical%20Claims) This section outlines the changes in liabilities for unpaid medical claims, reflecting incurred and paid claims over the period | Metric (in Thousands) | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Balance, beginning of period | $ 28,617 | $ — | | Total claims incurred | $ 336,819 | $ 218,199 | | Total claims paid | $ (298,298) | $ (189,582) | | Balance, end of period | $ 67,138 | $ 28,617 | [Key Metrics and Non-GAAP Measures](index=11&type=section&id=Key%20Metrics%20and%20Non-GAAP%20Measures) This section defines key operating metrics and provides detailed reconciliations for non-GAAP financial measures, offering insights into operational performance [Operating Metrics and Definitions](index=11&type=section&id=Operating%20Metrics%20and%20Definitions) Privia Health's key operating metrics for 2023 underscore substantial growth in its provider network and patient reach, while the definitions clarify the methodology behind the company's non-GAAP financial measures used for performance evaluation [Key Operating Metrics](index=11&type=section&id=Key%20Operating%20Metrics) Key operating metrics for 2023 demonstrate significant expansion in implemented providers, attributed lives, and practice collections | Metric | FY 2023 | FY 2022 | | :--- | :--- | :--- | | Implemented Providers | 4,305 | 3,606 | | Attributed Lives | 1,120,000 | 856,000 | | Practice Collections ($ millions) | 2,839.0 | 2,424.1 | - Implemented Providers are defined as all service professionals on Privia Health's platform credentialed and billed for medical services[38](index=38&type=chunk) - Attributed Lives are patients attributed to Privia for value-based care arrangements[38](index=38&type=chunk) - Practice Collections include total collections from all practices and sources, differing from revenue by including Non-Owned Medical Groups[38](index=38&type=chunk) [Non-GAAP Financial Measures Definitions](index=11&type=section&id=Non-GAAP%20Financial%20Measures%20Definitions) This section provides clear definitions for key non-GAAP financial measures, including Care Margin, Platform Contribution, and Adjusted EBITDA - Care Margin is Gross Profit excluding amortization of intangible assets[39](index=39&type=chunk) - Platform Contribution is Gross Profit, excluding amortization of intangible assets, less Cost of platform and excluding stock-based compensation expense included in Cost of platform[39](index=39&type=chunk) - Adjusted EBITDA is net income (loss) attributable to Privia Health Group, Inc. shareholders and subsidiaries excluding non-controlling interests, provision for (benefit from) income taxes, interest income, interest expense, depreciation and amortization, stock-based compensation, employer taxes on equity vesting/exercises, severance charges and other nonrecurring expenses[41](index=41&type=chunk) [Non-GAAP Reconciliations](index=12&type=section&id=Non-GAAP%20Reconciliations) This section provides detailed reconciliations of GAAP measures to key non-GAAP financial metrics such as Care Margin, Platform Contribution, Adjusted EBITDA, and Adjusted Net Income, illustrating the adjustments made for non-cash and non-recurring items to provide a clearer view of operational performance [Gross Profit to Care Margin](index=12&type=section&id=Gross%20Profit%20to%20Care%20Margin) This reconciliation details the adjustments from Gross Profit to Care Margin, primarily by adding back amortization of intangible assets | Metric (in thousands) | FY 2023 | FY 2022 | | :--- | :--- | :--- | | Gross Profit | $ 353,805 | $ 302,269 | | Amortization of intangible assets | $ 5,359 | $ 3,351 | | Care margin | $ 359,164 | $ 305,620 | [Gross Profit to Platform Contribution](index=12&type=section&id=Gross%20Profit%20to%20Platform%20Contribution) This reconciliation outlines the adjustments from Gross Profit to Platform Contribution, including amortization and stock-based compensation | Metric (in thousands) | FY 2023 | FY 2022 | | :--- | :--- | :--- | | Gross Profit | $ 353,805 | $ 302,269 | | Amortization of intangible assets | $ 5,359 | $ 3,351 | | Cost of platform | $ (197,663) | $ (170,838) | | Stock-based compensation | $ 11,980 | $ 13,758 | | Platform Contribution | $ 173,481 | $ 148,540 | [Net Income (Loss) to Adjusted EBITDA](index=12&type=section&id=Net%20Income%20%28Loss%29%20to%20Adjusted%20EBITDA) This reconciliation details the adjustments from Net Income (Loss) to Adjusted EBITDA, accounting for non-cash and non-recurring expenses | Metric (in thousands) | FY 2023 | FY 2022 | | :--- | :--- | :--- | | Net income (loss) | $ 23,079 | $ (8,585) | | Stock-based compensation | $ 37,098 | $ 67,359 | | Depreciation and amortization | $ 6,533 | $ 4,571 | | Other expenses | $ 7,948 | $ 8,044 | | Adjusted EBITDA | $ 72,228 | $ 60,852 | [Net Income (Loss) to Adjusted Net Income](index=13&type=section&id=Net%20Income%20%28Loss%29%20to%20Adjusted%20Net%20Income) This reconciliation provides adjustments from Net Income (Loss) to Adjusted Net Income, including stock-based compensation and intangible amortization | Metric (in thousands) | FY 2023 | FY 2022 | | :--- | :--- | :--- | | Net income (loss) | $ 23,079 | $ (8,585) | | Stock-based compensation | $ 37,098 | $ 67,359 | | Intangible amortization expense | $ 5,359 | $ 3,351 | | Provision for (benefit from) income tax | $ 7,993 | $ (6,516) | | Other expenses | $ 7,948 | $ 8,044 | | Adjusted net income attributable to Privia Health Group, Inc. | $ 81,477 | $ 63,653 | | Adjusted net income per share – diluted | $ 0.64 | $ 0.52 | [Capital & Outlook](index=3&type=section&id=Capital%20%26%20Outlook) This section details Privia Health's capital resources, cash flow, and provides the strategic focus and financial guidance for the full-year 2024 [Capital Resources and Cash Flow](index=3&type=section&id=Capital%20Resources%20and%20Cash%20Flow) Privia Health maintained a strong liquidity position at the end of 2023 with significant cash reserves and no debt, supported by a substantial increase in net cash provided by operating activities, demonstrating robust financial stability and cash generation - Cash and cash equivalents at December 31, 2023, were **$389.5 million**, up from **$348.0 million** at December 31, 2022[13](index=13&type=chunk) - The company had no debt at December 31, 2023, or December 31, 2022[13](index=13&type=chunk) - Net cash provided by operating activities for FY2023 was **$80.8 million**, a **71.2%** increase from **$47.2 million** in the prior year[14](index=14&type=chunk) - Capital expenditures were minimal at **$0.1 million** for FY2023[14](index=14&type=chunk) [2024 Financial and Business Outlook](index=4&type=section&id=2024%20Financial%20and%20Business%20Outlook) For 2024, Privia Health outlines strategic priorities including organic growth, renegotiating Medicare Advantage contracts to mitigate risk, and expanding into new states, while providing guidance that projects continued growth in key operating and non-GAAP financial metrics despite anticipated revenue adjustments [Strategic Focus and Key Actions](index=3&type=section&id=Strategic%20Focus%20and%20Key%20Actions) Privia Health's 2024 strategic focus includes organic growth, renegotiating Medicare Advantage contracts, and expanding into new states - Increasing density and scale in existing geographies through organic provider growth[15](index=15&type=chunk) - Limiting downside-risk arrangements in the Medicare Advantage (MA) market by renegotiating capitation arrangements for more favorable contract structures[15](index=15&type=chunk) - Renegotiated MA capitation arrangements are expected to reduce capitated practice collections by approximately **$198 million** year-over-year[15](index=15&type=chunk)[16](index=16&type=chunk) - Exiting Delaware ACO (~**12,000** attributed lives in Medicare Shared Savings Program) effective January 1, 2024[17](index=17&type=chunk) - Continuing to pursue business development efforts to enter new states and increase overall addressable market[17](index=17&type=chunk) - Achieving operating leverage to drive Adjusted EBITDA growth and converting **80%** of Adjusted EBITDA to Free Cash Flow[17](index=17&type=chunk)[18](index=18&type=chunk) [Full-Year 2024 Guidance](index=4&type=section&id=Full-Year%202024%20Guidance) Full-year 2024 guidance projects continued growth in key operating and non-GAAP financial metrics despite anticipated revenue adjustments | Metric ($ in millions) | FY 2023 Actual | FY 2024 Guidance (Low) | FY 2024 Guidance (High) | Y-Y % Change (Low) | Y-Y % Change (High) | | :--- | :--- | :--- | :--- | :--- | :--- | | Implemented Providers | 4,305 | 4,650 | 4,750 | 8.0 % | 10.3 % | | Attributed Lives | 1,120,000 | 1,150,000 | 1,200,000 | 2.7 % | 7.1 % | | Practice Collections | $ 2,839.0 | $ 2,775 | $ 2,875 | (2.3)% | 1.3 % | | GAAP Revenue | $ 1,657.7 | $ 1,600 | $ 1,675 | (3.5)% | 1.0 % | | Care Margin | $ 359.2 | $ 388 | $ 400 | 8.0 % | 11.4 % | | Platform Contribution | $ 173.5 | $ 180 | $ 188 | 3.8 % | 8.4 % | | Adjusted EBITDA | $ 72.2 | $ 85 | $ 90 | 17.7 % | 24.6 % | - Practice Collections guidance includes a reduction of approximately **$198 million** from renegotiated Medicare Advantage capitation agreements[16](index=16&type=chunk) - Adjusted EBITDA guidance includes approximately **$10-12 million** in start-up costs for new geographies[18](index=18&type=chunk) - Approximately **80%** of Adjusted EBITDA is expected to convert to free cash flow in FY 2024[18](index=18&type=chunk) [Corporate Information & Disclosures](index=5&type=section&id=Corporate%20Information%20%26%20Disclosures) This section provides general corporate information, details on non-GAAP financial measures, and a safe harbor statement regarding forward-looking statements [General Information](index=5&type=section&id=General%20Information) This section provides practical information regarding Privia Health's investor communications, including details for its webcast and conference call, and an overview of the company's mission as a technology-driven physician enablement platform [Webcast and Conference Call Information](index=5&type=section&id=Webcast%20and%20Conference%20Call%20Information) This section provides details for accessing the company's conference call and webcast replay for investor communications - Conference call held on February 27, 2024, at **8:00 am ET**[20](index=20&type=chunk) - Webcast and replay available at ir.priviahealth.com/news-and-events/events-and-presentations[20](index=20&type=chunk) [About Privia Health](index=5&type=section&id=About%20Privia%20Health) Privia Health is a technology-driven physician enablement company focused on optimizing practices and improving patient outcomes - Privia Health is a technology-driven, national physician enablement company[22](index=22&type=chunk) - Collaborates with medical groups, health plans, and health systems[22](index=22&type=chunk) - Platform aims to optimize physician practices, improve patient experiences, reward doctors for high-value care, reduce unnecessary healthcare costs, and achieve better outcomes[22](index=22&type=chunk) [Legal & Investor Disclosures](index=5&type=section&id=Legal%20%26%20Investor%20Disclosures) This section clarifies the use of non-GAAP financial measures as supplementary information and includes a comprehensive safe harbor statement, cautioning investors about forward-looking statements and outlining potential risks and uncertainties [Non-GAAP Financial Measures Explanation](index=5&type=section&id=Non-GAAP%20Financial%20Measures%20Explanation) This explanation clarifies that non-GAAP financial measures are supplementary to GAAP results, providing consistent operational insights - Non-GAAP financial measures are presented as supplements to, not substitutes for, GAAP results[23](index=23&type=chunk)[24](index=24&type=chunk) - These measures provide useful information for understanding and comparing operating results consistently across periods[24](index=24&type=chunk) - Reconciliations to the most directly comparable GAAP financial measures are provided[23](index=23&type=chunk) [Safe Harbor Statement](index=5&type=section&id=Safe%20Harbor%20Statement) The safe harbor statement cautions against undue reliance on forward-looking statements due to inherent risks and uncertainties - The press release contains "forward-looking statements" subject to risks and uncertainties[25](index=25&type=chunk)[26](index=26&type=chunk) - Factors that could cause actual results to differ include compliance with healthcare laws, dependence on medical group relationships, growth strategy viability, competition, and challenges in new markets[27](index=27&type=chunk) - Readers are cautioned not to place undue reliance on forward-looking statements[26](index=26&type=chunk) [Contact Information](index=6&type=section&id=Contact%20Information) This section provides contact details for investor and corporate communications - Contact: Robert Borchert, SVP, Investor & Corporate Communications[28](index=28&type=chunk) - Email: IR@priviahealth.com, Phone: **817.783.4841**[28](index=28&type=chunk)

Privia Health Group, Inc (NASDAQ:PRVA) Q3 2023 Earnings Call Transcript November 3, 2023 9:00 AM ET Company Participants Robert Borchert - SVP, Investor & Corporate Communications Parth Mehrotra - President and CEO David Mountcastle - CFO Conference Call Participants Joshua Raskin - Nephron Research Elizabeth Anderson - Evercore ISI Jailendra Singh - Truist Securities Richard Close - Canaccord Genuity Brian Tanquilut - Jefferies Adam Ron - Bank of America Jack Senft - William Blair Benjamin Mayo - Leerink P ...

Q3 2023 Performance Highlights - Implemented providers increased to 4,105 in Q3 2023, a 14.2% increase compared to Q3 2022[10] - Practice Collections reached $723.5 million in Q3 2023, an 18.2% increase compared to Q3 2022[10] - Adjusted EBITDA was $18.8 million in Q3 2023, a 20.0% increase compared to Q3 2022[10] - Year-to-date Practice Collections reached $2.0824 billion, compared to $1.7892 billion in the same period of 2022[29] - Year-to-date Adjusted EBITDA reached $55.0 million, compared to $46.6 million in the same period of 2022[47] Value-Based Care and MSSP Performance - Privia ACOs achieved an average aggregate savings rate of 7.6% in 2022[22] - Privia ACOs' share of shared savings was $91.2 million in 2022[23] - 77% of total MSSP lives are in downside risk tracks in 2022, compared to 0% in 2019[19] - Total annual average expenditures for MSSP 2022 Performance were improved by 8% vs Median MSSP ACO and 18% vs Total FFS Medicare[36] Expansion and Market Presence - Privia Medical Group launched in South Carolina, partnering with Greenville ENT and Allergy Associates[13] - The company has entered six new states in the last 12 months[13] - Total attributed lives reached 1.09 million, including Privia Care Partners' lives[15] Financial Position and Guidance - The company has no debt and approximately $371 million in pro forma net cash[31] - Updated FY'23 Guidance projects Practice Collections of $2.85 billion, GAAP Revenue in the mid to high end of $1.55 billion to $1.65 billion, Care Margin in the mid to high end of $350 million to $365 million, Platform Contribution above the high end of $160 million to $168 million, and Adjusted EBITDA in the mid to high end of $70 million to $74 million[32]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________ FORM 10-Q _______________________________ (Mark One) For the quarterly period ended September 30, 2023 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 001-40365 _________________________ Privia Health Group, Inc. (Exact Name of Registrant as Specified in Its Charter) _________________________ ...

Financial Data and Key Metrics Changes - Practice Collections increased almost 14% year-over-year, reaching $700 million in Q2 2023 [9][16] - Adjusted EBITDA rose more than 24% to $19.3 million, demonstrating strong operating leverage [9][16] - Total attributed lives increased almost 27% from a year ago, with total value-based care comprising 37% of total GAAP revenue in Q2 2023 compared to 29.6% in Q2 2022 [12][16][69] Business Line Data and Key Metrics Changes - Implemented Provider count was 3,870, up 9.3% year-over-year [16] - Care Margin increased by 18.8% for the first half of 2023 [16] - Value-based care represented 24.9% of Practice Collections in Q2 2023, up from 21.8% in Q2 2022 [69] Market Data and Key Metrics Changes - The company expanded its national footprint to include close to 3,900 implemented providers caring for over 4.4 million patients [11] - The gross provider attrition rate in 2023 has been less than 1% year-to-date, one of the lowest in the company's history [11] Company Strategy and Development Direction - The company aims to build one of the largest ambulatory care delivery networks in the nation, focusing on expanding its provider partnerships and entering new markets [8][19] - A definitive agreement was announced to enter Washington, marking the company's 13th state, in partnership with Walla Walla Clinic [9][10] - The company plans to continue investing in new markets while maintaining a strong balance sheet with approximately $318 million in cash and no debt [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage risk and deliver significant shared savings, EBITDA, and free cash flow growth [13] - The company updated its 2023 guidance to the mid to high end of initial ranges based on strong year-to-date performance [17] - Management noted that while there are challenges in the operating environment, the diversified book of business positions the company well for future growth [19] Other Important Information - A secondary offering of 42.6 million shares was completed, eliminating previous ownership by Goldman Sachs and Pamplona Capital [10] - The company has broadened its Board capabilities with new members bringing extensive healthcare industry experience [10] Q&A Session Summary Question: Utilization trends in the quarter - Management noted strong ambulatory utilization trends and a higher plateau coming out of COVID, with good performance across both fee-for-service and value-based books [24] Question: Ramp in new markets - Management reported strong early performance in new markets like North Carolina, Connecticut, and Ohio, exceeding expectations for new provider sales [29] Question: Capitated revenues and PMPM expectations - Management indicated that the PMPM for capitated revenues is expected to remain in the current range, influenced by the mix of business and risk pools [34] Question: Washington market entry - Management highlighted that they will own the tax ID and MSO entity in Washington, expecting to consolidate results from the closing date [38] Question: Value-based attributed lives growth - Management emphasized a balanced book of business and the potential for growth in attributed lives across all segments, despite some enrollment shifts [42] Question: Care management fees increase - Management attributed the increase in care management fees to strong topline growth and performance in value-based arrangements [44] Question: Investments in new markets - Management confirmed that investments in new markets are tracking on schedule and are expected to yield long-term results [48] Question: Accounts receivable increase - Management explained that the increase in accounts receivable was related to new capitation-related accruals and follows a typical annual pattern [66] Question: Virtual care strategy - Management stated that virtual care is an integral part of their strategy to optimize provider operations and improve overall economics [81]