LifeStance Health (LFST) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter revenue increased 16% to $325.5 million, and full year revenue grew 19$1,251.0 million compared to $1,055.7 million in the previous year[3] - Adjusted EBITDA for the fourth quarter was$32.8 million, a 62% increase year-over-year, and for the full year, it reached $119.7 million, up 103$7.1 million in the fourth quarter and $57.4 million for the full year, a reduction of 84$57.44 million, a significant improvement compared to a net loss of $186.26 million in 2023[19] - Adjusted EBITDA for 2024 was$119.74 million, compared to $59.04 million in 2023, indicating a strong operational performance[25] Operational Metrics - The clinician base expanded by 12$109.4 million, representing 33.6% of total revenue, and for the full year, it increased 33% to $402.4 million, or 32.2$402.40 million for 2024, up from $302.10 million in 2023[23] Cash Flow and Liquidity - Free Cash Flow for the fourth quarter was$56.0 million, and for the full year, it totaled $85.7 million[3] - Cash flow from operations for the year ended December 31, 2024, was$107.3 million, including $62.3 million in the fourth quarter[5] - The company ended the fourth quarter with cash of$154.6 million and net long-term debt of $279.8 million[5] - Cash and cash equivalents increased to$154.57 million at the end of 2024, up from $78.82 million at the end of 2023[21] - Total current assets rose to$312.51 million in 2024, compared to $225.73 million in 2023, reflecting improved liquidity[17] Future Projections - The company expects full year 2025 revenue to be between$1.40 billion and $1.44 billion, with Adjusted EBITDA projected between$130 million and $150 million[11] Expenses and Costs - Operating expenses totaled$1,282.58 million in 2024, up from $1,244.80 million in 2023, with center costs increasing to$848.57 million[19] - The company incurred $76.17 million in stock-based compensation expenses in 2024, down from$99.39 million in 2023[21] - Strategic initiatives involved costs related to a multi-phase system upgrade, including human resources management and clinician credentialing, with expenses considered non-recurring operating expenses for the years ended December 31, 2024 and 2023[28] - Real estate optimization and restructuring charges included cash expenses and non-cash charges related to asset impairment and early lease terminations, reflecting a significant strategic project for the year ended December 31, 2023[28] - Costs incurred for acquired center integration and compensation paid to former owners of acquired centers were not reflective of ongoing operating expenses[27] Debt and Share Information - Long-term debt remained relatively stable at $279.79 million in 2024, compared to$280.29 million in 2023[17] - The weighted-average shares used to compute basic and diluted net loss per share increased to 379.15 million in 2024 from 367.46 million in 2023[19] Litigation and Amortization - Litigation costs for the years ended December 31, 2024, 2023, and 2022 included cash expenses related to three distinct litigation matters, including securities class action, privacy class action, and compensation model class action[26] - Amortization of capitalized implementation costs related to cloud-based software arrangements was included within general and administrative expenses in the consolidated statements of operations and comprehensive loss[28]