LifeStance Health (LFST) - 2023 Q4 - Annual Results

Financial Performance - Fourth quarter revenue increased by 22% to $280.6 million, and full year revenue rose by 23% to $1,055.7 million compared to $859.5 million[5]. - Total revenue for 2023 was $1,055,665, an increase of 22.8% from $859,542 in 2022[22]. - The net loss for Q4 was $45.0 million, a 4% decrease from the previous year, and the full year net loss was $186.3 million, a 14% decrease[5]. - Net loss for 2023 was $186,262, compared to a net loss of $215,564 in 2022, showing an improvement of 13.6%[22]. - Net loss for the year ended December 31, 2023, was $186,262 thousand, an improvement from a net loss of $215,564 thousand in 2022, and $307,197 thousand in 2021[28]. - Adjusted EBITDA for Q4 was $20.3 million, a 99% increase, and for the full year, it was $59.0 million, a 12% increase[5]. - Adjusted EBITDA for 2023 was $59,042 thousand, compared to $52,670 thousand in 2022 and $49,154 thousand in 2021, indicating a year-over-year increase of 12.9%[28]. Operational Metrics - The clinician base grew by 18% to 6,645 clinicians, with 227 net clinician additions in Q4 and 1,014 for the full year[5]. - Fourth quarter visit volumes increased by 20% to 1.8 million, and full year visit volumes also rose by 20% to 6.9 million[5]. - The Center Margin for Q4 grew by 33% to $83.3 million, representing 29.7% of total revenue, while for the full year, it increased by 27% to $302.1 million, or 28.6% of total revenue[6]. - Center margin for 2023 was $302,096, up from $237,017 in 2022, representing a 27.5% increase[26]. Cash Flow and Debt - The company ended Q4 with cash of $78.8 million and net long-term debt of $280.3 million[8]. - Cash and cash equivalents decreased to $78,824 at the end of 2023 from $108,621 at the end of 2022, a decline of 27.5%[24]. - Cash used in operating activities was $(16,884) in 2023, a significant decrease from $52,789 in 2022[24]. - Net cash used in investing activities was $(60,340) in 2023, down from $(139,461) in 2022, indicating a 56.7% improvement[24]. - Net cash provided by financing activities was $47,427 in 2023, slightly up from $47,264 in 2022[24]. Expenses and Costs - Operating expenses totaled $1,244,799 in 2023, up from $1,069,716 in 2022, reflecting a 16.3% increase[22]. - Litigation costs for 2023 amounted to $51,034 thousand, primarily related to three distinct litigation matters, reflecting significant non-recurring expenses[30]. - Strategic initiatives expenses in 2023 included costs for a multi-phase system upgrade, focusing on human resources management, clinician credentialing, and a scalable electronic health resources system[31]. - Real estate optimization and restructuring charges in 2023 totaled $10,970 thousand, associated with a strategic project to consolidate physical locations[32]. - Stock and unit-based compensation expense decreased to $99,388 thousand in 2023 from $187,430 thousand in 2022, showing a reduction of 46.9%[28]. - Interest expense, net for 2023 was $21,220 thousand, slightly increasing from $19,928 thousand in 2022[28]. - Depreciation and amortization expenses rose to $80,437 thousand in 2023 from $69,198 thousand in 2022, indicating increased investment in assets[28]. Future Outlook - The company expects full year 2024 revenue to be between $1.19 billion and $1.24 billion, with a Center Margin of $345 to $365 million and Adjusted EBITDA of $80 to $90 million[13]. - For Q1 2024, the company anticipates total revenue of $287 to $307 million, with a Center Margin of $81 to $93 million and Adjusted EBITDA of $17 to $23 million[13].