Privia Health (US:PRVA)2023-03-01 21:16Revenue Growth - Revenue for the year ended December 31, 2022, was $1,356.7 million, an increase from $966.2 million in 2021 and $817.1 million in 2020[400] - Practice Collections reached $2.42 billion in 2022, up from $1.63 billion in 2021 and $1.30 billion in 2020[400] - Revenue for the year ended December 31, 2022, was $1.36 billion, an increase of 40.4% from $966.2 million in 2021[456] Financial Performance - Adjusted EBITDA for 2022 was $60.9 million, compared to $41.4 million in 2021 and $29.4 million in 2020[400] - Adjusted EBITDA increased by 47.1% for the year ended December 31, 2022, compared to 2021, driven by organic growth and new market entry[442] - Adjusted EBITDA margin improved to 19.9% in 2022, up from 17.4% in 2021, indicating enhanced operational efficiency[443] - The company reported a net loss attributable to Privia Health Group, Inc. of $8.6 million in 2022, significantly improved from a loss of $188.2 million in 2021, a reduction of 95.4%[456] Value-Based Care (VBC) Initiatives - VBC revenue represented 28.5% of total revenue in 2022, significantly up from 12.4% in 2021 and 11.4% in 2020[405] - The company aims to enhance its VBC capabilities and accelerate the transition to VBC reimbursement across all markets[416] - The company aims to increase risk levels in value-based care programs to enhance revenue opportunities per patient over time[419] Provider and Patient Metrics - The number of Implemented Providers increased by 8.7% from 3,317 in 2021 to 3,606 in 2022, and Attributed Lives rose by 8.9% from 786,000 to 856,000 during the same period[423][426] - The launch of Privia Care Partners in January 2022 attracted approximately 350 providers and over 42,000 Attributed Lives by January 2023[421] - As of January 1, 2023, the company's capitated agreements cover healthcare services for approximately 40,600 Medicare Advantage beneficiaries[418] Cost Management - Provider expenses rose to $1.05 billion in 2022, a 44.4% increase from $727.8 million in 2021, primarily due to new at-risk capitation arrangements[459] - Cost of platform expenses decreased to $170.8 million in 2022 from $174.7 million in 2021, a reduction of 2.2%[460] - Sales and marketing expenses were $19.7 million in 2022, down 13.2% from $22.7 million in 2021, reflecting cost management efforts[461] Partnerships and Expansion - The company launched three new Accountable Care Organizations (ACOs) in early 2022 and three more in the first two months of 2023, bringing the total to ten ACOs[417] - The company entered a partnership with Surgery Partners, Inc. to expand into Montana, establishing Great Falls Clinic as an anchor practice[410] - In November 2022, a joint venture with Novant Health Enterprises was announced to launch Privia Medical Group in North Carolina[411] Cash Flow and Liquidity - Cash and cash equivalents as of December 31, 2022, were $348.0 million, supported by proceeds from the IPO and cash flows from operations[480] - Net cash provided by operating activities was $47.2 million in 2022, down from $55.1 million in 2021[485] - Net cash used in financing activities was $19.7 million for the year ended December 31, 2022, compared to net cash provided of $213.7 million in 2021, primarily due to the IPO proceeds in 2021[489] Revenue Streams - Capitated revenue for 2022 was $218.5 million, marking a new revenue stream for the company[456] - Shared savings revenue increased by 59.7% to $132.6 million in 2022, driven by growth in Medicare programs[456] - Other revenue sources include concierge services, virtual visits, and partnerships with self-insured employers, with CARES Act funds recorded as other revenue until December 31, 2021[516] Market Risks and Economic Factors - The Company faces market risks primarily from rising interest rates, with its Credit Agreement bearing interest at a floating rate linked to LIBOR plus 1.5% or ABR plus 0.5%[520] - Inflation has not materially affected the Company's operating results, although future inflation could pose risks[521]