MultiPlan (US:MPLN)2022-05-10 14:58Financial Data and Key Metrics Changes - First quarter revenues were $298 million, up nearly 17% from the prior-year quarter, and in line with fourth quarter 2021 [12][35] - Adjusted EBITDA was $225.4 million, up nearly 18% from the prior-year quarter, and just under 1% from the fourth quarter 2021 [12][43] - Cash flow from operations was $194.9 million, with free cash flow of $170.5 million [13][48] - Adjusted EBITDA margin came in at 75.6%, up 60 basis points from the prior-year quarter [45] Business Line Data and Key Metrics Changes - Analytics-based services grew by 24.8%, while payment and revenue integrity services grew by 17.5%. Network services saw a modest decline of 1.1% [36] - The company generated $5.6 billion in potential identified savings, a growth rate of over 9% from the prior-year [14] Market Data and Key Metrics Changes - The company is currently working on 650 active opportunities, representing over $200 million in annual revenues [22] - In Q1, the company added over 390 opportunities with an estimated annual revenue of $36 million [23] Company Strategy and Development Direction - The company remains focused on investing in new markets and initiatives to drive growth, with a growing set of M&A opportunities [10] - MultiPlan is helping payors and employers navigate the trade-offs between cost efficiency and benefit attractiveness, particularly in a tight labor market [15][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in tracking towards full-year expectations, with robust demand for services and a strong pipeline [9][32] - The company expects continued strong performance in underlying operating results as healthcare utilization normalizes [50] Other Important Information - The company has completed 98 NSA implementations and has 26 more in process, with 41 NSA-related opportunities in the sales pipeline [25][71] - The estimated COVID-related revenue impact in Q1 2022 was approximately $3 million to $5 million, down from previous estimates [39][54] Q&A Session Summary Question: Impact of No Surprises Act on revenues in Q1 - Management indicated that the first quarter did not have a material effect from surprise billing services, with activity starting to increase in April [66] Question: Changes to the composition of Top 10 customers - Management reported no material changes to the composition of the Top 10 customers in terms of revenue for the quarter [67] Question: Progress updates on smaller customers regarding NSA services - Management noted ongoing implementations and visibility into smaller customers, with 98 completed implementations and 26 in process [70][71] Question: Sequential decline in Q2 guidance - Management explained that the sequential decline is expected due to the transition from Q4 data service claims to Q1 claims, along with the anticipated impact of NSA [76][79] Question: NSA headwind assumptions - Management clarified that the guidance assumes the QPA remains primacy, and any changes in regulation would not materially affect NSA revenues [82][84]