Performant Financial (US:PFMT)2022-05-10 00:43Financial Data and Key Metrics Changes - In Q1 2022, the company reported total revenues of $27.1 million, with healthcare revenues of $23.4 million, marking a 75% increase compared to the same period last year [10][20] - Adjusted EBITDA for Q1 was $0.3 million, compared to a loss of $0.2 million in the prior year, indicating improved financial performance [23] - Operating expenses in Q1 were $28.6 million, which was $5.9 million lower than Q1 of the previous year [28] Business Line Data and Key Metrics Changes - Healthcare revenues reached $23.4 million, driven by strong growth from implemented statements of work and new program implementations [9][20] - Claims auditing revenues were $9.2 million, an increase of over 70% from $5.4 million in Q1 2021 [25] - Eligibility services revenues were $14.2 million, representing an 80% increase from $7.9 million in the same quarter last year [26] Market Data and Key Metrics Changes - The company anticipates continued growth in healthcare revenues, projecting $92 million to $96 million for 2022 [32] - Customer care outsource services revenues were flat at $3.6 million, impacted by the federal student loan payment pause [21] Company Strategy and Development Direction - The company is focused on executing its growth strategy while adapting to hiring challenges in a competitive market [18] - The recent contract awards, including the HHS OIG IDIQ Contract and the Medicare Recovery Audit program, are expected to enhance the company's capabilities and market position [7][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery from COVID-related restrictions and the potential for increased utilization rates [10][31] - The company remains cautious about the macroeconomic environment and its impact on larger Managed Care Organizations (MCOs) [31] Other Important Information - The company is currently navigating the appeal process for the Region 2 contract, which is under review by CMS [12][44] - The hiring strategy has been adjusted to meet the demands of new contracts, particularly for skilled nurses and coders [18] Q&A Session Summary Question: Can you discuss the cadence of revenue growth throughout the year? - Management indicated that Q1 results were strong, but they expect sequential growth to be more pronounced in the second half of the year [36] Question: Are there any larger contracts expiring this year? - Management confirmed that there are no larger contracts expiring this year, as most contracts are on auto-renewal [37] Question: What is the status of the OIG contract? - Management stated that it is still early to provide detailed insights, but they are operationalizing the contract with expectations for revenue in 2023 [42] Question: How does winning high-profile contracts affect the sales pipeline? - Management noted that such contracts enhance visibility and credibility, positively impacting the sales pipeline [50] Question: What implications does Anthem's loss of a large hospital have for commercial opportunities? - Management highlighted that managing a comprehensive payment integrity program is complex, presenting opportunities for the company to provide these services [53]