Performant Financial (US:PFMT)2021-03-17 01:27Financial Data and Key Metrics Changes - In Q4 2020, the company reported revenues of over $40 million and adjusted EBITDA of $5.1 million, both lower compared to Q4 2019 due to the pandemic's impact on the recovery business [6][15] - For the full year 2020, revenues were nearly $156 million with adjusted EBITDA exceeding $20 million, marking the first time since 2016 that annual adjusted EBITDA surpassed $20 million, compared to $150 million in revenue and negative EBITDA of over $3 million in 2019 [7][16] Business Line Data and Key Metrics Changes - Healthcare revenues in Q4 2020 were $18.9 million, reflecting a 32% growth year-over-year, while full-year healthcare revenues reached $68.5 million, a 58% increase from 2019 [17][18] - Recovery revenues in Q4 2020 were $17.5 million, down 31% year-over-year, and full-year recovery revenues totaled $73.4 million, an 18% decrease compared to 2019 [19][20] Market Data and Key Metrics Changes - The healthcare business accounted for almost half of total revenue in 2020, a significant increase from just 7.5% in 2017, indicating a strong growth trend [11][18] - The recovery operations accounted for 47% of total revenue for the first time, reflecting the growth of the healthcare business and COVID-19 related impacts [12] Company Strategy and Development Direction - The company is focusing its long-term strategy on growing its healthcare business, having successfully taken market share from incumbents and proving the superiority of its technology platform [25][26] - The company anticipates that healthcare revenues will drive the majority of overall company revenue and growth moving forward, while recovery business revenues are expected to decline [12][27] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the pandemic's significant impact on operations but expressed confidence in the long-term prospects of the company, expecting to continue reporting positive EBITDA [27] - The company is not providing a detailed outlook for 2021 due to uncertainties surrounding recovery operations but remains optimistic about growth in healthcare markets [27] Other Important Information - The company launched 10 new healthcare programs in Q4 2020, indicating ongoing expansion and diversification within its service offerings [10] - Operating expenses in Q4 2020 were $36.3 million, a decrease of $9.8 million from the prior year, attributed to reduced headcount and expense restructuring [23] Q&A Session Summary - The Q&A session did not contain specific questions or answers as the call concluded with acknowledgments from management [30][31]