Privia Health (US:PRVA)2022-05-14 17:36Financial Data and Key Metrics Changes - Practice collections increased to $561.9 million, up 63.3% year-over-year [22][10] - Adjusted EBITDA reached a record $14.8 million, up 48.8% compared to the same period last year [23][10] - Care margin increased by 36.4%, with adjusted EBITDA margin as a percentage of care margin rising 180 basis points to 20.7% [23][24] Business Line Data and Key Metrics Changes - Capitated revenue was reported at $48.3 million in Q1 2022, contributing to the overall practice collections [22][31] - The company added a solid number of new providers in existing markets, maintaining a high level of provider retention [12][10] Market Data and Key Metrics Changes - The company now has 3,370 implemented providers caring for over 3.8 million patients across 870 practice locations in eight states and the District of Columbia [17][10] - The number of attributed lives under at-risk payer contracts increased by 17.6% year-over-year, covering approximately 848,000 lives [20][10] Company Strategy and Development Direction - Privia Health aims to build one of the largest primary care-centric ambulatory care delivery networks in the U.S., partnering with various provider types and participating in value-based arrangements [14][10] - The introduction of Privia Care Partners allows for a partnership model with provider practices looking to engage in risk-bearing entities [15][10] Management's Comments on Operating Environment and Future Outlook - Management expressed high confidence in growth outlook for 2022 and beyond, driven by strong operational execution and clinical performance [9][10] - The company anticipates continued momentum in practice collections and EBITDA growth, with expectations for practice collections and care margin to be at the high end of guidance ranges [24][10] Other Important Information - The company ended Q1 with a net cash position of over $283 million, indicating strong financial flexibility to support growth initiatives [26][10] - Management emphasized the importance of maintaining a solid balance sheet and positive annual free cash flow [25][10] Q&A Session Summary Question: What portion of practice collections was from value-based care? - Management confirmed that the total value-based care portion would be higher than the reported $48.3 million from capitated revenue, with shared savings also contributing [30][33] Question: How many providers are sold but not yet implemented? - Management indicated that it takes about five to six months to implement providers, and they have visibility through the end of the year with a robust pipeline [35][37] Question: What is the expected trend for capitated lives in Medicare Advantage? - Management stated that they expect to grow the number of capitated lives year-over-year, with a stable trend anticipated for the rest of the year [41][42] Question: How is cash flow expected to trend throughout the year? - Management noted that Q1 typically shows negative cash flow due to timing issues, but they expect cash flow to improve throughout the year [45][46] Question: What are the key drivers for care margin growth? - Management explained that care margin is expected to trend upwards, with true-ups for prior periods likely contributing to increases later in the year [80][81] Question: How is the company managing inflation and rising costs? - Management acknowledged that while inflation affects all providers, their model is attracting more physicians seeking autonomy and support, which is driving growth [113][114]