Privia Health (US:PRVA)2021-05-28 03:39Financial Data and Key Metrics Changes - In Q1 2021, Practice Collections increased by 5.1% year-over-year, while Care Margin rose by 9.7% [15][18] - Platform Contribution grew by 25.9% year-over-year, and adjusted EBITDA increased by 41% [19] - Adjusted EBITDA margin as a percentage of Care Margin expanded by 420 basis points year-over-year to reach 18.9% [19] Business Line Data and Key Metrics Changes - The company continues to add Attributed Lives across various value-based programs while growing the number of providers in existing markets [16] - The growth in Implemented Providers and value-based Attributed Lives contributed to the increase in Practice Collections [17] Market Data and Key Metrics Changes - The company expects to increase the number of Implemented Providers by 11.8% to 13.7% and value-based Attributed Lives by 7% to 10% in 2021 [20] - Practice Collections are projected to grow by 11.1% to 12.6% year-over-year, reaching between $1.445 billion and $1.465 billion for 2021 [20] Company Strategy and Development Direction - The company aims to grow organically by increasing the number of providers and patient panels while expanding into new markets [12] - The strategy includes moving markets to value-based care and capitalizing on white space opportunities by adding new providers and ancillary services [12] - The company is focused on maintaining a capital-light financial model while being open to acquiring stakes in medical practices when appropriate [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business momentum and outlook for the remainder of 2021, citing strong first-quarter results [20] - The leadership team emphasized the importance of transitioning practices to partial and full risk models to align with value-based care [14] Other Important Information - The company reported a pro forma cash balance of approximately $294 million at the end of Q1, with a net cash position of about $216 million [22] - The effective tax rate is expected to be in the range of 25% to 27% for the full year [22] Q&A Session Summary Question: Timeline for shifting to full risk arrangements - Management indicated that while they currently take downside risk in many contracts, full risk arrangements are expected to be more feasible in 2022-2023 [26][29] Question: Differentiation of the company's model - Management highlighted the unique aspects of their model, including the ability to support all providers and patients across various reimbursement models, which attracts physicians [33][35] Question: Competitive landscape and collaboration agreements - Management acknowledged competition from various players but emphasized their broad solution set and flexibility, which allows them to cater to different types of practices [71][75] - The collaboration agreement with Anthem is non-exclusive, allowing the company to work with multiple payers [76] Question: Drivers of divergence in Practice Collections and Revenue growth rates - Management explained that the divergence is influenced by the mix of states with Corporate Practice Laws and the impact of a practice leaving the platform [81][83]