On November 2, 2023, Evolent Health Inc (EVH, Financial) announced its financial results for the quarter ended September 30, 2023. The company reported a significant increase in revenue and specialty care offerings, despite a net loss for the quarter.
Financial Performance
Evolent's Q3 2023 revenue was $511.0 million, marking a 44.9% increase from the $352.6 million reported in the same period last year. The company's specialty care offerings (revenue excluding revenue from administrative services) grew by 80% compared to Q3 2022. However, the company reported a net loss of $33.2 million, resulting in a net loss margin of (6.5)%.
Key Financial Metrics
The company's Adjusted EBITDA for the quarter was $48.7 million, resulting in an Adjusted EBITDA margin of 9.5%. Total Lives on Platform increased significantly to 78.1 million, up from 19.5 million in Q3 2022. The company managed 15.0 thousand cases during the quarter for case-based products, yielding an average per case revenue of $2,490.
Commercial Arrangements and Future Outlook
Evolent announced several new commercial arrangements, including plans to launch a cardiology Performance Suite with Florida Blue for their Medicare Advantage population in Q1 2024. The company also added two new complex care provider agreements. Seth Blackley, CEO of Evolent, stated,
We exceeded expectations for profitability, new business development, and cash flow in the quarter and we are tracking well towards our financial goals for 2023 and beyond."
Guidance for Q4 2023 and Full Year 2023
For Q4 2023, Evolent expects revenue to be in the range of approximately $537 million to $557 million, and Adjusted EBITDA to be in the range of approximately $45 million to $53 million. For the full year 2023, the company is raising its Adjusted EBITDA guidance, with revenue expected to be in the range of approximately $1.945 billion to $1.965 billion and Adjusted EBITDA expected to be in the range of approximately $192 million to $200 million.
Explore the complete 8-K earnings release (here) from Evolent Health Inc for further details.