On February 27, 2024, Privia Health Group Inc (PRVA, Financial) released its 8-K filing, announcing its financial and operating results for the fourth quarter and full year ended December 31, 2023. The company, a leading technology-driven, national physician-enablement company, has reported a significant increase in revenue and net income, achieving all of its full-year guidance metrics for 2023.
Financial Highlights and Company Growth
Privia Health's total revenue for the year 2023 was $1.657 billion, a 22.2% increase from the $1.357 billion reported in 2022. This growth was driven by strong fee-for-service collections, value-based care performance, and new market growth, which helped offset an approximate $110 million Practice Collections headwind due to the restructuring of a capitation contract. The company's gross profit also saw a healthy increase, rising 17.0% to $353.8 million in 2023 from $302.3 million in the previous year.
Notably, Privia Health turned its net income positive, reporting $23.1 million for 2023, compared to a net loss of $8.6 million in 2022. This improvement was further underscored by a 27.9% increase in non-GAAP adjusted net income to $81.5 million. The company's adjusted EBITDA also grew by 18.7% to $72.2 million, compared to $60.9 million in the prior year, demonstrating strong underlying operational performance.
Operational Success and Market Expansion
Privia Health's operational success in 2023 was marked by a record number of new provider signings, with Implemented Providers growing by 19.4% from year-end 2022. The company maintained a gross provider retention rate of over 98%, reflecting the strength and stability of its provider network. Additionally, Privia Health expanded into three new markets—Connecticut, South Carolina, and Washington—further extending its reach and potential for growth.
The company's Platform Contribution performance was robust, absorbing incremental costs associated with new market entries. The increase in Value-Based Care Attributed Lives by 30.8% to 1.12 million showcases Privia Health's commitment to delivering high-value care and improving patient outcomes.
Looking Ahead to 2024
For 2024, Privia Health has introduced guidance that reflects a strategic focus on increasing density and scale in existing geographies, renegotiating Medicare Advantage capitation arrangements for more favorable contract structures, and achieving operating leverage to drive Adjusted EBITDA growth. The company expects to convert 80% of Adjusted EBITDA to Free Cash Flow and projects an effective tax rate of approximately 27-28%.
Privia Health's balance sheet remains strong, with $389.5 million in cash and cash equivalents at the end of 2023 and no debt. The net cash provided by operating activities for the year was $80.8 million, a 71.2% increase from the prior year, demonstrating the company's efficient cash flow management.
The company's performance in 2023 and its outlook for 2024 reflect its ability to navigate the complexities of the healthcare market while continuing to grow and deliver value to its stakeholders. Privia Health's strategic initiatives and operational execution position it well for sustained success in the evolving healthcare landscape.
For more detailed information on Privia Health's financial results and operational strategies, investors and interested parties are encouraged to review the full 8-K filing.
Privia Health will host a conference call on February 27, 2024, at 8:00 am ET to discuss these results and management’s outlook for future financial and operational performance. The call can be accessed via live webcast at ir.priviahealth.com/news-and-events/events-and-presentations.
For more information on Privia Health and its innovative approach to healthcare, visit priviahealth.com.
Explore the complete 8-K earnings release (here) from Privia Health Group Inc for further details.
