On September 10, 2024, InnovAge Holding Corp (INNV, Financial) released its 8-K filing announcing financial results for the fourth quarter and fiscal year ended June 30, 2024. InnovAge Holding Corp is a healthcare delivery platform focused on providing all-inclusive, capitated care to high-cost, dual-eligible seniors through its Program of All-inclusive Care for the Elderly (PACE). The company aims to improve the quality of care while reducing over-utilization of high-cost care settings such as hospitals and nursing homes.
Performance Overview
For the fourth quarter, InnovAge reported total revenues of $199.4 million, surpassing the analyst estimate of $191.49 million. However, the company posted a net loss of $2.3 million, translating to a loss per share of $0.01, which was better than the estimated loss per share of $0.03.
For the full fiscal year 2024, InnovAge achieved total revenues of $763.9 million, an 11% increase compared to $688.1 million in 2023. The company reported a net loss of $23.2 million, a significant improvement from the net loss of $43.6 million in the previous year. The net loss per share for the year was $0.16, compared to $0.30 in 2023.
Key Financial Achievements
InnovAge's financial achievements for the fiscal year 2024 include:
- Total revenue of $763.9 million, up 11% year-over-year.
- Loss before income taxes of $21.8 million, a 57% improvement from the previous year's loss of $50.8 million.
- Net loss margin improved to 3.0% from 6.3% in 2023.
- Center-level Contribution Margin increased by 30.4% to $132.1 million.
- Adjusted EBITDA of $16.5 million, a significant turnaround from negative $3.4 million in 2023.
Income Statement Highlights
| Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Total Revenues | $199.4M | $176.9M | $763.9M | $688.1M |
| Net Loss | $(2.3M) | $(12.0M) | $(23.2M) | $(43.6M) |
| Net Loss per Share | $(0.01) | $(0.09) | $(0.16) | $(0.30) |
| Adjusted EBITDA | $5.2M | $(0.3M) | $16.5M | $(3.4M) |
Balance Sheet and Cash Flow
As of June 30, 2024, InnovAge reported total assets of $547.7 million, compared to $567.4 million in the previous year. The company's cash and cash equivalents stood at $56.9 million, down from $127.2 million in 2023. Total liabilities were $247.9 million, slightly down from $252.6 million in the previous year.
Net cash used in operating activities was $36.9 million, compared to net cash provided by operating activities of $20.2 million in 2023. Net cash used in investing activities was $26.4 million, primarily due to purchases of property and equipment and acquisitions.
Commentary and Analysis
"We outlined an ambitious agenda last year focused on quality, compliance, and operational excellence and believe we delivered," said President and CEO Patrick Blair. "We are proud of the strong year-over-year financial results – and the positive momentum – as we move into the next phase of responsible growth and margin recapture."
InnovAge's performance in fiscal year 2024 demonstrates significant improvement in key financial metrics, reflecting the company's focus on operational excellence and quality care. The increase in revenue and reduction in net loss are positive indicators for the company's future growth and stability. However, the company still faces challenges, including managing costs and improving cash flow, which will be crucial for sustained success in the competitive healthcare industry.
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from InnovAge Holding Corp for further details.
