Q1 2024 Earnings Summary
Reported on May 9, 2024 (After Market Close)
Pre-Earnings Price$26.96Last close (May 9, 2024)
Post-Earnings Price$26.24Open (May 10, 2024)
Price Change
$-0.72(-2.67%)
- Evolent is on track to achieve a $300 million exit run rate adjusted EBITDA by the end of 2024, indicating strong growth in profitability. The company confirmed that while Q4 may be a little under this target and Q1 a little over, it remains confident in reaching this goal.
- The company expects $150 million or more in operating cash flow for the year, affirming strong cash generation, with cash building across the year.
- Evolent is benefiting from strong demand for its products, driven by pressure on payers, allowing it to continue to take market share and grow. The company has announced 7 new agreements year-to-date, contributing to growth.
- Evolent Health faces uncertainty in its Performance Suite profitability due to elevated medical utilization and lower claims data visibility, which could lead to higher medical expenses and impact adjusted EBITDA if these trends persist.
- Medicaid redeterminations have resulted in a cumulative $5.5 million per quarter headwind to adjusted EBITDA, and with the process not yet fully complete, further declines may occur, impacting the company's financial performance.
- The potential loss of Molina's Florida Medicaid contract could reduce Evolent's revenue by up to $15 million, highlighting customer concentration risk and the impact of client-specific developments on the company's top line.
Research analysts covering Evolent Health.