Executive Summary

Q3 revenue of $230.5M and adjusted EBITDA of $141.6M came in at the low end of guidance; management tightened FY24 outlook, lowering revenue to $930–$940M and narrowing adjusted EBITDA to $580–$590M .
Identified potential savings hit a record $6.4B (+10% YoY; +3% QoQ), while revenue yield declined modestly; management attributed pressure primarily to mix and one specific client, with no material contract changes .
A non-cash impairment of $361.6M (goodwill and indefinite-lived intangibles) drove GAAP net loss to $(391.5)M; YTD impairments total ~$1.4B .
FY24 guidance tightening and capital structure extension discussions are key stock catalysts; management expects Q4 to run similar to Q3 and will update 2025 outlook at year-end call .

What Went Well and What Went Wrong

What Went Well
- Record identified potential savings of $6.4B; volumes improved across commercial health plans, with billed charges up 3% sequentially and 11% YoY; savings up 3% sequentially and 10% YoY .
- Strategic wins: 4 new client logos, 165 closed opportunities; deepened engagements (Sanford Health Plan IVR automation; alliance with National Rural Health Association with 4 pilot sites) .
- Cost discipline: adjusted EBITDA margin of 61.5%; CFO outlined 10–20% multi-year cost base efficiency opportunity via tech modernization, ERP, footprint rationalization, and GM model .
What Went Wrong
- Revenue yield deterioration: ~15bps sequential decline overall; PSAV yield down ~~8bps (~~$2M revenue impact), driven by price/mix, offsetting positive volume; no client contract changes .
- Continued GAAP losses due to non-cash impairments: Q3 charge of $361.6M; nine months total expenses reflect cumulative impairments of $1.43B .
- FY24 guidance cut again: revenue trimmed to $930–$940M (from $935–$955M) and adjusted EBITDA narrowed to $580–$590M, reflecting “more reasonable run rate” and yield volatility .

Financial Results

Metric	Q1 2024	Q2 2024	Q3 2024
Revenue ($USD Millions)	$234.5	$233.5	$230.5
Adjusted EBITDA ($USD Millions)	$146.8	$146.7	$141.6
Adjusted EBITDA Margin (%)	—	62.8%	61.5%
Net Loss ($USD Millions)	$(539.7)	$(576.7)	$(391.5)
Diluted EPS ($USD)	$(0.83)	$(0.89)	$(24.25) (post 1:40 split)

Note: MPLN effected a 1-for-40 reverse split on Sept 20, 2024; Q3 EPS reflects post-split presentation while Q1–Q2 reflect pre-split .

Year-over-Year (Q3 vs Q3):

Metric	Q3 2023	Q3 2024
Revenue ($USD Millions)	$242.8	$230.5
Adjusted EBITDA ($USD Millions)	$152.3	$141.6
Net Loss ($USD Millions)	$(24.1)	$(391.5)

Segment/Service-Line Trends (directional change):

Service Line	YoY Change (%)	QoQ Change (%)
Network-based	-18.8%	+0.9%
Analytics-based	-0.4%	-1.4%
Payment & Revenue Integrity	-3.4%	-4.4%

Key Operating KPIs:

KPI ($USD Billions)	Q1 2024	Q2 2024	Q3 2024
Billed Claim Charges	$41.5	$45.3	$44.7
Identified Potential Savings	$5.7	$6.2	$6.4

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2024	$935M–$955M	$930M–$940M	Lowered (tightened down)
Adjusted EBITDA	FY 2024	$580M–$595M	$580M–$590M	Narrowed (top end reduced)
Interest Expense	FY 2024	$320M–$330M	Unchanged	Maintained
Cash Flow from Operations	FY 2024	$135M–$150M	$135M–$145M	Narrowed (lowered top end)
Capital Expenditures	FY 2024	$120M–$130M	Unchanged	Maintained
Depreciation	FY 2024	$80M–$90M	Unchanged	Maintained
Amortization of Intangibles	FY 2024	$345M–$350M	Unchanged	Maintained
Effective Tax Rate	FY 2024	25%–28%	Unchanged	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2 2024)	Current Period (Q3 2024)	Trend
Technology/AI and platform modernization	Focus on transformation and underutilized tech assets; COO added to enhance operating/product capabilities	Modernize data foundry, cloud-native products, cloud ERP go-live 1H25; GM model; automation initiatives (IVR)	Improving execution
Utilization environment	Q1 claims flow disrupted by clearinghouse cybersecurity incident ; Q2 volumes up	Utilization strong across hospitals and surgery; positive for forward volumes given claims lag	Improving/healthy
Revenue yield (take rate)	Q2: volatility in revenue yield and slower-than-anticipated sales	Yield down ~15bps sequentially; PSAV down ~~8bps (~~$2M impact); price/mix offset volume; no contract changes	Stabilizing near current run rate
Regulatory/legal posture	Stakeholder/policy engagement strategy to defend business, protect reputation	Verity decision encouraging; cases centralized in N.D. Illinois; motion to dismiss targeted mid-Jan; supports NSA transparency	Active defense
Capital structure & leverage	Q1: debt repurchases ($24.4M face)	Active lender talks to extend maturities; total/operating leverage 7.6x/5.5x; prioritize organic investments and deleveraging	Extension in progress
Product/market expansion	Emphasis on analytics, networks, PRI; alignment to drive growth	BenInsights traction; provider market push; NRHA alliance; Sanford automation; Vision 2030 roadmap	Building momentum
Macros (IV shortages)	—	No major Q4 disruption observed so far; monitoring	Neutral

Management Commentary

“Our third quarter results were within our guidance range… reaching $6.4 billion in identified potential savings, a record quarterly achievement” — CEO Travis Dalton .
“We plan to modernize our data and technology platforms… build cloud-native products… deploy a modern cloud-based ERP system… reduce our physical facility footprint by roughly 60%” — CFO Doug Garis .
“We’re tightening our full year revenue guide to between $930 million and $940 million… and narrowing our adjusted EBITDA guide range to between $580 million and $590 million” — CFO .
“We believe these legal claims against us are without merit… cases… centralized into the Northern District of Illinois… intend to file our motion to dismiss likely in mid-January” — CEO .

Q&A Highlights

Guidance trajectory and run-rate: Results landed within range; narrowed FY guide to reflect current run-rate; efficiency programs expected to support margins; no fundamental business changes in the last 3 months .
Specific client headwind: ~~3% revenue (~~$15M/quarter) impact persists; excluding this, revenues would be up YoY; no new material client headwinds; no material rate/contract changes .
Take rate trajectory: Yield has likely stabilized near current levels; quarter-to-quarter mix/one-time factors can affect prints; management not calling a nadir but sees a reasonable run-rate .
Macro/operations: IV shortage impact not material at this time; monitoring Q4 seasonality and utilization trends .
Capital structure: Active lender discussions to extend maturities; cannot share details during talks; first funded debt maturity October 2027 .

Estimates Context

S&P Global consensus estimates for Q3 2024 were unavailable in our dataset for MPLN, preventing direct beat/miss analysis versus Wall Street expectations. We anchor comparisons to company guidance instead [GetEstimates error].

Key Takeaways for Investors

Q3 operational momentum in volumes and identified savings was offset by yield/mix pressure; management expects Q4 to be similar and tightened FY24 revenue/EBITDA guidance accordingly .
The impairment charge is non-cash but large; monitor future impairment risk and how Vision 2030 modernization may support long-term asset values and cash generation .
Efficiency program is meaningful (10–20% cost base opportunity) and, if executed, could underpin margin resilience despite yield pressure; watch ERP and platform milestones in 1H25 .
Client concentration risk remains a near-term factor; excluding the impacted client, trends look better; monitor new logo momentum and provider-market initiatives (NRHA pilots, IVR automation) for offset .
Capital structure extension talks are a central 2025–2027 catalyst; leverage 7.6x total and 5.5x operating underscores importance of execution on deleveraging and growth .
With S&P Global consensus unavailable, trading setups hinge on guidance, yield stabilization, and updates on legal proceedings (motion to dismiss mid-Jan) .
Near term: expect range-bound fundamentals into Q4; medium term: Vision 2030 execution and product cycle (BenInsights, data science) are the core thesis variables .

References: Q3 2024 8-K press release ; Q3 2024 earnings call transcript ; Q2 2024 8-K ; Q1 2024 8-K .

MultiPlan Corp (MPLN)·Q3 2024 Earnings Summary