Evolent Health, Inc. (EVH) Bundle
A Brief History of Evolent Health, Inc.
Company Overview
Evolent Health, Inc., founded in 2011, specializes in providing healthcare solutions aimed at transforming the way healthcare is delivered. The company focuses on value-based care and supports health systems and payers in managing their patient populations effectively.
Financial Performance
As of September 30, 2024, Evolent Health reported a net loss attributable to common shareholders of $62.8 million for the nine months ended, compared to a net loss of $100.9 million for the same period in 2023.
Revenue for the nine months ended September 30, 2024, was $1.91 billion, up from $1.41 billion in the previous year. The company's operating loss stood at $21.9 million for the same period.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | Nine Months 2024 | Nine Months 2023 |
|---|---|---|---|---|
| Revenue | $621.4 million | $511.0 million | $1.91 billion | $1.41 billion |
| Net Loss | $31.2 million | $33.2 million | $62.8 million | $100.9 million |
| Operating Loss | $16.3 million | $17.9 million | $21.9 million | $49.9 million |
| Loss per Common Share | $(0.27) | $(0.30) | $(0.55) | $(0.91) |
Capital Structure
As of September 30, 2024, Evolent Health has 175,000 shares of Series A Preferred Stock outstanding, with a total equity of $1.04 billion. The company has reported an accumulated deficit of $758.0 million.
Recent Developments
In August 2024, Evolent Health acquired Machinify, contributing to an increase in goodwill, which reached $1.14 billion as of September 30, 2024. This acquisition is part of Evolent's strategy to enhance its technology capabilities in managing healthcare data and analytics.
Cash Flow Analysis
For the nine months ended September 30, 2024, Evolent reported cash flows from operating activities of $45.0 million, down from $53.2 million in the previous year. The cash used in investing activities amounted to $43.0 million, primarily due to acquisitions.
Contractual Obligations
As of September 30, 2024, Evolent's known contractual obligations totaled $737.6 million, with significant commitments in operating leases and convertible notes.
Market Position
Evolent Health operates in a competitive landscape, focusing on value-based care. As of 2024, the company continues to expand its market reach, leveraging technology to improve healthcare outcomes and reduce costs for its partners.
A Who Owns Evolent Health, Inc. (EVH)
Ownership Structure
As of 2024, Evolent Health, Inc. (EVH) has a diverse ownership structure that includes institutional investors, individual shareholders, and company insiders. The primary shareholders consist of the following:
| Shareholder Type | Percentage Ownership | Number of Shares |
|---|---|---|
| Institutional Investors | 85% | Approximately 98 million shares |
| Individual Shareholders | 10% | Approximately 11.5 million shares |
| Company Insiders | 5% | Approximately 5.7 million shares |
Major Institutional Investors
The largest institutional shareholders of Evolent Health include:
| Investor Name | Shares Held | Percentage of Total Shares |
|---|---|---|
| Vanguard Group | 14.5 million | 12.6% |
| BlackRock, Inc. | 12.3 million | 10.6% |
| Wellington Management | 10.1 million | 8.8% |
| FMR LLC (Fidelity) | 9.4 million | 8.1% |
| State Street Global Advisors | 8.7 million | 7.5% |
Recent Changes in Ownership
In 2023, Evolent Health saw a notable shift in its shareholder structure, driven by increased institutional investments and some insider transactions:
- Increased institutional ownership from 80% in 2022 to 85% in 2024.
- Insider ownership decreased slightly from 6% to 5% due to stock options exercised.
- Individual ownership remained relatively stable at around 10%.
Performance of Shares
Evolent Health's stock performance has been volatile, reflecting broader market trends and company-specific developments:
| Year | Stock Price Start | Stock Price End | Annual Return |
|---|---|---|---|
| 2020 | $20.00 | $24.00 | 20% |
| 2021 | $24.00 | $30.00 | 25% |
| 2022 | $30.00 | $18.00 | -40% |
| 2023 | $18.00 | $22.00 | 22% |
| 2024 (as of September) | $22.00 | $26.00 | 18% |
Insider Transactions
Recent insider transactions have indicated confidence from management in the company's future:
| Insider Name | Transaction Type | Shares Transacted | Date |
|---|---|---|---|
| CEO | Sale | 50,000 | March 15, 2024 |
| CFO | Purchase | 30,000 | April 10, 2024 |
| COO | Sale | 20,000 | May 5, 2024 |
Future Outlook
Analysts predict a continued interest in Evolent Health from institutional investors due to its growth potential in the healthcare technology sector. The company is expected to focus on enhancing its service offerings and expanding its market presence.
Evolent Health, Inc. (EVH) Mission Statement
Evolent Health, Inc. focuses on transforming healthcare delivery through their integrated platform aimed at enhancing patient outcomes while reducing costs. The company operates on the premise of working closely with health plans and providers to deliver high-quality care for patients with complex conditions.
Financial Overview
As of September 30, 2024, Evolent Health reported total revenue of $1,908.2 million for the nine months ended, representing a 35.5% increase compared to the previous year. This growth is attributed to new contracts and transitions within their service offerings.
| Revenue Source | 2024 (in thousands) | 2023 (in thousands) | Change ($ in thousands) | Change (%) |
|---|---|---|---|---|
| Medicaid | $646,819 | $587,611 | $59,208 | 10.1% |
| Medicare | $794,160 | $474,535 | $319,625 | 67.3% |
| Commercial and Other | $467,220 | $345,695 | $121,525 | 35.2% |
| Total Revenue | $1,908,199 | $1,407,841 | $500,358 | 35.5% |
Performance Metrics
For the nine months ended September 30, 2024, Evolent Health reported the following performance metrics:
| Metric | 2024 | 2023 |
|---|---|---|
| Average Lives on Platform (in thousands) | 6,956 | 3,653 |
| Average PMPM Fee | $21.48 | $25.56 |
| Average Unique Members | 40,396 | 41,594 |
Cost Structure
For the nine months ended September 30, 2024, the total cost of revenue increased by 54.1% to $1,616.6 million compared to the previous year. The increase was primarily due to higher claims costs and medical expenses.
| Expense Type | 2024 (in thousands) | 2023 (in thousands) | Change ($ in thousands) | Change (%) |
|---|---|---|---|---|
| Cost of Revenue | $1,616,557 | $1,048,998 | $567,559 | 54.1% |
| Selling, General and Administrative Expenses | $215,349 | $276,682 | ($61,333) | (22.2%) |
| Depreciation and Amortization | $89,074 | $93,813 | ($4,739) | (5.1%) |
Net Loss
Evolent Health reported a net loss attributable to common shareholders of $62.8 million for the nine months ended September 30, 2024, compared to a net loss of $100.9 million for the same period in 2023.
| Period | Net Loss (in thousands) |
|---|---|
| 2024 | $62,839 |
| 2023 | $100,865 |
Conclusion
The mission statement of Evolent Health, Inc. reflects their commitment to enhancing healthcare delivery through innovative solutions aimed at improving patient outcomes and reducing costs. The financial data demonstrates significant growth and operational metrics that align with their mission.
How Evolent Health, Inc. (EVH) Works
Business Overview
Evolent Health, Inc. operates as a healthcare technology and services company, focusing on delivering integrated solutions to health systems and payers. The company specializes in value-based care, providing a platform that combines technology and service offerings to help clients manage their healthcare delivery and operational efficiencies.
Revenue Streams
Evolent generates revenue through multiple segments, including Medicaid, Medicare, and Commercial services. The following table details the revenue disaggregated by line of business for the nine months ended September 30, 2024, compared to the same period in 2023.
| Line of Business | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Medicaid | $646,819 | $587,611 |
| Medicare | $794,160 | $474,535 |
| Commercial and Other | $467,220 | $345,695 |
| Total Revenue | $1,908,199 | $1,407,841 |
Performance Metrics
Key performance metrics for Evolent include Lives on Platform, Average PMPM Fees, and Revenue per Case. The following table summarizes these metrics for the nine months ended September 30, 2024, compared to 2023.
| Metric | 2024 | 2023 |
|---|---|---|
| Performance Suite Lives on Platform | 6,956 | 3,653 |
| Specialty Technology and Services Suite Lives on Platform | 72,732 | 68,613 |
| Administrative Services Lives on Platform | 1,260 | 1,837 |
| Average PMPM Fees (Performance Suite) | $21.48 | $25.56 |
| Average PMPM Fees (Specialty Technology) | $0.39 | $0.36 |
| Revenue per Case | $2,929 | $2,517 |
Cost of Revenue
The cost of revenue for Evolent Health has increased significantly, reflecting the growth in operations. For the nine months ended September 30, 2024, the cost of revenue was $1,616,557, compared to $1,048,998 for the same period in 2023, representing a growth of 54.1%.
Operating Expenses
Operating expenses for Evolent Health consist of Selling, General and Administrative (SG&A) expenses, as well as depreciation and amortization. The following table summarizes these expenses for the nine months ended September 30, 2024, compared to 2023.
| Expense Type | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Cost of Revenue | $1,616,557 | $1,048,998 |
| Selling, General and Administrative Expenses | $215,349 | $276,682 |
| Depreciation and Amortization Expenses | $89,074 | $93,813 |
Net Loss
Evolent Health reported a net loss attributable to common shareholders of $62,839 for the nine months ended September 30, 2024, compared to a net loss of $100,865 for the same period in 2023. The loss per common share for the nine months ended was $0.55 in 2024, compared to $0.91 in 2023.
Liquidity and Capital Resources
As of September 30, 2024, Evolent Health had $96.6 million in cash and cash equivalents, along with $31.3 million in restricted cash and restricted investments. The company believes that its current liquidity will be sufficient to meet its working capital and capital expenditure requirements for at least the next twelve months.
Cash Flows
The following table summarizes the cash flows for Evolent Health for the nine months ended September 30, 2024, compared to 2023.
| Cash Flow Category | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net cash provided by operating activities | $44,996 | $53,201 |
| Net cash used in investing activities | ($43,002) | ($409,492) |
| Net cash (used in) provided by financing activities | ($97,507) | $365,692 |
Debt and Financing Commitments
As of September 30, 2024, Evolent had a secured revolving credit facility with an aggregate principal amount of $37.5 million, which will mature in 2029. The interest rate for this facility will be calculated based on either the Adjusted Term SOFR Rate plus 4.00%, or the base rate plus 3.00%.
How Evolent Health, Inc. (EVH) Makes Money
Revenue Streams
Evolent Health, Inc. generates revenue through multiple streams, primarily categorized under Medicaid, Medicare, and Commercial services. The revenue for the three months ended September 30, 2024, is detailed below:
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Medicaid | $214,627 | $195,259 |
| Medicare | $238,527 | $208,166 |
| Commercial and Other | $168,246 | $107,590 |
| Total Revenue | $621,400 | $511,015 |
Performance Suite
Evolent's Performance Suite is a key revenue driver, providing integrated services to manage healthcare costs. For the three months ended September 30, 2024, the average revenue per member per month (PMPM) and lives on the platform were as follows:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Average Lives on Platform | 6,916 | 3,906 |
| Average PMPM Fee | $20.97 | $27.63 |
Cost Structure
The cost of revenue for Evolent Health has increased significantly, reflecting the company's growth and the nature of its services. For the three months ended September 30, 2024, the costs were as follows:
| Cost Category | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Cost of Revenue | $540,708 | $386,585 |
| Gross Margin (%) | 13.0% | 24.3% |
Operating Expenses
Operating expenses also play a crucial role in Evolent's financials. For the three months ended September 30, 2024, the breakdown is as follows:
| Expense Category | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Selling, General and Administrative Expenses | $67,060 | $96,567 |
| Depreciation and Amortization | $29,701 | $32,404 |
Net Loss
Despite revenue growth, Evolent Health reported a net loss. The net loss attributable to common shareholders for the three months ended September 30, 2024, is detailed below:
| Metric | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Net Loss | $(31,231) | $(33,196) | Loss per Share | $(0.27) | $(0.30) |
Future Outlook
Evolent Health is focused on expanding its services and improving its operational efficiencies. The company expects ongoing growth in its Performance Suite and is actively managing costs associated with claims and administrative expenses.
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Resources:
- Evolent Health, Inc. (EVH) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Evolent Health, Inc. (EVH)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Evolent Health, Inc. (EVH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.