EVH - Earnings call transcript Q1 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome to Evolent Health's Earnings Conference. Call for the first quarter ended March 30, 2022.

As a reminder, with conference call is being recorded, your hosts for the call today from Evolent Health, our Seth Blackley, Chief Executive Officer, and John Johnson, Chief Financial Officer. This call will be archived and available beginning later this evening via the webcast on the company's Investor Relations website, which can be found ir.evolenthealth.com. I will now hand the call to Seth Frank. Investor of President Vice Relations. Evolent's Please go ahead.

Seth Frank

cause and forward-looking statements you are experience and to uncertainties that or Commission, in good that from differ present laws. evening. contain will subject could uncertainties and with are call description conference risks results and the of under historical filings. statements to materially This These Thank actual the federal including in included found periodic Securities the some A be current the Exchange cautionary filed our statements expectations. risks and of can Company's reports U.S.

on Company's earlier information today. additional outlook, For issued first the please its refer to release and press quarter results

issued with press ir.evolenthealth.com, Company's posted the are the measures of company Finally, during direct the to Form today's available release the as Investor in our the summary today. website, the call measures and most in today or available of Relations presentation website, Relations Investor reminder, a the the of section earlier and in non-GAAP SEC, discussed by the GAAP section reconciliations filed comparable Company's on X-K

During that management's in Evolent's ir.evolenthealth.com. be we Seth presentation available presentation earnings GAAP to CEO, reference Events a now of on And our like Blackley. as as summary can release, well found the I'd over and call figures the and and non-GAAP website, turn certain section discussion, metrics will Evolent's to

Seth Blackley

I'll our our in start Good numbers John evening, quarter guidance. summarizing and discuss priorities. call. X and you detail share by on will the Thank more our discuss operating core everyone. joining for results first updated progress the

close will the Q&A. As always, we

of heels margin marks for successful quarter with of the strategic year the growth, Company to Turning the results, our first and innovation. continued a XXXX product a on expansion, strong the beginning

XXXX. Significant points in X.X%, through growth XXXX, quarter $XX.X to growth total a We QX to reported XXXX. delivered which Partners grew growth Its grew resulted Century out-sized the with XX% balanced driven $XX and XX.X Revenue constitute ago. to Partners, Health was from million Century continued go administrative the outlook the our in our quarter reporting million. want one-year QX EBITDA XX% take on growth EBITDA, quarter and million, compared million, of the enterprise combined Evolent Solutions margin first lives high all New of $XXX highlights of of XXXX. flow from expansion over over and Evolent of first year-over-year, Growth $XX was to million, a success. of basis to high the revenue our is the XX% also primarily million XXX revenue clinical XX% XX%. $XXX.X adjusted platforms Adjusted million New Clinical EBITDA segment ended we moment deeper New quarter QX Services, for outlook which by into Health. from a For perspective. Evolent XXXX revenue guidance end Century first segment covering growth to compared at quarter little exceeded to $XXX bit X.X% our XX.X range end the Health together Health Care quarter the I Relatively for while Care We to of for across was Evolent adjusted segment. of

dynamics at growth growth we The ahead two continued in driving given strong area the New what Century. that and business. strong significant believe that Specifically, be to our in growth potential

the one the addition The platform. to first lives new is of

product and partners. there population U.S. with addition approximately and Century large today of expansion to revenue New the X% logos geographic new of so add a opportunity the existing touches and margin remains only and to client

mostly in of clients country New million those a serves but And and the Technology suite approximately For across Century lives cover only the example, those XX Services opportunity. XX New largest approximately significant Century lives represented million future today.

to risk-based in significant the suite the second and Tech is areas. Tech this Services New represents growth platform up-sell suite dynamic opportunity lives XX today, up-sell our growth. and one performance from Services ongoing With for or a on almost Century future our million The more specialty

We per and various continue the up-sell to to from in look Performance cardiology to EBITDA some increase a more and per Tech for the of XX-fold adjusted and these than and per Services significant drives member. suite. oncology opportunities increases Services suite month The lives the revenue, transition in Performance in member from states to Technology

strong and operating Now, I'll growth, core turn optimal to margins, of two, allocation. progress one organic our across capital priorities three, you updating expanding continued on the

so expansion with XXXX In new continue Looking six I'll and in growth, to in target at to eight. we're trajectory of us we few announcements significant EHS signed a annual new and the for two first to recently to current six life February, these the a thus XXXX helped new four drive two new year in that Today, our growth an organic pleased partnerships partnerships XXXX. existing highlight segment far of announced and versus the priority our announce the take we operating client. Clinical opportunities of

track So for XXXX, set increasingly we're on for up an XXXX. well

our relationships. annual reminder, As count dynamics buying the and partner with these financial of new a clients Performance include operating suite we size existing wins given towards

our to and Avnet, announce the with to now to we're Miami, valued has Avnet for our relationship delighted suite in partner performance our of add the Health solution more not-for-profit than to care. members highly it's and client Avnet's to our add, is been expansion operation an a respected detail for we're with oncology. been years, approximately our Turning suite Performance announcements, for plan XXX,XXX a Headquartered Services excited health XX cardiology providing Avnet has and for oncology. and Medicare members Technology New on the cost-effective Century high-quality,

platform. Tech have placed help for through vendor Services their In manage membership Avnet oncology and quality of a we to insured radiation addition, another majority commercially our

Evolent care with an organization physicians for Evolent fee-for-service is The This where their operates. XXX with in announcement over through this in relationship to Care direct Based group Partners this model, primary patients. the collaborate independent it's is facilitating value-based Program, group provider, transition best largest enhanced population. the our our care with working experience Shared the fee-for-service for second it to options, a agreement initial exceed of headquartered for member's today improve independent and to think value. provides the different portion and Our of providers, After with physician is for Program Medicare Savings from California. years group their the and evaluated Care to our elected Medicare ACO including county opportunities often already contracting physician Savings they Medicare Partners new they We We've time. expand begun practices, track over opportunities on significant looking payers, Shared a care practices ACO.

Blue as As as recently Cross said, adding we with announced suite Performance are Blue well illustrated North arrangement. increasingly our contracts private Carolina Shield payer

to We program the and they reached also continue evaluate as ACO other models mature.

elevated a believe health enterprise Health anticipate expenses of all Evolent membership bearing to expansion, is the creating value-based of today inflationary XXX,XXX country our our environment new growth IFP across all to which burden, progress lives to of of tailwind an increased plan include plans business continued Evolent towards that quality be strong announced macro revenue solutions, for let's implementation new the year, commercial commercial cost of on talk family Services, successful expansion care to drive in pressures with following margin and the this of overall lowering operating for medical XXXX. Across solutions. the while for we we across growth continues core about With individual our and and other we risks entities priority opportunities Bright's our which January HealthCare core Turning first urgency Bright and care is proposition the their progressing, Health. second

a Going and and suite forward, Services our New strong logos suite new Evolent number from lives from solutions, continued upsells. Solutions, Health our and anticipate Technology on from Care in growth both Partners higher of Clinical and Century net Performance revenue we specifically

typically adjusted higher our rates, adjusted margin, drive mature. Evolent Century previously, EBITDA as margin As solid contribution, will and across Performance one dollars EBITDA slightly adjusted one percent growth contracts annual solutions higher year discussed year EBITDA growth Health and Care dollar and suite New percentages lower Partners of

best continue to we As we believe adjusted dollars the about that are and success EBITDA good to measure to relative targets, progress share indicator continue margin last feel towards quarter, goals. expansion margin medium-term our our to our

third value and long-term a our core to talked within flexible priority, to incremental our leadership turn appropriate while When growth, support performance-based market Let's balance and maintaining about innovation, allocation. growth. solutions, sheet shareholder we capital to to investment, we leverage drive operating aim optimizing

capabilities. always Our first building priority internal capital and for is deployment strengthening

sense financially strategically. development, organic an consider avenue address to assets make to addition M&A we In that also and

is this both, illustrative by technology core the Through portfolio creation in Our value, acquisition and to opportunities offerings of available. added reception in the in performance expanded we're to lines. in adding of integrated In complex, a services We Health, the health been post-integration, value strategic Century capabilities of objectives. believe we positive acute week economic adding were and October, to the compelling primary into and see illnesses New closed pairing of these types important approach to successful transaction, chronic, market X The early indications operating which by managing expertise incorporating Century's New shareholder acquisition, is our and the enabled our we positive. managing core benefits our the closing Evolent for increase goal highly capabilities solution after Vital accretive payers Decisions their M&A and acquisitions point and of a believe value the advanced solution. of Health, Vital create seeing Decisions, stages quarters has support will the that populations. into care with very

directly of clients, Decisions largest payer expanding We clients, we more they Vital unlocking the or But and last if where often other clinical is, clients this Vital additional example, vendor in program can fewer several Decisions specialty year. live forward who us there value-based our care our That is our additional Century we suite care in provider over cover went they with partners significant hear pilot the with significant especially a Century's areas speak look provide we financial New partners existing fewer benefits. care points risk-based each advanced our later specialties specialties. we solutions few have that services, comprehensive generally. ecosystem. cover Performance one with capabilities For them in prefer clients New ask can within across prefer fragmentation or of would touch often and weeks potentially When to vendor panning say the

position the additional, drive within our targeted platform strength managing we market, also our in long-term some we returns, to priorities, priorities the time, given as around this expand our disciplined of help these growth, and me, and top outlook dynamic give be a To numbers long-term leadership, a capital independent and company Directors. the to of help our invest shareholder leadership opportunities significant detail the see see on to United principles and core our I'll now XXXX for team, opportunity three Health, New management results, success, the the terms Board platform us The to way mission market using continue product across that to we financial our achieve durable will as delivered business market in extend continued John through healthcare quarter. provide operational to to able on guide market leadership believe our in Over continue profitable, innovation, Century a Given of accretive, we for our which specialty M&A. growth in the the while build leadership. conclude, operating we we'll adhering see allocation. second in and ask ultimately, is quarter By our States. executing change care to value-based

John Johnson

pleased everyone. high guidance key coming results, our ahead we our or with with quarter of in Good end the communicated near first We're February. the afternoon, metrics in

Solutions grow to carried XXXX, across of this quarter management Health total, XX.X QX we are well and outperformed and solutions reach lives well the high the quality Evolent and into’XX. In our to cost due as our covered upon million building year, we performance the into that we're range Clinical We for payments segments. both remainder stronger-than-projected of momentum situated revenue our Services within during as the end both

strategy. quarter, our focus remainder outcomes with adjusted arrangements. typical year working during flow Our strong With of declined capital line seasonality continued continued our in by cash was capital our And the we likewise on with build first cash EBITDA beginning the during in Performance-based XXXX from to the driven operating upon in expectations. flow anticipate momentum of disciplined the allocation our our XXXX versus

results the update results year. through XX% in in on same take to the Revenue ending as compared adjusted $XX.X Now, the well in the EBITDA increase, an new segment-specific was margin sales let year-over-year EBITDA across basis partner for same-store of $XX.X to period same guidance. from was million before in This year. quarter as $XXX.X a the expansion quarter with XXX to you additions, XX.X% of prior was to and due enterprise. million, points. Adjusted turning million, growth growth compared me growth prior represents as quarter a This our consolidated the

of is new to managing segment Care and growth. year, EBITDA Health. over up are Blue members where with period $XXX.X our in revenue Clinical million Evolent due the Cross Partners adjusted $XX.X at to year. in Blue Within Turning Blue strong increased continued Premier client New growth now same-store was in Century to Solutions previously results. the Shield same of the $XXX.X million strong by our the platform. partnership million compared from we segment, QX Including sales our XX.X% Clinical North performance continued announced the quarter Solutions driven prior prior revenue to XX,XXX $XX on first Carolina, This from million

prior our Cross versus As a fee with expected profitability progressively addition by one $XX.XX. lives ramping of year our was is Carolina million Membership Blue Shield X.X XX.X% million $XXX.X a of segment for to at was of the in to Growth from X.X suite Clinical of Services net previously suite new our increased by lives, year, QX $X.X the lower-than-average the year prior to for revenue to where revenue of $XX.X the QX first Clinical $XX.X previously with Care million the meaningful client relative increase Membership segments, fee This the eliminations same PMPM XXX,XXX Performance to to QX approximately is premium in in in $XX.XX Solutions PMPM in growth the Solutions have go year. $X.XX Bright in quarter the of driven Within more prior margin, this million over to Evolent Services Health in compared of Technology principally years. full addition up was XXX,XXX period HealthCare versus PMPM with Partners Blue the three $X.XX the North of and of incremental including driven intercompany prior mentioned recognized. million approximately in lives. of million discussed, Evolent year.

revenue largely in Services segment benefited $X.X our year, suite Evolent the from Performance reductions was with at million have at $XX.XX also significant cost performance-based fee our Services certain was for was prior $X.X in $X.X made compared model. our to versus across demonstrating operating PMPM EBITDA Membership Evolent progress in to by the XXXX, driving million We Adjusted Health million, in the for of higher-than-projected we $XX.XX. compared unit quarter million costs. the quarter, offset $X.X from QX pass-through which a Health one-time

corporate growth. costs have become $X.X $X.X to the continuing margin in from million more XX.X% to the same of steps prior decreased EBITDA million to even year. period our overhead face lower adjusted Finally, benefit of consolidated continue in we taken and costs The efficient the to

equivalents regulated the cash the $XX.X Turning cash, accounts and finished held in million wind-down quarter to of $XXX.X balance the we million with sheet, in passport. cash in to including investments, related

the have for cash, end fourth versus cash quarter. decrease $XX.X $XXX.X a Excluding the million of held passport, available of million we of

we reminder working the decrease of compensation. As positive in year-end by principally for year. the deployed was And cash quarter developments including million. was be capitalized software the capital, flow expect to $X.X this incentive across Cash meaningfully driven in I mentioned, seasonality

$XX be Finally, now year. $XX of turning to billion. the we're million and total continued between to And expect for the we EBITDA $X.XX guidance revenue based outlook on raising to for for performance, strong year $X.XX range adjusted the to in our

For adjusted million, $XXX specifically, and $XX $XX $XXX revenue we are of EBITDA forecasting adjusted the million million, to forecasting second at to million. quarter are we

and expect to revenue. high continue of one can you quarters timing to reminder, three based adjusted Performance this points be for a on year, EBITDA As

annual expenses. forecast Operator, call development your We to $XX between software take back will in With to questions. capitalized turn that, continue the the and to I $XX

Operator

Thank you.

Instructions] the this We session. to will now momentarily roster. time, [Operator begin At question-and-answer will we pause assemble our

comes first question with from Please, Our Richard Genuity. Canaccord Close ahead. go

Richard Close

on you Strive the or Oncology Care I the wondering progress. I bit was for announced Thanks Great. Seth Partners also and about -- congratulations then time recently. and the a today, Health could wondering was if relationship, John, the and questions talk you little here Seth,

was you the for contribution? opportunity those through we us walk XXXX just of of they I how relevant be or are each could is, relationships, thinking So structure and from maybe perspective, wondering a just XXXX if should the financial what about

Seth Blackley

Yes. Great, Richard. Thanks for the question.

business think of the we the we Evolent development is, So three Care Century, and this Partners, One think we across parts Health way we well, the three Evolent think things of can I Services, part is build in business, like. around innovation, So about internally all internally, do right? build innovation it's our software buckets. that and about New

oncology Evolent M&A zero be that time-to-time, capital from able doesn't way capacity Second you to take that up. bucket you or to like Care sort Care have is may company the They of they very needs those we may be may company, markets in Services. M&A. mentioned Partner, our this but be capital third we markets, where Health and in Evolent me, us in oncology capital Century, be couple that and in value-add in Care they mentioned, a Partners separate add partnerships places New as Partners, help the excuse having that to a be deployed, new We use mentioned. of certain in see in in they you innovation, light then the case Accretive some there be Evolent tend

And innovation capital M$A, our methodology so three then products. all product. It's select towards with we continue leadership areas an it's our really innovate across broader targeted yet market that partnerships are we have internal use light development and of part that again, eye and and to all

John Johnson

rates also question, really and Thankfully within market front, yeah, therefore, financial and to to really framework. earnings deliver grow think on time, it's targets over the but expectations the on -- leadership, about our to fast your more to point our ability which I continue Richard, our that ability at fits

So think necessarily I perspective an short-term. it as of thing a in financial wouldn't the additive from

Richard Close

But a I'm that's Okay. you trying -- understand be -- to JV. oncology would is Partners, think I Care

So being somewhat kidney a cardiology then on like seems oncology be would or like that's it that the care. like share and performance How you -- revenue Strive? your

that is shares So revenue well? as a

John Johnson

in Hey, Richard, On our both, partners will this network of our is John. some those. think -- of as I them in networks. take

So oncology way. Century. them a part to just with network the of our of will Care happy groups as country and support number like Oncology they in be we we're so that partner across New and grow, in Partners

Kidney are Medicare Seth that. to that where it's not for mentioned, know, made. agreement Partners selected were which the Strive Care help We costs Evolent As of an as investment Program. you classic care, Savings and Strive, to think mostly seeking sub-capitation in we've lives, manage partner of a the On Shared a do us as the that

markets a we're population. roll of a couple see kind our of pilot so drive them and on what can that in excited And with savings they to as

Richard Close

Okay. Thank you.

Seth Blackley

Welcome.

Operator

Next William go Blair. comes with Please from Ryan ahead. Daniels question

Ryan Daniels

add, up-sell, you've quarter. I'll about your then marketplace. opportunity that massive solutions you the into congratulations taking New Century, Seth, Hi, both guys. questions. have, for and the on in comments, Thanks strong cross-sell talked another prepared Mike, the

there specifically already speak are do that standpoint? if So in and a little what investment the push existing you're using sales seeing growth such clients Thanks. with to you segment you seeing I'm and clients to curious drive how bit forward needle or there with results, from a more can good rapidly you that

Seth Blackley

question, Good Ryan.

Ryan, talked form. from calls, opportunity We've of partner right? other the particularly specific, couple increased our lives So already are biggest X.X have today. factors in little so touching or of vector covered front XX-fold this going tech that. biggest they if so And are talked I on in geography we We're opportunity to right in have going have We increase can few basis. already about make an out obviously them to services are it with the within their up-sell our then the of we've They're and in the On specialty last lives to those to way, about go ongoing the points shape of of a performance. say, or supporting each down several and the different the opportunity XX, Technology even those payers pain to clients. is We out got of savings that data. of base and something national And suite might XX up-selling very Performance Those We is about. an them a that business. only already it some they're up-sell where their Performance it's the about them things we really like big is well credible million two all across markets. or not the lives the the mean And different, data to there's our opportunities. for the to those happening is Services two are different suite bit your

have those but and With we where common our hey, or a yet is, theme a a pain them to oncology lot of both own. touching of their on And good is ditches markets are can lower true, cardiology the the sales that that, those challenge something I a both unique little for a we different. the across today Because than manage think managing which I and is we're there there's cycles a to other help like market or services perform same they those. the of growth And dimension that not all rate at where in point the is of don't on lot segments. think into ability bit end-of-life, Which macro brand-new us messages news customer? for

And we're about. dimensions you asked both of progress of lot a strong so seeing kind of across those

Ryan Daniels

appreciate they're pilot, existing you client mentioned Okay. color. can a a where dig I I more? that doing really you into Vital an Decisions, then And with relationship, little bit think that Is of a that something small the they're doing or amount potential for that is helpful? color -- where it lives I on more would expansion be in guess, just just is

Seth Blackley

Yes.

to So this is these suite capabilities, today, natural costs, one it's and we're or in conversations. and their the patient to the patient patient Vital and an we Performance aspect getting relationships all and able and the have and those the the so manage their cardiology the brings of be and from families our we so to fantastic a, cancer would population today. and the stitch a larger have team physician that with managing that physicians of -- right abilities say, relationships only our Vitals you're that help already, perspective, empathy in with patients

So the And again, has bigger the think often rolling sell quickly. pilot it, the do life with time, talked population first span working we so not and the because stitch always. let's for I across foremost. it well. patient, It early of don't it It's over I patient Vital. alike it's the a us in in positive can for longer bring lot that but how clinical care quite a opportunity of of a receptivity leadership and we're think better And of terms bear quality in, sense, lot these yes, thing savings accrue out And right that's thing. to also makes a our We're sales in, the seeing It capabilities plans. that first broadly of about in pretty really this back we bringing partners. and is results one we the that and to it's is

Ryan Daniels

in then the fees, expectations on two generally or sales upside helped quarter more the the Performance-based One And pull-forward for those quickly was John off. EBITDA? get and to your very line that with any drive and there were Perfect. during I'll

John Johnson

they from base Ryan. performance we slightly got of based fees of read final a not pull-forward, question, came those would ahead good Yeah, that the but projections. on. in I But say to on our data the

nice to in So see those quarter. the

Ryan Daniels

with public then in last seen Seth, product the a capital one, digital through such always and forward, the enhance being investment have with of weakness the more equity we've seller you're your offering companies curious, opportunity. talked third to reallocation internal seen external you cause the in a markets, health you seeing in and that that And M&A particular might expectations from service Thanks reset platform M&A I'm to or the Okay. about going forward? M&A of going attractive opportunities opportunities late,

Seth Blackley

ahead of really and had good organic path say I that's don't this us don't think Yeah, Ryan. We've we feel that need to so what do we'd about the we and path, confident M&A, need we to in it, do it. really

of in what the be there's be we're to It strategic so third transactions. with the to when short-term we Ryan, win, a see fits It is quickly. we'd I is thing a it's needs doing accretive things is needs long from build to needs got to strategic the the then think couple upside be core. times term, do -- when And in the which fit. we what it, -- will One present. a

think the are the in I the can I specialty thing, especially the ahead a I of helps little of of a your it. as criteria, think the that's they bit opportunities space, months it the so that point, down go broader really all long-term. think there. a When more definitely accretion and that, right and those markets now. to months, short-term see is X short should our the some XX we But little opportunities adjust interesting to think help I main seeing within even point meet And three attractive assets little in on bit, business be the out it framework We prices the for bit. just

Ryan Daniels

Right. Great. much, so guys. Thank you

Seth Blackley

Ryan. Thanks,

Operator

JPMorgan. with Samuel Please, go Anne from comes question next Our ahead.

Anne Samuel

to guys. Maybe Hi, the question. just follow-up for taking a question. Thanks Ryan's

areas beyond customers talked opportunity might your to your at surrender make What You portfolio? for expand asking existing specialties. that about the are some

Seth Blackley

certainly So cardiology oncology it's a end-of-life. about I interesting thankfully think hear and lot we and

So it feels ones like of An some there's that, also just are needs patients That helping also musculoskeletal. the think example others, patient there the navigate ones are that are a I I'd around bit. put a higher and that on that And more. are are other bit we're There and growing spot at some are list, like cost. big about quite neurology talked that little few is on.

so, we opportunities to just customers the the our want you hey, important across do to a your we and are there's of lot certainly I saying think us, more. that to I And getting ones is factor coming points, most mentioned,

I more one delivering we're on is front there's a us, good which one is always in what to job also a from got think think dynamic which But in of we've doing job buy date preferred life. I place.

quite And to the organic also opportunities ability we're M&A, in additions. around so certainly about but Century be commentary our And general. add of excited around part the is could New more

Anne Samuel

great. That's

nice existing have. You you now base rate got add But larger of to clients. continue the new always you've a partnerships at also

past? different? kind of than should composition that Or same-store growth how you've maybe that in supportive higher So the think was new wondering, forward? look just seen growth that going And we might versus is of about of

John Johnson

has to we XX% due shift that of side. same-store our think dynamic I towards given a to penetrate us from more the come you and do come expect the John. -- I'll customer The further has opportunity And expansions. our base, growth Hey, that of existing to about in that from same-store little one. new is Anne. the described front that partner XX% take This ads, typically,

going or Now, not it's if other to the XX/XX or XX/XX that's way, XX/XX. go

believe to a flags there to continue that We we of lot that do there's new out but see happening. dynamic plant,

lives is I and suite. you'll to conversion up Performance see that think mention today the of year, the suite Services across the are just other thing that this Tech that in to it,

ultimately, more more value through Performance drive revenue, a not on suite. in of the more total maybe able and life the patient the so more and aggregate the And much for and PMPM we're customer that change count, change to as as profitability,

Anne Samuel

housekeeping. about but provide -- then That's Thanks. some and to Bright partnerships. maybe color PMPM the missed Health the could maybe timing one at think the of you and also on just lives maybe expansion of And just And more really helpful. Perhaps hoping how it, was I new just some that.

Seth Blackley

minus Let order, growth. the they those their about factors our in our will January morning, all believe me membership. year. plus platform. or be That I of mentioned, lives on on do have as of anticipating In mentioned we to million on call Bright still Health, their a next this lives ISP

them really excited and to continue couple to other a with So really today. announcements provide grow On strong service. of

of the As suite this the their of which med as mentioned, of Performance main fraction is a we business, advantage lives. in focus is the -- Medicare book

since show it it So the the open the as in savings ECP, model. know, think of the revenue a revenue, that a add, it million $XX zip on you to -- is longer $XX code longer takes is shared to and total

So impact where about next see really we talking revenue anticipated. there that for we're year,

Anne Samuel

helpful. you. Very Thank

Operator

with ahead. please question go Charles The comes next from Cowen, Rhyee

Charles Rhyee

get the just into client for base how question being pilot, missed going of -- taking forward? Vital with Thanks Effect question from or clients follow-up a you're see pilots I see a Vital Decisions around do the long expect your labs Decisions. reference other when site you do pilots Decisions a you pilot for just to these questions. do to it as going Maybe Ryan's existing Seth, you one you and in kind on for Yeah. this the to maybe primary Vital starting maybe way

Seth Blackley

good Charles. a question, It's Yes.

this these pretty And So out more later couple a this relationship quickly. full then we pilot we a And flip year. expect rolling I and this of it's will -- think year.

where we're this So of we're going become and generally to operational really methodology. and one, a going issues the the given getting That's adoption. pilot terms good adopt any not in that having timing is it. just to Health, roll of so part to our of issues And we're are use in Century platform not with it think New need speaking, really we I don't feels But integration. having big partners and they're to first just the

Charles Rhyee

going potential move a be as Health, an or clients of select option just as to new New the they we decision sort Century at for then they they is final can into logons, And it -- new when is of sign-off? part forward package

Seth Blackley

be conversation. think be I will part often it'll It a it. Yes, of

oncologists much they can so right? sometimes think stitching or an just it'll And than be the sense, platform. And I opt opt-in cases. the most contacting it out it, an already of When you're cardiologists but same makes more of in so opt-out

the think So of I it'll part relationship. be default

Charles Rhyee

But I Molina about I think question in -- may guys last suite fourth-quarter the million. think through? more those the have the think just we're the lives then mentioned know flow ramp similarly lives and on but How Performance about And I ramping lives. you talked you for from to at think terms call, I sequentially back-half-weighted Is I still then in missed should maybe Great. me, of expansions, BlueShield, to that. that BlueCross be X.X we for up

Seth Blackley

are The Blue Molina some suite, in quarter. April. we Shield to lives in phase Cross will the Blue Performance number sweat. of expect no at contracts live two in Yeah, the on this the point other XX went And as

Charles Rhyee

up the the Okay, so that third Quarter Should be or Second XXX,XXX in step-up of some stepping we up. in quarter. we should we step have should the

Seth Blackley

quarter. of would I the the that is expect in the magnitude step-up second

Charles Rhyee

Great. All right.

Seth Blackley

it's lives Performance about a But to and [Indiscernible]. Technology just move precise Services from really be move Not that to suite. a penetrate,

Charles Rhyee

on congrats Thanks. and I Perfect. Okay. the quarter. appreciate

Seth Blackley

Thank you.

John Johnson

Charles. Thanks,

Operator

with go Jessica Piper Sandler. Our ahead. Tassan next question Please comes from

Jessica Tassan

I Molina there HI. taking Performance Thanks would lives. have a suite, estimated my had think is like we XXX,XXX for New for launch Kentucky that Century I roughly a guess, X-X question. added just And which

within underlying there in I suite just reported any kind the sequential So guess Clinical flat and Performance dynamics behind are lives of Solutions.

Seth Blackley

There's continue $XX no slip at also million aggregate this to suites. relationship codes. underlying just that And expect dynamics the Kentucky Molina still the we've as about talked to in track revenues year, there for Performance on to

track. is on that So

Jessica Tassan

contract then between should Clinical Medicare base, population like overall And within guess helpful. Medicaid? and mix or we year-over-year just just And growth within I around here extension That's in grow be Solutions that Performance or the to roughly outside [Indiscernible] suite, expecting the what's the

Seth Blackley

the than speaking, was is was of half a Solutions revenue. represented how more has I XX% services. that to Overall a in for of commercial and terms Medicaid bigger little revenue oncology quarter cardiology -- market cadence. the largest total deal the Medicare Medicare going Generally the specific in shapes a Clinical next depend on

grow expect to probably would I so And faster. that that

Jessica Tassan

potential help can be. redeterminations be? impact maybe Medicaid the about exchange Got what's what potential that think of to much How of deals? you just us the impact then possibly might it. memberships And that convert Yes, might of

John Johnson

Yeah.

that of we ballpark to Then end higher. most the made emergency time was estimate membership happened, that it, the points to might -- -- the member just the XXXX, impact have of at health percentage it been public pause. redetermination about three aggregate at the So and our when the an absent two

consistent have as in rolling are then there that whether is, it's the XX forecast that on? months. question terms a slow our turned the redetermination I off, most months or back is the of that And back So might how membership out forecast of that give six much we that's well. with across when think of ramp reasonably

expect it. to the incorporated that do be two initial three that guidance. we given see positive. our We big to an will to So don't that have points impact impacts it into of think We percentage

Jessica Tassan

you. Thank

Operator

BTIG. from Please, go David comes question next with Our Larsen ahead.

David Larsen

good Hi. Congratulations quarter. on very a

of Molina $XX the XQ’XX? actually was how million, much that For in

Seth Blackley

little one and of on bit, majority going live later relationships went very A quarter. The are this live for the little. very

David Larsen

Okay.

So the revenue --

Seth Blackley

in just guidance. that, the that's to revenue for on of be the one step-up precise the reasons

to where where in is it from will Moving QX. it

David Larsen

-- right.

quarters. Bright those to the sense a X with And the will the lives, of be those is the fee. what it the that service? measure oncology to Molina revenue million are for or So trying providing just lives, most are despite I'm then you that exactly beat the happened fact in the cardiology future get PMPM

Seth Blackley

providing, those Of claims UMCM, administrative course, Services the segment. etc., services core And that of or of the payments lives. a Health we're the Bright platform, out portion the for that's Evolent the

at think PMPM, we best and scope, so services, that's as different relationships pricing to markets, start. vary the place there, a in XX bucks to X somewhere between in call, I so of going the PMPM overall, on. And of by some it's last said decent number Obviously, models and but

David Larsen

it we per month, bucks like if that's on is per basis? that a million? how much member Is an a assume like XX So annual XXX -- $XXX

Seth Blackley

my range. of contract. yes, $XX grow excited midpoint with the to to a use We're you $X if less it's But large them. little A

David Larsen

Okay. large a That's contract. very

amount? What the Okay. dollar quarter the you the And in then were performance recognized? fees what that was

Seth Blackley

Yes. in based benchmark. based that drive to Health’s; case, customers savings we're performance this a able saw Recall to that in where to is on them. able we segment is are Services upside line that with and quarter. our that I principally this on Health have value in for our those in Evolent out Usually this drive where relationships we're relative our And we Evolent that

to us so data contributed recognize that we quarter amounts areas allowed top-line beat. to final in some And and the got that those in

some but really certain associated a impact for Now, the example, in of remarks, to by In costs that past offset was that lower, onetime of magnitude was that prepared as amount little with along a EHS mentioned my in I the that with result. revenue. EBITDA pleased downstream,

David Larsen

That's helpful. Okay. very

like finally Performance that updated there's think collected and I the of related that? of little you revenue XXXX like a something a like XQ you bit it some or was delay [Indiscernible] in that, got all to

Seth Blackley

Yes. to and year high the this three expect against of and points today, be for was revenue. I said And at It quarters it the year I one not. outset mentioned Performance we do of

the by files is driven Partners. of the Medicare impact settlement Shared quarter we Care third The timing Evolent received for Savings largely

David Larsen

and just the then off. I'll And hop one last

that? you of it dollars? terms billion? Can terms Is XX I like In Just heard the dollar you’re phrase put fold. what in at of your looking or are on in-cell TAM $X potential, amount we a

Seth Blackley

we that billion. $X paint So could of to Performance way in picture, that represent you cardiology that to customers is excess revenue would we've assume those were XX% if both by the Dave, tried oncology with penetrate that and suite top products,

on focused attacking. obviously are opportunity highly significant there that a we So

David Larsen

Okay. Congratulations, the I'll thanks. hop in Fantastic quarter. queue. back

Seth Blackley

you. Thank

John Johnson

David. Thanks,

Operator

comes with Guggenheim. Draper next ahead. go Our from question Sandy Please

Sandy Draper

the back I'm usual, very in good be afternoon. as slowing And glad on Thanks to the on queue. calls. much. And the And back

you may are outside level detail guys that So really question a no right since DC. high be

that Thanks. into changes no As we DC? midterm the could do particularly years the over it's next the the be come buys administration, that status-quo, or couple an of there thinking is upside of you half think anything out coming of guys pretty watching elections are risk downside about much or you and second risk

Seth Blackley

Hey Yeah. Sandy.

that risk-bearing to opportunity a about think pretty I everything the of its those back today is provider managing the all reason going to time. solve or And co or and a are business. short we're opportunities them the are going the for lot much it our respect a care. there. of around dynamics changes re a oriented And our private still but long and talking to have little, just been markets almost if long answer around really that policy the value-based payer with we're is that to time dynamics be be care We for status-quo use and that driving is

around I for Evolent it's And happens even thesis in and for answer down what Evolent, the that think to dynamics up in elections it's like. environment we no inside a on what connected have macro things on. value-based or think because little for those they're care. those changes But to but think you less the helpful positive we're thinking of going probably what moderate really with Beltway. big is could the the nuanced I bit we I I and about us to So us, net and core more see give

David Larsen

the helpful congrats that's quarter. and Great, on

Seth Blackley

Thanks.

Seth Frank

Thanks.

Operator

Canaccord question Genuity, go final with Richard please from follow-up a is Close ahead. Our

Richard Close

second maybe a on a commentary wondering level really partnerships, year. guys of on question, the on pipeline, higher just but maybe but new I Obviously, some how was and And Thanks about side. follow-up. then the just pipeline. little maybe adding follow-up little that Seth, if more in bit it could comment last you Sandy's on a economics for the maybe have you been the compares

from recession impact that's around be going we helpful. if into maybe curious think maybe that suite? would Does thoughts So or adding performance you I'm services or that the pipeline? and go Just what stop to people in performance any not, how

Seth Blackley

Yes.

and it's at, it's say first the the pipeline, point, at on good. very bills I'd been So highest it's

per positive logos. existing and versus a John's shifted said that good. and net feels a our has just the new Yes, about bit towards but earlier weighted that's logo's customers that John a bit new it's So of little up-sell there course, weighting opportunity answer, we've quite more been talking in and too, it

things just respect environment one that cancer, and These help and saves and they make their the think it positive the bunch elements or I the unfortunately one happens, macroeconomic is still evergreen general to much good still our numbers need end-of-life, of your dynamics, ability differentiation other. With that and don't get cetera. doing to [Indiscernible] including also the it the flow The are way people of perspective the of with Recession the to trying don't think managed, a different pressure that cardiology, think health it's question, growth do for that are on product second et way in that affects and issues really money, of cancer it's to Evolent a the economy. but I plans so. be oncology, patient. needs that from profile the

kind our now now, about macro-environment. good in well, years year pipeline what really nice as feel place happens being we independent a from of of from so two And in the a

Richard Close

Okay, thank you.

Seth Blackley

are welcome. You

Operator

would remarks. I back Blackley conference answer for This concludes closing Mr. any the over question to like turn to and our session.

Seth Blackley

time. to connecting the Thanks for days We in evening. look ahead. forward everybody's a good Have

Operator

The Thank presentation. for you concluded. now conference attending today's is

disconnect. You may now

Evolent Health (EVH) 5 May 222022 Q1 Earnings call transcript