Earnings call transcript Q1 2023

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Operator

Welcome to Evolent Health's Earnings Conference Call for the Quarter Ended March 31, 2023.

As a reminder, this conference call is being recorded.

Your host for the call today from Evolent Health are Seth Blackley, Chief Executive Officer; and John Johnson, Chief Financial Officer. This call will be archived and available later this evening for the next week via the webcast on the company's website in the section entitled Investor Relations.

I'll now hand the call over to Seth Frank, Evolent's Vice President of Investor Relations.

Seth Frank

evening. good and you, Thank This conference under U.S. forward-looking will contain statements the call laws. federal or statements and differ results experience risks subject materially expectations. that historical These to actual uncertainties are could cause from present to

of A company's periodic Exchange filings. current the are Commission, the description cautionary that of risks uncertainties included found reports Securities can the with and statements and filed including in be and our some in

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

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

reference metrics presentation certain release as management's During available non-GAAP a website. our section Evolent's summary can on as IR found that figures earnings well of presentation and in and GAAP Events be the we discussion, will and

will over CEO, Blackley. to the now Seth turn Evolent's And I call

Seth Blackley

comments thanks on our Good us. evening, integrating you acquisitions. recent priorities of our X today for will and updating My operating quarterly and on prepared our focus progress joining on results, the status

and always. and an forward on at well will in hosting for meeting Arlington, a to at our detail. the in we're your John this know, investor XX, look preview year, end of guidance questions call. quarterly May discuss the on taking as you and update as results the that webcast end As option more we'll Virginia with the I'll live event

our XXXX with Reviewing the EBITDA range. of exceeded revenue results. strong the range quarter, and was end the top Evolent within guidance Adjusted first began

we're for good bottom guidance the year. the of the about continue range raising range the start full revenue as We strong our to into the with high end today, visibility And our progresses. we're the feel growth the for happy year Overall, also given to year. year

For the $XXX.X Health's quarter XX% million, period XXXX. ended March XXXX, revenue over reported was the of growth Evolent same of XX,

of the we our which from $XX.X revenue approximately at NIA growth was XXXX. revenue and quarter, of discuss, XX% expansions expect growth announced Humana. meaningful contribution with previously as revenue XX%, the Suite QX acquired during go we for million and for as John live rate Molina was with And the Excluding quarter-over-quarter XX% we to guided QX our will range Performance consistent

Looking at profitability.

totaled The than $XX.X the expansion XX.X%, the in and quarter in a company. of NIA for addition for acquisitions. the $XX.X First X adjusted margin EBITDA the million as the high quarter million, growth year from results new well ago. driven was both more EBITDA IPG of Adjusted an and business adjusted watermark EBITDA increase as by base doubling and totaled

continued an operational point year rate first results million solid exiting to sales look the We of Our as provide starting XXXX. of $XXX EBITDA continues. progress previously our quarter run of released goal achieving forward adjusted and momentum a

update notable with agreement you highlight Starting I'll surgical to under preferred organic its with allocation. management growth, solution organic want utilize ASC with contract entered spoke surgical AMSURG, payer Now IPG provider optimal and in nationally. IPG's national has chain priorities last a of capital core a Recently, an to February. growth. expanding we leading implant into X X as strong signed margins on I Evolent's since operating agreements

out thrilled the ambulatory creates reduced with shift This a of cost. mutually roll management unique for management device care centers. our value solution surgery solution and payer surgery is national and surgical payers into site to AMSURG's benefiting to surgical ambulatory center agreement, solution centers We're ambulatory utilizing surgery our from this testament opportunity this

payers, cross-selling and expansion installed other for opens chains. ambulatory and a surgery other to base this center relationships national doors nationally our regionally blueprint and with for both that and growing our payer brings Furthermore, a a it proof point synergies creates care and to partner. payers, specialty portfolio large the our national with also cross-sell Evolent one-stop value-based It's surgical elevate as relationships

and Second, Evolent began with markets expanding Centene Care deepens members rapidly go Advantage by Specialty April, nationally. use Centene members and we WellCare March. XX and services XXXX. This local agreement market. in Health live specialty over between We its that technology to in expands of expansion oncology partnership MA its in states recap announcement, announced solution adding a Evolent of the MA expand during and significant and oncology will Centene into the across the To Centene end beyond Medicaid XXX,XXX Medicare

displacement example this of the this PMPM and how an and by smaller with solution, technology specialty are a to grow fees above manage It's for proven health costs agreement solution. this excellent geographic is noting, client another a corporate our increasing we reach averages point was also book within reported services for base and of business. is company's competitive This of worth oncology our outcomes. and solution also MA

Solutions, customer EBITDA is synergized the by benefit meeting commitments. adjusted Please agreement from to expansion continues this we of in end was which $XX million to that of from Evolent Centene addition our of Centene's trust with the estimate the NIA offering we've NIA of breadth incremental XXXX. our the created into our of note and built by from with million $XX fully anticipate operational

X annual year-to-date compared agreements our our to goal today bring These significant announced partnerships partnerships total expansions. new of and to X X to

pipeline business our new remains of strong. ahead, Looking

I prospects team about payers. strong highly prospective the platform in number came hosted years of ahead. my revenue and customers and I and of away organic encouraged integrated March, for a drive current to During our continuing power the growth the

progress expanding also our core I'm margins. of our against happy with EBITDA priority second operating adjusted

that full and first in the XXXX the as year our guidance year. history well of adjusted margins adjusted exiting path to financial rate EBITDA run as in for highest 'XX our earlier, we quarter, our noted $XXX EBITDA million As with track delivered XX.X% for on

progress look maturation level of against Reaching and business services growth, you technology announcements detail illustrate the have fronts and specialty continued profitability in as technology to solution. continued Suite Investor both already well track will our we Suite book today and to on as on latest Performance specialty Day. goals continue We high-margin we services our this during our of The remain sales of additional Performance providing maturation margin our quarter. with the forward require

and XXXX EBITDA that merits Performance Evolent line XX% I the that Evolent's previously balanced also in we of dollars approximately products generate bottom our and from business. fee-based of this We're indicated in would strong the seeing results to Suite XX% from highlight with its want quarter. adjusted approach top the

approach Performance later the continue EBITDA balanced years, to the this strong deliver growth significant EBITDA growth Suite delivering drive more sustainably and revenue and contributions profitable While our yield ahead. adjusted growth in years will revenue growth highest rates to in in will

operating we're priority specialty execution XXXX our of while be reiterate, is third value-based and To position, synergy care capital allocation. optimal our confident plan in Our our market will leadership. cost accelerating focused on

generation. EBITDA allocation is to sheet growth capital cash deleverage priority through adjusted strong near-term and through balance debt reduction Our the

while structure opportunities to protecting cost to at common will same shareholders. lower also yield time, capital simplify our continue the to our We evaluate debt, to service

generating interest detail, relative more or million historical leverage than the that or in discuss $XXX will in expectations track our strong seasonal expectations of to is our meet cash ratio or we our remain resulted target to John flow generation this exceed better on prior previous service. in quarter cash in net more year As debt and to

close, the me event. points on To couple agenda our add investor and let of a integration for

progressing integration track Our is of NIA and on well.

of collective company. over are and underway new finalized the organizational teams across multiple our of that last the implemented cost work months sales We members family beginning Evolent benefits see both combined from the few the capability integrated and design NIA. focus have to the streams our and of and We legacy

platform, future Day, and well on cross-sell integrated about operating During more margins. impact model opportunities will of that's their the talk our the power as we the as Investor emerging product our the

May have our For goals. event, we X XX primary

all solve first we understanding to platform. and face is problems clients you our our a give with how detailed the them The of

walk Evolent and does how accomplish clear should a work. what away our understanding with of we You

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subframe. a and person have want please you If attend reach to not registration received link, to out yet in

to turn I'll that, With it over John.

John Johnson

Seth. Thanks,

weeks. We in you are in seeing forward to Arlington few of here looking many a

get updates we're into QX, we review were One talk detailed let's disclosure about, I'd results making like February our These towards have of to call, so our and previewed as for and Evolent. integrate move a NIA on we now numbers we to Before couple highlight those.

Services. Technology our going integrate drivers business, we Suite, into of core one our our forward the X in provide focus as results and organization growth strategy. business disclose our as describe the product to and care specialty types, specialty-led discussed, we'll around First, reporting entire are continuing financial we for segment. Suite Performance future and now the and insight on reportable fees membership Services product value-based are growth Specialty Administrative PMPM we which as To

where metrics revenue per for the business our established also PMPM last revenue cases parts We maintaining the driven. of is not are year and we for case

can example, the accompany metrics of members we and unique are clients introducing advanced over members estimated metric a on, Since have deployed oncology, solutions for same imaging so existing musculoskeletal, our our on also to multiple product. membership, by cardiology,

services disclosure, member the members. and real-life give our account has product deployed this and members plan members products will technology for and Medicaid you services Under product for to a new would plan This members XXX,XXX imaging. Evolent our on services plan specialty of X,XXX example product total and services contribute approximately for administrative advanced and XXX,XXX a me specialty administrative X technology Coast East unique The musculoskeletal count. here. XXX,XXX $XXX,XXX Let and

unique an members million products a In members first an XX.X of per of with total products X.X had total, unique estimated we of XX.X XXXX, during quarter million average member. for the

that specialty grow key products excluding separate member, our have clients penetrating strategy, we and PMPM-based element spend case solutions believe these of can that visibility into Given X of ability additional categories. X their we to together provide our further our we any rate metrics within provide products, our categories a cross-sell

period to of driver primary Finally, revenue are and fees average modeling providing versus membership ending the is PMPM for membership. now corresponding the simplify membership we monthly your efforts, Average quarter.

posted presentation We have showing our these metrics table of website. each back earnings through a XXXX the to quarterly provided in

about Now results the quarter. theme to A talk let's bottom the Suite and as our key both partnerships, our which continue top drove Performance progress is line first quarter. expected and in

minimal in see into million a with of of minimum and million about claims in $XX medical the in revenue symmetric in floors. X expense $X XX-Q in to are is reduction costs our happen and related our when well Lee falls partners related can about categories: adjusted reductions particular, $XX First, EBITDA. to which impact performing Medicaid, reduction quite both to to prior, million You'll This XXXX relative

our and line Without been bottom this to was claims line lower $XXX quarter onetime for approximately for with revenue top in the remaining our from periods, through have The would consistent our the to the flowed year. quarter expense million. expectations deduct prior

a on live such in when from $X saw we in claims X discussed accruals quarter call we to million from in the our the performance based of X experience. typically have an we switch And on see the initial a February, pickup in the As we suite pickup will budget being first to margins our to go data dynamics. quarters actual

we QX, final from and to are of release was we main million into factored originally we received are the the our pleased mature XXXX slightly QX. These of the quarter-to-quarter first we anticipated as EBITDA quarters at the dynamics performance progress suite exceeding driver also performance was quarter in sorts data business that future for our performance of of in driving our This pace about during and Finally, guide with recognition expect. Overall, range. results, continue guidance suite. margins on the in QX forecast adjusted $X margin accelerated how

I progress in and sheet. also cash flow our continued want highlight to balance

cash $XX.X the reported adjusted on with EBITDA, trailing the you the additional of the As largely an lower We worth in know, the of of NIA, than XXXX delevering. and net are focused to IPG generation to driven NIA by of quarter highly ended debt X.Xx, we $XXX.X results from year's full million, generation end EBITDA trailing adjusted or million XX-month in EBITDA. adjusted acquired X.Xx the cash and initial and ratio XX-month already our a Adding quarter our transaction. our target after

quarter increased after addition, by the available incremental closed, an wind down. In $XX Passport from the our cash million

expect We repatriate debt, 'XX. this of excess We to pay remain million cash repaid an using to plan. $XX and we later up cash shutdown we down year, complete during additional our million on to that as process facility to our for the committed QX $XX.X revolving in

guidance. Now was prior the let's $XXX.X increase in Revenue same review quarter period to million, in of the the XX% numbers before the turning year. an versus

NIA growth the in the about revenue quarter, XX%. Excluding addition in $XX.X was of from million

in Suite We compared million our $XX.XX of QX. $XX.XX and line 'XX, in a PMPM million during Performance ago quarter. year averaged membership with members break the an fee Let's of the for versus fees down and with on average $X.X X.X QX product QX to and average in PMPMs

As year-over-year PMPM the our a result corporate higher of of lower change Medicaid reminder, and lines were growth average. commercial in which than is business, in a average

same of in 'XX, first 'XX fees the driven the our Services $X.XX with the $X.XX and membership quarter compared quarter to XX.X of period the versus Suite addition the was membership for million first Product the PMPM during members first in of average $XX.X quarter million were last growth Technology in principally NIA. by year. Specialty in

first of per revenue first and million in both totaled Advanced formerly in And the the quarter 'XX, $XX.XX period of same with line average million to versus first services, Total the administrative Care Surgical $XX,XXX with quarterly cases year, XX of average in fee prior the associated for $X.X with on Planning case compared expectations. an quarter. Health for Management approximately quarter, members $X.X were Services, Product PMPM totaled $XX.XX Evolent the

first growth, result margin EBITDA adjusted the of EBITDA of the our drivers. year and XXX quarter versus represented last reflecting contracts same Suite $XX.X million 'XX, Our with $XX.X was organic points the in Adjusted of and million quarter IPG of Performance same the basis XX.X% addition maturation of over expansion NIA.

our entries the of a close have including our speed, related at with tax about benefit tax deferred earliest. million. of XXXX result of remaining our have a we do net assets made investors releasing NIA the we net remaining of the federal against the tax until our As $X we to historical the to expect quarter pre-IPO losses allowance assets With transaction, for in cash and liability the the liabilities, tax majority noncash and operating our and expenses meaningful agreement and current not at X course valuation under receivable

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

million the to fourth versus with million. Excluding expect and of $XX $X.X be the Cash in slightly for capital capitalized ahead we'd cash development for available million working deployed end software $XXX the quarter we decrease quarter held a where the was had of cash normal of seasonality. Passport, of

million billion our guidance and Turning million strong year for outlook be revenue million are raising full adjusted to an now the EBITDA and performance, $XX between Based guidance $X.XXX our underlying year. at to of we midpoint. for our $XXX billion, year of reiterating to increase $XXX the modestly on $X.XXX the

of couple A goes into what outlook. this on reminders

we previously quarters with go partnerships next quarter-over-quarter On across Molina Performance X announced and the Humana. of as we expansion top see live to line, expect with each nice the Suite

changed have have since we time meaningful on spoke, no reminders key Regarding last we the assumptions. X not incremental assumptions. and those Medicaid we our data redeterminations,

is of First, we derived most Illinois in year. like from will Medicaid our that the states redetermination later revenue expect start

given have headwind membership the who we this assumption Second, about representing impact couple those revenue that than guidance members and Medicaid finally, roles our end to adjusted of into between net our on represents expect of Medicaid Medicaid year that who healthier gross stay X% the we our representing of impact as the the bottom revenue. modest line negative well. of come of XX% be a by points incorporated an EBITDA XX% year, on are And a off those

conservative typically profitability our are that healthier contractual up believe have PMPMs, adjust rights given our assumptions if in here, we We fact, lose we to do, members.

QX Given EBITDA across to sequencing the adjusted in XXXX and EBITDA, in we have quarters. referenced adjusted exit the timing expectations of to QX, expect between adjusted for We revised million $XX to adjusted the QX between now I back our quarter and low EBITDA are QX. quarter benefit revenues that be million earlier, we EBITDA XXXX for up expecting the stepping Accordingly, million. with and million strong $XX a next $XXX $XXX of

up let's and go that, Q&A with open And tonight. for ahead it

Operator

Your line from first Partners. Guggenheim the of Instructions] [Operator question comes from Sandy Draper

Sandy Draper

through Thanks John, about said Great. -- prior the that was so million first much. I maybe and very to nothing adjustment think dynamics. -- just I $XX just That I I want sure you was revenue. can to a was the period in understand reduction walk this it want those it happened question, you from I just quarter? if make guess

appreciate guys? cost. you've of just on that they're in you some the that impact you Or information Is maybe I as an some expecting maybe Medicaid something But said, would a -- have the then, 'XX factored to unrelated the already that numbers? commentary that headwind new thinking just on the follow-up. no redetermination. And out guess, payers of about of I around the

John Johnson

Sandy, good questions.

performing I happen very when strong can you when on the this it in -- of when to it the in was element so is well, hold has when side, a performance, in well related expected. in claims, revenue an then this. do plan and result plan come have and a like plans, MLR release minimum as particular, Medicaid If thing floor. And mentioned, sort On plan well, better claims you the the very can we does than XXXX

from very to on out is the year. the of generally so at course based health more something The play receive broadly the like say, data tend how our though, plans. sorts we would have of and not good speaking, is over these topic, partner full timing, I will dynamics this we when discretion into final this our of on insight

And so guide. into this, timing The harder year surprise not full we expected predict. specific something is had a incorporated our and like to

Moving that to redeterminations to on hit point.

is no yes, that new information So significant.

I think the things, we'll really quarter third on has potential say of Generally would line the of process, quarter redetermination get speaking, major X changed. bottom Medicaid have more pools second of processes. end into information states our their think as risk as we I into and the impact not the our perspective

update in pricing our partners a accordingly. the is fees remarks, I and secondly, spirit the first have then there work is shifting example, mentioned we work with way impact potential of little have in as that The in cancer change estimate in of to a bit. incorporated most our prepared the to if tends an risk to ability our we important prevalence is, pool the a the And population, of for conservatism the a

forward. about we see how we're as to that's updated move it, about thinking you where we are, feeling keep and we'll things pretty good continue So

Operator

Charles from Cowen. comes Your the TD from Rhyee next of question line

Charles Rhyee

those ability when talking start sort populations And that? are little into to that as Arizona, Maybe going the periodic to able as with you're you Great. through population, oncology to John, as to asked like a adjust there's particularly think often guys Humana that the changes? get talk if and you Florida bigger about here. about of are -- pricing go think over in much follow there process I bit the able the just how you that? about repeat changes underwriting wanted I guess, up we you like with And make to is maybe when obviously, then earlier, how you about

John Johnson

Yes, it's a great Charles. question,

are with both dialogue the we it's we of and important component partners. on cost an value the network ongoing also is think performance side them, pure answer Where that our for I are most quality. delivering and performing, this how

As fee speed of we sort rates. and much it's think updating the not answer is I real state time, a think schedule, about the faster it's than to cap health it potentially real bracket of plan the

what focused the the hyper perspective them And are with our can be performing so what's seeing with into and we best our going align on regular key future. for so in dialogue them going the in to is customers from and on that we on market

Charles Rhyee

that's Okay. of were talk The in forward from quarters. that just discussed the kind might perhaps follow-up. the later? about is a could EBITDA million up that sort you you maybe than that you And guidance earlier additional and $X in current be being that's tied of third what fees potential triggers pulled would And Can have see expected? second the that any there in not performance margin you released that the

John Johnson

Yes.

answer is for standard final expected over this we adverse mentioned course quarters actuarial we development And claims that data data. work, really we until tends particular my than way when the in in it highly margin continue like standards Sandy, came to when we that's to as know in The And of the as you the and to is a the and this that mostly, And what claims And years. earlier completion. earlier see follow case, follow. get retain the on coming that So that completion. little we'll looks sort to. get dependent a you thing of to is I

Operator

next Anne JP line Samuel from the Morgan. of Your from question comes

Anne Samuel

that by in does curve? about consistent? I spoke margin wondering is maturity how Or the vary payer progression You it of relatively the beneficial performance terms contracts fee quarter. in was being for much

John Johnson

question, good a That's Anne.

And part quarter-to-quarter beginning be beginning pretty cure, a from on. And customer availability end, like to to driven and at talking I of looks months that were to network it pretty end, the on about we look it we by think as with be a Part were can typically the think of if different a just the at If look the to what consistent. be XX driven can right? it you customer. just data. of of can it basis, so you

and the live significant pleased with the business several a quarters What of number I both states business particularly lines drive over margin and a able way to with number we've think customers maturation amount quite to that different last here the been been preserve to the across of the ultimate and the ability consumer new go we've of and our of that to serve member. being different the is a

Anne Samuel

just That's kind hoping housekeeping just And you I really clients legacy explain that administrative then down wind called In question. out helpful. more one could was maybe services. in of is? your what deck, you of a

John Johnson

business, side That's churn just the the of Anne. normal on EHS

Operator

comes the William of Ryan Daniels question from next Blair. Your line from

Ryan Daniels

implants, ASE cases AMSURG's as bit curious wanted to I more? for from focus? then biggest ophthalmology guess that I a payer/AMSURG ortho of one? And use you just more I X little all it's explain and space, a just Seth, are or opto is that I'm that into made announcement does little areas first, GI know it get of Can tonight. number My detail if the of bit you the you the still kind number on two, for

Seth Blackley

their in doing and a involved small ASC and cost relationship an with number behalf the about we trend. payer think of work national to on to different now way to payer, think existing help think that is This had arrangements we're into their I manage Yes. a some want is happy as Ryan, IPG, we in them us refer so relationship which be I is surgical states relationship our to the the with expanding and national solution, this.

that us. weren't drives pulls into EBITDA us states then with, additional obviously and so through that we number new revenue of to for And begin a in Ryan,

same But being in ASC ASCs other new we're any we'll to that fact into announced opportunity go these those brought this states think we the have existing I that today, to markets. but with

thing part right? and number of this activity MSK that's think just think strategy, across growth a a It's beyond into is be devices implantable is specialties. -- surgical ASCs, different the So I normal with could and I it of about

Ryan Daniels

doctor, would I'm one Center, for is Or AMSURG payer? for be an if it a the to are going my leverage it that the though, And is cases with of just that Okay. that working I all doctors cases IPG solutions? specific at

Seth Blackley

that payer, broader an right? with gives growth it's I in case, a Now markets, and course, it to mentioned have of opportunity us more do earlier. this opportunity those In as

Ryan Daniels

managed Do to the That's business? for And them had think help Medicaid earlier exiting yours and could stimulant control membership to period could some a for look comments increased reduced solutions like just companies the where be the remaining that for growth on Is members be in may potential then members MLR higher of heard we've healthier cost. that Medicaid the a will be Okay. the redeterminations, helpful. well, as you on you that redetermination. provide incentive

Seth Blackley

that sales on example, I good a this of creating pressure are helpful. Ryan, generally dynamic, us for that community, terms the in anything creates an payer think do being it's

category, efforts adjustment again, into in risk anything pressure. that puts similar the going fall side think Advantage Medicare a the have that on I been

I answer is the so yes. to think And that

think a I little up We've horizon that in done broadly, specialty bit of a today one cost at I the There's and as care. more with as lifted the side. lot on look things us And that a lot of payers the primary management. the think less useful has quality conversation next been

helpful that us. innings and we so pressure early we're feel in is comes, still as And to like

Operator

of comes question the Jeff line Stephens. next Garro from from Your

Jeff Garro

I the ask on couple want NIA to a integration.

annual EBITDA the And said quarter so earlier? if of on the the it's first would the in line just with contribution adjusted be you any in performing provide you could had color kind expectations

John Johnson

Only had Jeff, in it's NIA, line. quarter. sure XX good weeks but is feel right about it. the in We

Seth Blackley

and cross-selling well, of integration, on integration it's are, earlier, organizational remarks going kind terms now Jeff, say having Seth, that all and quite of that. like we're really the we side the And would on where and of in broadly Yes. part lot come platform with the mentioned after we things feel the things very focusing in but just happy I we're A the we the more track of

we now. So feel quite sit where right about we good

Jeff Garro

a Yes, know opportunity. ability about sales the Maybe making you're you extent your you you I about that on But the learnings to more valuable it's not kind cross-sell that's maybe pipeline. more to are little building and existing is great. or clients bit combined follow sure more any question that about partner successes excited have would hear what's early to appropriately any organization's up might of to to the the I -- maybe love any early less be prospects? disrupting and making cycle so a

Seth Blackley

Yes. think the the about that is with talked the are IPG X pipeline IPG were we vital in last start have to bought When proceeding expected. months summer. think I when you or anything prior as cross-sell, really or as about Look, think I else Jeff, to fruit. bear We you in in past things X

situation think First consistent be announced the similar would I opportunities NIA. today, quarter was seeing would we like I we and we with think, in it some with start this when one thought

think and we and the about have is prospective we assets to that, long and because comments, The think we we're the platform with have It's that of quite ago, excellent. it as customers I had that's deep really customers where the of ability exciting. excellent. the all talk say room thing a too I pulled of one bunch broad is differentiated in I platform I'll new headed now, to a mentioned and the the that what with together, and different breadth attachment in a is

we're a we're lot to of the direction headed going. it of confidence positive us running a think I and gives keep where on lot feedback

Operator

Your comes line from Tassan the Jessica next question of Piper from Sandler.

Jessica Tassan

us a on you NCH of hoping the network. could provider understand just were help We impact plan

So reduces how workflows by of peer-to-peer love basically, if of actually off to we'd or NCH and understand consoles. prior the friction inserting kind streamlined

or pre post Just on any metrics anecdotes NCH satisfaction deployment? and provider

Seth Blackley

the goal in end improve do things. better. touching a more question. cost. and without the can we to the ways it's the of that our meaningful might And answer we that's Jess, couple a physician's And the and of any how all different reduce At I workflow objective our Yes. do is quality way, day,

we as approval times, for something, high many auto auto rates as approve mentioned. instance, you So very

as a opinion easy that providing BXB it I would thing to actually input is rarely next that And way physician. get automated. more some in right, of a or I second meaning do or valuable that, would we it and denial. actually that's other think We're comes lot work, mention to The we're the form involved as peer-to-peer you very payer what very, doing of do mentioned,

frequently. pretty with we I last thing think Century the And the XX% then our physicians extremely last say I And satisfied was think an on survey I example. I'd survey New was is oncology saw do that for

of confidence in we're doing it has that creating the that Jess. so way us way that a it a gives less friction, doing lot And but value, is

that And over to time the more do over of physician do model time, on continue intervention. not shared right, hopefully to things. that, further into could we're And think going as be the idea improve to to us a this automating on could things the than with and of but I part AI patient just of ability the turn with decision-making rather incentives having our that XX%,

the to of area, on So lot down path you're lead market this we and the innovation moving want certainly a describing. in

Jessica Tassan

follow-up, us in guide? for of really extent what for what me. relationship a that's the assuming then you relationship And has factored That's the And XQ? been that helpful. the then is what persistence run it. adjusted Evolent it just just the XXXX in And or Bright Got to whether rate guys as quick can contribution 'XX into was or EBITDA remind

John Johnson

million change that Jess. from revenue take year. we this there. million right. And year do expect between not $XX that believe one, and we $XX revenue No I'll we I of said expected Yes, next

Operator

next Your the line Dodge of question comes from Capital from RBC Markets. Sean

Sean Dodge

the going Maybe to back just deal. AMSURG

this we and like there involvement the points kind next? Evolent there, data is us you year gets think of paid, expected kind savings give help being and arrangement? tech With triangulate any then or either Or some can revenue to on guess about And I way the it in too? EBITDA this payer shared it, services should contribution from a of to element

John Johnson

Yes.

On bottom on value-based a from per it's predictable the extremely a contributor not like. model size, the and model on revenue line nice fee-for-service but the strong given has would that margins, enables is that line It care I paid chair margins. IPG's huge case. is something the CFO top So

Sean Dodge

could Okay. a you if Great. bit us point is of into the that little now something guess insight I cost And of EBITDA year. then QX simply a low the just give release this all behind just why the for the in Or combination dynamics to those? shifted? expected exit Is tied that for medical or to else is million Bright the or $X be

John Johnson

pencils It question, this releases to just into have year. the how of lay our with Sean. It with the of now good of sense going sharpening better we is $X is. acceleration a the these performance across Yes, data timing margin more quarter, that million on out a that's it's really

Operator

Truist. the Your from Jailendra Singh next question of comes from line

Jailendra Singh

curious, our profit? capitate only profitability clarify why dollars even not want I you cap just related hook is Evolent because payer? confused why quarter? rebate that unique like some $X are you with is this would like And contracts? still in did there particular And how a these payer it's John, all on certain to why trends I Or on So realize said revenue back to go on this a should put Sandy's around as arrangements that Is guys this question rebate. you you considering your to if for EBITDA better? dynamic to impact million allocated And I'm your I'm like the mean a guys reduction. MLR across not that. your minimum this are specialties? little

John Johnson

Yes.

couple one. a of thoughts So on that

Medicaid type this The mature I typically operating when a a you at we to mostly as mentioned better first this And of only as earlier, arrangement. is, that's already have know, is relevant is limited client or Medicaid margins, driving in to having itself a imagine doing client money well. world also is ship very if target And where Medicaid right, is you client the that outsized margins where a can we're our look, than back.

spirit the align partners, with partnership, And of so own consistent in their with seek we way our that regulations. to the is

So revenue reduction. the then what complete, final remove completion, That's in able quarter. can to on in in holds -- that result you're this as symmetric happened IBNR claims based claims and your sometimes on

Jailendra Singh

to Humana half which in by around half, then And helpful. and of on we that of ramp expected to the color all contribution. half I you this contract second general, from Molina the second coming that about Molina EBITDA offset That's half half? you provide seeing say contract? the expect that's I if and first half, Okay. And just in ramp also talked you know second like cadence. like revenue, to up should you quarter could to redeterminations? contract fair What's Humana first know there? But arrangement partially the second revenue the Kind some start about and talked progress Humana begin

John Johnson

Yes.

step taking track ether. of another implementation QX and a So the in live in across up then QX. we'll the And those reverse in is, in Humana mentioned QX on the remarks, see shaping nice up order, nice to as the revenue rest to step year in I

Operator

from Genuity. line Close comes Your Richard next the question Canaccord from of

Richard Close

talk corporate average of and and the about live bit little the April. you like here tech above what go in versus in just that is to more respect Centene MA A to Can rollout with little beginning Medicaid? terms and the a surprised magnitude services WellCare

Seth Blackley

Yes. it's Richard, Seth.

when right? our depth it, to we see, it in at doing job And it's with get what and for many consistent of we're a thought that I that right And we part and Centene. we've of think I good positive, quarters meeting would speaks of to it's generally partnership things, of we and add our a example think, said, a the our a is think seeing them, commitments. question. that, for And Richard, either row, nice towards. Look, many, to EBITDA, it's that, driving I I as a the partner $XXX we faster do great have the million think go the we we're this plan so love with

So I a think piece. it's nice

we've services the about a As past, in and nice has margin tech talked profile.

Richard, relationship of approaching on be line, at we say, And bottom have million not it between line. the run huge $X this rate, while certainly so nice might a the kind and $XX on flow-through really million, top

suite we set and bridge so that And to the along arrangements contribute this very million, about having margin nice with the think of performance like a maturation. that consistent nice EBITDA $XXX

we from people I take those think that call the both biggest away as to today thing I progressing hoped. of the want is are

Richard Close

then Is someone line services, experienced the the maybe of there X has respect had tech And it, in rule with tech potentially doing and since or years time X NCH? the and adopting you over Suite? transition X of terms into any that last, been the services call to years since Performance Okay. historically that's and what you've thumb

Seth Blackley

thumb we had it's slightly Suite. couple It I pressure opportunities, I is, we and earlier question, time largely to that Suite, can over think. is They've think trying of switched happened there more there that the a Richard. more We've the the question, right? Yes, don't part have So the a the solve, is our more different I is think, one. Performance on from what of to good Performance likely customer issue Tech guarantee with a lines. depends, Services rule on on that have savings

bunch to Suite. I straight I you're a of for going the the tech had of it. said. skipped kind continue see there's stop. think just on an Performance We also rule We've to reasons services of think of easy And some Suite to thumb all Performance don't whole go I both

Operator

the David next Your of from BTIG. question comes from Larsen line

David Larsen

think in heard EBITDA. win another announced post-synergy you $XX I of think the the addition like there sort time the And was at million of $XX deployments mentioned addition Did I that I million to in to was I the that transaction. of correctly? this Centene hear

John Johnson

part Oncology that and an the Services were of the NIA MA $XX went Dave. the a expansion Centene million additional the number. $XX announced not Tech No, million. was originally just making point There into was not deal we that

David Larsen

$X It from Okay. of the was health this And $XX in impact terms $XX then I not right? in quarter, million Medicaid million, was think million? $XX it million revenue the plan, or

John Johnson

understand. think I I

that in had $XX was with claims in as sought the a total we About million in revenue $XX related articulate prepared quarter in the $X million reduction to remarks associated to I million XXXX. was what my of well. of So expense deduct

$XX line. dropped The million other our bottom to

Seth Blackley

normal of in things up. that up they're said, David, last I going They're just why the this we're would -- when just it forecast end of them. I'd guidance continuing we question things relative comment course the as make kind these which know of is guidance. to what in, think, -- of highlighting I understand. for ranges. for is sense is think that a to Yes. have John And come We the group. coming. are they're And We inside which factor But David we to We

Operator

of next Instructions] comes Your [Operator Tanquilut question from the Brian line Jefferies. from

Seth Frank

Okay. JP, questions, polled you additional there’s no can else if other if the then in. no one has wrap call

Operator

questions are today's participation. you. Thank further this gentlemen, call. conference and this your at no concludes for Ladies There Thank time. you

disconnect. may now You

Evolent Health (EVH) 3 May 232023 Q1 Earnings call transcript