EVH - Earnings call 4 2023 | Evolent Health, Inc.

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Operator

Welcome to the Evolent Earnings Conference Call for the Quarter and Year Ended December 31, 2023.

As a reminder, this conference call is being recorded. Host for the call today from Evolent are Seth Blackley, Chief Executive Officer; and John Johnson, Chief Financial Officer. This call will be archived and available later this evening and for the next week via the webcast on the company's website in a section titled Investor Relations.

I will 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 fourth 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

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

Seth Blackley

evening, of results for we joining Good flow, growth goals our year quarter profitability, the and outstanding with achieving with fourth focused XXXX. mission all conditions. and our and complex us. to improving full share our care business year, and for of cash I'm had the our you another excited stakeholders, new for We remain operating thanks on for people

a XXXX. outlook $XXX XXXX for financial as providing reiterated target strong EBITDA million adjusted our we're confidence run as today, in ahead, rate Looking well exit for

our million rate and $XXX we'll be run QX bridge providing target. XXXX EBITDA addition, a results between In detailed adjusted our

supplemental as earlier. the the please on the IR details website metrics, the mentioned review all on press our release and presentation and investor For numbers

for will results. specific from move questions Marriott the I let's to your our or time at have we callouts and context that plenty end. the that, on of focus With John us, so comment comments

Specialty drove $XX.X of EBITDA guidance quarter Fourth at range. the million end year-over-year totaled growth of million, grew of a XX% growth. XX.X% approximately our ago, acquisition the the offerings came and reported revenue totaled XX.X% balance The Year-over-year, from quarter. at growth versus Evolent's NIA with top our XX% midpoint contributing organic Care $XXX.X Care core the revenue total growth. year revenue XX% of in Adjusted of guide. XX% of Specialty to approximately

critical we the to Cash flow XXXX due fourth ended our in million is from ended of flow strong ahead $XX.X model, the we on a totaled collections. cash year position component and strong quarter the cash with Cash and quarter financial and operations million, of we a $XXX where sustainable anticipated hand. exceptionally in of

over for this $XXX at goal million balance to million and year financial debt QX, dividends. activity, And we cash costs, strong metric. ended than increase more the Our by acquisition our earnouts the interest, before was with on XXXX $XXX

Our almost average for members grew product $XX to million the quarter.

All is of headwind XXXX. we've experienced despite Medicaid of the back the this half redeterminations growth in

we XXXX get announcements, a new of let about say into words few growth me overall. Before our some

$XXX.X million, from For initial $X.XX revenue high ago. at for growth. our totaled both year-over-year EBITDA of the XX% year, guidance Adjusted with XXXX the year we of end billion, ended a

headwinds. to many incredibly in who during worldwide to deliver industry of professionals hard committed, help of team customers so we us what year when X,XXX I'm the proud approximately worked mission-driven promise collectively shareholders our the both faced and

been in managed Evolent, we've some for represent the addressable and market. within low believe opportunities value our unique time, challenges we penetration our for care As communicating given proposition

X.X years. principles creation the the of on focused be value I for the John, company team to continue the that used to we and have forward, Going guide last

profitability; strong one, capital those organic reminder, and growth; disciplined growing a two, three, allocation. As are: principles

a target for our also directional On announcing indicator business an growth. This new annually years to of has per useful average X partners the targets, organic new underrepresented of XX versus our but X the outperformed growth, we statistic past have year. consistently is X

expansions, same-store even XXXX the since new using important become operating versus partner counting X alone example, XX metric. which contracts more acquisition, have For revenue important in we the had NIA

plan year, forward Given new this with that all we're whether context, simplifying new existing beginning revenue metric our with and disclosure new agreements. this today count to refer will and or and partners and agreements, revenue track material going to as

X Two, additional So announced far X these investor conference health recently existing of have signed enterprise January agreements with Evolent's which added services we Today, technology oncology the we're first today. client. plan we we announcing an new agreements. in XXXX, revenue and agreement, at and

add be plan, oncology providing health services which health and our now the suite, for will opportunity services is largest is oncology believe medical we important XX providing to agreement creating surgical expansion we radiation the a in provides of path bundle PMPM to the one We this and to Specifically, radiation the already with management this country. services and management plans technology our a future. us the an as surgical it medical for oncology in and to capabilities are

XX% commercial patients. a costs recent study. Most JAMA more of cost according of of importantly, we population us to provide surgical better, the holistic services the care oncology bundling allow to represent approximately PMPM example, will believe For oncology to these in the

third at in today in agreement once expect add technology full We rate this of services announced new revenue approximately annual to year. million the quarter run $XX and this

today agreement Our second new is revenue the suite. for performance disclosed

legacy thoughtfully with Evolent's in base expand out As of fourth across presence a of we plan large contract model multiple is NIA imaging Medicaid. specialties, risk a health to with for a rolled our in client the Performance broader suite states. advanced during This first XXXX work a we quarter

time we total our builds in the at sharing relationship features the will suite in already This arrangement, of annual performance over million oncology acquisition, suite revenue many designed models expanding performance contribute model. cardiology. of NIA which an in into arrangement This is with was performance and as anticipate $XX successful suite proven upon same our that place the risk it

Medicaid. the in understand as advanced that of scope outpatient care to in scans and such important arrangement and cost specific this pet are to It's MRIs imaging,

than result, profile will in PMPMs lower our but the cardiology, we expect be the general or as business. As a Suite existing margin Performance same oncology

Finally, a announced we revenue in X new agreements reminder, January. as

to advanced XXX,XXX we'll existing planning logo Vantage, The NIA a in and clinic in the platform. Evolent health our new the through technology was our services the multiproduct plan an services and cross-sell oncology over health a commercial clients first Northeast in Southwest and and care with Medicare unique implement lives second,

with a organic So with X new start revenue respect great growth our signed, we're off to to agreements already goals.

Our pipeline also strong. remains

see NIA increases believe both the and Evolent existing potential We positioned acquisition that NIA large to believe clients key RFPs. more began makers, within is competitiveness we have because conversations of XXXX, decision we with and to new qualifications customers. During for legacy progress Evolent

specialty to More to cost of importantly, risk-bearing health manage and increasingly are plans quality us help and the turning physician care. groups

this the experience truly We to their the engaging increase costs with plans have patient not particular and that seeing changes we improve risk partners have importance pressures. and is help We manage found others past differentiated. because that time, organizations friction adjustment is same utilization focus many will months, general care some of specialty on believe at providers. citing increased can the and these Evolent where on management V-XX X over placing We're

of health increases are plans work care look at seen struggling oncology our cost with many an annual over XX%. as example, you cancer the in of with If many cost

seen for example Some of of we've new PD-Xs or range increases existing were rapidly. of categories is as therapy oncologists cost One or checkpoint uses well broad driven to of new a indications medications. these immunotherapies marketplace cancers. are that new in such noted using by continuing as One drugs for increasingly are inhibitors grow existing the

popular revenue billion of PD-X annual at called one Keytruda $XX in just fact, XXXX. In

cost the be certain they these are patient sorts of per life-changing truly the patients. dramatic, can therapeutics cost While for worth that of are instances, in they

research treatments it advance often effective. they advance unlikely are to be or is can However, be that are in such known that in prescribed known shows when

effectiveness are for of we that effective completed. oncologists the in genetic our therapy other these To the therapies, with has most will Commonly, a or it's partner that be the to selected patient. clinical companion completed discern are diagnostics research test the diagnostics critical the the companion that ensure shown treating hope

high-cost only trust-based way the partnership Our well for more and cost suited complex and the these address particularly dialogue all when oncologists. options approvable quality oncologist situations is into with to the is model a treating are consideration entering and under are by with

operating of second profitability. our to Moving strong priority

detail. will discuss also few Let more in this me reiterate and points John a

I think driven is by strong in success commercial. diversification Medicaid the XXXX outlook our Medicare, for and and our XXXX across we had

Suite mix between our Technology have Services we strong addition, businesses. and In a Performance and

industry the us, prior line see in-line to the QX Within performance. our in many utilization. we continue of experienced Performance expectations, continued with while in strong Suite, for higher-than-expected our trend results had

in Our the Xx. target NIA third at acquired disciplined strides we We And capital allocation. lowering time than investment generating exit XXXX at great financing. is ahead the theme quarter X.Xx cash, of of ended made set XXXX, net debt cost delevering business our well leverage, the of in the we less and we

out Further, to existing loan. offering completely term convertible in December, us swap we conducted our that successful allowed a

consists outstanding of facility through senior only our revolver. million So $XX.X our

outlook. as me a as dive for now And provide story and John it cash our with comments, hand to well will let into those and profitability who deep XXXX financial our

John Johnson

growth; second, tonight on some target. adjusted first, and growth, coming where X Thanks, our Seth. from I'll remarks EBITDA our focus path around areas: our metrics my $XXX million to it's

Fourth, XXXX care affect and and to XXXX expect outlook for environment XXXX. in will to perspective key the they with what our and flow cash affecting guidance. finally, how And Third, managed QX and on our factors Evolent. close production view on a we our performance ahead XXXX cash might I look in

quarter-over-quarter QX top unique our with the redeterminations. our delivering growth of Medicaid Beginning with from ended on excited in per due cross-sell I product of unique strategy per and growth. members in line despite of products in of 'XX X.X more decline continue we value the our average first strategy a We're to believe balanced quarter the members up demonstrates unique delivering growth to XXXX. at year member, X products an member, of

Evolent's to points into I With investors the PMPMs. a give imaging, performance discussed, of as advanced reference want expansion Performance suite on Suite Seth few

based that scope of manage. the on the capitation costs are underlying Our actual we fees

And by so geography population, PMPMs and can specialty. vary

we will high anticipate end. per $XX member suite work populations, at Medicaid prevalence Similarly, typical be low these and end per is of smaller on based line $XX between a member For business the to $XX Medicare the relatively costs a typically in scope performance per might fees and average example, Performance $XX the month. similar lower cancer at oncology suite for fees between Hence month. are from $XX $X of advanced per imaging by with vary in

value shareholder for Turning to pillar creation. adjusted EBITDA consistent which remains a expansion, long-term

pleased 'XX, primary are be Investor delivering the Day, almost We our year, to our articulated we QX of X we exit targets at sources with adjusted track as May to relative growth on XXXX. EBITDA of growth. profit EBITDA XX% adjusted of of In

second, suite First, third, acquisitions; adjusted our of EBITDA the our from new contracts; and recent Performance growth. maturation

our of in from drivers our core million for on from business X of As nearly these quarter $XX over see annualized Slide with same the of you quarterly resulted organic can adjusted business million sources the presentation, $XX same last year-over-year core year, versus growth performance improvements. performance QX EBITDA

result in saw suite over of of through at with percentage an 'XX, points margins looking initial consistent our conservatism example, For actuarial between XXXX cost the QX 'XX QX and of model. improvement our both and XX we launches, and targets improvements performance quality of and our

this administrative our legacy certain expected in was headwinds part services and clients Medicaid offset in core runoff the by during business performance redeterminations During XXXX. of XXXX, from

administrative run for will target $XXX while well time the are EBITDA with exit XXXX. business exit and adjusted we continue 'XX, understood to us Importantly, core million towards complete headwinds drivers services propel bound as these impact our our rate

You can of Slide the on detailed presentation. X this see

this the year in relative First, $X NIA Medicaid adjusted from adjusted the on annual bit; approximately we $X contractual were million approximately by a realizing to the I'll quarterly in $XX discuss of from approximate million EBITDA adds an second, EBITDA quarterly end a basis. which more synergies deal QX headwind anticipate million to of redeterminations 'XX,

range expect EBITDA Performance contribute profitable live, million exiting our million adjusted we in in deals that And quarterly we projecting year. the approximately quarterly an new Suite, are an adjusted already $X finally, EBITDA on announced once go-get. $XX additional $X For as EBITDA incremental adjusted we they this have growth, will quarterly approximately leaving are our million in of

color Let of provide each this me additional some bridge. on element

are high have feel phasing base. First, revenue revenue already on side. that related recall contractual are agreements achieving that that they the them We NIA in nature, both confidence services the and in started synergies in cost new

later side, transition cost we services expect this the to exit On agreement quarter. continue to the

Performance $XXX just the revenue the For experienced Performance on for during of initial XX% suite, million launches we expansion driven primarily over XX consistent in Suite is is XXXX improvement and forecasted by margin launched with the over across XXXX. what

the from of about business million front, May new initially that of $XX EBITDA our And new for ago. million or we $XXX adjusted 'XX run X rate in targeted months growth recall

in have would million We $X at quarter likely target. beyond range our of pace per the gap remaining, us the or million get of that $XX year-end approximately same continuing sales

activity, balance costs, a more XXXX transaction, Turning than now NIA to by paying increase net acquisition goal before debt the we we set announced and million cash. earnouts our When $XXX dividends. for cash to interest,

$XXX cash than metric, million. $XXX million this of more delivered a discipline fiscal balance in on year-end resulting Our

in to heavily go-forward value-based are integration organization our we restructuring strategy were in investing in have We year pleased care. and delivered to also with a business where specialty align this our

forward, on provide flow our for Going cash outlook we line operations plan the statement. cash to from an

Our a from included of which benefit from operations $XXX approximately XXXX capital million. working $XX million, cash was in net

capital our we've customer of fluctuate working timing on noted, can based As previously payments.

for working of at $XX operations year. for target XXXX. expectation capital cash for relative of a XXXX expect to growth would XXXX use in operating Our flow working fluctuations, cash an Overall, in from of cash million $XXX least of modest in net the during our we capital million includes

remain for they To several continue priorities will to same first, years. invest have cash development core as specialty product strategy of in flow the care. we allocation capitalized for our capital been Our advance reiterate, to value-based

this accelerates that and disciplined that M&A count interest. reasonable cash net leverage, capital strategy; structure a strategic targeted and third, Second, share balances

in expenditures, business to anticipate primarily competitive costs continue and continue $XX the in care. software development in approximately reinvestment complex annually specialty capital leadership We to million capitalized our

the our characterized on redeterminations outlet. The on the environment themes. of base We'd our customer In been for of managed The been top been question primary of the question has impact Advantage, to recently XX% Medicaid, XX% primary has important today primary and and X representing views care representing revenue. organizations our has how reiterate like bottom lines. revenue, In these elevated impact Medicare about utilization. our by trends

our gross X% we basis same-store Medicaid We decline First, middle ended the Medicaid of to continue with a redeterminations forecast on our this track of in of year And to total forecast continue X.X% expectations. to membership a a year. the XX%. compared the to decline mid-teens by

we've in Performance seen As the changed, metrics our increase membership an expected in utilization business. has modest Suite

X,XXX approximately up redeterminations our the consistent members. by was X% on authorizations Medicaid year-over-year to was per For the members We the a with example, services in that cardiology redeterminations. population X.XX X.XX authorizations in leading expectations. again, estimate QX, line $X total to from of of stat impact That X,XXX up an same average per for in million saw QX we bottom typical Medicaid 'XX of start

of than way and is now through how process Importantly, good here February, more it are in into the very have XX% believe we this we out. playing insight sitting

in guide by We exposure. we our $X.X additional have is a assumed fully our believe in quarterly impact the summer, place in gross an which reasonable being estimate total of million

HMO beginning during among prompted has cost from Next, their indicates the which tend risk plans shifts there commentary XXXX. a supplemental QX, population. elevated for MA regarding and limited MA many in benefit inpatient significant Advantage, are MCOs to particularly PPO preference more networks. have Medicare drivers. growing planned utilization benefit members versus for several is plans, many underway And model the in The revise to utilization, V-XX particularly within There payers design

Specialty authorization. that about for develop. the trends we of wait As requires a take without risk into Evolent, that insights gives most in we think Care substantial recall claims prior This us to to having

would take I pieces in With prudent year risk given than and thoughtful leading same wider range that indicators want our Medicare any said, at of for costs we QX not we key for statistically clear a time, have annual the elevated guidance we approach seen that and it's to to number XXXX, and the moving our with give. Advantage areas. on be that very a believe this in the in unknown typically to trends significant data suggest our

So let's to then turn XXXX guidance.

uptake full top revenues outlook strong line, by organic continued $X.X mid-teens and projecting ahead On the XX% Performance of we and our midpoint, approximately our of are baseline year the $X.X between long-term billion Suite billion, driven products. growth representing at well of

On full approximately The ago. of a $XXX XXXX, increases at this factors and the for midpoint. medical growth potential a includes bottom moment year-over-year unexpected between industry million in the of year representing buffer adjusted we bottom mentioned I outlook the line, given in million, $XXX EBITDA XX% are X/X projecting utilization

between EBITDA first and are quarter, $XX $XXX For million between million the expecting million and $XXX we adjusted revenues and million. $XX

We XX% and million, about target between XXXX. XXXX in expect our sequential half first This in year we quarter-to-quarter adjusted year. adjusted of for with adjusted adjusted the first EBITDA growth EBITDA the exit and across this $XXX spread for second our as towards performance with of ramp accounting the of half of revenue and is EBITDA Evolent's EBITDA consistent the year both

operations $XXX $XX We the or and from million for million better approximately are expect cash software year development. of in to targeting capitalized deploy

for With up we that, it questions. will open

Operator

comes with from Instructions] the Caliendo UBS. question [Operator And Kevin first

Unknown Analyst

and you of of et first into color service year. extract just guess I then It's actually sort of impacting wins that. on trends you maybe of guess, quarter, now, onto do redeterminations quarter capture? the I kind think admin I sort Kevin. business a cadence for that about impact expectations the things of all of extract if more for right Andrea sort thinking talked And some Is all guess, the Medicaid cetera. And about the I embedded sequential contribution? the new the within appreciate how those of fourth third the half, we in the about

John Johnson

Andrea, say Happy that to things. take X one. I'd

And First, the new question the on performance relative overall. of across year to business specific your to cadence then wins.

we look the 'XX, make that headwinds As from 'XX in some that observations performance we the -- we of would one EBITDA compare at of the key our core and little run to the in of a the services increased terms in in is on experienced administrative 'XX are us, out EBITDA performance. redeterminations go for side. to is and specialty the mostly continued expectation And with Medicaid organic performance very with behind now recent bit adjusted our our consistent drivers Medicaid

So I million our outlook characterize run move that's as $XXX towards exit how here we rate. the

I'd of on that On about likely is side, there, in this largely across that in quarterly across phasing on will million contracted, half page, And you what the remainder that split the already the quarter the the first about page per phasing year. is business into see be $X you see new which the full year. $X million contribution more of of

Operator

question Securities. Truist Jailendra Singh next the comes with from And

Jailendra Singh

First, BMP it QX. of intra-quarter lives to like in cleanup QX clarification. a Imaging range a the We ballpark? out the And because was to calculate rolled plan rolled are kind out This intra-quarter increase should one for QX Medicaid from we quick expect question. contracts of in $X

think was to health about is unique there around services oncology other see opportunity, to medical oncology contract services. Or add something oncology are oncology medical with is contract plan? with existing the services radiation question to willing quantify? opportunities services? this new Do surgical health if you do there an existing you And an plan to your main add these you and My additional

John Johnson

the first Jailendra, I'll take part.

quarter on for have increase turn in and Seth go zone an lives full other performance expect QX I'll to we that average PMPM, would in of the the piece. a the live. since in You're the we suite

Seth Blackley

oncology. We little arrangements and think all do and clear yes. Jailendra, where think technology of the Medan, the I we answer today second surgical Yes. we additional services across do for I very to services that technology see opportunity. opportunities question that's side, a radiation the have is and and of our both Across

and we side, of suite a Performance do actually the bit we oncologists. little don't oncology surgical today, on do Now radiation

their the not to sense you surgery surgical attractive. opportunity. just the which a script, to to surgery, is point think is your opportunity is around of oncology I wanted immaterial We it's did for So give also here what an quantify PMPM the and just we radiation in

the is for it's So and think development and suite both benefit the -- we'll this on technology the side. real a us I performance company

Operator

from the question And next Jeff comes Stephens. Garro with

Jeffrey Garro

little that could and get bit hoping achieve target. EBITDA you more you $X achieve to target? some comments But setup could any a to contracts from and whether that and guys get certainly services, the was and the Maybe paths you it's comments more about the would I $X I And color say. million positive what technology pipeline visibility you to there's to wait types the you multiple on assume million but there? have of ask on provide that get more hear on go to think

Seth Blackley

Yes. Sure, Jeff. Good question.

just reiterate of of look, we slightly think, what line the we that. been schedule $XXX achieve ahead get pacing there I'll need I time that we've script, do tried have been we pacing the on the million to to that ahead for thing the exit is to in would the

of what get we'll easily continue line bottom we doing to kind the need there. and think we're is I So

and or maturation In to there, is there some your down numbers break of one not of and on there's tech what's other could get multiple performance main the would us in the you suite there. the ways what well what's point. but more part that. page, that, terms that's on of as opportunity we to the to both we'll get the talked there about path But to I this say are of back gap go get if when services there, more

or pipeline, terms more or talk point lot call just in which detail. the some little pipeline, growth. we'll got a this in they're new We've the I'm same-store RFPs of net whether And sure in at in about of lots opportunities a opportunities,

of closing end the that to good the really feel year. we of gap about kind the path by So

Operator

from And of Barclays. Stephanie Davis the question comes next

Unknown Analyst

This ] for on Ana is [ Stephanie. Rudensky

guidance about the noted unknown or reflects you utilization. So wider range

Just the what low any and could guidance to curious the revenue agreements. can if of you the you assumes share visibility level X beyond and what high just of end speak new end

John Johnson

Yes.

piece. me first Let take that

bottom, what of the think end us take to to As what we can range. about take top could the us the

noted that the bottom have viewing remarks, what industry, utilization, prepared million is have what not But I medical given we're in believe $XX as third for about As in writ is unexpected seen we're again, we buffer our which large, in the seeing. our we to it's prudent outlook.

of two, think On One range, we our take services the things. what top us year this of really clients; performance on during side X largely go about beyond how technology timing the $X.XX range. suite year suite. the could to the and is the and and outcomes That's lives, is of

Operator

Daniels next from with Blair. William the And question Ryan comes

Ryan Daniels

and you hit more it hitting getting mentioned B-XX, Congrats you authorization they've with this with little in Obviously, utilization on like actually MA the strong types, on a one Medicaid phrase Seth, some pipeline. on plans utilization then you've bit plans I let including set the things of performance. prior And up, to redetermination, payer do and management hit got me all pressure the detail. commercial. but got higher want

takes driving the in product things these kind you're for could where are your little the pipeline unpack solutions bit of pipeline maybe and So how for various puts yours such and as you seeing offerings? and kind of demand different a

Seth Blackley

happy to, Yes, Ryan.

that have it put have categories. product. been seeing of things the for X for probably years I'd the we which One X is continued, into the look, is kind demand last traditional So

more and all or side would cycle, And right, it's payer and a work that months to a frankly, much to I think year of category, deal acute a this before of X team organic their pressure quarter opportunities. focused newer, on a for and and their ratio goal would shorter fourth gap is more loss RFPs is also what pressure, a underwriting medical second sudden, beyond. the more on taken is where which their has call, have I around, year sales

the So for that's last, kind second of newer that's months. X over the category us say,

define have because a But are integrated pulled in different and things And then to a available together way. now fashion this of third NIA ramped. very us, those it, we're I offerings year bundled IPG call those more and pockets I fully ago. third integrated We've the and along Evolent kind to of like think all is would the looks for evergreen that that point the that several category, and and us in Vital of of us announced that around really kind not category And at promising. in category available

Ryan? help, that Does

Ryan Daniels

that's Yes, great color.

Operator

And your comes question with next from Samuel Anne JPMorgan.

Kyle Aikman

your TAM Imaging. This Investor laid is you the ask in this total was suite quarter. the cross-sell Day. tonight. Performance Does great to for you Kyle I out change in Annie Congrats your offering on that on just going about how your size within market

think future frame of in Just trying this how we about partnerships. to terms

Seth Blackley

does it market. addressable total increase yes, Kyle, our

that updated really We haven't quantified or that.

$XXX it market. Formally, dollars We're out little it does a a bit. billion billion couple of increase of

the I little does it lot But big So picture the think bit have a make we running yes, it a market which change is really for of bigger. room. doesn't us,

Operator

Tassan question comes Sandler. And from the next Jessica with Piper

Jessica Tassan

Humana if and I understand your just contract the at wanted to scope clarify has of Florida with all. changed

I certain think was initially, counties. it limited to

could suite solution Performance the equivalent curious you X, then in products performance beyond kind X, hoping book? a precautions talk those kind contract about little bit and you're whether you of pricing and order would in that Suite of expecting Imaging process to rest know as the took margins price just year of X, Advanced in maybe thought now in is Just the that statewide. the to you if just that, And the

Seth Blackley

one. and year. Yes. changed relative it's the since Jess, it. of not last No, to we launched has what we shared on I'll answer Humana kind the track announced first And Florida

John Johnson

risk new the terms rest around around imaging risk looking way that to Evolent is to example, the of performance our opting for product, factors the think guaranteed we scope, be customers' protections key of of take, needs on the performance buying and we to quite responsive outcome, a principles about the them way delivering similar like for which manage that suite. terms the the in for very of specific advanced see customers one Underwriting to Yes. in be suite to the the that we that we

Operator

Charles next question with TD Rhyee from the Cowen. And comes

Charles Rhyee

of mirror follow that question I suite mentioned we of when the on around range, of experience more I performance think an had saw sort Or to you we 'XX to assuming kind you Maybe think you've of end higher and that this to far? kind on of in sort you are get 'XX? range maturation the of about wanted the up performance end so sort of year? what set maturation consider earlier to be that sort of can you recent conservative higher of kind maturation. the would what

John Johnson

Yes, good Charles. it's question, a

launches. launches of what that 'XX we 'XX and I us think is the that for the run of at be end saw the range, items saw saw the to performance million on the performance as one at think we of with 'XX. 'XX across 'XX 'XX in look on $XXX top similar we 'XX exit across that's the we the consistent rate and there, the that And would both I experienced giving confidence

across think, performance has been was So that years and with, that consistent couple years. of and here new this margins launched and year, got performance focus very of XXXX, that of last driving performance I performance on our up obviously, with over over we've of business in $XXX a book revenue now the quality stacked several important suite million consistent

Operator

Close the question with And Genuity. comes from next Canaccord Richard

Richard Close

you pipeline. on particular Are all mentioned Ryan's on there? little cross-selling? appreciate seeing talk bit cross-sell on Seth, question a cross-selling? product Can quarter, you Congratulations any is you the Or where about most the the the I that on you do fruit more the strength Maybe, of and in the to details. the low-hanging think

Seth Blackley

around seeing your different model we're but genetics I a MSK. yes, cardiology, had strength you give a in a from that's that if around into have couple oncology, look, perspective, place conversation me Imaging Richard, it One think we some about condition examples. imaging traditional a let few broader we the and an comes of areas, you what management eventually customer, incorporate and NIA can is and fact

at better It's I at than plan right? vertical that's given to holistically example. like things one and proposition think the good the member obviously just So look for a rather for just a Enogen, look

though, oncology example, into types or right, for and instance. customer, conditions part imaging managing radiation for it's sense included understanding of makes this -- oncology, critical have where for now imaging the Evolent-only and that excuse an traditionally. those scope or cardiology that not step a imaging is we as me, we of imaging good And because Another historically, was not our X other

it's think and give around largely NIA though, some I the So end around IPG. around opportunity. life of also you I'd examples,

across a the little probably those and leading it's bit been example think well. board, pack, I imaging the but others is have IAA so as And the and attractive

Operator

And from the comes next question Larsen David with BTIG.

Jenny Shen

Dave. Jenny is Shen on for This

it So good has utilization with like you. been sounds

seeing you're And you Just of with in outlook about the that overall talk business. MSK the amount you risk longer-term also procedures your in that broader space, the can specifically? in in what take increasing increase of your knee business and hip

John Johnson

Happy take it. Yes. to

currently not take do risk in MSK. we So

So us increases do in not utilization impact that side. the of risk kind on

have XXXX map look about that launch. a would in that's Performance of likely We products products. conditions risk-taking our building Suite on And the like musculoskeletal for rest the talked road a

an year. this for be focus, important to but continues it not product So

Operator

question Sean And Dodge the from with RBC next Capital Markets. comes

Unknown Analyst

thanks Keller the This Thomas is [ on for detail slides. for ] the all on And Sean.

we How something this Humana some the be question. new sort in Florida before relatively structured further? the Just states into required that is trial Or could short order? earlier expand expansion Is pushed potential a wanted fairly period about there to other Arizona. a of you can of outside follow suite up think and performance on should

Seth Blackley

Great question.

consider or other So opportunity I several years in Suite is an and from that. actually certainly very in Performance experience think it's an with our of there akin other to last intention states expanding to the terms X payers over which to states, X there's

phase in do right delivery order us heads down is priority to for expand in the I on really of when think outstanding right states. there. to And We're on that kind now delivering outstanding a earns our and we job always for that good performance. The X the new X first partner months performance of

payer to the something do it just do our opportunity right priority right And to so and a we'll in But have the the of a more not that, our it's do expectation that's partners generally that for now, states, and execution couple answer but broadly. is on front. delivery

Operator

And Guggenheim. with the next question Jack Wallace comes from

Jack Wallace

how then does question got to typically Congrats about that you're revenue? follow-up a quickly imaging and And the on on turn when the I've [indiscernible]. opportunity the Thinking quarter. capability, selling

Seth Blackley

that we cross-sells -- seeing We've the think for since Yes, already little to I transaction, several and a Jack, about we're bear announced. been we've that a of look, year opportunity us. been come it's seen NIA we've fruit some closed

those it conversations, that so a client where either one it. again, it, opportunities legacy a I often months to direction, It into client paying zone those now takes in a you I'll very cycle off. get are be but if could legacy have around is X And NIA prudent or could go now. sales And we're in of think call Evolent

Jack Wallace

be Excellent. can as going talked up think case business but a quarter in that haven't that, much if can really fourth And was b revenue you of per forward? what persistent will the the then pick business, in driving about

Seth Blackley

a had you to tough I time Jack. understand there,

John Johnson

repeat an there's you Jeff, said, you could just just it's echo. what

Jack Wallace

going on fourth persist in it was per Yes. the structurally there's the quarter? the Or airport. up Apologies of that bit wondering Wondering a just if revenue an I've is been anything the in forward? little like cases going looked activity I there about case business, quarter. would timing

John Johnson

organic components particularly also and structural. a regular just nothing seasonal growth. the There's Yes,

Operator

to any conclude back like Seth Frank right. I This the for All does turn Instructions] question-and-answer the [Operator comments. closing to floor would session.

Seth Frank

tonight you evening. forward Thanks good for Have Great. joining connecting a look offline. to with and

Operator

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

may You lines. now your disconnect

Evolent Health (EVH) 22 Feb 242023 Q4 Earnings call transcript