CorVel Corporation Q3 FY2025 earnings call

• Investing in technological innovation has been key since CorVel's inception, with a focus on leveraging technology to differentiate services. - The development team has unique leaders, most with over 20 years at CorVel, providing deep institutional knowledge, enhanced consistency, continuity, efficiency, and problem-solving. - The IT team is closely aligned with operations, enabling weekly system updates and new feature releases. - Generative AI-based functionality was implemented in the December quarter to streamline processing of demand packages, IME, med legal files, and takeover claims. - Chatbots and virtual assistants are used to personalize the claims process, improving patient outcomes and medical resource efficiency. - CorVel's advanced dashboards and analytics help payer clients benchmark medical costs, analyze clinical outcomes, and make data-driven decisions for cost management and care delivery. - CERiS is equipped to solve growing demand for medical savings and cost efficiency, onboarded clients through platform contracts during the quarter.

For the December quarter, total revenue was $228 million. The patient management segment, including third-party administration, TPA services, and traditional case management, generated $146 million in revenue, a 11% annual increase. This segment contributed approximately 64% of total revenue. The Network Solutions segment, sold in the wholesale market, had revenue of $82 million, up 16% from the same quarter of the prior year, contributing approximately 36% of total revenue. Gross profit for patient management services grew 15% from the December 2023 quarter, and gross profit in the wholesale business (including CERiS) was up 33% from the December 2023 quarter.

• The decision to execute a 3-for-1 stock split reflects CorVel's strong financial position and progress in the market. - Continued investment in technology and innovation, including weekly system updates and new feature releases, to maintain differentiation. - Repurchasing of shares continues to be funded via strong operating cash flow, with 69% of total shares outstanding repurchased to date.