Claritev Corp Q4 FY2024 earnings call

• Travis emphasized that Claritev earned the right to rebrand as a health technology company by focusing on healthcare, with progress made in 2024 laying the foundation. - They renewed a large client for three years at current value, had wins in health plan and HST products with 8% increase in covered lives and $16M ACV, and PlanOptix payer product had 4 new client wins in 2024 and 1 in 2025 with total ACV $1.1M. - Completed debt refinancing in January 2025 with 99.75% participation, partnered with Oracle for digital transformation, and made progress in provider go-to-market offering with new product launches and pilot clients. - Rebranded with stock ticker change to CTEV on February 28, 2025, and upcoming strategic partnerships and events.

In FY 2024, network-based revenues declined 17.1% from the prior year. Analytics-based revenues increased 1.4% from the prior year. Payment and revenue integrity revenues decreased 1.6% from the prior year. FY '24 bill charges increased 5.3% to $177.6 billion, while identified potential savings increased 7.5% to $24.7 billion. Core commercial health plan segment bill charges increased 6.9% from 2023 to 2024, with identified potential savings rising 7.3% to $23.2 billion.

• 2025 revenue guidance range is down 2% to flat compared to 2024. - Forecast net revenue retention rate in core product segments (analytics, network, payment and revenue integrity) is roughly 97%, including impact of one large client decrease normalizing by Q3. - Adjusted EBITDA guidance margin range is 62.5% to 63.5%. - Expect sequential growth of overall revenues and EBITDA by quarter throughout 2025 with implied exit rate showing low-single-digit growth by year end.

• Operating in a highly competitive marketplace. - Overhang from exogenous events not reflecting Claritev's value. - Need for continued work on driving sales execution for new and existing products.

Q: Joshua Raskin asked about renewal economics of a large client and the 97% core retention being net or client count.

A: Travis mentioned they were happy with the large renewal and working closely with clients, Doug noted the 97% is a net number for the total contract base.

Q: Daniel Grosslight inquired about revenue growth excluding large client attrition, 2026 renewals.

A: Doug said excluding large client attrition, business expected to grow mid-single-digits, bookings growth ~20% in HST and D&DS, Travis added on renewals engaging earlier and looking at changing business models where appropriate.

Q: Jessica Tassan asked about top three customer renewal value proposition and No Surprises Act interaction.

A: Travis said it was a close partnership with real savings yield and focus on NSA, Doug added about approaching larger customers with new products and white space in core markets, Travis also mentioned internal automation and more interaction with big clients regarding new products