Privia Health Group, Inc. Q3 FY2024 earnings call

• Privia Health had strong financial performance in Q3 2024, with implemented providers up 13.1% and Adjusted EBITDA up 25.8% year-over-year.
• Accountable Care Organizations in Medicare Shared Savings Program achieved shared savings of $176.6 million, a 34.1% increase from 2022, serving nearly 195,000 Medicare patients.
• Entered Indiana in partnership with a multispecialty practice of over 35 providers, expanding the footprint.
• Implemented provider count is 4,642, caring for over 5.1 million patients across 14 states and D.C.
• Gross provider retention over 98% and net promoter score of 85 indicate high patient satisfaction.
• Business model is diversified across specialties, reimbursement models, and payers, driving recurring revenue and EBITDA.

Implemented providers grew 13.1% year-over-year to 4,642. Adjusted EBITDA increased 25.8% from Q3 a year ago to $23.6 million in Q3 2024, with a margin of 23.3% of Care Margin. Practice collections reached $739.9 million in Q3 2024, up 2.3% from Q3 a year ago, and $2.18 billion for the first nine months of 2024, up 4.5%. Attributed lives increased 14% from Q3 a year ago, with commercial attributed lives up 14% to 770,000, Medicare Advantage up over 24%, and Medicaid up 41.7%. Revenue contribution is diversified across commercial, government, and value-based care programs.

• Raised guidance to the high end of initial range for all metrics, with attributed lives expected above the high end.
• Expect approximately 90% of full-year adjusted EBITDA to convert to free cash flow due to capital-light operating model.
• Target annual adjusted EBITDA growth of 20% or greater.
• Confident in driving organic provider growth and increasing operating leverage for long-term growth.

• Variability in value-based care book performance, mitigated by over 100 diversified programs.
• Fee-for-service book variability based on utilization trends.
• Potential misjudgment in value-based care performance as a key source of variability.

Q: Impact of benchmark rebasing on MSSP performance?

A: Diversified strategy factors in re-basement; value base book diversified, growth guidance factors in all such elements.

Q: Margins of capitated book and Q4 utilization trends?

A: Capitated book had better margins than expected; navigating headwinds, results reflect data up to reporting; Q4 trends to be seen.

Q: Acceleration of attributed lives next year?

A: Attributed lives follow implemented providers and new programs; can accelerate with business development, but long-term steady growth expected.