ARLINGTON, Va. - Privia Health Group, Inc. (NASDAQ: PRVA) reported a significant beat on adjusted earnings per share (EPS) for the fourth quarter, with $0.15 compared to the analyst consensus of $0.04.
The company's revenue for the quarter also exceeded expectations, coming in at $440.8 million against the consensus estimate of $426.53 million, marking a 21% increase from the same quarter last year.
Despite the strong fourth-quarter performance, the company's guidance for fiscal year 2024 forecasts revenue between $1.6 billion and $1.675 billion, which falls short of the analyst consensus of $1.913 billion.
This conservative outlook reflects Privia Health's strategic adjustments, including renegotiating Medicare Advantage capitation arrangements and exiting the Delaware ACO, which are expected to reduce capitated practice collections by approximately $198 million year-over-year.
The company's full-year 2023 results showed a 22.2% increase in total revenue, reaching $1.657.7 million compared to $1.356.7 million in 2022. Gross profit also saw a rise of 17.0%, and the company achieved a net income of $23.1 million, a notable improvement from the net loss of $8.6 million in the previous year. The adjusted net income grew by 27.9%, resulting in an adjusted EPS of $0.64, up from $0.52 in 2022.
Privia Health's achievements in 2023 included a 19.4% increase in implemented providers and a 30.8% rise in value-based care attributed lives.
The company's strong fee-for-service collections and value-based care performance, along with growth in new markets, helped offset the impact of a capitation contract restructuring announced in the first quarter.
Looking ahead, the company plans to increase provider growth in existing geographies, limit downside-risk arrangements in the Medicare Advantage market, and continue business development efforts to enter new states. The company also aims to achieve operating leverage to drive adjusted EBITDA growth and convert 80% of adjusted EBITDA to free cash flow.
Privia Health's CEO commented on the results, highlighting the company's ability to deliver high-value care and expressing confidence in their strategy to navigate the Medicare Advantage market challenges. The company's focus on optimizing physician practices and improving patient experiences remains central to its mission.
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