• FY24 Revenue: $930.6 million, down 3.2% from FY23.
• Q4 24 Revenue: $232.1 million, consistent with Q3 results.
• Network-Based Revenues: Declined 17.1% from prior year.
• Analytics-Based Revenues: Increased 1.4% from prior year.
• Payment and Revenue Integrity Revenues: Decreased 1.6% from prior year.
• FY24 Adjusted EBITDA: $576.7 million, down 6.7% from $618 million in FY23.
• Adjusted EBITDA Margin: 62% in FY24, down from 64.3% in prior year.
• FY24 Adjusted EBITDA Expenses: $354 million, increased by $10.5 million from prior year.
• FY25 Revenue Guidance: Expected to be down 2% to flat compared to 2024.
• FY25 Adjusted EBITDA Margin Guidance: Between 62.5% to 63.5%.
• Debt Refinancing: $4.56 billion exchanged, leaving $11.5 million of whole debt outstanding.

• Warning! GuruFocus has detected 6 Warning Signs with MPLN.

Release Date: February 25, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• MultiPlan Corp (NYSE:MPLN) successfully renewed one of its largest clients for an additional three years at current value, demonstrating strong client relationships.
• The company announced a comprehensive debt refinancing, extending maturities by approximately three years, which aligns with their Vision 2030 strategy.
• MultiPlan Corp (NYSE:MPLN) closed one of its largest ever single-contract bookings of $34 million total contract value, showcasing significant new business acquisition.
• The company is making major investments in technology, including a partnership with Oracle to modernize its technology platform, enhancing scalability and efficiency.
• MultiPlan Corp (NYSE:MPLN) reported an 8% increase in covered lives, resulting in $16 million of annual contract value, indicating growth in its core business offerings.

Negative Points

• MultiPlan Corp (NYSE:MPLN) experienced a 3.2% decline in FY24 revenue compared to the previous year, indicating challenges in maintaining revenue growth.
• The company faced volume and mixed pressures related to a decline experienced with one of its larger clients, impacting revenue conversion.
• Network-based revenues declined by 17.1% from the prior year, highlighting challenges in this segment.
• The company is operating in a highly competitive marketplace, which poses ongoing challenges to maintaining and growing market share.
• MultiPlan Corp (NYSE:MPLN) expects revenue to be slightly down to flat in 2025, indicating potential challenges in achieving growth in the near term.

Q & A Highlights

Q: Can you clarify the renewal terms for one of your largest clients and explain the 97% core retention rate? A: We successfully renewed one of our largest clients at the current value for three years. The 97% retention rate is a net number, reflecting our total contract base. Our top customers, which make up about half of our revenue, have an average renewal term of approximately two years. This metric provides a clearer picture of our revenue retention. - Travis Dalton, CEO, and Doug Harris, CFO

Q: What are your expectations for revenue growth and retention in 2025, excluding the impact of large client attrition? A: Excluding the impact of one large client, we expect mid-single-digit growth, driven by new bookings and recurring revenue in our growth areas. We anticipate a 20% growth in bookings for our HST and D&DS business, with about half converting to revenue. We aim for mid to high single-digit growth in the long term, focusing on cash flow and profitable growth. - Doug Harris, CFO

Q: Can you provide insights into the renewal process and pricing expectations for 2026? A: We recently secured a significant three-year renewal at equal value. We have two more major contracts due in the next 12 to 24 months, and we're engaging early to potentially enhance our relationships. Our strategy includes pricing and packaging adjustments to offer more value and volume growth. - Doug Harris, CFO, and Travis Dalton, CEO

Q: What was the value proposition that led to the renewal of a top client, and how does the No Surprises Act (NSA) impact your business? A: The renewal was based on a strong partnership and the value we provide through savings and efficiency, especially in NSA-related services. We've automated processes to improve efficiency. The NSA presents growth opportunities, and we see potential in state-level opportunities and increased volume. - Travis Dalton, CEO, and Doug Harris, CFO

Q: How does your core out-of-network claims pricing interact with the No Surprises Act, and what are the savings opportunities? A: We focus on NSA and have automated processes to enhance efficiency. We see growth potential with existing clients and state-level opportunities. Our scale and product offerings provide a competitive advantage, and we continue to invest in this area to drive savings and value. - Travis Dalton, CEO

For the complete transcript of the earnings call, please refer to the full earnings call transcript.