Privia Health Reports First Quarter 2025 Financial Results
-- Strong First Quarter Performance and Operating Execution
-- Enters the State of Arizona
-- Full-Year 2025 Outlook Raised to Mid- to High End of Guidance Ranges for
All Metrics with Attributed Lives Unchanged
ARLINGTON, Va., May 08, 2025 (GLOBE NEWSWIRE) -- Privia Health Group, Inc. (Nasdaq: PRVA) today announced financial results for the first quarter ended March 31, 2025.
Three Months Ended March 31,
----------------------------------
($ in millions,
except per share
amounts) 2025 2024 Change (%)(*)
----------------- --------------- ---------------
Total revenue $ 480.1 $ 415.2 15.6%
Gross profit $ 103.6 $ 93.4 11.0%
Operating income $ 5.2 $ 0.8 534.0%
Net income (a) $ 4.2 $ 3.0 41.4%
Non-GAAP adjusted
net income (b d
e) $ 27.8 $ 22.5 23.3%
Net income per
share $ 0.03 $ 0.02 50.0%
Non-GAAP adjusted
net income per
share (b d e) $ 0.22 $ 0.18 22.2%
* Any slight variations in totals are due to rounding.
a. Net income for the three months ended March 31,
2025, included $17.8 million in non-cash stock compensation
expense. Net income for the three months ended March
31, 2024 included $11.9 million in non-cash stock
compensation expense.
b. Reconciliations of non-GAAP adjusted net income
and other non-GAAP financial measures are presented
in tables near the end of this press release.
First Quarter 2025 highlights include:
-- Continued strength in same-store growth and new provider additions; -- Practice Collections of $798.6M, +12.8% versus 1Q'24; and -- Adjusted EBITDA b d e of $26.9M, +35.1% versus 1Q'24.
Key Operating and Non-GAAP Financial Metrics (b, d, e)
Three Months Ended March 31,
($ in millions) 2025 2024 Change (%)
----------------- ------------- ------------
Implemented Providers 4,871 4,359 11.7%
Value-Based Care
Attributed Lives 1,270,000 1,143,000 11.1%
Practice Collections $ 798.6 $ 707.7 12.8%
Care Margin (b d) $ 105.3 $ 94.9 10.9%
Platform Contribution
(b d) $ 51.7 $ 44.7 15.6%
Adjusted EBITDA (b d
e) $ 26.9 $ 19.9 35.1%
Privia Health Enters the State of Arizona
On April 9, 2025, Privia Health announced its entrance into the state of Arizona in partnership with Integrated Medical Services $(IMS.AU)$, one of the largest independent multi-specialty practices in the state. IMS has approximately 70 physicians and advanced practice providers in 21 locations, and manages over 28,000 patient lives in value-based care arrangements across Commercial, Medicare, MA and Medicaid programs. Privia Health paid $95 million in cash at closing.
IMS is the anchor practice in the launch of Privia Medical Group--Arizona, and is expected to be implemented on the Privia Platform in the fourth quarter of 2025. The transaction and launch in Arizona is expected to be profitable starting in the fourth quarter of 2025.
Updated FY'25 Guidance (c d e f)
Privia Health raised its full-year 2025 outlook to the mid- to high end of most of its guidance ranges, as follows:
Updated
FY 2025
Guidance
Initial FY 2025 Guidance at at
FY 2024 2.27.25 (c) 5.8.25
---------- ----------------------------- ---------
($ in millions) Actual Low High
---------- ------------- -------------- ---------
Implemented Mid to
Providers 4,789 5,200 5,300 High End
Attributed Lives 1,256,000 1,300,000 1,400,000 Unchanged
Practice Mid to
Collections $ 2,968.0 $ 3,150 $ 3,250 High End
Mid to
GAAP Revenue $ 1,736.4 $ 1,800 $ 1,900 High End
Care Margin (c Mid to
d) $ 403.9 $ 435 $ 445 High End
Platform
Contribution (c Mid to
d) $ 195.6 $ 208 $ 218 High End
Adjusted EBITDA Mid to
(c d e) $ 90.5 $ 105 $ 110 High End
-- Guidance assumes minimal year-over-year increase in value-based shared
savings accruals given current environment
-- Guidance includes impact of Arizona market entry, and assumes no other
new business development activity
-- De minimis capital expenditures expected in full-year 2025
-- At least 80% of Adjusted EBITDA expected to convert to free cash flow in
full-year 2025
-- Effective tax rate expected to be approximately 26-28%
c. Management has not reconciled forward-looking non-GAAP
measures to their most directly comparable GAAP measures
of gross margin, operating income and net income.
This is because the Company cannot predict with reasonable
certainty and without unreasonable efforts the ultimate
outcome of certain GAAP components of such reconciliations
due to market-related assumptions that are not within
our control as well as certain legal or advisory costs,
tax costs or other costs that may arise. For these
reasons, management is unable to assess the probable
significance of the unavailable information, which
could materially impact the amount of the future directly
comparable GAAP measures.
d. See "Key Metrics and Non-GAAP Financial Measures"
for more information as to how the Company defines
and calculates Implemented Providers, Attributed Lives,
Practice Collections, Care Margin, Platform Contribution,
and Adjusted EBITDA, and for a reconciliation of the
most comparable GAAP measures to Care Margin, Platform
Contribution, Adjusted EBITDA, Adjusted Net Income
and Adjusted Net Income Per Share.
e. Certain non-recurring or non-cash and other expenses
will be treated as an add back in the reconciliation
of Net Income to Adjusted EBITDA, and the reconciliation
of Net Income to Adjusted Net Income and Adjusted
Net Income Per Share, the details of which can be
found in the Reconciliation schedules near the end
of this and in future quarterly press releases.
f. Any slight variations in totals due to rounding.
Webcast and Conference Call Information
The Company will host a conference call on May 8, 2025, at 8:00 am ET to discuss these results and management's outlook for future financial and operational performance. You can visit ir.priviahealth.com/news-and-events/events-and-presentations to listen to the call via live webcast. The webcast will be archived and available for replay for on-demand listening shortly after the completion of the call under the same link. If you wish to participate in the live conference call, then please go to https://register.vevent.com/register/BIa226cff209a046a0ae8a7711f796fc02 to pre-register and obtain your dial-in number and passcode.
This news release and the financial statements contained herein, and the slide presentation for the webcast, are also available on the Privia Health Investor Relations website at ir.priviahealth.com.
About Privia Health
Privia Health$(TM)$ is one of the largest physician enablement companies in the United States with a presence in 15 states and the District of Columbia. Privia builds scaled provider networks with primary-care centric medical groups, risk-bearing entities, a physician-led governance structure, and the Privia Platform comprising an extensive suite of technology and service solutions. Privia collaborates with medical groups, health plans and health systems to optimize 1,200+ physician practices, improve the patient experience for 5.2+ million patients, and reward 4,800+ physicians and advanced practitioners for delivering high-value care.
Privia's mission is to transform healthcare delivery to achieve better outcomes, lower costs, and improve the health of communities and the well-being of providers. For more information, visit priviahealth.com and connect with us on LinkedIn.
Non-GAAP Financial Measures
The Company reports and discusses its operating results using financial measures consistent with accounting principles generally accepted in the United States ("GAAP"). From time to time, in press releases, financial presentations, earnings conference calls or otherwise, the Company may disclose certain non-GAAP financial measures. The non-GAAP financial measures presented in this press release should not be viewed as alternatives or substitutes for the Company's reported GAAP results. A reconciliation to the most directly comparable GAAP financial measure is set forth in the tables that accompany this release.
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