Evolent Health, Inc. (NYSE:EVH) Q4 2019 Earnings Conference Call - Final Transcript

Feb 25, 2020 • 05:00 pm ET

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Evolent Health, Inc. (NYSE:EVH) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Welcome to Evolent Health's Earnings Conference Call for the Quarter and Year Ended December 31, 2019. [Operator Instructions]

Your host for the call today is Mr. Frank Williams, Chief Executive Officer of Evolent Health. This call will be archived and available later this evening and for the next week via the webcast on the company's website in the section entitled Investor Relations.

Here is some important introductory information. This call contains forward-looking statements under the US federal securities laws. These statements are subject to risks and uncertainties that could cause actual results to differ materially from historical experience or present expectations. A description of some of the risks and uncertainties can be found in the company's reports that are filed with the Securities and Exchange Commission, including cautionary statements included in the current and periodic filings. For additional information on the company's results and outlook, please refer to its second quarter news press release issued earlier today.

As a reminder, reconciliations of non-GAAP measures discussed during today's call to the most direct comparable GAAP measures are available in the company's press release issued today and posted on the Investor Relations section of the company's website at ir.evolenthealth.com, again that's ir.evolenthealth.com, and the 8-K filed by the company with the SEC earlier today.

At this time, I will turn the call over to the company's Chief Executive Officer, Mr. Frank Williams.

Executive
Frank Williams

Thank you and good evening. I'm Frank Williams, Chief Executive Officer of Evolent Health, and I'm joined by Seth Blackley, our President; and John Johnson, our Chief Financial Officer. I'll open the call this evening with a summary of our recent financial results as well as an update on the market, our current pipeline and overall performance across the Evolent network. I'll then hand it to John to take us through a more detailed financial review of the fourth quarter and full year 2019 results. I'll close with a summary of our strategic focus and primary sources of differentiation as we head into 2020. And as always, we'll be happy to take questions at the end of the call.

In terms of our results for the quarter, total adjusted revenue for the quarter ended December 31, 2019, increased 22.9% to $237.5 million from the comparable quarter of the prior year. Adjusted EBITDA for the quarter ended December 31, 2019 was $8.2 million compared to $5.6 million for the quarter ended December 31, 2018. Adjusted revenue increased 34.1% to $848.3 million for the year ended December 31, 2019, compared to $632.4 million for the year ended December 31, 2018. Adjusted EBITDA for the year ended December 31, 2019 was negative $11 million compared to $23.2 million for the prior year period. As of December 31, 2019, we had approximately 3.7 million total lives on the platform.

Overall, we're pleased that we met our key strategic objectives for the year and we delivered strong operational and clinical performance for our partner organizations. We also achieved our primary financial objectives returning to strong top