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Performant Financial Corporation Announces Financial Results for Third Quarter 2024

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Performant Financial (PFMT) reported Q3 2024 results with healthcare revenues of $30.3 million, up 6% year-over-year, and total revenues of $31.5 million, a 5% increase. The company posted a net loss of $2.4 million, or $(0.03) per diluted share, compared to a net loss of $0.6 million in the prior year. Adjusted EBITDA was $1.9 million. The company reaffirmed its 2024 guidance, expecting healthcare revenues between $117-122 million and adjusted EBITDA of $4-5 million. Notable achievements include implementing 32 commercial programs expected to generate $13-14 million in annualized revenue and securing their first State Medicaid contract with New York.

Performant Financial (PFMT) ha riportato i risultati del terzo trimestre 2024 con entrate sanitarie di 30,3 milioni di dollari, in aumento del 6% rispetto all'anno precedente, e entrate totali di 31,5 milioni di dollari, con un incremento del 5%. L'azienda ha registrato una perdita netta di 2,4 milioni di dollari, ovvero $(0,03) per azione diluita, rispetto a una perdita netta di 0,6 milioni di dollari nell'anno precedente. L'EBITDA rettificato è stato di 1,9 milioni di dollari. L'azienda ha confermato le previsioni per il 2024, aspettandosi entrate sanitarie tra 117 e 122 milioni di dollari e un EBITDA rettificato di 4-5 milioni di dollari. Tra i risultati significativi vi è l'implementazione di 32 programmi commerciali previsti per generare 13-14 milioni di dollari in entrate annuali e l'ottenimento del primo contratto Medicaid statale con New York.

Performant Financial (PFMT) reportó los resultados del tercer trimestre de 2024, con ingresos en salud de 30.3 millones de dólares, un aumento del 6% interanual, y ingresos totales de 31.5 millones de dólares, lo que representa un incremento del 5%. La compañía registró una pérdida neta de 2.4 millones de dólares, es decir, $(0.03) por acción diluida, en comparación con una pérdida neta de 0.6 millones de dólares en el año anterior. El EBITDA ajustado fue de 1.9 millones de dólares. La empresa reafirmó su pronóstico para 2024, esperando ingresos en salud entre 117 y 122 millones de dólares y un EBITDA ajustado de 4-5 millones de dólares. Entre los logros notables se incluye la implementación de 32 programas comerciales que se espera generen 13-14 millones de dólares en ingresos anuales y la obtención de su primer contrato de Medicaid estatal con Nueva York.

Performant Financial (PFMT)는 2024년 3분기 결과를 발표하며 의료 수익이 3천만 3백만 달러로 전년 대비 6% 증가했으며, 총 수익은 3천1백5십만 달러로 5% 증가했다고 밝혔습니다. 회사는 2천4백만 달러의 순손실을 기록했으며, 이는 희석주당 $(0.03)입니다. 이는 전년도 6십만 달러의 순손실과 비교됩니다. 조정 EBITDA는 1천9백만 달러였습니다. 회사는 2024년 가이던스를 재확인하며, 의료 수익을 1억 1천7백만~1억 2천2백만 달러, 조정 EBITDA를 4백만~5백만 달러로 예상하고 있습니다. 주목할 만한 성과로는 연간 수익이 1천3백만~1천4백만 달러에 이를 것으로 예상되는 32개의 상업 프로그램을 구현하고, 뉴욕주와 첫 번째 주 Medicaid 계약을 체결한 것입니다.

Performant Financial (PFMT) a annoncé les résultats du troisième trimestre 2024 avec des revenus de santé de 30,3 millions de dollars, en hausse de 6 % par rapport à l'année précédente, et des revenus totaux de 31,5 millions de dollars, soit une augmentation de 5 %. L'entreprise a enregistré une perte nette de 2,4 millions de dollars, soit $(0,03) par action diluée, contre une perte nette de 0,6 million de dollars l'année précédente. L'EBITDA ajusté s'est établi à 1,9 million de dollars. L'entreprise a réaffirmé ses prévisions pour 2024, s'attendant à des revenus de santé compris entre 117 et 122 millions de dollars et un EBITDA ajusté de 4 à 5 millions de dollars. Parmi les réalisations notables, on trouve la mise en œuvre de 32 programmes commerciaux qui devraient générer entre 13 et 14 millions de dollars de revenus annuels et l'obtention de leur premier contrat Medicaid d'État avec New York.

Performant Financial (PFMT) berichtete über die Ergebnisse des dritten Quartals 2024 mit Gesundheitsumsätzen von 30,3 Millionen Dollar, was einem Anstieg von 6% im Vergleich zum Vorjahr entspricht, sowie Gesamtumsätzen von 31,5 Millionen Dollar, einem Anstieg von 5%. Das Unternehmen verzeichnete einen Nettoverlust von 2,4 Millionen Dollar, oder $(0,03) je verwässerter Aktie, im Vergleich zu einem Nettoverlust von 0,6 Millionen Dollar im Vorjahr. Das bereinigte EBITDA betrug 1,9 Millionen Dollar. Das Unternehmen bestätigte seine Prognosen für 2024 und erwartet Gesundheitsumsätze zwischen 117 und 122 Millionen Dollar sowie ein bereinigtes EBITDA von 4-5 Millionen Dollar. Zu den bemerkenswerten Erfolgen zählt die Implementierung von 32 kommerziellen Programmen, die voraussichtlich 13-14 Millionen Dollar an jährlichen Einnahmen generieren werden, sowie der Abschluss des ersten Medicaid-Vertrags mit dem Bundesstaat New York.

Positive
  • Healthcare revenue increased 6% YoY to $30.3 million
  • Total revenue grew 5% to $31.5 million
  • Implemented 32 commercial programs expected to generate $13-14 million annually
  • Secured first State Medicaid contract with New York
  • Adjusted EBITDA improved to $1.9 million from $1.8 million YoY
Negative
  • Net loss widened to $2.4 million from $0.6 million YoY
  • Adjusted net income declined to -$0.8 million from $0.4 million YoY
  • Customer care revenue decreased to $1.2 million from $1.5 million YoY
  • EPS declined to -$0.03 from -$0.01 YoY

Insights

The Q3 2024 results show mixed performance for Performant Financial. While healthcare revenues grew by 6% to $30.3 million, the company reported a wider net loss of $2.4 million compared to $0.6 million in the prior year. The strategic focus on healthcare payment integrity is yielding results with 32 new commercial program implementations expected to generate $13-14 million in annualized revenue.

The company's decision to reduce customer care services aligns with their healthcare-focused strategy. Despite market challenges, management maintains their 2024 guidance of $117-122 million in healthcare revenues and $4-5 million in adjusted EBITDA. The new contract with New York's Medicaid program represents a significant expansion opportunity in the state market segment.

The expansion into state Medicaid contracts, particularly securing New York's program, marks a strategic milestone for Performant. The company's diversification across federal, commercial and state sectors strengthens its market position in healthcare payment integrity. The growth in claims-based services ($14.2 million) and eligibility-based services ($16.1 million) demonstrates balanced revenue streams.

The slight improvement in adjusted EBITDA to $1.9 million suggests operational efficiency gains, though margin pressure persists. The focus on scaling existing commercial implementations and the CMS RAC Region 2 contract indicates a solid foundation for sustainable growth in the healthcare payment integrity market.

PLANTATION, Fla.--(BUSINESS WIRE)-- Performant Financial Corporation (Nasdaq: PFMT), a leading provider of healthcare payment integrity services, today reported the following financial results for its third quarter ended September 30, 2024:

Third Quarter Financial Highlights

  • Healthcare revenues of $30.3 million, compared to $28.5 million in the prior year period, an increase of approximately 6%.
  • Total revenues of $31.5 million, compared to total revenues of $30.0 million in the prior year period.
  • Net loss of $2.4 million, or $(0.03) per diluted share, compared to net loss of $0.6 million, or $(0.01) per diluted share, in the prior year period.
  • Adjusted EBITDA of $1.9 million, compared to $1.8 million in the prior year period.
  • Adjusted net loss was $0.8 million, or $(0.01) per diluted share, compared to adjusted net income of $0.4 million, or $0.01 per diluted share, in the prior year period.

Third Quarter 2024 Results

Healthcare revenues in the third quarter of 2024 were $30.3 million, an increase of approximately 6% from $28.5 million in the prior year period. Total revenues in the third quarter were $31.5 million, an increase of 5% from total revenues of $30.0 million in the prior year period. Within healthcare, claims-based services revenue in the third quarter of 2024 was $14.2 million, while revenue from eligibility-based services in the third quarter was $16.1 million.

“Our third quarter revenue and overall profitability grew as expected against a difficult year-over-year comparison. Existing commercial client implementations continue to scale as expected along with the CMS RAC Region 2 contract to drive revenue growth," stated Simeon Kohl, CEO of Performant. "We are capitalizing on market opportunities, including our first State Medicaid contract with New York, one of the nation’s largest Medicaid programs. Our contract awards across federal, commercial, and now State Medicaid clients are a testament to our growth strategy, driven by our quality services and ability to understand clients’ needs in this dynamic market. Within our commercial clients, we have implemented 32 programs during 2024, which we currently estimate to collectively contribute between $13 and $14 million in annualized revenue at steady state. Our long-term focus remains on delivering value for our healthcare clients and stakeholders, including initiatives to deliver efficiency and productivity gains. I am pleased with the results and excited to lead the team to successfully close out 2024."

Revenues from our customer care / outsourced services in the third quarter were $1.2 million, down from $1.5 million in the prior year period. Simeon Kohl remarked on this business: “We have made the decision to reduce services in our customer care line of business. Our strategy remains clear, with a focus on the healthcare payment integrity market as we remain optimistic about its growth horizon.”

Net loss for the third quarter was $2.4 million, or $(0.03) per diluted share, compared to a net loss of $0.6 million, or $(0.01) per diluted share, in the prior year period. Adjusted EBITDA for the third quarter was $1.9 million as compared to $1.8 million in the prior year period. Adjusted net loss for the third quarter was $0.8 million, or $(0.01) per share on a diluted basis, compared to adjusted net income of $0.4 million, or $0.01 per diluted share, in the prior year period.

“The combination of our strong year-to-date financial performance and advancements in initiatives aimed at improving profitability, gives us confidence in reiterating our healthcare revenue guidance range,” said Rohit Ramchandani, Chief Financial Officer. “We expect to deliver financial results within our originally stated range which is an achievement considering some unusual conditions in the healthcare market in 2024. Full guidance expectations are as follows: 2024 healthcare revenues in the range of $117 million to $122 million, and adjusted EBITDA in the range of $4 million to $5 million," Ramchandani further commented.

Note Regarding Use of Non-GAAP Financial Measures

In this press release, to supplement our consolidated financial statements, the Company presents adjusted EBITDA, adjusted net income (loss), and adjusted net income (loss) per diluted share. These measures are not in accordance with accounting principles generally accepted in the United States of America (US GAAP) and accordingly reconciliations of adjusted EBITDA and adjusted net income (loss) to net income (loss) determined in accordance with US GAAP are included in the “Reconciliation of Non-GAAP Results” table at the end of this press release. We have included adjusted EBITDA and adjusted net income (loss) in this press release because they are key measures used by our management and board of directors to understand and evaluate our core operating performance and trends and to prepare and approve our annual budget. Accordingly, we believe that adjusted EBITDA and adjusted net income (loss) provide useful information to investors and analysts in understanding and evaluating our operating results in the same manner as our management and board of directors. Our use of adjusted EBITDA and adjusted net income (loss) has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of our results as reported under US GAAP. In particular, many of the adjustments to our US GAAP financial measures reflect the exclusion of items, specifically interest, tax, and depreciation and amortization expenses, equity-based compensation expense and certain other non-operating expenses, that are recurring and will be reflected in our financial results for the foreseeable future. In addition, these measures may be calculated differently from similarly titled non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes. In regard to forward looking non-GAAP guidance, we are not able to reconcile the forward-looking non-GAAP adjusted EBITDA measure to the closest corresponding GAAP measure without unreasonable efforts because we are unable to predict the ultimate outcome of certain significant items. These items include, but are not limited to, impacts associated with interest expense, and depreciation and amortization expenses.

Earnings Conference Call

The Company will hold a conference call to discuss its third quarter 2024 results today at 5:00 p.m. Eastern. A live webcast of the call may be accessed on the Investor Relations section of the Company’s website at investors.performantcorp.com. To dial into the call you can dial 800-717-1738 or 646-307-1865.

A replay of the call will be available on the Company's website or by dialing 844-512-2921 (domestic) or 412-317-6671 (international) and entering the passcode 1114357. The telephonic replay will be available approximately three hours after the call, through November 13, 2024.

About Performant Healthcare Solutions

Performant supports healthcare payers in identifying, preventing, and recovering waste and improper payments by leveraging advanced technology, analytics and proprietary data assets. Performant works with leading national and regional healthcare payers to provide eligibility-based, also known as coordination-of-benefits (COB) services, as well as claims-based services, which includes the audit and identification of improperly paid claims. Performant is a leading provider of these services in both government and commercial healthcare markets. Performant also provides advanced reporting capabilities, support services, customer care, and stakeholder training programs designed to mitigate future instances of improper payments.

To learn more, please visit http://www.performanthealth.com

Forward Looking Statements

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company's outlook for revenues, net income (loss), adjusted EBITDA in 2024 and beyond, our commercial client growth strategy, and our estimated revenue from commercial programs implemented in the first nine-months of 2024. These forward-looking statements are based on current expectations, estimates, assumptions, and projections that are subject to change and actual results may differ materially from the forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the Company’s ability to generate revenue following long implementation periods associated with new customer contracts; client relationships and the Company’s ability to maintain such client relationships; many of the Company’s customer contracts are subject to periodic renewal, are not exclusive, do not provide for committed business volumes; anticipated trends and challenges in the Company’s business and competition in the markets in which it operates; the Company’s indebtedness and compliance, or failure to comply, with restrictive covenants in the Company’s credit agreement; opportunities and expectations for growth in the various markets in which the Company operates; the Company’s ability to hire and retain employees with specialized skills that are required for its healthcare business; downturns in domestic or global economic conditions and other macroeconomic factors; the Company’s ability to generate sufficient cash flows to fund our ongoing operations and other liquidity needs; the impact of public health pandemics such as COVID-19 on the Company’s business and operations, opportunities and expectations for the markets in which the Company operates; the impacts of a failure of the Company’s operating systems or technology infrastructure or those of third-party vendors and subcontractors; the impacts of a cybersecurity breach or related incident to the Company or any of the Company’s third-party vendors and subcontractors; the adaptability of the Company’s technology platform to new markets and processes; the Company’s ability to invest in and utilize our data and analytics capabilities to expand its capabilities; the Company’s growth strategy of expanding in existing markets and considering strategic alliances or acquisitions; the Company’s ability to maintain, protect and enhance its intellectual property; expectations regarding future expenses; expected future financial performance; and the Company’s ability to comply with and adapt to industry regulations and compliance demands.

More information on potential factors that could affect the Company's financial condition and operating results is included from time to time in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's annual report on Form 10-K for the year ended December 31, 2023 and subsequently filed reports on Forms 10-Q and 8-K. The forward-looking statements are made as of the date of this press release and the Company does not undertake to update any forward-looking statements to conform these statements to actual results or revised expectations.

PERFORMANT FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

(In thousands, except par value amounts)

 

 

September 30,
2024

 

December 31,
2023

 

(Unaudited)

 

 

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

7,775

 

 

$

7,252

 

Restricted cash

 

 

 

 

81

 

Trade accounts receivable, net of allowance for credit losses

 

17,955

 

 

 

17,584

 

Contract assets

 

9,538

 

 

 

10,879

 

Prepaid expenses and other current assets

 

2,944

 

 

 

3,651

 

Income tax receivable

 

119

 

 

 

335

 

Total current assets

 

38,331

 

 

 

39,782

 

Property, equipment, and software, net

 

14,033

 

 

 

9,724

 

Goodwill

 

47,372

 

 

 

47,372

 

Debt issuance costs

 

473

 

 

 

631

 

Right-of-use assets

 

847

 

 

 

531

 

Other assets

 

787

 

 

 

990

 

Total assets

$

101,843

 

 

$

99,030

 

Liabilities and Stockholders’ Equity

 

 

 

Current liabilities:

 

 

 

Accrued salaries and benefits

 

7,588

 

 

 

7,924

 

Accounts payable

 

719

 

 

 

727

 

Other current liabilities

 

2,404

 

 

 

2,385

 

Contract liabilities

 

1,897

 

 

 

493

 

Estimated liability for appeals and disputes

 

600

 

 

 

601

 

Deferred asset acquisition payments

 

737

 

 

 

 

Lease liabilities

 

423

 

 

 

250

 

Total current liabilities

 

14,368

 

 

 

12,380

 

Long-term loan payable

 

8,000

 

 

 

5,000

 

Deferred asset acquisition payments

 

3,123

 

 

 

 

Lease liabilities

 

442

 

 

 

295

 

Other liabilities

 

672

 

 

 

648

 

Total liabilities

 

26,605

 

 

 

18,323

 

Commitments and contingencies

 

 

 

Stockholders’ equity:

 

 

 

Common stock, $0.0001 par value. Authorized, 500,000 shares at September 30, 2024 and December 31, 2023 respectively; issued and outstanding 78,291 and 76,920 shares at September 30, 2024 and December 31, 2023, respectively

 

8

 

 

 

8

 

Additional paid-in capital

 

149,929

 

 

 

146,001

 

Accumulated deficit

 

(74,699

)

 

 

(65,302

)

Total stockholders’ equity

 

75,238

 

 

 

80,707

 

Total liabilities and stockholders’ equity

$

101,843

 

 

$

99,030

 

PERFORMANT FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)

 

 

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Revenues

 

$

31,519

 

 

$

29,962

 

 

$

88,215

 

 

$

81,176

 

Operating expenses:

 

 

 

 

 

 

 

 

Salaries and benefits

 

 

25,966

 

 

 

22,980

 

 

 

73,721

 

 

 

67,139

 

Other operating expenses

 

 

7,702

 

 

 

7,632

 

 

 

23,305

 

 

 

22,077

 

Total operating expenses

 

 

33,668

 

 

 

30,612

 

 

 

97,026

 

 

 

89,216

 

Loss from operations

 

 

(2,149

)

 

 

(650

)

 

 

(8,811

)

 

 

(8,040

)

Gain on sale of certain recovery contracts

 

 

 

 

 

 

 

 

 

 

 

3

 

Interest expense

 

 

(313

)

 

 

(423

)

 

 

(799

)

 

 

(1,188

)

Interest income

 

 

93

 

 

 

86

 

 

 

260

 

 

 

86

 

Loss before provision for income taxes

 

 

(2,369

)

 

 

(987

)

 

 

(9,350

)

 

 

(9,139

)

Provision for (benefit from) income taxes

 

 

15

 

 

 

(407

)

 

 

47

 

 

 

(365

)

Net loss

 

$

(2,384

)

 

$

(580

)

 

$

(9,397

)

 

$

(8,774

)

Net loss per share

 

 

 

 

 

 

 

 

Basic

 

$

(0.03

)

 

$

(0.01

)

 

$

(0.12

)

 

$

(0.12

)

Diluted

 

$

(0.03

)

 

$

(0.01

)

 

$

(0.12

)

 

$

(0.12

)

Weighted average shares

 

 

 

 

 

 

 

 

Basic

 

 

77,748

 

 

 

76,454

 

 

 

77,232

 

 

 

75,907

 

Diluted

 

 

77,748

 

 

 

76,454

 

 

 

77,232

 

 

 

75,907

 

PERFORMANT FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

 

Nine Months Ended

September 30,

 

 

2024

 

 

 

2023

 

Cash flows from operating activities:

 

 

 

Net loss

$

(9,397

)

 

$

(8,774

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

Loss on disposal of assets

 

63

 

 

 

258

 

Depreciation and amortization

 

5,244

 

 

 

3,805

 

Right-of-use assets amortization

 

312

 

 

 

1,411

 

Stock-based compensation

 

4,122

 

 

 

2,815

 

Interest expense from debt issuance costs

 

173

 

 

 

256

 

Gain on sale of certain recovery contracts

 

 

 

 

(3

)

Changes in operating assets and liabilities:

 

 

 

Trade accounts receivable

 

(371

)

 

 

1,665

 

Contract assets

 

1,341

 

 

 

4,610

 

Prepaid expenses and other current assets

 

707

 

 

 

561

 

Income tax receivable

 

216

 

 

 

2,607

 

Other assets

 

190

 

 

 

86

 

Accrued salaries and benefits

 

(336

)

 

 

(1,295

)

Accounts payable

 

(8

)

 

 

(390

)

Contract liabilities and other current liabilities

 

1,423

 

 

 

(43

)

Estimated liability for appeals and disputes

 

(1

)

 

 

(200

)

Lease liabilities

 

(308

)

 

 

(1,645

)

Other liabilities

 

25

 

 

 

23

 

Net cash provided by operating activities

 

3,395

 

 

 

5,747

 

Cash flows from investing activities:

 

 

 

Purchase of property, equipment, and software

 

(5,744

)

 

 

(2,956

)

Proceeds from sale of certain recovery contracts

 

 

 

 

3

 

Net cash used in investing activities

 

(5,744

)

 

 

(2,953

)

Cash flows from financing activities:

 

 

 

Repayment of long-term loan payable

 

 

 

 

(8,250

)

Debt issuance costs paid

 

(15

)

 

 

(424

)

Taxes paid related to net share settlement of stock awards

 

(194

)

 

 

(196

)

Borrowings from revolving loan

 

3,000

 

 

 

 

Net cash provided by (used in) financing activities

 

2,791

 

 

 

(8,870

)

Net increase (decrease) in cash, cash equivalents and restricted cash

 

442

 

 

 

(6,076

)

Cash, cash equivalents and restricted cash at beginning of period

 

7,333

 

 

 

23,465

 

Cash, cash equivalents and restricted cash at end of period

$

7,775

 

 

$

17,389

 

Reconciliation of the Consolidated Statements of Cash Flows to the

Consolidated Balance Sheets:

 

 

 

Cash and cash equivalents

$

7,775

 

 

$

17,308

 

Restricted cash

 

 

 

 

81

 

Total cash, cash equivalents and restricted cash at end of period

$

7,775

 

 

$

17,389

 

Non-cash investing activities:

 

 

 

Deferred asset acquisition payments

$

3,860

 

 

$

 

Supplemental disclosures of cash flow information:

 

 

 

Cash received for income taxes

$

(112

)

 

$

(2,904

)

Cash paid for interest

$

438

 

 

$

1,084

 

PERFORMANT FINANCIAL CORPORATION AND SUBSIDIARIES

Reconciliation of Non-GAAP Results

(In thousands, except per share amount)

(Unaudited)

 

 

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

(in thousands)

 

(in thousands)

Adjusted EBITDA:

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(2,384

)

 

$

(580

)

 

$

(9,397

)

 

$

(8,774

)

Provision for (benefit from) income taxes

 

 

15

 

 

 

(407

)

 

 

47

 

 

 

(365

)

Interest expense (1)

 

 

313

 

 

 

423

 

 

 

799

 

 

 

1,188

 

Interest income

 

 

(93

)

 

 

(86

)

 

 

(260

)

 

 

(86

)

Stock-based compensation

 

 

1,860

 

 

 

1,129

 

 

 

4,122

 

 

 

2,815

 

Depreciation and amortization

 

 

1,927

 

 

 

1,293

 

 

 

5,244

 

 

 

3,805

 

Severance expenses (3)

 

 

278

 

 

 

64

 

 

 

664

 

 

 

246

 

Other

 

 

21

 

 

 

5

 

 

 

36

 

 

 

34

 

Adjusted EBITDA

 

$

1,937

 

 

$

1,841

 

 

$

1,255

 

 

$

(1,137

)

 

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

(in thousands)

 

(in thousands)

Adjusted Net Income (Loss):

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(2,384

)

 

$

(580

)

 

$

(9,397

)

 

$

(8,774

)

Stock-based compensation

 

 

1,860

 

 

 

1,129

 

 

 

4,122

 

 

 

2,815

 

Amortization of debt issuance costs (2)

 

 

58

 

 

 

134

 

 

 

173

 

 

 

256

 

Severance expenses (3)

 

 

278

 

 

 

64

 

 

 

664

 

 

 

246

 

Other

 

 

21

 

 

 

5

 

 

 

36

 

 

 

34

 

Tax adjustments (4)

 

 

(609

)

 

 

(366

)

 

 

(1,373

)

 

 

(921

)

Adjusted net income (loss)

 

$

(776

)

 

$

386

 

 

$

(5,775

)

 

$

(6,344

)

 

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

 

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

(in thousands)

 

(in thousands)

Adjusted Net Income (Loss) Per Diluted Share:

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(2,384

)

 

$

(580

)

 

$

(9,397

)

 

$

(8,774

)

Plus: Adjustment items per reconciliation of adjusted net income (loss)

 

 

1,608

 

 

 

966

 

 

 

3,622

 

 

 

2,430

 

Adjusted net income (loss)

 

$

(776

)

 

$

386

 

 

$

(5,775

)

 

$

(6,344

)

Adjusted net income (loss) per diluted share

 

$

(0.01

)

 

$

0.01

 

 

$

(0.08

)

 

$

(0.08

)

Diluted average shares outstanding

 

 

77,748

 

 

 

76,830

 

 

 

77,232

 

 

 

75,907

 

(1)

Represents interest expense and amortization of debt issuance costs related to our Credit Agreement.

(2)

Represents amortization of debt issuance costs related to our Credit Agreement.

(3)

Represents severance expenses incurred in connection with a reduction in force for our non-healthcare recovery services.

(4)

Represents tax adjustments assuming a marginal tax rate of 27.5% at full profitability.

PERFORMANT FINANCIAL CORPORATION AND SUBSIDIARIES

Quarterly and Annual Revenues

(In thousands)

(Unaudited)

 

We are providing the following historical breakdown of the quarterly and annual revenue contributions under the contribution breakdowns of our healthcare revenue results for the nine months ended September 30, 2024, and for the years ended December 31, 2023 and 2022:

 

 

Three Months Ended

 

Nine Months Ended

 

 

March 31, 2024

 

June 30, 2024

 

September 30, 2024

 

September 30, 2024

 

 

 

 

 

 

 

 

(in thousands)

Eligibility-based

 

$

13,388

 

$

14,264

 

$

16,070

 

$

43,722

Claims-based

 

 

12,412

 

 

13,661

 

 

14,217

 

 

40,290

Healthcare Total

 

 

25,800

 

 

27,925

 

 

30,287

 

 

84,012

Customer Care / Outsourced Services

 

 

1,534

 

 

1,437

 

 

1,232

 

 

4,203

Total

 

$

27,334

 

$

29,362

 

$

31,519

 

$

88,215

 

 

Three Months Ended

 

Year Ended

 

 

March 31, 2023

 

June 30, 2023

 

September 30, 2023

 

December 31, 2023

 

December 31, 2023

 

 

(in thousands)

Eligibility-based

 

$

12,480

 

$

14,131

 

$

18,165

 

$

16,403

 

$

61,179

Claims-based

 

 

10,412

 

 

9,798

 

 

10,325

 

 

14,730

 

 

45,265

Healthcare Total

 

 

22,892

 

 

23,929

 

 

28,490

 

 

31,133

 

 

106,444

Recovery

 

 

19

 

 

14

 

 

 

 

 

 

33

Customer Care / Outsourced Services

 

 

2,818

 

 

1,542

 

 

1,472

 

 

1,434

 

 

7,266

Total

 

$

25,729

 

$

25,485

 

$

29,962

 

$

32,567

 

$

113,743

 

 

Three Months Ended

 

Year Ended

 

 

March 31, 2022

 

June 30, 2022

 

September 30, 2022

 

December 31, 2022

 

December 31, 2022

 

 

(in thousands)

Eligibility-based

 

$

14,214

 

$

12,417

 

$

13,142

 

$

13,511

 

$

53,284

Claims-based

 

 

9,150

 

 

9,339

 

 

10,377

 

 

12,516

 

 

41,382

Healthcare Total

 

 

23,364

 

 

21,756

 

 

23,519

 

 

26,027

 

 

94,666

Recovery

 

 

118

 

 

7

 

 

41

 

 

75

 

 

241

Customer Care / Outsourced Services

 

 

3,601

 

 

3,918

 

 

3,618

 

 

3,140

 

 

14,277

Total

 

$

27,083

 

$

25,681

 

$

27,178

 

$

29,242

 

$

109,184

 

Jon Bozzuto

Investor Relations

925-960-4988

investors@performantcorp.com

Source: Performant Financial Corporation

FAQ

What was Performant Financial's (PFMT) healthcare revenue in Q3 2024?

Performant Financial's healthcare revenue in Q3 2024 was $30.3 million, representing a 6% increase from $28.5 million in the prior year period.

What is PFMT's revenue guidance for 2024?

PFMT expects healthcare revenues to be in the range of $117 million to $122 million for 2024, with adjusted EBITDA between $4 million to $5 million.

How many commercial programs did PFMT implement in 2024?

PFMT implemented 32 commercial programs during 2024, which are estimated to contribute between $13 and $14 million in annualized revenue at steady state.

What was Performant Financial's (PFMT) net loss per share in Q3 2024?

PFMT reported a net loss of $(0.03) per diluted share in Q3 2024, compared to $(0.01) per diluted share in the prior year period.

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