Privia Raises Outlook as Quarterly Operating Income Triples
Second-quarter revenue rose 21.4% to $632.6 million as patient-care and capitated revenue climbed.
Privia Health Group (PRVA), the physician-enablement company, more than tripled second-quarter operating income as its platform handled more providers and value-based-care patients.
The earnings gain came despite pressure on gross profitability. Gross profit rose 14.3% to $128.9 million, trailing revenue growth, and gross margin narrowed to about 20.4% from 21.6% as provider expense increased 23.3%.
Net income attributable to Privia rose 236.7% to $9.0 million, and diluted earnings increased to $0.07 a share from $0.02. Revenue increased from $521.2 million a year earlier, while six-month revenue climbed 23.5% to $1.24 billion.
Fee-for-service patient-care revenue grew 24.5% to $412.6 million, and capitated revenue rose 26.0% to $95.2 million. Shared-savings revenue increased 14.8%, while fee-for-service administrative-services revenue declined 5.4%.
Implemented Providers increased 10.1% to 5,644, and Value-Based Care Attributed Lives grew 19.2% to 1.647 million. Platform Contribution rose 20.1%, with its margin expanding 2.3 percentage points to 52.2%. Adjusted EBITDA increased 29.1% to $37.4 million, lifting Adjusted EBITDA Margin to 28.3% from 25.2%.
Privia raised its full-year attributed-lives forecast to 1.625 million to 1.650 million from 1.550 million to 1.600 million and kept implemented-provider guidance at 5,900 to 6,000. The company now expects revenue and Practice Collections at the high end of their prior ranges and Care Margin, Platform Contribution and Adjusted EBITDA at the middle-to-high end of their respective ranges.
The company expanded its presence to 25 states and the District of Columbia from 15 states and the district, increasing its stated patient reach to more than 6.1 million from more than 5.3 million. That expansion carried a cash burden: operating cash use widened to $48.4 million in the first half from $16.1 million as the use of cash from accounts receivable grew.