Evolent Health, Inc. (NYSE:EVH) Q1 2022 Earnings Conference Call May 4, 2022 5:00 PM ET

Company Participants

Seth Blackley – Chief Executive Officer

John Johnson – Chief Financial Officer

Seth Frank – Vice President of Investor Relations

Conference Call Participants

Richard Close – Canaccord Genuity

Ryan Daniels – William Blair

Anne Samuel – JPMorgan

Charles Rhyee – Cowen

Jessica Tassan – Piper Sandler

David Larsen – BTIG

Sandy Draper – Guggenheim

Operator

Welcome to Evolent Health's Earnings Conference. Call for the first quarter ended March 30, 2022. As a reminder, with conference call is being recorded, your hosts for the call today from Evolent Health, our Seth Blackley, Chief Executive Officer, and John Johnson, Chief Financial Officer. This call will be archived and available beginning later this evening via the webcast on the company's Investor Relations website, which can be found ir.evolenthealth.com. I will now hand the call to Seth Frank. Evolent's Vice President of Investor Relations. Please go ahead.

Seth Frank

Thank you and good evening. This conference call will contain forward-looking statements under the U.S. federal 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 our current and periodic filings. For additional information on the Company's results and outlook, please refer to its first quarter press release issued earlier today.

Finally, as a reminder, reconciliations of non-GAAP measures discussed during today's call to the most direct comparable GAAP measures are available in the summary presentation available in the Investor Relations section of our website, or in the Company's press release issued today and posted on the Investor Relations section of the Company's website, ir.evolenthealth.com, and the Form 8-K filed by the company with the SEC, earlier today. During management's presentation and discussion, we will reference certain GAAP and non-GAAP figures and metrics that can be found in our earnings release, as well as a summary presentation available on the Events section of Evolent's website, ir.evolenthealth.com. And now I'd like to turn the call over to Evolent's CEO, Seth Blackley.

Seth Blackley

Good evening, everyone. Thank you for joining the call. I'll start by summarizing our first quarter results and discuss progress on our 3 core operating priorities. John will discuss the numbers in more detail and share our updated guidance. As always, we will close the Q&A. Turning to our results, the first quarter marks a strong beginning of the year for the Company on the heels of a successful 2021 with continued growth, margin expansion, and strategic product innovation. For the first quarter of 2022, Evolent reported total revenue of $297.1 million, growth of 38% over Q1 2021. Adjusted EBITDA for Q1 2022 was $24.3 million, 63% growth over Q1 2021. Significant flow through a revenue growth resulted in adjusted EBITDA margin expansion of 130 basis points to 8.2%, compared to 6.9% in the first quarter of 2021. Relatively guidance to quarter was also success. We exceeded the high end of our revenue outlook range for the quarter of $280 to $295 million, and we delivered at the high end of our outlook for first quarter adjusted EBITDA, which was $20 million to $25 million.