Page 1

Evolent Investor Relations Evolent Health Announces Third Quarter 2021 Results WASHINGTON , Nov. 3 , 2021 / PRNewswire / -- Evolent Health , Inc. ( NYSE : EVH ) , a health care company that delivers proven clinical and administrative solutions to payers and providers , today announced financial results for the quarter ended September 30 , 2021 . Highlights from the third quarter of 2021 announcement include : Quarter ended September 30 , 2021 : • GAAP revenue of $ 222.5 million , a decrease of $ 17.1 million , or 7.1 % , from the three months ended September 30 , 2020 . • Revenue excluding revenue from divested assets increased 36.3 % from the three months ended September 30 , 2020 . • Net loss attributable to common shareholders of Evolent Health , Inc. of $ ( 13.0 ) million . • Achieved Adjusted EBITDA of $ 13.8 million . • Total Lives Managed of 14.7 million as of September 30 , 2021 , composed of 1.6 million Evolent Health Services Lives on Platform and 13.1 million Clinical Solutions Lives on Platform . Additional announcements : • Evolent enters into two new agreements with Sunflower Medical Group in Kansas and Northern Medical Group in New York , expanding its total cost of care management services through Evolent Care Partners • Evolent adds new partnership with Health New England to provide comprehensive advance care planning services through New Century Health Seth Blackley , Chief Executive Officer and Co - Founder of Evolent Health commented , " Overall , we're pleased with our results this quarter and our continued momentum on growth and earnings power . As we head into 2022 , we are seeing momentum from our current portfolio as our solutions are delivering differentiated performance for our partners and our pipeline continues to drive strong growth . Today , we are excited to announce Evolent Care Partners has signed two new provider partnerships with Sunflower Medical Group in Kansas and Northern Medical Group in New York . Additionally , we are pleased to announce a new partnership with Health New England , a leading not - for - profit provider - owned health plan in Massachusetts . Health New England will leverage advance care planning services through New Century Health's Vital Decisions platform to help its more than 180,000 members with serious illness plan for future health care decisions . The three new partnerships announced today bring our total partner additions to ten for 2021 , exceeding our target of six to eight . " Mr. Blackley added , " We also continue to drive innovation for our partners to make meaningful progress in increasing efficiency , improving clinical outcomes , and reducing the cost of care . For example , in the 2020 Performance Year , Evolent Care Partners drove over $ 20 million in savings to Medicare across 55,000 lives - putting it in the top 10 % of performance of at - scale first year ACOS in the history of the program . With life growth already under contract and expected expansion to savings rates per life , we expect Evolent Care Partners to become an important financial and strategic contributor to Evolent Health . " " We remain committed to the execution of our focused strategy and are encouraged by our strong performance and momentum as we head into 2022. " Financial Results of Evolent Health , Inc. In our earnings releases , prepared remarks , conference calls , slide presentations and webcasts , we may use or discuss non - GAAP financial measures . Definitions of the non - GAAP financial measures , as well as reconciliations of non - GAAP financial measures to the most directly comparable GAAP financial measures are included in this earnings release . See Financial Statement Presentation and Non - GAAP Financial Measures for more information . Segment Highlights : Evolent Health Services • Revenue of $ 63.3 million , down 36.8 % , from $ 100.2 million for the three months ended September 30 , 2020 , respectively . • Revenue excluding revenue from divested assets increased $ 4.4 million , or 7.8 % , from the three months ended September 30 , 2020 • Adjusted EBITDA of $ ( 3.4 ) million and $ 24.6 million for the three months ended September 30 , 2021 and 2020 , respectively . • Adjusted EBITDA margin of ( 5.3 ) % and 24.6 % for the three months ended September 30 , 2021 and 2020 , respectively . • Evolent Health Services Lives on Platform was 1.6 million lives with a Evolent Health Services Average PMPM of $ 13.19 as of September 30 , 2021 . Segment Highlights : Clinical Solutions • Revenue of $ 159.6 million , up 14.0 % , from $ 140.1 million for the three months ended September 30 , 2020 . • Revenue excluding revenue from divested assets increased $ 54.0 million , or 51.3 % , from the three months ended September 30 , 2020 • ⚫ Adjusted EBITDA of $ 23.9 million and $ ( 1.0 ) million for the three months ended September 30 , 2021 and 2020 , respectively . • Adjusted EBITDA margin of 15.0 % and ( 0.7 ) % for the three months ended September 30 , 2021 and 2020 , respectively . • Clinical Solutions Lives on Platform in our Performance Suite was 1.5 million with a Clinical Solutions Performance Suite Average PMPM of $ 34.16 and in our New Century Technology and Services Suite Lives on Platform was 11.7 million with a New Century Technology and Services Suite Average PMPM of $ 0.36 as of September 30 , 2021 . Reported Results Evolent Health , Inc. reported the following results in accordance with U.S. generally accepted accounting principles ( " GAAP " ) : • Revenue of $ 222.5 million and $ 239.6 million for the three months ended September 30 , 2021 and 2020 , respectively . • Cost of revenue of $ 163.1 million and $ 181.8 million for the three months ended September 30 , 2021 and 2020 , respectively . • Selling , general and administrative expenses of $ 51.3 million and $ 52.4 million for the three months ended September 30 , 2021 and 2020 , respectively . • Net loss attributable to common shareholders of Evolent Health , Inc. of $ ( 13.0 ) million and $ ( 37.3 ) million for the three months ended September 30 , 2021 and 2020 , respectively . • Loss attributable to common shareholders of Evolent Health , Inc. , per basic and diluted share , of $ ( 0.15 ) and $ ( 0.44 ) for the three months ended September 30 , 2021 and 2020 , respectively . Total cash and cash equivalents was $ 252.5 million as of September 30 , 2021 . Adjusted Results • Adjusted cost of revenue of $ 162.9 million and $ 178.7 million for the three months ended September 30 , 2021 and 2020 , respectively . • Adjusted selling , general and administrative expenses of $ 45.8 million and $ 47.0 million for the three months ended September 30 , 2021 and 2020 , respectively . • Adjusted EBITDA of $ 13.8 million for both the three months ended September 30 , 2021 and 2020 , respectively . • Adjusted EBITDA margin of 6.2 % and 5.8 % for the three months ended September 30 , 2021 and 2020 , respectively . • Adjusted Loss Attributable to Common Shareholders of $ ( 2.4 ) million and $ ( 2.2 ) million for the three months ended September 30 , 2021 and 2020 , respectively . • Adjusted Loss per Share Attributable to Common Shareholders of $ ( 0.03 ) for both the three months ended September 30 , 2021 and 2020 , respectively . Business Outlook Full Year 2021 Guidance Revenue for the year ending December 31 , 2021 is expected to be in the range of approximately $ 884 million to $ 900 million , compared to previous guidance of $ 870 million to $ 900 million . Adjusted EBITDA is expected to be in the range of approximately $ 56 million to $ 60 million , compared to previous guidance of $ 50 million to $ 58 million . Fourth Quarter 2021 Guidance For the three months ending December 31 , 2021 , revenue is expected to be in the range of approximately $ 225 million to $ 240 million . Adjusted EBITDA is expected to be in the