Performant Financial Corp ( (PHLT) ) has released its Q4 earnings. Here is a breakdown of the information Performant Financial Corp presented to its investors.
Performant Healthcare, Inc. is a prominent company in the healthcare sector, specializing in healthcare payment integrity services. It aids healthcare payers in identifying, preventing, and recovering improper payments using advanced technology and analytics.
In its latest earnings report, Performant Healthcare, Inc. announced its financial results for the fourth quarter and full year of 2024. The company experienced a notable increase in total revenues, driven primarily by its healthcare segment, despite reporting a net loss for both the quarter and the full year.
For the fourth quarter of 2024, Performant reported total revenues of $34.8 million, up from $32.6 million in the same period last year. Healthcare revenues saw a significant rise to $34.3 million from $31.1 million. However, the company faced a net loss of $0.5 million, contrasting with a net income of $1.3 million in the previous year. The full year results showed total revenues of $123.0 million, an increase from $113.7 million in 2023, with healthcare revenues contributing $118.3 million. Despite this growth, the company reported a net loss of $9.9 million for the year.
The company attributes its revenue growth to the expansion of its commercial client base, which now accounts for over 57% of its healthcare revenue. This growth is supported by numerous commercial implementations, including 42 in 2024 alone. Looking forward, Performant plans to launch its first State Medicaid contract and continue scaling its commercial implementations.
Looking ahead to 2025, Performant Healthcare aims to improve its margins through technological advancements and scaling its operations. The company has set a revenue guidance range of $131 million to $135 million and expects to nearly double its adjusted EBITDA, reflecting its commitment to achieving a 20% adjusted EBITDA margin target.