The following is a summary of the InnovAge Holding Corp. (INNV) Q3 2024 Earnings Call Transcript:
Financial Performance:
InnovAge reported Q3 revenue of $193.1 million, a growth of 2.2% over the last quarter, primarily due to an increase in member months and Medicare capitation rates.
The center-level contribution margin was $34 million, representing a 17.6% margin.
External provider costs dropped by 1% to $100 million due to lower permanent nursing facilities' utilization.
The company's net loss increased to $5.9 million from $3.8 million in the previous quarter.
InnovAge ended the quarter with a strong liquidity position, having $54.1 million in cash and cash equivalents and $45.2 million in short-term investments and held $81.3 million in total debt.
Business Progress:
The company experienced a 0.7% QoQ growth in participants, totaling around 6,820 across 19 centers.
Improvements in managing external medical costs led to a decrease in participant expense PMPM.
InnovAge piloted a new end-of-life comfort care program in Denver, reducing external spend by 43%.
Despite some enrollment delays and staffing issues, InnovAge saw a sequential increase in qualified leads by 10% and has become operational in new locations like Orlando.
The company reaffirms 2024 fiscal year guidance with anticipated participant range from 6,800 to 7,400, expected revenue between $725 million to $775 million, and adjusted EBITDA in the $12 million to $18 million range.
More details: InnovAge Holding IR
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