– Q4 2023 Revenues of $244.1 million, Net Loss of $31.4 million and Adjusted EBITDA of $156.8 million
– Full Year 2023 Revenues of $961.5 million, Net Loss of $91.7 million and Adjusted EBITDA of $618.0 million
– Identified potential medical cost savings of approximately $5.9 billion in Q4 2023, up 2.3% from Q3 2023 and up 9.4% from Q4 2022
– In Full Year 2023, the Company deployed cash of $140.9 million for the acquisition of Benefits Science LLC (“BST”), $165.8 million toward open-market debt repurchases and repayment, and $15.2 million toward share repurchases
– Full Year 2024 Revenues guidance of $1,000 million to $1,030 million and FY 2024 Adjusted EBITDA guidance of $630 million to $650 million
February 29, 2024 — MultiPlan Corporation (“MultiPlan” or the “Company”) (NYSE: MPLN), a leading value-added provider of data analytics and technology-enabled end-to-end cost management, payment and revenue integrity solutions to the U.S. healthcare industry, today reported financial results for the fourth quarter and full year ended December 31, 2023.
“As we close out 2023, I am very encouraged by the progress we have made toward our long-term goal of transforming our business,” said Dale White, CEO of MultiPlan. “Throughout the course of the year, we successfully executed on each of the initiatives under our new Growth Plan. We launched new products to enhance our core services, we established our new Data and Decision Science service line and accelerated the development of this line with the acquisition of BST, and we partnered with ECHO Health, Inc. to offer healthcare payment services. These and our other growth initiatives will help us expand our presence in faster-growing market segments, including Medicare Advantage, Medicaid, third-party administrator, and direct-to-employer, and set us on a path to diversify our revenues by market, customer and product.”
“Further, in 2023 we took steps to put our business on stronger footing by reducing our risk and improving our financial position,” added Mr. White. “We delivered on our expectation to resume growth in the second half and improved the visibility of our revenues, following the renewal of our contracts with our larger customers earlier in the year. We have also continued to reduce our debt, repurchasing and repaying $222 million of face value during the year, including $25 million of our 6.0% Senior Convertible PIK Notes repurchased in the fourth quarter. Reducing our debt remains among our highest priorities, and we expect to strengthen our balance sheet and optimize our capital structure as we grow revenues and cash flow over the next several years.”
“As we look forward to 2024,” Mr. White continued, “we are excited to welcome our new CEO, Travis Dalton, to the Company. Travis is precisely the right leader to guide us through the next chapter of our transformation, and he shares our confidence that our strategy for unlocking the value of our franchise through product diversification and new markets penetration will drive accelerated growth in 2024 and will amplify our growth trajectory in 2025 and beyond.”
Mr. White concluded, “We remain incredibly proud of the critical role MultiPlan plays in the U.S. healthcare system. During 2023, we identified $22.9 billion of potential medical savings, and helped lower out-of-pocket costs and reduce or eliminate balance billing for millions of healthcare consumers. With the ongoing expansion and enhancement of our services and products, the company has never been better positioned to increase the value it delivers to more than 700 customers, over 100,000 employers, over 60 million consumers, and 1.4 million contracted providers.”
Business and Financial Highlights
- Revenues of $244.1 million for Q4 2023, an increase of 1.3% over Q4 2022 revenues of $241.1 million.
- Net loss of $31.4 million for Q4 2023, compared to net loss of $650.1 million for Q4 2022.
- Adjusted EBITDA of $156.8 million for Q4 2023, compared to Adjusted EBITDA of $161.5 million for Q4 2022.
- Revenues of $961.5 million for full year 2023, a decrease of 10.9% over full year 2022 revenues of $1,079.7 million.
- Net loss for full year 2023 of $91.7 million, compared to net loss of $572.9 million for full year 2022.
- Adjusted EBITDA of $618.0 million for full year 2023, compared to Adjusted EBITDA of $768.7 million for full year 2022.
- Net cash provided by operating activities of $171.7 million for full year 2023, compared to $372.4 million for full year 2022.
- Free Cash Flow of $62.9 million for full year 2023, compared to $282.6 million for full year 2022.
- In Q4 2023, the Company used $17.6 million of cash to repurchase $25 million face value of its 6.0% Senior Convertible PIK Notes and used $2.0 million to repurchase shares of its common stock in the open market. The Company ended Q4 2023 with $71.5 million of unrestricted cash and cash equivalents on the balance sheet.
- The Company processed $43.4 billion in medical charges during the fourth quarter 2023, identifying potential medical cost savings of approximately $5.9 billion. For the year ended December 31, 2023, the Company processed approximately $168.6 billion in medical charges and identified approximately $22.9 billion in potential medical cost savings compared to $155.2 billion medical charges and approximately $22.3 billion in potential medical cost savings for the year ended December 31, 2022.
2024 Financial Guidance
| Financial Metric | Full Year 2024 Guidance |
| Revenues | $1,000 million to $1,030 million |
| Adjusted EBITDA1 | $630 million to $650 million |
| Interest expense | $320 million to $330 million |
| Cash flow from operations | $170 million to $200 million |
| Capital expenditures | $120 million to $130 million |
| Depreciation | $80 million to $90 million |
| Amortization of intangible assets | $345 million to $350 million |
| Effective tax rate | 25% to 28% |
The Company anticipates Q1 2024 revenues between $235 million and $250 million and Adjusted EBITDA between $150 million and $160 million.
Conference Call Information
The Company will host a conference call today, Thursday, February 29, 2024 at 8:00 a.m. U.S. Eastern Time (ET) to discuss its financial results. Investors and analysts are encouraged to pre-register for the conference call by using the link below. Participants who pre-register will receive access details via email. Pre-registration may be completed at any time up to and following the call start time.
To pre-register, go to: https://www.netroadshow.com/events/login?show=e463e890&confId=59576
A live webcast of the conference call can be accessed through the Investor Relations section of the Company’s website at investors.multiplan.com/events-and-presentations. Participants should join the webcast ten minutes prior to the start of the conference call. The earnings release and supplemental slide deck will also be available on this section of the Company’s website.
For those unable to listen to the live conference call, a replay will be available approximately two hours after the call through the archived webcast on the Investor Relations section of the Company’s website. For those requiring operator assistance please dial (404) 975-4839 or (833) 470-1428. The access code is 925922.
1 We have not reconciled the forward-looking Adjusted EBITDA guidance included above to the most directly comparable GAAP measure because this cannot be done without unreasonable effort due to the variability and low visibility with respect to certain costs, the most significant of which are incentive compensation (including stock-based compensation), transaction-related expenses (including expenses relating to the business combination), certain fair value measurements, which are potential adjustments to future earnings. We expect the variability of these items to have a potentially unpredictable, and a potentially significant, impact on our future GAAP financial results.
About MultiPlan
MultiPlan is committed to delivering affordability, efficiency, and fairness to the US healthcare system by helping healthcare payors manage the cost of care, improve their competitiveness and inspire positive change. Leveraging sophisticated technology, data analytics and a team rich with industry experience, MultiPlan interprets customers’ needs and customizes innovative solutions that combine its payment and revenue integrity, network-based and analytics-based, and data and decision science services. MultiPlan is a trusted partner to over 700 healthcare payors, brokers, employer groups, and supplemental carriers in the commercial health, government, and property and casualty markets. For more information, visit multiplan.com.
