Privia Health's 2024 Q4 Earnings Call: Discrepancies in M&A Strategy, Fee Schedule Impact, and Risk Management

These are the key contradictions discussed in Privia Health Group, Inc.'s latest 2024Q4 earnings call, specifically including: the company's approach to M&A pipeline and cash balance, impact of physician fee schedule changes, risk management strategy, and shared savings performance:



Strong Financial Performance and Growth:
- Privia Health reported a very strong 2024, with implemented providers increasing by 11.2% year-over-year, driving fee-for-service collections growth of 13.6%.
- The growth was driven by exceptional new provider signings in existing markets, as well as healthy growth in attribution and clinical performance improvement.

Robust Adjusted EBITDA and Operating Leverage:
- Adjusted EBITDA was up 25.2%, with operating leverage leading to margin expansion of 230 basis points year-over-year.
- This was achieved despite investments in non-US markets, demonstrating significant profitability and financial flexibility.

Record Free Cash Flow and Cash Position:
- Privia generated a record $109.3 million in free cash flow in 2024, converting 121% of adjusted EBITDA.
- The company ended the year with $491 million in cash and no debt, reflecting a strong balance sheet and financial flexibility.

Geographic Expansion and Market Density:
- Privia expanded its footprint, now comprising 4,789 implemented providers caring for over 5.2 million patients in more than 1,200 care center locations across 14 states and the District of Columbia.
- This expansion is supported by a successful strategy of increasing density and scale in existing markets, as well as entering new states.