R1 RCM (RCM) investor relations material

Executive summary

• Net services revenue rose 15% year-over-year to $656.8 million for Q3 2024, driven by the Acclara acquisition, new customer contracts, and onboarding a major end-to-end partner, partially offset by cyberattack and technology outage impacts.

• Net loss for Q3 2024 was $19.9 million, compared to net income of $1.3 million in Q3 2023, reflecting higher costs, vendor and customer outages, and merger-related impacts.

• Adjusted EBITDA for Q3 2024 was $148.2 million, down 8% year-over-year.

• The company completed the $786 million Acclara acquisition and entered into a take-private merger agreement valued at $14.30 per share.

Financial highlights

• Q3 2024 net services revenue: $656.8 million (up 15% year-over-year); nine months: $1,888.6 million (up 12%).

• Q3 2024 net loss: $19.9 million; nine months: net loss of $62.6 million.

• Q3 2024 Adjusted EBITDA: $148.2 million (down 8% year-over-year); nine months: $456.5 million (up 2%).

• Operating expenses increased to $641.0 million from $531.6 million year-over-year.

• Cash and cash equivalents at September 30, 2024: $167.3 million; total debt: $2.2 billion.

Outlook and guidance

• The pending take-private merger is expected to close by year-end, subject to customary conditions and stockholder approval.

• No financial guidance provided due to the proposed acquisition.

• Additional costs and revenue impacts from recent cyberattacks and technology outages are expected to affect performance in 2024.

• The company anticipates continued investment in technology, global operations, and new business development.