InnovAge (INNV) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 revenue grew 11% year-over-year to $764 million, with Q4 revenue at $199 million and a year-end census of 7,020, up 9.6%.

• Center-level contribution margin improved to $132 million (17.3%), up 260 basis points from 2023.

• Adjusted EBITDA for FY24 was $16.5 million (2.2% margin), a $20 million improvement over FY23.

• Net loss for FY24 was $23.2 million, improved from $43.6 million in 2023; net loss per share was $0.16, down from $0.30.

• Expanded operations with two new centers in Florida, two California acquisitions, and a joint venture in Orlando.

Financial highlights

• Q4 2024 revenue reached $199–$199.4 million, up 3.3% sequentially; center-level contribution margin was $36.6 million (18.3%).

• Member months increased 4.5% to 80,800 in fiscal 2024.

• External provider costs rose 7.6% to $403 million, mainly due to higher member months and increased cost per participant.

• Sales and marketing expense rose to $25 million, while corporate G&A decreased to $111.3 million.

• Ended Q4 with $56.9 million in cash, $45.8 million in short-term investments, and $83.3 million in total debt.

Outlook and guidance

• Fiscal 2025 guidance: census of 7,300–7,750, member months of 86,000–89,000, revenue of $815–$865 million, Adjusted EBITDA of $24–$31 million, and de novo losses of $18–$20 million.

• Adjusted EBITDA margins expected to reach 8–9% over the intermediate term (2–4 years).

• Mid-single-digit rate increases expected for Medicare and Medicaid, with specific increases in Colorado, Virginia, California, and Pennsylvania.

• De novo losses expected to be spread evenly throughout the year.