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 participant census rising to 7,020, a 9.6% increase from 2023.

• Net loss for fiscal 2024 was $23.2 million, improved from $43.6 million in 2023, and Adjusted EBITDA turned positive at $16.5 million (2.2% margin), a $20 million improvement.

• Center-level contribution margin rose to $132 million (17.3%), up 260 basis points year-over-year.

• Adjusted EBITDA for Q4 was $5.2 million (2.6% margin).

• Net loss per share for fiscal 2024 was $0.16, improved from $0.30 in 2023.

Financial highlights

• Q4 2024 revenue was $199.4 million, up from $176.9 million in Q4 2023; full-year revenue reached $764 million.

• 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.

• Cost of care (excluding D&A) was $228.8 million, up 7.8% year-over-year.

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

Outlook and guidance

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

• 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 $18–$20 million, spread evenly throughout the year.