Performant Financial Reports Modest Revenue Growth in Q3 2024

Performant Financial Corp ( (PFMT) ) has released its Q3 earnings. Here is a breakdown of the information Performant Financial Corp presented to its investors.

Performant Financial Corporation is a healthcare payment integrity services provider, working primarily in the healthcare sector to assist clients in identifying and recovering improper payments through advanced technology and data analytics.

In the third quarter of 2024, Performant Financial Corporation experienced a modest revenue increase, with healthcare revenues rising by 6% to $30.3 million compared to the same period last year. Total revenues for the quarter amounted to $31.5 million, reflecting a 5% year-over-year growth.

Key financial metrics revealed a net loss of $2.4 million, widening from a net loss of $0.6 million in the prior year period. Despite these losses, the company reported an adjusted EBITDA of $1.9 million, slightly up from last year’s $1.8 million. The strategic focus on healthcare payment integrity services is evident, with significant contributions expected from newly implemented programs, notably the State Medicaid contract with New York.

The company also decided to scale back its customer care services, reflecting a strategic realignment towards its core healthcare business. Performant’s leadership remains optimistic about the growth potential in the healthcare payment integrity market, bolstered by strategic contract awards across federal, commercial, and state clients.

Looking ahead, Performant Financial Corporation maintains its guidance for healthcare revenues in the range of $117 million to $122 million for the full year 2024, with adjusted EBITDA projected between $4 million and $5 million. The management’s outlook remains confident despite facing challenges in the broader healthcare market.