Privia Health Group, Inc.

Hello and thank you for standing by. My name is Regina and I will be your conference operator today. At this time, I would like to welcome everyone to the Privia Health second quarter 2024 conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star then the number one on your telephone keypad. If you'd like to withdraw your question, press star one again. I would now like to turn the conference over to Robert Borchert, SVP, Investor and Corporate Communications. Please go ahead.

Thank you, Regina, and good morning, everyone. Joining me are Parth Morotra, our Chief Executive Officer, and David Mountcastle, our Chief Financial Officer. This call is being webcast and can be accessed in the Investor Relations section of PriviaHealth.com. Today's financial press release and slide presentation are posted in the Investor Relations section of PriviaHealth.com. And following our prepared comments, we will open the line for questions. So please limit yourself to one question only and return to the queue if you have a follow-up so we can get to as many questions as possible. The financial results reported today are preliminary and are not final until our Form 10Q for the second quarter ended June 30, 2024 is filed with the Securities and Exchange Commission. Some of the statements we will make today are forward-looking in nature, based on our current expectations and view of our business as of August 8, 2024. Such statements, including those related to our future financial and operating performance and future business plans and objectives, are subject to risks and uncertainties that may cause actual results to differ materially. As a result, these statements should be considered along with the cautionary statements in today's press release and the risk factors described in our company's most recent SEC filings. Finally, we may refer to certain non-GAAP financial measures on the call. Reconciliation of these measures to comparable GAAP measures are included in our press release and the accompanying slide presentation posted on our website. Now, I'd like to turn the call over to our CEO, Parth Mehrotra.

Thank you, Robert, and good morning, everyone. Privia Health posted another strong quarter of financial performance as we are executing well operationally and continue to drive growth across all of our markets. This morning, I'll cover some key highlights and provide a business update. Then David will discuss our recent financial performance and provide an update to our 2024 guidance outlook, given our strong results in the first half of the year, before we take your questions. During the second quarter, Previa's momentum continued across all aspects of our business. We are making great progress towards our long-term vision to build one of the largest ambulatory care delivery networks in the nation. Implemented providers increased 16.4% from a year ago. This strength in same-store growth and new provider additions is reflected in our top-line performance. Q2 practice collections grew 4% year-over-year and increased more than 12% when you exclude the impact of the restructured MA capitation contracts at the beginning of the year. Adjusted EBITDA was up 14% as we continue to drive operating leverage while absorbing incremental new market investments. Our pipeline for both existing market growth and new market business development remains robust. We have $387 million in cash, no debt, and a strong conversion of annual EBITDA to free cash flow, which positions us well for durable long-term growth. Given our solid first half performance across all metrics and high visibility into the rest of the year, we are increasing our guidance to the mid to high end for all metrics. The combination of our diversified value-based platform and strong underlying fee-for-service business, serving the entire physician practice continues to be a key differentiator in attracting community providers to the Privia model in today's environment. Privia's national footprint continues to expand. At the end of Q2, we had 4,504 implemented providers caring for more than 5 million patients across 13 states and the District of Columbia. We are working diligently to expand into new states and increase our provider density across every state we operate in. Our aim is to build large-scale, high-quality, community-based medical groups that will become one of the most important assets in the healthcare ecosystem. We have very high patient satisfaction, as reflected in the Net Promoter Score of 85. Our gross provider retention has averaged more than 98% over the past three years. On a net basis, our provider retention is over 100%, given our same store growth in existing geographies. We continue to expand our diversified value-based platform across reimbursement models. Privia now serves over 1.2 million attributed lives across 100-plus commercial and government programs. Total attributed lives increased more than 10.5% from Q2 a year ago, which places Privia as one of the broadest and most balanced value-based care players in the industry. Our commercial attributed lives increased 11.6% from last year to reach $741,000. We earn care management fees and generate shared savings that are incremental to our predictable fee-for-service management fees. This offers a highly differentiated value proposition to our medical groups and is core to our long-term strategy to opportunistically increase our attribution in various risk arrangements over time to drive future earnings growth. We continue to perform well in our Medicare Shared Savings Book of Business and have taken proactive steps to navigate the challenging MA environment as we discussed last quarter. Now I'll ask David to review our Q2 and year-to-date financial results in our updated 2024 Guidance Outlook.