U.S. healthcare industry focused technology and data analytics firm Multiplan Corp. (MPLN:NYSE), which provides end-to-end cost management, payment and revenue integrity solutions, today announced financial results for the first quarter of 2021 ended March 31, 2021.
The company's CEO Mark Tabak commented, "MultiPlan's performance during the first quarter demonstrated the continued strength of our company...Despite the ongoing effects of the COVID-19 pandemic on our business, both revenue and Adjusted EBITDA for the first quarter were in-line with the prior quarter and the expectations we communicated earlier this year, underscoring the recurring nature of our business and positioning us to maintain momentum in 2021. We also continued to make progress on our Extend growth strategy, completing the acquisition of Discovery Health Partners in February and forging ahead with the integrations of HST and Discovery."
The firm indicated that it strives to deliver long-term sustained growth by enhancing its product service offerings to payors and expanding its platform to serve new payor customer channels. The company stated that its current network platform serves about 1.2 million providers and links them with over 700 payor customers handling transactions for greater than 60 million consumers annually. The firm noted that in Q1/21 it processed around $29 billion in claims and helped its clients identify potential medical cost savings of approximately $4.9 billion.
Multiplan stated that in Q1/21 revenues increased by 1.1% to $254.9 million, up from $252.0 million in Q1/20.
The company reported that it earned net income of $45.9 million in Q1/21, compared to a net loss of $2.6 million in Q1/20. During the same corresponding period Multiplan stated that it had adjusted EBITDA of $191.1 million, versus $195.9 million in the prior year's quarter.
The firm provided some forward guidance and advised that for Q2/21 it expects revenues to be $260-275 million and adjusted EBITDA to be in the range of $185-200 million.
The company added that for FY/21 it expects that revenues will range from $1.04-1.10 billion, with FY/21 adjusted EBITDA of $750-$790 million.
MultiPlan stated that it is "committed to helping healthcare payors manage the cost of care, improve their competitiveness and inspire positive change. Leveraging sophisticated technology, data analytics and a team rich with industry experience, MultiPlan interprets clients' needs and customizes innovative solutions that combine its payment and revenue integrity, network-based and analytics-based services." The company stated that its customers include more than 700 healthcare payors operating within the commercial health, government and property and casualty insurance markets.
Multiplan started off the day with a market capitalization of around $4.1 billion with approximately 668.9 million shares outstanding and a short interest of about 3.0%. MPLN shares opened nearly 10% higher today at $6.75 (+$0.60, +9.76%) over yesterday's $6.15 closing price. The stock has traded today between $6.75 and $7.40 per share and is currently trading at $7.19 (+$1.04, +16.91%).[NLINSERT]
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