Privia Health Group, Inc. reported its financial results for the three and nine months ended September 30, 2024, showing notable changes in revenue, profitability, and operational metrics compared to the same periods in 2023.

For the third quarter of 2024, Privia generated revenue of $437.9 million, reflecting a 4.9% increase from $417.3 million in Q3 2023. The nine-month revenue also rose by 4.8%, reaching $1.28 billion compared to $1.22 billion in the prior year. Key drivers of this growth included a significant increase in Fee-for-Service (FFS) patient care revenue, which rose by 15.4% to $283.3 million, while capitated revenue saw a substantial decline of 39.7% to $53.4 million due to renegotiated contracts. Shared savings revenue increased by 41.5% to $47.4 million.

Despite the revenue growth, the company faced rising operating expenses, which totaled $432.1 million for Q3 2024, up 4.9% from $411.7 million in Q3 2023. For the nine-month period, operating expenses increased by 5.5% to $1.26 billion. This led to operating income of $5.8 million for Q3 2024, a slight increase from $5.5 million in the same quarter of 2023, but a significant decline in nine-month operating income to $11.7 million from $19.2 million in the previous year.

Net income for Q3 2024 was $4.0 million, down 33.1% from $5.9 million in Q3 2023. For the nine months, net income decreased by 37.6% to $11.7 million from $18.7 million in the prior year. Net income attributable to Privia Health Group, Inc. common stockholders also fell, with Q3 2024 reporting $3.5 million compared to $5.6 million in Q3 2023.

The company’s balance sheet showed improvements, with total assets increasing to $1.15 billion as of September 30, 2024, up from $999.9 million at the end of 2023. Cash and cash equivalents rose to $422.0 million, and accounts receivable increased significantly to $409.0 million from $290.8 million at the end of 2023.

Strategically, Privia Health continues to expand its market presence, operating in 14 markets across the U.S. and planning to enter Indiana in November 2024. The company aims to enhance its provider base and attributed patient lives in Value-Based Care (VBC) programs, which are critical for revenue growth. The company has also seen a 13.1% increase in implemented providers and a 14.0% increase in attributed lives compared to the previous year.

Overall, while Privia Health Group, Inc. experienced revenue growth, profitability metrics showed declines, influenced by rising operational costs and changes in revenue streams.