Signify Health, Inc. (SGFY) Misses Q1 EPS by 14c, Revenues Beat; Offers FY21 Revenues Outlook

Signify Health, Inc. (NYSE: SGFY) reported Q1 EPS of ($0.14), $0.14 worse than the analyst estimate of $0.00. Revenue for the quarter came in at $180 million versus the consensus estimate of $158.07 million.

Financial Highlights

• First quarter revenue of $180.0 million, an increase of 37% from first quarter 2020
• GAAP net loss total of $51.7 million compared to net loss of $8.9 million in first quarter 2020
• Non-GAAP adjusted EBITDA1 of $34.4 million, an increase of 58% from first quarter 2020

“Strong execution against our strategies and continued positive momentum in our Home & Community Services segment drove significant growth in the first quarter,” said Kyle Armbrester, Chief Executive Officer of Signify Health. "Accelerated customer demand for our comprehensive member evaluations and the investments we have made in people and process to handle the increased demand effectively contributed to in-home evaluation volume growth. We continue to expand our commercial capabilities in the Episodes of Care segment to drive growth with new entrants such as commercial plans and employers.”

Mr. Armbrester continued, “Our two highly complementary businesses are focused on reducing healthcare costs through the deployment of services and value-based payment models backed by sophisticated analytics and software, extensive data, and contracted networks of health care providers. For the balance of 2021 and beyond, we will invest in and leverage the collective services of both segments to drive better patient outcomes and advance our mission to transform how healthcare is paid for and delivered so that people can enjoy more healthy, happy days at home.”

GUIDANCE:

Signify Health, Inc. sees FY2021 revenue of $725-760 million, versus the consensus of $741.01 million.

Signify Health is maintaining 2021 guidance, although based on first quarter results the Company is trending towards the higher end of the range for total revenue and adjusted EBITDA. The following estimates are for the full year 2021 and assume that the COVID-19 situation continues to improve in 2021:

• Total GAAP revenue in the range of $725 million to $760 million (reduced by approximately $19.7 million relating to the EARs); and
• Total adjusted EBITDA1 in the range of $150 million to $160 million.

Signify Health is also maintaining estimates for the following key performance indicators for full year 2021:

• HCS segment IHEs in the range of 1.70 million to 1.75 million;
• ECS segment weighted average program size in the range of $5.1 billion to $5.3 billion; and
• ECS segment weighted average savings rate improvement of 25-50 basis points from 2020.

For earnings history and earnings-related data on Signify Health, Inc. (SGFY) click here.

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