MultiPlan Corp. (NYSE: MPLN) reported Q4 revenue for the quarter came in at $255.3 million versus the consensus estimate of $242.63 million.

Business and Financial Highlights

• Outperformed initial management expectations from COVID-19 impact with revenues of $255.3 million for Q4 2020, up from $223.5 million for Q3 2020, reflecting a 14.2% quarter-over-quarter increase, and an increase of 3.6% over Q4 2019 revenues of $246.4 million.
• Net loss of $182.4 million for Q4 of 2020 compared to net loss of $288.4 million for Q3 2020. The reduction in loss was principally due to increased revenues of $31.8 million and reduced stock-based compensation costs of $155.9 million, net of $26.5 million in transaction costs in Q4 2020 primarily related to the transaction with Churchill which closed on October 8, 2020, and $103.0 million of losses on extinguishment of debt in Q4 2020. Net income for Q4 2019 was $11.8 million.
• Adjusted EBITDA of $195.1 million for Q4 2020 compared to $165.5 million for Q3 2020, and $186.7 million for Q4 2019.
• Revenues of $937.8 million for full year 2020 compared to $982.9 million for full year 2019. The revenue decline is primarily due to the impact of COVID-19, particularly in the second and third quarters of 2020.
• Net loss for full year 2020 of $529.6 million compared to net income of $9.7 million for full year 2019. The decline was principally due to stock-based compensation costs of $406.1 million, $31.7 million in transaction costs primarily related to the transaction with Churchill which closed on October 8, 2020, and $103.0 million of losses on extinguishment of debt in Q4 2020 and full year 2020.
• Adjusted EBITDA of $706.3 million for full year 2020 compared to $750.4 million for full year 2019. The Adjusted EBITDA decline was primarily a result of reduced revenues because of COVID-19.

“MultiPlan had a milestone fourth quarter in terms of both performance and execution of our growth plan,” said Mark Tabak, CEO of MultiPlan. “After reporting stronger than expected results in the third-quarter, we delivered even stronger fourth quarter results despite pandemic conditions and their impact on elective healthcare service. We also made great strides in achieving the goals of our Extend growth strategy with the integration of HST well underway, and the acquisition of Discovery Health Partners which closed last month. I’m proud of our mission to deliver fairness, efficiency and affordability to the U.S. healthcare system, and the pace at which we are progressing in achieving it.”

2021 Outlook

Due to variability in COVID-19 case trends and public policy responses to the COVID-19 pandemic across different regions in MultiPlan’s national footprint, and the uncertainty in evaluating the impact of those dynamics on the Company’s customers and operating and financial results, the Company is not providing annual or quarterly guidance at this time. The Company will continue to monitor the impact of the COVID-19 pandemic on its business and may elect to communicate guidance later in 2021. While the company is not providing guidance, it anticipates Q1 2021 revenues and adjusted EBITDA will reflect substantially similar operating performance as Q4 2020, adjusted for the usual seasonal softness of Q1, the impact of $2 to $3 million of additional public company costs in Q1 2021 as compared to Q4 2020 and the possible impact of operational disruption related to the extreme weather in Texas during February.

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