Performant Financial (PFMT) Q2 Virtual Investor Summit Event earnings summary

Industry overview and company positioning

• Operates in the healthcare payment integrity sector, addressing $300B+ in payment integrity waste within a $4T+ U.S. healthcare spend.

• Sits between payers and providers, offering claims-based and eligibility-based services to reduce waste.

• Evolved from a call center debt recovery provider to a technology-driven healthcare solutions company since 2009.

• Technology and a client-centric team are key differentiators, with a backbone platform acquired in 2012.

• Industry has consolidated to a few major players, with increased compliance and infosecurity requirements.

Client relationships and growth strategy

• Maintains strong federal relationships with CMS and commercial ties with five of the top seven national payers.

• Recently secured its first direct Medicaid fee-for-service contract with New York, aiming for more state contracts.

• Growth strategy centers on "land and expand," increasing services and geographic reach within existing clients.

• Focuses on a partnered go-to-market approach across business development, sales, and executive teams.

Financial performance and outlook

• Guides for $133M-$135M in healthcare revenues and $9M-$10M in Adjusted EBITDA for the current year.

• Targets 20%+ Adjusted EBITDA margin as scale and technology initiatives mature, with visibility into required revenue and tech milestones.

• Consistent double-digit top-line revenue growth expected to continue.

• Margin expansion expected as revenues reach $150M-$160M, driven by scale and efficiency.