Core Insights - Performant Financial Corporation reported Q2 2024 results that exceeded consensus estimates, with revenues and profitability outperforming expectations [4][10] - The company experienced a 17% year-over-year increase in core healthcare revenues and an 8% sequential increase, attributed to the successful implementation of new contracts [4][5] - Adjusted EBITDA turned positive for the quarter, and the company generated $3.7 million in free cash flow [5] Financial Performance - Total revenue for Q2 2024 was $29.4 million, with healthcare contribution at 95.1% [4] - Cash and cash equivalents at the end of Q2 2024 were $10.4 million, with total liquidity amounting to $20.8 million [5] - Management reiterated full-year expectations, projecting total healthcare revenue between $117 million and $122 million, representing a year-over-year growth of 10% to 14.7% [5] Market Opportunities - The company sees significant long-term opportunities in underpenetrated target markets, particularly in the state government sector, which is estimated to be worth $300 million to $500 million [7] - National health expenditures are projected to rise by over 50% by the end of the decade, with approximately 20% of total healthcare spending considered waste, indicating a large market opportunity for Performant [8] Challenges and Outlook - The upcoming election is creating near-term headwinds in the company's government vertical, leading to a more conservative approach from several agencies [6][10] - Management remains confident in the government's commitment to payment accuracy and transparency despite the election cycle [6] - The company is in the process of selecting promising areas for its recently acquired AI technology, with no immediate significant impact expected [9]

Revenue Performance - Total revenues for the three months ended June 30, 2024, were $29,362,000, representing a 15% increase from $25,485,000 for the same period in 2023[66] - Healthcare revenues, which include eligibility-based and claims-based services, totaled $27,925,000 for the three months ended June 30, 2024, up 16% from $23,929,000 in the prior year[66] - Claims-based services revenue increased to $13,661,000 for the three months ended June 30, 2024, compared to $9,798,000 for the same period in 2023, marking a 39% growth[66] - Total revenues for Q2 2024 were $29.4 million, an increase of approximately $3.9 million, or 15%, compared to Q2 2023 revenues of $25.5 million[88] - Healthcare revenues reached $27.9 million in Q2 2024, representing a $4.0 million increase, or 17%, compared to Q2 2023[88] - Total revenues for the first half of 2024 were $56.7 million, an increase of approximately $5.5 million, or 11%, compared to $51.2 million in the first half of 2023[98] - Healthcare revenues for the first half of 2024 were $53.7 million, reflecting a $6.9 million increase, or 15%, from the first half of 2023[98] Operational Results - Loss from operations improved to $2.7 million in Q2 2024, a decrease of $860,000, or 24%, from a loss of $3.6 million in Q2 2023[92] - Net loss for Q2 2024 was $3.0 million, a reduction of approximately $1.0 million, or 25%, compared to a net loss of $4.0 million in Q2 2023[95] - Net loss for the first half of 2024 was $7.0 million, a decrease of approximately $1.2 million, or 14%, compared to a net loss of $8.2 million in the first half of 2023[106] - Adjusted net loss for the three months ended June 30, 2024, was $(1,962) thousand, compared to $(3,158) thousand for the same period in 2023, reflecting a 38% improvement[1] Expenses - Salaries and benefits expense increased to $24.5 million in Q2 2024, up $2.8 million, or 13%, from $21.7 million in Q2 2023[90] - Other operating expenses for Q2 2024 were $7.6 million, a slight increase from $7.4 million in Q2 2023, primarily due to higher depreciation expenses[91] - Interest expense decreased to $0.3 million in Q2 2024, down from $0.4 million in Q2 2023, representing a decrease of approximately $0.1 million[93] Cash Flow and Financial Position - Cash provided by operating activities was $4.7 million for the six months ended June 30, 2024, an increase from $2.3 million for the same period in 2023[119] - Cash used in investing activities was $4.5 million for the six months ended June 30, 2024, primarily for capital expenditures, compared to $2.3 million in the same period of 2023[120] - As of June 30, 2024, the company had $10.4 million in cash and cash equivalents, up from $7.3 million as of December 31, 2023[115] - The company entered into a new credit agreement on October 27, 2023, with a $25 million revolving loan commitment, of which $8.0 million was outstanding as of June 30, 2024[116] - The annual interest rate under the credit agreement was 8.0% as of June 30, 2024[123] - The company expects to maintain sufficient cash flows from operating activities to fund ongoing and planned business operations[117] - The company was in compliance with all covenants under the credit agreement as of June 30, 2024[128] - If interest rates on borrowings increased by 100 basis points, the annual interest expense would rise by approximately $80 thousand[130] Strategic Outlook - The company anticipates that healthcare revenues will drive the majority of overall revenue growth moving forward[72] - The company’s growth strategy includes expanding in existing markets and considering strategic alliances or acquisitions[68] - Regulatory changes affecting Medicare claims could significantly impact the company’s revenues and operational results[81] Revenue Model - The company has a contingency-based revenue model, earning fees based on the amount of funds recovered for clients, aligning its objectives with those of its clients[63] - The company’s revenues are significantly influenced by the volume of claims it is permitted to audit, which can be unilaterally changed by clients[78] - The company was awarded the Medicare Recovery Audit Contractor (RAC) contract for Region 2 in November 2022, with a term of eight-and-a-half years[69]

Financial Data and Key Metrics Changes - The company reported total revenues of $29.4 million for Q2 2024, with healthcare revenues of $27.9 million, reflecting a 17% year-over-year growth in healthcare revenues [12][13] - Positive EBITDA of $0.5 million was achieved, which is $1.8 million higher than the same quarter last year [9][17] - Operating expenses increased to $32.1 million, up by approximately $3 million compared to the previous year, primarily due to scaling implementations and IT investments [16] Business Line Data and Key Metrics Changes - The claims auditing business generated nearly $14 million in revenue for the quarter, representing a 40% year-over-year increase [13] - Eligibility revenues for the quarter were $14.3 million, showing a 1% increase compared to last year [14] - The customer care outdoor services business saw a slight decline, accounting for $1.4 million in revenue, down by $0.1 million from the previous year [13] Market Data and Key Metrics Changes - The company is actively pursuing opportunities in the $300 million to $500 million state market and has submitted proposals for various state RFPs [6] - The company anticipates continued growth with commercial clients and the scaling of the RAC Region 2 contract, despite a more conservative approach from federal oversight programs due to the election cycle [14][19] Company Strategy and Development Direction - The company aims to prioritize client needs, continuously innovate, and achieve operational excellence as part of its growth strategy [4] - The integration of RecordsOne technology is expected to enhance the accuracy and efficiency of audit workflows, contributing to margin gains [10] - The company is focused on becoming a best-in-class pure-play healthcare company and has introduced an employee stock purchase plan to foster a culture of ownership [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to navigate the current election cycle and maintain a focus on payment accuracy and transparency [6][24] - The company reaffirmed its guidance for 2024 healthcare revenues to be between $117 million and $122 million, with total company revenues expected to be between $124 million and $129 million [18] - Management remains confident in achieving self-sustaining cash flows and a 20% adjusted EBITDA margin as healthcare revenues reach $150 million to $160 million [19] Other Important Information - The company has implemented 20 new statements of work year-to-date, which are expected to generate approximately $9 million in annualized revenue at steady state [5] - The change healthcare outage has had a minor impact on performance, with minimal operational disruption reported to date [7][8] Q&A Session Summary Question: Update on Medicaid opportunities and New York timing - Management confirmed that the New York rebid is on track for decision-making in early September, with implementation expected early next year [21] Question: Explanation of conservative oversight during election cycles - Management noted that election periods typically lead to delays and increased scrutiny on oversight programs, but the focus on payment accuracy and transparency is expected to remain unchanged [23][24] Question: Broader update on project touring and RecordsOne integration - Management indicated that the integration of RecordsOne is progressing well and is expected to drive efficiencies across various business aspects [25][26] Question: Expectations for quarter-over-quarter earnings leverage - Management anticipates that as new implementations generate profitability, the company will start to see increased earnings leverage [28][29] Question: Capacity to support new implementations - Management confirmed that there are no current capacity issues and the team is well-positioned to handle the implementation growth [30] Question: Differences in profit margins between commercial and government sides - Management stated that while government contracts typically have lower margins, the overall efficacy of work tends to balance the margins between the two sectors [32]

Exhibit 99.1 Performant Financial Corporation Announces Financial Results for Second Quarter 2024 Plantation, FL., August 7, 2024 - Performant Financial Corporation (Nasdaq: PFMT), a leading provider of healthcare payment integrity services, today reported the following financial results for its second quarter ended June 30, 2024: Second Quarter Financial Highlights • Healthcare revenues of $27.9 million, compared to $23.9 million in the prior year period, an increase of approximately 17%. • Total revenues ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-35628 PERFORMANT FINANCIAL CORPORATION (Exact name of registrant as specified in its charter) Delaware 20-0484934 (State or ot ...

Performant Financial Corporation (NASDAQ:PFMT) Q1 2024 Earnings Conference Call May 7, 2024 5:00 PM ET Company Participants Jon Bozzuto - Head, Investor Relations Simeon Kohl - Chief Executive Officer Rohit Ramchandani - Chief Financial Officer Conference Call Participants George Sutton - Craig-Hallum Capital Group Jacob Stephan - Lake Street Capital Markets Operator Greetings ladies and gentlemen and welcome to Performant Financial Corporation's First Quarter 2024 Earnings Call. At this time, all lines are ...

Exhibit 99.1 Performant Financial Corporation Announces Financial Results for First Quarter 2024 Plantation, FL., May 7, 2024 - Performant Financial Corporation (Nasdaq: PFMT), a leading provider of healthcare payment integrity services, today reported the following financial results for its first quarter ended March 31, 2024: First Quarter Financial Highlights First Quarter 2024 Results Healthcare revenues in the first quarter of 2024 were $25.8 million, an increase of approximately 13% from $22.9 million ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No ☒ Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes No ☒ Indicate by check mark whether the registrant (1) has filed all repor ...

Performant Financial Corporation (NASDAQ:PFMT) Q4 2023 Earnings Conference Call March 12, 2024 5:00 PM ET Company Participants Jon Bozzuto – Head-Investor Relations Simeon Kohl – Chief Executive Officer Rohit Ramchandani – Chief Financial Officer Conference Call Participants George Sutton – Craig-Hallum Jacob Stephan – Lake Street Capital Markets Operator Greetings, and welcome to Performant Financial Corp. Fourth Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. A questi ...

Exhibit 99.1 Performant Financial Corporation Announces Financial Results for Fourth Quarter and Full Year 2023 Plantation, FL, March 12, 2024 - Performant Financial Corporation (Nasdaq: PFMT), a leading provider of healthcare payment integrity services, today reported the following financial results for its fourth quarter and full year ended December 31, 2023: Net loss for the full year ended December 31, 2023 was $7.5 million, or $(0.10) per diluted share, compared to net loss of $6.5 million, or $(0.09) ...