• MultiPlan Corp (NYSE:MPLN) reported Q3 2023 revenues of $242.8 million, a decrease of 3.1% compared to Q3 2022.

• The company posted a net loss of $24.1 million for Q3 2023, compared to a net income of $19.7 million for Q3 2022.

• Adjusted EBITDA for Q3 2023 was $152.3 million, compared to $172.2 million for Q3 2022.

• MultiPlan Corp (NYSE:MPLN) identified potential medical cost savings of approximately $5.8 billion in Q3 2023, up 2% from Q2 2023 and up 7% from Q3 2022.

• Warning! GuruFocus has detected 6 Warning Signs with MPLN.

MultiPlan Corp (NYSE:MPLN), a leading provider of data analytics and technology-enabled cost management solutions to the U.S. healthcare industry, released its financial results for the third quarter ended September 30, 2023, on November 7, 2023. The company reported a decrease in revenues and a net loss for the quarter.

Financial Performance

MultiPlan Corp (NYSE:MPLN) reported Q3 2023 revenues of $242.8 million, a decrease of 3.1% compared to revenues of $250.5 million for Q3 2022. The company posted a net loss of $24.1 million for Q3 2023, compared to a net income of $19.7 million for Q3 2022. Adjusted EBITDA for Q3 2023 was $152.3 million, compared to $172.2 million for Q3 2022.

Operational Highlights

The company identified potential medical cost savings of approximately $5.8 billion in Q3 2023, up 2% from Q2 2023 and up 7% from Q3 2022. MultiPlan Corp (NYSE:MPLN) also repurchased an additional $46.1 million in face value of its 5.75% Senior Unsecured Notes in the open market in Q3 2023.

CEO Commentary

CEO Dale White commented on the results, stating

The third quarter results continued to track to our plan for the year and our expectation for growth in the second half of 2023. We delivered sequential growth in revenues, with flat Adjusted EBITDA reflecting accelerated investments in new products for the core business and in our new Data & Decision Science Services line. As a result, we remain on track to deliver on our full-year 2023 guidance."

2023 Financial Guidance

The company updated its Full Year 2023 guidance for revenues and Adjusted EBITDA. The revised guidance for revenues is $960 million to $970 million, and for Adjusted EBITDA is $615 million to $625 million. All other guidance items remain unchanged.

Balance Sheet and Cash Flow

Net cash provided by operating activities was $72.1 million for Q3 2023, compared to $109.0 million for Q3 2022. Free Cash Flow for Q3 2023 was $49.7 million, compared to $88.2 million for Q3 2022. The company ended Q3 2023 with $101.3 million of unrestricted cash and cash equivalents on the balance sheet.