CorVel Announces Revenues and Earnings
CorVel Corporation (NASDAQ: CRVL) reported a strong financial performance for the quarter and nine months ended December 31, 2023, with revenues increasing to $202 million and $588 million respectively. Earnings per share also saw growth, reaching $0.99 for the quarter and $3.27 for the nine-month period. The company achieved a 34% increase in new business sold and demonstrated strong customer retention rates of 95% for Gross Revenue Retention and 108% for Net Revenue Retention. CorVel's innovative use of advanced technology and AI initiatives has led to increased efficiency and effectiveness in its payment integrity services and claims teams, contributing to improved user experience and results.
Positive
Revenues for the quarter were $202 million, an increase from $179 million in the December quarter of 2022
Earnings per share for the quarter were $0.99, compared to $0.96 in the same quarter of the prior year
34% increase in new business sold
Customer retention rates of 95% for Gross Revenue Retention and 108% for Net Revenue Retention
Innovative use of advanced technology and AI initiatives leading to increased efficiency and effectiveness
The reported increase in CorVel Corporation's revenues and earnings per share (EPS) for both the quarter and the nine-month period signifies a positive trajectory in the company's financial performance. The year-over-year revenue growth from $179 million to $202 million and EPS improvement from $0.96 to $0.99 for the quarter, indicates a solid operational execution. Similarly, the nine-month revenue rise from $533 million to $588 million and EPS increase from $2.73 to $3.27, reflects sustained profitability and may be viewed favorably by investors seeking steady growth.
Furthermore, the 34% increase in new business alongside high customer retention rates—95% for Gross Revenue Retention and 108% for Net Revenue Retention—suggests a strong competitive position and the potential for recurring revenue streams. These figures are particularly relevant as they exceed the typical benchmark for successful SaaS companies, which often target an annual retention rate above 90%. The emphasis on payment integrity services and the expansion of CERIS teams highlight strategic initiatives to capture additional market share in the healthcare cost containment industry. The focus on advanced technology, including generative AI, to enhance operational efficiency may contribute to margin improvement and could be a catalyst for future earnings growth.
CorVel Corporation's strategic emphasis on advanced technology to improve its service offerings is a noteworthy development in the healthcare management industry. The implementation of generative AI initiatives that streamline P&C and Commercial Claims teams' processes is indicative of an industry-wide shift towards automation and efficiency. By reducing the time spent on routine tasks, CorVel is likely to enhance its competitive edge through faster service delivery and improved customer satisfaction.
The attention CorVel's payment integrity services have received from large payors and platform vendors is also significant. As medical care ratios grow, the demand for effective cost containment solutions is increasing. CorVel's ability to address this market need with proven solutions may lead to expanded business opportunities and partnerships, which could further bolster its market position. The expansion of review teams suggests a proactive approach to scaling operations in anticipation of higher demand.
CorVel's focus on payment integrity services is a critical factor in the healthcare sector, where controlling costs is a major concern. The company's efforts to offer proven solutions for managing medical care ratios reflect a response to the rising healthcare expenses that affect both payors and patients. The expansion of CERIS teams to launch additional reviews in the market indicates an investment in quality assurance and compliance, which are essential in maintaining trust and credibility in healthcare management.
The use of generative AI to enhance the efficiency of claims teams represents an innovative approach to healthcare management, potentially setting new standards for the industry. By leveraging AI to improve decision-making and reduce administrative burdens, CorVel is positioning itself at the forefront of technological adoption in healthcare services. This could lead to a more effective handling of claims and patient management, ultimately improving outcomes and reducing costs for clients.
01/30/2024 - 06:15 AM
FORT WORTH, Texas, Jan. 30, 2024 (GLOBE NEWSWIRE) -- CorVel Corporation (NASDAQ: CRVL) announced the results for the quarter ended December 31, 2023. Revenues for the quarter were $202 million , an increase from $179 million in the December quarter of 2022. Earnings per share for the quarter were $0.99 , compared to $0.96 in the same quarter of the prior year.
Revenues for the nine months ended December 31, 2023 were $588 million , compared to $533 million for the nine months ended December 31, 2022. Earnings per share for the nine months ended December 31, 2023, were $3.27 , compared to $2.73 for the same nine-month period in 2022.
The 2023 calendar year ended with a 34% increase in new business sold with balanced bookings in the Network Solutions and Patient Management business. Customer retention, as measured by Gross Revenue Retention for the year, was 95% , while Net Revenue Retention was 108% . CorVel’s practical application of advanced technology and the corresponding program impact drive improved retention in a market with increased churn.
The Company’s payment integrity services have garnered significant attention from large payors and platform vendors seeking proven solutions to address the meaningful growth in medical care ratios. In addition to enhancing current offerings, CERIS has expanded the teams responsible for launching additional reviews in the market.
The implementation of generative AI initiatives has been proven to boost the efficiency and effectiveness of both the P&C and Commercial Claims teams. These updates have gradually reduced time spent on routine tasks, thus creating more time for essential activities that require critical thinking, directly impacting the user experience and results achieved.
About CorVel
CorVel Corporation applies technology including artificial intelligence, machine learning and natural language processing to enhance the managing of episodes of care and the related health care costs. We partner with employers, third-party administrators, insurance companies and government agencies in managing workers’ compensation and health, auto and liability services. Our diverse suite of solutions combines our integrated technologies with a human touch. CorVel's customized services, delivered locally, are backed by a national team to support clients as well as their customers and patients.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
All statements included in this press release, other than statements or characterizations of historical fact, are forward-looking statements. These forward-looking statements are based on the Company’s current expectations, estimates and projections about the Company, management’s beliefs, and certain assumptions made by the Company, and events beyond the Company’s control, all of which are subject to change. Such forward-looking statements include, but are not limited to, statements relating to our commercial health-focused operation, improved productivity resulting from automation and augmentation across enterprise business systems. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause the Company’s actual results to differ materially and adversely from those expressed in any forward-looking statement, including the risk that the impact of the COVID-19 pandemic on our business, results of operations and financial condition is greater than our initial assessment.
The risks and uncertainties referred to above include but are not limited to factors described in this press release and the Company’s filings with the Securities and Exchange Commission, including but not limited to “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended March 31, 2023 and the Company’s Quarterly Report on Form 10-Q for the quarters ended June 30, 2023 and September 30, 2023. The forward-looking statements in this press release speak only as of the date they are made. The Company undertakes no obligation to revise or update publicly any forward-looking statement for any reason.
CorVel Corporation Quarterly Results – Income Statement Quarters and Nine months Ended December 31, 2023 (unaudited) and December 31, 2022 (unaudited)
Quarter Ended December 31, 2023 December 31, 2022 Revenues $ 202,303,000 $ 179,386,000 Cost of revenues 160,143,000 139,041,000 Gross profit 42,160,000 40,345,000 General and administrative 19,798,000 18,128,000 Income from operations 22,362,000 22,217,000 Income tax provision 5,267,000 5,368,000 Net income $ 17,095,000 $ 16,849,000 Earnings Per Share: Basic $ 1.00 $ 0.98 Diluted $ 0.99 $ 0.96 Weighted Shares Basic 17,106,000 17,245,000 Diluted 17,326,000 17,487,000
Nine Months Ended December 31, 2023 December 31, 2022 Revenues $ 588,078,000 $ 533,119,000 Cost of revenues 459,788,000 416,811,000 Gross profit 128,290,000 116,308,000 General and administrative 55,786,000 54,347,000 Income from operations 72,504,000 61,961,000 Income tax provision 15,706,000 13,765,000 Net income $ 56,798,000 $ 48,196,000 Earnings Per Share: Basic $ 3.32 $ 2.77 Diluted $ 3.27 $ 2.73 Weighted Shares Basic 17,124,000 17,379,000 Diluted 17,352,000 17,647,000
CorVel Corporation Quarterly Results – Condensed Balance Sheet December 31, 2023 (unaudited) and March 31, 2023
December 31, 2023 March 31, 2023 Cash $ 106,994,000 $ 71,329,000 Customer deposits 80,838,000 80,022,000 Accounts receivable, net 92,657,000 81,034,000 Prepaid taxes and expenses 13,903,000 11,385,000 Property, net 85,216,000 82,770,000 Goodwill and other assets 40,304,000 39,662,000 Right-of-use asset, net 25,083,000 27,721,000 Total $ 444,995,000 $ 393,923,000 Accounts and taxes payable $ 15,133,000 $ 15,309,000 Accrued liabilities 173,254,000 152,578,000 Long-term lease liabilities 23,078,000 23,860,000 Paid-in capital 229,788,000 218,703,000 Treasury stock (784,724,000 ) (748,195,000 ) Retained earnings 788,466,000 731,668,000 Total $ 444,995,000 $ 393,923,000
Contact: Melissa Storan Phone: 949-851-1473 www.corvel.com
What were the revenues for the quarter ended December 31, 2023?
The revenues for the quarter ended December 31, 2023, were $202 million.
What were the earnings per share for the quarter?
The earnings per share for the quarter were $0.99.
What was the percentage increase in new business sold for the 2023 calendar year?
The 2023 calendar year ended with a 34% increase in new business sold.
What were the customer retention rates for the year?
Customer retention, as measured by Gross Revenue Retention for the year, was 95%, while Net Revenue Retention was 108%.
