Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe

Multiplan Shares Rise on Strong YoY Gain in Q1 Net Income and Forward Outlook

Share on Stocktwits


Multiplan Corp. shares traded 17% higher after the company reported Q1/21 net income of $45.9 million, compared to a net loss of $2.6 million in the corresponding quarter last year.

U.S. healthcare industry focused technology and data analytics firm Multiplan Corp. (MPLN:NYSE), which provides end-to-end cost management, payment and revenue integrity solutions, today announced financial results for the first quarter of 2021 ended March 31, 2021.

The company's CEO Mark Tabak commented, "MultiPlan's performance during the first quarter demonstrated the continued strength of our company...Despite the ongoing effects of the COVID-19 pandemic on our business, both revenue and Adjusted EBITDA for the first quarter were in-line with the prior quarter and the expectations we communicated earlier this year, underscoring the recurring nature of our business and positioning us to maintain momentum in 2021. We also continued to make progress on our Extend growth strategy, completing the acquisition of Discovery Health Partners in February and forging ahead with the integrations of HST and Discovery."

The firm indicated that it strives to deliver long-term sustained growth by enhancing its product service offerings to payors and expanding its platform to serve new payor customer channels. The company stated that its current network platform serves about 1.2 million providers and links them with over 700 payor customers handling transactions for greater than 60 million consumers annually. The firm noted that in Q1/21 it processed around $29 billion in claims and helped its clients identify potential medical cost savings of approximately $4.9 billion.

Multiplan stated that in Q1/21 revenues increased by 1.1% to $254.9 million, up from $252.0 million in Q1/20.

The company reported that it earned net income of $45.9 million in Q1/21, compared to a net loss of $2.6 million in Q1/20. During the same corresponding period Multiplan stated that it had adjusted EBITDA of $191.1 million, versus $195.9 million in the prior year's quarter.

The firm provided some forward guidance and advised that for Q2/21 it expects revenues to be $260-275 million and adjusted EBITDA to be in the range of $185-200 million.

The company added that for FY/21 it expects that revenues will range from $1.04-1.10 billion, with FY/21 adjusted EBITDA of $750-$790 million.

MultiPlan stated that it is "committed to helping healthcare payors manage the cost of care, improve their competitiveness and inspire positive change. Leveraging sophisticated technology, data analytics and a team rich with industry experience, MultiPlan interprets clients' needs and customizes innovative solutions that combine its payment and revenue integrity, network-based and analytics-based services." The company stated that its customers include more than 700 healthcare payors operating within the commercial health, government and property and casualty insurance markets.

Multiplan started off the day with a market capitalization of around $4.1 billion with approximately 668.9 million shares outstanding and a short interest of about 3.0%. MPLN shares opened nearly 10% higher today at $6.75 (+$0.60, +9.76%) over yesterday's $6.15 closing price. The stock has traded today between $6.75 and $7.40 per share and is currently trading at $7.19 (+$1.04, +16.91%).


1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
6) This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.

Want to read more about Technology and Healthcare Services investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe