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Change Healthcare reports 18.8% Q1 revenue drop: 5 details

Change Healthcare reported $694.2 million in revenue for the first quarter of the 2021 fiscal year, which ended June 30.

Five things to know:

1. The company reported an 18.8 percent drop in year-over-year quarterly revenue amid the pandemic. Change did not provide guidance for the 2021 fiscal year due to the uncertainty of the pandemic, but did say it expects free cash flow to hit $150 million to $200 million for the year.

2. Change reported a $58.7 million net loss and adjusted net income of $81.2 million for the first quarter. The adjusted EBITDA is $195.9 million.

3. Solutions revenue hit $648.4 million for the first quarter and was negatively impacted by the pandemic. However, new sales volumes across the company’s three segments offset the revenue impact.

4. Change ended the quarter with around $178.4 million of cash and cash equivalents, and around $5 billion in total debt.

5. In the second quarter, Change expects revenue to hit $670 million to $690 million. The company expects the impact of the pandemic to gradually improve throughout the fiscal year as healthcare utilization trends improve.

“While the first quarter reflects the impact of COVID-19, we are proud of our team members who adapted quickly to address the needs of our customers and enabled us to deliver financial results ahead of our expectations and continued to drive new innovations,” said Neil de Crescenzo, president and CEO of Change. “Given Change Healthcare sits at the center of the U.S. healthcare system facilitating more than $1.5 trillion in claims and 15 billion transactions annually, we remain committed to supporting our customers and leading researchers with data, insights, and advanced solutions to ensure access, affordability, and improved outcomes for consumers. Despite the short-term uncertainty related to COVID-19, we believe positive underlying demand across our portfolio combined with continued innovation will enable us to drive increased value for both our customers and shareholders moving forward.”

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