Performant Financial Corporation (NASDAQ:PFMT) Q1 2024 Earnings Call Transcript

Simeon Kohl: Yes. So what I was going to say is for that one, so we’ve had that relationship since 2017 and unique for other government contracts, it is truly a single contract as at the sole national vendor for it. And so if you look at some of the public reporting on the Medicare Trust and on that contract, you’ll see that the recoveries grew a lot in those early years. We really brought our performance way to that relationship. But in the last year or so, it has leveled off a bit in terms of hitting more of a steady state. And there is more volumes and opportunities within that contract that could be unlocked. I think we’ve hit more of a steady state as what’s available today on that contract, which then if you think about that year-over-year becomes a hindrance on a growth rate.

And then the other thing I would just mention is that first contract ran from 2017 to 2022, and the new one took over near the end of Q1 of 2023. And so a new contract sort of new SLAs, new economics, et cetera, at play?

Jacob Stephan: Okay. Got it. Very helpful. I appreciate the color. Good luck, guys.

Simeon Kohl: Thank you.

Operator: We have reached the end of our question-and-answer session. I would like to turn the conference back over to our CEO, Simeon Kohl for closing remarks.

Simeon Kohl: Thank you, operator. I’d like to express our gratitude to everyone who joined on today’s call. I’d also like to thank our nearly 1,000 team members for all their hard work this quarter and our investors for their continued support. We are pleased with our performance in the quarter, and we remain optimistic about our opportunities ahead. So thanks again, and we look forward to providing everyone a progress on during the next quarter’s call. Have a great evening, everyone.

Operator: Thank you. This will conclude today’s conference. You may disconnect your lines at this time, and thank you for your participation.