MultiPlan Lowers 2024 Outlook, Analysts Expect Revenue Dip and Widened Losses

MultiPlan

Following its last quarterly earnings update, MultiPlan Corp. (NYSE: MPLN) revised its full-year 2024 revenue guidance downwards due to sluggish growth in its core business and slower-than-anticipated new product sales. The healthcare cost management firm, which provides data and technology solutions to navigate healthcare expenses, continues to grapple with revenue declines and widening losses.

MultiPlan is projected to see 2024 revenues decline by -3% year-over-year in fiscal 2024 an improvement from the -11% drop in 2023. However, net losses are projected to widen significantly to $1.7 billion, compared with $92 million in the prior year.

Within its key business segments, analytics-based services—accounting for 68% of total revenue—is forecast to grow +2% year-on-year, reversing a -12% decline in 2023. By contrast, network-based services revenue (20% of revenue) is expected to contract by -16%, while payment and revenue integrity services revenue is projected to decline by -2%.

Further compounding MultiPlan’s challenges are ongoing legal battles and intensified media scrutiny, which have weighed on its reputation and business operations.