Livermore, CA-based Performant Financial Corp (NASDAQ:PFMT), a provider of miscellaneous business services, disclosed the results of its Annual Meeting of Stockholders held on June 18, 2024. The meeting saw the election of two Class III directors and the ratification of the company’s independent auditor, among other agenda items.
A total of 65,672,524 shares were represented at the meeting, accounting for 85.38% of shares entitled to vote. Stockholders elected Lisa C. Im and Bradley M. Fluegel as Class III directors to serve until the 2027 Annual Meeting. Im received 53,758,522 votes for and 6,117,226 withheld, while Fluegel garnered 54,685,028 votes for and 5,190,720 withheld. Both elections had 5,796,776 broker non-votes.
The appointment of Baker Tilly US, LLP as Performant Financial’s independent registered public accounting firm for the fiscal year ending December 31, 2024, was ratified with an overwhelming majority of 63,334,303 votes for, 339,844 against, and 1,998,337 abstentions.
Moreover, shareholders approved the amendment and restatement of the company’s Amended and Restated 2012 Stock Incentive Plan, with 56,684,379 votes for, 1,196,522 against, and 1,994,847 abstentions. The adoption of the 2024 Employee Stock Purchase Plan was also approved, receiving 57,286,101 votes for, 594,850 against, and 1,994,797 abstentions.
The outcomes of the meeting, filed with the SEC, reflect shareholder consent on key governance and compensation matters. The approval of the incentive and purchase plans could be seen as support for the company’s strategies to align employee interests with those of shareholders.
Performant Financial’s CEO, Simeon Kohl, signed off on the SEC filing, dated today, June 24, 2024, confirming the accuracy of the reported outcomes.
In other recent news, Performant Financial Corporation reported robust growth in its Q1 2024 earnings, with a significant increase in year-over-year revenue. The company launched 10 new programs with existing clients, expected to contribute $5 million to $6 million in annualized revenue.
Performant's eligibility and clinical audit businesses experienced growth of 7% and 19%, respectively. The company also announced the acquisition of RecordsOne, aimed at enhancing audit workflow processes.
Despite operating expenses of $31.3 million, largely due to record implementations and sales and marketing, Performant's adjusted EBITDA was slightly ahead of expectations at negative $1.2 million. The company maintains its full-year guidance, projecting healthcare revenues between $117 million and $120 million, and total company revenue in the range of $124 million to $129 million.
These recent developments highlight Performant's strategic initiatives aimed at sustaining growth and improving operational efficiency. The company plans to leverage advanced technologies such as machine learning and natural language processing to enhance its selection process, while maintaining a client-centric approach.
InvestingPro Insights
As Performant Financial Corp (NASDAQ:PFMT) continues to navigate its business strategy, recent data from InvestingPro provides a mixed financial outlook. With a market capitalization of $211.62 million and a negative P/E ratio of -28.96, the company's valuation reflects challenges in achieving profitability.
In the last twelve months as of Q1 2024, Performant Financial has seen a modest revenue growth of 6.97%, indicating some positive business momentum. Still, the company's operating income remains in the negative, with an adjusted operating loss of $6.26 million, underscoring the difficulties it faces.
InvestingPro Tips highlight that while Performant Financial operates with a moderate level of debt and liquid assets that exceed short-term obligations, analysts do not expect the company to be profitable this year. Moreover, despite a strong return over the last five years, the company does not pay dividends, which may influence investor decisions, particularly for those seeking income-generating investments.
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