Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 30, 2023 | |
Class of Stock [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-39228 | |
Entity Registrant Name | MULTIPLAN CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 84-3536151 | |
Entity Address, Address Line One | 115 Fifth Avenue | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10003 | |
City Area Code | 212 | |
Local Phone Number | 780-2000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 649,486,255 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001793229 | |
Current Fiscal Year End Date | --12-31 | |
Common Class A | ||
Class of Stock [Line Items] | ||
Title of 12(b) Security | Shares of Class A common stock, $0.0001 par value per share | |
Trading Symbol | MPLN | |
Security Exchange Name | NYSE | |
Warrants | ||
Class of Stock [Line Items] | ||
Title of 12(b) Security | Warrants | |
Trading Symbol | MPLN.WS | |
Security Exchange Name | NYSE |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 101,320 | $ 334,046 |
Restricted cash | 6,294 | 6,513 |
Trade accounts receivable, net | 69,339 | 78,907 |
Prepaid expenses | 16,270 | 22,244 |
Prepaid taxes | 6,575 | 1,351 |
Other current assets, net | 11,867 | 3,676 |
Total current assets | 211,665 | 446,737 |
Property and equipment, net | 255,786 | 232,835 |
Operating lease right-of-use assets | 21,120 | 24,237 |
Goodwill | 3,829,002 | 3,705,199 |
Other intangibles, net | 2,719,177 | 2,940,201 |
Other assets, net | 21,069 | 21,895 |
Total assets | 7,057,819 | 7,371,104 |
Current liabilities: | ||
Accounts payable | 14,402 | 13,295 |
Accrued interest | 76,488 | 57,982 |
Operating lease obligation, short-term | 4,935 | 6,363 |
Current portion of long-term debt | 13,250 | 13,250 |
Accrued compensation | 33,260 | 34,568 |
Accrued legal contingencies | 12,423 | 33,923 |
Other accrued expenses | 16,929 | 16,463 |
Total current liabilities | 171,687 | 175,844 |
Long-term debt | 4,557,978 | 4,741,856 |
Operating lease obligation, long-term | 18,541 | 20,894 |
Private Placement Warrants and Unvested Founder Shares | 2,709 | 2,442 |
Deferred income taxes | 552,220 | 639,498 |
Other liabilities | 5,096 | 28 |
Total liabilities | 5,308,231 | 5,580,562 |
Commitments and contingencies (Note 7) | ||
Shareholders’ equity: | ||
Preferred stock, $0.0001 par value — 10,000,000 shares authorized; no shares issued | 0 | 0 |
Common stock, $0.0001 par value — 1,500,000,000 shares authorized; 667,386,715 and 666,290,344 issued; 649,486,255 and 639,172,938 shares outstanding | 67 | 67 |
Additional paid-in capital | 2,343,340 | 2,330,444 |
Accumulated other comprehensive income | 382 | 0 |
Retained deficit | (467,916) | (347,800) |
Treasury stock — 17,900,460 and 27,117,406 shares | (126,285) | (192,169) |
Total shareholders’ equity | 1,749,588 | 1,790,542 |
Total liabilities and shareholders’ equity | $ 7,057,819 | $ 7,371,104 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in usd per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 1,500,000,000 | 1,500,000,000 |
Common stock, shares issued (in shares) | 667,386,715 | 666,290,344 |
Common stock, shares outstanding (in shares) | 649,486,255 | 639,172,938 |
Treasury stock (in shares) | 17,900,460 | 27,117,406 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of (Loss) Income and Comprehensive (Loss) Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Revenues | $ 242,804 | $ 250,453 | $ 717,389 | $ 838,627 |
Costs of services (exclusive of depreciation and amortization of intangible assets shown below) | 60,949 | 53,012 | 174,806 | 150,061 |
General and administrative expenses | 36,779 | 58,434 | 107,996 | 131,107 |
Depreciation | 19,586 | 17,481 | 56,693 | 51,248 |
Amortization of intangible assets | 85,971 | 85,127 | 256,724 | 255,408 |
Total expenses | 203,285 | 214,054 | 596,219 | 587,824 |
Operating income | 39,519 | 36,399 | 121,170 | 250,803 |
Interest expense | 84,300 | 77,087 | 250,203 | 221,228 |
Interest income | (1,505) | (886) | (7,110) | (944) |
Gain on extinguishment of debt | (10,129) | 0 | (46,907) | 0 |
Gain on investments | 0 | 0 | 0 | (289) |
(Gain) loss on change in fair value of Private Placement Warrants and Unvested Founder Shares | (2,127) | (48,851) | 267 | (56,443) |
Net (loss) income before taxes | (31,020) | 9,049 | (75,283) | 87,251 |
(Benefit) provision for income taxes | (6,875) | (10,687) | (14,977) | 10,025 |
Net (loss) income | $ (24,145) | $ 19,736 | $ (60,306) | $ 77,226 |
Weighted average shares outstanding – Basic (in shares) | 646,443,806 | 639,073,949 | 643,855,782 | 638,859,792 |
Weighted average shares outstanding – Diluted (in shares) | 646,443,806 | 639,850,455 | 643,855,782 | 639,590,184 |
Net (loss) income per share – Basic (in usd per share) | $ (0.04) | $ 0.03 | $ (0.09) | $ 0.12 |
Net (loss) income per share – Diluted (in usd per share) | $ (0.04) | $ 0.03 | $ (0.09) | $ 0.12 |
Unrealized gain on interest rate swap, net of tax | $ 382 | $ 0 | $ 382 | $ 0 |
Comprehensive (loss) income | $ (23,763) | $ 19,736 | $ (59,924) | $ 77,226 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock Issued | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Retained Deficit | Treasury stock |
Balance at beginning of period (in shares) at Dec. 31, 2021 | 665,456,180 | |||||
Balance at beginning of period at Dec. 31, 2021 | $ 2,344,670 | $ 67 | $ 2,311,660 | $ 0 | $ 225,112 | $ (192,169) |
Balance at beginning of period (in shares) at Dec. 31, 2021 | (27,117,406) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
2020 Omnibus Incentive Plan (in shares) | 769,887 | |||||
2020 Omnibus Incentive Plan | 12,954 | 12,954 | ||||
Tax withholding related to vesting of equity awards | (2,376) | (2,376) | ||||
Reclassification of Private Placement Warrants | 4,508 | 4,508 | ||||
Net income (loss) | 77,226 | 77,226 | ||||
Balance at end of period (in shares) at Sep. 30, 2022 | 666,226,067 | |||||
Balance at end of period at Sep. 30, 2022 | 2,436,982 | $ 67 | 2,326,746 | 0 | 302,338 | $ (192,169) |
Balance at end of period (in shares) at Sep. 30, 2022 | (27,117,406) | |||||
Balance at beginning of period (in shares) at Jun. 30, 2022 | 666,176,911 | |||||
Balance at beginning of period at Jun. 30, 2022 | 2,408,853 | $ 67 | 2,318,353 | 0 | 282,602 | $ (192,169) |
Balance at beginning of period (in shares) at Jun. 30, 2022 | (27,117,406) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
2020 Omnibus Incentive Plan (in shares) | 49,156 | |||||
2020 Omnibus Incentive Plan | 4,065 | 4,065 | ||||
Tax withholding related to vesting of equity awards | (180) | (180) | ||||
Reclassification of Private Placement Warrants | 4,508 | 4,508 | ||||
Net income (loss) | 19,736 | 19,736 | ||||
Balance at end of period (in shares) at Sep. 30, 2022 | 666,226,067 | |||||
Balance at end of period at Sep. 30, 2022 | $ 2,436,982 | $ 67 | 2,326,746 | 0 | 302,338 | $ (192,169) |
Balance at end of period (in shares) at Sep. 30, 2022 | (27,117,406) | |||||
Balance at beginning of period (in shares) at Dec. 31, 2022 | 639,172,938 | 666,290,344 | ||||
Balance at beginning of period at Dec. 31, 2022 | $ 1,790,542 | $ 67 | 2,330,444 | 0 | (347,800) | $ (192,169) |
Balance at beginning of period (in shares) at Dec. 31, 2022 | (27,117,406) | (27,117,406) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
2020 Omnibus Incentive Plan (in shares) | 1,096,371 | |||||
2020 Omnibus Incentive Plan | $ 13,357 | 13,357 | ||||
Tax withholding related to vesting of equity awards | (461) | (461) | ||||
Stock consideration paid for BST acquisition (in shares) | 21,588,652 | |||||
Stock consideration paid for BST acquisition | 19,214 | (59,810) | $ 79,024 | |||
Gains arising during the period on Interest rate swaps | 936 | |||||
Reclassification adjustments for gains included in net income (interest expense) | (554) | (554) | ||||
Repurchase of common stock (in shares) | (12,371,706) | |||||
Repurchase of common stock | (13,140) | $ (13,140) | ||||
Net income (loss) | $ (60,306) | (60,306) | ||||
Balance at end of period (in shares) at Sep. 30, 2023 | 649,486,255 | 667,386,715 | ||||
Balance at end of period at Sep. 30, 2023 | $ 1,749,588 | $ 67 | 2,343,340 | 382 | (467,916) | $ (126,285) |
Balance at end of period (in shares) at Sep. 30, 2023 | (17,900,460) | (17,900,460) | ||||
Balance at beginning of period (in shares) at Jun. 30, 2023 | 667,381,255 | |||||
Balance at beginning of period at Jun. 30, 2023 | $ 1,768,520 | $ 67 | 2,338,509 | 0 | (443,771) | $ (126,285) |
Balance at beginning of period (in shares) at Jun. 30, 2023 | (17,900,460) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
2020 Omnibus Incentive Plan (in shares) | 5,460 | |||||
2020 Omnibus Incentive Plan | 4,835 | 4,835 | ||||
Tax withholding related to vesting of equity awards | (4) | (4) | ||||
Gains arising during the period on Interest rate swaps | 936 | 936 | ||||
Reclassification adjustments for gains included in net income (interest expense) | (554) | (554) | ||||
Net income (loss) | $ (24,145) | (24,145) | ||||
Balance at end of period (in shares) at Sep. 30, 2023 | 649,486,255 | 667,386,715 | ||||
Balance at end of period at Sep. 30, 2023 | $ 1,749,588 | $ 67 | $ 2,343,340 | $ 382 | $ (467,916) | $ (126,285) |
Balance at end of period (in shares) at Sep. 30, 2023 | (17,900,460) | (17,900,460) |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Operating activities: | ||||
Net (loss) income | $ (24,145) | $ 19,736 | $ (60,306) | $ 77,226 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation | 19,586 | 17,481 | 56,693 | 51,248 |
Amortization of intangible assets | 85,971 | 85,127 | 256,724 | 255,408 |
Amortization of the right-of-use asset | 4,329 | 4,924 | ||
Stock-based compensation | 13,357 | 11,298 | ||
Deferred income taxes | (87,278) | (138,873) | ||
Amortization of debt issuance costs and discounts | 7,967 | 7,841 | ||
Gain on extinguishment of debt | (10,129) | 0 | (46,907) | 0 |
Gain on equity investments | 0 | (289) | ||
Loss on disposal of property and equipment | 452 | 1,110 | ||
Loss (gain) on change in fair value of Private Placement Warrants and Unvested Founder Shares | (2,127) | (48,851) | 267 | (56,443) |
Changes in assets and liabilities: | ||||
Accounts receivable, net | 11,621 | 27,588 | ||
Prepaid expenses and other assets | (759) | 13,764 | ||
Prepaid taxes | (5,224) | 5,064 | ||
Operating lease obligation | (5,041) | (4,844) | ||
Accounts payable, accrued expenses, legal contingencies and other | (1,877) | 89,653 | ||
Net cash provided by operating activities | 144,018 | 344,675 | ||
Investing activities: | ||||
Purchases of property and equipment | (77,509) | (64,209) | ||
Proceeds from sale of investment | 0 | 289 | ||
Purchase of equity investments | 0 | (15,000) | ||
BST Acquisition, net of cash acquired | (140,940) | 0 | ||
Net cash used in investing activities | (218,449) | (78,920) | ||
Financing activities: | ||||
Repayments of Term Loan B | (9,938) | (9,938) | ||
Taxes paid on settlement of vested share awards | (461) | (2,376) | ||
Purchase of treasury stock | (13,140) | 0 | ||
Net cash used in financing activities | (158,514) | (12,314) | ||
Net (decrease) increase in cash, cash equivalents and restricted cash | (232,945) | 253,441 | ||
Cash, cash equivalents and restricted cash at beginning of period | 340,559 | 188,379 | ||
Cash, cash equivalents and restricted cash at end of period | 107,614 | 441,820 | 107,614 | 441,820 |
Cash and cash equivalents | 101,320 | 439,123 | 101,320 | 439,123 |
Restricted cash | 6,294 | 2,697 | 6,294 | 2,697 |
Cash, cash equivalents and restricted cash at end of period | 107,614 | $ 441,820 | 107,614 | 441,820 |
Noncash investing and financing activities: | ||||
Purchases of property and equipment not yet paid | 7,319 | 6,315 | ||
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | 0 | 2,258 | ||
Supplemental disclosure of cash flow information: | ||||
Interest | (223,640) | (187,834) | ||
Income taxes, net of refunds | (78,582) | (104,693) | ||
5.750% Notes Due 2028 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Gain on extinguishment of debt | $ (10,100) | (46,900) | ||
Financing activities: | ||||
Repurchase of 5.750% Notes | $ (134,975) | $ 0 |
Unaudited Condensed Consolida_6
Unaudited Condensed Consolidated Statements of Cash Flows (Parenthetical) | Sep. 30, 2023 |
5.750% Notes Due 2028 | |
Interest rate, stated percentage (in percent) | 5.75% |
General Information and Basis o
General Information and Basis of Accounting | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
General Information and Basis of Accounting | General Information and Basis of Accounting General Information We are a leading provider of data analytics and technology-enabled solutions designed to bring affordability, efficiency and fairness to the U.S. healthcare industry. We do so through services focused on reducing medical cost and improving billing and payment accuracy for payors of healthcare, which include health insurers, self-insured employers, federal and state government-sponsored health plans (collectively "Payors") and other health plan sponsors (typically through their health plan administrators), and, indirectly, the plan members who are the consumers of healthcare services. Throughout the notes to the unaudited condensed consolidated financial statements, unless otherwise noted, "we," "us," "our", "MultiPlan", and the "Company" and similar terms refer to Polaris and its subsidiaries prior to the consummation of the Transactions, and MultiPlan and its subsidiaries after the Transactions. Basis of Presentation and Consolidation The accompanying unaudited condensed consolidated financial statements of MultiPlan Corporation have been prepared pursuant to the rules and regulations for reporting on Form 10-Q. Certain information and disclosures required by accounting principles generally accepted in the United States (GAAP) for complete consolidated financial statements have been condensed or omitted pursuant to the SEC’s rules and regulations, although management believes that the disclosures are adequate and make the information presented not misleading. The unaudited condensed consolidated financial statements and notes herein should be read in conjunction with the audited consolidated financial statements of MultiPlan Corporation and the notes thereto, included in the Company’s 2022 Annual Report. In the opinion of management, all adjustments, which are of a normal and recurring nature, necessary for a fair statement of the Company’s financial position as of September 30, 2023 and December 31, 2022, and its results of operations and cash flows for the three and nine months ended September 30, 2023 and 2022 have been included. Summary of Significant Accounting Policies Use of Estimates The preparation of the unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting periods. Actual results could differ from the Company's estimates. Estimates are periodically reviewed in light of changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Significant estimates and assumptions reflected in these unaudited condensed consolidated financial statements include, but are not limited to, revenue recognition, recoverability of long-lived assets, goodwill, valuation of Private Placement Warrants and Unvested Founder Shares, valuation of stock-based compensation awards and income taxes. Segment Reporting Operating segments are defined as components of an entity for which separate financial information is available and regularly reviewed by the chief operating decision maker. The Company manages its operations as a single segment for the purposes of assessing performance and making decisions. The Company's singular focus is being a leading value-added provider of data analytics and technology-enabled end-to-end cost management, payment and revenue integrity solutions to the U.S. healthcare industry. In addition, all of the Company's revenues and long-lived assets are attributable to operations in the United States for all periods presented. Revenue Recognition Disaggregation of Revenue The following table presents revenues disaggregated by services and contract types: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2023 2022 2023 2022 Revenues Network-Based Services $ 56,828 $ 58,859 $ 171,171 $ 190,903 PSAV 40,441 43,260 122,679 144,505 PEPM 14,055 13,574 43,384 41,313 Other 2,332 2,025 5,108 5,085 Analytics-Based Services 158,414 163,922 462,275 553,334 PSAV 147,748 158,804 438,508 536,613 PEPM 8,786 5,118 21,008 16,721 Other 1,880 — 2,759 — Payment and Revenue Integrity Services 27,562 27,672 83,943 94,390 PSAV 27,461 27,554 83,635 94,033 PEPM 101 118 308 357 Total Revenues $ 242,804 $ 250,453 $ 717,389 $ 838,627 Percent of PSAV revenues 88.8 % 91.7 % 89.9 % 92.4 % Percent of PEPM revenues 9.5 % 7.5 % 9.0 % 7.0 % Percent of other revenues 1.7 % 0.8 % 1.1 % 0.6 % BST revenues are included in Analytics-Based Services PEPM and Other. Due to the nature of our arrangements, certain estimates may be constrained if it is probable that a significant reversal of revenue will occur when the uncertainty is resolved. For our percentage of savings contracts, portions of revenue that is recognized and collected in a reporting period may be returned or credited in subsequent periods. These credits are the result of Payors not utilizing the discounts that were initially calculated, or differences between the Company’s estimates of savings achieved for a customer and the amounts self-reported in the following month by that same customer. Significant judgment is used in constraining estimates of variable consideration, and is based upon both customer-specific and aggregated factors that include historical billing and adjustment data, customer contractual terms, and performance guarantees. We update our estimates at the end of each reporting period as additional information becomes available. There have not been any material changes to estimates of variable consideration for performance obligations satisfied prior to the three and nine months ended September 30, 2023. The timing of payments from customers from time to time generates contract assets or contract liabilities, however these amounts are immaterial in all periods presented. Derivatives Interest Rate Swap Agreements The Company is exposed to interest rate risk on its floating-rate debt. In September 2023, the Company entered into interest rate swap agreements to effectively convert some of its floating-rate debt to a fixed-rate basis. The principal objective of these contracts is to reduce the variability of the cash flows in interest payments associated with the Company’s floating-rate debt, thus reducing the impact of interest rate changes on future interest payment cash flows. The Company has elected to apply the hedge accounting rules in accordance with authoritative guidance for the contracts entered into during the three months ended September 30, 2023. Changes in the fair value of interest rate swap agreements designated as cash flow hedges are recorded as a component of accumulated other comprehensive income within stockholders’ equity and are subsequently reclassified into interest expense in the same period(s) during which the hedged transaction affects "Earnings". New Accounting Pronouncements Adopted |
Business Combinations
Business Combinations | 9 Months Ended |
Sep. 30, 2023 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations BST Acquisition On May 8, 2023, the Company acquired 100 percent of Benefits Science LLC ("Benefits Science Technologies" or "BST"), a Texas limited liability company offering next generation data and advanced analytics services for $160.1 million, net of acquired cash, consisting of $140.9 million in cash and $19.2 million in Company Class A common stock. This acquisition adds enhanced data and analytics capabilities to our existing services. The BST acquisition was accounted for as a business combination using the acquisition method of accounting. As a result of the BST acquisition and the application of purchase accounting, BST's identifiable assets and liabilities were adjusted to their fair market value as of the acquisition date. For income tax purposes, the acquisition of BST is treated as the acquisition of partnership interests. The resulting intangible assets are amortizable for income tax purposes. Following the consummation of the transactions, the Company entered into separately recognized transactions with key employees and service providers of BST who are employed or engaged by the Company, and are eligible to participate in a long-term incentive and retention program. Pursuant to this incentive and retention program, cash payments will be made to such participant if: (i) subject to limited exceptions, such participant remains employed or engaged by the Company through the date of payment; and (ii) certain threshold, target and maximum annual recurring revenue targets relating to the business of BST are met over three The following table summarizes the consideration transferred to acquire BST and the amounts of identified assets acquired and liabilities assumed at the acquisition date (in thousands): (in thousands) September 30, 2023 Total consideration $ 160,827 Cash and cash equivalents 673 Trade accounts receivable, net 2,053 Prepaid expenses 204 Property and equipment, net 57 Operating lease right-of-use assets 1,129 Other assets 46 Other intangibles, net (1) 35,700 Accounts payable (717) Other accrued expenses (938) Operating lease obligation, short-term (150) Operating lease obligation, long-term (1,033) Total identifiable net assets 37,024 Goodwill $ 123,803 (1) Includes client relationships of $19.2 million with a remaining useful life of 20 years, technology of $15.5 million with a remaining useful life of 7 years, and non-compete agreements of $1.0 million with a remaining useful life of 5 years. The weighted average remaining useful life of the acquired intangibles subject to amortization is 14 years. During the three months ended September 30, 2023 the purchase price was adjusted by $0.4 million to reflect the final adjustments for working capital and indebtedness. The preliminary purchase price allocation for the business combination is subject to adjustment as valuation analyses, primarily related to property and equipment and intangible assets, are finalized. The results of operations and financial condition of BST have been included in the Company's consolidated results from the date of acquisition. In connection with the BST acquisition, the Company incurred transaction costs. The transaction costs have been expensed as incurred and these amounts totaling $0.1 million and $6.9 million for the three and nine months ended September 30, 2023, respectively, are included in general and administrative expenses in the accompanying unaudited condensed consolidated statements of (loss) income and comprehensive (loss) income. Unaudited Pro Forma Financial Information The following represents pro forma effects of the BST acquisition as if it had occurred on January 1, 2022. The pro forma net loss includes: (1) an increase in amortization of intangible assets of $3.0 million related to added amortization expense associated with intangible assets acquired in the acquisition; and (2) the addition of $11.3 million of transaction costs incurred, together with the income tax effects on (1) through (2). These pro forma results are not necessarily indicative of the results that would have occurred if the acquisition occurred on the first day of the period presented, nor does the pro forma financial information purport to present the results of operations for future periods. The following information for the year ended December 31, 2022 is presented in thousands: Revenues $ 1,090,810 Net loss (586,093) |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Company is exposed to interest risk on its floating rate debt. On September 12, 2023, the Company entered into interest rate swap agreements with a total notional value of $800 million to effectively convert a portion of its floating rate debt to a fixed-rate basis. The interest rate swap agreements are effective August 31, 2023 and mature on August 31, 2026. The principal objective of these contracts is to reduce the volatility of the cash flows in interest payments associated with the Company's floating rate debt, thus reducing the impact of interest rate changes on future interest payment cash flows. The Company's interest rate swaps are highly effective at offsetting the changes in cash outflows and therefore designated as cash flow hedging instruments. The Company records derivatives on the balance sheet at fair value, as described in Note 6 Fair Value Methods The following table represents the activity of cash flow hedges included in accumulated other comprehensive income (loss) for the periods presented: (in thousands) Nine Months Ended September 30, 2023 2022 Balance as of January 1 $ — $ — Unrealized gain recognized in other comprehensive income before reclassifications 936 — Reclassifications to interest expense 554 — Balance as of September 30, net of tax $ 382 $ — There was no cash flow hedge activity during the three and nine months ended September 30, 2022. The following table summarizes the amounts recognized with respect to our derivative instruments within the accompanying unaudited condensed consolidated statements of (loss) income and comprehensive (loss) income: (in thousands) Nine Months Ended September 30, Derivatives designated as cash flow hedges Location of Gain Recognized on Derivatives 2023 2022 Interest rate swap contracts Interest expense $ 554 $ — The following table represents the fair value of derivative assets and liabilities within the condensed consolidated balance sheets (in thousands): (in thousands) Fair Value at September 30, 2023 Fair Value at December 31, 2022 Derivatives designated as cash flow hedging instruments: Other current assets, net $ 6,139 $ — Other liabilities 5,082 — |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt As of September 30, 2023, and December 31, 2022, long-term debt consisted of the following: Key Terms September 30, 2023 December 31, 2022 (in thousands) Character Priority Maturity Coupon Term Loan B Term Loan Senior Secured 9/1/2028 (1) Variable (2) $ 1,298,500 $ 1,308,438 5.50% Senior Secured Notes Notes Senior Secured 9/1/2028 5.50% 1,050,000 1,050,000 5.750% Notes Notes Senior Unsecured 11/1/2028 5.750% 979,827 1,163,793 Senior Convertible PIK Notes Convertible Notes (3) Senior Unsecured 10/15/2027 Cash Interest 6.00%, PIK Interest 7.00% 1,300,000 1,300,000 Finance lease obligations, non-current Other Senior Secured 2022-2024 3.38% - 20.31% 19 45 Long-term debt 4,628,346 4,822,276 Less: current portion of long-term debt (13,250) (13,250) Discount - Term Loan B (9,787) (11,129) Discount – Senior Convertible PIK Notes (20,336) (23,600) Less: debt discounts, net (30,123) (34,729) Debt issuance costs - Term Loan B (5,328) (6,060) Debt issuance costs - 5.50% Senior Secured Notes (11,359) (12,608) Debt issuance costs - 5.750% Notes (10,308) (13,773) Less: debt issuance costs, net (26,995) (32,441) Long-term debt, net $ 4,557,978 $ 4,741,856 (1) Beginning December 31, 2021 and quarterly thereafter, we will repay a principal amount of the Term Loan B equal to 0.25% of the initial aggregate principal of $1,325.0 million. These scheduled principal repayments may be reduced by any voluntary or mandatory prepayments made in accordance with the credit agreement. (2) Interest on Term Loan B and Revolver B is calculated, at MPH's option, as (a) Term SOFR (or, with respect to the term loan facility only, 0.50%, whichever is higher), plus the applicable SOFR adjustment, plus the applicable margin, or (b) the highest rate of (1) prime rate, (2) the federal funds effective rate, plus 0.50%, (3) the Term SOFR for an interest period of one month, plus the applicable SOFR adjustment, plus 1.00% and (4) 0.50% for Term Loan B and 1.00% for Revolver B, in each case, plus an applicable margin of 4.25% for Term Loan B and between 3.50% and 4.00% for Revolver B, depending on MPH's first lien debt to consolidated EBITDA ratio. The interest rate in effect for Term Loan B was 9.92% as of September 30, 2023. Prior to July 1, 2023, LIBOR was used to calculate interest on Term Loan B and Revolver B, as described in the New Accounting Pronouncements Adopted section of Note 1 General Information and Basis of Accounting (3) The Senior Convertible PIK Notes are convertible into shares of Class A common stock based on a $13.00 conversion price, subject to customary anti-dilution adjustments. During the three and nine months ended September 30, 2023, the Company purchased and cancelled $46.1 million and $184.0 million, respectively, of the 5.750% Notes. The repurchases resulted in the recognition of gain on extinguishment of $10.1 million and $46.9 million during the three and nine months ended September 30, 2023, respectively, which are included As of September 30, 2023 and December 31, 2022, the Company was in compliance with all of the debt covenants. See our discussion of Debt Covenants and Events of Default provided in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” |
Private Placement Warrants and
Private Placement Warrants and Unvested Founder Shares | 9 Months Ended |
Sep. 30, 2023 | |
Warrants and Rights Note Disclosure [Abstract] | |
Private Placement Warrants and Unvested Founder Shares | Private Placement Warrants and Unvested Founder Shares The Company classifies the Private Placement Warrants and Unvested Founder Shares as a liability on its unaudited condensed consolidated balance sheets as these instruments are precluded from being indexed to our own stock given the terms allow for a settlement that does not meet the scope of the fixed-for-fixed exception in Accounting Standards Codification 815. The Private Placement Warrants and Unvested Founder Shares were initially recorded at fair value on the date of consummation of the Transactions and are subsequently adjusted to fair value at each subsequent reporting date. The fair value of the Unvested Founder Shares and unvested Private Placement Warrants is obtained using a Monte Carlo model and the fair value of the remaining Private Placement Warrants is obtained using a Black Scholes model, together referenced as the "option pricing" model. The Company will continue to adjust the liability for changes in fair value for the founder shares until the earlier of the re-vesting or forfeiture of these instruments. The Company will continue to adjust the liability for changes in fair value for the Private Placement Warrants until the warrant is equity classified. On August 8, 2022, the Sponsor transferred 9,200,000 Private Placement Warrants, including 5,431,302 to individuals not classified as permitted transferees under the warrant agreement and which are, therefore, now redeemable by the Company and exercisable by the holders on the same basis as the Public Warrants. As a result, these 5,431,302 warrants were reclassified from Private Placement Warrants and Unvested Founder Shares to Additional paid-in capital in the unaudited condensed consolidated balance sheets on the transfer date for their fair value of $4.5 million. As of September 30, 2023 and December 31, 2022, the fair value of the Private Placement Warrants and the Unvested Founder Shares were: (in thousands) September 30, 2023 December 31, 2022 Private Placement Warrants $ 1,096 $ 953 Unvested Founder Shares $ 1,613 $ 1,489 For the three months ended September 30, 2023, the change in fair values was primarily due to the change in expected term and the decrease in the price of the Company's Class A common stock over that period. For the nine months ended September 30, 2023, the change in fair value was primarily due to the change in volatility and expected term over that period. The accompanying unaudited condensed consolidated statements of (loss) income and comprehensive (loss) income include losses (gains) related to the change in fair value of the Private Placement Warrants and Unvested Founder Shares for the three and nine months ended September 30, 2023 and 2022 as follows: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2023 2022 2023 2022 Private Placement Warrants $ (763) $ (20,818) $ 143 $ (28,658) Unvested Founder Shares (1,364) (28,033) 124 (27,785) (Gain) loss on change in fair value of Private Placement Warrants and Unvested Founder Shares $ (2,127) $ (48,851) $ 267 $ (56,443) |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value MeasurementsFair value measurements are based on the premise that fair value represents an exit price representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the following three-tier fair value hierarchy has been used in determining the inputs used in measuring fair value: • Level 1 — Quoted prices in active markets for identical assets or liabilities on the reporting date. • Level 2 — Inputs, other than quoted prices in active markets (Level 1), that are observable for the asset or liability, either directly or indirectly. • Level 3 — Unobservable inputs in which there is little or no market data, which require the entity to develop its own assumptions Financial instruments Certain financial instruments which are not measured at fair value on a recurring basis include cash and cash equivalents, accounts receivable and accounts payable, which approximate fair value due to their short-term nature. The financial instrument that potentially subjects the Company to concentrations of credit risk consists primarily of accounts receivable. Cash and cash equivalents as of September 30, 2023 and December 31, 2022 included money market funds of $55.0 million and $250.0 million, respectively, which were valued based on Level 1 measurements using quoted prices in active markets for identical assets. As of September 30, 2023 and December 31, 2022, the Company's carrying amount and fair value of long-term debt consisted of the following: September 30, 2023 December 31, 2022 (in thousands) Carrying Fair Value Carrying Fair Value Liabilities: Term Loan B, net of discount $ 1,288,713 $ 1,217,061 $ 1,297,309 $ 1,113,091 5.50% Senior Secured Notes 1,050,000 892,080 1,050,000 823,200 5.750% Notes 979,827 734,380 1,163,793 775,086 Senior Convertible PIK Notes, net of discount 1,279,664 852,768 1,276,400 841,148 Finance lease obligations 19 19 45 45 Total Liabilities $ 4,598,223 $ 3,696,308 $ 4,787,547 $ 3,552,570 We estimate the fair value of long-term debt using quoted prices in active markets. As such, this is considered a Level 1 fair value measurement. Recurring fair value measurements The Private Placement Warrants and Unvested Founder Shares are measured at fair value on a recurring basis. The fair value of these instruments was determined based on significant inputs not observable in the market which would represent a level 3 measurement within the fair value hierarchy. The Company uses an option pricing simulation to estimate the fair value of these instruments. The Company records derivatives on the balance sheet at fair value, which represents the estimated amounts it would receive or pay upon termination of the derivative prior to the scheduled expiration date. The fair value is derived from model-driven information based on observable Level 2 inputs, such as SOFR forward rates. Non-recurring fair value measurements We also measure certain non-financial assets at fair value on a nonrecurring basis, primarily goodwill and long-lived tangible and intangible assets, in connection with periodic evaluations for potential impairment. We estimate the fair value of these assets using primarily unobservable inputs and, as such, these are considered Level 3 fair value measurements. There were no impairment charges for these assets for the three and nine months ended September 30, 2023 and 2022, and $662.2 million impairment charges for fiscal year 2022. Our non-marketable equity securities using the measurement alternative are adjusted to fair value on a non-recurring basis. Adjustments are made when observable transactions for identical or similar investments of the same issuer occur, or due to impairment. These securities are classified as Level 2 in the fair value hierarchy because we estimate the value based on valuation methods using the observable transaction price at the transaction date. At September 30, 2023, the carrying amount of |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments The Company has certain irrevocable letters of credit used to satisfy real estate lease agreements for three of our offices in lieu of security deposits in the amount of $1.8 million outstanding as of September 30, 2023 and December 31, 2022. The Company also has an irrevocable letter of credit to satisfy the obligations of a subsidiary in the amount of $6.1 million outstanding as of September 30, 2023 and zero as of December 31, 2022. Claims and Litigation The Company is a defendant in various lawsuits and other pending and threatened litigation and other adversarial matters as well as regulatory investigations, all of which have arisen in the ordinary course of business. While the ultimate outcome with respect to such proceedings cannot be predicted with certainty, the Company does not believe they will result, individually or in the aggregate, in a material adverse effect upon our financial condition, results of operations, or cash flows. On March 25, 2021 and April 9, 2021, we were named as a defendant in two putative class action lawsuits relating to the Transactions that were then consolidated under the caption In Re MultiPlan Corp. Stockholders Litigation, Consolidated C.A. No. 2021-0300-LWW (Del.Ch) ("Delaware Stockholder Litigation"). The Delaware Stockholder Litigation asserted breach of fiduciary duty claims and aiding and abetting breach of fiduciary duty claims against the former directors of the Churchill board, the Sponsor, KG and M. Klein (collectively, the "Churchill Defendants") and the Company. The Delaware Stockholder Litigation complaint alleged that the Transactions were a product of an unfair process by Churchill, which was allegedly impacted by conflicts of interest, resulting in mispricing of the Transactions. The complaint sought, among other things, damages, certain equitable relief including the reopening of redemptions, and attorneys’ fees and costs. The Company and the Churchill Defendants filed motions to dismiss the complaint. On January 3, 2022, the Chancery Court issued a ruling granting in part the Company’s motion to dismiss and denying the motion to dismiss filed by the Churchill Defendants. While the Company was dismissed from the Delaware Stockholder Litigation, the consolidated lawsuit proceeded against the Churchill Defendants. We had previously agreed to indemnify certain of the Churchill Defendants with respect to the Delaware Stockholder Litigation. On November 17, 2022, the Company and the parties to the Delaware Stockholder Litigation entered into a settlement agreement to fully and finally resolve the Delaware Stockholder Litigation. In connection with the settlement, the Company and its insurers paid $33.75 million in exchange for a broad release of all claims related to the business combination and ownership of Churchill stock and warrants from February 19, 2020 through October 8, 2020. The settlement was paid pursuant to the Company’s indemnification obligations and from available director and officer insurance policies. On February 28, 2023, the Delaware Court of Chancery held a settlement hearing relating to the Delaware Stockholder Litigation and approved the settlement, with the court ruling becoming final 30 days thereafter. As a result, the Delaware Stockholder Litigation has been resolved. We accrue for costs associated with certain contingencies, including, but not limited to, settlement of legal proceedings, regulatory compliance matters and self-insurance exposures when such costs are probable and reasonably estimable. Such accruals are included in accrued legal contingencies on the accompanying unaudited condensed consolidated balance sheets. In addition, we accrue for legal fees incurred in defense of asserted litigation and regulatory matters as such legal fees are incurred. To the extent it is probable under our existing insurance coverage that we are able to recover losses and legal fees related to contingencies, we record such recoveries concurrently with the accrual of the related loss or legal fees. Significant management judgment is required to estimate the amounts of such contingent liabilities and the related insurance recoveries. In our determination of the probability and ability to estimate contingent liabilities and related insurance recoveries we consider the following: litigation exposure based on currently available information, consultations with external legal counsel, adequacy and applicability of existing insurance coverage and other pertinent facts and circumstances regarding the contingency. Liabilities established to provide for contingencies are adjusted as further information develops, circumstances change, or contingencies are resolved; and such changes are recorded in the accompanying unaudited condensed consolidated statements of (loss) income and comprehensive (loss) income during the period of the change and appropriately reflected in accrued legal contingencies on the accompanying unaudited condensed consolidated balance sheets. |
Shareholder's Equity
Shareholder's Equity | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholder's Equity On February 27, 2023, the Board approved a repurchase program, authorizing, but not obligating, the Company's repurchase of up to an aggregate amount of $100 million of its Class A common stock from time to time through December 31, 2023. As of September 30, 2023, the Company has spent $13.1 million, including commissions, for the repurchase of its Class A common stock as part of this program using cash on hand. On May 8, 2023, the Company issued stock consideration of 21,588,652 shares of Company Class A common stock for the acquisition of BST. |
Basic and Diluted (Loss) Earnin
Basic and Diluted (Loss) Earnings Per Share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Basic and Diluted (Loss) Earnings Per Share | Basic and Diluted (Loss) Earnings Per Share Basic and diluted (loss) earnings per share was calculated as follows: Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except number of shares and per share data) 2023 2022 2023 2022 Numerator for earnings per share calculation Net (loss) income $ (24,145) $ 19,736 $ (60,306) $ 77,226 Denominator for earnings per share calculation Weighted average number of shares outstanding – basic 646,443,806 639,073,949 643,855,782 638,859,792 Effect of stock-based compensation — 776,506 — 730,392 Weighted average number of shares outstanding – diluted 646,443,806 639,850,455 643,855,782 639,590,184 (Loss) Income per share – basic and diluted: Net (loss) income per share – basic $ (0.04) $ 0.03 $ (0.09) $ 0.12 Net (loss) income per share – diluted $ (0.04) $ 0.03 $ (0.09) $ 0.12 As of the three and nine months ended September 30, 2022, we have excluded from the calculation of diluted net (loss) income per share the instruments whose effect would have been anti-dilutive, including (i) 58,500,000 warrants outstanding, (ii) 100,000,000 shares which may be issued upon conversion of the Senior Convertible PIK Notes, and (iii) 12,404,080 Unvested Founder Shares. Additionally, we have excluded from the calculation of diluted net (loss) income per share awards within the 2020 Omnibus Incentive Plan, whose effect would have been anti-dilutive of 12,939,954 and 12,394,828 for the three and nine months ended September 30, 2022, respectively. For the three and nine months ended September 30, 2023, potentially dilutive securities were excluded from the calculation of diluted net loss per share, as their effect would have been anti-dilutive given the Company's losses incurred. Therefore, the weighted average number of shares outstanding used to calculate both basic and diluted net loss per share is the same. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party TransactionsThe accompanying unaudited condensed consolidated statements of (loss) income and comprehensive (loss) income include related party expenses of $78,000 and $233,000 for the three and nine months ended September 30, 2023. These expenses are associated with a software license from Abacus Insights, Inc., as well as customer service software and captive management services from companies controlled by Hellman & Friedman LLC. No related party expenses were incurred during the three and nine months ended September 30, 2022.The accompanying unaudited condensed consolidated balance sheets include prepaid expenses of $112,000 and zero from related parties as of September 30, 2023 and December 31, 2022, respectively. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net (loss) income | $ (24,145) | $ 19,736 | $ (60,306) | $ 77,226 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
General Information and Basis_2
General Information and Basis of Accounting (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation and Consolidation The accompanying unaudited condensed consolidated financial statements of MultiPlan Corporation have been prepared pursuant to the rules and regulations for reporting on Form 10-Q. Certain information and disclosures required by accounting principles generally accepted in the United States (GAAP) for complete consolidated financial statements have been condensed or omitted pursuant to the SEC’s rules and regulations, although management believes that the disclosures are adequate and make the information presented not misleading. The unaudited condensed consolidated financial statements and notes herein should be read in conjunction with the audited consolidated financial statements of MultiPlan Corporation and the notes thereto, included in the Company’s 2022 Annual Report. In the opinion of management, all adjustments, which are of a normal and recurring nature, necessary for a fair statement of the Company’s financial position as of September 30, 2023 and December 31, 2022, and its results of operations and cash flows for the three and nine months ended September 30, 2023 and 2022 have been included. |
Consolidation | Basis of Presentation and Consolidation The accompanying unaudited condensed consolidated financial statements of MultiPlan Corporation have been prepared pursuant to the rules and regulations for reporting on Form 10-Q. Certain information and disclosures required by accounting principles generally accepted in the United States (GAAP) for complete consolidated financial statements have been condensed or omitted pursuant to the SEC’s rules and regulations, although management believes that the disclosures are adequate and make the information presented not misleading. The unaudited condensed consolidated financial statements and notes herein should be read in conjunction with the audited consolidated financial statements of MultiPlan Corporation and the notes thereto, included in the Company’s 2022 Annual Report. In the opinion of management, all adjustments, which are of a normal and recurring nature, necessary for a fair statement of the Company’s financial position as of September 30, 2023 and December 31, 2022, and its results of operations and cash flows for the three and nine months ended September 30, 2023 and 2022 have been included. |
Use of Estimates | Use of EstimatesThe preparation of the unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting periods. Actual results could differ from the Company's estimates. Estimates are periodically reviewed in light of changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Significant estimates and assumptions reflected in these unaudited condensed consolidated financial statements include, but are not limited to, revenue recognition, recoverability of long-lived assets, goodwill, valuation of Private Placement Warrants and Unvested Founder Shares, valuation of stock-based compensation awards and income taxes. |
Segment Reporting | Segment Reporting Operating segments are defined as components of an entity for which separate financial information is available and regularly reviewed by the chief operating decision maker. The Company manages its operations as a single segment for the purposes of assessing performance and making decisions. The Company's singular focus is being a leading value-added provider of data analytics and technology-enabled end-to-end cost management, payment and revenue integrity solutions to the U.S. healthcare industry. In addition, all of the Company's revenues and long-lived assets are attributable to operations in the United States for all periods presented. |
Revenue Recognition | BST revenues are included in Analytics-Based Services PEPM and Other. Due to the nature of our arrangements, certain estimates may be constrained if it is probable that a significant reversal of revenue will occur when the uncertainty is resolved. For our percentage of savings contracts, portions of revenue that is recognized and collected in a reporting period may be returned or credited in subsequent periods. These credits are the result of Payors not utilizing the discounts that were initially calculated, or differences between the Company’s estimates of savings achieved for a customer and the amounts self-reported in the following month by that same customer. Significant judgment is used in constraining estimates of variable consideration, and is based upon both customer-specific and aggregated factors that include historical billing and adjustment data, customer contractual terms, and performance guarantees. We update our estimates at the end of each reporting period as additional information becomes available. There have not been any material changes to estimates of variable consideration for performance obligations satisfied prior to the three and nine months ended September 30, 2023. The timing of payments from customers from time to time generates contract assets or contract liabilities, however these amounts are immaterial in all periods presented. |
Derivatives | Derivatives Interest Rate Swap Agreements The Company is exposed to interest rate risk on its floating-rate debt. In September 2023, the Company entered into interest rate swap agreements to effectively convert some of its floating-rate debt to a fixed-rate basis. The principal objective of these contracts is to reduce the variability of the cash flows in interest payments associated with the Company’s floating-rate debt, thus reducing the impact of interest rate changes on future interest payment cash flows. |
New Accounting Pronouncements Adopted | New Accounting Pronouncements AdoptedASU 2020-04, 2021-01 and 2022-06, Reference Rate Reform (Topic 848) and Reference Rate Reform (Topic 848): Scope. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848), which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. In January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848): Scope, which expanded the scope of Topic 848 to include derivative instruments impacted by discounting transition. In December 2022, the FASB issued ASU 2022-06, which defers the effective date from December 31, 2022 to December 31, 2024. The expedients and exceptions provided by the amendments do not apply to contract modifications and hedging relationships entered into or evaluated after December 31, 2024, except for hedging transactions as of December 31, 2024, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The Company has senior secured credit facilities for which the interest rates were originally indexed on the LIBOR. The Company transitioned from LIBOR to the Secured Overnight Financing Rate ("Term SOFR") and elected the optional expedients under the standard effective as of July 1, 2023. This adoption did not have any impact on our condensed consolidated financial statements. |
General Information and Basis_3
General Information and Basis of Accounting (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Disaggregation of Revenue | The following table presents revenues disaggregated by services and contract types: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2023 2022 2023 2022 Revenues Network-Based Services $ 56,828 $ 58,859 $ 171,171 $ 190,903 PSAV 40,441 43,260 122,679 144,505 PEPM 14,055 13,574 43,384 41,313 Other 2,332 2,025 5,108 5,085 Analytics-Based Services 158,414 163,922 462,275 553,334 PSAV 147,748 158,804 438,508 536,613 PEPM 8,786 5,118 21,008 16,721 Other 1,880 — 2,759 — Payment and Revenue Integrity Services 27,562 27,672 83,943 94,390 PSAV 27,461 27,554 83,635 94,033 PEPM 101 118 308 357 Total Revenues $ 242,804 $ 250,453 $ 717,389 $ 838,627 Percent of PSAV revenues 88.8 % 91.7 % 89.9 % 92.4 % Percent of PEPM revenues 9.5 % 7.5 % 9.0 % 7.0 % Percent of other revenues 1.7 % 0.8 % 1.1 % 0.6 % |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisition | The following table summarizes the consideration transferred to acquire BST and the amounts of identified assets acquired and liabilities assumed at the acquisition date (in thousands): (in thousands) September 30, 2023 Total consideration $ 160,827 Cash and cash equivalents 673 Trade accounts receivable, net 2,053 Prepaid expenses 204 Property and equipment, net 57 Operating lease right-of-use assets 1,129 Other assets 46 Other intangibles, net (1) 35,700 Accounts payable (717) Other accrued expenses (938) Operating lease obligation, short-term (150) Operating lease obligation, long-term (1,033) Total identifiable net assets 37,024 Goodwill $ 123,803 (1) Includes client relationships of $19.2 million with a remaining useful life of 20 years, technology of $15.5 million with a remaining useful life of 7 years, and non-compete agreements of $1.0 million with a remaining useful life of 5 years. The weighted average remaining useful life of the acquired intangibles subject to amortization is 14 years. |
Pro Forma Information | The following information for the year ended December 31, 2022 is presented in thousands: Revenues $ 1,090,810 Net loss (586,093) |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The following table represents the activity of cash flow hedges included in accumulated other comprehensive income (loss) for the periods presented: (in thousands) Nine Months Ended September 30, 2023 2022 Balance as of January 1 $ — $ — Unrealized gain recognized in other comprehensive income before reclassifications 936 — Reclassifications to interest expense 554 — Balance as of September 30, net of tax $ 382 $ — |
Schedule of Derivatives Instruments Included in Statements of (Loss) Income | The following table summarizes the amounts recognized with respect to our derivative instruments within the accompanying unaudited condensed consolidated statements of (loss) income and comprehensive (loss) income: (in thousands) Nine Months Ended September 30, Derivatives designated as cash flow hedges Location of Gain Recognized on Derivatives 2023 2022 Interest rate swap contracts Interest expense $ 554 $ — |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table represents the fair value of derivative assets and liabilities within the condensed consolidated balance sheets (in thousands): (in thousands) Fair Value at September 30, 2023 Fair Value at December 31, 2022 Derivatives designated as cash flow hedging instruments: Other current assets, net $ 6,139 $ — Other liabilities 5,082 — |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | As of September 30, 2023, and December 31, 2022, long-term debt consisted of the following: Key Terms September 30, 2023 December 31, 2022 (in thousands) Character Priority Maturity Coupon Term Loan B Term Loan Senior Secured 9/1/2028 (1) Variable (2) $ 1,298,500 $ 1,308,438 5.50% Senior Secured Notes Notes Senior Secured 9/1/2028 5.50% 1,050,000 1,050,000 5.750% Notes Notes Senior Unsecured 11/1/2028 5.750% 979,827 1,163,793 Senior Convertible PIK Notes Convertible Notes (3) Senior Unsecured 10/15/2027 Cash Interest 6.00%, PIK Interest 7.00% 1,300,000 1,300,000 Finance lease obligations, non-current Other Senior Secured 2022-2024 3.38% - 20.31% 19 45 Long-term debt 4,628,346 4,822,276 Less: current portion of long-term debt (13,250) (13,250) Discount - Term Loan B (9,787) (11,129) Discount – Senior Convertible PIK Notes (20,336) (23,600) Less: debt discounts, net (30,123) (34,729) Debt issuance costs - Term Loan B (5,328) (6,060) Debt issuance costs - 5.50% Senior Secured Notes (11,359) (12,608) Debt issuance costs - 5.750% Notes (10,308) (13,773) Less: debt issuance costs, net (26,995) (32,441) Long-term debt, net $ 4,557,978 $ 4,741,856 (1) Beginning December 31, 2021 and quarterly thereafter, we will repay a principal amount of the Term Loan B equal to 0.25% of the initial aggregate principal of $1,325.0 million. These scheduled principal repayments may be reduced by any voluntary or mandatory prepayments made in accordance with the credit agreement. (2) Interest on Term Loan B and Revolver B is calculated, at MPH's option, as (a) Term SOFR (or, with respect to the term loan facility only, 0.50%, whichever is higher), plus the applicable SOFR adjustment, plus the applicable margin, or (b) the highest rate of (1) prime rate, (2) the federal funds effective rate, plus 0.50%, (3) the Term SOFR for an interest period of one month, plus the applicable SOFR adjustment, plus 1.00% and (4) 0.50% for Term Loan B and 1.00% for Revolver B, in each case, plus an applicable margin of 4.25% for Term Loan B and between 3.50% and 4.00% for Revolver B, depending on MPH's first lien debt to consolidated EBITDA ratio. The interest rate in effect for Term Loan B was 9.92% as of September 30, 2023. Prior to July 1, 2023, LIBOR was used to calculate interest on Term Loan B and Revolver B, as described in the New Accounting Pronouncements Adopted section of Note 1 General Information and Basis of Accounting (3) The Senior Convertible PIK Notes are convertible into shares of Class A common stock based on a $13.00 conversion price, subject to customary anti-dilution adjustments. |
Private Placement Warrants an_2
Private Placement Warrants and Unvested Founder Shares (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Warrants and Rights Note Disclosure [Abstract] | |
Schedule of Fair Value of Private Placement Warrants and Unvested Founder Shares | As of September 30, 2023 and December 31, 2022, the fair value of the Private Placement Warrants and the Unvested Founder Shares were: (in thousands) September 30, 2023 December 31, 2022 Private Placement Warrants $ 1,096 $ 953 Unvested Founder Shares $ 1,613 $ 1,489 Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2023 2022 2023 2022 Private Placement Warrants $ (763) $ (20,818) $ 143 $ (28,658) Unvested Founder Shares (1,364) (28,033) 124 (27,785) (Gain) loss on change in fair value of Private Placement Warrants and Unvested Founder Shares $ (2,127) $ (48,851) $ 267 $ (56,443) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | As of September 30, 2023 and December 31, 2022, the Company's carrying amount and fair value of long-term debt consisted of the following: September 30, 2023 December 31, 2022 (in thousands) Carrying Fair Value Carrying Fair Value Liabilities: Term Loan B, net of discount $ 1,288,713 $ 1,217,061 $ 1,297,309 $ 1,113,091 5.50% Senior Secured Notes 1,050,000 892,080 1,050,000 823,200 5.750% Notes 979,827 734,380 1,163,793 775,086 Senior Convertible PIK Notes, net of discount 1,279,664 852,768 1,276,400 841,148 Finance lease obligations 19 19 45 45 Total Liabilities $ 4,598,223 $ 3,696,308 $ 4,787,547 $ 3,552,570 |
Basic and Diluted (Loss) Earn_2
Basic and Diluted (Loss) Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | Basic and diluted (loss) earnings per share was calculated as follows: Three Months Ended September 30, Nine Months Ended September 30, (in thousands, except number of shares and per share data) 2023 2022 2023 2022 Numerator for earnings per share calculation Net (loss) income $ (24,145) $ 19,736 $ (60,306) $ 77,226 Denominator for earnings per share calculation Weighted average number of shares outstanding – basic 646,443,806 639,073,949 643,855,782 638,859,792 Effect of stock-based compensation — 776,506 — 730,392 Weighted average number of shares outstanding – diluted 646,443,806 639,850,455 643,855,782 639,590,184 (Loss) Income per share – basic and diluted: Net (loss) income per share – basic $ (0.04) $ 0.03 $ (0.09) $ 0.12 Net (loss) income per share – diluted $ (0.04) $ 0.03 $ (0.09) $ 0.12 |
General Information and Basis_4
General Information and Basis of Accounting - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 242,804 | $ 250,453 | $ 717,389 | $ 838,627 |
PSAV | Revenue Benchmark | Contract Type | ||||
Disaggregation of Revenue [Line Items] | ||||
Customer concentration risk percentage | 88.80% | 91.70% | 89.90% | 92.40% |
PEPM | Revenue Benchmark | Contract Type | ||||
Disaggregation of Revenue [Line Items] | ||||
Customer concentration risk percentage | 9.50% | 7.50% | 9% | 7% |
Other | Revenue Benchmark | Contract Type | ||||
Disaggregation of Revenue [Line Items] | ||||
Customer concentration risk percentage | 1.70% | 0.80% | 1.10% | 0.60% |
Network-Based Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 56,828 | $ 58,859 | $ 171,171 | $ 190,903 |
Network-Based Services | PSAV | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 40,441 | 43,260 | 122,679 | 144,505 |
Network-Based Services | PEPM | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 14,055 | 13,574 | 43,384 | 41,313 |
Network-Based Services | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,332 | 2,025 | 5,108 | 5,085 |
Analytics-Based Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 158,414 | 163,922 | 462,275 | 553,334 |
Analytics-Based Services | PSAV | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 147,748 | 158,804 | 438,508 | 536,613 |
Analytics-Based Services | PEPM | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 8,786 | 5,118 | 21,008 | 16,721 |
Analytics-Based Services | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,880 | 0 | 2,759 | 0 |
Payment and Revenue Integrity Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 27,562 | 27,672 | 83,943 | 94,390 |
Payment and Revenue Integrity Services | PSAV | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 27,461 | 27,554 | 83,635 | 94,033 |
Payment and Revenue Integrity Services | PEPM | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 101 | $ 118 | $ 308 | $ 357 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 16 Months Ended | |||
May 08, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | May 08, 2023 | |
Business Acquisition [Line Items] | ||||||
BST Acquisition, net of cash acquired | $ 140,940 | $ 0 | ||||
Net income (loss) | $ (24,145) | $ 19,736 | (60,306) | $ 77,226 | ||
Benefits Science LLC ("BST") | ||||||
Business Acquisition [Line Items] | ||||||
Voting equity interest (in percent) | 100% | 100% | ||||
Purchase price net of cash acquired | $ 160,100 | |||||
BST Acquisition, net of cash acquired | 140,900 | |||||
Equity purchase price | 19,200 | |||||
Potential cash payments if target revenue achieved, minimum | 66,000 | $ 66,000 | ||||
Potential additional cash payments if maximum target revenue is achieved | $ 16,500 | 16,500 | ||||
Working capital adjustment | (400) | |||||
Transaction costs | $ 100 | $ 6,900 | ||||
Benefits Science LLC ("BST") | Acquisition-related Costs | ||||||
Business Acquisition [Line Items] | ||||||
Net income (loss) | (11,300) | |||||
Benefits Science LLC ("BST") | Increase in amortization of intangible assets | ||||||
Business Acquisition [Line Items] | ||||||
Net income (loss) | $ (3,000) | |||||
Benefits Science LLC ("BST") | Minimum | ||||||
Business Acquisition [Line Items] | ||||||
Period revenue targets must be met for cash payment | 3 years | 3 years | ||||
Benefits Science LLC ("BST") | Maximum | ||||||
Business Acquisition [Line Items] | ||||||
Period revenue targets must be met for cash payment | 5 years | 5 years |
Business Combinations - Purchas
Business Combinations - Purchase Price Allocation (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Sep. 30, 2023 | May 08, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Net assets acquired based on fair values: | ||||
Goodwill | $ 3,829,002 | $ 3,829,002 | $ 3,705,199 | |
Benefits Science LLC ("BST") | ||||
Business Acquisition [Line Items] | ||||
Total consideration | 160,827 | |||
Net assets acquired based on fair values: | ||||
Cash and cash equivalents | 673 | 673 | ||
Trade accounts receivable, net | 2,053 | 2,053 | ||
Prepaid expenses | 204 | 204 | ||
Property and equipment, net | 57 | 57 | ||
Operating lease right-of-use assets | 1,129 | 1,129 | ||
Other assets | 46 | 46 | ||
Other intangibles, net | 35,700 | 35,700 | ||
Accounts payable | (717) | (717) | ||
Other accrued expenses | (938) | (938) | ||
Operating lease obligation, short-term | (150) | (150) | ||
Operating lease obligation, long-term | (1,033) | (1,033) | ||
Total identifiable net assets | 37,024 | 37,024 | ||
Goodwill | $ 123,803 | 123,803 | ||
Measurement period adjustments, Goodwill | $ (400) | |||
Weighted average useful life (in years) | 14 years | |||
Benefits Science LLC ("BST") | Client relationships | ||||
Net assets acquired based on fair values: | ||||
Intangible assets acquired | $ 19,200 | |||
Weighted average useful life (in years) | 20 years | |||
Benefits Science LLC ("BST") | Technology | ||||
Net assets acquired based on fair values: | ||||
Intangible assets acquired | $ 15,500 | |||
Weighted average useful life (in years) | 7 years | |||
Benefits Science LLC ("BST") | Non-Compete Agreement | ||||
Net assets acquired based on fair values: | ||||
Intangible assets acquired | $ 1,000 | |||
Weighted average useful life (in years) | 5 years |
Business Combinations - Pro For
Business Combinations - Pro Forma Information (Details) - Benefits Science LLC ("BST") $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |
Revenues | $ 1,090,810 |
Net loss | $ (586,093) |
Derivative Financial Instrume_2
Derivative Financial Instruments - Narrative (Details) $ in Millions | Sep. 12, 2023 USD ($) |
Interest Rate Swap | Designated as Hedging Instrument | Cash Flow Hedging | |
Derivative [Line Items] | |
Notional amount of derivative | $ 800 |
Derivative Financial Instrume_3
Derivative Financial Instruments - AOCI Rollforward (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Derivative, Accumulated Other Comprehensive Income, Cash Flow Hedge [Roll Forward] | ||
Balance at beginning of period | $ 1,790,542 | $ 2,344,670 |
Balance at end of period | 1,749,588 | 2,436,982 |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||
Derivative, Accumulated Other Comprehensive Income, Cash Flow Hedge [Roll Forward] | ||
Balance at beginning of period | 0 | 0 |
Unrealized gain recognized in other comprehensive income before reclassifications | 936 | 0 |
Reclassifications to interest expense | 554 | 0 |
Balance at end of period | $ 382 | $ 0 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Location of Statement of (Loss) Income (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Interest Rate Swap | Designated as Hedging Instrument | Interest Expense | ||
Derivative [Line Items] | ||
Derivative asset | $ 554 | $ 0 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Fair Value of Derivative Assets and Liabilities (Details) - Designated as Hedging Instrument - Cash Flow Hedging - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Other current assets, net | ||
Derivative [Line Items] | ||
Derivative asset | $ 6,139 | $ 0 |
Other liabilities | ||
Derivative [Line Items] | ||
Derivative liability | $ 5,082 | $ 0 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long Term Debt (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 9 Months Ended | |
Dec. 31, 2021 | Sep. 30, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-term debt, net | Long-term debt, net | |
Finance lease obligations, non-current | $ 19 | $ 45 | |
Long-term debt | 4,628,346 | 4,822,276 | |
Less: current portion of long-term debt | (13,250) | (13,250) | |
Less: debt discounts, net | (30,123) | (34,729) | |
Less: debt issuance costs, net | (26,995) | (32,441) | |
Long-term debt, net | $ 4,557,978 | 4,741,856 | |
Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage (in percent) | 3.38% | ||
Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage (in percent) | 20.31% | ||
Term Loan B | Variable Rate Option 1 | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread, base rate | 0.50% | ||
Term Loan B | Variable Rate Option 2 | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 4.25% | ||
Term Loan B | Variable Rate Option 2 | Base Rate | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread, base rate | 0.50% | ||
Term Loan B | Variable Rate Option 2 | Secured Overnight Financing Rate (SOFR) | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 1% | ||
Revolver B | Variable Rate Option 2 | Minimum | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 3.50% | ||
Revolver B | Variable Rate Option 2 | Maximum | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 4% | ||
Revolver B | Variable Rate Option 2 | Fed Funds Effective Rate | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 0.50% | ||
Revolver B | Variable Rate Option 2 | Base Rate | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread, base rate | 1% | ||
Revolver B | Variable Rate Option 2 | Secured Overnight Financing Rate (SOFR) | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 1% | ||
Term loans | Term Loan B | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 1,298,500 | 1,308,438 | |
Less: debt discounts, net | (9,787) | (11,129) | |
Less: debt issuance costs, net | (5,328) | (6,060) | |
Periodic payment, percentage of principal (in percent) | 0.25% | ||
Debt instrument, face amount | $ 1,325,000 | ||
Debt instrument, effective interest rate, percentage (in percent) | 9.92% | ||
Senior notes | 5.50% Senior Secured Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 1,050,000 | 1,050,000 | |
Interest rate, stated percentage (in percent) | 5.50% | ||
Less: debt issuance costs, net | $ (11,359) | (12,608) | |
Senior notes | 5.750% Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 979,827 | 1,163,793 | |
Interest rate, stated percentage (in percent) | 5.75% | ||
Less: debt issuance costs, net | $ (10,308) | (13,773) | |
PIK Note | Senior Convertible PIK Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 1,300,000 | 1,300,000 | |
Cash interest rate (in percent) | 6% | ||
Paid-in-kind interest rate (in percent) | 7% | ||
Less: debt discounts, net | $ (20,336) | $ (23,600) | |
PIK Note | Senior Convertible PIK Notes | Common Class A | |||
Debt Instrument [Line Items] | |||
Debt instrument, convertible, conversion price (in USD per share) | $ 13 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Debt Instrument [Line Items] | ||||
Gain on extinguishment of debt | $ 10,129 | $ 0 | $ 46,907 | $ 0 |
5.750% Notes Due 2028 | ||||
Debt Instrument [Line Items] | ||||
Extinguishment of debt | $ 46,100 | $ 184,000 | ||
Interest rate, stated percentage (in percent) | 5.75% | 5.75% | ||
Gain on extinguishment of debt | $ 10,100 | $ 46,900 |
Private Placement Warrants an_3
Private Placement Warrants and Unvested Founder Shares - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Aug. 08, 2022 | Sep. 30, 2022 | Sep. 30, 2022 | |
Class of Warrant or Right [Line Items] | |||
Adjustment to APIC, warrants transferred | $ 4,508 | $ 4,508 | |
Private Placement Warrants | |||
Class of Warrant or Right [Line Items] | |||
Warrants transferred (in shares) | 9,200,000 | ||
Warrants transferred to non permitted transferees (in shares) | 5,431,302 | ||
Adjustment to APIC, warrants transferred | $ 4,500 |
Private Placement Warrants an_4
Private Placement Warrants and Unvested Founder Shares - Schedule of Warrants and Unvested Founder Shares (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Class of Warrant or Right [Line Items] | |||||
(Gain) loss on change in fair value of Private Placement Warrants and Unvested Founder Shares | $ (2,127) | $ (48,851) | $ 267 | $ (56,443) | |
Private Placement Warrants | |||||
Class of Warrant or Right [Line Items] | |||||
Fair value of warrants or unvested founder shares | 1,096 | 1,096 | $ 953 | ||
(Gain) loss on change in fair value of Private Placement Warrants and Unvested Founder Shares | (763) | (20,818) | 143 | (28,658) | |
Unvested Founder Shares | |||||
Class of Warrant or Right [Line Items] | |||||
Fair value of warrants or unvested founder shares | 1,613 | 1,613 | $ 1,489 | ||
(Gain) loss on change in fair value of Private Placement Warrants and Unvested Founder Shares | $ (1,364) | $ (28,033) | $ 124 | $ (27,785) |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | |||||
Cash and cash equivalents | $ 101,320,000 | $ 439,123,000 | $ 101,320,000 | $ 439,123,000 | $ 334,046,000 |
Asset impairment charges | 0 | $ 0 | 0 | $ 0 | 662,200,000 |
Fair Value, Inputs, Level 2 | |||||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | |||||
Equity securities | 15,000,000 | 15,000,000 | |||
Money Market Funds | Fair Value, Inputs, Level 1 | |||||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | |||||
Cash and cash equivalents | $ 55,000,000 | $ 55,000,000 | $ 250,000,000 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
5.750% Notes Due 2028 | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Interest rate, stated percentage (in percent) | 5.75% | |
Senior notes | 5.50% Senior Secured Notes | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Interest rate, stated percentage (in percent) | 5.50% | |
Senior notes | 5.750% Notes Due 2028 | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Interest rate, stated percentage (in percent) | 5.75% | |
Carrying Amount | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Long-term debt instrument, value | $ 4,598,223 | $ 4,787,547 |
Carrying Amount | Term loans | Term Loan B, net of discount | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Long-term debt instrument, value | 1,288,713 | 1,297,309 |
Carrying Amount | Senior notes | 5.50% Senior Secured Notes | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Long-term debt instrument, value | 1,050,000 | 1,050,000 |
Carrying Amount | Senior notes | 5.750% Notes Due 2028 | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Long-term debt instrument, value | 979,827 | 1,163,793 |
Carrying Amount | Convertible notes, net of discount | Senior Convertible PIK Notes, net of discount | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Long-term debt instrument, value | 1,279,664 | 1,276,400 |
Carrying Amount | Finance lease obligations | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Long-term debt instrument, value | 19 | 45 |
Fair Value | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Long-term debt instrument, value | 3,696,308 | 3,552,570 |
Fair Value | Term loans | Term Loan B, net of discount | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Long-term debt instrument, value | 1,217,061 | 1,113,091 |
Fair Value | Senior notes | 5.50% Senior Secured Notes | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Long-term debt instrument, value | 892,080 | 823,200 |
Fair Value | Senior notes | 5.750% Notes Due 2028 | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Long-term debt instrument, value | 734,380 | 775,086 |
Fair Value | Convertible notes, net of discount | Senior Convertible PIK Notes, net of discount | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Long-term debt instrument, value | 852,768 | 841,148 |
Fair Value | Finance lease obligations | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Long-term debt instrument, value | $ 19 | $ 45 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 1 Months Ended | 9 Months Ended | ||
Nov. 17, 2022 USD ($) | Apr. 09, 2021 lawsuit | Sep. 30, 2023 USD ($) office | Dec. 31, 2022 USD ($) | |
Other Commitments [Line Items] | ||||
Number of offices | office | 3 | |||
Number of class action lawsuits | lawsuit | 2 | |||
Loss contingency paid | $ 33,750,000 | |||
Real Estate Lease Agreements | ||||
Other Commitments [Line Items] | ||||
Letters of credit outstanding | $ 1,800,000 | $ 1,800,000 | ||
Subsidiary Obligations | ||||
Other Commitments [Line Items] | ||||
Letters of credit outstanding | $ 6,100,000 | $ 0 |
Shareholder's Equity (Details)
Shareholder's Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Aug. 04, 2023 | May 08, 2023 | Sep. 30, 2023 | Sep. 30, 2023 | Feb. 27, 2023 | |
Class of Stock [Line Items] | |||||
Repurchase of common stock | $ (13,140) | ||||
Employee Stock | 2023 Employee Stock Purchase Plan | |||||
Class of Stock [Line Items] | |||||
Number of shares authorized (in shares) | 20,000,000 | ||||
ESPP purchase price of common stock (in percent) | 85% | ||||
Number of shares issued (in shares) | 0 | ||||
Treasury stock | |||||
Class of Stock [Line Items] | |||||
Repurchase of common stock | $ (13,140) | ||||
Stock consideration paid for BST acquisition (in shares) | 21,588,652 | ||||
Common Class A | |||||
Class of Stock [Line Items] | |||||
Stock repurchase program, authorized amount | $ 100,000 | ||||
Stock consideration paid for BST acquisition (in shares) | 21,588,652 |
Basic and Diluted (Loss) Earn_3
Basic and Diluted (Loss) Earnings Per Share - Reconciliation of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Numerator for earnings per share calculation | ||||
Net (loss) income | $ (24,145) | $ 19,736 | $ (60,306) | $ 77,226 |
Denominator for earnings per share calculation | ||||
Weighted average number of shares outstanding – basic (in shares) | 646,443,806 | 639,073,949 | 643,855,782 | 638,859,792 |
Effect of stock-based compensation (in shares) | 0 | 776,506 | 0 | 730,392 |
Weighted average number of shares outstanding – diluted (in shares) | 646,443,806 | 639,850,455 | 643,855,782 | 639,590,184 |
(Loss) Income per share – basic and diluted: | ||||
Net (loss) income per share – Basic (in usd per share) | $ (0.04) | $ 0.03 | $ (0.09) | $ 0.12 |
Net (loss) income per share – Diluted (in usd per share) | $ (0.04) | $ 0.03 | $ (0.09) | $ 0.12 |
Basic and Diluted (Loss) Earn_4
Basic and Diluted (Loss) Earnings Per Share - Additional Information (Details) - shares | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 | Sep. 30, 2022 | |
Warrants Outstanding | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from the computation of earnings per share (in shares) | 58,500,000 | 58,500,000 |
Convertible PIK Notes | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from the computation of earnings per share (in shares) | 100,000,000 | 100,000,000 |
Unvested Founder Shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from the computation of earnings per share (in shares) | 12,404,080 | 12,404,080 |
Unvested Incentive Plan Awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from the computation of earnings per share (in shares) | 12,939,954 | 12,394,828 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | |||||
Related party expense | $ 0 | $ 0 | |||
Prepaid expenses | $ 16,270,000 | $ 16,270,000 | $ 22,244,000 | ||
Software License Expense | |||||
Related Party Transaction [Line Items] | |||||
Related party expense | 78,000 | 233,000 | |||
Related Party | |||||
Related Party Transaction [Line Items] | |||||
Prepaid expenses | $ 112,000 | $ 112,000 | $ 0 |