Shares of MultiPlan (NYSE:MPLN) were soaring 19.6% higher as of 11:35 a.m. EDT on Thursday. The big gain came after the healthcare technology solutions provider announced better-than-expected first-quarter results before the market opened.
MultiPlan reported Q1 revenue of $254.9 million, up 1.1% year over year and well above the consensus analysts' estimate of $248.5 million. The company posted net income of $45.9 million, or $0.07 per share. This result handily beat the average analysts' earnings estimate of $0.01 per share. It also reflected significant improvement from the net loss of $2.6 million, or $0.01 per share, in the prior-year period.
The company's performance was especially notable considering that its customers, including health insurers, continued to face headwinds from the COVID-19 pandemic. However, MultiPlan's bottom line was boosted by a $40.4 million change in the fair value of private placement warrants and unvested founder shares.
Probably the best news of all in MultiPlan's Q1 update was its guidance. The company expects Q2 revenue will be between $260 million and $275 million, higher than the consensus analysts' estimate of $249 million. It also looks for full-year revenue of between $1.04 billion and $1.1 billion. The low end of that range is above the average analysts' revenue estimate of $1.03 billion.