Cotiviti Holdings, Inc.

No Longer Reporting

The company has not filed an annual or quarterly report since its Q2 FY2018 10-Q, filed Jul 26, 2018. Its latest SEC filing is a 15-12B from Sep 6, 2018.

The sections below describe the company as of the FY2017 annual report.

What Did They Do?

Checks health insurance claims before and after payment to find billing and reimbursement errors, and reviews retailers’ supplier transactions for missed allowances and other savings.

How Did They Make Money?

Most fees are based on identified savings, and Cotiviti earns them when clients take credits, receive refunds, or accept payment reductions; fixed-fee contracts are spread across the contract term.

FY2017 revenue by reportable segment revenue

Segment	Share	Revenue
Healthcare	89% FY2014: 82%
Global Retail and Other	11% FY2014: 18%

Who Were Their Customers?

Healthcare payers and retailers are clients; Cotiviti’s sales and client services teams sell solutions directly to them and manage those relationships.

Did Revenues Turn Into Profits?

Yes. It kept 20 cents of every revenue dollar as net income in FY2017 and turned 20 cents into free cash flow.

Operating income, FY2017

24% of revenue

▲ +21% vs FY2016 ($134M, 21%)

Net income, FY2017

20% of revenue

▲ +183% vs FY2016 ($48.9M, 8%)

Free cash flow, FY2017

20% of revenue

▼ −10% vs FY2016 ($154M, 25%)

How Were They Changing?

Since the FY2017 annual report

Latest quarter: Q2 FY2018, the three months to Jun 30, 2018

Revenue: ▲ +6%; vs $167.6M in Q2 FY2017

Healthcare share of revenue vs 90.4% in Q2 FY2017

Aug 27, 2018 Verscend completed its acquisition of Cotiviti Cotiviti became a wholly owned subsidiary of Verscend, and trading in its shares was suspended on the NYSE.

Revenue over time

Healthcare Global Retail and Other

$1B$500M$0

FY2014 FY2015 FY2016 FY2017

Who Did They Compete With?

Competes with Optum, Verscend Technologies, Change Healthcare, HMS Holdings, The Rawlings Group, Equian, Zelis Healthcare, and PRGX Global

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