Core Insights - Alignment Healthcare (ALHC) reported a revenue of $701.24 million for Q4 2024, marking a year-over-year increase of 50.7% [1] - The company's EPS for the same period was -$0.16, an improvement from -$0.25 a year ago [1] - The reported revenue exceeded the Zacks Consensus Estimate of $677.04 million by 3.58%, and the EPS also surpassed the consensus estimate of -$0.18 by 11.11% [1] Financial Performance Metrics - Medical Benefit Ratio was reported at 87.5%, better than the five-analyst average estimate of 89.4% [4] - Health Plan Membership at the end of the quarter was 189,100, exceeding the average estimate of 185,005 from four analysts [4] - Revenues from Other sources were $9.46 million, surpassing the estimated $7.48 million, reflecting a 48.3% increase compared to the previous year [4] - Earned Premiums revenue was $691.79 million, compared to the estimated $668.26 million, also showing a 50.7% increase year-over-year [4] Stock Performance - Over the past month, shares of Alignment Healthcare have declined by 14.1%, while the Zacks S&P 500 composite decreased by 2.2% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Company Performance - Alignment Healthcare reported a quarterly loss of $0.16 per share, better than the Zacks Consensus Estimate of a loss of $0.18, and an improvement from a loss of $0.25 per share a year ago, representing an earnings surprise of 11.11% [1] - The company posted revenues of $701.24 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 3.58%, and showing significant growth from year-ago revenues of $465.39 million [2] - Over the last four quarters, Alignment Healthcare has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2] Stock Outlook - The immediate price movement of Alignment Healthcare's stock will largely depend on management's commentary during the earnings call and future earnings expectations [3] - The stock has gained approximately 17% since the beginning of the year, outperforming the S&P 500's gain of 1.3% [3] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is -$0.20 on revenues of $848.58 million, and for the current fiscal year, it is -$0.47 on revenues of $3.44 billion [7] - The estimate revisions trend for Alignment Healthcare is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Medical Services industry, to which Alignment Healthcare belongs, is currently ranked in the top 34% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Performance - The company reported a net loss, highlighting challenges in achieving profitability amid increasing expenses[12]. - The net loss attributable to Alignment Healthcare, Inc. for 2024 was $128.0 million, compared to a net loss of $148.0 million in 2023, indicating a 13.5% improvement[458]. - The net loss for 2024 was $128,071, a reduction from a net loss of $148,173 in 2023, indicating an improvement in financial performance[473]. - The total stockholders' equity decreased to $100.9 million in 2024 from $158.1 million in 2023, a decline of 36.2%[456]. - The company recorded a net income tax expense of $21 for the year ended December 31, 2024, compared to a benefit of $(22) in 2023[564]. - The equity in loss of subsidiary was $125,892 in 2024, compared to $147,529 in 2023, showing a decrease in losses from subsidiaries[616]. Revenue and Expenses - Total revenues for the year ended December 31, 2024, were $2,703.6 million, representing a 48.3% increase from $1,823.6 million in 2023[458]. - Medical expenses for 2024 amounted to $2,406.9 million, up 48.2% from $1,622.6 million in 2023[458]. - Premium revenue for 2024 was $2,666,813, a substantial increase from $1,668,131 in 2023, demonstrating strong growth in the Medicare Advantage sector[476]. - Capitation revenue for 2024 was $5,118, a decrease from $132,802 in 2023, indicating a shift in revenue sources[476]. - The total incurred medical expenses for the current year reached $832,819 million in 2024, significantly higher than the $492,315 million incurred in 2023[551]. - Medical expenses payable rose to $289.8 million in 2024, up 40.9% from $205.4 million in 2023[456]. Assets and Liabilities - Total current assets increased to $661.6 million in 2024 from $483.5 million in 2023, reflecting a growth of 36.8%[456]. - The company's total assets reached $782.1 million as of December 31, 2024, compared to $591.9 million in 2023, marking a 32.2% increase[456]. - Long-term debt increased significantly to $321.4 million in 2024 from $161.8 million in 2023, representing a 98.7% rise[456]. - The total liabilities rose to $325,182 in 2024 from $1,319 in 2023, reflecting a substantial increase due to new debt issuance[612]. - Cash and cash equivalents at the end of 2024 were $432,859, compared to $204,904 at the end of 2023, reflecting a significant increase in liquidity[465]. Investments and Financial Instruments - As of December 31, 2024, the company held $71.1 million in U.S. Treasury bills classified as held to maturity[436]. - The carrying value of U.S. Treasury bills decreased from $117,337 million in 2023 to $71,120 million in 2024, reflecting a significant reduction in investments[538]. - The company had $469,373 million in excess of FDIC-insured limits as of December 31, 2024, compared to $316,977 million in 2023, indicating increased cash reserves[520]. - As of December 31, 2024, the company had restricted investments in U.S. Treasury bills amounting to $1,033 million and certificates of deposits totaling $2,321 million[542]. Operational Efficiency and Management - The company is focused on maintaining high ratings on the Five Star Quality Rating System to enhance its competitive position[12]. - The company entered into a management services and risk management agreement with a third-party healthcare company in 2024, which is expected to enhance operational efficiency[481]. - The company’s management team has limited experience managing a public company, which may impact future performance[12]. Regulatory and Compliance - Medicare Advantage Plans in California, North Carolina, Nevada, Arizona, Texas, and Florida are subject to a minimum annual medical loss ratio (MLR) of 85%[486]. - The company is required to remit a portion of premiums back to the federal government if the minimum MLR is not met, although amounts payable were immaterial as of December 31, 2024[486]. - The Inflation Reduction Act is expected to have an immaterial impact on the company's consolidated financial statements at December 31, 2024, with provisions set to take effect over the next seven years[511]. Shareholder and Equity Information - The weighted-average common shares outstanding increased to 190.8 million in 2024 from 186.2 million in 2023, an increase of 2.8%[458]. - As of December 31, 2024, there were 8,762,481 stock options outstanding with a weighted-average exercise price of $16.97[571]. - The company granted 6,994,001 restricted stock units (RSUs) in 2024, with unvested and outstanding RSUs totaling 13,344,685 at year-end[575]. - Total equity-based compensation expense was $71,132, an increase from $66,835 in 2023[580]. Legal and Contingent Liabilities - The company accrued a potential liability of $913 related to a class action lawsuit as of December 31, 2024[599].

Financial Performance - Total revenue for Q4 2024 was $701.2 million, up 50.7% year-over-year, while full-year revenue was $2,703.6 million, up 48.3% year-over-year[8] - Adjusted EBITDA for Q4 2024 was $1.4 million, with a net loss of $(31.1) million, compared to a net loss of $(47.2) million in Q4 2023[8] - Adjusted gross profit for Q4 2024 was $87.9 million, compared to $49.2 million in Q4 2023[8] - Total revenues for 2024 reached $2,703,561, a 48.3% increase from $1,823,630 in 2023[17] - Earned premiums increased to $2,671,931 in 2024, up 48.3% from $1,800,933 in 2023[17] - Total expenses for 2024 were $2,805,116, a 43.8% increase compared to $1,951,447 in 2023[17] - Net loss for 2024 was $128,071, an improvement from a net loss of $148,173 in 2023[19] - Net loss per share attributable to Alignment Healthcare, Inc. improved to $(0.67) in 2024 from $(0.79) in 2023[17] Membership Growth - Health plan membership reached 189,100 as of December 31, 2024, representing a 58.6% increase year-over-year[7] - The midpoint of 2025 health plan membership guidance was raised by 2,000 due to strong open enrollment momentum[7] Cash and Assets - Cash and cash equivalents increased to $432.9 million as of December 31, 2024, up from $202.9 million in 2023[16] - Cash and cash equivalents at the end of 2024 were $432,859, compared to $204,954 at the end of 2023[20] - Total assets grew to $782.1 million as of December 31, 2024, compared to $591.9 million in 2023[16] Debt and Financial Position - Long-term debt increased to $321.4 million as of December 31, 2024, up from $161.8 million in 2023[16] - Net cash provided by operating activities was $34,770 in 2024, a recovery from a cash used of $(59,187) in 2023[20] Future Guidance - The company introduced 2025 revenue guidance of $3.72 billion to $3.78 billion, indicating a year-over-year growth of 37.6% to 39.6%[7] Operational Metrics - Medical benefits ratio based on adjusted gross profit was 87.5% for Q4 2024, compared to 88.8% for the full year 2024[8] - Adjusted EBITDA is used by management to assess operating performance, although specific figures were not disclosed in the provided content[23] - Medical Benefits Ratio (MBR) is calculated by dividing total medical expenses by total revenues, although specific MBR figures were not provided[25] Strategic Initiatives - The company plans to continue evaluating acquisition opportunities as part of its business strategy[22]

Core Insights - Alignment Healthcare, Inc. reported strong financial results for Q4 and full year 2024, highlighting a significant growth in health plan membership and revenue [1][6][7] - The company emphasizes its strategy of providing more care to improve outcomes and manage medical expenses, which has led to positive momentum entering 2025 [2][6] Financial Highlights Fourth Quarter 2024 - Health plan membership reached approximately 189,100, a 58.6% increase year-over-year [6][7] - Total revenue for Q4 was $701.2 million, up 50.7% year-over-year, with revenue excluding ACO REACH at $700.7 million, reflecting a 61.4% increase [6][7] - Adjusted gross profit was $87.9 million, with a loss from operations of $(22.5) million [7][8] - Adjusted EBITDA for Q4 was $1.4 million, with a net loss of $(31.1) million [7][8] Full Year 2024 - Total revenue for the year was $2,703.6 million, a 48.3% increase year-over-year, with revenue excluding ACO REACH at $2,702.6 million, up 59.0% [6][7] - Adjusted gross profit for the year was $302.6 million, with a loss from operations of $(101.6) million [7][8] - The company achieved its first full year of positive adjusted EBITDA as a public company [6] Guidance for 2025 - The midpoint of 2025 health plan membership guidance was raised by 2,000, reflecting strong open enrollment momentum [6] - Revenue guidance for 2025 is projected between $3.72 billion and $3.78 billion, indicating a year-over-year growth of 37.6%-39.6% [6] - Adjusted EBITDA for 2025 is expected to be between $35 million and $60 million [6] Operational Metrics - The medical benefits ratio based on adjusted gross profit was 87.5% for Q4 and 88.8% for the full year [7][8] - The company reported a significant increase in cash and cash equivalents, totaling $432.9 million as of December 31, 2024, compared to $202.9 million in 2023 [16][21]

Core Insights - Alignment Healthcare (ALHC) is projected to report a quarterly loss of $0.18 per share, marking a 28% increase compared to the same period last year [1] - Analysts forecast revenues of $677.04 million, reflecting a year-over-year increase of 45.5% [1] - There has been no revision in the consensus EPS estimate for the quarter over the past 30 days, indicating stability in analysts' projections [1] Revenue Estimates - The average estimate for 'Revenues- Other' is $7.48 million, showing a year-over-year change of +17.2% [3] - 'Revenues- Earned premiums' is expected to reach $668.26 million, indicating a change of +45.6% from the prior-year quarter [4] Key Metrics - The 'Medical Benefit Ratio' is projected to be 89.4%, consistent with the year-ago figure [4] - Analysts estimate that 'Health Plan Membership - Ending' will reach 185,005, compared to 119,200 in the previous year [4] Stock Performance - Shares of Alignment Healthcare have experienced a -12% return over the past month, in contrast to the Zacks S&P 500 composite's -1.8% change [5] - The company holds a Zacks Rank 4 (Sell), suggesting it may underperform the overall market in the near future [5]

Financial Results Announcement - Alignment Healthcare, Inc. will release its fourth quarter and full-year 2024 financial results on February 27, 2025, after market close [1] - A conference call to review the financial results will be held at 5 p.m. EST on the same day [1] Conference Call Details - A live audio webcast of the conference call will be available online [2] - Participants can access the webcast at a specified link, and a replay will be available for on-demand listening shortly after the call [2] Company Overview - Alignment Health focuses on senior care, aiming to empower members to age well and live vibrant lives [3] - The company provides high-quality, low-cost care for its Medicare Advantage members through partnerships with local providers and a customized care model [3] - Alignment Health emphasizes its core values of serving seniors and expanding its national footprint while maintaining a mission-driven approach [3]

Core Insights - Most publicly traded US health insurers are expected to report sequential revenue and earnings declines for the fourth quarter of 2024 according to an S&P Global Market Intelligence analysis of sell-side analyst forecasts [1] Group 1 - The analysis indicates a negative outlook for the health insurance sector in the upcoming quarter [1] - A total of nine health insurers are included in the forecast analysis [1]

Core Insights - Alignment Healthcare, Inc. reported a health plan membership of approximately 209,900 as of January 1, 2025, reflecting a 35% year-over-year increase compared to January 1, 2024 [1][6] - The company anticipates health plan membership to reach between 225,000 and 231,000 by December 31, 2025, indicating a growth of approximately 22% to 25% relative to the midpoint of its year-end 2024 membership guidance [1][2] - The company reaffirmed its full-year 2024 guidance on health plan membership, revenue, adjusted gross profit, and adjusted EBITDA, with confidence in achieving consensus adjusted EBITDA of approximately $40 million in 2025 [2][6] Leadership and Operational Excellence - Dawn Maroney has been promoted to President of Alignment Healthcare, Inc., effective immediately, to oversee day-to-day operations and enhance member experiences [3][4] - The CEO emphasized that Maroney's leadership has been crucial in achieving record enrollment growth and fostering strong partnerships [3][4] Recognition and Ratings - 98% of health plan members are enrolled in plans rated 4 stars or above for 2025, with the company retaining a 5-star rating from CMS for its North Carolina and Nevada HMO contract for three consecutive years [7] - The California HMO has achieved a 4-star rating for eight consecutive years, and the company has been recognized as a Newsweek World's Most Trustworthy Company in 2024 [7] Financial Metrics - Adjusted EBITDA is defined as net loss before interest expense, income taxes, depreciation and amortization expense, and other specific costs, with the company unable to reconcile estimated ranges for adjusted EBITDA to net loss without unreasonable efforts [9]

Group 1 - Alignment Healthcare, Inc. will present at the 43rd Annual J.P. Morgan Healthcare Conference on January 15, 2024, at 11:15 a.m. PST [1] - A webcast and replay of the presentation will be available on Alignment's investor relations website [3] - Alignment Health focuses on empowering seniors to age well and live vibrant lives through high-quality, low-cost care for Medicare Advantage members [4] Group 2 - The company partners with trusted local providers to deliver coordinated care using its customized care model and technology, AVA® [4] - Alignment Healthcare is based in California and is expanding its national footprint while maintaining its core values of serving seniors [4]