NeueHealth(NEUE) - 2024 Q4 - Annual Results

Consumer Base Growth - In 2024, NeueHealth served 360,000 value-based consumers, an increase from 355,000 in 2023[3] - As of the start of 2025, NeueHealth reported serving 717,000 consumers, marking a 48% increase compared to 2024[5] Financial Performance - Revenue for the fourth quarter of 2024 was $232,638,000, compared to$292,871,000 in the same quarter of 2023, representing a decrease of approximately 20.6%[3] - Total revenue for the year ended December 31, 2024, was $936.657 million, a decrease of 19.3$1,160.802 million in 2023[17] - Net income for the fourth quarter of 2024 was $2,523,000, a significant improvement from a net loss of$460,572,000 in the fourth quarter of 2023[3] - Operating loss for the year ended December 31, 2024, was $107.410 million, compared to a loss of$576.996 million in 2023, showing improvement[17] - Net loss attributable to common shareholders for the year ended December 31, 2024, was $186.330 million, a reduction from$1,200.599 million in 2023[17] Revenue Breakdown - Capitated revenue increased to $259.881 million for the year ended December 31, 2024, up 18.3$219.774 million in 2023[17] - ACO REACH revenue decreased significantly to $625.339 million in 2024, down 30.3$896.504 million in 2023[17] - ACO REACH revenue for Q4 2024 was $154,249,000, down 29.7$219,659,000 in Q4 2023[22] - Total segment revenue decreased to $157,072,000 in Q4 2024 from$220,862,000 in Q4 2023, representing a decline of 29%[22] Cost Management - Medical costs for the year ended December 31, 2024, were $742.140 million, a decrease of 25.6$996.582 million in 2023[17] - Medical costs for Q4 2024 were $149,926,000, down from$231,095,000 in Q4 2023, a decrease of 35%[22] - Total operating expenses decreased to $153,968,000 in Q4 2024 from$235,494,000 in Q4 2023, a reduction of 34.6%[22] Operational Metrics - Adjusted EBITDA for the fourth quarter of 2024 was $5,482,000, compared to a loss of$10,356,000 in the same quarter of 2023[3] - Adjusted EBITDA for Q4 2024 was $5,482,000, a significant improvement from a loss of$10,356,000 in Q4 2023[26] - Operating income for Q4 2024 was $3,104,000, compared to a loss of$14,632,000 in Q4 2023[22] - The Operating Cost Ratio increased to 31.3% in Q4 2024 from 22.3% in Q4 2023[27] - Adjusted Operating Cost Ratio improved to 18.4% in Q4 2024, up from 11.1% in Q4 2023[27] Strategic Initiatives - The company has established a strong foundation for strategic growth in 2025, focusing on expanding its consumer base in new and existing markets[2] - NeueHealth is pursuing a merger agreement with NH Holdings 2025, Inc., which will make the company a wholly owned subsidiary of Parent[8] - The company aims to enhance its technology and services to support independent providers and medical groups in performance-based arrangements[7] - The company has filed a preliminary proxy statement with the SEC regarding the merger transaction, urging investors to review the relevant documents carefully[9] Cash and Liabilities - Cash and cash equivalents at the end of the period decreased to $185.405 million from$375.280 million at the beginning of the year[19] - Total current liabilities decreased to $710.228 million in 2024, down from$1,391.257 million in 2023[17] - Total assets decreased to $544.383 million in 2024 from$1,225.480 million in 2023[17] - The company reported a net cash used in operating activities of $123.217 million for the year ended December 31, 2024, compared to$2,726.546 million in 2023[19] Transaction Costs - The company incurred $16,122,000 in transaction-related costs in Q4 2024, compared to$4,363,000 in Q4 2023[26]