NeueHealth(NEUE) - 2023 Q4 - Annual Results

Financial Performance - NeueHealth reported a revenue of $1.2 billion for the full year 2023, representing a 55% increase year over year[2]. - Total revenue for the year ended December 31, 2023, was $1,160,802, an increase of 54.5% compared to $751,163 in 2022[15]. - Capitated revenue for Q4 2023 reached $60,091, up 78.8% from $33,609 in Q4 2022, while ACO REACH revenue increased to $219,659, a 16.4% rise from $188,652[15]. - The net loss attributable to NeueHealth, Inc. common shareholders for the year was $1,200,599, compared to a loss of $1,495,231 in 2022, reflecting a 19.7% improvement[15]. - For the three months ended December 31, 2023, the net loss was $460,572 thousand, compared to a net loss of $657,792 thousand for the same period in 2022[25]. - Adjusted EBITDA for the same period was $(10,356) thousand, an improvement from $(22,247) thousand in Q4 2022[25]. Revenue Projections - For 2024, NeueHealth expects Enterprise Adjusted EBITDA to be between $15 million and $25 million[9]. - NeueCare Revenue is projected to be between $310 million and $320 million, while NeueSolutions Revenue is expected to be between $690 million and $700 million[9]. Operating Costs and Expenses - The Enterprise Adjusted Operating Cost Ratio is anticipated to be between 15% and 16%[9]. - Total operating expenses for the year were $1,737,798, a significant increase from $1,119,919 in 2022, primarily driven by medical costs of $996,582[15]. - The Operating Cost Ratio decreased to 22.3% in Q4 2023 from 40.9% in Q4 2022, indicating improved cost efficiency[26]. - The Adjusted Operating Cost Ratio for Q4 2023 was 16.1%, down from 26.6% in Q4 2022[26]. Assets and Cash Flow - Cash and cash equivalents decreased to $87,299 thousand as of December 31, 2023, down from $217,006 thousand in 2022[13]. - Total assets decreased to $1,225,480 thousand as of December 31, 2023, compared to $4,665,052 thousand in 2022[13]. - Cash used in operating activities for the year was $(2,726,546), a significant decline from cash provided of $234,466 in 2022[17]. Medical Costs and Liabilities - Medical costs payable increased to $157,903 thousand as of December 31, 2023, from $116,021 thousand in 2022[13]. Segment Performance - Total segment revenue for NeueCare in 2023 was $267,209, compared to $1,192,011 in 2022, indicating a shift in revenue dynamics[19]. - NeueSolutions reported total segment revenue of $899,383 for the year, up from $654,201 in 2022, reflecting growth in ACO REACH revenue[20]. - NeueCare reported a net income of $3,748 thousand for Q4 2023, a significant recovery from a net loss of $(149,985) thousand in Q4 2022[28]. - NeueSolutions experienced a net loss of $(14,632) thousand in Q4 2023, compared to a net loss of $(450) thousand in Q4 2022[29]. - The Adjusted EBITDA for NeueCare was $6,929 thousand for the year ended December 31, 2023, compared to $(146,870) thousand in 2022[28]. - The Adjusted EBITDA for NeueSolutions was $(5,919) thousand for Q4 2023, worsening from $(450) thousand in Q4 2022[29]. Impairments and Transaction Costs - The company reported a goodwill impairment of $401,385 for the year, which was not present in the previous year[15]. - The company incurred $4,363 thousand in transaction costs during Q4 2023, which are not reflective of ongoing business performance[30]. - The company expects to incur costs related to the bankruptcy of an ACO REACH care partner, impacting financial results[30]. Strategic Developments - The company completed the sale of its California Medicare Advantage business, allowing it to focus on care delivery and provider enablement[2].