NeueHealth(NEUE) - 2024 Q2 - Quarterly Results

Financial Performance - Revenue for Q2 2024 was $225.99 million, a decrease of 24.1% from $297.98 million in Q2 2023[2] - Net loss for Q2 2024 was $57.70 million, compared to a net loss of $88.63 million in Q2 2023, showing an improvement of 34.9%[2] - Adjusted EBITDA for Q2 2024 was $3.96 million, down from $7.80 million in Q2 2023[2] - Total revenue for the three months ended June 30, 2024, was $225,991, a decrease of 24.1% from $297,982 in the same period of 2023[10] - Operating loss for the six months ended June 30, 2024, was $(60,651), an improvement from $(68,286) in the same period of 2023[10] - Net loss attributable to common shareholders for the three months ended June 30, 2024, was $(71,390), compared to $(125,005) in the same period of 2023[10] - Total revenue for the six months ended June 30, 2024, was $943,477 thousand, compared to $1,476,801 thousand for the same period in 2023, reflecting a decline of about 36.0%[13] - The company reported a net loss of $(57,698) thousand for the three months ended June 30, 2024, compared to a net loss of $(88,627) thousand for the same period in 2023, indicating an improvement in financial performance[18] Revenue Projections - For 2024, revenue is expected to be approximately $950 million, with NeueCare revenue projected at $320 million and NeueSolutions revenue at $640 million[5] - Adjusted EBITDA guidance for 2024 is between $15 million and $25 million[5] Assets and Liabilities - Total assets as of June 30, 2024, were $897.27 million, down from $1.23 billion at the end of 2023[9] - Total liabilities decreased to $1.18 billion from $1.48 billion at the end of 2023[9] Consumer Metrics - Value-based consumers served decreased to 364,000 from 373,000 year-over-year[1] - Enablement services lives increased significantly to 113,000 from 31,000 year-over-year[1] - The company aims to reach the high end of its guidance range for consumers served by year-end 2024[3] Operating Expenses - Total operating expenses for the three months ended June 30, 2024, were $263,540, down from $321,396 in the same period of 2023, a reduction of 17.9%[10] - Total operating expenses for the six months ended June 30, 2024, were $328,506 thousand, compared to $476,257 thousand for the same period in 2023, reflecting a decrease of about 31.1%[13] Medical Costs - Medical costs for the three months ended June 30, 2024, were $177,681, a decrease from $245,160 in the same period of 2023, reflecting a reduction of 27.5%[10] - Medical costs for the six months ended June 30, 2024, totaled $319,323 thousand, down from $469,874 thousand in the same period of 2023, a decrease of approximately 32.1%[13] Segment Performance - Capitated revenue increased to $64,005 for the three months ended June 30, 2024, compared to $49,764 in the prior year, representing a growth of 28.6%[10] - Total segment revenue for NeueCare for the three months ended June 30, 2024, was $76,985, an increase from $66,068 in the same period of 2023, representing a growth of 16.4%[12] - NeueCare net income (loss) for the three months ended June 30, 2024, was $(5,902) thousand, compared to $11,031 thousand for the same period in 2023, representing a significant decline[21] - NeueCare Adjusted EBITDA for the six months ended June 30, 2024, was $28,222 thousand, an increase from $23,960 thousand in the same period of 2023, reflecting a growth of approximately 17.5%[21] Restructuring and Impairment - The company incurred restructuring charges of $239 for the three months ended June 30, 2024, down from $1,285 in the same period of 2023[10] - The company recognized $11.4 million in intangible asset impairment expense due to operations classified as held-for-sale for the six months ended June 30, 2024[22] - The restructuring and contract termination costs included severance costs and early lease termination payments as part of workforce reduction efforts[22] Cash Flow - Cash and cash equivalents at the end of the period were $261,458, down from $1,360,441 at the end of the same period in 2023[11] - The company reported a net cash used in operating activities of $(77,148) for the six months ended June 30, 2024, compared to $(724,026) in the same period of 2023[11] Adjusted EBITDA and Non-Cash Expenses - Adjusted EBITDA for the three months ended June 30, 2024, was $(566,000), a significant decrease from $2,996,000 in the prior year[22] - For the six months ended June 30, 2024, NeueSolutions reported an Adjusted EBITDA of $(2,250,000), down from $1,487,000 in the same period of 2023[22] - The non-cash compensation expense related to stock options and restricted stock units was estimated at $2.5 million for both the three and six months ended June 30, 2024[22] Strategic Considerations - The financial results indicate a need for strategic adjustments in response to ongoing operational challenges and market conditions[22] - The company plans to exclude the impact of held-for-sale operations from Adjusted EBITDA starting in the second quarter of 2024[22]