Bright Health Group(BHG) - 2024 Q4 - Annual Results

Financial Performance - NeueHealth reported revenue of $232,638,000 for Q4 2024, a decrease from $292,871,000 in Q4 2023, and full-year revenue of $936,657,000, down from $1,160,802,000 in 2023[3]. - The company achieved a net income of $2,523,000 in Q4 2024, compared to a net loss of $460,572,000 in Q4 2023, and a full-year net loss of $99,717,000, improved from a loss of $1,265,808,000 in 2023[3]. - Adjusted EBITDA for Q4 2024 was $5,482,000, a significant improvement from a loss of $10,356,000 in Q4 2023, with full-year adjusted EBITDA at $22,496,000, compared to a loss of $8,480,000 in 2023[3]. - Total revenue for the year ended December 31, 2024, was $936.657 million, a decrease of 19.3% from $1,160.802 million in 2023[17]. - Capitated revenue increased to $259.881 million for the year ended December 31, 2024, up 18.3% from $219.774 million in 2023[17]. - ACO REACH revenue decreased significantly to $625.339 million in 2024, down 30.3% from $896.504 million in 2023[17]. - 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]. - 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, reflecting a significant reduction in cash burn[19]. - Total assets decreased to $544.383 million in 2024 from $1,225.480 million in 2023, indicating a substantial reduction in the asset base[17]. Consumer Growth and Market Strategy - The number of value-based consumers served increased to 360,000 in 2024, up from 355,000 in 2023, while enablement services lives rose to 123,000 from 106,000[3]. - The company is experiencing significant growth in 2025, serving 717,000 consumers, representing a 48% increase compared to 2024[5]. - NeueHealth is focused on strategic growth in 2025, aiming to serve more consumers in new and existing markets and strengthen relationships with payors and providers[2]. - NeueHealth's value-driven, consumer-centric care model is expected to continue transforming the healthcare experience and maximizing value across the healthcare system[7]. Operational Efficiency - Total current liabilities decreased to $710.228 million in 2024, down from $1,391.257 million in 2023, indicating improved liquidity[17]. - Medical costs for the year ended December 31, 2024, were $742.140 million, a decrease of 25.6% from $996.582 million in 2023[17]. - Operating income for Q4 2024 was $3,104,000, a significant improvement compared to a loss of $14,632,000 in Q4 2023[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]. - Medical costs for Q4 2024 were $149,926,000, down from $231,095,000 in Q4 2023, a decrease of 35%[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 from 11.1% in Q4 2023[27]. Merger and Acquisition Activity - The company entered into a Merger Agreement with NH Holdings 2025, Inc., which will make NeueHealth a wholly owned subsidiary of Parent, controlled by private investment funds affiliated with New Enterprise Associates, Inc.[8]. - The company has filed a preliminary proxy statement with the SEC regarding the merger transaction, urging investors to read the relevant documents carefully[9]. - The company incurred $16,122,000 in transaction-related costs in Q4 2024, compared to $4,363,000 in Q4 2023[26].