Bright Health Group(BHG) - 2023 Q4 - Annual Results

Financial Performance - NeueHealth achieved $1.2 billion in revenue for 2023, representing a 55% year-over-year increase[1] - Net loss for the year ended December 31, 2023, was $1,265,808 thousand, an improvement from a net loss of $1,359,880 thousand in 2022[6] - Revenue for the fourth quarter of 2023 was $292,871 thousand, compared to $227,696 thousand in the same period of 2022[9] - Net loss from continuing operations for the fourth quarter was $62,827 thousand, an improvement from $84,671 thousand in the prior year[9] - NeueHealth reported a net loss of $460,572 thousand for the year ended December 31, 2023, compared to a net loss of $657,791 thousand for the previous year, representing a 30% improvement[32] - Net loss for the three months ended December 31, 2023, was $460,572, compared to a loss of $657,792 for the same period in 2022, representing a 30% improvement[42] - Total revenue for the fourth quarter of 2023 was $292,871 thousand, an increase of 28.6% from $227,696 thousand in the same quarter of 2022[32] Consumer and Service Growth - The company served 461,000 consumers, an increase of 294% from the prior year on a comparable basis[8] - Value-based consumers served increased to 355,000 as of December 2023, up from 117,000 in December 2022, marking a growth of approximately 203.4%[19] - ACO REACH revenue for the three months ended December 31, 2023, was $219,659 thousand, up from $188,652 thousand in the same period of 2022, representing an increase of about 16.5%[14] - Capitated revenue for the fourth quarter of 2023 was $60,091 thousand, up 78.7% from $33,609 thousand in the fourth quarter of 2022[33] - ACO REACH revenue increased to $219,659 thousand in Q4 2023, compared to $188,652 thousand in Q4 2022, reflecting a growth of 16.4%[32] Operational Metrics - Adjusted EBITDA for the year is projected to be between $15 million and $25 million for 2024[8] - NeueCare Adjusted EBITDA for the three months ended December 31, 2023, was $6,929 thousand, compared to a loss of $146,870 thousand in the same period of 2022[17] - The operating cost ratio improved to 22.3% for the three months ended December 31, 2023, down from 40.9% in the same period of 2022[16] - Total operating expenses for the year ended December 31, 2023, were $1,737,798 thousand, compared to $1,119,919 thousand in 2022, indicating a significant increase[32] - The company reported an operating loss of $45,935 thousand for Q4 2023, an improvement from an operating loss of $90,906 thousand in Q4 2022[32] Assets and Liabilities - Total current assets decreased to $1,088,927 thousand in December 2023 from $3,570,634 thousand in December 2022, a decline of approximately 69.5%[12] - Total liabilities decreased to $1,480,098 thousand in December 2023 from $3,725,367 thousand in December 2022, a reduction of approximately 60.3%[12] - The accumulated deficit increased to $(4,307,849) thousand in December 2023 from $(3,156,395) thousand in December 2022, reflecting a worsening of approximately 36.4%[12] Future Outlook - The company expects to continue focusing on its care delivery and provider enablement business following the sale of its California Medicare Advantage business[1] - NeueHealth plans to align the interests of providers, payors, and consumers to drive differentiated value in 2024[1] - The company provided guidance for full year 2024, indicating expectations for continued growth and operational improvements[20] - NeueHealth's Enterprise Revenue is projected to be approximately $1 billion for 2024, with NeueSolutions Revenue expected between $690 million and $700 million[30] - The Enterprise Adjusted Operating Cost Ratio is anticipated to be between 15% and 16% for 2024[30] - Enterprise Adjusted EBITDA is expected to range from $15 million to $25 million in 2024[30] Cost Management and Impairments - The company reported a significant impairment of goodwill amounting to $587,535 thousand for the year[6] - Cash used in operating activities for the year was $2,726,546 thousand, compared to cash provided of $234,466 thousand in 2022[6] - Total interest expense increased to $11,206 for the three months ended December 31, 2023, compared to $6,387 in the prior year, reflecting a 75% increase[42] - Share-based compensation expense decreased to $18,081 for the three months ended December 31, 2023, down from $32,450 in the same period of 2022, a reduction of 44%[42] - Depreciation and amortization expenses decreased to $4,024 for the three months ended December 31, 2023, from $5,426 in the same period of 2022, a decline of 26%[42] - Transaction costs for the year ended December 31, 2023, totaled $23,252, compared to $386 in the previous year, indicating a significant increase[42] - The company reported a loss from discontinued operations of $397,745 for the three months ended December 31, 2023, down from $573,120 in the same period of 2022, a decrease of 30%[42] - The company expects ongoing costs related to the bankruptcy of one of its ACO REACH care partners, which will impact future financial performance[45] - The company plans to continue focusing on restructuring efforts and managing costs associated with exiting the Commercial business segment[45]