Bright Health Group(BHG) - 2024 Q1 - Quarterly Results

Financial Performance - NeueHealth reported Q1 2024 revenue of $245.1 million, with a net income from continuing operations of $5.7 million and adjusted EBITDA of $2.5 million, indicating a solid foundation for profitable growth [2]. - For the full year 2024, NeueHealth expects total revenue to be approximately $1 billion, with NeueCare revenue projected between $310 million and $320 million, and NeueSolutions revenue expected between $690 million and $700 million [4]. - The company maintains an expectation for adjusted EBITDA in 2024 to be between $15 million and $25 million [4]. - Total revenue decreased to $245,095,000 for the three months ended March 31, 2024, down from $300,550,000 in the prior year, reflecting a decline of 18.4% [23]. - Operating loss improved to $(23,102,000) for the three months ended March 31, 2024, compared to $(44,872,000) in the same period of 2023, showing a decrease in losses of 48.6% [23]. - Net loss attributable to common shareholders was $(28,518,000) for the three months ended March 31, 2024, compared to $(186,905,000) in the same period of 2023, a significant improvement of 84.7% [23]. - Cash and cash equivalents at the end of the period were $249,430,000, down from $2,002,250,000 at the end of the previous year, a decrease of 87.6% [24]. - The company reported a net cash used in operating activities of $(48,717,000) for the three months ended March 31, 2024, compared to $(615,024,000) in the same period of 2023, indicating a significant improvement in cash flow management [24]. Cost Management - The adjusted operating cost ratio is anticipated to be between 15% and 16% (excluding corporate costs), and between 19% and 20% (including corporate costs) for 2024 [4]. - The operating cost ratio for Q1 2024 was reported at 27.3%, compared to 26.5% in Q1 2023 [14]. - Total operating expenses were $176,828,000 for the three months ended March 31, 2024, down from $241,567,000 in the same period of 2023, a reduction of 26.9% [25]. - Total operating expenses rose to $63,811,000 in Q1 2024, up from $56,043,000 in Q1 2023, primarily due to increased medical costs which reached $27,436,000, up from $23,722,000 [39]. Consumer Engagement and Services - NeueHealth serves over 460,000 health consumers through owned clinics and partnerships with over 3,000 affiliated providers, emphasizing its commitment to high-quality, coordinated care [20]. - The company expanded operations in Central Florida, focusing on proactive consumer engagement to enhance care delivery [18]. - As of March 31, 2024, NeueHealth served 360,000 value-based consumers, a decrease from 373,000 in the previous year, while enablement services lives increased significantly to 109,000 from 27,000 [30]. Revenue Streams - Capitated revenue for the three months ended March 31, 2024, was $61,466,000, an increase from $49,548,000 in the same period of 2023, representing a growth of 23.5% [23]. - ACO REACH revenue decreased to $171,811,000 for the three months ended March 31, 2024, from $239,807,000 in the same period of 2023, a decline of 28.4% [25]. - Total segment revenue for the first quarter of 2024 was $73,623,000, up 17.5% from $62,679,000 in the same period of 2023, driven by a 24% increase in capitated revenue [39]. Future Outlook - The company anticipates continued exclusion of certain non-GAAP adjustments in future disclosures, which may include share-based compensation and restructuring costs [33]. - Future financial outlook remains uncertain due to potential non-GAAP adjustments that could materially impact results [33]. - The company is committed to enhancing its market position through strategic initiatives, including potential expansions and new product developments [35]. - The company is focusing on restructuring efforts, which have led to a 4.3% increase in operating costs despite a decline in revenue due to fewer ACO REACH aligned beneficiaries [43].