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NeueHealth(NEUE) - 2024 Q2 - Earnings Call Transcript
NEUENeueHealth(NEUE)2024-08-07 13:21
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Financial Data and Key Metrics Changes - NeueHealth reported consolidated revenue of 226millionforQ22024,withagrossmarginof226 million for Q2 2024, with a gross margin of 48.3 million and adjusted EBITDA of 4million,indicatingamoderateincreaseinconsumersservedcomparedtoQ1[13][19]−Thecompanyreaffirmeditsexpectationforfull−yearadjustedEBITDAtobebetween4 million, indicating a moderate increase in consumers served compared to Q1 [13][19] - The company reaffirmed its expectation for full-year adjusted EBITDA to be between 15 million and 25million[19]BusinessLineDataandKeyMetricsChanges−IntheNeueCaresegment,revenuewas25 million [19] Business Line Data and Key Metrics Changes - In the NeueCare segment, revenue was 77 million, with operating income of 8.5millionbeforealong−livedassetimpairmentexpense,whichresultedinanoperatinglossof8.5 million before a long-lived asset impairment expense, which resulted in an operating loss of 5.9 million for the quarter [14] - The NeueSolutions segment generated revenue of 152.1million,withanoperatinglossof152.1 million, with an operating loss of 397,000, while serving approximately 113,000 consumers, exceeding expectations [15][11] Market Data and Key Metrics Changes - The company served over 477,000 consumers across the ACA Marketplace, Medicare, and Medicaid in Q2 2024, reflecting its ability to manage diverse populations [6][13] - For 2024, NeueHealth expects to serve between 475,000 and 500,000 consumers across both segments, with specific targets for value-based consumers [19] Company Strategy and Development Direction - NeueHealth is focused on a value-driven, consumer-centric care model that emphasizes long-term relationships with consumers and partnerships with providers [5][6] - The company is evaluating strategic growth opportunities and has a robust pipeline for 2025 and beyond, aiming to expand payer and provider partnerships [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's model and its ability to drive better health outcomes, highlighting the importance of consumer engagement and personalized care [5][21] - The company is well-positioned for sustainable growth in 2024 and beyond, supported by a new term loan facility of up to 150million[4][18]OtherImportantInformation−Thewind−downoftheACAinsurancebusinessisprogressingasplanned,withapproximately150 million [4][18] Other Important Information - The wind-down of the ACA insurance business is progressing as planned, with approximately 135 million in excess cash at the end of Q2 2024 [16] - As of June 30, 2024, the company had $277.8 million in total cash and investments, strengthening its balance sheet [17] Summary of Q&A Session - The Q&A session concluded without any recorded questions or answers, indicating a focus on the presentation of results rather than interactive discussion [22]