P3 Health Partners(US:PIII)2024-05-11 10:05Financial Data and Key Metrics Changes - The company reported a revenue growth of approximately 29% year-over-year, with total revenue reaching $388 million for Q1 2024 [69][77] - Adjusted EBITDA for the quarter was a loss of $19.8 million, which is roughly flat compared to a loss of $19.1 million in Q1 2023 [63][74] - The medical margin was reported at $36.6 million, or $96 on a per member per month (PMPM) basis [77] Business Line Data and Key Metrics Changes - Operating expenses decreased to $26.2 million, down 26% year-over-year from $35.6 million in Q1 2023 [72][54] - Medical expenses improved to $918 PMPM, reflecting a 12% sequential decrease from $1,042 [90] Market Data and Key Metrics Changes - Medicare lives grew to approximately 126,800, representing a 23% year-over-year increase, exceeding the low end of the guidance range [70] - The percentage of persistent lives increased to approximately 90%, up from 86% the previous year [71] Company Strategy and Development Direction - The company is focused on improving utilization management to reduce unnecessary spending while enhancing patient experience [2] - A strategic partnership with Innovaccer was announced to leverage advanced AI capabilities for predictive modeling and care management [75][162] - The company aims to expand its footprint and capitalize on growth opportunities in the Medicare market [98] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the full-year guidance of positive $20 million to positive $40 million in adjusted EBITDA despite the current quarter's performance [68][92] - The company noted that it is over-conservative in its reserve estimates, suggesting potential for favorable adjustments in the future [73][159] Other Important Information - The company ended the quarter with approximately $32 million in cash and received an additional $15 million in regular cash capitated premiums [29] - The medical expense in the quarter was approximately 12% lower sequentially, indicating a normalizing utilization trend [72] Q&A Session Summary Question: What gives confidence to reaffirm the full year guidance despite EBITDA coming in below expectations? - Management highlighted the potential for significant reserve release and improvements in claims experience as reasons for confidence in the guidance [22][53] Question: Can you elaborate on the $8 million rebate recognition issue? - Management clarified that the rebate recognition is a timing issue, with expectations for recognition later in the year [39][121] Question: How does the company plan to manage growth in new markets? - Management indicated a cautious approach to growth, focusing on solid underwriting and deepening existing relationships before expanding into new markets [142][116]