NEUE - Earnings call transcript Q2 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, all. Welcome to the NeueHealth Q2 2024 Earnings Call. My name is Karli, and I'll be your call coordinator today. I would like to hand over to your host, Emily Lombardi. Please begin.

Emily Lombardi

to Quarter welcome Call. Earnings and morning, NeueHealth's XXXX Second Conference Good

and a being President are Mikan; is this and Jay Leading Mike As call today recorded. reminder, the call CEO, CFO, Matushak. NeueHealth's

the over company's morning the in website. With this XXXX, Relations that, accessed NeueHealth's be Form will each A earnings also information. This quarter contain reference be some Executive to uncertainties or subject historical want to results will we of Information we of as August our such of to cause may Chief Except Mikan. A company's file company's the available securities of the and and available dated you earnings call or U.S. revise risk we call begin, call we GAAP experience I Investor and Commission, the file we and the turn X, with our found forward-looking expectations. SEC. forward-looking release second issued in statements uncertainties at obligation in can description X-K to under this are in Before contained on and statements is These including actual from non-GAAP required which or update risks risks measures. any measures presented reports that by the present current page that presentation, differ investors.neuehealth.com. Officer, remind in Investor factors Exchange reports the of this the that conference the related materially in from page and is Mike law, reconciliation periodic Securities may statements to laws. could non-GAAP release we federal and with now no Relations the the amounts on to that undertake

George Mikan

loan announced payers high-quality, providers Hercules and we delivered drive everyone, This $XXX strengthens to term results to as significantly for Call. affordable consumers, continue facility with secured morning, deliver Second industry. On care a the to new ability we XXXX position care the health we joining value you health XX, second populations. across in Capital. all NeueHealth's to June for thank and capital NeueHealth that Quarter solid up and underscores Good our million quarter in our Earnings

and are and uniquely to a model, interest believe and we care seamless, beyond. Throughout care have continued clinically, to We create excited more in we believe growth through well value-driven our Hercules' XXXX to quarter, are to second to aligns long-term data support financially technology the positioned sustainable coordinated drive health continue advance we consumer-centric which and experience.

in to We by our model are health better and reasons start mentioning is for ability our few populations. I'll the outcomes why confident we a model for positioned all future. believe its well drive

strong fostering build throughout come. expect partnerships payers to industry, care health we the have in the By and so, the country. with we doing trust communities continue and stakeholders we years these with local designed providers we in established trusted serve to our led model fragmented to to carefully We our ongoing relationships. power model believe delivery, believe grounded long-standing episodic have our in we around revolved is care costly upon is with care. the contrast, of care approaches are traditional value-driven which First, improve relationships to confidence and and the to relationships encounters building consumers and we across believe In upon

and Marketplace, diverse all In with across over populations served and of built Second, Medicaid. we a second ACA set the Medicare partner XXX,XXX the our to model serve is consumers providers. quarter,

circumstance. the believe We care continue ability our this personalized demonstrates to categories, matter need to effectively manage populations model delivering product across or no

in arrangements. with we we in to Texas diverse segment, we partner own as performance-based NeueCare providers NeueSolutions affiliated and base, of them Florida a Across to partner clinics set serving as continue our succeed country diverse as addition the providers to across with a In enable through and well business providers. our consumer

with We key diverse path balanced working value-based we future, in broad of taking associated have to one matter see where deep are to as they and while experience risk variety risk. Overall, expanding portfolio in with no high a our provider our mitigating any footprint on the their groups, concentration area.

the our the at do. for as well we Finally, positioned believe future we is of consumer everything model the center it places

our in each plans and on holistically, understanding focused developing are consumer personalized consumer's to an which consumer entire is a health maintaining ongoing taking proactive engagement, We commitment journey. throughout care approach the reflected care to relationship

in every care, have with partners in our are is and interaction we reflected this We consumers.

drive continues evaluating organically of results, have are the surface across and the which to industry. from partnerships existing continue growth As our many to we we strategic carefully model relationships strong opportunities, formed

to for quarter we us delivered in second have brief the continued we expand segment now in positions consumers the on segment, to positive payer in of new delivered our opportunities our enterprise solutions update million. both new to to of adjusted business as EBITDA and XXXX results a a model We continue million. drive for the believe adjusted provide and pipeline $X place robust our care and provider segment. $XX.X beyond XXXX care quarter, serve NeueCare capital-efficient momentum strong EBITDA our review we beyond. I'll remainder In as second partnerships, geographies. In and current the continue grow differentiated of NeueHealth new we Overall, and and

several circumstances. NeueSolutions months. severe preferences prioritizing and Florida that's suite no clinics, do. consumers demonstrated our tailored to tools and delivering visits the of in telehealth helping proud specific all coordinate am to high-quality to or and our health focus past performance-based the consumer-centric keeping of impacting through continues providers of needs we we capabilities on partnering care enabling resilience our ensure they as well needed, and care care, population participation are to in over to as and the strength meet together our and engaging consumers teams results through dedication and them all matter patients circumstances. In with Aligned center the several arrangements driving We continue teams of to REACH. thrive approach at came ACO storms their of delivering consumer-centric appointment in receive and to Texas and with our the to our wake patient I care

maintain to Our ability relationships care. we business to second building them opportunities segments. In performance, their our served the in focus XXX,XXX we in providers provider ACO exceeded expectations believe with believe navigate NeueCare consistent business the NeueSolutions our part quarter across continue REACH growth This patient and our approximately strong additional and industry's second Jay our future bringing business, key initiatives an avenue as value-based this we to the engagement details we health with on enablement shift our care to management help for hand consumers to financial and shows deliver business, results. We of to the we over on offer drove our high-quality in value to are our providers beneficiaries. I'll the and to confidence provide care expectations, in our second the equity quarter. strong Medicare it it are quarter now

Jay Matushak

NeueSolutions insurance And as and business and sheet. financial our performance well start Mike, morning, over quarter and segments. wind briefly by our business go down balance our I'll on our second NeueCare Thank NeueHealth touch for as consolidated I'll our you, each ACA the of reviewing everyone. good of

Finally, I'll our review outlook. XXXX

operations. NeueHealth of half a consumer on GAAP gross $XX.X financial delivered adjusted quarter, margin over discontinued generate moderate and EBITDA be business NeueCare the that of increase in each segment. our with NeueCare million. reminder, segments. our results include served we our and to for second quarter the As was focusing of a the will XXXX million, the release our across XXX,XXX I first the are included results is of the of $X in contain consolidated second approximately quarter million in year. increased consumers business NeueHealth growth $XXX our and continue This continuing serving in NeueSolutions expect financials earnings NeueSolutions and to second NeueHealth in revenue

between for EBITDA our million. reaffirming year are We million adjusted and full $XX expectation of $XX

in quarter, was impairment the operating with associates' costs NeueCare expected tied held as increase now third further second forward. to million, In asset in and through partners revenue higher clinics NeueCare our and the to quarters. clinics the fourth business segment. overall, Starting MD moving MD in $XX our with contracts quarter, our immaterial expense our our we classifying line partner Turning were that in third associates' are drive NeueCare This our with to long-lived have our to and than growth is place due will to volume second clinic continue expectations. we to business sale. affiliate a the quarter, payer In expected for

$X.X NeueSolutions was long-lived revenue $XXX.X expense, the loss million the quarter. million NeueCare operating line was adjustment, with quarter. in this NeueCare operating operating segment, Including Excluding asset and in income expectations the were million second for second costs impairment quarter. In our NeueCare $X.X was the for

quarter lower. in with second costs quarter. for loss with segment expectations medical operating moderately the costs NeueSolutions Second line were was $XXX,XXX operating

business of business progress of expectations with in in half strong a our aligned first the the are line REACH to this ACO and portfolio continues partners. the of we deliver in Our strong with our performance a part year with we pleased making provider are

we provider the consumers to they In results no approximately value we exceeding where XXX,XXX performance-based forward relationships capabilities provider country. our this across the driving continuing quarter, and matter the to arrangements, of NeueSolutions, on expertise providers through On business, their look participating are side in are with strong served build performance-based We expectations. arrangements. our generating with to path the second enablement in for partners

Next, AC business. I'll briefly of insurance wind down address the our

$XXX the due business We adjustment second reserving ACA other make wind down planned for agreements in of medical with costs the and our had At our quarter, expenses, in excess risk the not progress obligations including expected CMS. as are end to second repayment continuing after anticipated approximately insurance quarter. under cash million

million retrieve the ] to agreements. so far which and have has our $XX.X states year, continue [ into approximately from infused of capital some this entities been with repayment discontinued We received

CMS this much stronger as our with declined. liability this and in several associated position year ACA We insurance more to have made is the prepayments continue we remaining believe already to we year. Overall, a predictable business see business steadily our

balance sheet. turning our Now to

of total we in and $XXX.X million regulated June our entities. in including XX, had amounts XXXX, cash As investments,

of end of $XXX.X million nonregulated the the were cash at second Our million and short-term restricted $XX.X including quarter, and cash investments. investments

mentioned our execute balance June entered strategic earlier, beyond. we up Capital. for foundation priorities This Mike loan and to sheet provides it announce strengthens XX, million meaningfully Hercules with secured $XXX into our to company facility to and as on a against pleased XXXX solid our we for that a had significant in were As is

$XX and our are adjusted million enterprise XXXX, outlook. to million. now EBITDA for XXXX In to expectations we Turning between be our confirming $XX

approximately We of now expecting are consolidated revenue million. $XXX

Specifically, our our we expect approximately from segment $XXX million NeueCare and million $XXX approximately segment. from NeueSolutions

the We NeueSolutions between our of our consumers both and expectations we XXXX. and end the of reaching serve to this and segments, XXX,XXX range end anticipate are high by confirming XXX,XXX across NeueCare

XXX,XXX and XXX,XXX XXX,XXX We REACH. expect to our clinics consumers and through approximately between serve in XX,XXX between and ACO value-based XXX,XXX including and consumers NeueSolutions

our XX%, and cost Finally, excluding adjusted costs, to When corporate of to on be costs. now this in back second Mike we continuing our second it turn this and operating XX% to between closing results performance business forward corporate build over look in for NeueSolutions XX%. Overall, our expect reflect ratio strong both is include quarter segments, XX% you we half the some to NeueCare and year. I'll to remarks. the momentum

George Mikan

you, Jay. Thank

quarter this more we accessible are relationships strong and our differentiated and outlined we we we've model and consumer value-driven believe engagement. high-quality beyond to care model the affordable well prioritizes We that with second make positioned ongoing strong as delivered for As performance health proactive in for and consumer-centric XXXX advance morning, populations. care all continue a

to the consumers, partners. thank payers continue eager to of collaboration advance stronger, I to experience health care to a like with better and create commitment never interest the we our our building would are to has Our aligning been providers on in and for the model for their entire care. today's look you momentum health in forward your I joining second beyond. That call. to and our concludes team interest half to dedication NeueHealth. of XXXX in new for continued transforming Thank health and

Operator

This to you for concludes call. everyone joining. today's Thank

may your You disconnect now lines.

NeueHealth (NEUE) 7 Aug 242024 Q2 Earnings call transcript