NEUE - Earnings call transcript Q3 2024

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Operator

Ladies and gentlemen, welcome to the NeueHealth Third Quarter 2024 Earnings Call. My name is Kenneth, and I will be coordinating your call today. I will now hand you over to your host, Emily Lombardi, to begin. Please go ahead.

Emily Lombardi

Good morning, and welcome to NeueHealth's Third Quarter 2024 Earnings Conference Call.

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

with the current we we in Except and reports forward-looking or A we found the of be federal results to or begin, call present and file risk our uncertainties are Securities expectations. by undertake we Commission, we want in materially file can cause you risks revise information. to risks and update the remind the including Before law, actual uncertainties could obligation that subject may to as required contain SEC. Exchange some laws. from forward-looking that statements description securities any U.S. differ or reports of that under no and with factors These statements to the periodic this historical statements experience

in in the this earnings reconciliation from GAAP Relations contained This related which of earnings release that measures and and measures. our company's on Form the investors.neuehealth.com. call each A page available we company's non-GAAP amounts Investor at will Information presentation, non-GAAP to also available is on the the the accessed presented X-K Investor dated of call website. third reference in Relations may X, company's XXXX, this be morning of November issued such in is the release quarter page

Chief over NeueHealth's conference With the Executive Mike that, Mikan. I now will to Officer, turn

George Mikan

Good morning, Quarter NeueHealth's Third XXXX Earnings everyone, thank Call. joining and you for

on positioning report XXXX. year we in to the to and as enter to delivered performance build finish date positive momentum We strongest third that its NeueHealth its the are quarter, financial company the pleased

of $XX generating of guidance within driven placing NeueHealth million full the and For XXXX, between the million, range adjusted EBITDA has quarters company achieved million. the Through EBITDA NeueHealth in X first EBITDA adjusted of $XX $X.X X $XX consecutive of million profitability, third quarter. our adjusted quarters, year

the which number segments, full grew across we total, NeueCare guidance quarter, and we approximately slightly year. served range the is our our of This in consumers serving above consumers NeueSolutions XXX,XXX for

we on a Overall, finish we strong to note. positioned well believe XXXX are

Looking in success briefly a performance on areas beyond. I'll our we're third comment for growth few and believe ahead, next quarter through year continued XXXX. strategic us on positions we growth the focused and

to base focused product category. are of product differentiated we categories, to growth in the is First, Medicare continuing on variety the channels to populations all market us arrangements Medicaid. and across ability ACA might including consumer a diversify impact We believe our any performance-based grow pursue on while and our have limiting one Marketplace, serve allows and all dynamics adverse

focus in Of note, centers grow we health increasing high-quality we with see federally affordable we provider health on population groups partnership other as to the consumers. to Medicaid access for care an all opportunity serve and qualified

Second, we have by new markets leveraging existing the partners. are payer we looking to drive relationships with and our capital-efficient formed growth strong in

and Florida see trusted the by deliver personalized affiliated growing expansion our on made our built this of consumers owned serve across the with partner in value we payer prior relationship ability they our we number mentioned clinics. their earlier Central possible we in high-quality footprint As and to we year, our long-standing our expanded call, members. care This to was

for of We tailor relationships the and our set gives our performance-based This more Reach. with full a with partners are health seamless, a businesses expand focused value-based or relationships together diverse CMS to programs MSSP as capture they As us provider's a industry, additional in our to such unique our care, as providers across work tools to ongoing to delivery with wide serve participating provider care payers that's through in matter participation whether like experience we look capabilities on build in alongside in we to growing continue benefits grow or ACO no our programs the the for participation population grow care well to of enablement on help flexibility their of we opportunities we where them suite our need coordinated are will as all. Reach create opportunities finally, ACO And path innovative to and provider a explore the to partners variety as and of future. arrangements. situation

we care report care consumers. coordinated forward advance to to continuing and a our more to seamless, and Overall, explore strong bring another we opportunities grow our experience to partners look to are pleased more model, quarter, with

Jay, and I consumer-centric that over announced structure, Health, value-driven October our support Centrum we Centrum touch provided it for our value-driven streamlining brands. of clinics ownership operations acquired clinic ongoing further last care to our of we model. on our underscores update health an Before more seamless, create to our one our on On simplifies ability care corporate advancing to a Health our XX, coordinated full all experience This we consumers. briefly transaction turn I belief in to want focus This week.

I'll provide now additional quarter hand results. it over our third financial details to on Jay to

Jay Matushak

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

Finally, outlook. I'll our review XXXX

contain results release our include our I reminder, on the included will our focusing and XXXX operations. results GAAP our of each and NeueSolutions NeueCare be NeueHealth that are of a business segments. financials discontinued financial earnings continuing and As in

margin was $XX.X revenue million of quarter gross for third the with million. $XXX.X NeueHealth consolidated

to our across NeueHealth million expectations. third financial $X.X in Mike As adjusted continue This to of value we underscoring deliver the our mentioned, exceeding industry. quarterly quarter, delivered the partners is the best company's the EBITDA performance,

year $XX X the guidance this positive as range, full of through momentum our the we achieving end of noted year. year. adjusted already We continue through are quarters EBITDA we first the within expect earlier, to And million

quarter, and more of across third demonstrates XXX,XXX attract variety approximately consumers than exceeds XXXX ability year NeueSolutions across XX% and retain we over business growth This the which served segments, a markets. represents of our our NeueCare third guidance and to quarter. our full In consumers range

Turning now our to NeueCare segment.

line full medical through the was In $XX.X is which across drive focus third of operating continue delivery making value-based for XXX,XXX in with quarter. our the We served high-quality ACA million strong guidance We clinics, business to range. income care marketplace, NeueCare costs consumers in as to coordinated costs we our performance $XX.X delivered approximately consumers with expectations Medicaid. accessible operating NeueCare on and the across our approximately quarter, Medicare all and year above revenue the our million third care quarter.

up setting quarter, segment to We expect continue these build in this results to in growth the XXXX. continued drive on in to fourth us

I'll now walk our through results. NeueSolutions financial

business ACO As in provider of Reach. generated segment Overall, well third a reminder, the revenue as of our NeueSolutions $XXX quarter. NeueSolutions enablement as our segment consists million

Third was NeueCare own quarter operating million costs our This moderately with third $X.X for were segment Reach. costs NeueSolutions in clinic in made quarter. operating expectations line loss medical resulting includes the lower. segment our to ACO from participation we with payments

steadily continuing grow provider quarter-over-quarter. serve enablement solid as of consumers the deliver of are we NeueSolutions, to we the On results side we number

quarter. expectations no and growth revenue was XXX,XXX and in finished approximately to the exception quarter strong quarter the exceeded accelerated, contributed we consumers. serving as third our The This

ACO business XX,XXX pleased the serving quarter, in We Medicare continued results to are beneficiaries. report Reach in third our solid approximately

high-risk and the We rising strong and a site the continue to year risk collaborate through service to initiatives management preventing program. of provider continue avoidable to consumer-centric the and in our we on as optimizing partners identifying focused proactively bring closely with care We patient on forward beneficiaries. beneficiaries we to look high-quality position engagement Medicare care manage readmissions, finishing

$XXX insurance fund insurance the our million other costs medical third CMS. obligations ACA our of agreements as At business down expenses, due our adjustment quarter. including continuing end had in quarter, of in wind cash to business repayment not risk and ACA under the with is remaining wind-down The the third planned approximately

retrieve we've entities. our we to mentioned, from As continue capital discontinued

insurance driving care continues and year, enablement associated steadily As to through and strong throughout placing focus go-forward remaining our business a results business liability to delivery beyond. decline, our ACA position provider continue to business XXXX we've the in on in our seen with our

a our provide sheet. review I'll balance Now quick of

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

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

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

continue to of expect We approximately million. $XXX consolidated revenue

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

the segments, ending high our and serve between XXX,XXX and the confirming at consumers of or year above our and to range. are NeueCare this across anticipate we NeueSolutions We expectations end both XXX,XXX

NeueSolutions, consumers We in and the serving ACO approximately between and between year consumers Reach. XXX,XXX value-based our and clinics expect in XX,XXX including XXX,XXX through finish to XXX,XXX XXX,XXX

We to year. at be at of of of the high both the these end end ranges the expect

third at corporate Finally, expect XX% well include end our XXXX on segments, we success corporate NeueCare end our be range beyond. and and to When in conclude, XX%, operating to excluding to our expect costs. XX% ratio positioned To low both represent XX%, believe build this we financial NeueSolutions adjusted at of be and you to strong momentum this cost year. costs, between of is the we and are quarter in the we results business the our continued and

it now I'll remarks. Mike for closing to over back turn some

George Mikan

we I of our how Thank third well in success. the our and future are you, about am am Jay. quarter, I for positioned continued company performance of and the proud excited

we and is testament driving performance quarter, value financial this providers to industry. across the payers delivered the for our strongest which we to heard, you've As are date, a consumers,

is ahead, strong. As XXXX we our look outlook

been who have in our with well we strategic markets to In the positioned better our grow them to we serve, payer future. leading strong opportunities to a are geographies, our significant built and advance partners As drive existing growth. the we in never company, alongside have trusted positioned model relationships

for relationships these on health focused for and grow build but us continuing new to future, their markets and we bring remain the in our continue year. a future, to product In to addition, In momentum better we continue long-standing serve we on the them the through the relationships experience the positive lifetime, to trust have our expect with over we categories. We're across care consumers of populations all. as to we diversify who end developed excited care

like our share not would We each forward without to the are this for success year together NeueHealth build gratitude and to look I we you, be on today of work my where to beyond. entire team. and would to I sincere continuing

in today's for for concludes you NeueHealth. interest and joining call. That your Thank

NeueHealth (NEUE) 7 Nov 242024 Q3 Earnings call transcript