PIII - Earnings call 3 2023 | P3 Health Partners Inc.

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Operator

Good afternoon, everyone, and welcome to the P3 Health Partners Third Quarter Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I will now turn the conference over to Karen Blomquist, Vice President of Investor Relations of P3. Please go ahead.

Karen Blomquist

Thank you, operator, and thank you for joining us today.

the statements would are made under U.S. with everyone to forward-looking proceed the certain that during we call, like I remind statements Before this call long-term statements financial federal regarding laws, including outlook securities and targets. our These forward-looking are on that events current of our condition we future predictions believe and about our financial operations. based and business, projections financial largely expectations and are statements only and trends may affect results

differ materially statements subject to cause risks actual expectations. uncertainties present and could historical are that from These to or experience results

the Additional statements. information the to undertakes company in made call concerning statements only forward-looking factors cause to date obligation with revise actual no of the this contained The SEC. that on hereof, or differ results could during and our is filed speak made statements the from report update forward-looking periodic these call this as

non-GAAP refer per margin adjusted GAAP. EBITDA, performance expense, adjusted to member in lives to will burn. call, medical per this medical measures financial the We per non-GAAP or month, including certain -- measures medical operating to and per of a in per month persistent margin, EBITDA addition financial measures adjusted on financial per These member are member and with superior cash accordance not month margin for substitute prepared

a number measures. of use financial are There non-GAAP of limitations the related these to

page earnings the titled filings, similarly from measures. today website. calculate the contained we the which a PX measures and for SEC our Health in our GAAP on the directly of financial to may of of is Partners financial Investors comparable press companies issued Information accessed non-GAAP these differently. other example, presented may the release be most measures For appendix reconciliation that this in call to non-GAAP release Refer

the call Abdou, of Co-Founder PX. turn CEO now Dr. to and over will I

Sherif Abdou

results, third would all XXXX like our third joining conference to you financial and quarter for guidance. quarter on as preliminary well our Karen, provide Thanks, you update thank XXXX XXXX guidance all as call. I

comments. start I will off with big picture few some

to towards report pleased full able tracking are to expected. as year we that are be XXXX We our guidance

remains momentum overall very Our strong.

EBITDA lower $XX million, predominantly provide Atul shortly. timing our approximately third elements EBITDA this further than is anticipated which realization, impacting our some to details will While quarter due on is by

The operations was defined previously the be drop XXXX of EBITDA. about we also data point payment key is flow pleased expect I'm quarter, million and realized XXXX from $XX fourth to to burn $XX CapEx on that we to be flow down that track cash in breakeven to -- cash in be -- to less third for XXXX discussed. cash adjusted as that able to the will for our services and million for as to quarter report final $X million, are

of $XX We $XX are from providing assumes that's EBITDA adjusted a guidance persistent to million preliminary EBITDA million positive The positive our $XX million. XXXX range baseline. lives, guidance

We will guidance XXXX. more provide January in detailed

revenue was approximately the our of year's third the quarter. prior $XXX year-to-date quarter year Revenue of $XXX quarter On year-to-date, increase also million, for over versus the to And XX% highlights. XX% prior grew million an period. and

was Medical and [ market benchmark. with for consider [ $XXX Azema we month and per margin of basis. the million our that ] margin mature is month which was PMPM million our PMPM on range year-to-date consistent $XXX on to guidance $XXX ] to persistent PMPM Medical $XXX reported year-to-date meet $XXX [ to lives by per member $XXX Medical our ] valuable the of a on plus a $XXX PMPM basis, for $XX the quarter, year-to-date, quarter for per million, the track million year. $XXX per was all margin lives member for peer,

in are year-to-date, platform. for December is were cost our lives platform lives Persistent negative on January Medical on to expense platform X% power in our are lives and on as model ability the persistent XXXX with approximately the defined curve advance that build XXXX. more PMPM were reflection and Medicare a our the PX claim of the lives of our

for EBITDA Adjusted of year. million quarter, was million $XX.X noncash a compared the quarter employee the includes million for in negative million in the negative the $XX.X to of prior $XX.X $X.X The impact true-up the costs and we will XXXX that accrual into recognition for in of not XXXX care health final fourth the revenue the captured expect take be -- account payment data for quarter. does service

$XX.X in Year-to-date half. cut negative million, to year the which adjusted $XX.X improvement. prior was compared differently, XX% million is of Said we EBITDA negative losses our

we forward we how with you up. we shaping to some insight like would XXXX, see as to look As to year next provide

As I of baseline the our for just will XXXX expectation in million year. that with persistent lives $XX the contribute our shared, starts EBITDA approximately

take new meaningful XXXX. expect growth Additionally, to we our lives and in

way We in focus a markets our and while adjacent infrastructure by expecting continuing achieve growth on meaningful to existing in efficient a are to existing very capital leveraging way. this

and bullish potential various to Based conversations our have strategic system, on and providers payers, We on opportunities ongoing thrive the in all opportunities. JV to partnership this, health come. years with including I remain

like Now I call would Bettermann, Bill over our the turn Chief Officer. to to Operating

William Bettermann

we reach; X second, California operating market. our third, to the of ACO how own plan and I and today: Sherif. effectiveness from our highlights performance you, cover judge topics the model; PX Thank first,

operating versus We, on as data. team, a basis benchmarking a judge management publicly as available as PMPM well our performance own

Health point, last model, agilon available On a the readily with peer so similar have publicly a relevant. data is business affiliate traded we the and

use for agilon PX some differences benchmark there knowing mix are has admiration natural business, and the and in We the model in membership. it have the utmost achieved and what respect a as for

per effective is question, The first data PX member is is revenue PMPM the $XXX. per quarter. the was year-to-date PX's patients same. disease [ point revenue growth was point PMPM was revenue for growth XX% the data $XXX, was and PX's engaging agilon's agilon's for relevant and This the appropriately. relevant the model assessing ] month burden at to answer the a quarter

about are that. We pleased

The relative question, model. and prop value to in second JV medical as of directly does is effectively answers care, the JV bend the fundamental model? which the the data is PX's effectiveness the model PX absolute the premiums medical is tied value-based in It a margin as terms PMPM, point to curve cost model It claims. less

operating margin is PX's $XXX medical We're year-to-date. PMPM mature agilon's margin X-year for and is year-to-date. was PMPM PMPM of persistent $XXX plus a model. $XXX lives PMPM PX's JV already $XXX margins markets. at year-to-date medical

$XX gross The PMPM. agilon feel that. at third is versus We $XX good about profit PMPM. data year-to-date point was PMPM gross PMPM profit PX's really

X in the There differences models. are some

expect given expense and fully to and infrastructure as generally in forward of markets scaled a our We coming interest existing we space not costs. expect to pursue significant grow grow adjusted leverage owns adjusted yet significant minority EBITDA, available become the we EBITDA PX we profitable. going our fashion similar entry to its this adjacent don't so geographic XXX% are years. roughly white as don't We significant the We have over strategy.

PX's cash $XXX $XX at burn year-to-date was million agilon million. versus

The inquiries allows provider driven cycles. our this sales of of model, We to our those us membership also inbound really by enjoyed lower acquisition than and operating majority attracted by adds avoid are our to cost long peers.

PX's has delegated, it. of cash to revenue dynamics flow which positive attributed is XX% Additionally,

The better plan, versus cash in will our time physician We related of model data and model better premiums flow important mirror PX is which accuracy dynamics claims health to later. also pay expect managed of helpful clarity, operating our timing adoption a to to upfront, delegated grow that cost that trend. over so benefits enables drive medical non-delegated,

Finally, we mix lower reach lives a have of today. ACO

X,XXX have allows current currently and us Reach to the and of years. who that serve each and benefits better by reach practices into to to we clinicians reach, Regarding the our patients substantially over PCPs a concept have, the we arrangement. allows value-based program those PCPs further offering those ACO lives patients. this us plan the Migrating not to seen being create X,XXX greater care an in program risk-based increase those by our to program that with ACO roughly With today coming entrenches patients ACO of our depth are growing

for and bodes to encouraging proper program their as value-based they data in continue use well our of care We as high-utilizing sick, our financial the deepen clinicians to with our going very increased of education and very care of an working our alignment, teams increase patients. and engagement see forward. and management incentive very tools due well clinical, level performance This as is for increased engagement adoption operational understanding

take to XXXX. minute on of markets, California, want a one Lastly, December of we entered our in focus which to I newer

California a performance. see is We market market's this Medicare based improvements versus compare have presence approximately prior of some here. in have medical September significant Much made you Advantage as solely this will we XXXX market. If we this of in members the we've year-to-date, market on year-to-date affiliate group from providers X,XXX don't

element to third very start their prior, where building $XX believe commitment We've was aid their help in with you this year-to-date was XXXX have job margin $XXX their the it key XXXX, our was them see PCPs a prior, in providing it an driving center If XX%. of to PMPM, chronic relationships versus partnered increase closing gaps, swing. third $XXX it tremendous affiliate our with we is That's $X,XXX strong positive positive PMPM versus performance best revenue conditions of senior our PMPM, PMPM. PMPM, it with quarter identifying One year-to-date was we to $XXX done year-to-date, Medical PMPM year-to-date providers. patients in quarter a of care care. negative nearly many

optimized of our performing with partners our We with to health plans. the stronger upon assure full believe contracts expand coordination plan the also have and we payer will care alignment

will time CFO. over to call now Kavthekar, today. our for turn And you want thank I I the to Atul your

Atul Kavthekar

our position guidance. and I'll preliminary around on quarter guidance. updates Bill, thoughts discussing good everyone. lower up significantly our adjusted year the our cash afternoon, finish and we EBITDA in provide by recent start meeting and with our XXXX our towards liquidity and full are burn quarter some I'll Thanks, progressing how Then

period for $XXX results begin quarter $XXX our was in and million were representing revenue was $XXX to quarter of of the total million, million revenue respectively, line Year-to-date, year. year-to-date. the and the strong prior compared I'll revenue growth revenue total Top the with million, third metric of same each an capitated and representing to for on XX% capitated year. approximately of compared $XXX XX%, with and XX% prior results improvement the

equates year. the members since basis, as who been on On roughly have to this which platform, the reflective with PX a improved of of the calendar improvement, persistent start define a XX% nearly we members of our XX% funding PMPM on

prior Year-to-date, significant nearly progress these year. margin $XX a clearer to roughly the Gross provides in XXx to basis, or which another compared slight which in to and PMPM or and our a $XXX ability medical In to have a $X improved improve the prior $XX to yet the over improved is million third $XX to gross medical demonstrated improved the year. profit picture million a quarter increased is Year-to-date, PMPM loss significantly we the to manage prior in on PMPM loss improvement million that million. the or in on $XXX quarter our compared a health. quarter, to prior margin year. compared on profit $XX measures Xx This our members' year

have focused impactful in be to costs. medical several even managing will our laser that we more that are new be targeted forward, we initiatives designed Going on

the them calls. deliberate We much results in will be and subsequent sharing about more

improvement expense operating support carefully continue continue I operational significant revenue be we very everyday cash in the with commitment I've current to to quarter. our 'XX, we of past, quarter will in and costs, X% said incorporate our mindset relates And down as it monitor saw the of As from into platform third to in continuous management. pleased spending and XX% in going to trends, drop this a innovation. the the team's our to

$XX significant significant adjusted of prior Adjusted loss EBITDA same another compared XXXX of EBITDA area of to the in million, for compared of year. improvement. improvement loss million, million loss the a 'XX, of $XX a to was period was $XX million $XX in quarter the Year-to-date, loss a a

some Let EBITDA. provide me color on this additional adjusted quarter's

service. recognition by EBITDA any charge XXXX our our adjusted recommended the estimated and finally, roughly adjustment no reflects of of several XXXX in noncash for quarter notable final insurance with $X.X payment million costs related including connection Our elements, to to actuaries employee related of revenues dates the favorable IBNR

billion, We the full All quarters. in million $X.XX guidance. $XX EBITDA $X.X adjusted all, still we be million and are quarter's to between drive pleased revenue $XXX the our expect and margin billion negative be results $XX between reaffirming our medical next XXXX company and $XXX XXXX to to the higher To to end, between to with and we performance million. over of year that are negative several million plan

quarter our position at to messaging was $XX liquidity, lower substantially quarters cash. We is last solid. regards burn of prior in our with consistent in With with QX. than quarter, burn million our And ended approximately million our the $X approximately cash in

normalized While us a march we to thereafter. down this in year burn is that rate continue reflective a of to leads more near flow profitability and positive cash soon term, path next the

forward, Looking operating the earlier, positive growth, seen we terms we've and expenses. revenue, mentioned continue margin and in member Sherif are to as trends medical of expecting

] in funding including V-XX and specific adjusted opportunity into cost persistent penetration its economics visibility the in our member high our new REACH ACO economics, the have we Specifically, for along areas of with growth our medical our of of [ model, drivers better our business, our membership management. growing some XXXX pipeline, unit key

a We early further adjusted million. between details in positive conference positive and will but expecting investor provide to EBITDA $XX million XXXX, we're at future $XX generate

weeks. long-term more specific at are optimism coming the PX near-term and with you forward We sharing and share to and prospects details our look in pleased to of continued excitement the

Sherif Abdou

Operator, let go me then make to some closing and comments, we'll Q&A.

call, So that XXXX. and shared our reaffirmed our you medical with the XX%. was margin up EBITDA for we guidance in We revenue today -- shared you with

revenue capitated was Our XX%. up

Advantage member year-to-date expense with is you per and success the cost, Medicare improvement shared in that with XXXX, and negative Medicare down, that you of year-to-date our power X% model compare trend also the Advantage We the reflects medical when the we're month that per seeing. medical the PX

to last improved $X $XX $X profit is had year the negative positive XXX% quarter. OpEx quarter margin down year, $X was for million versus million same year-over-year. over year-over-year, XX% last XX% quarter. medical million The million Gross

shared burn, cash Our we as entire is quarter. $X million you, with for the

half 'XX year. improved XX%, with over shared quarter last in and we mentioned you our this year-to-date, over as has from cut EBITDA and Our we that basically, 'XX losses by

And we've between shared million. and for XXXX, $XX with EBITDA you our million preliminary projection positive $XX

operator, with ready we're for So that, Q&A.

Operator

Our first from Lake O'Neil Street with Markets. Capital comes [Operator question Brooks Instructions]

Brooks O'Neil

couple drop significant prior you related of million first, the year? positive dependent made. you, on of EBITDA, about Congratulations progress in the like you've $XX think, mentioned QX of to similar guess that I expect a to a about drop I in you questions. commented $XX to just year. experience ask I'd thinking meaningful claims in down prior I million from have the When to is expecting you you're the XXXX, kind that on down Sherif, any

Sherif Abdou

That's going some down. recommended start And the releasing of to to think, I very XX%. the in The we I to go result, first, It's as that those trickle -- exactly appreciate put we summary Brooks actuarial, put our improve why IBNR. caps to continue and continue said, you XX% the we're at -- cost much, up, Well, thank question. to as The I continue end. I that medical revenue that. will a reserves

margin has we to to I medical even and don't Our have year-over-year. is if persistent continue do contribution $XXX PMPM. the life improve, XXX% that. the from improved But

and go leverage we're So up, you The extrapolate -- the be down, gross that continue costs that's revenue, $XX profit medical to OpEx continuation more continuing cash million up, down, our path $XX can on EBITDA. go to burn focused of efficient go all margin go million infrastructure. for to medical then

Brooks O'Neil

great. That's

it on think so. get going be to you track sounds there. to to you're for like I And it's important do

fantastic. that's So

in new for you've about lives me to next tend depressing How in the lives historically, when be new are you've in, you you come lives performance the to Obviously, about that and they growth seeing commented still improvement bring continue and some you year ask XXXX. profit you Let just of had the confident had. now? you're new can

Sherif Abdou

the and added We've the so geography markets. lives some We went on we've market the county very and do We've is take Brooks, this because to network. can same we're to same door, We're -- the maturation added we're platform leverage into the the infrastructure, and maturation confident, we year. going shorter next and added and to seeing takes so. in the place. more but successful continue our more patient only shorter. place, engagement getting time from a and The medical soaring not as physician landing And on margin

So trajectory that we're very today. shared confident able be that with we the to you and maintain grow the will we

Brooks O'Neil

Great.

question. last one ask me Let

it mentioned My that in Again, you that you XXXX. think risk that how environment improvement mechanisms to the are to anticipate Medicare can Atul for this improved friends the our at CMS next achieved some the sense drive I adjustment confident all we that made funding in was have changes funding year is continue Advantage. you've year.

Sherif Abdou

with to Dr. Bacchus. Medical co-founder answer room. our the in He turn Officer. He's I'll the us Dr. here Bacchus? is and Chief

Amir Bacchus

Brooks, good documentation of sure through comes important modules for only of do one different describing, our education Yes. the can practices it to things before, mean, our us, that are from as every and we you. those today. as in factors we've that is patients heard for making perform But describe few driving that a also, to continue in hear proper Sherif it. understand each -- maturity and really we not me I

So bode us those things all for upfront. well

have at our ] In opportunity also where better addition we've had regards looking RAF [ as currently when we opportunity current a exists. in reside to to about, in that still -- that, the we've we we're talked with

we analyzing significant in the Sherif still that with know opportunity, revenues our populations, even have we So described.

XX version adjustment to we quite coding standpoint. risk So to even in to perform excited XX the to we continue move are as

Operator

with Josh Raskin The next Research. Nephron from question comes

Joshua Raskin

as I got couple well. a

if updated you if the -- member not X,XXX number PCPs I And quarter total the think -- wrong, I affiliated number. total I'm membership heard well? that's for got a me correct was as if at-risk

Unknown Executive

question. that for Thanks Yes.

So that's right.

little in X,XXX the overall PCPs platform. just So over we are a

Joshua Raskin

members? And

Unknown Executive

total And risk. year-to-date, at members Medicare, are XXX,XXX about members

Sherif Abdou

a that with population, [ we there's -- lot if at-risk on platform, and on and share There's the just more and ]. XXX,XXX Arizona Cross savings you the X,XXX the count Humana Blue X,XXX or risk value-based but share

XXX,XXX. put So Medicare at the can you

Joshua Raskin

payments dealing to assume you. thinking talk negotiations you can mentioned? with on said Are just that currently ] cutting I for data benefits? they point work are those you on all I'm about how some are Got changes having they XXXX? cap And Okay. And that. that don't specifically of with. payers any your you that. increasing? -- model with if you're also with you're mostly out like you're at then [ And conversations then this the risk new about payers I'm curious curious then

Unknown Executive

Yes.

to our relationship And as in we we're sign Oregon. we the any have new we not the with but multistate a only ], Etrial the multiple [ contract I Skin have that pleased a will. the -- not we signed and relationship anything Aetna plan -- in So probably with Oregon. announce did with, local in did we contract counties that's and We expanded health which payer about to with new we haven't expanded that new in our contract we're multiyear before think California, the did with Health that

Joshua Raskin

extra in color X be on Okay. of to percent Or changes that or keep for And [ would the how getting in the too. XXXX? trying whole but they of how then reimbursement light CAP any the Are an helpful, negotiations -- payments? you ] on terms just you are are just

Sherif Abdou

Yes.

premium had ] [ of value that in increase, would PMPM as premium year-over-year. as for a XX% RAV So saw, the percentage you driver increase we you of of biggest the our that improve percentage that the

multiyear that's no that of negotiation. a not them in there's contract So year. percentage the we premium open for this Most of change have aren't

very of the However, very that think -- plan. we impact of benefits us. things health We're putting our impact X participated and -- about mindful benefit. logical the in on and downstream very supportive and vast participated We in I majority that

that and downward. adjusted us if medical on Second, the the benefits adjust language not any change adjustment, a have our we upward, will to premium protect in there's

Joshua Raskin

That's last sneak persistent on Got then expected of sounded the EBITDA members. in It you. Got in. Okay. it. to just $XX helpful. XXXX And one one like million

in new think So to members about you $XX I'm of expectation cohort PMPM just that of the to XXXX? to members. be sort maybe lose how compare of million million million the on $XX basis what $XX new curious, on $XX would to does losing million a sort the relative are

Sherif Abdou

back to So that Atul I'm sure -- and get go I answer 'XX, you we to on or it's this. can have to not I'll back either want to

only We'll As so. guidance. far that giving now, more maybe January, have we're Conference as JPMorgan lot is thing 'XX, by EBITDA details Josh, the right a the or

Operator

Taylor next Gary question Cowen. Our comes from TD with

Gary Taylor

just me. to from I do referring make the Just issue understand XQ you're were a sure you the item to couple for want to timing -- I XQ.

million through $XX is go revenue any tell your run is from million EBITDA you to revenue of that's to X can this So to primarily and plan about that? just Just that straight there doesn't non-delegated line receivables, going plan? health us any $XX that more you of

Unknown Executive

are payment. is 'XX 'XX in with to the final considered days Those settlement that that is the associated is service that revenue settlement, of reference --

a -- make to that, that's the history recognized that estimate in should sure and of in believe performance. we're That's able with consistent recognize constrained is rough at there's and auditable arrived the treated auditors just now we to past the based a to And it years be. couple our year and on way the And sort that's of working so we've estimate. of with expectation, which and that's be we've a that. And in

Gary. in that's what to, that's So reference

Gary Taylor

cash -- basis. so far. it's a Okay. accruals that But still Basically, that's you're treating -- on not

Unknown Executive

period the with recognize on. accrual of just that it we It's that's an treating understand it it question really as recognized. auditors it Sherif investors we're cash a the it's the and actually end in informative 'XX the is last it is, if But feel it's on working of call, at to the treated on and this to revenue. more to -- we able which and not far, And whether fact. not What it's are question basis an basis we're accrual before easier The our year. in be of the basis. or mentioned audit all in is end is So for it's today, something

Gary Taylor

But from this example, revenue, the different the sweep is booked it for you in is different? XQ,

Unknown Executive

sweep is the The current It that same. related booked the quarter revenue. year. that to really the of was 'XX in service 'XX closed, is was But since is this recognized revenue that dates second 'XX year was in

year. that year we standard helpful? from recall, to into it if So there's accruing recognized. 'XX, in trying no that think should systematic booked a 'XX, get accruing we booked And demonstrate -- it that much can In can get audit this back is back we be essentially basis And essentially on in is more sweeps. to do this track a once of an Is we the you sweeps. we that we the of year again what X to are

Gary Taylor

Yes, I think so.

And piece have typical that together seasonal this that think reflect EBITDA better, quarter so EBITDA would bit I of pattern to was seasonality. if I a little quarter, your would in that fourth showed would up profitability? be would worse, just the be correct? But is trying

Unknown Executive

the forward, going key. think correct, that's think here's Gary. I I And

of challenging think I point from to that that's whole think And makes it understand Going it forward, to bit the sort just degree. takes to it easier And model. little -- it this understand. a is of revenue I of the it just makes more smooths does choppiness this some what it to away get a out is,

Gary Taylor

pretty medical And on also have pretty in. on 'XX you size of depends Last us payer the the the don't margin is lot et be this to at of think I good this going that's line on obviously, cohort physician give new the sight at you point new by, I consensus. well guidance cetera. one improvement, to know whole for EBITDA XXXX year, contracts, mean of affiliations, but I above me. But impressive, a bring point. driven want you'd

-- we a So growth answer you'd 'XX I you focused you guess maybe the Is year medical on size revenue start again size? cohorts we Or new this? think in us slowed about of where materially Do down sort on could as growth about we 'XX do static think margin. or any you're of think thinking the next in what give year. fairly of accelerating the in sense direction kind

Sherif Abdou

Yes.

and on So meaningful EBITDA, growth -- improvement expect you in and we in shared we revenue with membership as XXXX. for

Operator

Our question William Blair. Daniels comes from Ryan next with

Ryan Daniels

new that growth with And in if member visible more how payers kind point lives, the the for meaning move we And signed? of going in I'm that to at-risk in curious visible this in at how at take XXXX? trail as point continue this the year, is you lives the REACH of growth with new to ACO the year question. we or I'm is you, do have partners look

Sherif Abdou

some counties. Ryan. the revenue with new any be We're just be as will of partnership give that's well. prepared will a growth There calculating we're to very visible, guidance meaningful any why comfortably not couple or other payers, items. membership -- It's be It EBITDA. will new It's comfortable on the

Ryan Daniels

financial million year-over-year, nicely corporate little but a The up a And obviously still then down questions. sequentially. of of cost everything. bit couple So about G&A $X

this I think we run Is of Or that that line do basis uptick. that nearly to lot good that? an pretty quarterly item. you we think our SG&A models? a hit rate? $X mentioned there a adjust on in explains go-forward was insurance need it's a which how But would assume for million, spend I should of of

Unknown Executive

No.

for quarter, So the I think you correctly. it hit

outside is -- to $X it million was of million of we it related had So quarter. closer actually about in a $X.X third the the of about quarter, to hit, periods

of quarter. forward, here, efficiency. we'll of normalized So little prioritization, that bit continually seen it going $X But is million, think of stressing -- of And focus I demonstration get you the kind how a on things one of a been think $X better. per over continued think just you've that's million about we've can a and some

the in past. way as be be company grows. is I going think seen will to a appropriate It's what think at much, a company. will OpEx grow for But in than more slower rate that a you've It's it grow going to the over time, much I disciplined. growing

to think we'll for but $X I starting I that gives you going around -- shave if some about see think the we'll specific out-of-period of still improvement you But quarter, more said, the bit a point, little you as into dollars, quarter. and that. -- I guidance third see that expecting think good So expect a sort I if fourth off million at give to in 'XX, I'm still -- of looked we'll

Ryan Daniels

question, helpful last that on like of very nomenclature a And on Because that to for over or than When the lives, the kind more can a and understanding impressive XXXX? make talk model some metrics platform start using. What remind want of been that's time. I defines platform of have of the those is complete that? the year that have No, you I the about sure are were the shows at us, just you lives though. persistent then you're power

So to understand I sure make I want that.

Sherif Abdou

to Our CMS what definition of persistent use. is similar

in life in the as call, year, platform on definition those said our that the consider persistent we that was 'XX, on of the I peristent of platform in December anybody again showed prior December lives. our that the patient the 'XX, that So of up January, December

months, have for XX of of beginning for have some some the have them been only month, a like months of here them for the year. since been been XX-plus Some of them

the that's distance. So

Ryan Daniels

for but you for have them patients are cohort? an calculated. age that average don't you age the on they've of know if do on I years. were And persistent something that that that's some given you that cohort in multiple Do of know December, of been

Sherif Abdou

I'm sure somebody does.

by today. get day the can end it the to I you So of

of going matter a As really message analytics you does. get fact, somebody our it folks. with I'm the to Certainly, I'll I'll share to it and group. Yes,

Operator

Our BTIG. David next from comes question with Larsen

Unknown Analyst

for know more just Denny fully you to lives. on delegated Dave This if the ] you that is Larsen. [ see Congrats the Chen wanted on with the elaborate quarter. I could on opportunity

mentioned XX% that you think ranging I you're now. right around

expect percent reach what Just there XXXX. the to maybe opportunity and you by

Unknown Executive

say hi. and David [indiscernible] and you meet to Nice [indiscernible]. you, thank So

I the now, delegated are about lives So said, is XX%. like

about all We signed, the XX%, to contracts fully targeting are delegated. -- we and Pretty that I want we say are with targeting to others XX%. -- new reach to Skin the like much are

fully So is in lot that of signed that a Humana we Nevada growth delegated. and

fully this So grow we're those. delegated with will come to all in hoping and

Centene XX% discussion are We have. and [ that we with XX% head United the lives the be Aetna that mark. we will and in That other convert, ] then of to would

So that have. the trajectory we that is

Unknown Analyst

generally start be with then business, mentioned lower That margins MA, I REACH up Okay. just equal ramp that of the the better. great. or on And they think out they side ACO to but than you've before sounds even

Just any on time thoughts that line the to and ramping? opportunity

William Bettermann

], is [ Bill. Denny this

that that on the coming actually are the Advantage of time, just recent But So is see data REACH seen ACO in we've quite actually, to grow profitable. Medicare some our even we lives over new overall, like they as lives. continue

will persistent those lives with we ACO well the So we as lives nice in coming REACH very ACO see actually REACH see as a new our years. pop that

Unknown Analyst

Okay. inpatient the on like terms thoughts any utilization last some for in maybe outpatient me. Great. trends? details versus the And of on current And thoughts utilization Any one GLP-X. just and

Amir Bacchus

Dr. Bacchus here.

that to over as mean, curve last expenditures far very, of are very as We down by this people year bend with. with cost I actually we've were we who concerned down. able been So the X% said,

things clinical use for, other the our alone. sugar something that right to of but GLP-X we to just question. cardiovascular have we do people lot Yes, GLP-X see for regards GLP-Xs, that GLP-Xs blood jumping weight in are for utilizing patients see things not improvements the potential disease we're also for necessarily are So like seeing nice loss a like to and populations that. It not being you commercial necessarily it's in that using senior that populations, population where is and

So we our covered say, I'll senior little that manage. bit, we are a populations with

like plans. that, an work continue standpoint inpatient our From we do and and to things with

do [ We fully have not opportunities where some are UM ] also lives we only do delegated. to those able especially concurrent review, we're not on but delegated

plans to So direct utilization, hospitalization it's well to improve whether work we'll do even with continue that or and as post inpatient our acute.

our maximize care are those who risk able are with at to patients directly stratify our look management with directly that well population access. So and so our well our our populations being risk in teams rising that very, all those to as cost, that understand high populations we very very markets, are working at as risk, risk and CMOs but their high providers to are only care not things

these expense, real 'XX. medical all actions good into things down are some forward So that we we collectively that do have to going and drive

Sherif Abdou

of the the XX life age, question average is old. persistent the way, age the the years about by Ryan,

Operator

like remarks. the our to would Sherif over Abdou, closing for turn Dr. any session. concludes This to question-and-answer I conference

Sherif Abdou

Thank operator. you,

the with shared to reaffirm before. XX%. we medical and for shared I for EBITDA as margin with up 'XX you today, XX% revenues So guidance you I

X% for than Our expense Medicare claims and year, the lower lives, our margin last XXX% is Advantage improved. medical was negative, it better, medical

Our better year. the gross is last than million quarter profit same $XX it was

improved Our XX% lower OpEx is year-over-year. XX% to and

to EBITDA XXXX is down you $X to $XX the positive and for adjusted XX% Our preliminary cash losses for our burn also of million year shared entire last to million guidance quarter, compared our is with million XXXX. positive EBITDA We've $XX better.

that, all you very thank our and I forward much conversation. next look With to

Operator

The now presentation. conference Thank for attending you concluded. today's has

You may now disconnect.

P3 Health Partners (PIII) 8 Nov 232023 Q3 Earnings call transcript