Bright Health Group Reports Third Quarter 2022 Results
-
Revenue of
, up$1.6 billion 51.3% from Q3'21, GAAP Net Loss of , Adjusted EBITDA Loss of$259.4 million $82.9 million
-
Q2’22 Enterprise Medical Cost Ratio of
90.6% , a strong improvement from the prior year
-
Lowering Full Year 2022 Enterprise Medical Cost Ratio guidance range to
90% to92%
-
Positively revising Full Year 2022 Adjusted EBITDA loss guidance range to
to$550 $700 million
“Bright Health Group continued to deliver against our financial targets in the Third Quarter and we have confidence in our improved guidance for the year,” said
Key Metrics
|
As of |
||
|
2022 |
|
2021 |
Consumer and Patient Metrics |
|
|
|
Bright HealthCare Commercial Consumers |
1,025,000 |
|
600,000 |
Medicare Advantage Consumers |
125,000 |
|
110,000 |
NeueHealth Value-Based Patients |
520,000 |
|
170,000 |
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
($ in thousands) |
|
|
|
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Financial Metrics |
|
|
|
|
|
|
|
||||||||
Revenue |
$ |
1,632,292 |
|
|
$ |
1,078,657 |
|
|
$ |
5,044,495 |
|
|
$ |
3,067,055 |
|
Medical Cost Ratio (1) |
|
90.6 |
% |
|
|
103.0 |
% |
|
|
87.9 |
% |
|
|
90.3 |
% |
Operating Cost Ratio |
|
18.2 |
% |
|
|
28.7 |
% |
|
|
22.3 |
% |
|
|
25.4 |
% |
GAAP Net Loss (2) |
$ |
(259,361 |
) |
|
$ |
(296,722 |
) |
|
$ |
(691,320 |
) |
|
$ |
(364,990 |
) |
Adjusted EBITDA (non-GAAP) |
$ |
(82,929 |
) |
|
$ |
(292,176 |
) |
|
$ |
(352,620 |
) |
|
$ |
(399,769 |
) |
(1) |
Medical Cost Ratio for the three months ended |
|
(2) |
GAAP Net Loss for the three months ended |
|
See the table at the end of this release for additional information and a reconciliation of the non-GAAP measure used in the table above. |
Financial Outlook
For full year 2022,
-
Bright Health Group’s total Revenue is expected to be
with an expected enterprise Medical Cost Ratio between$6.8 billion 90% and92% . -
On a segment basis,
Bright HealthCare combined Commercial and Medicare Advantage end-of-year membership is expected to be over 1,000,000, while NeueHealth Revenue is expected to be approximately .$2.2 billion -
Intercompany Revenue elimination, comprised of payments from
Bright HealthCare to NeueHealth for managing patient care and for network services, is expected to be approximately .$1.2 billion -
Adjusted EBITDA for 2022 is expected to be a loss of between
and$500.0 million †.$700.0 million
Earnings Conference Call
As previously announced,
About
Notes
† A reconciliation of the projected Adjusted EBITDA, which is a forward-looking non-GAAP financial measure, to the most directly comparable GAAP financial measures, is not provided because the Company is unable to provide such reconciliation without unreasonable effort. The inability to provide a reconciliation is due to the uncertainty and inherent difficulty predicting the occurrence, the financial impact and the periods in which the non-GAAP adjustments may be recognized. These GAAP measures may include the impact of such items as interest expense, income tax expense, depreciation and amortization, impairment of goodwill or intangible assets, share-based compensation expense, transaction costs, changes in the fair value of contingent consideration, changes in the fair value of equity securities, contract termination costs, restructuring costs; and the tax effect of all such items. Historically, the Company has excluded these items from non-GAAP financial measures. The Company currently expects to continue to exclude these items in future disclosures of non-GAAP financial measures and may also exclude other items that may arise (collectively, “non-GAAP adjustments”). The decisions and events that typically lead to the recognition of non-GAAP adjustments, such as a decision to exit part of the business, are inherently unpredictable as to if or when they may occur. For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could be material to future results.
Forward-Looking Statements
Statements made in this release that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements and should be evaluated as such. Forward-looking statements include information concerning possible or assumed future results of operations, including descriptions of our business plan and strategies. These statements often include words such as “anticipate,” “expect,” “plan,” “believe,” “intend,” “project,” “forecast,” “estimates,” “projections,” “outlook,” and other similar expressions. These forward-looking statements include any statements regarding our plans and expectations with respect to
Condensed Consolidated Balance Sheets (in thousands, except share and per share data) (Unaudited) |
|||||||
|
|
|
|
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
1,605,525 |
|
|
$ |
1,061,179 |
|
Short-term investments |
|
299,897 |
|
|
|
193,835 |
|
Accounts receivable, net of allowance of |
|
120,489 |
|
|
|
113,474 |
|
Direct contracting performance year receivable |
|
234,776 |
|
|
|
— |
|
Prepaids and other current assets |
|
377,214 |
|
|
|
291,712 |
|
Total current assets |
|
2,637,901 |
|
|
|
1,660,200 |
|
Other assets: |
|
|
|
||||
Long-term investments |
|
865,677 |
|
|
|
675,192 |
|
Property, equipment and capitalized software, net |
|
47,938 |
|
|
|
38,344 |
|
|
|
761,285 |
|
|
|
835,140 |
|
Intangible assets, net |
|
263,265 |
|
|
|
343,860 |
|
Other non-current assets |
|
36,061 |
|
|
|
45,603 |
|
Total other assets |
|
1,974,226 |
|
|
|
1,938,139 |
|
Total assets |
$ |
4,612,127 |
|
|
$ |
3,598,339 |
|
Liabilities, Redeemable Noncontrolling Interest, Redeemable Preferred Stock and Shareholders’ Equity (Deficit) |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Medical costs payable |
$ |
975,126 |
|
|
$ |
817,975 |
|
Accounts payable |
|
111,272 |
|
|
|
118,140 |
|
Unearned revenue |
|
195,892 |
|
|
|
53,295 |
|
Risk adjustment payable |
|
1,308,959 |
|
|
|
931,170 |
|
Direct contracting performance year obligation |
|
155,145 |
|
|
|
— |
|
Short-term borrowings |
|
303,947 |
|
|
|
155,000 |
|
Other current liabilities |
|
201,014 |
|
|
|
207,238 |
|
Total current liabilities |
|
3,251,355 |
|
|
|
2,282,818 |
|
Other liabilities |
|
33,121 |
|
|
|
41,994 |
|
Total liabilities |
|
3,284,476 |
|
|
|
2,324,812 |
|
Commitments and contingencies (Note 11) |
|
|
|
||||
Redeemable noncontrolling interests |
|
211,026 |
|
|
|
128,407 |
|
Series A redeemable preferred stock, |
|
747,481 |
|
|
|
— |
|
Shareholders’ equity (deficit): |
|
|
|
||||
Common stock, |
|
63 |
|
|
|
63 |
|
Additional paid-in capital |
|
2,939,820 |
|
|
|
2,861,243 |
|
Accumulated deficit |
|
(2,476,822 |
) |
|
|
(1,700,851 |
) |
Accumulated other comprehensive loss |
|
(81,917 |
) |
|
|
(3,335 |
) |
Treasury Stock |
|
NeueHealth, Inc.
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Direct Life Insurance Carriers
Finance and Insurance
United States
Minneapolis
|