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Sep 30, 2023

Oncology Institute Q3 2023 Earnings Report

Reported strong growth with increased gross profit and reduced SG&A expenses.

Key Takeaways

The Oncology Institute reported a 26% increase in consolidated revenue, reaching $82 million for Q3 2023. Gross profit increased by 23% to $16 million, while the company experienced a net loss of $17.4 million. The company reaffirmed its full year 2023 guidance.

Consolidated revenue increased by 26% to $82 million compared to the prior year quarter.

Gross profit increased by 23% to $16 million compared to the prior year quarter.

Net loss was $17.4 million, compared to a net loss of $2.7 million for the prior year quarter.

The company opened its 70th clinic and added 5 physicians, bringing the total provider count to 112.

Total Revenue
$82M
Previous year: $65M
+26.3%
EPS
-$0.19
Previous year: -$0.17
+11.8%
Gross Profit
$16M
Previous year: $44.6M
-64.1%
Cash and Equivalents
$27.5M
Previous year: $61.4M
-55.2%
Free Cash Flow
-$9.24M
Previous year: -$21.6M
-57.2%
Total Assets
$218M
Previous year: $284M
-23.1%

Oncology Institute

Oncology Institute

Oncology Institute Revenue by Segment

Forward Guidance

The Oncology Institute reaffirmed its fiscal year 2023 guidance.

Positive Outlook

  • Revenue between $290 to $320 million, representing approximately 15% to 27% growth over 2022 revenue
  • Gross Profit between $60 to $70 million
  • Adjusted EBITDA between $(25) to $(28) million
  • Value-based lives between 1.75 million to 2.0 million lives
  • Expects interest expense in the range of $4 million to $5 million

Challenges Ahead

  • Uncertainties regarding taxes
  • Share-based compensation
  • Goodwill impairment charges
  • Change in fair value of liabilities
  • Unrealized (gains) losses on investments

Revenue & Expenses

Visualization of income flow from segment revenue to net income