agilon health Q1 2023 Earnings Report
Key Takeaways
agilon health reported a strong first quarter in 2023, with a 74% increase in revenue to $1.14 billion and a 61% increase in Medicare Advantage membership to 402,200. The company's net income rose to $16 million, and gross profit increased to $77 million.
Total members on the agilon platform increased to 490,900, including 402,200 Medicare Advantage members and 88,700 ACO REACH beneficiaries.
Total revenue increased by 74% to $1.14 billion compared to $653 million in the first quarter of 2022.
Medical Margin increased by 88% to $162 million, representing 14.3% of revenue.
Adjusted EBITDA was $24 million, including $12 million in geography entry costs.
agilon health
agilon health
agilon health Revenue by Segment
Forward Guidance
agilon health provided guidance for the second quarter and fiscal year 2023, including expectations for Medicare Advantage members, ACO REACH members, total members, total revenues, medical margin, and Adjusted EBITDA.
Positive Outlook
- Medicare Advantage Members: Expect between 403,000 and 405,000 for Q2 2023, and between 405,000 and 410,000 for FY 2023.
- ACO REACH Members: Expect between 85,000 and 90,000 for both Q2 and FY 2023.
- Total Members Live on Platform: Expect between 488,000 and 495,000 for Q2 2023, and between 490,000 and 500,000 for FY 2023.
- Total Revenues: Expect between $1,105 million and $1,115 million for Q2 2023, and between $4,410 million and $4,440 million for FY 2023.
- Adjusted EBITDA contribution from ACO REACH is expected in a range of $5 million to $10 million for 2023.
Challenges Ahead
- Medical Margin: Expect between $138 million and $148 million for Q2 2023, and between $535 million and $560 million for FY 2023.
- Adjusted EBITDA: Expect between $2 million and $10 million for Q2 2023, and between -$3 million and $25 million for FY 2023.
- Geography Entry Costs: Expect between $19 million and $16 million for Q2 2023, and between $78 million and $65 million for FY 2023.
- Guidance for Medical Margin to Gross Profit or Adjusted EBITDA to net income (loss) not reconciled.
- Forward-looking guidance for net income (loss) not provided.
Revenue & Expenses
Visualization of income flow from segment revenue to net income