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Sep 30, 2022

NeueHealth Q3 2022 Earnings Report

Reported financial results for the third quarter ended September 30, 2022.

Key Takeaways

Bright Health Group reported a revenue of $1.6 billion, a 51.3% increase from Q3 2021. The company experienced a GAAP Net Loss of $259.4 million and an Adjusted EBITDA Loss of $82.9 million. They are lowering the Full Year 2022 Enterprise Medical Cost Ratio guidance range to 90% to 92% and positively revising the Full Year 2022 Adjusted EBITDA loss guidance range to $550 to $700 million.

Revenue of $1.6 billion, up 51.3% from Q3'21.

GAAP Net Loss of $259.4 million.

Adjusted EBITDA Loss of $82.9 million.

Q2’22 Enterprise Medical Cost Ratio of 90.6%, a strong improvement from the prior year.

Total Revenue
$1.63B
Previous year: $1.08B
+51.3%
EPS
-$24.8
Previous year: -$38.4
-35.4%
Medical Cost Ratio
90.6%
Operating Cost Ratio
18.2%
Gross Profit
$193M
Previous year: $465M
-58.4%
Cash and Equivalents
$1.61B
Previous year: $956M
+67.9%
Free Cash Flow
-$621M
Previous year: -$274M
+126.6%
Total Assets
$4.61B
Previous year: $3.58B
+29.0%

NeueHealth

NeueHealth

NeueHealth Revenue by Segment

Forward Guidance

Bright Health Group expects total revenue of $6.8 billion and an enterprise Medical Cost Ratio between 90% and 92% for full year 2022. 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. Adjusted EBITDA for 2022 is expected to be a loss of between $500.0 million and $700.0 million

Positive Outlook

  • Total Revenue is expected to be $6.8 billion.
  • Enterprise Medical Cost Ratio between 90% and 92%.
  • Bright HealthCare combined Commercial and Medicare Advantage end-of-year membership is expected to be over 1,000,000.
  • 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.

Challenges Ahead

  • Adjusted EBITDA for 2022 is expected to be a loss of between $500.0 million and $700.0 million