NeueHealth (NEUE) 7 Nov 24 2024 Q3 Earnings call transcript

NeueHealth, a leading health care services provider, reported its strongest financial performance in the third quarter of 2024, setting the stage for continued growth and strategic expansion in the coming year. In a recent earnings call, NeueHealth's President and CEO, Mike Mikan, and CFO, Jay Matushak, highlighted the company's achievements and outlined its plans for future growth.

Financial Performance and Market Expansion

NeueHealth's financial performance for Q3 2024 marked a significant milestone, with adjusted EBITDA of $9.4 million, exceeding expectations and placing the company within its full year guidance range. The company's revenue for the quarter was $232.9 million, with gross margin of $50.2 million. This performance reflects NeueHealth's ability to attract and retain a growing consumer base, now totaling approximately 509,000 consumers, an increase of over 30% compared to the same quarter in 2023.

Strategic Growth Initiatives

Looking ahead, NeueHealth is focused on diversifying and growing its consumer base across various product categories, including the ACA Marketplace, Medicare, and Medicaid. The company's strategic expansion into Central Florida earlier this year, in partnership with payer partners, underscores its commitment to delivering high-quality, personalized care to a broader consumer base. NeueHealth also aims to grow its relationships with a diverse set of providers, tailoring its population health tools and capabilities to suit their unique needs.

Financial Outlook for 2025 and Beyond

NeueHealth expects to continue its positive momentum into 2025, with a confirmed outlook for enterprise adjusted EBITDA between $15 million and $25 million, and consolidated revenue of approximately $950 million. The company anticipates serving between 475,000 and 500,000 consumers across its NeueCare and NeueSolutions segments, with a focus on increasing value-based care across both segments.

ACA Insurance Business Wind Down and Balance Sheet

NeueHealth's financial health is also reflected in its balance sheet, with total cash and investments of $242.3 million as of September 30, 2024. The company's non-regulated cash and short-term investments stood at $119.2 million, demonstrating its financial strength and readiness for strategic growth.

Conclusion

NeueHealth's strong financial performance in Q3 2024, coupled with its strategic growth initiatives and solid financial outlook for 2025 and beyond, position the company for continued success in the health care industry. With a focus on value-driven care, strong partnerships, and a commitment to consumer-centric services, NeueHealth is poised to drive innovation and bring a better health care experience to more consumers.