On November 8, 2023, P3 Health Partners Inc. (PIII, Financial), a patient-centered and physician-led population health management company, released its financial results for the third quarter ended September 30, 2023. The company reported a 16% increase in total revenue, reaching $288.4 million for the quarter, up from $248.3 million in the same quarter of the previous year. This growth was accompanied by a significant reduction in net loss, which decreased by 43% to $37.3 million in Q3, compared to a net loss of $65.3 million in the prior year's third quarter.
Financial Highlights and Performance
P3 Health Partners Inc. (PIII, Financial) demonstrated a robust financial performance with key metrics showing positive trends. The company's gross profit turned positive at $9.1 million, a substantial improvement from a negative $6.5 million in the previous year. The medical margin, a critical indicator of the company's profitability from capitation revenue after medical claims expenses, soared by 306.1% to $36.2 million in Q3, reflecting a more efficient management of medical costs.
Year-to-date figures also underscored the company's progress, with total revenue climbing to $919.5 million, a 16% increase from the prior year. The net loss for the nine-month period was $117.3 million, a significant improvement from a net loss of $1,029.2 million in the same period of the prior year, which included a substantial goodwill impairment charge.
Operational Efficiency and Future Outlook
Adjusted EBITDA loss for Q3 was $22.3 million, a 45% improvement from a loss of $40.3 million in the third quarter of the previous year. The company's management expressed confidence in the ongoing improvement of the business, with CEO Dr. Sherif Abdou stating,
Our results for the third quarter show the continued improvement of the business as providers and patients mature on our platform. All key metrics are tracking as expected and net cash used in operating activities has improved to negative $8 million for the quarter. We are re-affirming our existing full-year 2023 guidance and providing preliminary 2024 full-year Adjusted EBITDA guidance of $20 million to $40 million."
For the full year of 2023, P3 Health Partners Inc. (PIII, Financial) anticipates total revenues to be between $1,200 million and $1,250 million, with a projected medical margin of $155 million to $175 million and an Adjusted EBITDA loss of $50 million to $30 million.
Balance Sheet and Cash Flow
The balance sheet of P3 Health Partners Inc. (PIII, Financial) as of September 30, 2023, showed total assets of $896.9 million, with current assets including cash and restricted cash totaling $57.4 million. The company's liabilities stood at $395.9 million, with current liabilities accounting for $267.3 million. The company's cash flow statement indicated an improvement in net cash used in operating activities.
In conclusion, P3 Health Partners Inc. (PIII, Financial) has demonstrated a strong financial turnaround in the third quarter of 2023, with significant revenue growth and a substantial reduction in net loss. The company's reaffirmed guidance and preliminary outlook for 2024 suggest continued operational efficiency and potential profitability in the coming year. Investors and stakeholders can look forward to the company's sustained growth trajectory as it continues to optimize its platform and deliver value-based care.
For more detailed financial information and analysis, readers are encouraged to visit the company's Investor Relations site at ir.p3hp.org.
Explore the complete 8-K earnings release (here) from P3 Health Partners Inc for further details.
