Q1 2024 agilon health inc Earnings Call Transcript
Key Points
- MA membership grew by 43% to 523,000 members, demonstrating strong market expansion.
- Revenue increased by 52% to $1.604 billion, indicating robust financial growth.
- Adjusted EBITDA grew by 21% to $29 million, surpassing guidance expectations.
- Agilon Health Inc (AGL) is making tangible progress in executing its performance action plan, enhancing payer relationships and operational efficiency.
- The company has successfully negotiated favorable terms in payer contracts, including off-cycle rate increases and retroactive economic terms, which are expected to improve profitability.
- Both membership and revenue growth were at the lower end of guidance ranges due to delays in signing new payer contracts.
- Medical margin grew only by 1% to $157 million, with an in-quarter medical cost trend of 9.1%, which is higher than previous trends.
- The company decided to exit certain unprofitable payer contracts, reflecting challenges in maintaining profitability in some areas.
- There is ongoing uncertainty in the Medicare program funding environment, which could impact future financial stability.
- Agilon Health Inc (AGL) is still in the process of searching for a new CFO and CMO, indicating potential gaps in leadership.
Hello, everyone, and welcome to the agilon health First Quarter 2024 Earnings Conference. My name is Seth, and I'll be the operator for your call today. (Operator Instructions)
I will now hand the floor over to Matthew Gillmor to begin the call. Please go ahead.
Thank you, operator. Good afternoon, and welcome to the call. With me is our CEO, Steve Sell; and our CFO, Tim Bensley. Following our prepared remarks, we will conduct a Q&A session.
Before we begin, I'd like to remind you that our remarks and responses to questions may include forward-looking statements. Actual results may differ materially from those stated or implied by forward-looking statements due to risks and uncertainties associated with our business. These risks and uncertainties are discussed in our SEC filings. Please note that we assume no obligation to update any forward-looking statements.
Additionally, certain financial measures we will discuss in this call are non-GAAP financial measures. We believe
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