Q3 2024 agilon health inc Earnings Call Transcript
Key Points
- Agilon Health Inc (AGL) reported a 37% year-over-year increase in membership, reaching 525,000 members, driven by strong same geography growth and new partner expansion.
- Total revenue grew by 28% to $1.45 billion, with an increase in full-year revenue guidance from $6.025 billion to $6.057 billion.
- The company is taking strategic actions to exit unprofitable partnerships and payer contracts, which is expected to improve the business mix and profitability.
- Agilon Health Inc (AGL) has secured improved economic terms and additional incentive dollars tied to quality performance for 40% of its membership up for renewal.
- The company has a strong cash position with $399 million in cash and marketable securities, and plans to achieve break-even cash flow by 2027.
- Agilon Health Inc (AGL) reported a third-quarter medical margin loss of $58 million, below expectations due to prior period revenue settlements and higher medical expenses.
- The company lowered its 2024 medical margin guidance to $225 million, down from the previous low end of $400 to $450 million.
- Adjusted EBITDA loss for the third quarter was $96 million, attributed to lower medical margin and higher medical expenses.
- Agilon Health Inc (AGL) is facing challenges with risk adjustment and part D costs, leading to unfavorable prior period development.
- The company expects to use approximately $165 million in cash for the year, higher than previous expectations, due to increased prior period development.
Good afternoon and thank you for joining the agilon health third-quarter, 2024 earnings conference call. My name is Kate and I will be the moderator for today's call at this time. (Operator Instructions)
I would now like to turn the call over to Leland Thomas with agilon health. Leland, you may proceed.
Thank you operator. Good afternoon and welcome to the call with me is our CEO Steve Sell and our CFO Jeff Schwanke.
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 SCC 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
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