Q4 2024 NeueHealth Inc Earnings Call
George Mikan, Jay Matushak, Emily Lombardi
Carly: Good morning and thank you for joining us for the new Health Q4 2020 Ford earnings conference call. My name is Carly and I'll be coordinating the call today. I'd like to hand over to your host, Emily Lombardi, the floor is yours.
Speaker Change: Good morning, and welcome to NeueHealth's fourth quarter 2024 earnings conference call. As a reminder, this call is being recorded. Leading the call today are NeueHealth's president and CEO , Mike Mikan and CFO , Jay Matushak.
Speaker Change: Before we begin, we want to remind you that this call may contain forward-looking statements under U.S. federal security laws.
Speaker Change: These statements are subject to risks and uncertainties that could cause actual results.
Speaker Change: The different materially from historical experience or present expectations, a description of some of the risks and uncertainties can be found in the reports that we file with the Securities and Exchange Commission, including the risk factors in our current and periodic reports, we file with the SEC.
Speaker Change: Except is required by law, we undertake no obligation to revise or update any forward letting statements or information.
Speaker Change: Information presented on this call is contained in such earnings release that we issued this morning in our form 8K dated March 20, 2025, and in the related presentation, each of which may be accessed from the investor relations page of the company's website.
Speaker Change: With that, I will now turn the conference over to NeueHealth's Chief Executive Officer, Mike Mikan.
Speaker Change: Good morning, everyone, and thank you for joining NeueHealth's fourth quarter 2024 earnings call.
Speaker Change: Today, we are pleased to report that we delivered our strongest year of financial performance to date in 2024.
Speaker Change: Providing a solid foundation for new health to continue to grow the consumers we serve, expand the relationships we've built with peer and provider partners, and advance our care model in 2025 and beyond.
Speaker Change: Since New Health was founded in 2020, we have maintained a relentless focus on making high-quality health care accessible and affordable for all populations.
Speaker Change: Developing a holistic and deep understanding of every person, we serve and becoming their ongoing trusted partner in care throughout their lifetime.
Speaker Change: Second we focus on proactively managing care through key consumer engagement and care management initiatives to drive better health outcomes, and importantly, empower consumers to take an active role in their health.
Speaker Change: Finally through our relationship based approach, we developed strong partnerships with providers and payers across the industry with a focus on aligning interests to create a better healthcare experience for all.
Speaker Change: In 2024, we served 483000 consumers representing a compound annual growth rate of 123% and our new care and new solutions segments since 2020.
Speaker Change: We are building on this momentum and have already generated significant growth to start 2025, serving 717000 consumers.
Speaker Change: Compared to 2024, we have grown the consumers we serve through our existing payer relationships by 31%.
Speaker Change: And in our recently expanded markets, we have grown the consumers we serve by 97%.
Speaker Change: In addition to start the year, we have secured new payer partnerships and expanded into new product verticals, including SSP.
Speaker Change: We believe that this growth demonstrates the momentum we are driving to start the year and positions us for continued success in 2025 and beyond.
Speaker Change: On December 23, 2024, we announced that we entered into a definitive agreement to be acquired by an affiliate of one of our largest investors NEA.
Speaker Change: Upon completion of this transaction, new health will become a privately held company.
Speaker Change: We believe that this transaction places new health in a strong position for continued growth, providing the company with the flexibility and resources to build on our success.
Speaker Change: The leader in value based care.
Speaker Change: We anticipate the transaction closing in the second quarter of 2025, assuming satisfaction of the necessary closing conditions.
Speaker Change: For additional information regarding the proposed transaction please consult our filings with the SEC.
Speaker Change: And then I'll hand, it over to Jay to provide additional details on our fourth quarter and full year performance.
Jay Matushak: Thank you, Mike and good morning, everyone I will now discuss our fourth quarter performance and full year results for our continuing consolidated new health business as well as each of our continuing new care and new solutions segments, then I'll review our balance sheet.
Jay Matushak: Our financials are included in our press release and will be included in our 10-K. Once it is filed and contain the results that include our discontinued operations.
Jay Matushak: Consolidated revenues for the fourth quarter was $232 6 million.
Jay Matushak: Full year consolidated revenue was $936 7 million, our fourth quarter gross margin was $47 7 million and $194 5 million for the full year.
Jay Matushak: For the fourth consecutive quarter in 2024, we achieved adjusted EBITDA profitability driving $5 5 million of adjusted EBITDA in the fourth quarter and $22 5 million of adjusted EBITDA for the full year.
Jay Matushak: As Mike mentioned in 'twenty 'twenty four we continued to grow the number of consumers served across our new care and new solutions segments.
Jay Matushak: 483000 consumers across the HCA marketplace, Medicare and Medicaid and we continue to see strong strategic growth opportunities in 2025.
Jay Matushak: And our new care segment revenue was $79 3 million in the fourth quarter and $313 7 million for the full year.
Jay Matushak: Fourth quarter operating income was $9 $2 million with full year operating income of $29 6 million.
Jay Matushak: Through our clinics in 2024, we served 318000 value based consumers.
Jay Matushak: As you recall, we expanded our operations in Central Florida earlier, this year leveraging existing relationships to grow our footprint and the consumers we serve.
Jay Matushak: We are continuing to evaluate similar market expansion opportunities in 2025 and beyond.
Jay Matushak: Turning now to our new solutions segment.
Jay Matushak: Four we continued to drive growth through our provider enablement business, which includes our suite of population health tools and capabilities as well as our ACO reach business.
Jay Matushak: New solutions revenue was $157 1 million in the fourth quarter and $635 1 million for the full year.
Jay Matushak: The new solution segment operating income was $3 1 million for the fourth quarter with operating loss of $5 $3 million for the full year.
Jay Matushak: And our provider enablement business, we grew the consumers we serve 123024, reflecting the strong relationships, we have established with provider groups and our ability to help them succeed and performance based arrangements.
Jay Matushak: In 2025, we are building on our experienced participating in innovative government programs. In addition to ACO reach we will also be participating in SSP. This year.
Jay Matushak: Now looking at our balance sheet as of December 31, 2024, we had $202 $8 million in total cash and investments including remarks in our regulated entities.
Jay Matushak: Our nonregulated cash and short term investments were $93 $2 million at the end of the fourth quarter, including $36 3 million of restricted cash and investments.
Mike Mikan: I'll now turn it over to Mike for some closing comments.
Mike Mikan: Thank you Jay.
Speaker Change: 2020 for what was a transformative year for new health.
Speaker Change: We devoted our full focus on where we have proven to have the greatest impact our care delivery and provider, enabling business segments. We advanced in Glu R value driven consumer centric care model to serve 483000 consumers and we delivered $22 $5 million of adjusted EBITDA our.
Speaker Change: <unk> financial performance to date.
Speaker Change: In 2025, we are focused on continuing to create a better healthcare experience for all as we look to drive strategic growth across our business prioritizing a few key areas.
Speaker Change: First we will look to continue to bring high quality affordable health care to more consumers with a focus on diversifying the populations we serve across product categories.
Speaker Change: Second we expect to continue to deepen our presence in the local communities, we serve as well as expand into new geographies, bringing our care model and local approach to more growing markets.
Speaker Change: Third we will look to continue to grow alongside our payer partners through the strong trusted relationships. We have built in addition to prioritizing growth with new payer groups.
Speaker Change: And finally, we intend to continue to build on our strong partnerships with providers meeting them, where they are on their path to participating in performance based arrangements.
Speaker Change: Pulling them to deliver the highest quality personalized care.
Speaker Change: Overall, we feel our relationship based approach and the trusted partnerships, we have established with consumers providers and payers across the industry gives us a strong platform to drive long term sustainable growth this year and beyond.
Speaker Change: I'm excited for our future and I believe we are entering 2025 and a very strong position.
Speaker Change: I've never been more confident in our ability to drive change across the health care industry and create an experience that is seamless and more coordinated for consumers providers and payers alike.
Speaker Change: Thank you to the entire new health team for your continued commitment to making the health care experience better for all I'm looking forward to all we will achieve together in 2025 and beyond.
Speaker Change: That concludes today's call. Thank you for joining and for your interest in new health.
Speaker Change: As we conclude today's call we'd like to thank everyone for joining you may now disconnect your lines.
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