Business
Alignment Healthcare Reports Second Quarter 2023 Results; Beats Outlook Across All Four Critical KPIs
Reports $462.4 million in total revenue, up 26.2% year-over-yearMedicare Advantage enrollment increases to approximately 112,200 members, up 17%
About this update from Alignment Healthcare, Inc.
[{"type":"text","content":"Reports $462.4 million in total revenue, up 26.2% year-over-yearMedicare Advantage enrollment increases to approximately 112,200 members, up 17% year-over-year ORANGE, Calif., Aug. 03, 2023 (GLOBE NEWSWIRE) -- Alignment Healthcare, Inc. (NASDAQ: ALHC), a tech-enabled Medicare Advantage company, today reported financial results for its second quarter ended June 30, 2023. “Our employees continue to deliver results by putting our members first, helping us to beat guidance across all four of our key metrics, including membership, revenue, adjusted gross profit and adjusted EBITDA,” said John Kao, founder and CEO. “We are making our mission of changing health care one person at a time a reality.” Second Quarter 2023 Financial HighlightsAll comparisons, unless otherwise noted, are to the three months ended June 30, 2022. Health plan membership at the end of the quarter was approximately 112,200, up 17.0% year over yearTotal revenue was $462.4 million, up 26.2% year over yearHealth plan premium revenue of $424.7 million represented 21.0% growth year over yearAdjusted gross profit was $53.6 million and loss from operations was ($23.7) million Adjusted gross profit excludes depreciation and amortization of $5.3 million and selling, general, and administrative expenses of $70.2 million (which includes $13.9 million of equity-based compensation). Adjusted gross profit also excludes an additional $1.8 million of equity-based compensation recorded within medical expensesMedical benefits ratio based on adjusted gross profit was 88.4% Adjusted EBITDA was ($2.1) million and net loss was ($28.5) million Adjusted Gross Profit is reconciled as follows: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (dollars in thousands) Loss from operations $(23,659) $(6,648) $(56,148) $(43,123)Add back: Equity-based compensation (medical expenses) 1,767 1,718 4,291 4,839 Depreciation (medical expenses) 69 49 130 92 Depreciation and amortization 5,195 4,180 10,116 8,130 Selling, general, and administrative expenses 70,199 61,673 140,607 135,966 Total add back 77,230 67,620 155,144 149,027 Adjusted gross profit $53,571 $60,972 $98,996 $105,904 Adjusted gross profit % 11.6% 16.6% 11.0% 14.9%Medical benefit ratio 88.4% 83.4% 89.0% 85.1% Adjusted EBITDA is reconciled as follows: Three Months Ended June 30, Six Months Ended June 30, 2023 202...