Business
Alignment Healthcare Reports Second Quarter 2024 Results
Reports $681.3 million in total revenue, up 47.3% year-over-year Records strong Medicare Advantage membership growth, up 56.1% year-over-year to approximately
About this update from Alignment Healthcare, Inc.
[{"type":"text","content":"Reports $681.3 million in total revenue, up 47.3% year-over-year Records strong Medicare Advantage membership growth, up 56.1% year-over-year to approximately 175,100 members, beating expectationsIncreases year-end membership and revenue guidance, and maintains full-year adjusted gross profit and adjusted EBITDA guidance ORANGE, Calif., Aug. 01, 2024 (GLOBE NEWSWIRE) -- Alignment Healthcare, Inc. (NASDAQ: ALHC), today reported financial results for its second quarter ended June 30, 2024. “Our exceptional health plan membership growth and strong margin results in the second quarter show we’re doing Medicare Advantage right,” said John Kao, founder and CEO. “With the scale we have added year-to-date and strong execution on our margin objectives, we're now at an inflection point on both growth and profitability. I’m confident that the progress we’re making in 2024 is firmly positioning us for another robust year in 2025.” Second Quarter 2024 Financial HighlightsAll comparisons, unless otherwise noted, are to the three months ended June 30, 2023 Health plan membership at the end of the quarter was approximately 175,100, up 56.1% year over yearTotal revenue was $681.3 million, up 47.3% year over year. Revenue excluding ACO REACH was $682.0 million, up 57.8% year over yearAdjusted gross profit was $76.8 million and loss from operations was $(18.4) million Adjusted gross profit excludes depreciation and amortization of $6.5 million and selling, general, and administrative expenses of $87.9 million (which includes $16.0 million of equity-based compensation). Adjusted gross profit also excludes $0.02 million of restructuring costs and an additional $0.8 million of equity-based compensation recorded within medical expensesMedical benefits ratio based on adjusted gross profit was 88.7%. Adjusted EBITDA was $6.0 million and net loss was $(24.0) million Adjusted Gross Profit is reconciled as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (dollars in thousands) Loss from operations$(18,382) $(23,659) $(59,488) $(56,148)Add back: Equity-based compensation (medical expenses) 762 1,767 1,895 4,291 Depreciation (medical expenses) 46 69 98 130 Restructuring costs (medical expenses)(1) 21 — 796 — Depreciation and amortization 6,493 5,195 12,470 10,116 Selling, general, and administrative expenses 87,863 70,199 17...