Business
Alignment Healthcare Reports Strong First Quarter 2023 Results; Exceeds Outlook Across All Four Critical KPIs
Reports $439.2 million in total revenue, up 27.1% year-over-yearMedicare Advantage enrollment increases to approximately 109,700 membersDelivers consistent
About this update from Alignment Healthcare, Inc.
[{"type":"text","content":"Reports $439.2 million in total revenue, up 27.1% year-over-yearMedicare Advantage enrollment increases to approximately 109,700 membersDelivers consistent performance underpinned by strong care management capabilities and stable utilization trends ORANGE, Calif., May 04, 2023 (GLOBE NEWSWIRE) -- Alignment Healthcare, Inc. (NASDAQ: ALHC), a tech-enabled Medicare Advantage company, today reported financial results for its first quarter ended March 31, 2023. “Alignment Healthcare’s first quarter results demonstrate robust performance across our markets, exceeding guidance on our four key metrics – membership, revenue, adjusted gross profit and adjusted EBITDA – by putting clinical excellence at the center of the member experience,” said John Kao, founder and CEO. “I am proud of our employees’ commitment to service with heart as we continue to grow.” First Quarter 2023 Financial HighlightsAll comparisons, unless otherwise noted, are to the three months ended March 31, 2022. Health plan membership at the end of the quarter was approximately 109,700, up 16.5% year over yearTotal revenue was $439.2 million, up 27.1% year over yearHealth plan premium revenue of $399.7 million represented 20.8% growth year over yearAdjusted gross profit was $45.4 million and loss from operations was ($32.5) million Adjusted gross profit excludes depreciation and amortization of $5.0 million and selling, general, and administrative expenses of $70.4 million (which includes $19.5 million of equity-based compensation). Adjusted gross profit also excludes an additional $2.5 million of equity-based compensation recorded within medical expensesMedical benefits ratio based on adjusted gross profit was 89.7% Adjusted EBITDA was ($5.2) million and net loss was ($37.4) million Adjusted Gross Profit is reconciled as follows: Three Months Ended March 31, 2023 2022 (dollars in thousands) Loss from operations $(32,489) $(36,475) Add back: Equity-based compensation (medical expenses) 2,524 3,121 Depreciation (medical expenses) 61 43 Depreciation and amortization 4,921 3,950 Selling, general, and administrative expenses 70,408 74,293 Total add back 77,914 81,407 Adjusted gross profit $45,425 $44,932 Adjusted gross profit % 10.3% 13.0% Medical benefit ratio 89.7% 87.0% Adjusted EBITDA is reconciled as follows: Three Months Ended March 31, 2023 2022 (dollars in thousands...