Agilon Health, Inc. · NYSE:AGL
Agilon Health — Q3 2024 Earnings Presentation
15 slides from Agilon Health's earnings presentation, Nov 7, 2024
Slide 1: Third Quarter 2024 Earnings Results
Third Quarter 2024 Earnings Results November 7, 2024 Copyri ght © 2024 agilon health
Slide 2: Disclaimers and Forward-Looking Statements
Disclaimers and Forward-Looking Statements FORWARD-LOOKING STATEMENTS AND OTHER INFORMATION Statements in this presentation that are not historical factual statements are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Slide 3: Key Takeaways
Key Takeaways Strengthening the business for long-term success Taking key actions to drive improved profitability, improve execution and further strengthen our business Business fundamentals and demand are strong despite macro headwinds Improving baseline mix exiting 2024 and stronger jumping off po
Slide 4: Strengthening the Business for Long-Term Success
Strengthening the Business for Long-Term Success Core business fundamentals are strong and there is a significant TAM • >80% of Year 1+ partnerships estimated market AEBITDA positive (incurred) for ‘24 • Class of ‘24 performing at high end of typical year one market medical margin range • Class of ‘
Slide 5: 2024 Key Updates Driving 2025 Step Off
2024 Key Updates Driving 2025 Step Off Prior Guidance at Q2 Updated Guidance at Q3 (Midpoint) (Midpoint) Number of Partnerships • EOY ’24 26 24 • Class of ‘25 New Partnerships 5 4 Membership (MA) • EOY ‘24 519K 527K • Impact of planned partnership exits EOY ‘24 -- (45K - 75K) • Class of ’25 New Part
Slide 6: 2024 Medical Margin Bridge - Change from Aug 6 Guidance
2024 Medical Margin Bridge - Change from Aug 6 Guidance Medical Margin Guidance Bridge for Full Year 2024 Mid-year RAF info. received from payor partners during PYD driven primarily by Q3 Elevated costs from Q3 updated statement data leading to increased Q4 regarding Part D costs projection and fina
Slide 7: 2024 AEBITDA Bridge - Change from Aug 6 Guidance
2024 AEBITDA Bridge - Change from Aug 6 Guidance AEBITDA Guidance Bridge for Full Year 2024 Note: We have not reconciled guidance for Medical Margin to Gross Profit or Adjusted EBITDA to Net Income (Loss), the most comparable GAAP measures, and have not provided forward-looking 7 guidance for Net In
Slide 8: 2024 Medical Margin Bridge
2024 Medical Margin Bridge 2024 Medical Margin Step Off – Breakout of Prior Year Development • Prior Year Development (~$100M) • Primarily driven by Part D and risk adjustment settlements (~$80M) • Medical expenses through Q3 (~$20M). • Q1 ($19M), Q2 ($21M), Q3 ($60M) • Partnerships/Contracts Exits
Slide 9: 2024 AEBITDA Bridge
2024 AEBITDA Bridge 2024 AEBITDA Step Off – Breakout of Prior Year Development • The AEBITDA impact from the prior year development within medical margin (~$100M) is partially offset by a corresponding decrease in partner physician incentives. • The net AEBITDA impact post adjustment in partner phys
Slide 10: Q3 2024 Results and Change Drivers
Q3 2024 Results and Change Drivers Q3 ’24 Guidance Q3 ’24 Results Key Change Drivers (as of Aug 6,2024) • Outperformed expectations driven by same Medicare Advantage Members 514,000-516,000 525,000 geo and new market membership growth. • Largely Part D and Risk adjustment updates Total Revenues ($M)
Slide 11: Financial Outlook for Q4 2024
Financial Outlook for Q4 2024 Quarter Ending December 31, 2024 Medicare Advantage Members 526,000 – 528,000 ACO REACH Members 127,000 – 129,000 Total Members Live on Platform 653,000 – 657,000 Avg. Medicare Advantage Members 526,000 – 527,000 Total Revenues ($M) $1,512 – $1,527 Medical Margin ($M) $
Slide 12: Financial Outlook for Fiscal Year 2024
Financial Outlook for Fiscal Year 2024 Year Ending December 31, 2024 Updated Guidance Previous Guidance Medicare Advantage Members 526,000 – 528,000 518,000 – 520,000 ACO REACH Members 127,000 – 129,000 123,000 – 128,000 Total Members Live on Platform 653,000 – 657,000 641,000 – 648,000 Avg. Medicar
Slide 13: Appendix
Appendix Copyri ght © 2024 agilon health 13
Slide 14: Non-GAAP Reconciliations
Non-GAAP Reconciliations Medical Margin (Dollars in thousands) Quarter Ending September 30, 2024 2023 Gross profit(1) $ (64,167) $ 36,839 Other operating revenue (3,235) (3,406) Other medical expenses 9,149 77,153 Medical margin (58,253) 110,586 1) Gross profit is defi ned as total revenues less med
Slide 15: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted EBITDA (Dollars in thousands) Three Months Ended September 30, 2024 2023 Net income (loss)(1) $ (117,615) $ (31,483) (Income) loss from discontinued operations, net of income taxes 1,183 9,444 Interest expense 1,622 1,617 Income tax expense (benefit) (590) 1,210 Dep