Bright Health — Q4 2021 Earnings Presentation
18 slides from Bright Health's earnings presentation, Mar 2, 2022
Slide 1: Bright Health Group Fourth Quarter 2021 Earnings Presentation
Bright Health Group Fourth Quarter 2021 – Earnings Presentation March 2, 2022
Slide 2: Disclaimer
Disclaimer Statements made in this presentation that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements, and should be evaluated as such. Forward-looking statements include information concerning possible or assumed future r
Slide 3: Our Mission
Our Mission Making Healthcare Right. Together. Our Vision Through powerful relationships with Care Partners, we help all people live __ healthy and brighter lives.
Slide 4: Key Themes
4 Key Themes Uniquely Challenging Year in 2021 Focused Action to Improve Near- Term Performance Tailwinds Supporting 2022 Performance Optimizing and Refining our Model for Long-term Success Continue to Target 2024 Breakeven Adjusted EBITDA
Slide 5: Bright Health Group Overview
Bright Health Group Overview Building a technology-enabled, Fully Aligned national Integrated System of Care (ISoC) personalized for consumers 5 Integrated Care Delivery 2022 Footprint Across 17 States $6.8 - $7.1 Billion Bright Health Group 2022E Revenue ~$2.3B NeueHealth 2022E Revenue >1M Bright H
Slide 6: Overview of Q4 2021 Results
Overview of Q4 2021 Results Bright Health Group continued to demonstrate robust growth, while medical costs were impacted COVID and PPD 6 Revenue Gross Margin(1) Adjusted EBITDA(2)(3) Enterprise Metrics ($M) Medical Cost Ratio and Key Considerations (1) Defined as total revenue less medical costs (2
Slide 7: Overview of YTD December 2021 Results
Overview of YTD December 2021 Results We believe YTD results are a better gauge of core business performance given large out-of-period adjustments in Q4 2021 7 Revenue Adjusted EBITDA(1)(2)Operating Cost Ratio (1) Net Loss and Adjusted EBITDA were inclusive of the impact of a $102.8 million Premium
Slide 8: Medical Cost Ratio Bridge: Full Year 2020 to Full Year 2021
Medical Cost Ratio Bridge: Full Year 2020 to Full Year 2021 8 2020 to 2021 Bridge: Medical Cost Ratio (MCR) Note: Totals may not tie to the sum of the components due to rounding 84.7% 96.0% 88.7% 6.5% 3.1% 1.8% 101.3% 4.0% 1.3% 5.3% 2020 MCR IFP Risk Adjustment Rate Medical Cost Management Challenge
Slide 9: Overview of 2020 and 2021 COVID Costs
$47 $35 $34 $56 $84 $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 Q1 Q2 Q3 Q4 2020 2021 COVID Expense Summary ($M) Overview of 2020 and 2021 COVID Costs Q4’21 COVID costs for Q4’21 dates of service meaningfully lower than Q3’21, but expenses impacted by charges from prior quarters 9 ~$208M of COVID Pressur
Slide 10: NeueHealth Continues to Expand Rapidly
NeueHealth Continues to Expand Rapidly Accelerated movement of consumers into Fully Aligned Integrated Systems of Care driving growth and performance 10 ($ in millions) YTD 12/31/2020 YTD 12/31/2021 YoY Growth Value-Based Patients(1) 21,126 175,587 731% Premium Revenue $7.8 $92.9 1092% Services Reve
Slide 11: Balance Sheet and Liquidity
Balance Sheet and Liquidity Highlights 11 • ~$1.9 billion in total cash and investments, including $198 million of non-regulated cash and short-term investments • Regulated insurance entities sufficiently capitalized at or above statutory minimums Summary Balance Sheet 2021 Year-End Liquidity Curren
Slide 12: 2022 Outlook
2022 Outlook 12 • Revenue of $6.8 – $7.1 billion • Medical Cost Ratio of 90% – 94% • Adjusted EBITDA of ($500) – ($800) million • Intercompany revenue elimination of $1.2 – $1.4 billion • AEP / OEP enrollment of over 1,000,000 members • End of year membership ~1,000,000 • Medical Cost Ratio of 88.5%
Slide 13: 2022 Adjusted EBITDA Bridge
2022 Adjusted EBITDA Bridge 13 Note: Totals may not tie to the sum of the components due to rounding Operating Expenses Reductions includes the impact of the $102.8 million of PDR booked in Q4’21 related to expected future losses in certain states in 2022. (1) A reconciliation of the projected Adjus
Slide 14: Focused Actions and 2022 Tailwinds
Focused Actions and 2022 Tailwinds Positioning for Positive Performance Acting against the challenges of hyper growth to deliver near-term stability and a continued growth platform 14 2022 Focused Actions Company and Market Tailwinds Endemic COVID Normalized Special Enrollment Period Higher Retained
Slide 15: Building the Country's Leading Consumer Retail Healthcare Model
Scaled and Diversified Platform Across the Financing and Delivery of Care1 Flexible Market Model that Serves Consumers Across Different Market Types 2 Differentiated NeueHealth Business to Enable Continued Growth and Performance 4 Building the Country’s Leading Consumer Retail Healthcare Model Layin
Slide 16: Appendix
Paes Bright Health Group Appendix
Slide 17: Non-GAAP Reconciliation: Adjusted EBITDA
Non-GAAP Reconciliation: Adjusted EBITDA 17 ($ in thousands) Three Months Ended Twelve Months Ended December 31, 2020 December 31, 2021 December 31, 2020 December 31, 2021 Net Loss ($163,832) ($813,375) ($248,442) ($1,178,365) Interest Expense -- 1,674 -- 7,956 Income Tax Expense (Benefit) 1 (8,296)
Slide 18: Slide 18