Babylon Holdings Limited · OTC:BBLNF
Babylon — FY2022 Earnings Presentation
16 slides from Babylon's earnings presentation, Mar 9, 2023
Slide 1: Q4 and FY 2022 Earnings
1 Q4 and FY 2022 Earnings March 9, 2023 Putting an accessible and affordable quality health service in the hands of every person on Earth
Slide 2: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures Adjusted EBITDA, Adjusted EBITDA Margin, Medical Loss Ratio, Medical Margin and Cost of Care Delivery Margin are non-GAAP measures. An explanation of non-GAAP measures, a reconciliation of Adjusted EBITDA to the most comparable GAAP measure, Net loss, and the calcu
Slide 3: Summary Progress for FY 2022
Summary Progress for FY 2022 3 246% Revenue growth year-over-year +52ppt Adjusted EBITDA Margin improvement year-over-year 4.7x Growth in VBC Revenue year-over-year Key Highlights Total revenue of $1.11Bn, exceeding guidance and representing a 3.5x year-over-year increase from 2021 revenue of $321m
Slide 4: Revenue and Revenue Growth (unaudited)
4 Revenue and Revenue Growth (unaudited) $28m $71m $57m $74m $118m $266m $265m $289m $289m Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022 Q2-2022 Q3-2022 Q4-2022 Revenue Growth Notes: (1) $28.4m of one-off upfront revenue recognition in connection with a software licensing arrangement in Q1 2021. (1) 246%
Slide 5: Value-Based Care Revenue Mix (unaudited)
5 Value-Based Care Revenue Mix (unaudited) Notes: (1) Other includes certain revenue generating items not included within Medicaid, Medicare and Commercial categories such as Higi revenue and third party admin fee revenue. 68% 44% 58% 73% 60% 59% 54% 50% 32% 33% 28% 19% 36% 37% 41% 45% 0% 22% 13% 8%
Slide 6: Our UK Business Has Reached COCD Profitability
5 Our UK Business Has Reached COCD Profitability, Driven by High Margin Revenue Growth, Workflow Efficiencies and Automation Additionally, we have shifted our appointment mix to significantly increase higher-margin private appointments Enhanced pre-consultation flows and digital triage led to optimi
Slide 7: Optimizing care delivery model with multi-state licensing
7 20 23 fo cu s 20 22 fo cu s We have implemented a multi-state licensing model, which allows providers to service multiple states` simultaneously. This has reduced the total FTE required and further increased utilization. Optimizing care delivery model • Launch chat-first experience with care and s
Slide 8: Our Performance Continues to Accelerate as We Learn from Each Contract
8 Our Performance Continues to Accelerate as We Learn from Each Contract Notes: (1) Representative of unique members on the platform, data as of Feb 1, 2023. ‘High risk members’ is defined here as either those who incurred high medical claims prior to joining Babylon, or those members for whom we ha
Slide 9: Strong Early Indicators that Enrollment in Care Programs Drives Positive Outcomes
9 Notes: (1) Babylon Internal Data as of Feb 9, 2023. (2) Data from Sitka as of Q3-22. We Are Seeing Strong Early Indicators that Enrollment in Our Care Programs Drives Positive Outcomes… Care Programs Enrollment Outcomes Integrated Behavioral Health 25% 50% Improvement in anxiety (GAD-7) and depres
Slide 10: Our Claims and User Data Are Providing Early Indicators of Success
10 Notes: (1) Based on Iowa, Georgia and Mississippi Claims and User Data. May-21 to Aug-22. Our Claims and User Data Are Providing Early Indicators of Success… Inpatient Admissions / 1,000 0 50 100 150 200 250 Completed 24/7 PC Appt No 24/7 PC Appt Linear (Completed 24/7 PC Appt) Linear (No 24/7 PC
Slide 11: Emerging Data Indicating a 5% Reduction in Healthcare Costs for Engaged Members
11 Notes: Data based on claims incurred Oct 2021 to Oct 2022 (paid through Dec 2022) for Iowa Medicaid Expansion members with continuous enrollment for at least three months in both pre- and post- periods, as defined using date of first engagement with Babylon’s 24/7 Primary Care service (or compara
Slide 12: Underlying Revenue and Adjusted EBITDA Margin (unaudited)
$79m $321m $1,110m $1,100m+ 2020 2021 2022 2023 Revenue (231)% (66)% (25)% (9)% Adj. EBITDA Margin 12 Notes: (1) Source: company guidance, including lower bounds of both revenue and Adjusted EBITDA guidance. Revenue & Adj. EBITDA Margin Underlying Revenue and Adjusted EBITDA Margin (unaudited) 206pp
Slide 13: Technology & SG&A costs as a % of revenue (unaudited)
13 49% 44% 40% 21% 12% 13% 10% 5% 72% 76% 53% 62% 21% 24% 19% 18% 121% 120% 93% 84% 33% 37% 29% 24% Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022 Q2-2022 Q3-2022 Q4-2022 Technology costs SG&A costs • 54ppt SG&A margin and 44ppt technology margin improvement since Q1 2021 totalling a nearly 100ppt overall
Slide 14: FY23 and Updated Profitability Guidance
FY23 and Updated Profitability Guidance FY 2023 Guidance (assuming sale of IPA business) • Revenue: $1.1Bn+ • Adjusted EBITDA: $(120)m to $(100)m Profitability Guidance • Accelerating timeline to reach profitability on an Adjusted EBITDA basis to mid-2024 14
Slide 15: Thank you!
30 Thank you!
Slide 16: IFRS to U.S. GAAP Bridge
IFRS to U.S. GAAP Bridge FY22 $M IFRS(1) Leases (2) Capitalized Development (3) Other US GAAP Revenue 1,109.7 - - - 1,109.7 COCD Margin 1.1% - - - 1.1% Adjusted EBITDA (235.8) (7.5) (31.5) 0.3 (274.5) Q4 22 $M IFRS(1) Leases (2) Capitalized Development (3) Other US GAAP Revenue 289.0 - - - 289.0 COC