Alignment Healthcare Inc (ALHC) Reports 26.7% YoY Increase in Total Revenue for Q3 2023
Alignment Healthcare Inc (NASDAQ:ALHC) reported a 26.7% YoY increase in total revenue, amounting to $456.7 million.
The company's Medicare Advantage enrollment increased by 18% YoY to approximately 115,600 members.
Adjusted gross profit was $60.6 million, while the net loss was reported at $35.1 million.
ALHC raised its year-end health plan membership outlook to 117,600-118,600, indicating a 20% YoY growth.
On November 2, 2023, Alignment Healthcare Inc (NASDAQ:ALHC) released its financial results for the third quarter ending September 30, 2023. The company reported a significant increase in total revenue and Medicare Advantage enrollment, exceeding its guidance across all key financial metrics.
Financial Highlights
ALHC reported a total revenue of $456.7 million, marking a 26.7% increase year-over-year (YoY). The company's Medicare Advantage enrollment grew by 18% YoY to approximately 115,600 members. Health plan premium revenue of $450.2 million represented a 25.1% growth YoY. However, the company reported a loss from operations of $29.8 million.
Adjusted gross profit, excluding depreciation and amortization of $5.5 million and selling, general, and administrative expenses of $83.1 million, was reported at $60.6 million. The net loss was $35.1 million, while adjusted EBITDA was reported at a loss of $8.4 million.
Outlook for Q4 and Fiscal Year 2023
ALHC raised its year-end health plan membership outlook to 117,600-118,600, indicating a 20% growth YoY. The company's revenue for the fourth quarter is expected to be between $422 million and $442 million, with an adjusted gross profit between $46 million and $54 million. The adjusted EBITDA is projected to be between a loss of $18 million and $10 million.
Balance Sheet Summary
As of September 30, 2023, ALHC reported total assets of $770.8 million, up from $633.9 million as of December 31, 2022. The company's total liabilities stood at $581.2 million, while total stockholders' equity was reported at $189.6 million.
Company's Commentary
John Kao, founder and CEO of ALHC, commented on the results, stating,
Alignment Healthcares third quarter results show we're doing Medicare Advantage (MA) right. Its more than just numbers it's about service, quality and advocacy, backed by seven consecutive years of our largest MA contract achieving at least 4- out of 5-stars."
ALHC's financial results and the company's outlook for future financial and operational performance will be discussed in a conference call hosted by the company at 5:30 p.m. EDT on the day of the filing release.
Explore the complete 8-K earnings release (here) from Alignment Healthcare Inc for further details.
This article first appeared on GuruFocus.
