NYSE$NEUE

NeueHealth Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported financial results for the third quarter ended September 30, 2022.

Bright Health Group reported a revenue of $1.6 billion, a 51.3% increase from Q3 2021. The company experienced a GAAP Net Loss of $259.4 million and an Adjusted EBITDA Loss of $82.9 million. They are lowering the Full Year 2022 Enterprise Medical Cost Ratio guidance range to 90% to 92% and positively revising the Full Year 2022 Adjusted EBITDA loss guidance range to $550 to $700 million.

  • Revenue of $1.6 billion, up 51.3% from Q3'21.
  • GAAP Net Loss of $259.4 million.
  • Adjusted EBITDA Loss of $82.9 million.
  • Q2’22 Enterprise Medical Cost Ratio of 90.6%, a strong improvement from the prior year.

Headline financials

Total Revenue

$1.63B

Previous: $1.08B+51.3%
EPS (adj)

-$24.80

Previous: -$38.40+35.4%
Operating Cost Ratio

18.2%

No prior period
Capital Expenditures

-$21.6M

Previous: -$20.7M-4.3%
Free Cash Flow

$90.2M

Previous: $212M-57.5%
Net Income

-$306M

Previous: -$301M-1.8%
Operating Income

-$253M

Previous: -$296M+14.7%
Gross Profit

$1.63B

Previous: $1.08B+51.3%
Cash & Equivalents

$1.61B

Previous: $956M+67.9%
Total Assets

$4.61B

Previous: $3.58B+29.0%
Stock-Based Comp

$24.1M

Previous: $24.2M-0.2%

Revenue & EPS history

NeueHealth · Revenue · Quarterly

$1.63B

Q3 2022+51.3%vs Q3 2021
Beat estimate in 2 of 7 quarters(29%)
ActualEstimate

Forward guidance

Bright Health Group expects total revenue of $6.8 billion and an enterprise Medical Cost Ratio between 90% and 92% for full year 2022. Bright HealthCare combined Commercial and Medicare Advantage end-of-year membership is expected to be over 1,000,000, while NeueHealth Revenue is expected to be approximately $2.2 billion. Adjusted EBITDA for 2022 is expected to be a loss of between $500.0 million and $700.0 million

Tailwinds

  • Total Revenue is expected to be $6.8 billion.
  • Enterprise Medical Cost Ratio between 90% and 92%.
  • Bright HealthCare combined Commercial and Medicare Advantage end-of-year membership is expected to be over 1,000,000.
  • NeueHealth Revenue is expected to be approximately $2.2 billion.
  • Intercompany Revenue elimination, comprised of payments from Bright HealthCare to NeueHealth for managing patient care and for network services, is expected to be approximately $1.2 billion.

Headwinds

  • Adjusted EBITDA for 2022 is expected to be a loss of between $500.0 million and $700.0 million

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

-2.0%

Avg return

Earnings day

-6.9%

Avg return

5 days after

-17.7%

Avg return

30 days after

45%

10 / 22 earnings

Positive

+46.5%

Q1 2023

Best reaction

-43.1%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2025
Q2 2025+0.0%-2.2%-2.1%
Q1 2025-2.2%-0.4%-1.5%
Q4 2024+8.9%+30.9%+29.9%
Q3 2024+2.2%+2.5%+7.8%
Q2 2024-3.6%+2.3%-4.4%
Q1 2024-4.0%-3.7%-14.3%
Q4 2023+7.6%-6.0%-27.7%
Q3 2023-1.5%-10.2%-15.5%
Q2 2023-21.8%-27.8%-61.3%
Q1 2023+46.5%+7.2%-14.1%
Q4 2022-43.1%-48.8%-77.2%
Q3 2022+4.3%-3.7%-15.3%
Q2 2022-9.3%+2.1%-15.1%
Q1 2022+35.7%+26.0%-0.6%
Q4 2019-2.6%-1.3%-16.4%
Q4 2021-29.5%-42.9%-35.6%
Q3 2020+1.3%-13.1%-15.4%
Q3 2021-35.1%-34.4%-40.5%
Q2 2020+5.1%
Q1 2021+5.1%
Q4 2020+5.1%
Q2 2021-13.6%

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