On November 2, 2023, Alignment Healthcare Inc (ALHC, Financial) 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 Healthcare’s third quarter results show we're doing Medicare Advantage (MA) right. It’s 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.
