On November 7, 2023, Bright Health Group Inc (BHG, Financial) released its financial results for the third quarter ended September 30, 2023. The company reported a significant increase in revenue, but also a substantial net loss due to a non-cash Goodwill impairment charge.
Financial Performance and Challenges
BHG's Q3 2023 revenue from its continuing business reached $269.4 million, marking a 39% increase year over year. The company served 355,000 Value-Based Consumers, a significant increase of 208.7% on a comparable basis from last year. However, the company reported a net loss from its continuing business of $479.3 million, which included a $401.4 million non-cash Goodwill impairment charge.
Financial Achievements and Outlook
Despite the net loss, BHG achieved a positive Adjusted EBITDA of $1.2 million in Q3 2023. The company is maintaining its expectation for 2023 consolidated Adjusted EBITDA profitability. BHG's Enterprise Revenue is expected to be between $1.14 billion and $1.19 billion. On a segment basis, Care Solutions Revenue is expected to be between $890 million and $910 million, while Care Delivery Revenue is expected to be between $250 million and $275 million.
Key Details from Financial Statements
From the balance sheet, as of September 30, 2023, BHG had total assets of $2,055,766,000 and total liabilities of $1,861,157,000. The company's cash and cash equivalents stood at $113,430,000. From the income statement, the company's total revenue for the nine months ended September 30, 2023, was $867,931,000, while the net loss from continuing operations was $564,915,000.
Company's Commentary
Bright Health’s solid 2023 performance continued in the Third Quarter, with our second consecutive quarter of positive Adjusted EBITDA. Excluding a Goodwill impairment, our Care Delivery segment reported Operating Income profitability based on strong performance," said Mike Mikan, President and CEO of Bright Health.
Despite the challenges, BHG continues to show resilience and growth potential, as evidenced by its increasing revenue and positive Adjusted EBITDA. The company's focus on serving aging and underserved consumers with unmet clinical needs continues to drive its performance.
Explore the complete 8-K earnings release (here) from Bright Health Group Inc for further details.
