agilon health(AGL) - 2024 Q3 - Quarterly Results

Revenue Growth - Revenue increased 28% to $1.45 billion in Q3 2024 compared to $1.14 billion in Q3 2023[5] - Total revenues for the three months ended September 30, 2024, were $1,450,932, an increase of 28% compared to $1,136,863 for the same period in 2023[21] - Medical services revenue for the nine months ended September 30, 2024, reached $4,528,471, up from $3,253,810 in 2023, reflecting a growth of 39%[21] Membership Growth - Medicare Advantage membership grew 37% year-over-year to 525,000 members, with total members on the agilon platform increasing 39% to 657,000[4] - The company expects Medicare Advantage members to range from 526,000 to 528,000 by the end of 2024[11] - ACO model members are projected to be between 127,000 and 129,000 by the end of 2024[11] Financial Losses - Gross profit was negative $64 million in Q3 2024, a decline from positive $37 million in Q3 2023, resulting in a net loss of $118 million compared to a net loss of $31 million in the prior year[6] - Medical margin was negative $58 million in Q3 2024, down from $111 million in Q3 2023, reflecting a year-over-year reduction of $169 million[7] - Adjusted EBITDA loss was $96 million in Q3 2024, compared to a positive $6 million in Q3 2023[7] - The net loss for the three months ended September 30, 2024, was $117,615, compared to a net loss of $31,483 for the same period in 2023[21] - For the nine months ended September 30, 2024, the net income (loss) was $(154,311) thousand compared to $(32,319) thousand for the same period in 2023[26] Expenses and Costs - Total expenses for the three months ended September 30, 2024, were $1,584,440, compared to $1,176,157 in 2023, representing a 35% increase[21] - General and administrative expenses for the three months ended September 30, 2024, were $63,123, down from $72,058 in 2023, a decrease of 12%[24] - The company incurred $1,453 thousand in severance and related costs for the three months ended September 30, 2024[26] - Stock-based compensation expense for the three months ended September 30, 2024, was $13,259 thousand, down from $20,619 thousand in the same period of 2023[26] Cash and Assets - The company had cash, cash equivalents, and marketable securities of $399 million as of September 30, 2024, with total debt of $35 million[9] - Cash and cash equivalents increased to $148,161 as of September 30, 2024, from $107,570 at the end of 2023, marking a growth of 38%[19] - The total assets increased to $2,091,411 as of September 30, 2024, from $1,740,866 at the end of 2023, representing a growth of 20%[19] Future Guidance - Updated guidance for total revenues for fiscal year 2024 is projected between $6,050 million and $6,065 million[11] - The company plans to exit two unprofitable partnerships and other payor contracts by the end of 2024 to strengthen its business[2] - The company expects Medical Margin to increase in absolute dollars as the platform matures, although PMPM may vary with new member additions[28] Non-GAAP Measures - The company emphasizes that Medical Margin and Adjusted EBITDA are non-GAAP measures that provide insight into underlying business trends and operational performance[28]