Bright Health — Q3 2021 Earnings Presentation
20 slides from Bright Health's earnings presentation, Nov 12, 2021
Slide 1: Third Quarter 2021 Earnings Presentation
Bright Health Group Third Quarter 2021 – Earnings Presentation November 11, 2021
Slide 2: Disclaimer
Disclaimer Statements made in this presentation that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements, and should be evaluated as such. Forward-looking statements include information concerning possible or assumed future r
Slide 3: Our Mission
Our Mission Making Healthcare Right. Together. Our Vision Through powerful relationships with Care Partners, we help all people live __ healthy and brighter lives.
Slide 4: Performance Highlights
Performance Highlights 4 Growth Surpasses Expectations 1 Q3 Results Impacted by a Confluence of Unique Factors 2 Fully Aligned Model Driving Differentiated Results 3 Solid Year-to-Date Performance and Increased Conviction in Our Model and Strategy
Slide 5: Overview
Bright Health Group Overview Building a technology-enabled, fully aligned national Integrated System of Care (ISoC) personalized for consumers 5 Current State 2022 New State Entry Key 2022 Expansion State Integrated Care Delivery 2022 Footprint 17 States, 131 Markets, 5 Care Delivery Markets By the
Slide 6: Key Themes
6 Key Themes Demonstrated Extraordinary Growth to Date Delivered Consistent Performance Driving Differentiation Through NeueHealth Building a Unified Technology Platform Capitalizing on Future Growth Opportunities
Slide 7: Business Update
Bright Health Group Business Update
Slide 8: The Healthcare Business Model of the Future: Integrated Systems of Care
Connected by the Bright Health Intelligent Operating System (BiOS) The Healthcare Business Model of the Future: Integrated Systems of Care 8 Our model is designed to serve the consumer’s desire for increased involvement in healthcare decision-making Healthcare Financing and Distribution Care Partner
Slide 9: NeueHealth's Integrated System of Care is Delivering Differentiated Performance
NeueHealth’s Integrated System of Care is Delivering Differentiated Performance Fully aligned providers drive lower medical costs and a better consumer experience 9 Aligned, Integrated System of Care 170,211 Value-Based Patients 131 NeueHealth Owned and Affiliated Clinics 45% BHC IFP Florida Members
Slide 10: Positioned for Continued Growth and Improved Performance in 2022
Positioned for Continued Growth and Improved Performance in 2022 Key priorities include further footprint expansion, margin improvements, and NeueHealth growth and diversification 10 Market Stabilization 1 Robust Base Business 2 2022 Pricing Position 3 NeueHealth Expansion 4 • Enhanced IFP subsidies
Slide 11: Performance Update
Bright Health Group Performance Update
Slide 12: Overview of Q3 2021 Results
Overview of Q3 2021 Results Bright Health Group continued to demonstrate robust growth, while medical costs were impacted by transitory challenges 12 Revenue Gross Margin(1) Adjusted EBITDA(2) Enterprise Metrics ($M) Medical Cost Ratio (1) Defined as total revenue less medical costs (2) A reconcilia
Slide 13: Overview of YTD September 2021 Results
Overview of YTD September 2021 Results We believe YTD results are a better gauge of core business performance given large out-of-period adjustments in Q3 2021 13 Revenue Adjusted EBITDA(1)Operating Cost Ratio (1) A reconciliation of Adjusted EBITDA to Net Loss for applicable periods is contained in
Slide 14: Overview of 2020 and 2021 COVID Costs by Product
$16 $17 $16 $42 $30 $17 $18 $14 $47 $35 $34 $56 2020 Q1'21 Q2'21 Q3'21 COVID Expense Summary ($M) Commercial Medicare Advantage Overview of 2020 and 2021 COVID Costs by Product Q3’21 COVID impact to Commercial was larger than total 1H’21 impact due to membership concentration in the Southeast 14 ~$1
Slide 15: NeueHealth Continues to Expand Rapidly
NeueHealth Continues to Expand Rapidly Accelerated movement of consumers into fully aligned Integrated Systems of Care driving growth and performance 15 ($ in millions) YTD 9/30 2020 YTD 9/30 2021 YoY Growth Value-Based Patients(1) 19,141 170,211 789% Premium Revenue $6.0 $62.7 953% Services Revenue
Slide 16: Balance Sheet and Liquidity
Balance Sheet and Liquidity Highlights 16 • ~$500 million in non-regulated liquidity as of September 30, 2021, including $353 million in highly liquid cash and investments and $149 million in a passive equity investment classified as short-term • Undrawn $350 million credit facility • Insurance enti
Slide 17: Full Year 2021 Outlook
Full Year 2021 Outlook 17 • Revenue of $4.1 – $4.2 billion • Reported Medical Cost Ratio of 92.5% +/- 50bps • Adjusted EBITDA of ($550) – ($600) million(1) • Bright HealthCare end-of-year membership of ~700,000 • NeueHealth revenue of ~$575 million • ~$475 million excluding investment income • Inter
Slide 18: Appendix
Paes Bright Health Group Appendix
Slide 19: Non-GAAP Reconciliation: Adjusted EBITDA
Non-GAAP Reconciliation: Adjusted EBITDA 19 ($ in thousands) Three Months Ended Nine Months Ended September 30, 2020 September 30, 2021 September 30, 2020 September 30, 2021 Net Loss ($59,256) ($296,722) ($84,610) ($364,990) Interest Expense -- 1,594 -- 6,282 Income Tax Expense (Benefit) -- 73 (9,16
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