Bright Health — Q2 2021 Earnings Presentation
25 slides from Bright Health's earnings presentation, Aug 3, 2021
Slide 1: Bright Health Group Second Quarter 2021 Earnings Presentation
Bright Health Group Second Quarter 2021 – Earnings Presentation August 3, 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 and Vision
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: Bright Health Overview
Bright Health Overview Building a technology-enabled, national Integrated System of Care 4 $4.0+ Billion 131 553k 2021E Revenue(1) NeueHealth Owned and Affiliated Primary Care Clinics(2) Bright HealthCare Commercial Consumers NeueHealth Value-Based Patients(2) National Scale Across 99 Markets and 14
Slide 5: Key Themes
5 Key Themes Demonstrated Unmatched Growth to Date Delivered Consistent Performance Driving Differentiation Through NeueHealth Building a Unified Technology Platform Capitalizing on Future Growth Opportunities
Slide 6: Business Update
Bright Health Group Business Update
Slide 7: The Bright Health Group Business Model
The Bright Health Group Business Model 7 Personalized Care Delivery A high-performing care delivery system leveraging intelligence to deliver personalized healthcare and Care Partner enablement solutions Healthcare Financing and Distribution Care Partner and person-centric health plans that align co
Slide 8: Year-Over-Year Growth
Year-Over-Year Growth Significant uptick in membership and value-based patients reflect the increasing market recognition of our business 8 153 553 54 110 207 663 6/30/20 6/30/21 Commercial Medicare Advantage Bright HealthCare Membership 19 170 6/30/20 6/30/21 NeueHealth Value-Based Patients Organic
Slide 9: Delivering Consistent Performance Across Bright HealthCare
Delivering Consistent Performance Across Bright HealthCare Our IFP population is slightly healthier than expectations, with our 2021 membership consistent across our book of business 9 Key Drivers of Performance • We price to our underlying capabilities and cost structure • Our aligned Care Partner
Slide 10: Infrastructure in Place for Medicare Advantage Expansion
Extend Acquired Capabilities Infrastructure in Place for Medicare Advantage Expansion Our three-pronged Medicare Advantage growth strategy builds upon a platform serving over 110,000 MA consumers 10 Capitalize on Significant Age-In Opportunity From IFP 1 Deploy Robust Special Needs Platform Into New
Slide 11: NeueHealth's Go-to-Market Approach
NeueHealth’s Go-to-Market Approach Improving provider performance, patient experience, and overall outcomes through stakeholder alignment 11 Affiliated Practices Owned Clinics Differentiated Solutions Care Partners National ecosystem of high-performing Care Partners with aligned incentives driving d
Slide 12: Expanding Our Integrated Care Delivery Offering
Expanding Our Integrated Care Delivery Offering Entering two new states in 2022, with additional opportunities in the pipeline for further growth 12 Geographic Footprint Today 169,983 44 Value-Based Patients NeueHealth Owned Primary Care Clinics 2022 Expansion Plans We are building clinics complemen
Slide 13: Unified Technology Platform
Unified Technology Platform In 2021, we have begun insourcing key vendor functions while deploying consumer-facing tools 13 BiOS – Bright Health Intelligent Operating System • Personalized, digital care plan connecting individuals with their care team • Virtual visit functionality went live in 2021
Slide 14: Well-Positioned for Continued Growth in 2022 and Beyond
Our Business is Well-Positioned for Continued Growth in 2022 and Beyond Key priorities include further footprint expansion and diversification of the business 14 Current States 2022 Targeted State Entry Accelerating New State Entry 4 new states planned for 2022 including Texas, which has the third l
Slide 15: Performance Update
Bright Health Group Performance Update
Slide 16: Q2 2021 Results
($23.2) ($35.3) Q2'20 Q2'21 Q2 2021 Results Robust growth has continued to demonstrate the attractiveness of our approach 16 Revenue ($M) Gross Margin(1) Adjusted EBITDA ($M) Enterprise Metrics ($M) Key Performance Indicators NeueHealth Value-Based Patients(2)Bright HealthCare MembershipBright Healt
Slide 17: YTD 2021 Results
77.1% 79.1% 1H'20 1H'21 YTD 2021 Results Significant growth, effective medical management, and operating efficiencies driving overall business performance 17 Bright Health Group Revenue ($M) Bright Health Group Adj. EBITDA ($M) Bright Health Group Operating Cost RatioBright Health Group Adjusted MCR
Slide 18: Bright HealthCare Growth Detail
Bright HealthCare Growth Detail Year-over-year performance driven primarily by organic growth, with support from strategic capital deployment 18 153,083 552,759 54,141 110,066 207,224 662,825 6/30/20 6/30/21 Commercial Medicare Advantage Membership Mix Evolution New markets in 2021 represented 63% o
Slide 19: Rapid Expansion of Our NeueHealth Business
Rapid Expansion of Our NeueHealth Business Integrated care delivery platform established in Florida now expanding into new states to drive the next phase of growth 19 ($ in millions) 1H’20 1H’21 YoY Growth Premium Revenue $4.0 $37.0 827% Services Revenue 8.4 20.4 143% Investment Income - 62.8 NM Una
Slide 20: Balance Sheet and Cash Flow Highlights
Balance Sheet and Cash Flow Highlights Our IPO and 1H operating cash flow provided adequate liquidity for near-term business requirements 20 • Increase in cash and equivalents driven by closing of the initial public offering on June 28, with net proceeds of $887 million • Insurance entities sufficie
Slide 21: Full Year 2021 Outlook
Full Year 2021 Outlook 21 Bright Health Group Enterprise Outlook Segment and Intercompany Outlook • Revenue of $4.0 – $4.2 billion • Medical Cost Ratio of ~86.0% +/- 200bps • Bright HealthCare end-of-year membership of ~650,000 • NeueHealth revenue of ~$425 million • Intercompany revenue elimination
Slide 22: Appendix
Paes Bright Health Group Appendix
Slide 23: Non-GAAP Reconciliation: Adjusted EBITDA
Non-GAAP Reconciliation: Adjusted EBITDA 23 ($ in thousands) Three Months Ended Six Months Ended June 30, 2020 June 30, 2021 June 30, 2020 June 30, 2021 Net Loss ($18,074) ($43,723) ($25,354) ($68,268) Interest Expense -- 4,142 -- 4,688 Income Tax (Benefit) Expense (9,162) (19,464) (9,162) (18,298)
Slide 24: Non-GAAP Reconciliation: Adjusted Medical Cost Ratio
Non-GAAP Reconciliation: Adjusted Medical Cost Ratio 24 Adjusted Medical Cost Ratio Three Months Ended Six Months Ended June 30, 2020 June 30, 2021 June 30, 2020 June 30, 2021 Reported Medical Cost Ratio 80.1% 86.8% 75.5% 83.5% Non-COVID Prior Period Developments 0.3% (1.6%) 0.3% (0.9%) COVID Impact
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