What’s Driving Alignment Healthcare’s Performance?

What’s Driving Alignment Healthcare’s Performance?

July 15, 2022

Alignment Healthcare Inc. (ALHC), a tech-enabled Medicare Advantage company, which delivered a strong first quarter across all key financial metrics, is scheduled to release its second quarter financial results next month.

The company is exclusively focused on serving the senior population, a significant and rapidly growing segment within the United States, through its Medicare Advantage plans, which are customized to meet the needs of individual seniors.

Thanks to the popular growth of Medicare Advantage, Alignment Healthcare has expanded its footprint over the years and currently operates in 38 markets, or counties, across 4 states namely California, North Carolina, Nevada, and Arizona.

Last month, the company announced that it will be introducing its health plans into two new states, Florida and Texas – and into additional counties within the four states where it currently operates.

For the first quarter ended March 31, 2022, the company delivered impressive numbers related to four critical metrics – membership, revenue, adjusted gross profit and adjusted EBITDA.

— Health Plan Membership was about 94,000 as of March 31, 2022, representing a 13.4% growth year-on-year.
— Total revenue was $345.5 million in Q1, 2022 compared to $267 million in the year-ago quarter, an increase of 29.4%.
— Adjusted gross profit was $44.9 million in Q1, 2022 compared to $22.6 million in Q1, 2021.
— Adjusted EBITDA was ($3.9) million in Q1, 2022 compared to ($14) million in the year-ago quarter.

This is what John Kao, founder and CEO of Alignment Healthcare said regarding the first quarter results, “Our sustained success is a direct result of our mission to put the senior first in everything we do – from how we empower primary care physicians to deliver more proactive care to how we identify and treat the most chronically ill of our members. Together with our operational efficiencies and focused investments we’re making today, this mission enables us to scale effectively in both existing and new markets as we continue to grow and serve more seniors across the country.”

Alignment Healthcare is scheduled to report second quarter 2022 financial results on Aug. 4, after market close.

For the second quarter of 2022, the company expects revenue to range between $335 million and $340 million while the analysts’ consensus forecast is $337.97 million. Revenue was $309.0 million in the second quarter of 2021.

Looking ahead to full-year 2022, Alignment Healthcare anticipates revenue to be in the range of $1.34 billion to $1.35 billion, in line with analysts’ estimate. Revenue was $1.17 billion in full-year 2021.

Alignment Healthcare shares began trading on the Nasdaq Global Select Market on March 26, 2021, priced at $18 each.

ALHC has traded in a range of $6.14 to $23.35 in the last 1 year. The stock closed Thursday’s trading at $14.32, up 9.23%.

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