There are three things that can happen when you throw a pass, and two of them are bad. – Woody Hayes
The Alignment Health story is one largely about fundamentals, and that was reiterated in yesterday’s earnings call where the company again beat expectations and surpassed the high end of their guidance for the third consecutive quarter.
If you’ll allow us a college football metaphor, it’s Medicare Advantage that’s following the Woody Hayes, “three yards and a cloud of dust” playbook: disciplined growth, care management, and data infrastructure that supports execution of health insurance fundamentals. They’re running the ball up the middle. It’s not necessarily exciting, but so far, it’s working very well. So well, in fact, that most of the analyst questions are about whether they can open up the playbook to grow faster without screwing up the underlying fundamentals of the business.
Quarter highlights
Membership was 229,600, up 25.9% YoY
Revenue was $993.7m, up 43.5% YoY
Medical benefits ratio was 87.2%, a 1.2% improvement YoY
SG&A was $110m and SG&A ratio was 9.6%, a 1.2% improvement YoY
Adjusted EBITDA was $32.4m and net income was $3.7MLinks:
Key Metrics
Earnings Call Discussion:
Here are a few key takeaways from the call:
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