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AGL NYSE· agilon health Inc.
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AGL NYSE· agilon health Inc.
Earnings report Q4 2023

Agilon Health Reports Strong Revenue Growth in Latest Quarter

Segments of Revenue

Agilon Health, Inc. reported total revenues of $4.32 billion for the latest quarter. The majority of the revenue came from medical services, which generated $4.31 billion in revenue. Other operating revenue contributed $9.01 million to the total revenue.

Strengths

Agilon Health demonstrated strong revenue growth in the latest quarter, with total revenues increasing by 80% compared to the previous year. This growth was primarily driven by a significant increase in medical services revenue, which more than doubled from $2.38 billion in the previous year to $4.31 billion in the latest quarter. The company's management attributed this increase to the expansion of their operational geographies, with new areas becoming operational in 2023 and 2024. Agilon Health's focus on providing comprehensive medical services has resonated well with customers, leading to increased revenue.

Challenges

Despite the strong revenue growth, Agilon Health faced challenges in managing its expenses. The company's total expenses for the latest quarter amounted to $4.55 billion, exceeding its total revenues. This resulted in an operating loss of $232.13 million. The increase in expenses was primarily driven by higher medical services expenses and general and administrative expenses. The company incurred significant costs to support its live geographies and enterprise functions, which contributed to the rise in expenses. Agilon Health needs to carefully manage its costs to improve its profitability.

Noteworthy

Agilon Health's general and administrative expenses increased by $78.0 million, or 38%, compared to the previous year. This increase was primarily due to higher operating costs incurred to support geographies that became operational in 2023. However, as a percentage of revenue, general and administrative expenses decreased from 9% in the previous year to 7% in the latest quarter. This indicates that the company has been able to control its operating costs relative to its revenue.

Summary

Agilon Health reported strong revenue growth in the latest quarter, driven by a significant increase in medical services revenue. The expansion of operational geographies played a crucial role in driving this growth. However, the company faced challenges in managing its expenses, resulting in an operating loss. Agilon Health needs to focus on cost management to improve its profitability. Despite the challenges, the company's ability to control its general and administrative expenses as a percentage of revenue is a positive sign. Overall, Agilon Health's revenue performance in the latest quarter reflects its success in delivering comprehensive medical services to its customers.

Source documents

Form 10-K  filed on Feb 27, 2024
66 pages scanned

Reference data

Company financials Q4 revenue 1.06B
Analyst estimates Q4 EPS beat by 981.05%
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