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AONC Nasdaq· American Oncology Network Inc.
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AONC Nasdaq· American Oncology Network Inc.
Earnings report Q3 2023

AONC Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

In the latest quarter, American Oncology Network, Inc. (AONC) reported total revenue of $336.3 million. The majority of the revenue came from patient service revenue, which amounted to $332.2 million. Additionally, the company generated $4.1 million in other revenue.

Strengths

AONC demonstrated strong revenue growth in the latest quarter, with a 13.2% increase compared to the same period last year. This growth can be attributed to the robust performance of patient service revenue, which saw a 13.2% increase year-over-year. The company's ability to attract and serve a larger patient base contributed to this positive outcome.

Challenges

Despite the overall revenue growth, AONC faced challenges in managing its costs and expenses. The cost of revenue amounted to $310.9 million, representing a 16.0% increase compared to the previous year. General and administrative expenses also increased by 7.4% to $25.2 million. These cost escalations put pressure on the company's profitability and highlight the need for effective cost management strategies.

Noteworthy

It is worth noting that AONC reported a loss from operations of $24.4 million in the latest quarter. This is in contrast to the $6.1 million income from operations in the same period last year. The decline in operating income can be attributed to higher costs and expenses, as well as other factors such as interest expense and other expenses. The company's management should focus on addressing these issues to improve profitability.

Summary

AONC delivered strong revenue growth in the latest quarter, primarily driven by an increase in patient service revenue. However, the company faced challenges in managing its costs and expenses, resulting in a loss from operations. AONC should prioritize cost management strategies to improve profitability and ensure sustainable growth in the future.

Source documents

Form 10-Q  filed on Nov 14, 2023
16 pages scanned

Reference data

Company financials Q3 revenue 324M
Analyst estimates Q3 EPS missed by NaN%
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