Analyst Summary:
Babylon Health has reported revenue growth of 3.1% YoY and exceeded their guidance for Q4 and fiscal year ended December 31, 2022. The UK clinical services achieved cost of care delivery (COCD) profitability in 2022, and the US clinical services business expects the same in early 2023 with profitable medical margins in its key contracts. The company also grew its US value-based care (VBC) members by 1.6x YoY and added just over 34,000 new commercial VBC members since January 2023. The CEO and Founder, Ali Parsa, stated that Babylon is purpose-building a digital-first platform to deliver integrated healthcare at scale. In addition, Babylon expects to achieve adjusted EBITDA profitability by mid-2024, significantly ahead of previous guidance.
Forward-looking statements were made, cautioning that actual results may differ materially. The company will host a conference call to discuss its Q4 2022 results on March 9, 2023. Adjusted EBITDA, adjusted EBITDA margin, medical loss ratio, medical margin, and cost of care delivery margin were all provided as non-GAAP measures.