Magilon health, inc. (NYSE:AGL) Q2 2024 Earnings Conference Call August 6, 2024 4:30 PM ET

Company Participants

Leland Thomas - VP, IR
Steven Sell - CEO
Jeffrey Schwaneke - CFO

Conference Call Participants

Lisa Gill - JPMorgan
Justin Lake - Wolfe Research
Stephen Baxter - Wells Fargo
Ryan Daniels - William Blair
Elizabeth Anderson - Evercore ISI
Adam Ron - Bank of America.
Eduardo Ron - Truist
George Hill - Deutsche Bank
Michael Ha - Baird
Jack Slevin - Jefferies
Whit Mayo - Leerink Partners
Jenny Shen - BTIG
Daniel Grosslight - Citi

Operator

Hello, and welcome to the agilon health Second Quarter 2024 Earnings Conference. My name is Elliot, and I'll be coordinating your call today. [Operator Instructions] I would now like to hand over to Leland Thomas. Please go ahead.

Leland Thomas

Thank you, operator. Good afternoon, and welcome to the call. With me is our CEO, Steve Sell; and our CFO, Jeff Schwaneke. Following our prepared remarks, we will conduct a Q&A session.

Before we begin, I'd like to remind you that our remarks and responses to questions may include forward-looking statements. Actual results may differ materially from those stated or implied by forward-looking statements due to risks and uncertainties associated with our business. These risks and uncertainties are discussed in our SEC filings. Please note that we assume no obligation to update any forward-looking statements.

Additionally, certain financial measures we will discuss on this call are non-GAAP financial measures. We believe that providing these measures helps investors gain a better and more complete understanding of our financial results and is consistent with how management views our financial results. A reconciliation for these non-GAAP financial measures to the most comparable GAAP measures are available in the earnings press release and Form 8-K filed with the SEC. And with that, let me turn things over to Steve.

Steven Sell

Thanks, Leland. Good afternoon, and thank you for joining us. On today's call, I would like to walk you through the following elements, our Q2 results and forward guidance, including our latest outlook on utilization; the tangible and rapid progress we are making against our performance action plan; and important context around a series of recent organizational changes within our company.

Turning to our second quarter results. MA membership grew 38% year-over-year to 513,000 members, and MA revenue grew 39% to $1.5 billion. These results were at the lower end of our guidance range, reflecting stronger-than-expected growth, offset by the termination of select unprofitable payer group contracts retroactive to January 1 versus our previously communicated forecast of termination dates at the end of the second quarter. As a result of our strong core membership growth, we are raising our full year membership guidance to a midpoint of 519,000 members while modestly lowering our full year revenue guidance due to a series of factors, including the retroactive contract terminations.