Babylon Holdings reports Q4 EPS ($4.50), consensus ($4.42)

Reports Q4 revenue $289.0M, consensus $290.38M. CEO Ali Parsa said, "In 2022, we grew our revenue by 3.5 fold and achieved COCD or Medical Margin profitability improvements across our business lines. Our U.K. business already delivers profitable COCD margins and we expect the same in early 2023 for our U.S. Clinical Services business. Our key value-based care – VBC – cohorts showed profitable Medical Margins even in their first year, while for most companies profitability of each cohort normally takes a few years…The cumulative result of all of this is that we now expect Adjusted EBITDA profitability in mid-2024, significantly ahead of previous guidance." CFO David Humphreys added, "Babylon once again delivered high revenue growth and strong financial performance to beat revenue expectations and previously guided Adjusted EBITDA estimates. We continue to shift revenue mix away from Medicaid members with a focus on expanding Commercial populations and have demonstrated great capital discipline, successfully executing nearly $125M in annualized cost reductions. The result is a significantly improved profitability outlook and Adjusted EBITDA guidance of ($120M)-($100M) for 2023."