HENDERSON, Nev. - P3 Health Partners Inc. (NASDAQ:PIII), a physician-led health management company, reported a significant revenue increase for the fourth quarter ended December 31, 2023, but an earnings miss led to a 6.8% decline in share price. The company's fourth-quarter earnings per share (EPS) of -$0.22 fell short of the analyst consensus of -$0.08. Despite this, P3 Health's quarterly revenue surged to $346.9 million, comfortably surpassing the consensus estimate of $302.97 million and marking a 34% increase compared to $258.2 million in the same quarter last year.
The company's full-year revenue also showed robust growth, with a 21% increase to $1.27 billion, beating the previous year's $1.05 billion. This performance exceeded the upper end of the company's guidance range. P3 Health's capitated revenue, a key component of its business model, rose by 35% to $342.8 million for the quarter.
However, the company's net loss widened to $69.1 million from a net loss of $532.3 million in the previous year's fourth quarter. The adjusted EBITDA loss for the quarter was $44.3 million, compared to a loss of $40.0 million in the prior year.
Looking ahead, P3 Health Partners provided a fiscal 2024 revenue guidance range of $1450-1550 million, which is above the analyst consensus of $1427 million. The company also anticipates reaching an adjusted EBITDA positive in 2024.
Dr. Sherif Abdou, CEO of P3, commented on the results, stating, "Top line results for 2023 were strong as the team executed and delivered with revenue of approximately $1.27 billion, representing 21% growth and exceeding the top end of our guidance range." He further expressed confidence in the company's 2024 outlook, citing strong growth in membership, increased funding, and stabilized medical cost trends.
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