P3 Health Partners shares jumped in Wednesday premarket trading after the healthcare company guided for a strong rise in 2024 revenue and positive underlying earnings (EBITDA) as it grows its Medicare Advantage member base.
In an update ahead of a presentation at a J.P. Morgan’s Healthcare conference in San Francisco, P3 reaffirmed its 2023 guidance for 115,000 to 120,000 Medicare Advantage Members and revenue of between $1.2 billion and $1.25 billion. It expects to report an adjusted EBITDA loss of between $30 million and $50 million.
For 2024, it expects Medicare Advantage Members to rise to between 125,000 and 135,000, with revenue for the year expected to reach $1.45 billion to $1.55 billion, above analysts' consensus expectations for revenue of $1.41 billion. Adjusted EBITDA is expected to improve to between $20 million and $40 million.
“We made significant strides in 2023 and expect to achieve meaningful profitability in 2024, an important milestone for the company,” P3 co-founder and CEO Dr Sherif Abdou commented in a statement.
“We have a robust pipeline of strategic partnerships that will drive growth and further validate the P3 business model. And our business continues to gain momentum across all key performance metrics including managing medical cost trend.”
Ahead of the opening bell, the company’s shares were up 9.6% at $1.48.