Babylon announces cost reduction actions to accelerate path to profitability
AUSTIN, Texas and LONDON, July 06, 2022–(BUSINESS WIRE)–Babylon Holdings Limited (NYSE:BBLN) (“Babylon” or the “Company”), one of the world’s fastest growing digital healthcare companies, today announced that it plans to accelerate its path to profitability through revenue and cost savings, in response to changing market conditions.
These efficiencies are implemented during the third quarter of 2022, with the expected financial impact being mainly from the fourth quarter of 2022.
As a result, Babylon is improving its adjusted EBITDA forecast for fiscal year 2022 from ($295) million or less to ($270) million or less, with a monthly adjusted EBITDA forecast for December 2022 of ($18) million. dollars or less. There is no change to Babylon’s revenue forecast of $1.0 billion or more for fiscal 2022.
Important Financial Disclosure
The statements above are forward-looking and actual results may differ materially. Please see the forward-looking statements below for information about factors that could cause our actual results to differ materially from these forward-looking statements. Adjusted EBITDA is a non-IFRS financial measure. We believe Adjusted EBITDA is a useful measure for investors to understand and evaluate our results of operations and our ongoing profitability, as it allows investors to assess our recurring profitability from our operating activities. continue. We are unable to reconcile the 2022 forecast Adjusted EBITDA loss or December 2022 Adjusted EBITDA to its most directly comparable IFRS measure, the loss under IFRS, as we are unable to forecast the loss under IFRS on a forward-looking basis without unreasonable effort due to high variability and difficulty in predicting certain items that affect loss under IFRS for the period, including but not limited to impairment charge, compensation based on shares, foreign exchange gains or losses and gains and losses on the sale of subsidiaries. Adjusted EBITDA should not be used to predict loss under IFRS, as the difference between the two measures is variable and can be material.
Babylon is one of the world’s fastest growing digital healthcare companies, whose mission is to make high quality healthcare accessible and affordable for every person on earth.
Babylon is reshaping the way people interact with their care at every step of the healthcare continuum. By shifting the model from reactive healthcare to proactive healthcare through the devices people already own, it provides continuous, lifelong care for millions of people around the world. Babylon has already shown that in settings as diverse as the developed UK or developing Rwanda, New York City or rural Missouri, for people of all ages, it is possible to accomplish its mission by leveraging of its highly scalable digital platform combined with high quality virtual clinical operations to deliver integrated and personalized healthcare.
Founded in 2013, Babylon’s technology and clinical services support a global network of patients in 15 countries and are capable of operating in 16 languages. And through a combination of its value-based model of care, Babylon 360, and its work in primary care through NHS GP at Hand, Babylon has managed more than 440,000 lives globally since the start of 2022. Nothing that in 2021, Babylon helped a patient every 6 seconds, with approximately 5.2 million consultations and AI interactions. Importantly, this has been achieved with a 93% user retention rate in our NHS GP at Hand service and 4 or 5 star ratings from over 90% of our users across all of our geographies.
Babylon is also working with governments, healthcare providers, employers and insurers around the world to provide them with a new infrastructure that any partner can use to deliver high quality healthcare at lower cost and with better results. For more information, please visit, www.babylonhealth.com.
This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or our future financial or operating performance. When used in this press release, the words “estimates”, “plans”, “expects”, “anticipates”, “expects”, “plans”, “intends”, “believes “, “seek”, “may”, “will”, “should”, “future”, “propose” and variations of these similar words or expressions (or negative versions of these words or expressions) are intended to identify the forward-looking statements.These forward-looking statements include, but are not limited to, information regarding Babylon’s possible or anticipated future operating results, business strategies, debt levels, competitive position, industry environment and potential growth opportunities.
These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of management of Babylon, which could lead to actual results. differ materially from the results discussed in the forward-looking statements. These risks, uncertainties, assumptions and other important factors include, but are not limited to, our future financial and operating results and the fact that we may require additional financing; uncertainties related to our ability to continue our business; the growth of our business and organization; our inability to compete successfully; our ability to renew contracts with existing customers and the risks of contract renewals at lower fee levels, or material reductions in membership, prices or premiums under our contracts due to factors beyond our commitment ; our reliance on our relationships with physician-owned entities; our ability to maintain and expand a network of qualified suppliers; our ability to increase individual member engagement or realize member healthcare cost savings that we expect; a significant portion of our revenue comes from a limited number of customers; the uncertainty and potential inadequacy of our estimates of claims liabilities for medical costs and expenses; risks associated with estimating the amount and timing of revenue recognized under our license agreements and value-based care agreements with health plans; risks associated with our physician partners’ failure to document their services in an accurate, timely and sufficient manner; risks associated with inaccurate or unsupportable information regarding members’ risk adjustment scores in records and submissions to health plans; risks associated with reduced reimbursement rates paid by third-party payers or federal or state healthcare programs; risks associated with regulatory proposals to contain or reduce the cost of healthcare, including the ACO REACH model; the immaturity and volatility of the telemedicine market and our initially untested digital approach; our ability to develop and launch new solutions and services; the impact of COVID-19 or any other infectious disease pandemic, epidemic or outbreak in the United States or globally on our business; and other risks and uncertainties identified in Babylon’s Annual Report on Form 20-F filed with the SEC on March 30, 2022, and in other documents filed or to be filed by Babylon with the SEC and available at of the SEC at www.sec.gov.
Babylon cautions that the above list of factors is not exclusive and cautions you not to place undue reliance on forward-looking statements, which speak only as of the date they were made. Except as required by law, Babylon undertakes no obligation to update or revise its forward-looking statements to reflect events or circumstances after the date of this press release.
See the source version on businesswire.com: https://www.businesswire.com/news/home/20220706005794/en/