American Oncology Network (AONC) Q2 2024 earnings summary

Executive summary

• Revenue for Q2 2024 rose 37.8% year-over-year to $434.0M, driven by a 23.4% increase in patient encounters and higher revenue per encounter; net loss attributable to AON Inc. was $3.1M, a significant improvement from a $10.1M loss in Q2 2023.

• Adjusted EBITDA for Q2 2024 was $5.1M, up from $1.9M in Q2 2023, reflecting improved core operating performance.

• The company completed two business combinations in Q2 2024, expanding its reach in Georgia and Hawaii.

• AON voluntarily delisted from Nasdaq in June 2024, with shares now trading on OTCQX.

Financial highlights

• Q2 2024 revenue: $434.0M, up from $315.0M in Q2 2023; six-month revenue: $798.3M, up 29% year-over-year.

• Net loss attributable to AON Inc. for Q2 2024: $3.1M; six-month net loss: $28.1M.

• Adjusted EBITDA for Q2 2024: $5.1M, up from $1.9M in Q2 2023; six-month Adjusted EBITDA: $7.0M.

• Cost of revenue increased 38.8% year-over-year in Q2 2024, mainly due to higher drug and supply costs and increased patient volumes.

• General and administrative expenses rose 53.6% year-over-year in Q2 2024, partly due to non-recurring value-based care administrative costs.

Outlook and guidance

• Management expects continued revenue growth from organic expansion and acquisitions, supported by a robust technology platform and practice management expertise.

• Cash, marketable securities, and available credit are expected to be sufficient to fund operations and capital needs for at least the next 12 months.