Wed, May 15, 9:28 PM (72 days ago)
American Oncology Network, Inc. (AON) reported its financial results for the quarter ended March 31, 2024. Key highlights include: 1. **Revenue Growth**: Total revenue increased by 20% to $364.3 million, driven by a 19.8% rise in patient service revenue and a 44.6% increase in other revenue. 2. **Cost Increases**: Operating expenses rose by 26.1% to $383.6 million, primarily due to higher costs of revenue, which surged by 27.4%, reflecting increased drug and medical supply costs and higher patient encounters. 3. **General and Administrative Expenses**: These expenses grew by 19.2%, attributed to higher revenue cycle costs and increased expenses related to the company's growth and public company requirements. 4. **Net Loss**: The company reported a net loss of $25.0 million, up from $1.5 million in the same period last year, impacted by higher operating expenses and a $1.6 million non-cash charge related to the fair value adjustment of warrant liabilities. 5. **Cash Flow**: Net cash provided by operating activities was $45.1 million, a significant improvement from a net cash outflow of $0.3 million in the prior year, driven by changes in accounts payable and receivable. 6. **Adjusted EBITDA**: Adjusted EBITDA decreased by 51.6% to $2.0 million, reflecting the higher costs and expenses despite revenue growth. The company anticipates continued growth but also expects higher costs associated with its expansion and public company obligations.