Bright Health Stock Hits New Lows on Second Quarter Financials
Bloomington-based Bright Health Group reported its first quarterly financial results as a public company on Tuesday.
Bright Health has seen stratospheric growth since it was founded in 2015. For the second quarter of 2021, the company reported revenue of $1.1 billion – a 275 percent jump compared to the second quarter of 2020.
The company is now estimating that its full year revenue for 2021 will be approximately $4 billion. That’s not quite enough to land it in the Fortune 500, but not far away. Revenue of $4 billion would have ranked the company 620th on this year’s list of the largest public companies in the U.S.
But while revenue is booming, the company’s stock is sinking like a stone. Bright Health went public on June 24 at $18 per share. On Monday the stock closed at $10.92 per share, its lowest closing price over its first five weeks of trading.
The stock fell further in the wake of the company’s earnings report. At one point in midday trading, Bright Health stock was $8 per share – down more than 25 percent for the day, and down more than 55 percent from its recent IPO price.
The stock was rebounding slightly near 1 p.m. Eastern time. When markets closed on Tuesday, Bright Health’s stock was trading at $8.49 a share.
At the bottom line, the company is still losing money. For the second quarter Bright Health saw an operating loss of $59 million and a net loss of $43.7 million. That’s actually a larger loss than the company saw last year when it posted a second quarter net loss of $18.1 million.