April 16, 2024 at 09:00AM
UnitedHealth reported a $872 million cost in Q1 2024 due to the February cyberattack on Change Healthcare. Remediation efforts are ongoing with total costs expected to exceed $1 billion, including a potential $22 million payment to the attackers. UnitedHealth’s Q1 net loss was $1.221 billion, with adjusted earnings per share of $6.91.
From the meeting notes, here are the key takeaways:
1. UnitedHealth, the parent company of Change Healthcare, reported the total costs of tending to the February cyberattack for the first quarter of 2024 at $872 million, with additional funding and interest-free loans exceeding $6 billion.
2. The impact on UnitedHealth from the attack in Q1 was $0.74 per share, expected to rise to between $1.15 and $1.35 per share by the end of the year.
3. Total costs related to business disruption and repairs are estimated to exceed $1 billion over time, potentially including a reported $22 million payment made to the criminals behind the attack.
4. UnitedHealth reported first-quarter revenues of $7.9 billion but also declared a net loss of $1.221 billion for the quarter.
5. The adjusted quarterly earnings per share figure is $6.91, which includes $0.25 in “business disruption impacts” but excludes the costs of its direct response to the cyberattack, estimated to hit shareholders with an additional $0.85 to $0.95 per share for the full year 2024.
6. Despite the heavy dip taken since the attack, UnitedHealth’s share price rose 7.5 percent in premarket trading following the release of its results.
7. Andrew Witty, Chief Executive Officer at UnitedHealth Group, emphasized the company’s commitment to driving balanced growth while effectively addressing the attack on Change Healthcare.
8. Change Healthcare is still coping with the aftermath of the attack, including ongoing threats from the perpetrators.