1life Healthcare (ONEM) 13 May 202020 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the 1Life Healthcare One Medical First Quarter 2020 Earnings Results Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions].

I would now like to turn conference to your speaker today, Rose Salzwedel, Director of Investor Relations. Ma’am. ahead, go Please

President Hello earnings to the call. Dan of CEO are operator. Thaler, and XXXX Financial Chief call Medical first Amir Officer and and Chair quarter With Rubin, One and you, Medical; One Bjorn welcome fiscal today of are Thank me One all X-K today, on be as as available in Medical. in of of furnished press investor.onemedical.com. our our can complete results disclosure Form to well SEC, the release which A related at website our found issued our on earlier

reminder, As a website. available call a will our today's and is being on replay recorded be

various part of results may and materially These current statements. on statements uncertainties. and As forward-looking differ management's obligation any outlook. we forward-looking comments to our expectations, any views will and to risks make are or assumptions update based we Actual statements and disclaim today, subject are

our December the time for by the the ended refer report and filings for our the factors SEC, from XXXX. XX, March updated months annual as with including ended in quarterly year to other XXXX reports report Please risk three our to time XX,

and guidance a for particular We comes are providing it crisis the recommendations. forward-looking SEC we recent on our business believe view creates complexity providing a to good of basis that COVID-XX the when faith

predict harder would foreseeable like We to future specifically our future for the to the caution will be that performance investors given crisis.

we assumptions are XXXX. today's on forward-looking as that May, believe statements based are Our XX, date, reasonable of

GAAP through disclosure in as our discuss Today, can measure or filing we can that in understanding adjust earnings call, it provided found of comparable historical today's release. release One It unless public through will financial of the a the metrics reiterate today's to reconciliation believe such non-GAAP done to financial A also Form be X-K. also Medical’s is we results. aid guidance press the nor policy neither a is on a

provide not or incremental in dynamic our greater the insights may call, in of maybe metrics updates into may the to business. may we These provide during Finally, we offer one-time and future. details the nature

that, to for shall with and their questions. I And the and call to Amir take prepared Bjorn turn your remarks over

today's all everyone you Thank you, joining and be on yours and of you We as well can hope thank are to us during time. extraordinary call. doing Rose, as these

during Let me of dedication COVID-XX. open today team their this thanking entire for by our time

scheduled Our office patients They done need. have see healthcare testing and to have and to providers PPE when essential those in delivered and remote continued visits. also through appropriate services now in

with testing hundreds digitally, of up specimens, of thousands for with video needs. Our engaged on and arranged care team and COVID-XX followed conducted members results has chat, patients any services, virtually collected

remote have Together One up scheduled Reentry program. advanced Healthy our our and expanded Screening We Medical launch visits, solutions, our platform set health behavioral virtual to Worksite

our providers and marketing our the on our local enterprise to accounts arranged some brought businesses volunteer With have network advanced Our efforts community. even have serve new partnerships hospitals. of with integration, work had more governments partner and in the sales employer people we've markets and opened and partners, in health to members, and

for impacted As and society, members, we to the care get communities the been there has be partners they employers, virus to and help also our quickly positioned reentry. have need worksite

as While team a entire ago, our our company. congratulate long on January IPO our feels also me let so public quarter first

up XXX,XXX during times, well drove model’s the QX. the in with extraordinary combined ahead Our of XX% performance expectations. power strong with these our members our We quarter ordinary our and year-over-year during momentum year entering ended times financial

year first than more history. of first add this guide on As half we our members QX our half are the membership other implies, to any in track in

$XX.X were of COVID-XX. adjusted and XX% to up net our February, start we $XX.X we care strong and P&L, We year-over-year, the January very to revenue of also margin impact of million $XX.X EBITDA in pleased and QX we of million these a had deliver loss million. delivered evolving despite Turning delivered results

on to COVID-XX discussed only as feel when restricted call last mind impact in final of we services. of government shelter-in-place financial began orders our the that in weeks healthcare few keep non-essential and enacted also Please QX the

and Bjorn uniquely larger practices, increase awareness we market QX continue from membership our and accelerate demonstrating will our and As our a the time, base. headwind quarantines self-isolation discuss power reflects are this further guidance while during financial of extended model to

times. solutions, to our have new grown Let how began added last we in-person launched program. Since geographic enterprise testing has our me our health turn and network worksite and reentry support model call, our extraordinary ways advanced to and care services, reach, in digital more ordinary expanded the extended our relationships, partnerships, our and both members during community, performed testing

assessments frictionless long providing app, platform, into within synchronous have for video embedded asynchronous Delving further mobile We messaging. we access screening. digital symptom our provided our assessments and members COVID-XX and to chats,

spike, As care million weeks. us a of digitally over nearly COVID-XX concerned several with span members the X.XX sought

digitally follow care schedule video results appointments allowed of care with plan. In in visits, us on continuity distancing. for care schedule testing QX, late social up visits. their remote billable primary With remote to members expanded supporting quickly can specimen digital offer as providers, test assess collection Our to our symptoms, and platform now needed platform and

have services great we these initial the early, into still uptake and plan While continuing future. seen on

in-person health model offering, by our virtual behavioral and anxiety, have our for serve Through care primary employees’ depression, our to employers Medical insomnia. One seeking further support embedded expanded we in suite stress mindset and

Portland, COVID-XX essential members we in deliver opened have for we the to in of care, care in in delivering doors our new for in-person our first Oregon the to a time midst Moreover, offices infection vaccines March, care. medical also should our when symptomatic patients respiratory offices seeing to other continued those deliver respiratory Turning us. designated upper become to Across outpatient available. COVID-XX and treatments all we well with clinics, as needs. they care communities select of have from separating market We're equipped

discussed testing COVID-XX call, last mobilized as have to on serve our to communities. meaningfully our we regards In

and model care was can along sites testing on with expanded our essential Our services built in-person short, the COVID-XX of In testing plans; follow QX spectrum quickly. In through in responders provide as brought our workers. parallel and care and weeks, mobile testing locations guidelines, CDC high care in frontline testing of and with stood we individuals the across screen, focused XX we a move symptomatic testing in results up up inherently members needs. and supporting to We test in-office services QX on markets. testing matter a CDC guidelines. In risk our digitally

mayors New York and and and populations community services while efforts San with those essential These the in offer We brand support high screening testing Francisco City engagement other to us partnerships free of also need, to extending announced workers. awareness. community risk to our presence health allowed and

of shelter-in-place the efforts able just also for partners. now network health members care revenue partners to our One at providers York reduced hospitals care the Community requirements work Sinai, they me influx Let partner, search arrangements as visit canceled In elective our many City our acknowledge our partnership the to up through our such capacity. today. revenue generate of wards but there from themselves Mount position are COVID-XX signed volunteer became Moreover, as potential overwhelming, create health of to they patients, them. continuing of Medical where valiant network also through volumes New emergency to rooms not the to in primary visit influx with this profitable places and our

partner General partner our with in integration During advanced Mass our new Health. these our with market, efforts our we launch Portland, Texas our digital St. Oregon, in months, and partnership Providence Moreover, we Brigham in Healthcare. Ascension clinical have have March, begun with launched also and Joseph newest Austin,

our demand both from enterprise existing. tremendous see business. growing We employers, new continued also and We

to in transportation, QX began continue employers. a and set diverse healthcare, media, We sector, of non-profit services, And professional to industries services. the relationships across sell new we in financial

During follow factors, this environments. workforces key risk support services clinical back began screening, employees shared ongoing Healthy launched One support testing needed. Medical as and up screen care further program virtually program, they and we to employers symptoms we testing into our Worksite Through as extraordinary offer transition Together digital to for time, Reentry can and our

expanded to Medical times every when and are mental support heightened. stress, noted, further extraordinary employee these insomnia anxiety, depression and well-being as One Furthermore, day services we by mindsets health previously during needs behavioral emotional our and

ahead the of nation shared looks study Network in never has JAMA value healthcare services in equating employees This home reduce As risk per that uncertain our membership results of health including for times, those we recently care care, care expensive virtual to the model costs. model, Association, Open. our one American and proposition spending JAMA, utilized healthcare worksite who of downstream employers our had peer-reviewed virtual Journal avoidable benefit near to employer to can based the overall total employers XX% $XXX savings and a chronic Employees Medical the and site stronger. basis, and of health eliminate We month. per found effective on our published lower base with costs. One had combining with a in-person study saved Medical been offering overall conditions, By both help adjusted primary member primary

Since and healthcare savings network health launched our XXs including the stakeholders, Worksite membership our better and market have we partners then, growth. mission employer during technology-powered We've and assessments, significant we shared collaborated with network score we NPS launched partners. digital closely and JAMA program. We've of employers, health health in lower IPO, During delivered continued Portland even testing health, One time. for providers And We’ve to Medical with expanded all in our visit, this accelerating delivering now and human-centered demonstrated transform remote peer-reviewed costs. Healthy a and behavioral Together while article our highlighted care COVID our new services. Reentry key consumers, our our model COVID better billable how the in

our little supporting Furthermore, ample invest with liquidity serving members. to our our strong remains ability balance in and very debt, sheet

optimistic the While key COVID-XX company. impacts even tailwinds continues make our can be the extent the all to full are we for our more about and for long-term we of financials uncertain, stakeholders on

we continued that, partnership thank for mission. and With support in your our you

Now, to Chief Officer. Bjorn, Financial me let it turn our over

when you, to January March financials. results. These impact COVID-XX Amir, Thank reflect QX performance with pleased deliver we in and than unprecedented began better our be momentum everyone. strong to anticipated to and are times, Despite and February strong good in

previewed an creating same our As near headwinds. COVID-XX at while last revenue acceleration on term driven growth, in has membership the time call,

our face While revenue believe particularly and broader and collective in pandemic a margins. provide the loyalty, capital both intensity, members, which with portfolio uncertainty to services, brand initiatives long-term more we we of position of should us lower can QX, all to from more tailwinds emerge

highlights March. we count accelerated discuss our results, community throughout facilitate and membership XX% financials Now, membership tracking stronger February let or our XXX,XXX COVID-XX with clear, We acceleration to and outlook. growth acceleration QX QX, clients to me projections this our January quarter on enterprise the This in testing. our members. our our both proposition impact of In ending and value against consumer current year-over-year, were memberships favorably with membership members. even short-term To be to any excludes free organic the

of up Turning $XX.X we these two the includes delivered year-over-year had and quarter. net base in XX% million $XX.X growing revenue grew of This XX% year-over-year. revenue grew revenue, patient Collectively, by membership partnership driven revenue total, we and to streams service We delivered QX, million which XX% year-over-year. our net in revenue entering $XX.X $XX.X million. momentum in million the membership of revenue

in both with revenue on declining primary utilization we to members. and care had you from strong quarantines. ultimately of to net as providing revenue service last February And result in-office community corresponding January us our March mentioned due know, revenue our services utilization call and this partnership COVID and and our in As patient

revenue. or in mentioned net but of I P&L increases of did expenses to Moving care million down COVID-XX material incur as revenue of as delivered we to We did $XX.X a see going March result we margin in not QX QX XX% earlier. reduction of a

additional of our care margin as also our across offices as the well QX to reflects markets. Portland Our opening expansion

we operating of past care which we this below terms quarter the fuel XXst. to on reflects cost and final investments In preparations January company made be line, growth to expenses a the of became continued public

we these As efficiencies largely to we expect as previously be shared expect see to we and fixed grow. investments

result QX was As loss million. of our a of investments, those revenue and a headwinds COVID-XX adjusted $XX.X EBITDA the

is $X.X sheet million IPO Lastly, with ended QX in and We of following our January, QX cash balance our short-term million securities debt. marketable exceptionally and strong. of $XXX.X only

the of take We growth market. continue ample fuel in have to the advantage capital responsible current and to dislocation to

a as the as of there These landscape, reimbursement current few utilization plans. include evolving dynamic take our now services, our as minutes to several our financials Let discuss preservation me on the mix impact the factors. COVID-XX capital are well

Starting with utilization.

early a in-office into volumes before until settling April Our to continued decline suppressed level.

launched billable late have week-over-week remote March However, seen we and accelerating in adoption. visits

We COVID-XX testing and are have equally seeing visits increased guidelines broadened.

During and COVID-XX which have April, services, all beginning in-office levels. pre-COVID those testing, XX% in of a averaged May, remote total includes increase further approximately we across billable total utilization our visits early volumes, billable in And visits. seen

quickly Let the remote me COVID-XX discuss landscape, also testing. visits reimbursement full and

With the regulatory not reproductive or changes, services remote like vaccines to rates said, visits recent at currently That do are of or involve remote in-office reimbursed visits visits. the equivalent care. procedures similar administration

in fee this a lower service typically average reimbursement. For reason, visits average for the results remote

visits. than for in-office lower average for remote average and Finally, typically is reimbursement visits reimbursement both COVID-XX testing

we cost some persist our time. initiatives with capital options to strategy, should several saving enacted for additional to COVID-XX deploy preservation headwinds Turning have

As spending. we had immediately discretionary most emerge, to cut COVID-XX started

addition, and diligently our hiring non-clinical are In variable we managing for almost stopped we all have including roles marketing. also costs

initiatives While staying spending are we true to mission. PPE to COVID-XX cost with saving more by we’re on offset working and materials, that other our specific

patterns A office footprint time, working office reviewing we are year providers our the member. and footprint we may that an a number optimize visits Long-term, offices clinical XX XXXX launching demand of in shifts the XXXX. provide to that We in of and real to is may XX expect some opportunity office positive we and staff per remotely. this estate now remote physical per further of to with having into our our outcome the Over open in-person in staffing reduce footprint. have offices new due care Further, to deferred providers shifts increase some model. some we changing actively latter opening half for were

and membership expect to finish we enterprise proposition our QX customers. As to and consumers in guidance, with growing terms continues XXX,XXX show to XXX,XXX strong of which to total between members, value

management, long-term cancer vaccinations to Turning to cannot screening, of reproductive the and name time, for will although few. health, an in-office deferred visits influx wellness the from our also health for may include return. This predict revenue, sharply will disease or future influx an demand appropriate behavioral we a continue how treatments. expect COVID-XX to at care when and volumes care chronic drive In other we

.

the City expect some accelerated as continue of that, said Having Amir including demand for strict shelter-in-place earlier. Bay have tailwinds Francisco as area our orders York we services, and largest effect. New to geographies, from remote San in Yet visits long-term meaningfully COVID-XX virtual mentioned has

shelter-in-place timing uncertainties, million. range of deliver million pent QX based the the between the on variety mentioned, revenue and as amount orders from and just uncertainties a of I $XX these our expect and This duration we to markets. demand such and is $XX the for Acknowledging up scenarios scope in of

the we and the screening virtual return QX provide, few. of network health compensation rates uninsured the that reimbursement care for of factors continue our for to work to addition, to name could and visits, include results and strain some testing, the influence In our swing financial a partners COVID-XX

Turning to up virtual to care continue and strong in-office profitability, sign we for and up to services preparing continue demand demand pent for members. visits for the service and previously are mentioned COVID-XX

expect and for loss our ranges by of cost the largely cost care million therefore care and to furloughed loss million a COVID-XX reduction incremental between our initiatives. As guidance, EBITDA employees. reflect million or adjusted $XX margin and fixed $XX $X million. a $XX and any deliver a off of cost not We revenue our result, have These between laid we QX QX profile offset

XXXX, than value In we to year For our continue and particular, more with model. having see interest before a full in strong are the growing conversations robust we employers ever with pipeline.

value confident on are first As our Even we we rising net Amir members unemployment, levels mentioned, in have strongest new remain in half of our to members. the history. track to with proposition of

a between members. now raising with end XXX,XXX and XXXX a we guidance XXX,XXX count result, expect As XXXX to membership to are we membership our

the XXXX surrounding given From are a COVID. uncertainty guidance perspective, providing we not P&L

will will QX believe we a However, QX and trough, that QX improve. sequentially and both represent

unique a brand the our adoption. increasing these of factors membership that and our time in to our long-term loyalty long-term We during provide can our attractive the IPO. are believe demonstrate We growth, revenue power targets deliver product and we driving margins. We accelerating tailwinds diverse previewed model, will equally confident remain to we that financial

gratitude frontlines other conditions, these to of to them members environments. some of There the side-by-side times and to would team care adjusting system partners, ever team. rather I express testing our under with team work I on One Before is sincere COVID-XX my who want them of with of the than remote changing been our I have some all no working Medical and other seamlessly hospital navigate close,

you we'd that, questions. take With today. Thank for joining our to be your call happy

Instructions]. [Operator

first Ricky comes Our Goldwasser question with Morgan Stanley. from

Your open. line is now

the the And My good for wide a that we are you But recovery and doing versus and the question million, context for highly a there’s guide about environment. it’s work you end the scenarios in high dynamic low Hi, obviously days. XQ you at details end? high end thank us give all you’re all the here around the a range of are range assumptions of at when making what afternoon. these maybe could guidance, and XX some potential think is the

been in weeks couple New York. interesting certainly of And friends our thanks. it's for Ricky,

you So and well. are our with thoughts as your friends

I the lower also certainly the swing Francisco markets, And there New the of the pretty end end of guidelines. that different to guidance. higher shelter-in-place get acknowledged of still us are right? guidance the to about think under call, lots are which think in guidance, York, I obviously factors could As San here of our versus those the and obviously they largest some Obviously when we strict include about

get relationships of it’s as testing the one to work And the return thankfully you to the for like perspective City New as by the the numbers swing them think factors City here folks and then, then Francisco, help possible. as well, are varies move from there community a reimbursement really of last And not the to get as San those we and big how many So have way geography member. tests could least, of about. obviously, York things certainly other we but with that when lifted, And know these or other. tested varies that one by with

some we those, And is through municipalities; insurance, governments doors and in then don't we we'll government for about get For the paid local locations their local and our between tested this out also of bill we getting the who opened reimbursement and many federal figure folks other insurance. that later. the and have state

that factors So move lot guidance different or swing a could other. in the us QX of one our way

of margins I about -- -- your help you up, So levels, order to follow margin, also physicians? about, more what given -- how rethinking we to see utilization the through care see of We going maybe care cost But back coming to type us number the in commentary to need you the versus are business. if obviously do a footprint increase go normalized were. the where care P&L, fixed we below in came as just go understand margin of think the as component

quarter our me there. and more on provide of sort margin detail Actually a let first little there

I -- think in we at allocated the expected. lower QX quarter of about end came that the hard impact of as we probably to we towards came first a the That COVID about but talked and to on million it’s $X -- last range. in we know million $X call probably in that, So I estimate our

to the have is So revenue right probably you the said run run about for lower from business to to some wanted Having extent discussed. think of fee-for-service coming most into if now normalizing COVID we rate as of the our impact. going understand that, headwind you'd COVID, that

our on margin the result of the care reduction revenue. impact most a really is in of So simply

Okay.

ask the queue questions, back go end people but you. some the and to other me thank of give opportunity Let to

[Operator Instructions].

comes Wieland Sean Our Piper with next from question Sandler.

is line now Your open.

telemedicine how a encounter you parity could and you non-billable? expect on makes around? on versus What billables And billable if long Thanks. the on stick the pricing that describe to environment

for Thanks question John. the your And thanks It’s today. and participation Amir.

and as and health historically that that know, testing digital In model we like on-demand As on-demand chat, COVID well membership model. and of had asynchronous, an our digital had video and you combines messaging included part health we now, an questionnaire on-demand in-person our approach structured care our questionnaires chat. as

primary providers and added been not have is remote visits it There there how billed are could in We handled model. And to billing to scheduled those that with insurance. nothing elective care that's now just previously we we've insurance. have

program now. have We just that begun

you. Thank

question Lisa comes Gill Our with next from JPMorgan.

is now Your open. line

follow that visits. business I well? And I'm get and my just a that think the and virtual for your we setting, will that that today. you think I to behavioral so at similar up to how then about in you to that?” to as you're And need think for continue billing post-COVID do what vaccines, got getting do the on then that about “Hey, how have I can we be And rate to your pay understand at office those that the just care for of, virtual -- looking anticipation Mindset secondly, but product billing comment and we plans Amir, product, going virtual a how environment. annual looking think as I've the as you're paid combination for care a health we come about into care will health a this and to Is in provide you'll new made

you, Lisa. Yes, great. Thank

on Pap one procedures, being as suture in isn’t smears, in visits It's comments, they isn't other insertions, us are isn’t reimbursed. or and But insurance IUD them one billing future. those during one should course reimbursement mentioned of removal. the hard for doing are Bjorn doing we to suturing his isn't change doing one know So doing remote the to visits,

thus not do intensity some what what that of is overall remotes can the visits And less. necessarily those those in remote is So done in-person. equivalent, be visits of one can

also Of be hope have are doing delivered and so then therapeutics in-person. vaccine to eventually -- some that less And doing we -- other those, person to a both and in-office walkthrough our course, -- we're drive they PPE in a ultimately, and But testing also we of lesser intensity than thru, in full tending in-person. be are would than areas locations.

members Mindset, members of In One this around with including terms we our And get already is in care One with health of relationships have appointment their the behavioral is an a thing Medical can they primary our on Medical. the our suite engage here so issues. nice services primary provider, that behavioral is can care. with They embedded could book longitudinal health the app,

group have benefit. including visits a are that also We group billed virtual visits, medical under

or We billing have an run a insured self health individual case coaching, employers including virtual also coaching, through that but approach. is systems typically have for claims

billed that therapists, at therapists have typically through We employers are also on-site including as well as also virtual insurance.

So we full range the care it within But of frameworks. insurance particular, fits within primary in have approaches fit model. that the a

lot a we other sending might you And lot can thus model. therapists of costs in avoid to handle of higher we are we of specialists find in the so see care. this is what to that actually our subspecialists purely out and a models just referring that a is we And can because continuation natural

we checkups. asynchronous our have up And follow between these can communications and model membership using then in sessions,

depression. and anxiety for screen also We

health can And on top kind a stay so time. of over population of we

Thank you.

with question next Ralph Our Citi. from comes Giacobbe

line Your now is open.

little to given Thanks. just may with structure health of of are are are those bit want annual is case. revisit pay you changes structured? contracts Good settled, or Thanks. us partners about they your I'd hospitals, or talk Can these that how they the the afternoon. And that and how not economics? the you are a any just imagine system discussions just or upfront remind that -- how hurdles

ever. large virtual plus offices. relationships. as services. technology, mix. up health the us is and the Ralph. as we care, payer build to strategic Yes, and the remote to We do partner staffed thanks, as with to members capital We launch XX% testing develop provide the the direct We the Yes, access. delivered employer networks We premise attract We and commercial put

services member Our on the pay-as-you-go the ongoing for a arrangement fee-for-service discussions with partners partnerships new per this is pay of is these in to us fact testament these the through month in that power a or arrangement. whether per pandemic. midst potential of basis we're that several a A partners

COVID PMPM. reduced a Now also where when acknowledge we that also we visit of behalf and on on of a financials us our markets, financials our revenue but not a but has health the from acknowledge on only in systems collect COVID markets members put just fee-for-service strain that has health we visits our not in network partners they pay

for here targets see expectation. this reflects our some financial Yet thus, we unprecedented power volumes. guidance given fluctuation as can remain our the some health us in long-term So and the ask partnerships of consideration networks a these And overall, intact. visit result,

come at have those back money it was all some terms in back like to a come misunderstanding or upfront, of meaningful trade have quantify, you Okay. mean Can or that of relative and no that? off in the terms fee some back unless I is I’m

Yes, that. not I say did

And that there's say would so, financials. strain a on just is we their what I recognize

potential for guidance. to see of could and ask the this our in some is so some reflected consideration And them we for

Thank you.

next question from SunTrust. with Sandy Draper comes Our

line is now Your open.

there. marketing side the question. of my fairly on equation for you half spend, had change correctly, the versus discretionary no your the the first it a new one there've you of And revenue we sales expense just volume been forward? thoughts and sales may of sales your thinking XXXX, about changes the back about the thoughts there been drive opening there, marketing you're and down, on I wanted higher going expenditures how line. taking guess up much it very about have side. any I any probably into markets, And year Bjorn back this especially in and should push come sales side. hold budget, Has as sort the remember Thanks Thanks. terms thoughts? talked in marketing in expenditures for to you on dial marketing If of aggressive You be and and

your the at Sandy. course of are me expenses think one as we where, them an it thank from point, you revenue. I of reviews look impacted we fixed fairly earlier, was at Yes, and started have our heard And and our basis. you, aggressive particularly a marketing plan cost large had really to does The and increasingly looking all that of COVID year and earlier we model have, financials obviously, we to as overall that

as revenues fully it's from go our action. clear a So going of to margin that fair standing customers pent we’re and think perspective, to down difficult up with relationships we And take fairness be our that immediate amount expect and demand drive our ready-to-serve drive really revenue. actually there's in will a further

to things And we've hiring And for we've our done this are at staffing margin mentioned, are our the dislocation starting advantage as as really we look So take current to we up of the I spend obviously We cost immediately line, the where market, profile. cut care most is our SG&A below really we've another reduced to of non-clinical to discretionary reduced reduce staff almost spending, couple our zero. overall. including And also marketing. costs. in

you. Thank

comes question next William with Blair. Daniels Our from Ryan

now Your is line open.

I to given the for my current the near longer just office the for and questions if around, guys, environment? for actual success curiosity stems care the increased the and XX term to all to to thanks really and if doing speak of capital revisiting need you're the hope for term protect margins, and of or guess locations. given taking wanted that's Yes a awareness color I more telehealth well. utilization XX the initiative preserve physical footprint, and

can jump launch that feel due to I some were Yes, of heard, the I out Yes, and to one, can XXXX. year as start push at offices Amir for free leases into half this here. you latter have started to that we in

really but they said are value part that's our we we said term, value the our So mechanisms want. our in value, our and have our preservation of the offices that of increasingly our are they is now billable virtual why visits, of one a the that of they Having offices. members to visit started and any not is part not proposition, that of remote only interactions proposition. measure deploy. come us, of near Because definitely our with member that, number office capital always can unit measure or the This

We continue value our proposition. is of important to that, believe that part an

more in-person cover the So patterns care. remote market, as continue that in helps at time, want footprint when long-term take Yet virtually with we they more how will a enter able we to to real the actually and members on change, if develop to of us new members and demand depending get same we care to visits. come are those estate obviously

we providers means which on members amount more that remote members offer footprint. a more the So you can and an here less on more build scenario average with to we offices more us specific members can service the and where easily basis, be a of take up while see we care in-office office a with of same visits, opportunity, geography offices. take will in the Because proactive more have

Thank you.

Our next with from question comes Matthew Baird. Gillmor

Your open. is line now

enterprises? where take the you there next obviously for to some with you It thanks wanted a those to Does that results? just more like marketing in fairly great the It ask savings Health. serve step Collective of you partnership these what's Hey, could But with as you that are was in JAMA some robust the a data seemed or tool study shared. about the guarantee of compelling. question. I was that position

Matt. thanks, Yes,

Just that can that one there, reviewed prestigious is out compelling showed take of out this right? of model. This in through the to in a journal JAMA. I studies the peer is this XX% So we more reiterate, cost think our is

the comes So highest we our with population a outbound and quality And journal think of health, this study really unique is with with digital in digital quality combines ongoing a model there’s of we thousands of groundbreaking a our membership then this savings. near-site this hundreds with our where care. showing and the and engage members instance health, from kind virtual also absolutely highest it that offices, an on-site in testing our model

this to employers. see further to the a propositions value tremendous as just opportunity we so, And

can and always that very any track it any than to top more studies of on We've add showed money and data. add said case half -- of first history we're As year this you Bjorn members now in the half strong on that of very, our in save first compelling can year productivity. had we improve

journal Now we have a the publication. level, kind highest strong of

-- to particular value which this So employers’ proposition that we supports enhances an point. justifies or and money, think employers increasingly model we this further actually in be model can shows important think our the proof save will and

Instructions] [Operator

about didn't a I a ago. helpful XX%, questions say the numbers down for -- Bjorn the that then weeks April appreciate guys call were related March I first you way you to I that. hear you on two about membership sense to Any guys of taking two question. heard tell that's the testing. versus is adds May? you talking think so have Two that you my there sense months I Sorry name. you. And of were second, really really

signed you just think sort short-term. at out including that was going there paid have around paid to up figure there early or the a know number? of I testing. gauge a for not something. up But month or may not made if way signed forward. to point membership some it's People Is I of they're comment that

Thanks, Josh.

levels we saw of first So of on a it, put XX% fine in in just a question, actually point for April. bit that your pre-COVID to approximately averaged volumes little

have it of -- it then to XX%. went in beginning those. So went early increase seen an we but May down XX% the certainly down And

on I sitting just Certainly caution we was from not But think a that it's calendar I incorporated given XXth are you guidance. right, our weeks in. that that the Now really where even here we uptake too perspective. a of are the helpful in May, to so we’ve seen and two early will it's quantify

as of minimal. a quarter, really things. about your COVID really was impact of the our of again, first the mean two to with And I that's sort weeks the One, revenue think different you then to membership, relative couple last so impacts started March. associated of see those in we short-term them or memberships,

that there an much of impact So wasn't there.

these May Frankly, show a near facilities perspective, people members the we there, is the that revenue to are on from the take we view a even, Medical our look right name One the -- advantage full to to And side. serve, counting as thing our we revenue out far, who people about much know modest. can That And we opportunity more is testing show membership us more impact and so we potential think as term obviously that our experience what an we as important do than as count. relatively in or get of this as not time much by communities in do the like. things members for

Josh. Maybe just to Thank you, add.

seeing with really plus think its often benefit had most we're what Net We where is I further their always XX this just now employers. consumers. strengthening always loved their Score. proposition, Medical right? value We Promoter One say Consumers engage from

save we keep employers article help retain always And we now this employees, showed always have JAMA we and that. money. them attract productive. showing that further employers, can So we And

during times. primary support these We're longitudinal can We're we your and to provider. can that return work. showing care this during we’ve that testing care more showing have helping sheltering-in-place, ways extraordinary showing to support we with also we're Now even

across stakeholders serve. key that So we the overall showing I of all we're think just greater value

would further closing remarks. I'm Amir Rubin questions like the you. to back call Thank now at turn any over for showing time. not to this I

questions healthcare great, we I And One here for And your everybody your the thank want One out we great your health wish support help you today. Medical great your all is you can serve. needs research well, for for Medical, engagement Well, of with to if to your us, there. and with

everybody we'll next time. be So you see well, everyone. Thanks, and

gentlemen, and concludes you for call. Thank conference this Ladies today's participating.

disconnect. You may now