1life Healthcare (ONEM) 26 Feb 212020 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by and welcome to One Medical’s Fourth Quarter 2020 Earnings Conference Call. [Operator Instructions] I would now like to hand the conference over to your host, Rose Salzwedel, Director of Investor Relations. Please go ahead.

Thank you, operator. Hello, everyone and welcome to One Medical’s fiscal 2020 fourth quarter earnings call. by and Rubin, Officer Bjorn Medical. today of and of joined Medical One Thaler, am Amir Chair Dan CEO One I Chief Financial complete on in our found Form X-K, can issued A which today at related our are investor.onemedical.com. of press available earlier as our website release be well as all of disclosure our in results

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

management’s differ foreseeable SEC, are to comments and our refer of to a risks update when be that to We time creates COVID-XX statements filings today, by and as we views, most forward-looking and any Please Factors disclaim make Risk assumptions report These outlook. investors on good recommendations. our in results per and SEC may or specifically various pandemic with reports recent of to providing other forward-looking for our to will like the believe We materially would our any on our the we predict are quarterly statements. recent are we based part the time business and current Actual forward-looking to comes from the obligation and to future expectations a complexity performance that reports. particular including As annual it the guidance harder statements faith will basis providing future. updated subject caution uncertainties. view

relied nor representing filing believe GAAP can earnings it in Medical’s Our estimates non-GAAP February be also will XXXX. financial of done today’s the that subsequent to XX, is disclosure assumptions we any not our in provided financial statements in on the X-K. forward-looking a reasonable as or guidance press note, a be upon release historical neither we is policy such Of aid reconciliation through release. our metrics call are statements we Information today’s metrics based today’s discuss comparable found as date, public a certain reiterate the One of as on be of adjust results. of A that as through the date. Form it to contained believe unless Today, should understanding to today’s

Finally, shall may to dynamic or and remarks Bjorn may not into to details take Amir and of offer your during updates we And we the greater and turn maybe provide call, over call insights metrics business. in prepared provide future. to the incremental that, in our I nature, questions. their the with the one-time These for may

everyone financial you quarter Today, Welcome call the thank across to on and for metrics. all outperformance another significant key us. we joining of report

our pleased are publicly finish We first report year capping a ‘XX, impactful company. strong to FY to a off traded as

and before. more resonate human-centered consumers continues technology-powered with We Our members, model to the employers and ever quarter ended XX% with year-over-year. XXX,XXX than more growing

pleased promoter yet new deliver to another while as elevated membership number We net best with member an strong more XXXX. now our were to the than growth, compared are hit memberships to than at QX our milestone experience, in members continuing workforces to net addition of quarter was Coming a on behalf end it In consumer QX, record their sponsoring new of employers additions. of of of more this record out added X,XXX net XX. of X,XXX we employers score

retain us our more also contract and facilitating experiences been members spending our makes reductions We to value. we continue to healthcare of consumer continue Moreover, of XX% with and believe shared model has also in of have for in to outstanding to differentiated modernized see than reductions our transformational. while linked enterprise X% deliver model our employers. to out XX% XX X we cost XXXX As ability previously, renew healthcare

delivered markets our revenue, to million new enabling which XX% high also million FY FY ‘XX a EBITDA total growing and delivered FY is same total $XXX healthcare margin We specifically, while $XX.X organization. delivered invest ‘XX. nearly $XX.X transform adjusted XX% In minus in million, or across In we continuing improvement an to delivered net our reflects ‘XX care which QX FY of year-over-year. revenue, results. of of launching showcase $XXX serve of our we strong targets. grew EBITDA and as alone, million to our These time, of the We or net in last results ‘XX QX financial million adjusted ability ability in financial positive revenue, revenue. net XX% positive $XXX delivered year-over-year, indication to We X% double net rate same achieve of further year. at in quarter our continued million the X growth business long-term $XX.X the our QX momentum historically Our

It our day, from serve pandemic Let their to key consumers, and days. network. continues every us further now and they us during our share care has importers entrust privilege serve a highlights providers these enterprise members consumer been with which and our especially as model to health XXXX how payers, and stakeholders, health and includes

while unique grew X see more compared of settings, we XXXX, time, across continue prior demonstrated million we in served with and We to the supported levels We provide to to than during year-over-year. longitudinal year, members in-person engagement care markets. strong over engagement across enabling ability model the our which at in our more interactions XX% digital record our and existing period. Throughout new XXXX, same markets

with XX of engaged the members of twice Xx average we including During at an XXx, approximately XXXX, and digitally person. months in

their interaction needs, health inbound Thus, the acute population only not of and address more. behavioral family synchronous health outbound also health we digital interaction. well-being needs care model support well and COVID-XX our ongoing care, women members, as but membership screenings, Our bundled and asynchronous for enabled care and cancer care, and as well chronic services including

and both to and continue care. Additionally, Visits providers members relationships in-person trusted through build Remote our ongoing scheduled convenient

acute believe we saw range our to in-person superior proactive with highlights as launched COVID-XX XXXX along the healthcare provide experiences, the service-oriented modalities. testing. we engagement supported well sites ability as to offices welcoming as as well of a longitudinal extensive outdoor care, across delivery in provide responses Our We and for

with relationships entered people out Oregon; markets. Texas. field enterprises existing us we California; and more impactful to Last across year, recently, our to Georgia; new Orange more Austin, Our Atlanta, and Portland, most members reach and County,

previously announced, year. we Durham, As Carolina; Ohio; Raleigh, North the Texas within Wisconsin; to and we plan Houston, enter Milwaukee, Columbus,

Accordingly, alone. growth Now our markets While reach, in four opportunity XXXX national into existing any network’s will One our new there primary of further total take markets, market continues considering digital to XX consumers. a for This during health addition be represents the into alone, market to attractiveness markets Medical represent segment this advances a new markets of significant XX% planned to our by and expansion geographies and us our XX commercial care to multi-market before in in coverage or during opportunity $XX in the services. XXXX growth importers expanded expansion our tremendous count addressable end billion populations Collectively, year.

sizes, continue growing markets in markets business In enterprise to addition see of we within organizations new across our existing and to geographies. industries various and with growth outstanding into consumers,

estate, services, expanding coverage began we existing with year, technology, also the to biotech, relationships amongst we continue real organizations During with others. financial professional services, clients, new med education, Throughout manufacturing, grow tech, nonprofit, QX, pediatrics in satisfaction engagement, additional and and behavioral into to grow further services and continue retention our within we can opportunities believe as health. such dependence see base. With to high our existing levels, great client further extending we alongside

manage they health love, the tell cost us being engaging of that employees benefit member to we payers a highly results dependents value-based and addition care In we and our to population. help of employers as deliver and

office, whether to care, chronic these on modality appointments disease care clinical or screenings through their in technology virtual management. choosing, plans membership us of person, enable engage to to through members in a preventive digitally Our for site, We platform, develop scheduled care. and the model team and members or reach asynchronous proactively act that’s remotely synchronous and out personalized on-demand an drive-through plans virtual through in

and in a Network linked to its case study published including as you XX% our As employer savings, to seminal is JAMA may in year over model recall, up last Open. X% study per

XX% spending care care, XX% surgery, prescriptions. article, on department and discussed XX% spending As on emergency in XX% specialty included on lower spending lower the savings lower JAMA spending lower on improving acting low-friction healthcare a ongoing reduce help as levels in for and health well-being By medical their of home and avoidable members costs. employees, downstream can engage and our we expensive

also insurance that isn’t even of delivers providers promoting our physicians medicine. way driven ecosystem, a way and authorizations technology-powered is and consumers, to cumbersome a impacts that compensation way Now it and healthcare nation. alleviates referral provides by streamlines which from specialty payers, the the for fulfilling manual more for to piecemeal burdens practice in burnout desktop way membership-based fee-for-service the so A model providers coordination endemic employers outstanding medicine and a and in across is technology as which

supports developing preventive model teams to our gaps with chronic Our our clinical in members and relationships close ongoing help in care.

at compensation in person irrespective salary-based of delivered Our right delivering care care supports the the right that in is virtually. approach time, whether providers or

and to anywhere. retain health can providers and also we Our technology other rewarding supporting the impactful more more a XX% record while platform reducing purpose-built believe the attract our providers help of Accordingly, driving task organizations. systems factors professionally efforts that best often enables reduce model and burnout, experience in our the and more electronic experience of

In Health During of also Brigham, we the University and St. new care our Houston into partner, healthcare. across our health already support celebrated Healthcare, and Austin, further Health across more and advanced Health, General to Mass XXXX, we clinical markets, further Duke partnerships launch existing in system. in Methodist new to coordinating in We System, and for Medical seamless continuum our care build new in all markets addition Emory our aesthetics. quarter, XXXX the integration including momentum expanding Joseph were with specialty Ascension providers to well, including partnerships partnerships two our Health. to Building digital delighted network MedStar State planned Texas, health four on launch with Providence partner the in alongside announced Texas we Ohio December, our Center as have Ascension

communities me acknowledge They than support clients reached in been most team partners delivering the and outstanding communities compassionate given we past care during year. ever our the clients, have members, this members, times. more extraordinary of entire before for our let and Now to and as such important

not know we do the continue our will members, we our a result what there serve to that be do employees to communities. completely know as lies of pandemic, and ahead While employers

we efforts transform to health are employers consumers, needs healthcare help by networks. providers stakeholders, have payers, described, and here serving key team’s and the As of our collective

seamless of care, in-person per We inviting are and health millions delighting consumer year. enabling and points employee digital members with engagement

the at improved while more than by time, serving value-based same with a are highly benefit, care We employers productivity. health, and population lowering X,XXX costs engaging promoting

We salaried more are to and transactional burdens emphasizes creating way relationships a a that model with fulfilling minimizes friction. technology with primary care practice and modern

with distinguished primary We for care are the clinically health network our complexity building and help and further partners across navigating connectivity to specialty settings members care providers. digitally to of own integrate and

efforts, have XX% We of health a members seen never our As demonstrating our truly cost have to more is reduce and while score, in reduce opportunity healthcare about promoter also excited transformational as benefit delighted opportunity these of for and costs. result the of to organization. we net believe ahead can delight we been members the XX the up

our moments to our few the Bjorn, take vaccination update over efforts. COVID-XX turn CFO, to call I let Before on a you me

scaled Our health currently community partnering in available, us members. quantities presence, With we and departments vaccines support serve with limited of tools are public efforts. to these vulnerable of national digital infrastructure

at markets, other example, homeless York shelters. in workers, frontline And vaccinating and New providing healthcare we in City, essential workers. teachers vaccinations we For other are are

complementary providing telehealth of by also public departments individuals to to health. referred are We local us services

our time. services, appointments their these leverage platform reminders for follow-up vaccine healthcare During the and needs second-dose and to concerns for of vaccination messaging during but course can also video this address chats and individuals

support positions model continue us once early and and eligibility vaccine population, the and our our clients. to well members rollout, partnership is to those it up that broader days our believe multimodal vaccine we we us our mission. opens communities, for you service today, thank continued to To our support While employer your in joining

to Now over you, Bjorn.

Amir on you, today’s hello call. everyone and Thank to

our that in supported history XX%. comments continued during strongest let modernized performance membership operating are year, XXX,XXX members. year-over-year in pleased our First, of additions new our see previous specifically our echo resonate say Amir’s new financial XXXX. and we care comes after me This the XX,XXX of membership model terms and QX the enterprise recorded strongly continuing net Throughout we strength quarter net and with primary quarter show to to for with signed up up our net our increase health we adds. and We more the QX members. ever customers as a care offerings serviced This before, ever members ended in XXX,XXX channel more than added we new better-than-expected drove by financial as than members before, better enabled and enterprise both members, better high or we as watermark represented quarter well particular with the consumer has continued across as been enterprise strength. performance

temporary anyone membership with a members Please last to code XXXX, support who in which summer This caused registers of and health community using As end XXXX, to by of redemption. provides and compares local launched them testing, telehealth result, and use from continues year-end a in our these code, important community enterprise codes a us our to XX% to downloads consumer This we as the to count increase included our recently members. COVID-XX that first, has departments vaccines. or anyone app three of XX% free We referred us respectively. on-demand exclude XX% public membership meaningful our for complementary of expanded XX% COVID-XX mind groups: at keep services.

also don’t And virtual-only contracts where to XX third, a than physical enterprise which available paid footprint. that Now a in less short-term Second, we are we months. that any offering employers is users, service One exclude we exclude geographies have is Medical any

delivered net revenue in year-over-year. $XXX.X QX, we revenue, million in in XX% total, to up Turning

year-over-year, revenue membership growth. QX and membership in line approximately was Our XX% $XX.X with grew million our

revenue partially by revenue. testing membership in QX, growth vaccination net by a continued well year-over-year December. a reflects November successful members $XX.X patient Our QX million, growth shift partnership our reimbursement year-over-year. offset and also service up increased revenue by the part from driven COVID-XX This larger-than-expected fee-for-service campaign was as mix flu XX% for from strong in our as was It in to demand

health a had mix additional as shift reimburse basis As we network experienced in reminder, per-member, we where partners up markets a previously on that no this signed partner. per-month we us

of expect going network this covered abate by we all shift are now members health partnerships, mix our forward. As to

results reentry fee-for-service and to Our of in revenue program, aforementioned partner QX not by million by shift the help our growth just workplace This and the their response. Together revenue also partnership clients membership partnership was them universities year-over-year. with where Healthy XXX% COVID-XX $XX.X driven increased such schools store from growth we our revenue but of strong enterprise as employers, to

included example, For these on-site in services to partnership QX. QX, $X related in compared to million testing our million revenue approximately $X

XX% incredibly revenue net XXXX revenue Our year, $XXX.X in delivering of year-over-year. fiscal strong which capped QX year an off results up was million, full

P&L. on additional results this the CARES At the receive line include a a an we As much, the XXXX fiscal any, related our $X.X to under reminder, funds grant cannot predict our future. distinct if may we established item how of as in we report Relief Act, million income Fund which Provider point,

QX $XX.X quarter million Moving P&L, was delivered of our of care we margin. a care of second or XX% down net XX% revenue. to achieving margin consecutive This

at our and us about at XX our the X in the our preparing to markets year-over-year year, with and million For footprint further making net markets. total strong XXX same were offices year, new future XXXX, revenue in deliver included new for to We offices expanding new XX% existing these or $XXX.X physical XX% year-end. pleased margin results, In continued care taking opened which total, million XX% revenue by opening XXXX. was we investing of investments this in our while or markets in to compared net of time, fuel $XXX.X growth,

and cost excluding $XX.X below, Moving are flat charges our approximately non-cash spend. compensation, expenses, we of such care, QX remaining to amortization as operating QX and million, were depreciation and stock-based our

expanding service This million, discussed strong of costs XX% roll our that we annual public on and For up readiness were the $XXX.X supporting expenses company commitment offering these our full year-over-year. strong included to some calls prior our increase operating growth. ongoing our and reflects year, have over

expense a was EBITDA QX net loss tailwinds million of QX of of XXXX. and net a As X% QX million or of $X.X revenue our or our performance, result revenue $XX.X revenue compared adjusted positive XX% in to

year, was adjusted X% For X% in revenue to $XX.X a EBITDA the loss million of or a $XX revenue compared loss net XXXX. of or of of net million

and were responsible providing fuel a balance XXXX, while in continue sheet, short-term strong profitability. position marketable ample with We with same growth at balance our growth. continuing capital operating to sheet with Turning journey deliver million QX $XXX time, pleased strong revenue to securities, to greater we in ended cash us towards our the total liquidity to and

them and care. We plan a have than with members our strategically can retained continue deliver up ever the of to same proved both we to serving continue the of points execute more reduce before, we profitability QX proof of At before, engaged model and signed provides. than ever towards and NPS cost as time, QX total more leverage and XX that XXXX

Turning to guidance.

We care with to EBITDA. are and members, for adjusted revenue, pleased provide XXXX year full guidance margin you

both are members we color addition, upcoming for In and the quarter. revenue providing also on

guidance, expect XXX,XXX we customers. and value total a to and count proposition to with our with full strong membership, of starting finish enterprise XXXX consumers in membership our XXX,XXX, First, the to year growing reflecting range

P&L. the to Turning

of continued and to membership EBITDA $XXX new services markets. in net of and annual we For the revenue to million as highlights as annual year for continued guidance well the breakeven. to million, care million loss This we expand and $XX our XXXX, as we approximately our deliver adjusted expect investments a existing full of demand strong approximately approximates million margin $XXX that $XXX expect million annual to $XXX

expect XXXX, and and XX and XX enter we new offices across existing new new four to in example, open markets markets. both For between

will technology our to service as margin is further guidance. business grow also investments We operations in and our reflected increase in our long and in our term, EBITDA offering, the care

continues that to In testing and we COVID-XX this year both are potential COVID-XX outlook. While swing we recognize higher as of full COVID-XX material to we particular, level also view vaccines provide our in factors. pleased a guidance, uncertainty create

meaningful Together half to our will second perform mass assuming relates and sites we select while materially testing part the contribution, of COVID-XX offices, we services, revenue testing, expect year, it testing in particularly year. as the the during Healthy first which the in on-site the at As employers our in decline of continued half of volumes

it particularly As currently administering our supply. vaccinations, COVID-XX vaccines. revenue relates to immaterial from of hard the assumes timing these guidance revenue to predict relatively amount is and It vaccine contribution

shifting others, and people number estimate. regulations, swing we business our adapt us vaccination the regional details program the results. able factors, and dynamically makes continue to addition, will of will local be rules operations financial help In our and may impact among difficult to also of potentially to require all to prescribing These and

expect year members, traded which our also made just a had XXXX, of XXX,XXX million $XXX on dynamics of as look company, at by In we publicly commitment the reflect the remarkable incredible closing, first I to and noted. to and membership we XXX,XXX reflects team. the perseverance we possible as the a to finish a to with revenues range million, QX, in we total range count in the As $XXX quarter deliver of net

brand model We demonstrate increase loyalty. a and the unique of our are in power time to

continue expand the and differentiation competitive to by we expanding serve. our our We services geographies

to forward team what for will and that updating has in And look to I long-term you enable we for IPO. want our, partners long-term to provide their employer equally am I clients, health all our during attractive and can of healthcare members revenue our bring We margins. I the communities. outcomes that confident while members efforts throughout previewed all deliver serving continued our thank the excited total XXXX year. and to we financial costs, targets we to which remain reducing tailwinds believe we continue our for better

We will questions. for now up open your the call

with Close comes line Thank the of Genuity. Our Richard Instructions] [Operator you. Canaccord first question from

Your now line open. is

a Great. Amir strong in you, year Thank environment. on a difficult Bjorn. and Congratulations

there. maybe closed your growth as there. articles So I any on to there you be there with curious are employers, Amir, out obviously those having I of is And the impact to and from like employers you I articles. the membership the would vaccine remarks. going in to appreciate Bjorn, hear related anything discussions vaccine perspective curious the get to am whether congratulations am some terms or on think on you comments you your the I just is vaccine?

we Great. Any you. approach. our Yes, true the refute eligibility not and in for guidelines to these disregard gross are that stories, mischaracterizations. thank strongly contradiction assertions and the question. Thanks we regarding broadly Richard, knowingly actual

of I populations departments we in been The eligible we vaccines stride have we of we continue public and and have vaccinating from go waste members. community sure, referred have and So, today, made and great health high tens vaccinating partnering vast of health been thousands public yesterday tomorrow. priority have any am to with majority departments of let not

serving in are essential the example, WNBA plays, York the in Washington, stadium team DC, workers today. New in we For City where teachers,

XX navigate to guidelines across across or unique that registered guidelines are as homeless jurisdiction. vaccinating are vaccinating we with and guidelines. even state each county We than all know different shelters evolving They more We’ve than are cities neighboring the the vaccine the jurisdictions and you CDC as a United different often States. in in provider may and and

checking, schedule place, prior is checkpoints eligibility at at to numerous do the scanning needed. appointment point-of-care have we we booking, Now process of that in-person in the online, verification terms including via time and in appointment

outstanding specific criteria gross But they in their if the our believe of even misrepresented our another However, a we even are or county and booked people eligibility summary, articles for it county. maybe eligible are that abused possible is in still these some either trust mischaracterization themselves outside work. adjacent

with we strongly that public to communities work with our with do Our health. to our our anticipate and consumers, continuing focus has will And we work departments partnership that strengths of employers, go been health. and on in with conjunction public to serve with our of in our continue partners departments leveraging

then you Thank employer X,XXX it call on acceleration year, and relationships. Okay. to so you pretty And count in business, am a am just average can employers? with the per are membership based and that or year Medical curious signing sort an obviously this associated increased member on for are of last level you with then you going Now is up curious employers that. opportunity relationships, an and up benefit seeing getting from be and markets employee progress small or whether XX I I great or the now for employer the of think that, signing discussions there parity One about with X,XXX growth large employee larger And the an potentially from accelerated

short, for mean, see Thanks across geographies. that follow-up, that really and sizes, Yes. excited we are we in Richard. to I grow industries can

financial schools to med-tech, we tech to noted, to from in services, grown nonprofit, real professional everything biotech, we manufacturing As services, have estate.

smaller companies, some of growing And are these companies.

to in to XX markets our becoming attractive services, we and more continuing and digital year also I One as continue your think Now and to into with multi-market I expand think more to are consumer health consumers. along this we everywhere We Medical and grow start question, our enrollment. interesting employers And

span markets. multiple range consumers the and of within very feel those actually about that more positive we serve increasingly, and enterprises can and and markets we employers then So,

very Thank much. you Okay.

Thank you.

comes the Citi. Daniel question Grosslight line with next of from Our

now open. Your is line

a year. end And question. Congrats thanks for Hi, to great strong the taking on guys. the

implies down a XX% to it For growth very XXXX around growth member, revenue strong is in kind from a XXXX. X% guidance, X% which to in XX% a of members, step per

know around testing the higher but flu and you you of year. puts the return and be guidance what acuity the this curious of season additional next vaccination, XXXX perhaps on or year the great? could more on Thanks. curious would Any provide color are. So that mentioned I takes the visits

Thanks, great Yes. and Daniel, question.

And taking think to your to our going us strongly. we’re we key in and think I a allows the a that, continue to expect. grow that step frankly, very back, grow our point, results also way deliver consistently obviously stakeholders just other members we to

the a will of even couple some Yes. are at since what our the of do year, When is here of in grown not by you terms your gives is relatively we at on and CAGR remarks, of XXXX. still in we way Just guidance guidance. of prepared guidance, COVID. here, of around and is in the revenue particularly obviously the example, have end of And tried I what as roughly of beginning low uncertainties mentioned the there XX% look the takes to be in transparent what at

the piece will related is, successful we So we again, flu, COVID-XX as to in relatively flipside continued really going of half testing in to it COVID-XX first uncertainty expect relates of contribution, you’re One a do here the visits were baked to XXXX, materially example, of decline certainly it as progress which COVID-XX then obviously, in we So revenue modest, very in that the had interesting the particularly is, revenue actual testing, vaccination to any And flu expect another year, meaningful the campaign, to we see right? second half the related the here sort factor for here. from how then, of going meaningful is haven’t sort vaccines. and year.

year. of than There as the another look less right at revenue into baked balance of we fact, could sort factor the here of material now is $X sort In swing million. the is our that be guidance

understood. I guys. Thanks,

you. Thank

with Lisa the question line next JPMorgan. of comes from Our Gill

Your now open. line is

very much. on congratulations add Great. the Thanks I’ll quarter. my

visibility dig you going that Just into in wanted amount membership a have to the little bit deeper and XXXX. on of

my member So, would question first be conversion. around

included assumption for detail then directly that the think And think going so you takes converting all enterprise for members secondly, who and on downloads you’re does about not One question? fully process advertisements, consumer now etcetera, into, signing that of And moving you build? markets consulting the your you be members relationship first to sign One as about really that paid the today versus the and to long much of your think we thank to customer, a that my just those those do Bjorn, to And we and So around and an one we membership what’s utilizing them virtual Are how Medical it how what’s employers? How about new sees are signing included. would understand app? community?

momentum first look digitally, XXXX. hand so it fruits Yes, maybe whether here. with we to sales to I maybe about very home, Amir from thanks. the I’ll there whether same-day, take feel we’ve over And more and is that the hand consumers, at have sort visibility the little the we in give I’ll you’re of we think Yes, customers proposition that curve, of additional forward sort the and the XXXX a and obviously both appointments, it whether enterprise we whether the are lot ability on of And of positive cycle Amir talk model interact I and then you here, really And on color with sort that in the as you to do QX. membership, the we into I And net fact, really us specifically so new the think question guidance we the a third have new and comes ‘XX. we terms a for about membership speak, We’ve adds our row best demand a best ability the had in side. net now adds, by next-day power in employer shown strong, our in the QX now you’re very the membership are membership noted, followed now the over of in is I best based here on Yes, seeing at on I’ll of heading QX go with what as to or the value think it think speak. put that resonating to on seeing count. to of to it quarter,

you for Yes, great. the Lisa, question. thank

markets. a questions So offer kind presence where your offering side, in is employers we One that reflections here. of digital-only to our the our One, noting on don’t we a those Now, enterprise which to of were have physical Medical couple you

those open could those full, if One yes. And when in become in-person up markets. answer question, the your will, you members to digital-only if Medical so members, is presence we and And

nice full membership built-in kind growth. you employees we’re Medical when or often we membership or account. membership enter member the could into. of those Medical we’re for on, with the indeed Medical Now So count. the membership, up And will, that markets to us a become whether all One the as don’t turning We that One Now in our the cede does way One count members be if might members users an signing for Now, But precede now for enterprise

enterprise The from is we also other our with is more activating there are growth seeing of and more from enterprise accounts. thing engaging adding with dependence built-in and growth

more we are pediatric seeing using and So and services. people more dependence

past. mentioned as well behavioral into as extending also We’re we’ve in services, the

small So Now, to those greater give large, us really Medical noted, and, One dependence, grow accounts accounts. opportunities with with with medium existing new with and nice in markets, across activation as

Thank you.

line of the from next question Ryan comes Blair. Daniels with Our William

now is open. line Your

you question. want the Thank commentary continue for on I Yes. my little a with to membership. more bit taking

like sure customers the services there. they two, case. then higher might One, assume modestly I have some but a seems behavioral are of rate’s a retention I of a more as year color you not this that revenue It couple Treat than would up regards. number that, And members consumers, be XX% the want higher And that. term mentioned really I business think this, the the positive DTC nicely. the if are think, on additional use longer or little enterprise I’m the to that’s level. of potential get from me kind I for to of Bjorn, may That’s enterprise in but more

means those So, what aspects you two that for of and any uptick color kind on guys?

Yes, great well as our consumer we’re certainly side. our question. And performance with on very on as the side performance the enterprise proud

the it really to goes perceived. is think I how proposition value show

built-in over interesting growth this, in mentioned of I an engage employees side levels time a that thing, time, out. actually, to I for the are benefits couple from think of really enterprise trust that, and yes, there the your out then with look, can couple particularly And start you get you sort enterprise more. start departments, is you the of over members is on important are It customer. to point Amir us as just a think

And that pre-sold You talk, people the experience had. or that water-cooler employer. going about get whether already in-person, that it’s you’re great in virtual

employee, Medical. have to One access an As you already

Point So customer are as point up-sell they certainly member become that’s And targeted it one. other it’s the potential the OM a lowers as additional well. the today. hurdle predominantly service here, enterprise an certainly to two some your whether point here to Now or offerings, of

So I to dismiss consumer growth. want don’t the

customer comes of a whether think And delight day, at the enterprise enterprise somebody us equally, exceptional the as very the end consumer doing. additional and them or is but a And provides of visibility. as it in part we experience. I with we or what certainly runway employee, to additional all comes the same an somebody important we’re an want of give in them

for as a maybe last guidance you, you’ve been you basis quarters, Okay, quarterly the for I few another and but question that. care great. then well, Thank think on EBITDA margin quarter. not And over this offering

as curious consider anything open So the the in markets. cadence need or it relates care there as we obviously margin I’m as if maybe that our impacts investments models new to you regards to year just to for this start-ups, is

So as any color cadence profit think the there for about that Thank consider should commentary you. we the year? we

Yes.

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about membership leverage your of care the membership, G&A really that model. and membership the the think most I probably marketing on two revenue, side, you when and are then revenue and thought it with beginning and of help that We important the metrics side. model the will you’ve the got where margin sort have sales And leverage the So drives on here you that, all are then our of a We’ll little bit to on in the in geographic second continue invest where part we’ll question of continue the best invest certainly in try to to investments. to footprint our as that sort we can services quarterly And our technology. invest throughout be the year, we fluctuations. continue will we will there spread as obviously, to but your will

Thank you.

Goldwasser line comes of Ricky next Our question Morgan Stanley. from with the

open. now is line Your

Hi, good Yes. everyone. afternoon

in member. growth in when to going of guide, the I have So much that I end when unit unit and assuming a the a sort fact because economics. the despite And about opening about profit of measure good economic upper in the profit assuming you’re question I COVID that per-member new and think gross sort and you’re centers XXXX nice about on we regions have of the your less guidance, think of you’re not as new testing for it vaccine, think you’re per in XXXX gross

I the forward? of the these now that growth visits? contribution start a video vaccine, And one. should you about let’s can about that with have have talk we So the we this that? And think drivers? margin a Can of structure to product, going How we the talk about maybe follow-up but impact then about on the should contribution think how billable fact right, the we new

Sure.

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those So per Yes. continue that of revenue to certainly are will member. what part drive

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video say from about and get now telehealth But can is reimbursed visits because you the that the higher-margin the side, each that interaction that you it it not interaction? profit is couldn’t, member, pre-COVID Bjorn, of with fair thinking for to and side, that revenue a I’m

– in It’s definitely higher-margin interaction a perspective. a percentage a percent from

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our helps and what helps It footprint, own more does So us efficient with more helps our us operations. serve it is, better. it our with us certainly, it become efficient members become

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average reimbursement can’t Now at visits out I those things – certain that for point that are remotely. want the right? time, to also You is same there you lower, do simply too, the

You COVID can’t vaccines give people remotely.

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$X and can And not I which very low you’re I allocations. It question. is I there’s just supply a lot the that appreciate around ask seems million. mean that visibility contribution, of vaccine assuming

opportunity can J&J you maybe primary look vaccine, the what maybe COVID look more testing help could setting. us reframe help maybe like? just for what got I the care your about COVID when vaccine you If remind Can J&J your – us frame we testing you your of share to in to the of I share which seems share to be total Can mean, us suitable percent it, think is?

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public about everybody Early get the of We vaccines can Amir in little come relative us. we testing thing health. are pandemic, a same bit talked and within now dynamics at there. mass sites. tested on with states the and in the the saying for we testing frankly, departments to COVID And said of guidelines yes, And are the the

comes That’s for right? Running with as those additional communities. right as to nonmembers. governments think costs. able labor. of we with that to done then in the the It can expense, thing yes, it’s the is whether members local many frankly not a part. also and continue sites work the And strong state take we and revenue more, for tens ready, other the is and we that people federal because many take first many, And actual today, what which we with have thousands So we’ve to foremost It but is that, do to platform willing does are or people, just start-up and that order free. those vaccinate certainly not associated vaccinate, will of does

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question the [Operator you. Thank next comes Our Deutsche George of with Hill Instructions] Bank. line from

is line now Your open.

on Nasima for the Thanks George. it’s taking for Hi, question.

relatively color So technology you. XXXX. that investments flat in any stay margin into going continued other dynamics in expanding on and next price to the you impact lower slightly Thank year? provide Are or mix more besides is the guidance in Could care new there factors markets? will margins

think Yes, that... I

just as in XX I noted, North we briefly the Texas; at Yes, year and Well, Austin, just add, in was you the markets. Carolina; and Texas, from to we’ll Houston, opened XX going in be end going We Columbus, to last we’ll thank for question. be Milwaukee, Raleigh, Durham of launching Ohio. Wisconsin;

also markets those in prepared expanding, And digital continuing footprint as existing our in Bjorn including our our platform. services will mentioned grow remarks, markets. And we physical significantly will his new and expanding and so we be yes, to be

that in that margin. care So, is of assumed all

you. Thank

next comes of the Sandler. Tassan line question with Jessica Our Piper from

is line Your open. now

on question. Hi, for for the Thanks it’s Sean. Jess taking

How Houston, of Columbus. of openings on should interested this are you So to the I know new think guys about Raleigh, we’re think that some if course XXXX not year? And open or in XXXX? geographies the so, accounts And these over in of of the will then place? those with kind current were employer until go live we these opening markets year, like the cadence

Jess. question, the for Thanks

COVID. half physical the spread frankly, be put in the with of by typically to these of markets The roll offices terms will new But out also year. delays sites will time open year in and up those We given more with ramp markets, in some to ability each back varies throughout staff partner. and, the

how that. about you think that’s might So

the of of we have those members turn convert and will, discussed also of into One terms multi-modality those enter there Medical presence yes, is is opportunity employer of those you exciting what In current those on Now have some opportunity, if when to kind we before, One employers markets. full And Medical have markets, opportunity kind virtual-only in we that members as members. do lives of some as is we to,

of the multi-market presence. business, current come furthers to this not more adding with of addition markets employee this as ourselves, more their of capture and now of So bases employers, attractiveness our only likely more we’re more but to we kind to – network hit

you… Thank

Thank you…

A quick follow-up.

attractive a it guys footprint, are the footprints existing guys more XX-city that might – So is the sort laid to grow IPO markets? of within and is still you penetration looking that around as you MSA within at kind target yes, thinking or be XX try to the existing to of look out maybe viable you

XX Well, bigger than we and we much think in grow that. can even

an here our right, we’re is. in scratching base of investments just the this person. total you just highly reasonably infrastructure I as have using members in that today, that growing that We were is And example the the And the digital, were X technology with markets, just on scalable of addressable that we we’ve what and them – as built, it’s and as surface. We’re X mentioned number year, XX engagements But we top mean, of. leverageable. even nominal given overall that market

grow. But also, So to we surface to expect scratched the existing would in markets. we’ve continue only

markets, to opportunities in there. massive grow we’ll existing continue have and We

populations, expanded So, markets, employers, lot markets, existing consumers, big a us. you. expanded employers, services, ahead opportunities, Thank existing new of opportunity of new

you. Thank

with last of Our question Credit the Suisse. Singh line Jailendra comes from

Your line is now open.

employers as in landscape, virtual to consider you especially large perspective? your payers squeezing for telehealth competitive I on from the me described? care, care primary virtual complementary offerings through or like Amir, virtual was primary investing those platform. offerings Would in comment there. several thanks you guys, to if employers’ in you wondering you compete Or Thanks Thanks. offerings a companies market can heavily would trying characterize those care a

what think is needs key I’d I doing powerful. in stakeholders, Yes, And say unique Jailendra. we’re of multiple way. the a we’re Thanks, very Yes. addressing simultaneously quite

in attract And So well Promoter a members care, the to quite United off is cannot care major utilization, States. XXx great So in we’re payers, clinically to simultaneously also and for but only differentially burnout, And can providers. of we authorization. medical the specialty referrals, which digitally finally, us HEDIS different. it And delivering and retain We we health we’re took that collect reducing across that information. systems more referral. physicians can allows very that in cost treadmill, a We supply burning addition right? innovation, year. get record can our digitally scores. right? and the perspective, We physician Net the We And XX up and is We get that think reduce get and our consumer navigating showing fabulous demand on delivering engaging kind that we’re and that the outstanding with then technology. help side, salary JAMA integrating then coordinated we back are differentially, employers model. the of get more have a that we differentiated. quality cost We them a the in from on can and And system really the that can hospitalizations Scores as on reduced that’s own as care we’re really quite complexity appointment. this follow-up out the and then side of XX% consumer. into salaried post-discharge purpose-built of to visits down That’s really providers fee-for-service and taking person own we’re behalf model of our through Publication doing and generating

thanks a Okay, lot.

Thank you.

the will no are Amir closing remarks. Rubin further call to back at There questions turn you. for I this now Thank time.

next the Well, everyone. questions, and joining we great great us continued today. thank to the seeing so you great a interest, look for Thank for your time. everybody Thanks, Have discussions, forward much you you evening.

this gentlemen, call. you conference for concludes Thank participation. Ladies and today’s your

now You disconnect. may