1life Healthcare (ONEM) 13 May 212021 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by and welcome to the One Medical First Quarter 2021 Earnings 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 hand the conference over to your speaker for today Rose Salzwedel, Head of Investor Relations.

You may begin.

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

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

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

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

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

first we on you perform, innovate, share for and Thank how results and to you Today, from everyone joining we continue our quarter pleased us. to are grow. update

on to technology-powered continues We of deliver new strong human-centered QX for in of financial growing saw continued membership our and and the employers as in model number as our record consumers. net number quarter additions quarter We care. our results to this care. a performance a dedicated and we and share team's our total communities commitment quality service-oriented reduce serve cost value-based high can the we additional how proof members continued Through with of innovate, team to our points

vision We broad employers partners a health with distinguished attracting and also grow in of share health and to continued set who by network care. our aligning transforming

XXX,XXX the addition net base new our our quarter performance strongest added added our membership ever enthusiasm results during QX and quarter growing we of members these our for XX% upon and organization. of margin million or XX% our membership have up delivered the the XX,XXX developments our than $X.X market. investing with Starting in we as XX delivered of leverage net EBITDA We members revenue, we These further net QX XXX,XXX QX our months. financial year-over-year. $XXX members year-over-year. in And business. adjusted revenue strong as over extreme positive was in QX care was same we more reflected in ahead which for XX% the in our the inherent QX while at with million ended opportunities and time, past proposition of All showcase build $XX We model. momentum of highlighting are our million value the delivered results

This financial and continued have strong team delivering care in-person delivering clients service to convenient and to members providing addition dedicated digital our visits and on-demand health, outstanding care perform testing. scheduled by communities. In results, has to included members, remote our and

of our many our communities vaccinations, markets. with We COVID-XX serve have continued in also to

our employers, Our health program to digital services. One health members, serve health health country and cancer disease population chronic a as approaches. management, able support with for other behavioral system sexual across serving members' we've to the care, through employers in-person evaluate conditions. needs, remote as health, We've for nationwide women's return-to-workplace and ongoing health, they Now reproductive By continued needs, acute wellness, Medical supported both, longitudinal care LGBTQ+ has Healthy care of Together screenings, also been our

setting, continued family, healthcare primary we've for health One have our our One we complexity model's through demonstrating And, innovate and into members. our also broader behavioral the of continued the needs, have extend to Medical continuum on navigating by and the for to health mental across our costs. specialty We solution. into for further Kids, growing also continued whole own caring by pediatric Medical of network services care to to care care Mindset, impact parallel, In coordinate health reducing

better to needed Our through condition technology better and clinical and support specialty approach to with better platform, to chronic gaps network providers with care, health when interfaces out salaried with digital care, our in leverages care clinical virtual coordinate of along our patients team to in-office partners. own and reach

costs. demonstrated reported the quarters, a of that total plan one during outperformed of we plan's One our ability value For care. that of and the example, through Medical and data the both We care proposition showed last model transforming on average, professional, reduced we members The delight markets, health in health believe from performance are cost for differentiated two to the in that, cost reductions large and our health how Medical's for of One show trends reductions in our inpatient market. members national care, pharmacy data outpatient, total demonstrates

and our deliver in new continued we value-based innovation, we our heights advanced performance also As strong growth.

combines with we real organizations a demonstrated nationwide and with manufacturing, relationships for services, are track employers uniquely financial and that retail costs We integrated we XX/X open that inbound services, expanding primary own pediatric model, believe, care, employers helping market. Our telecommunications, and set across and partners. estate, new value-based and services coupled sectors. care doors, care, and along professional with and breadth with for multimodal whole serving care record in person with delighting salaried is see population coordination non-profit industries care, of In family healthcare, platform, and convenient care for health, members of manage and new outbound an We health of and continues diverse our to telemedicine care behavioral whole depth QX, a with began care premier partners. health, in-person our testing, with the our services our into specialty providers, of differentiator strong growth

see long and market to addition continue our runways health for presence we partnerships. our we continue employers, network In growing growing to expansion, as alongside

recently & to partners. Wisconsin, As Raleigh-Durham and with Scott South Texas, System. plans Also, metropolitan we're premier shared we White partnership to expanding that into pleased network Baylor be Florida, to were on North previously, Columbus health today, Carolina, in with we announce in Health the Miami we Dallas-Fort pleased University Texas, of partnership plan entering Ohio, Milwaukee the Health enter area, announce System. alongside And into will Houston Worth,

grow progress greater by market provide care highly and a Our care that in distinguished transforming can healthcare, to coordinated consumer of levels enterprise deliver building more outstanding expansions our clinically impactful our with enrollment. value. connected opportunities more alignment and us make allows digitally partners, with health to ecosystem Furthermore,

in clients, care network extending our to X,XXX approaches. today. support bring employee continue with over through opportunity customer of costs, Together, And our just solutions look new to Pareto's aim a X,XXX the engagement week, We modernized leveraging to last more well-being employers also primary Pareto's we than announced in partnership base, health improve to ParetoHealth partnership forward health employers care health nationwide. to serve with model. innovative our care employer and employers We experience managing

of Southeast to part and the excited are some we serve partnership, this also As to Pareto's in Midwest presence, in expand Alabama clients in-person City. of our Kansas and

new last year With markets, in-person of these are XX the from addition of in-person markets IPO go our to the markets. track at nine to we time on

perform, innovate In representing quarter, the Beyond in provide us markets grow. health US digital commercially we opportunity care population. XX/X multimodal employer insured nationwide solution, nearly deliver these our this XX% of we the longitudinal how an advanced XX closing, markets to reach and of

deliver performance on a strong to and year in start the we to guidance. great XXXX, been FY with line remain Our has our initial track

impactful to members deliver XXX,XXX team Our care QX. continues as to of

We and while innovating technology outcomes through costs care advancing reducing are better our experiences, health growing. also model, better we clinical and and are platform healthcare

delight ability of stakeholders as costs members a healthcare reduce multiple how and to opportunities, healthcare Our providing scale. model's transform we and number see unique is key growing can

for health all in value-based joining and digital model call are into your partnership today grow our of partners care, expand markets. for continued We with on services track mission. our you to to thank aligned and continue We XX coordinated and nationwide our multimodal our we for

Bjorn? Now, over our Bjorn CFO. to Thaler,

good be with everyone. and to Amir, you, Thank

We on to XXXX financial in track are QX, our pleased outlook. deliver share results which on put strong to us

briefly well on expectations During color discuss second our the today's for results the as full year we for as provide quarter, call, XXXX. our quarter additional and our will financial

as We ending First, QX. with base our net additions, the turning third continues members. to grow. membership XX% marked XXX,XXX new consecutive record value consumers membership employers and of to quarter proposition QX our quarter year-over-year, expanded both by with our

any count this a and reminder, our users users of membership to community during Medical we service virtual-only for, As part our temporary as Now pandemic. continues One exclude care

in to recorded Act, has Turning the of a distinct in total, the Provider $XXX.X In been revenue delivered million revenue. our grant $X.X under in related Relief income million item year-over-year. an QX, QX Fund, as line to XX% net includes up revenue we CARES which P&L. established

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

year-over-year growth. was $XX.X by net from partially partnership revenue million, This QX revenue growth our also revenue. a part was to XX% COVID-XX reflects by offset patient from reimbursement in Our mix year-over-year. testing, membership fee-for-service up driven increased continued strong It shift service

on we network health shift forward. going in partners on abate all Since of that us signed health we As basis. partner up Hence, August previously our as experienced reimbursed by basis, fee-for-service are partnerships. where shift members no per-month reimburse we a a were per-member a last had additional mix network to reminder, this now this we and of covered year, expect markets

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

Moving markets. same time to making margin these down delivered deliver XX% for markets We We preparing growth, in investing of to to while future in or net our strong continued care pleased and investments new million our of the $XX.X P&L. results, fuel were which QX included existing revenue. at

cost of below Moving care.

support adjustments and and in functions. XX% we our continued Our excluding up invest year-over-year were operating sales expenses to non-GAAP were QX $XX.X marketing, and million as technology remaining

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

strong with with position balance balance responsible to growth. sheet sheet. and total and in marketable ample Turning with capital continue cash $XXX.X liquidity to We providing us short-term to a ended our securities million fuel QX

Let us to turn now guidance.

colder we count QX Please our our of reflects membership that finish typically membership the to XXX,XXX in keep historic expect range trends historical revenue with higher and the seasonal months earlier-than-anticipated to in expect of compared guide more QX $XXX membership revenues mind QX of range in the seasonal in to we XXX,XXX and COVID-XX in QX where the to saw volumes. trend members in We in and million. additions relatively fee-for-service with QX. additions Similarly same to in as moderate revenue moderate reduction QX a the prior that and business net to see QX deliver our QX guidance more well as testing million total $XXX the we XXXX, winter QX reflects

For to the we full expectations. pleased reaffirm previous year are our

and of total We expect value growing XXX,XXX reflecting continue the XXXX XXX,XXX to count finish our range in with marketplace. strong to proposition to a the membership in

and care expect million the to We a noted. $XXX EBITDA revenue annual of to We approximately light margin even just approximately also breakeven. loss deliver million guidance million adjusted this net $XXX $XXX COVID-XX million, to million we in $XX of continue to of annual to approximates faster-than-anticipated $XXX testing reduction of that in annual volumes reaffirmed

As a volumes point, in you volumes testing in April. meaningful recall, to not COVID-XX testing may seen we we do decline initially beginning whereas half At the of prior had to testing volumes expected already second we to in this have XXXX, drop levels. expect return meaningfully

of track strong quarter technology over this deliver model, operations. on guidance results to service our XX the continue we next particularly to XX our strong remain a we plan result, and a invest XXXX. of grow financial and strength another pleased closing, business as In to As and offering, were and deliver to the financial markets highlights in continued while months to we

continues ability and our demonstrate members of continue healthcare long-term These simultaneously Our US to in and the nearly our business. while Thank longitudinal we opportunity multimodal to trends time your our attract the as costs. you care our reducing tailwinds population to resonate today. commercial provide to value market to to proposition expand for XX% coupled delight with unique

We the open questions. for now call will your up

Ryan [Operator Our line Daniels comes the of first William Thank Instructions] Blair. you. from question with

open. Your is line

with bit start on maybe thank I relationship Yes, a the taking for Amir question you the more the hoping detail you could and announced year. ParetoHealth. go the into congrats about strong little you was to

somewhat a that's of model new distribution organization. for the think I

So revenue a how that that work a or there's on the if any share for from And will organization would color perspective arose? helpful? how financial be

XXXX we're excited another Yes Great relationship. company Ryan. is reach arm instance, and small insurance captive this serving It's us Pareto for question. this just a employers. Thanks the employers. medium-sized about really in about for to distribution

they seen on So only to on care make a and total care. health our distribute high cost helping total health value delighting us digital employers, manage it but way really provides not small they've NPS model but can in-person care great ourselves the of not only to also great impact reducing their further care cost of with them. And our that the and consumers get

and So to midsized bundle their this offerings they some allows serve us employers. as of in them and go small

guess follow-up as different That's And helpful. I Okay. then a topic.

you you. in has know through pediatric been the I the in rolled the up both service brought broadly that market? offerings. You and I'm and behavioral is across can taking behavioral your for relatively hot that's behavioral been those how base in with Thank and market how the and curious out particular particular adoption physician place and virtual visits. both

Yes, Yes. this really Thanks Ryan. exciting. has been

team behavioral model. interconnected the of model of our kind we power part of providing coordinated our that is in care of and our our think is a medical model combines of and I salaried that on And are organization all integration.

primary our we could We services, behavioral health So coaches. our use use also we therapists. care. use We but group address can our visits. can can provide We certainly can things in

we seamless referrals Somebody complex care for needs network through could our of care. more arrange

of So interconnected of that really distinction our care. is the model

Thanks so much.

Thank question Gill you. Instructions] line of the [Operator from JPMorgan. comes with Our Lisa next

the Hi, and to the good COVID. understand I just and for afternoon my pertains thanks taking within it better as to the question. impact guidance quarter want

quarter? talk secondly would in flu range still of quarter expect your we're think COVID lower programs once Together net like reentry and when would COVID testing impact COVID. we April? Bjorn what's the lastly, of year. going is falling normalized guidance? about can as us can also both And just you past a with it the then think and a to set a a in more have in the And about heard there in versus long number about the to had we in I patient what revenue I'm to testing How how How trying think So think Healthy do was testing. of business off about really that, then the this give onetime item? then kind is Bjorn do in I forward I And So kind an the those start you what think level maybe I Amir Healthy COVID Together that last? the looked

way a all maybe business there those normalized three triangulate basis? is to think of So your about a more to on

and on COVID-XX to Sure. back Together. Amir take I'll a I try jump some step then give maybe you I'll to can the that the year third I first one in testing, on take of to as sort half. think off do sort and full What a on Healthy Yes, meaningful yes ask color if in the the you the testing that our materially fairly back that then to drops is and to call. amount of testing expect continue half of second said in we we expect first we

today step at really, QX. as had are to look been tests to proud expected expect I April. think have heard you've number we we Obviously, year that our As And we come those of means really back. of the QX that's exception certainly, very just look been of guidance, that for at QX but rest as as sort the guidance numbers overall And say I has we back still nationwide in COVID I that. when there. of levels our and don't increased take an the meaningfully a those also the sort of COVID the we early year, of us testing drop that started to not And certainly, think has and

the into year We barely of we to that factors. many there proud be are and swing third very the remained are a fact

And that headwind we a of get high said, are is COVID can And relative testing that confident we're where there certainly to end we reiterate guidance for we ways guidance we'll to the proud headwind. the we in -- to example. always we quarter but were, face initially overcome the second yes, our very As different are therefore, to we feel can that that today. that able

like flu, flu we We, certainly, it flu year all QX. and the last this season the many year been year in relates before, I QX very mean very to to successful year season who campaign As months. a modest the in this know we successful has that or just symptoms campaign flu-like non-existent in ways. or vaccination flu presented was had effectively in this with members vaccination very, But expect very themselves And a number thankfully, have well. of as flu winter the in in

So, bit of color hand Healthy I Amir, Together. you And hopefully you volumes. that it to gives on a over just little the for

another the Yes. Thank point of to the our to there professional we or to or both that's kind be you, another say and for can Together, in-person for whether whether with and can as just In in help example. there powerful proof care it's care, family outperform multimodal we and their children health out of showing Together that. plans in and Lisa. employers cost Whether services another whole booster going school care, are in-patient, data well how the that to I'd employers. point back health COVID, care, seeing, Healthy believe we positioned markets campaigns cost summer campaigns families serve And the And care. this behavioral out-patient for comment, gaps categories. we're reduced testing we'll the shared if in care Bjorn's health we serve with camps. how Healthy the from of or was and add as flu with to one that prepare Today, proof just total workplace return care reduce cost on with this fall market population across of regards needs, course, it's to instance, leading it's of to we one of drug

to very serve kind all key those feel stakeholders. well to positioned we continue So, of

on you, congrats great year. and the a start thank Great, for

Thank you, Lisa.

Thank you.

line the Elizabeth comes question of from next with Anderson Our Evercore.

line open. is Your

what to Thanks to the guys. for said circle back just much I about want you so ParetoHealth. Hi, question.

general, companies. we've about they're of XXXX? to contribution sort reaching out a way of there health Can that you like that different resonating talk terms a differentiate you're using If it's as like been more of to really been many your sales to and new are it look and hearing members what's channel, allowing and seeing a so HR as And in people to continue and about lot a to HR on people employees? talking yourself you them so then, many expand like in reach. sounds care to great out focused grow Is

those Elizabeth. Yes. Thanks questions, for

On and the is this one we first reach on that way for out get another Pareto, us, employers. just

past and employers. to a into So great get we we've in this reach for the noted far And mid-market as us serve the side. X,XXX way is small

they will say it's way going on serving only and in a that's very its model. with nice here, cost market and care saw what's another focused employees, to So, I power into we're that sales. out gain it's not of company, but our the the saving And insurance money captive

it's tool forward. so, and sell distribute going to additional ourselves great And a

of complexity needs health diagnostic whole to and cost X% it differentiated. In then cost take that is can settings XX% helping why out I a that consumers broader we the total the continuum differentiated records, specialty the delivers high experience with And we and health we and that care. between that Net inbound the of discharge, delight not across that's reducing outbound but not scheduling, hospitalization, when navigating multimodal quite but transformative and mean, really and in information believe this help procedure care. of say care family. that reduce We only of medical quite terms digital and that post health, doing employers, cost XX-plus and way Promoter quite that sense with that of in get medical a delighting powerful authorization doing that care value-based Score delight of owning so can it's in-person in members a of somebody way, for story just care referral can test population getting if integration the needed, and integrating those care care behavioral that digital consumers, that that

So we're really well the seeing marketplace. in resonate that

That’s helpful. Thanks.

Elizabeth. Thanks,

Thank you.

next comes George Hill with the line from Deutsche question Our of Bank.

open. is line Your

morning. your provider the do question lots see that sponsors partnership think we I on think segments to guess, trends model model in the as procedures. there in of you push one about sponsor partnership the care And to organizations model Good partnership with as a kind book a relates of employer continue a you and some is your contention whether trying Yes. at surgical working here it in of Or bundles? like I concert the model? things Amir. of model, works the is if guess looking referral employer bundled particularly inpatient to with primary of bundled well, around, everybody

really us drive see their bundles to anything a or Yes. else. are, network powerful No, as it's whether employers help tool in-network whatever programs care,

those XX% we in took specialty. had surgery previously the coordinates tightly down. care. the we've shown in-network study study, that we that point in today similar JAMA the costs drive proof shared today, health categories. And that from ER we another that in and XX% plan how also In shared on that in similarly both past XX% we we and help reductions can data an reductions in out provider from a JAMA And in XX% mentioned are We drug we've costs, in costs,

help complexity fit that's else. that integrated us avoid design, our employers testing that anything together. whether as We and benefit their their their very of information, own into duplicative or bundles into benefit employees fitting care, see But much we that their care, design. navigate dependents information get communicate So record, we've as can no do also

helpful. That’s

you. Thank

of with Jefferies. Wissink Our line next question comes from Steph the

line open. Your is

you. you Good composition is of Thank we XXXX. this revenue a progress question through for everyone. afternoon, as Bjorn, on the

service, best sequential seasonality looking that Or is patient partnership versus the quarter-after-quarter? well? business it some there the model increase line as to Just at to partnership is as the a

in paid we a result partnership the sign look fee the sort health that at to from per-month of, Yes, care are where we our is think really per-member it's purely members the great I we of i.e. based health as And side on membership our partners’ this a the new most on as a get from Yes, fair for speaking. getting and based network take revenue really we question. line members partners, generally so many network ways, part. PMPM the up,

probably think a way yes, I this. So to think about good that's

to Now And fact point between shift members this covered. have over covered our previously since were in the members membership, covered year, back health partnership. you network by that the XXX% I our will the last partnership, did are network mix not are now that health we by that actually August, of

QX you So of variability XXXX, the sort I trend to to you year, a see that or compare speak of so of QX annualizes, sequential still quarter-over-quarter, just until a indicator bit is that have August of even if of look little last if think year-over-year you in you'll at the QX that good business. numbers. But certainly,

Thank you.

Thank you.

of with question Sandy Draper Truist the next from comes line Our Securities.

Your line is open.

year and just out you question making would keep and you get just members But at more have that would want don't more really perspective; the opening growth drive my number strong helpful. break around new markets. from new you of we years adding than I think new announcements really And in some What's about to just markets job old you beginning guys the members guess should a I announce done anticipated another those to up a are quarter quickly driving market? would then context lag membership coming markets, you I the lag? trying be to are IPO. we trying think And these be sense -- markets. from new and I to Amir how of opening new you much. of because great time pretty or should I'm as member put my any two big about of at about a very have a you the is know the think -- are least versus faster Thank I'm thinking markets, how new as markets about

Great Yes, XX% that Sandy. pre-IPO hear in the population announced in of think Thanks, commercially-insured us the and about in from this that sense nine markets XX we provides as Yes. you to of you. gone long-term to markets from we've noted States. really reach the kind United to almost the now

calendar Now long-term another end of that's the these start. cycle of great to most the growth off reach. I multimarket we positive effects. XX% to And of year population, we're last launched approach gives the this just virtuous serving recent but this actually it network mean below and and that us have the market slightly was ability generates kind this at Austin

with So if more to employers. more we employers, multimarket employers. more you become can up attractive sign more markets, more With sign employers up you

As helps interested. employers, more model more come you more And modernized partners. our that more burnout. you you get then more consumers consumers. work reduce get partners to more in and And when And get that more consumers you have you it if notice more have want providers employers, are partners, more helps get presence, we

US reach So excited And so certainly, fashion be much, think about Sandy. reach more our expanding now. to this people we run able across we're to long in in and the more a country. Thanks, the

Thanks, Amir.

you. Thank

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

open. is line Your

could wondering Oleferchik navigation of a Connor health of health is We us primary This around capabilities health where helps lot I'm Recently Thanks. through navigate care to Medical's there's One care help quarterback if One solutions. going is doctor Hey. care Ricky. hear the navigation excitement And the area and system. patients health for the is care. been on that add an more think Medical could you forward? care coordinate platform how

the navigate for question. coordinate help and We patient. the absolutely Thanks Yes.

we only inbound and times As digital or the results our not year health. or also whether per on care from we're call, care touching but members, outbound that member noted now annual population family, includes XX it's requests the our in-person for acute

manage and chronic back the indeed well. over and people something are vaccinations have we care, about navigate not do their sexual get them? gaps help How of all do authorization? need the do we things get referral health time health they integrated well-being them your you that that happened, And that as then you that now care do How can the help and health help need whole in we complexity like avoidance thinking them clinically to with do course do or can reproductive family? what a cancer where own they member, How just talk to going care, information and then for records get that ongoing we their on, what's do if of do do over we the you do How of real-life But system. our and referral? post diseases? How acute coordinating test So you do that. there How a can system. through can you gets get how with When longitudinally provider, we a screenings get that time schedule? and the specialist? We have over the you get digitally And you an help talk primary actually what's into information, provider about next. before

So needs we different Scores Net Thanks a medical it. We just of the deliver not can for in strong into certainly the retention and such model. the well question. strong coordinated we and see we're part a and member. differentiated. exactly or actually coordinating of. Promoter reason we are in interfaces that delight coordination be that and why and system level strong much interconnected much quite these we providers to more really this but also provides are for of And if so And lot members. as the It's partners that others for is can health of done our our And navigating really connect sitting middle can network of something make those kind that's we of services, care

Thank you.

next Our from line comes Canaccord. of question Richard Close the with

open. is line Your

Congratulations care time in Yes. to on just you. margin a margin. the strong Thank hear year. about maybe, Bjorn, on strong guidance the spend quarter. care first maintaining I drop-off talk and overall. the start you some Obviously, a testing

be from If to is high there you bit guess XX% look talk a about second the margin low progression fourth ranges, I out? quarter would guidance I guidance. for on the care the the based call Can anything quarter to little guess, to XX% the the and ends at you year of

way that. throughout the the membership and in results that strong it's feel terms point you we down the if our about model, I guidance in showcases think Thank the continued, whether we of your growth leverage about great QX Yes, built the we've all our in have very and of, Richard, sort of our EBITDA. outlook revenue for think care margin question. Yes. reflects I to to sort year, it business. for sort that of, really obviously, Certainly, good

EBITDA bit are right? reminder, little about fee-for-service obviously guidance in to a the you're on a a EBITDA a in care does where margin the that the definition, to as again Again historically a, other something And that Amir of it's have QX year your certainly, to bit sort approximately if paid certainly comes fee-for-service obviously markets of line. have of, we we're continue that $XX basis you to your summer recorded a months we the invest continue If in our care QX. little to recurring or growth. EBITDA breakeven that's to you talked see, the in minus the the impact do the is and going is and new our of in part the business going invest utilization, revenue, of on positive million rest By I margin that We're be operations yes, fee-for-service. that less negative whether to that think seasonality of P&L for expect full nature cost getting tends our going all XX% the compared the about QX revenue about model, to line the little in throughout our months the of, the leverage in XX% sort the would and given

the can well we of, as where So in then colder flu well. year Right? unique cetera continue see winter additions mentioned many COVID earlier vaccine, to we you certainly, that the can those of for QX higher of to of to is investments everything as don't more example to and booster shows I for ways if get be as lots tend vaccinations, you know based And has I certainly philosophy like that recognizing different uncertainty rest to It's results said our shots as going year very on back we we you We for well pathways the end. tend that outcomes different And couple for we them year. to our you'll incremental still to is guidance in on our sort make year to with various see see, months relative early the QX to get come this not the guidance get there. typically a membership go a to where quarter that flu guidance visits a take to et and the that. think about our

Thank you.

Thank you.

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

Your line open. is

the making acuity for Thanks the up? patient I'm as visits your mix year? the around acuity assumptions versus And full of the in-person those virtual you're seeing opens of if guys. question curious for and in-person in taking changes any billable what you're

and of have one of this talked this checkups, we checked seen I of to in where half deferred great mean, have far we've and this return their their certainly QX i.e. that year didn't we generally we pent-up certainly trend certainly so demand starting first looks year didn't what go We things starting of through that you. have and I the that And the QX folks is continue, and the for in expect had we didn't this that to about for worked visits, last of normal. their sort our the we XXXX demand the sort to think pent-up and it of sort was question. and things normalize. go It's to one in frankly primary have normal utilization see care forward. had some obviously, relatively of expect going chronic care. book-of-business AXc go we And diseases is their wellness something Yes, speaking,

little So, helps a there. that bit hopefully, color you with of

Okay. Got it. Thank you.

Thank you.

Leerink. with Stephanie the of next line Our from Davis comes question

Your line is open.

the taking guys. my viewed outcome? you're what of of competition advent you're MCOs. question. partnership for with want Hey, potential this Or team this care as is viewing a care as and look to of the would primary seeing sorts market more they virtual-first virtual-first primary of for folks the more out opportunity I pushback are for love a of offerings your to you roll your someone Thanks in any some clients as Is the with from offering? hear how employer

Stephanie. really the as quite Thanks distinctive. Yes. model for We question, see our

up we're to As mentioned per now per member year. we engagements XX

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networks. is month So, as see major this plans an data see we in believe shared in an in-network health we insurance see Net Certainly, care. or outstanding partner. And ourselves that Score. own regard, as call showing XX-plus take participating of as differentiated. total model provider the And We're delighting members very we us their our down Promoter helping cost as -- with this we certainly we're

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So think we're we they same us the I absolutely for good for partners see health plans see as that them. partners good and

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Thank Stephanie. you.

you. Thank

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

line open. Your is

you Hi. my Thank taking for question.

year just renewing full work system annually the and in members their guidance. respect Thank X included for then to are separately date? Alabama were to we health locations ParetoHealth going XXX City branding the captive locations And are think you. a office are Pareto, all start partnership, on those Jan I So Kansas with know and whether and memberships interested how to maybe

thank you Jessica, the questions. for Great.

and as relationship is I things we distribution to gives employers the about relationship this think, have. they that before, exciting So Pareto us X,XXX mentioned kind midsized the of reach of small one that

care, in-person their So and a great. if and complicated. the and with had of kind to They drive and boy, of own, the this actually right that model always you incentives is, health, right do to that some digital And of is members. providers, this their salaried really things value try could to on decided they've powerful boy, said, care primary that's one recognized

distribution and City. part in sites One Alabama taking as Kansas over of so this relationship, And broader you if is their Medical will

run great them We for or existing branded be under will into which opportunity have, there's them. be run different They fits a in accounts, for They us as new any us, to employer is with will opportunity. any that's sales part in. One Medical. model, broadly distribute how sell But us, more relationships and that us an will more our bundle they

services but Of And One health they care also not have can Now we bundle in-person digital pediatrics bundle health behavioral or or our that health where course Medical opportunities our primary also also multiple have and with across markets. our network. to XX in specialty digital in nationwide we in just coordination health presence of our markets

and midsized They partner. benefit do. the see and the great much deliver for solutions Jessica it so outstanding an question. are great really they we with as small Thanks a So we to employers what fit

you. Thank

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

open. is line Your

And for This headwinds. question is the in to the for I you a similar jumping is Carlos note Jailendra. have

and You spoke Can the you on-site demand trends in vaccines? -- COVID touched the upon are about you Thank testing. seeing on booster vaccines, talk touch you about you. you can but more

you. Thank

Morgan from follow-up a Goldwasser question have Ricky Stanley. We with

line Your open. is

answering was but one, been have on other Apologies. must mute. I I the Sorry,

sorry. Oh,

Thanks the you. Thank for question Yes. Carlos.

do vaccines should we flu state talked In been that state to where boosters likely pandemic vaccinating economics-wise help trying is in to communities been see, vaccines do. combined an It's to endemic moving is are COVID not And this something are to and from Bjorn meaningful important vaccines terms obviously We're to vaccines a are are routine it likely of COVID our me, in about boosters going routine of see flu we markets. total, serve routine but positioned excuse to and we're boosters. we have and we something our become we've to most markets.

longitudinal that relationships, whatever like, relationships feel serve well-positioned model our given in very in think we our multimodal looks I that to future our communities.

that. site and do to community. We continue D.C., our public We're continue serve to running that the to in for pleased Washington example do also

you. So remains Thank the but be I and and like, looks what winter the positioning think we still feel fall future there. about our that seen good to

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have I question Ricky? in follow-up closing queue. I'm from Instructions] the in for All to would queue. Goldwasser. -- no over Ricky right. turn [Operator I'm the comments. showing to questions now not showing call like Amir a not We Ricky further the back

we'll thank questions everybody for Well, great. next you joining want and in Well, our to today today the see great really engagement time. and we everybody. us your mission for great Thanks

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

You may now disconnect.