1life Healthcare (ONEM) 5 Aug 212021 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by and welcome to the One Medical Second Quarter 2021 Earnings Conference Call. At this time, all lines 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, Ivy Tseng, Senior Corporate Counsel at One Medical.

You may begin.

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

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

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

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

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

grow. everyone. to and Welcome quarter today with as QX, and strong share continue update of we results from to our In we perform Ivy. And you, a innovate you technology-powered delivered growing results we consumers. second human-centered our are resonating and how is employers on and Thank pleased model number

ago. by also quarters growing Our considering our end few nicely technology, and base. membership our members XXX,XXX revenue all achieved high care our membership momentum end guidance when quarter, XXX,XXX high for the surpassed members Similarly, only of surpassed highlighting of we count the our a impactful our the fabulous our delighting members this delivering exceeded We and guidance. team of through compassionate

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our results diabetes, For member health a thereby study model controlling we outsized improved of peer the enabling highlighted example, in reviewed in how impacts earlier delivered QX showcasing outcomes.

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Turning which in XX% XXX,XXX QX entry to more million XX,XXX XX% membership up We delivered We We our margin with QX revenue, ended net members QX XXX,XXX XX% million, a markets. past was the even $XXX members or a added quarter. growing net members $XX new base QX over with months. reported our which added margin performance, and our year-over-year. than revenue, care year-over-year. care our delivered represents quarterly it XX highest we strong during We had of of the ongoing ever into quarter,

model. adjusted margin adjusted positive of $X QX showcased our inherent Both EBITDA EBITDA and our million. delivered also care We leverage in results the

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team powerful integrated testing vaccination platform services, our health serve nationwide and on combines that convenient in behavioral care. and performance, care our our as demand primary technology population longitudinal digital and chronic health services, members in continued virtual telemedicine, to person as outbound communities and operating our addition financial In proactive well strong into to care, scheduled with a

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sharing to exchanges, We partners with more allowing on network of for members. in technology a and setting the health our information behalf continue also role continuum platform. our We of owning innovate more our care of and information navigating our across with furthered interoperability of complexity data advancing

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membership health consumer expanding and and enterprise presence a opportunities more We also our continue creating for to of and coordinated partnerships, across settings. our network continuum market care growth, more

coverage, at from person year expand addition next XX we considering our to IPO our are in markets digital before on markets of Iora. coverage nationwide In time health to nine the track to

advancing avoidable cost, digital doors and QX reduce City existing health and digitally partnerships partnership care quarter ParetoHealth. with seamless markets while total, care with health for past clinically and offices markets, of total in excited integrated are open launch we Our XX new with new as the where Alabama, coordinate our our across by Kansas also to help XXX care such Birmingham network offices, owning our This along the nationwide advancing both quarter, service of we also coverage. further navigating can we're with members. complexity Huntsville, opened new In and ending during and the

progress in for Carolina, Miami, preparation Accordingly, make launching Durham, to markets, upcoming Milwaukee, continue South in North also our Houston, include the region Worth one Ohio, employer-based addressable insurance the $XXX Texas. Raleigh, in Florida a which see Dallas Columbus, the care Wisconsin, Texas, Fort and segment We United for new the for total billion to market, opportunities commercial primary continue in tremendous waves on more with States. for market growth approximately of

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strength to capabilities together high to in high global Iora's attract, members One Medical's and well chronic risk quality healthcare manage under as costs, delivering ongoing service bring will care seniors to proven value helping outstanding models. retain to delight as with conditions while reduce based We

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and closing, reach across in a and helped our and full XXX,XXX population We to year strong continue network XXXX help driven and as One a will health including half team them reimbursement perform, our expecting also $XXX approach advanced the to health care continue full be able and health health With help XXX,XXX we our million We complexity to now capabilities saving are care will to we plan to within as acquisition Iora $XXX delivered complex annual care a quality EBITDA we of grow. cost. simultaneously that year partners to lives, health importantly, our us full further will while lower Medical's outcomes in believe with to to care million consumer healthier approximately position high outstanding In models. care modernized digital the person breakeven. our revenue as Most support for further navigating costs management of our with members and of members, technology own members with reach risk in adjusted our ecosystem. an technology to and in QX first provide to better and health coordinate powered deliver of value-based be membership performance, we range models, leader innovate to a living

and our We continue geographic in more with growing than members, XXX,XXX differentiators and reach impact multimodal to and to model strong technology depth market. breadth our care remained the of perform platform, as services

continue service powered opportunities, Embedding Care continue growth employers. our based based care in primary We team across into innovate for our serving we expanding member technology to Management recently better care results growing consumers to delivers aligning more offerings. our model highlighting approach. model, footprint, and with partners Chronic execute a and And premier clients, enterprise consumers our and our and many

we opportunity a believe Health just to healthcare. to grow have We're with to today, success and model across your the updated to serve expand senior population, our significant mission us. of We to ages getting are appreciate we to seen started much life. we While our Iora all excited look forward and our serve every creating transform members also in further opportunity of progress engagement you with stage on by keeping

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further forward I full today our Thank results, the year connection model SEC encourage the for briefly you, Amir the Amir our financial everyone Iora's everyone update Iowa like on read our I on to organization. on the an strategic highlight to highlight well the highlights opportunity we and just look would acquisition with an also you outlook. in that And second business combined S-X the exciting transaction, as to our XXXX as and and the QX will of today's Form in nature We of hello which the momentum its continued call. with providing quarter strength update shared effectiveness. filed ahead

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

membership we million high revenue which in guidance. Turning strong in $X.X million, membership to was Avenue total, part $XXX.X of revenue, number I higher continued our reflects year-over-year up million driven $XX.X In up and at the in was delivered and by part year-over-year our $X anticipated in million earlier. QX, shared revenue. than This in growth XX% end the growth net which

strong during patient orders. quarter shelter of consumption which revenue $XX.X Our revenue care strong primary compared continued in up same XX% normalization period driven year-over-year. second the net our our the in and growth million, driven performance place growth was year by part was also by This to service membership of was last

employers, Finally, our from revenue markets select partnership $XX.X of where membership results driven XX% QX increased million partnership was them revenue our and growth, growth This such revenue help strong by together continued re-entry universities workplace annualization response. to as schools partner service strong year-over-year. enterprise by their our clients in healthy of patient we with of continued the and moving program net COVID-XX to

six deliver of were margin which We to our XX million the P&L, reported, quarter, capabilities or care we while delivered of the our leverage in margin at we to model, care months. time quarterly continue next highest down to same Moving and reflects the ever $XX.X opened revenue. the over markets QX XX% enter net pleased new offices XX prepare new during to

tend term. which the care our reduce in of near All margin to

capabilities compared and the leverage as we're QX Moving to functions XX%, excluding too $XX.X expenses, below cost reflects in support year-over-year adjustments revenue in to our of operating our care, this And million. remaining non-GAAP of our drove up XX% we our continue increase technology sales and model. invest marketing,

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

to QX, balance as million of had of end Turning in we cash our securities. and the short sheet, term total marketable $XXX.X

over Iora continue operation the fund growth, that us responsible as this years. integration and ample our several well the of with We continued provides as to to liquidity believe next

us turn guidance. Let now to

million reflects contribution with that we of a million. Please typical testing. membership XXX,XXX QX from revenue to assumes to total XXX,XXX keep range net COVID-XX relatively QX range in expect to in to and mind the We deliver our guidance trends QX modest finish seasonal revenue $XXX the members. in expect count of And $XXX

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million We EBITDA breakeven. be million to also and adjusted revenue $XXX approximately $XXX with annual of annual $XXX net expect approximately to approximately of to $XXX deliver million margin care million and to

back sustained standalone quarters Medical therefore year our One schedule back laid heels a full of four EBITDA, from pleased XXXX, our year-end of XXXX goal achieving positive the the we for to of adjusted update also year-end ahead long-term strong On we as IPO. two to EBITDA positive out with part of are to

very provide to which our ability as are in our business, unit pleased the demonstrates deliver ongoing and to We attractive growth update, of this our scale, at the as model. inherent strength responsible well leverage economics

and health members the and we Iora. One core to members cost Iora members, more Iora, service eligibles. costs same share serve briefly their pending generate Before engage are model differentiated with with health their clients of consider our on make to care. close, strengths lower attractive. and will We more Health acquisition few outcomes, with enterprise our and the continue we more able about doubling technology at strength to Medicare a these ability This total savings and human let and Medical. will our Network down with particularly excited to healthcare be offering on our payers, centered even we lower of further derive membership better enabled can which me improve In enable of profitable thoughts combination the And for growth, a our time working partners, while

XX in both delights creating that care virtually a person expand will We nation another in also a of care, each XX markets. the number and yet to across the markets person through growing brand markets, of primary our national taking members in of from model exceptional in step

the us support in including growth, revenue our this with believe well when as financial guidance also with strong another expect the our opportunities QX. today to These and of In revenue closes, on Iora shareholders adjusted our highest reported particularly coupled increase margin great of closing, the acquisition key we guide quarter note for year EBITDA in pleased in serving transaction on impact care growth value delivering a break provide opportunities, not are sustain adjusted can include currently to coupled results, will efforts the our in early. to that which track you attractive quarterly an that margin EBITDA financial Iora we provided of of we deliver one We updated profile. XXXX and an even our membership remain to in standalone stakeholders. Please provide guidance our strong and us advance happen are will pleased to with We deliver history. business, that we does as all great

Our costs. create us value through the proposition U.S. in us now health up markets, We provide questions. as to national impactful Iora for we while continue leverage us believe de continues our in outcomes tailwinds nearly the our the will Medicare and margins. position And care. to for to healthcare combined person results the long-term open quality at We believe strengths for population today. to with nationally enable grow to and XX% for exceptional high reducing serve Iora a revenue continue health your at market, further in helping members, model of acquisition that will resonate offering, strengths virtual XX we transform to And the scale, population the to time same you thank allowing call time and improve deliver care our we will also to us to together our and unique

Morgan Our Stanley. from of first Goldwasser Ricky the [Operator question Instructions] with comes line

more on service and there prospective on? prospective clients clients? Ricky. is particular are Could that us pin provide for focused from the thanks. employer most points season This or are are the lines pipeline, thanks. And selling Which with solutions you're on with hearing any an Connor update what you resonating Hey,

really, This in standout continues marketplace. the see is Thanks, And We're Amir. selling about the differentiated positive feeling Connor that model be to our very question. for we season. and the

care bundled person in and you care as woman we could outbound with care. digital also As testing. combined that can care with be population for for well person a inbound in And management know, membership model for vaccines primary chronic as health be well, disease health

to model our of combination be our finding strong. we're very So

of the saw in employers, the across of a sales we offerings. the types. earnings earnings of them in mentioned segments we the as quarter, in in accounts, As as industry have also last mentioned the our we and call, of we top different last quarter saw have sold XX in script importer selected XX% ray we And multiples

Now Solution. Behavioral could Health our that So Medical or our One include Mindset

be continuing an So that seeing we COVID that we're management, the very And health, really to solution, future. integrated find integrating digital employers disease vaccination, chronic services into powerful. continue anticipate

Bjorn, as kind guidance? about Especially of the some vaccination more Great, follow and us Medical you quarter, activity walk puts give takes testing second thanks. for around and flu QX. and assumptions And color thinking maybe fourth does what maybe a could through around maybe the half campaigns Thanks. up and some in and One have of

absolutely. you. Yes, Thank

thing just $X about sort to fees look, obviously valuable than our sort we're through is revenue line. either proud look partnership And revenue first to these in off QX And or in first was half, fees. our patient as XX% keep tend the the service be progression know, very the you of QX. mind performance of the less net of membership in that generated So when million we of of our guidance at of here, quarter-over-quarter for just the coming high end

COVID I then volumes, QX pent quarters, annual So, still clearly at chronic tailwinds you services such testing had lot physicals, care of sort in talked including of only, the sort the services, past, deferred when of things. when look those of up including the for look a we health care demand high that at the about certainly and volumes as

said did. we QX, and we into to were that those expecting they abate tailwinds Going

place. we QX baked re-emerge think I And sort to some of had certainly, but forward certainly assumed of is for is, revenue of just well the with return more testing sort on not guidance, booster of as our COVID no early whether QX tailwinds sort not. as modest in and just did what's - for well. to for abate. demand QX, And much the demand pent baked of the sort thankfully, don't a amount into side, into in as Also bake causing we they for example. into shot particular these patterns what normal deferred question bake guidance, or look into care both shelter vaccines largely to outperform any now we And as Looking is slower we back, anticipated a third do abated little they than up us of as

about more of see relative Delta a So really, many ended we normal year. remainder valiant, it's to or the extra if think here QX, and could return And what of QX to the patterns. the you. in ways we two That extent that, be differences have that the stuff quarter one to before things

you. Thank

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

about employers on first around then diabetes, bigger be enterprises with of Thanks conditions, just very et leverage leverage. is be quarter would much talked Amir care Congratulations was want guidance. afternoon, the of talked question about programs that to opportunity you that forward a of these? question? Bjorn. much. review, there's cetera. care and and think And you. talked my an some the How about I and Amir go to from and work coming EBITDA quarter, different peer Do the pay some in the and cholesterol, Great. and start you you with capitation would the perhaps you Good the Bjorn, level chronic for on virtual which margin, great

second start to open on built the when here. of on the to at first the to offices Yes, on of I here. full care Amir and we've your the do bit six the sort the is part, look we offices, we going first the if can the new we the Certainly, side absolutely. that thing EBITDA question of add out margin, does I'll that the point as we leverage offices Pareto as then first you'll look offices. QX at this little into XX outperformance a also exclude our flow the, here, Yes, for think and revenue the remainder to moderate both new XX we here margin And in side open to the months And XX flow, of well. we said rest I through model. The the in year. for P&L on to you I line continue think key If year, see we're tend year. what note the as recall, the opened new about expect a just does

of So six we higher the the in new proportion months. plan the have XX together do with in that second offices year, a markets next entering definitely we on

if When take So little approximately here a our that whether doesn't to step virtual. question the like operations impact offices. our specifically an your will moderate of on virtually certainly date, for for in much to have on But we certainly, being It that bit. today. services, same being you're a services back, are performed like reimbursed or person in

the with assets our look, driver performance. in and which even that interactions say, big you a these QX just been to also more place near not you member our our in can certainly. us it's calls efficient will not the of help in safety a becoming providers, or efficient more yourself, get that's term, long-term, from But a where the certainly in think could I but take

your earnings Lisa, points the other and patients as double showed virtual really us delivers from second diabetes, that which any reduced reduction in about that only JMIR today maybe here And part employers Today question, to we we in AXC reduction. a model uncontrolled that save seen took capitation? noted talked them the and on study Well, take solution. call, hemoglobin two-point in we work was released take the we of impacts. control proof our have we was that could about even with money programs to outsized plenty help of to certainly And this

I those the of in room in that's costs, certainly on And frankly, costs. on actually delighted think XX% reduction costs, in year from proof the JAMA XX% point kind outcomes of reduce can study Journal shows reduction the last XX% care. costs. a And the those specialty where and a a powerful XX% reduction we that XX% that prescription in Medical American quality impact we that and cited specialist healthcare to reduction costs of showed we What Open showed we'd reduction costs, So Association, study of be savings emergency the about in was costs. share Network surgical

absolutely impacts confident global some are models is employer there. Many or or we very employers organized about and market capitated we're and Most the So model. not feel with a HSA or the high of pleased in is capitated under PPO deductibles combination. make

fit So structure we save we we've kind of membership money. created and level, into a can insurance the their existing power at of model. show our can model that And is some

we're taking power is the employer medical kind do of get terms high model. anything doesn't some to to in existing in But be a in really of an argue within outcomes and of could programs. able complex model fixed terms save our money membership to the their have capitation to contracting, payment engagement, You there great really of get insurance

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

guys. if the that give changes and But been pre-close of far? or planning, sort I was for on And still hasn't you I know, wondering Thanks quarter. so me the - transaction question. much you've together yet. so the most could Hi, congrats I what sort have at areas spent you're your excited even more of about as wondering biggest was time closed

for Well, Elizabeth the you, great. Thank question.

a very in and purpose Iora to had care. to DNA, healthcare of care delivering Health experience a two One you powered technology technology, really our on be great companies bring think with Medical And salaried life. value-based we here is built I to and model focus and similar centered an provider, S-X this platforms mentioned in able of together on focus exciting stage across human really is what as every primary for member opportunity two transform

to excite deliver and And, to care to that us changed to our And pediatrics described technology golden the the from And that of S-form. S-X gives to range think in XX% and health And certainly dependents believe us an XX of from as markets people enthusiasm has whole national add in care across nothing described we continues be able Also, is what create close this member outcomes talked potentially organization. United a we better into do just really will of grandparents this be them. us. we about, children, us in the opportunity, to in with in premier a shown, States. can has each we've the very reaching today, allows we directions, adults adults, costs. powerful. we to So lower family as serve powered years, to better based primary we able serve our the mentioned Together, in be all remarks really as and

So we powerful. very find that

us across we that us excite organization. And premier and So that enterprise. brand think really be positions healthcare the to a to national continues

things on That's change of helpful. and that care? view your that. the and care chronic And just of does in get areas Are should on seniors whether involved focus as to like you of through and any sort any think sort that there specialty more areas,

and to stratify talked to extremely partnerships. both about models have these care continuum. populations. primary to testing, be us to digital of of allows really we've But and avoid able the care information, duplicate we've data coordinate leveraged have and sharing I clinical also and really machine very coordination relationships develop streamline learning other And these is share the And specialists, things in to well we've think developed of network been communications, that interfaces the Well, with of approaches done to tight to share that across our risk that health centered. one

we kind into complex and strongly more So coordinated we us ageing positions advance move feel this to as of populations. highly really care,

coordination building I we think, we've So really, shine what built of with network I that managing capabilities care. is in better think where coordinated care specialty partnerships, health on our

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

And Bjorn, the questions. it And for put year. guess Good might the anywhere in relates taking guidance these for driven together opportunity guess, evening, positive I modestly take such of I the back for question one an business year? I Do have of talking coming the that kind to days? one have is, Bjorn, now thanks you quarters not half Amir. have things up given positive on you guidance My primary all how EBITDA, the adjusted the I as the it of about and the relates it everybody's about fit to you as consecutively just about out see or Or like Amir, care COVID, adjusted seems been behavioral EBITDA not guys. it four fit feel is now? model as would does - the growth a it how is behavioral the for to guess what opportunity? that right negative just assumptions you've that it

George. you, Thank

are expansion about moderate into earlier our Bjorn expectation heard really to about a and One, the driven peer the the going additional and our margin sort office me talked Yes, EBITDA. the by couple different the there you parts a things, footprint, et half is bit in that second of question little investments cetera. here. Q&A actually of in in So

thing build on continuing our G&A brand other mention the whether continue just is line, presence, members and growth our and would to marketing that build working health on really will the service invest partners, our whether sales to continuing customers providers. that network the that at enterprise our I in is, offering is The our line also here for to that technology

invest So yes, grow to also in we we that responsible that means make want our sure continue way. it we in continue And a operations. to really to

in little second a that's if Amir what want going other you little bit you're talk So to half. question. see a And the about of to bit the

things care One behavioral, I'd it different integrate Yes, truly of not as coordinate the do Yes. and think about in we powerful one about Thanks, and George. say is of pieces. Medical terms just

Well, mammogram do or need test. also So for example, may and smear or help need an behavioral pap IUD a coordinating have issues, a some health insertion, can a that. of may we all COVID vaccine a diabetes issues, patients

of including And Solutions of in powerfully quarters, XX% behavioral certainly it's in with team had mindset multiple them a But we as program our our the Behavioral the prepared members. offerings So that largest sales delivers our I XX mentioned remarks, model had primary care primary salary-based prior health to top the health. Health It's care. providers. our mindset behavioral coordinating members in into integrated

we to primary powerful into to because integrated that will particularly to something continue resonate continue So it's see powerful, care. that as but be continue will

integrated diabetes get or in diabetes outsized case can double as Just the care. chronic product and are we model longitudinal with performance as performance the solution, we when a published care primary saw things

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

you. care it Thank is look direction. If a it to guidance slightly at more EBITDA at one you. Good maybe shot everyone. guidance, we half Bjorn, underlying for the does year, if question afternoon, that coming of the for underlying for I embed different were that take from margin seeing back margin? your just at want the care you step still you back. you rate? organic to some preopening And in your directional decompartmentalize planned Are the that from your burden centers of improvement have this

that Yes. thank I as extent, we're but some deliver attractive. national of in me soon in investing on that into Yes, with how technology, it to brand, be to even to making you those. for about investing whether keep our heard And and a care to you earlier also mean, able certainly Because at is building that. side, whether need in XX to do more it truly looking really markets. reach, we production what person virtual brand the do is certainly, this talking investing in decouple sort today to is

just ecosystem pediatric for around We So we'll past about talked that. Medical also offerings. the to Kids, about talked One build our continue to of additional service to, services an build that. behavioral in We health. We'll continue

think So, interconnected that things special, of building. that of that one when about makes One are is we that it's the what products I sort ecosystem of Medical

services back the additional et allow going are to continue to charge the reinvest over are on in cetera, fees like of putting investments that the forward. the half some effective, we've the the looking in to make side. business that we you're sure us continues behavioral and here. that those into do membership the to to And membership years of more Some make couple itself some for shown second business to the particularly Frankly, the drive growth last additional

is question comments to Okay, related on the My great. that's just second leverage.

of would get like looks $XXX it is we kind the run level contribution EBITDA that low something need to that think Is you should single into rate So digit about million the level. about you're going going we 'XX from a both a some out the revenue perspective? 'XX, even look and as forward? incremental and into scales membership business into as to And margins see

would a a numbers bit are about the that to ramp do EBITDA, Form to we thinking provided do growth as we of how here. if that obviously And focus we we as some little purely I Because of of sort is ahead. again, we more ourselves financial part think there well so will our sense you on Yes, disfavor. ultimately to think lot gives a S-X also of

even heard market, our just we say You X% past share. us in the that, are largest market about

many sort improve Because, sort to and profile. demotion of health new will are in addition Iora, on continue we'll here invest more they say, that that additional beginning side then more have growth. the time us well an outcomes. the the And sign other managed have So, would where not you members the just the and up, drag their you'll near obviously, really term as of come with the members to we on into of over dynamic thing Medicare the I is

you another here. that's about forward So dynamic to going want think might that

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

of they still question demonstration be maybe do the helpful. But Great, any I it just record of actually with the - Does on cohorts know and talked we details have that can would this bit or care thanks. that a Any a cohorts in lot. last Bjorn, you a mean, just on that But whatnot. Congratulations margin? about I on we guys. do hit for EBITDA, this Iora, losses comment. having track on Iora terms you care confident the feel or margin the provide get positive older quarter. you or new June, little in adjusted on you

the And Richard. you, answer Thank yes. is short

the medical imagine, where in XX think we've that percentage you As over Form our improvement diligence. gave then ratio at expense and can we And also five announcement I part example for there, really show, into of in years. both the as we point S-X some you the data points dug

next year So had if up claims about to they XX%. ratio you look in they they the years, at in, use the that XXX% four that for cohort XXXX, they that first in example, over member signed came expense one the medical

So four over years. that's the point XX improvement, increase should say percentage I or

corresponding the you've the high. at And here, XXXX in the look become medical health they cohort, you with see The start claims XXXX dynamic off managed expense decrease same ratio. as improves, very got as a they cohort. where their a better you If similar then

in, that. One we about So layer do obviously time. Medical that, top been of on has then feel do by their And do able over to what then quite itself to thankfully, positive you ability

in is talk heard than tends AXC the about for You deliver. me example, two to hemoglobin more point reduction today product diabetics, virtual for a which only

talk studies. You've cost about reviewed published heard the us peer be in XX% that savings

about heard the savings You've us some cost as other studies in well. of

Advantage health about So Medicare coaches, and all our to of impact when from you I ability add feel with our those various two companies, together the good that we very think that. members those positively flows

you helpful. Obviously, just about Okay, you your talk labor bit a Amir, just market And up And little decent challenges opening there of new a guys. could thoughts markets. with you're you're to the that's respect curious I for any was number that if wondering out very seeing?

we stakeholders. one is of talked think our Well, multiple often thanks, we of this serve model. how differentiated Yes, the We about Richard. advantages key

place believe want We but a and the position number of want team the we be consumer, payers. And done the here practice things a the employers serve course, to of to powerfully. to best to also delight the ecosystem, So be we've place want member and and best we across that ourselves member we integrate to medicine. healthcare

team as kind can And bundled of model we ever rather first We've just all, We've for salary digital based that providers based provides fee that care. short we've system reduce technology service we've in technology. person our try that We members. built fee that tasks seen. than have shown health encourages spent own we've about wraparound a part we our tasks. and less electronic So record compensation of service model, the health relationship visits, XX% than that with coverage for coverage which TUR of to transactional other

very to and continue positioned attract we're to to to place think staff becoming grow premier practice we medicine. the and differentially So continue to well

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

the taking quarter. And strong Iora the a wanted guys. congrats question, I Thanks back for to go on the bit. acquisition to for

by proxy You finer growing are that a in point know, on the Medical was of into to you could cetera? One Medical hoping XXXX. put being in revenue new you noted on how XXXX assumed synergies XX,XXX incremental members round One the members acquisition, Iora, between expect referred you incremental the in split XXXX I around the increased in aging those members et awareness, from

Yes, happy to.

renewing And keep And all a can you they consumer have provide here. opportunities take really, mind back will with where parents; grandparents. up members, and Iora. have more sign with is I That's right to have I'm show the they're brand now ambassadors to say. up. hoping members they what you those to we members with. going all it That's when talk thankfully have would about hoping what's at we than thing to to and sign a and think XX their different table when XXX,XXX happy that they the certainly be use parents as step and with members, what's or key we out to plan why the the that in we One we great of are Iora historically right XX that nine feel grandparents kitchen MPs those care that to up XXX,XXX really are up health for model couple a on say sign Medical point, your One, of we see is - that's doesn't somebody who they

them probably give currently on over X,XXX expansion is Medicare And seamless that's people aging suppose into into will In as about. that you XXXX on got One per the month number contracting that's Medicare you addition are to an member Medicare, The you model next half and about example, to keep million And of revenue. or Medical people cumulative under But XXXX age $XX we mentioned $XXX,XXX M&A to year, that some suppose or And, there. Medicare. annualized additional Direct think year average that, age take you've and under alone DC you members members per obviously got of to of fluctuates. just as the per Medical well. briefly. is in members, you members up you've That sort either into sign year, have agings revenue right into can to obviously bad assuming the of markets not a time aged where One you extent have that per that XXXX risk, plan

can obviously think So from relatively hanging add hypothetical shows that hopefully, you thankfully fruit. something the a is numbers that's low we how up it example, but quickly

it. Got

Okay, that's Delta the of commentary, like incorporated half right? at general all And back cadence you're into the check from to not wanted just helpful. the the And I your Bjorn, see variant. really sounds your and business changing on year? next view of that you've it your assumptions to due to year Delta this if Is for

Yes.

that that really we still is we guidance. given right, the see We that that of generally haven't changed think is that uncertainties our some there. So

any testing. next by necessarily patterns, be impacted QX COVID assume and a the through I demand place in that of seen in care demand a think amount do in we've fairness, - a to of six We for certainly have less return maybe past. we expect QX seeing to will months. is to for pent relatively reiterate, so sort shelter what deferred over of We any also up and assuming just moderate or sort are COVID the normal that what don't

as range. that there. about of optimal us end So the think I But ways some hopefully, as an are model just there we results gives there this. to usual, will of various within to again, ways guidance. not thinking get to different get get are And to us it's various And, guidance sort high are you guidance how the the that to

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

question quarter. the on congrats the taking for you thank Hi, and

has guidance, growth that year how on market? that in forecasting fourth one the this drivers fourth about just So, reacceleration? you're we the and mostly think is from membership the reacceleration And underlying or should coming the historically DTC quarter reported quarter channel enterprise

see side. enterprise strong on to and continue both demand we consumer the Yes,

at obviously all sort of while okay, any we effective you of them make to at year, look sort benefit you And time that purchasing end patterns, over sooner. gotten If lot companies up sort their are of we'll one a make they decisions to the now adjust of do can decision, during once oftentimes the quarterly we've one. hurdle, out say

So side that's QX on But, and - we the have you reasons enterprise QX on see enterprise signups, strong see reiterate, tends and demand, to demand to side. the sort just consumer particularly of continuing of why membership more both one the the side. strong

Thank you. That's helpful.

you starts, X are follow in those Gen DTC you'll or enterprise quarters be to then few in markets next this is you do for that able the membership in to So memberships a as year the channel come markets up, going sell primarily first post-launch? from XX anticipate year, growth new

to presence, Now country the digital of power enterprise might part them Now go One turn on we the in Medical Yes, just we and model only markets solution. us adding accounts, and allows have serve of to across of where maybe physical but our Medical One our where

the has of powerful. reason One part been is that Medical Now why that So

allows more more additional which employers, pulls markets. we go kind attract us we then the that markets of into, have larger the effect and larger network to nationally, that So we and sell this and us into

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

wanted if urgent broadening. But I've I hopping markets ask, are noticed Yes, this, you're question. service you've doing offerings York some calls. multiple taking one Apologize thanks my for your New answered that it services seems I San like like care some the been among really and to in Francisco.

could novel, just other weight health, talk the longer mindset there, the you've hoping loss term think mentioned, that think stuff the be was corporations expansion the to of system little Shift and nutrition you're a bit roll that's counseling. therapy. you the out maybe also group by And then of for the some broadly. kind that that health appears And I offering like opportunity partnerships I in more about I mental for if driven and Amir, program the got to you So

seeing that offerings broadened how the and been So the just few where Medical service had over success. about the a most Thanks. years little bit last you're One

leveraging we longitudinal when are it's the whether group managing care whether chronic urgent LGBTQ+ These the we but say really model, relationships. patients thanks, whether HIV. that as sticky. Yes, spoke Ryan. longitudinal to But model. come with do And care or describing, the can on have member array are our diabetes in we've relationships there, chronic to in longitudinal expertise the we us therapists performance management. and care model, it's care, we're outsize like Well, care, primary we we visits, issues well or I still can handle on health coaches model. primary health, things or are And been certainly demand, conditions But it's whether diseases we can nutrition, have and that in whether it's women an office primary a would behavioral of membership things that's

can whole so noted where much. health based a the we've services, as our of of multiple care. of in XX earnings the can that call And quarter, of them power have think offerings. and shows on we care offer So that you the person's largest we having Thanks shown we primary model XX% that sales manage our range

Our next of from comes question Hooker line with Donald the KeyBanc.

think afternoon. free I quick, Real Great, anything about you flow. mentioned cash didn't good

you're update than kind expected of terms adjusted see to any exciting in EBITDA flow? it's a cash getting at to maybe of But free positive Hello? So point. closer this

Sorry, Bjorn.

you're think on mute. I

Hello.

we hear Yes, can you.

Okay.

flow for better through cash Obviously, on well. to get a sorry, starting will us here. the as issues EBITDA So the the point flow technical performance

to our We offices. continue to in are going invest

cash as now pulled So drag well, cash would positive opening flow to being opening the I outperformance EBITDA the from ability will us flow continue up EBITDA the certainly sort see to you're new and But of certainly imagine. geographies, have offices. to forward wonder up for statement flow the going new additional through time

question next Larsen the David from man comes BTIG. Our with of

Is those about can MA little members? bit supplement the you potentials for a with little and Medicare get about products? commercial plans you. members talk MA particular? the more revenue into collect possible there for Is in-fill in some those way it to Hi, revenue potential talk Medicare to possible space you Iora might partnership or any Thank you hospitals? way a maybe those then in can revenue various And of bit members the for some from synergies

David. the employers direct commercial in are in models. risk thanks, call, Medicare world, in these really and about the seniors really contracting we Yes, of most different plans. talked think kind in PPO full on before these models, We the Whereas the as Advantage, are in

so models the are And different in there the industry.

in stage being to adults years range like models life, from ages a revenue we that every But way. Bjorn tremendous those across about to think as golden would as of revenue across here pediatrics and say. previously I is market described, of So there synergies the sell and able to and to

some contracting anticipate in look aging one grandparents, who who'd models. folks well. so those adults and at folks find can as model, may could may may can combined like into or models we them join as Bjorn way in that who Iora put today, or members we who have younger them family might described up sign do are having And there. And previously and folks Medicare models Advantage we have to direct age we We have in their are this Medicare into medical of and parents who have

being marketing as and significant. growth and So really see opportunities the we sales cross

One like just itself. think think. quarter. initial breakeven? I the for congratulations EBITDA when of your With see stock. view, a EBITDA that weighing on Thank color or about you Great, on on Medical or great, business would high would to I've Any thanks the mean, there's sort of on then the the be liked that thoughts always your things Iora good level very margin I the thoughts one you. around in bit is I Iora might And there. color obviously, earnings of be much. profile Any EBITDA one things lower

view the a on synergies. Yes. of extrapolations to and forecasts provided in We obviously get list there Form S-X projections,

probably operations. companies everything that Medical One is over haven't Maybe else. and I the is I So given are where on I'll taking just closed that think certainly have a yet two to we very last to several our you that point the focused back, what we step here think has shown years

a while responsible plus the percentage see XX% XX% And We focused see that combined sort of we balancing combined I compared the that. you'll stakeholders. us plus towards growth are as margin certainly of EBITDA EBITDA to very do on various standalone. our are to And continuing and what company, margin a think is sort of guiding you'll of

obviously is a percentage that higher much So number. dollar on

about we So to margin in is thankfully accretive EBITDA to of is way the think that it it our terms going be dollars.

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

questions Credit Jailendra around the in to proxy, I XXXX. million actually of primary some to there. Yes, Suisse. go revenue $XXX disclosures Singh of this want actually from S-X Two back synergies in is

those the of the First, data three, is call impact in referenced actually another three required to years, And looks next on synergies understand drive over was four some EBITDA looks which years. Are synergy number pretty If the million point us like additional synergy the investments members incremental XX,XXX four minimal negative. Just PMPM XXXX. Help - there revenue pretty XX,XXX member beyond members? $XXX this high. and by reconcile look anything at target? revenue to I that earlier, versus your PMPM trying XX,XXX count include next

that here. lot in a So, obviously

I mentioned that have what the think is you about in I I towards back program. Medicare would earlier you dynamics the point what

in different be of those up sign particularly to cetera. tend Their They well many not they those you new health chronic a managed. checks. members members, If unfortunately, conditions most member of not et are have care

synergies be costs where S-X, medical in healthier on, the obviously to year increasing where look I time over the that we sign sort members. effects down every mind members, early at up right little keep associated health to manage a Iora tend as believe costs. is higher here the But got as that health. talked Form thing costs already So relative And, total as then a you have with growth this those with thankfully to makes they and that synergies members can time, you those every members relatives year bit become this the were do that over They cohort shift together associated their think when overall you those result, their have in testament improves. in the S-X medical there you to by do the you ought them. the up Form And go to can And as sign you've of what that's new forward. again, with number we about an members see you decline really, here disclosed going the in which terms we of you in generate that of and

Okay.

in you your those any Since even or share in conversations health terms up. some too have of it partners feedback guys Iora announced health you with there? markets, health markets early? our potential your follow had from is synergies deal, Any one Just systems conversation guys you Iora you system or can even in generate can

power you mentioned, previously think I Yes, thank Jailendra. I - of as one the

is digital integration this and of One of model care. primary have power our specialty across and the done clinical we

that space is to So and bring partners collaborate absolutely is and with as something health that well. we our Advantage space Medicare Medicare can network

we're very So excited those opportunities. about

think of I model differentiator that's strong another in our care.

now Thank not back questions remarks. like turn the in call to showing you. I'm to Amir I further closing the any over queue. for will

forward for to questions the Well, and And a Thanks much, you great thank the everybody. and next we evening. much time. so you great interest seeing Thanks today. Have everyone. look discussion so

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

You wonderful may now disconnect. day. Everyone, have a