1life Healthcare (ONEM) 4 Nov 212021 Q3 Earnings call transcript

Good day, and thank you for standing by. Welcome to the One Medical Fiscal 2021 Third Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] And now I would like to hand the conference over to Ivy Tseng. you. Thank ahead. go Please

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

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

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

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

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

another welcome expanded Medical, we we results Raleigh-Durham, also you pleased grow. perform, that new continue backdrop, our today update with to innovate in from we share we you, Thank for was third on an and market, in us. joining our for North to everyone, One With the quarter exciting how launched you and Carolina. are for population Iora senior as and services further quarter QX and as

above has performance We of number and We human-centered members, providers continues with our XX,XXX employers for payers, in year-over-year. up up X, end continued our financial end to guidance a of the XX% in deliver strong technology-powered guidance the QX revenue the Similarly, coming million above partners. of at September, results $XXX high growing XX% updated and our outperformed members, from XXX,XXX million, also quarter and model year-over-year. our our as high ended updated $X from September

our recently publicly clinical ability showcasing results show to our continued We programs. innovate, from also to

York's as grew the HIV were one care for our in and further its in New medical in quarter. recognized North New the we suppression demonstrating load University's strong with this three growth one with through we second growing among For time program delighted organically health going our XXX% patients State has continuing Medical. in-market one years with medical example, performer partnership that viral live York and HIV. new Raleigh, continued Duke opening our Carolina, market with system Furthermore, We One new growth, offices, number including

national health One our digital Now behavioral health mindset services Medical and services.

through September on grew which We closed also Iora, the acquisition X. of

Our consistently soon the technology-powered well of geographies we markets in from to organization. at XXXX. end in XX create be January this premier vision we and health always human-centered been And we been before of went executing the we've vision are to public care has X markets. the number against Indeed, to expanded have XXXX

XXXX, We have months of XXXX to XX. XXX,XXX to members We've members XX, first the our as XXX,XXX stand-alone grown Medical $XX XXXX, the business our care years. two margin months million million from nine nine of of September One the in for for first membership for expanded from $XXX

a We Iora. our several And as prior expected to in year to breakeven EBITDA and adjusted at expected IPO addition for previously, time row. have the announced adjusted the of positive quarters than reach X delivered EBITDA we earlier of

health and services. all have screening, simultaneously global Moreover, XX/X navigating portfolio, pandemic, verification virtual our services, a and impact Together our service we adding vaccination members disease One including done vaccination offering this our to done product Kids testing, One Medical services have Healthy model. and services, medical One with with while one this supporting Medical We mindset while launching national chronic Medical pediatric COVID-XX for our of behavioral Now,

leveraging team members, multiple help schools. leveraging health technology model vision and the technology and against and our incredible open key to jobs our members, engaging Our execute consistently retaining and return outstanding services the with our core been we against able executing Furthermore, now lives, and needs their and reducing believe us operating addition total to to are to position dedicated cost care, simultaneously to and of members of We keep Iora, strength to outcomes stakeholders. care enrolling offices vision experiences, proprietary address in of this delighting continues medical the delivering stakeholders and goals. also advancing has and and providers virtual our flowing

applying further these of now addressable US markets XX% across expanding also billion seniors our in and care are and $XXX to at-risk for be positioning market geographically model, in reach the We operated. nearly to population total the we'll to ourselves competencies which markets

potential in addition of Advantage and clinical the of previously Furthermore, us models, extending further now also enterprise insurance into our will One members. of commercial we and as from and of enter are to can parents Medicare allow practices standard and operations, grandparents approaches, further technology, relationships consumer and enterprise, medical Medical plan. Iora they with other in one believe The and Iora to across legacy Medicare more legacy noted, Medical's business we've we successful enterprise performance market. system seamlessly in and As serve services Medicare which risk consumer leveraging the many the age execution enlarged risk expand grow Iora At been transition our into same creates we Medicare members members. addition opportunity and and time, including against have XXX,XXX leveraging to an the supporting markets Medicare lifetime One synergies,

system multiple stakeholders. differentiated technology our results one key to into from integrating are combined We platform deliver

using across One to Medical be We will brand business extend the opportunities. enlarged the growth

more care health and to managed in for are drive more team such environment care governmental for our better opportunities providers results and our better costs aligned to we've clients, little lower members we culture help for payers two combination. payers, health practice enterprise care. over are company efficient We coordinated effective our just advancing key and on been with integration and as combined in plans rewarding to vision medicine deliver for and to partners drive a stakeholders, all months, which for our health and and members, our though care a digital already Even clinical a building network

One have direct our create Medical launched select legacy which XXXX. Medicare recipients, expect at-risk contracting, us we to beginning for in efforts extend Advantage models We Medicare as to all in and incremental geographies including care such those to excellent revenue in

along, engaging already voluntarily geographies Medicare on their as contracting align Medicare provider as us to current in the their in confirmed so these with are us primary all medical have choosing provider they to far direct we example, believed members to that care For overwhelmingly what and we program. are who look

advantage In taking levels combined addition programs, including, working chronic to growing baseline. care management has our to compared and capabilities average also of app heboglobin/AXc risk on our member management which we reduction demonstrated enrollment, our in example, are modernized a X-point model, care for

As a attacks linked XX%, complications is to by reduction found by previous by reduction of reminder, that in X-point risk heart microvascular hemoglobin XX%. a death a AXc in and studies XX% have

members. management population proven Ira's upon to building more are health we serve approaches even at-risk capitation and Additionally,

transaction. our synergies, of performance, announced these to is Ira's Ira's or which the expectations overall pursue medical time revenue than expectations trends have at we line in as Even continue membership of performed the line with stand-alone for Moreover, pleased better with in be quarter. the cost stand-alone we and announcement

specifically QX performance. Turning overall more our to

million. adjusted than months. negative past or delivered with XX,XXX our We We revenue. quarter XXX,XXX QX $XXX the a QX up year-over-year. XX% margin million quarter. million more net added XX% over XX net XX% delivered ended total of of very and the pleased membership added members We base XXX,XXX QX was We in revenue, are $XX.X which growing delivered of QX with have care members, the members We $X We year-over-year. during EBITDA

As addition while grow the revenue this long our to to to Please as relative in to care year predictably a September the we of margin those of in quarter, QX quarter addition full year term. guidance from we result described, across adjusted membership mature X Also, we margin are with generate more guidance third-party greater medical increase revenue, as onward. Medicare all initial previously the are EBITDA ratios and adjusted next Iora, and we've of and that we pleased have decline as EBITDA. such as our expense our medium included collective and cohorts care and margins to lower of today expected of members, expect risk note cohorts margins, a metrics: the as only due Iora the performance, expected, it cohorts, care percent new care declined further higher our expect

to revenue Together, will and care reminder, EBITDA deliver us adjusted XX% As in EBITDA believe margins while we continued long-term. long membership a this enable rising strong growth the achieving are in margins and term. targeting we the plus

model proud and our innovative believe Through outcomes we performance, deliver we a our experience a costs lower core. care of and human-centered also health member can better we are drive better technology-powered coordinated in sits at and premier our with environment. While model, team our

Similarly, digitally. member consumer in for our person average, and continued greater we year, about X XX an enterprise our compelling XX interactions in-person and Xx facilitates in our digital their member, XX proprietary a to and and on for approximately members, and in ongoing last averaged had of including we providers base. reminder, This per Xx XXx even engagement, population salary times with along technology Health, senior deployment combination including to As innovation Iora platform person interactions digitally. and further supports to population performance clinical our X and

for our to peer-reviewed of reduction how For the published Network load pleased load HIV. on in care Care that published in showed patients One studies a achieving controlling were XX% suppression among patients, delivered our in peer-reviewed example, in HIV suppression as viral that study, ranked year department, outsized outcomes XXX% model leading QX, followed the which study These impacts Medical come HIV health a the an York Report viral heels a as New cost turn, Open Continuum with highlighted City's of care previously among we has JAMA in These noted, last HIV in importer. provider announcement of diabetes. QX highlight

grow. we to as As of membership QX, see continued to senior In strong we and channels. continued and as growth across a enterprise innovation, our result performance consumer also well our continue

brand from to Our our invest as we consumer marketing membership increased our and continue in benefiting campaigns. geographies, grow awareness continues advertising across to

with legal, consumer and relationships side goods, financial enterprise estate, the biotech industries services, we in new others. manufacturing, real QX, and organizations entertainment, across amongst began On

region Our Texas, of our growing we to open previously Raleigh-Durham, interest forward the and national launches and Dallas-Fort look see and geographic the Miami, new in-person health to Ohio, new North Milwaukee, Wisconsin, digital to including in-person markets. and This multi-market additional South Houston, our Columbus, differentiator markets, encompass reach we Florida region continue We employers a upcoming past soon with consumer as multi-market Worth, XX services of in in strong our as enterprise Similarly, members announced, mindset offerings now, larger medical our of solution. for doors geographies addition to for be increasing excited also locations competitive expand quarter, set our One examples, Together were health Medical and presence kids, number to a growing existing for Carolina to workplace including in services. look with to verification vaccination Healthy recent in return behavioral our program service on services Texas. continues

Turning our in one XXXX. off on is guidance Medical million. which to X, a we of business, for membership acquisition including at seniors mentioned, coming previously market, $X deliver select our by to models at-risk are as as by our beating medical September great our One to senior are of we Also, in our represented as through working launching in risk guidance believe beginning Iora legacy revenue largely markets high care start in at the our well end we of XX,XXX with

to and new both expanding network also our network We health partners. existing continue with health grow partnerships,

a only Medicare UnitedHealthcare, health Blue as multiplayer several the being rather of we our help plans, with a including now technology Blue thereby Cigna, other perform, In Additionally, our months performance, strong expanding and at-risk Advantage continue Centene, new of and a closing, of are contracting to XXX,XXX expecting us innovate members. geographies, pool plans reach past plans our we to Iora, our membership an across year XXX,XXX Cross Aetna, as potential several QX plan, to Iora now over outstanding result contracts variety Shield has With full with and members. Devoted, grow. than team delivered signed single

to Our million full be million to and $XXX year million adjusted EBITDA minus $XX to reach our minus to $XXX revenue million. annual between $XX

and our multimodal stakeholders as We our the and technology depth services of and continue geographic in platform, to members our market. us impacts to differentiate perform, breadth delivering all reach model

for enterprise team-based technology-powered model payers, and partners. we continue care and opportunities, offerings. delivers many innovate premier model, and and serving our to expanding team recently footprint, continue partners And growth a with consumers, growing our our embedding clients, and and service consumers our members across approach better We into execute to our highlighting chronic management how results care primary aligning member-based with payers more employers

to success transform we just much seen in to have care. mission we date, started believe we While getting health our are

reach expanding members and and population with our to We the addition are across every Iora excited of the to and to further serve innovate of ages life. of stage further serve grow perform, model senior Health, all expanding our

our As our presence. our will look to technology, beyond, appreciate we look updated your our service forward to our physical XXXX digital with and keeping progress on you offering, forward members, we engagement and programs and continue to us. care and invest in team our We

our let Toler. Bjorn Now me it CFO, turn to over

outlook. our which forward Thank you you, in business as update today's look XXXX update our to on momentum hello as providing an year our Amir, on and today call. everyone well I on quarter third full results, the to an continued highlight

our on also to brief of with And I acquisition time provide earnings going performance you on to disclosures our is efforts call our this and Iora, additional take share also some forward. will integration first update details extra our date. As I finally, the will financial a after

third impact finished quarter members, exceeding membership First, QX. results on end the year-over-year. of as the in keep turning total total financial growing such, by guidance count We with include And XX% and XXX,XXX members of mind the to of X. of members month Please Iora. XX,XXX closed one high our Iora that of XXX,XXX membership a acquisition September the our

guidance closing consumer the engage left growing These the year-over-year. with XX% September we great XX,XXX estimated predominantly predominantly have included X,XXX updated verification of as as exceeding the in XXX,XXX and with part issued membership end have a members, Please consumer for members we this enterprise now and XX,XXX X an and connection members up approximately who of with and Iora on for August our September. high and in acquisition includes offering. in signed count believe opportunity and incremental up they by enterprise XX,XXX Consumer members - the vaccine for Specifically, to we of were members as Enterprise service employer-mandated note, our quarter consumer the finished signed in of our and enterprise whom well purposes. members, guidance Iora with to

membership. the add-risk members, our ended Iora We the the in to Turning of connection ad with quarter the of list XX,XXX high acquisition. end guidance the issued with closing

is Medicare for one Addis for responsible example, Medicare or person an reminder, direct a medical for As that a managing whom through contracting. member member's is care Advantage health financially costs,

our in delivered and high million million million year-over-year revenue. to well Please X. the commercial of revenue as revenue net Medicare This above Medicare up the we and fee revenue, as of revenue in end that revenue Medicare of total, Medicare associated Agora in at-risk capitated $XXX.X exclusively note which our is on as in effective our members includes Moving guidance. revenue. includes well XX% $XXX.X other our acquisition with September million QX, result $X.X revenue on $XX.X for service In as

revenue Our driven part was I per the performance strong in shared well as strong Medicare as membership earlier, by Edris revenue. member higher-than-expected number

net continued number in XX% growth the continues $XX.X revenue year-over-year. commercial membership which reflects XX% include revenue, This strong and is membership part million part million, year-over-year fee-for-service or earlier. commercial I was was $X.X million $XX growth revenue partnership in membership driven revenue up and in or by up shared our revenue, Our revenue, higher-than-anticipated to which which

This year-over-year. orders Our third net total, strong for by $XX.X XX% partnership was also million continued result a of compared in to million same commercial the as fee quarter service $XX.X the the other growth of restrictions which of and primary was last implemented shelter-in-place consumption pandemic. revenue driven our normalization driven membership part and revenue growth COVID-XX performance our year period or was during up care and in by strong

our the for at reclassifications, up was than end guidance of time contribution million business any to of our end high stand-alone the revenue at One the in Iora prior at the closing closing. $X.X QX revenue the $X.X yoga the or the contributed of above guidance Medical business or Looking and total Iora of year-over-year. the $XXX.X high million Similarly, revenue $XX.X more performance XX% Iora to million for time the prior to our revenue million

our this financial providing on We will transition past forward break or to XXXX performance integrate time are Aura to of play going the and Iora reporting not we at the combined ease out this solely out Medical, revenue as our businesses. excluding

Moving at down financially to claims expenses by are expense a XX%. its of time P&L. our in Medical range care claims in a million. ratio of QX in responsible resulting $XX.X services, associated claims the health of both our transaction care expectations, medical approximately members, yoga medical expense This with the third-party line where closing. medical at for signing and ratio We recorded expense we was of received of with claims the at-risk

are which adidas date, health our As the for the shows membership that performance improving the care focuses outcomes to members. we claims longitudinal a of on with our result, pleased medical power relationship-based of

in in was operations continued increase addition as up combined $XX.X of our reflects cost investments XX% year-over-year. the growth of Our This well care million, as membership Iola. and the

cost $XX was care or of As care of net expense for medical our claims margin combined revenue, and our million a performance, QX result revenue. of XX%

members. combined managing have we quarters, drive strong the few efficiency been and able last health on to time, improving operations, over including and the delivery while of we of increasing assets, the forward over care to in ensuring utilization demonstrated Iora our our focus look leverage continued we our As

the the was six million following margin to revenue, Excluding offices to estimated quarter One margin prior we opened the this prepare and $XX.X reported the of to months. my five we reporting of quarter going our XXXX performance, that continue and do transition financial ever estimate we integrate last strong history solely please Iora, new Iora Medical impact of ease as or representing to of the considering quarter our over care and the highest enter our businesses. the new markets to our one Similar Care and past XX% providing excluding another next forward impact market net we care are detail during XX not combined in that comments, margin providing anticipate note new level

below care. of Moving cost

continued our revenue. $XX.X XXXX, million Our adjustments, remaining and includes operating sales Aura higher support increase beginning our or X, This technology non-GAAP marketing, a functions the XX% year-over-year year-over-year. expenses, in September to QX compares investments and excluding results XX% and were of in and reflects

or result QX our our million compared revenue one revenue QX $X.X expense negative of total As net net X% $X adjusted revenue EBITDA a positive million to of negative year performance, and of or was ago. X%

sheet. balance our to Turning

end we of marketable had short-term of cash total the in securities. $XXX As QX, and million

Our of reduction marketable related to total securities short-term to cash and was needs cash Iora. result predominantly compared QX in the of acquisition the

Let now to us turn guidance.

to reflect full XXX,XXX, XXXX membership the to growing with in to marketplace. year, XXX,XXX proposition continues enterprise XX,XXX includes expect This at-risk and and membership value which total the a count and finish XXX,XXX approximately XXX,XXX range members. consumer strong members of For our XX,XXX we to the guidance in to

excluding to to million million, $XXX million. Iora, million expect million $XXX net and $XXX also of revenue, of including revenue revenue one of to million medical deliver to annual $XXX $XXX $XXX approximately We AR

not this we our revenue out past breakout will to we reminder, ease reporting excluding of XXXX time Iora going the this the financial As solely take a as guidance transition performance businesses. One forward and revenue Medical to of integrate are at or combined providing our our Iora

negative to we we to when our our of revenue, with on X, adjusted close, closed and teams all on integration demonstrating - tailwinds to care guidance, increase we adjusted million. expect since and have let to care metrics, and Ayoba. compared negative then to execution $XXX $XX strong a The our few are for approximately $XXX efforts transaction margin thoughts We million pleased of We worked of me our generate annual September million execute total, to In share continuing guidance prior $XX the EBITDA tirelessly EBITDA integration approximately Before margin ongoing and XXXX. million plans. also our refine expect and remainder briefly of membership,

As growth, And our their core costs, membership we down ability the their health strengths on consider lower members, programs. of Iora engage strengths remain noted and previously, profitable Medical. we very excited eligibles to care One improve about we with in and Medicare drive with health doubling at-risk these

We have just a our already our two in organizations made map progress technology name having road meaningful teams, consolidated leadership together, bringing strategy, and real to estate few.

time, Additionally, further both medical the we will organizations will one our of the geographies, over we to advise all senior out brand under medical combine and across population. model roll one

revenue continued leverage. to transaction Iora's believe membership attractive value results, support EBITDA and cost growth, all another about In medical standalone delivering deliver remain us performance. deliver continue in are care quarter expense SG&A XXXX financial positive coupled claims with and and will Medical margin These that even opportunities, with We financial of an accretion strong great our pleased greater will One a and we our to including We revenue adjusted incrementally feel provide XXXX even opportunities and this to management, strong more impact with growth to for profile. track coupled stakeholders. key closing, on

care. markets nationally and of now every person nearly in combined the offering, announced call and for and of Iora, today, up we our helping XX thank serve XX% US life stage we'll for national existing us a With time your across create high-value exceptional of you virtual the can the in We and population addition high-quality questions... our now through for model open

from will begin Your Gill JPMorgan. line Lisa We session. now with first Instructions] is the question of [Operator question-and-answer the

is open. line Your

the disappointed to all together. Good is you're this one we're going afternoon. only and you but And that going two for put time entities the detail, to appreciate the I I'm this Bjorn, the thank detail. get

about especially about and you As Medical as as as vaccination? see to to vaccine And administration. impact talk the testing to do as think that, One And have you the about peds. variant Can you vaccine quarter we about was traditional we vaccine opportunity as the well verification business, now the about delta for the boosters. opportunity, the you I do well think think then in secondly one and talked practices pediatric what testing that aging around population able be for Iora and an and

just in see what saw for So verification helpful. starting if us the you think we can then there that in testing, quarter? you same well quarter And fourth how we your would with vaccines, what help be about as

Yeah, you, Lisa. absolutely. Thank

making tailwind, think We've and I revenue which at certainly side So look with part the the outperformance of side sure on consumer the you business, conditions But frankly it of certainly trending XXXX they in and better, that what the I see is just the a whether we of get tailwind of certainly, this, in as you cover care little side. proud it on you the much frankly comes to really on with when obviously, think that's a describe sort probably I of from than industry. actually consumer COVID think are impacts demand of I was the you we is enterprise would cohorts, the on appropriate saw what that of bit the actually modest from whether senior too, our result, see variety really, of they in we right? in had bit frankly, that for ins pent-up members are see across there as said right, our example. when the past cohort, and better vaccination we actually not balance, that last of care. as the the is for outs, big side, and chronic you necessarily little efforts the direct a oftentimes can all drove prior, certainly the a noise of particularly and on revenue are revenue, the health the are line relationship business, despite they that And of between the that's just unmanaged manage We coming testing efforts core part get testing, relative revenue out us. that partnerships our joined at XXXX state that know, i.e., a coat a enterprise them health And year recently network quarter, that oftentimes, things the partners on look and the most COVID. where a that given And

known of that goes that that, show of to pretty to model. I So we'll power think, and taste really are medical proud one power that. the the are the It for, show of and both, goes the and continue show to longitudinal execution the we

just a as And to that. follow-up

think of we As years? line data and think by cohorts is, around forward, profitable? good year, the members time think the to give whatever profitable? is where secondly, about become a Is how number And when to line you it time have we those about a going cohorts, quarter. we here it those those on will break X Will of cohorts? where then members about come data down Just as to they're we those the year so give you online in some us you'll one do congratulations about how and think

probably the shared obviously way this, is we some our about SX. as of right continue We part that we this the cohort of annually share And now Yeah, think to data absolutely. as about part XX-K.

you. Thank

Hettenbach Your next Craig with Morgan from question Stanley. is

Your open. line is

PMPM kind from you And conversion about fee-for-service year you a on think color for thank and risk? about at Ricky. what do How of It's Iora more XXXX up. step You the any in provide subsequent about next of years? Yes, on the in kind perspective? a Could you. talked from cadence the Craig

the members. Yes. back. But about adidas maybe March, just that Thanks. of all lot of a step There's end you At in take had XX,XXX obviously sort a question.

so our As a Over months. as are XX,XXX a fact alignment company XX, the And And really those XXXX style bit really which six throughout will by of are side, certainly de of outperformed MA to this obviously a about them. of members. Medicare cost. there really year. mostly us with a tailwind will they They by revenue. expect that sort those direct when certainly, growth on you on sort we've that just we to is you the the again goes and that of side to today, sort of sort with driven take us revenue in contacting or this think the year, and of are care contracting. I Obviously, voluntary the And strength extent to have coming in that. frankly, has alignment to the continued Advantage PMPM site got of really we members, terms a the Obviously, both relationships, step-up But members. look our that next voluntary provide of is the to on side. building of step-up providers higher us a hang Certainly, into think testament little I about think that fully curate

it? out And And it. Got next membership the strength into think above the the about in would year? the of seeing end. you how momentum some there there sustainability helped then you're comfortably high the go there as that just perhaps you in call of you particular as do Is anything a follow-up,

up for market, markets think points, additional the through one the very more retention. continues putting the known multiple and multiple whether in enterprise today our retention clients mindset, the proof whether brought we show whole accounts percent our one we've medical, employees model serving brought it's kept more about rate, loving about We Medical. talked our We've been loving in the to on One our Well, industries. family the for high up we're Yes. one people it's prepared of this serving additional XX-plus experience. past we power in putting kids, talked points that on our medical remarks proof across medical in whether the with we've an it's We've and

cost Now reduction. and talked performance today HIV this last we about to We pointed we on the approximately again diabetes talked study year, managing Xx studies other XX% We peer-reviewed that showing JAMA chronic that management call. like cases on year, study managing and complex the the results. the showing disease published our various and that mentioned earlier about

reduce help this populations, payers are sustainable. the can think not delight So do can the but and across shown think, across help very And members consumer and live only lives, we've we and they I that but yes, we them. them proof population. And can think points, strong costs, we employers healthier enterprise I also are I and these retain senior

a signal. believe this good So yes, really is we

Appreciate the color. Thanks.

Your next question Singh Credit is Jailendra from the with line of Suisse.

Your line is open.

Thank you. Thanks for taking my questions.

quick a clarification, Bjorn. First,

Iora you right? between separately, you but that will mentioned You commercial breakdown revenue, Medicare and report report will revenue not the still

correct. That's

Okay. All right.

of Can forma give MLR puts it that's of what like compare color trends into are around for around we one for I can And trends with think cost on Iora, non-COVID the the historical line is question to know Medicare month some And with pro takes were? and So my if IRR? as you of expectations. you quarter can utilization share XX%. for your you you guidance? whole what trends. your anything only And us there, was in cost, us and how seems utilization COVID QX built expecting for about the

Yeah.

Let then here me the the that start is in little Really, XX%, as earlier. feel and back a it far of we you well. when other goes XXXX It's mentioned lot that about driven the I what there by rapid side. to jump a had to growth on bit think so in really Amir free

And tend we the MLRs really seeing. sort what certainly not not that's health conditions always can shine to over that's we've to conditions As managed. higher as be they tend comes run documented. in, said, to time. where because health care sort our new are of The tend model be And of of their member at

ratios are higher they're who expense folks claims in we've frankly that this running the coming at year, certainly what typically unmanaged than So are seen. medical

of we once are them, the up perform manage at that some you really, when But that that's coming look the here of values growth in actually bit they a cohorts once as the seeing. we how ways, as some some are catch in think we pleased earlier, many of COVID see chance little part our of is are the And have with I Iola, performance. that result I result strong here. of this also deferred the really, you mentioned one a challenges a where quite and to care medical as the of and on

relative of COVID. rest the question to the On

I the baked think full geographies, in we've our on guidance. a nation increase seen of baked side couple That's in certainly all year at-risk that COVID into certainly also and into cases, the just overall. like XX%

the Okay. experiencing pressure labor related highlighting and been companies have And issue higher costs. shortage health and care another and is several

offsets are you Just seeing side on both some wondering the if on? your you And focused can share medical business, are and are what of side? you guys in Iora one what

Obviously, X a Well, growing combined ago we add X medical XX are members. from to with we're of of a we overall, to were where stand-alone, Yes. ton grow and continuing team years Iora. markets, couple

So we're attract we helps about And adding team there. employers place of feel differential also members. to the of is And we it's retain member. members. team the and we've very We a a part And and the best well believe that but lot members a that's to team be that in to think stakeholders. have here past, model address be multiple as of we payers, talked and certainly approach our and positioned simultaneously consumers needs

So desktop our own technology. tasks. medicine for those example, the We we try with built-for-purpose reduced of burdens to reduce

providers. directly tasks We serves off a medical virtual have but only can take members team the of that not

team, feeling recruit overall, we're about So, and ability very the our retain. to good

terms forecast I projections. in puts of all feel think be another, of and labor one the recruitments and we're some else in to everything and takes and be attractive area kind costs our while overall, employer, a or there our all into continuing we very of built think we is might into

congrats quarter. and Thanks, a good on Great.

the Your Jefferies. from Stephanie is with Wissink of question next line

Your is open. line

on Medical Neamonitis those Chris question, great I'm about side color an are on the expansion. us like of really that you any and for conversations the clients the for congrats pretty One sounds house. with alongside on really Iora, are additional expanded guys the on good menu market quarter. how a of a Steph. traction having evolving? Thanks It enterprise give It's offerings Can you thinking potential

teams go better few the anything levels of to I how And your sales about you So that, versus if in industries. way a to activity market on trending expectations? prior and talked might, prior year different I change And does those conversations then that resonate. are know in top

customer terms So size? I'm in wondering, are you seeing any of changes

importers. more Thanks, We're see Yes, more Chris. overall, with we're and now uptake to Yes. in continuing great of range markets. a

on One a us. our importers where in interested have in multi-market yet presence. with And physical services, more we Medical, So we even turn now can services markets our are even don't

certainly So those positive. are

As health might a multiple are our us using mentioned mindset, proportion September, for that our in we of services. include Together call on about We one our services, big accounts last talked top our services. behavioral and Healthy medical

more just to poor they're reasons of So more kind us. for and work with

for their thinking vaccine verifying thinking is I employers, about well-being about employees many health think vaccination. mind. clearly, on and their They're They're of the and testing.

that having are do. employee partner thinking what kids the with And been incredibly has and their to people valuable. the Now about with and importer

to that. see we continue So

also I intriguing. is Iora think with the combination

XXX,XXX help out parents interested, of grandparents be we side, something be and should employees. eligible before, the on those and programs have health enterprise their in be say, grandparents joining we mentioned and or As of reach now consumer Many that to employers have who might members. of might the to parents senior folks interest our to I

side, So more tailwinds continued of on just consumer frankly, on points see kind we importer and but the the also, side. proof

well. So seeing strong we're growth there as

just clarification. of That's great. And quick then a point

You Or that among wins? mentioned new inclusive services. among client of that upsells is Is just kind of multiple uptake clients? existing on

certainly also with on also are this Good seeing Yes. clients, certainly existing with new but clarification. sure. existing for ones, We

Awesome. again. Thanks,

question Evercore. Elizabeth next is from with Your Anderson

reported MLR. in Eduardo XX% at to [ph] on is for MLR if XX% in Elizabeth. or mean, you an This And could QX. the MLR circle just back was previously, I wondering XXXX I XX%

the members? all bifurcate this is about if to members traditional think step-up the just and the could related contracting primarily direct new how And you MA So we contracting X, and should direct that maybe MLR?

look new. is Advantage when we've that new related frankly, at again, the that this got on come meaningfully So the we've say higher as relative obviously probably the historical But think both the the as certainly, step-up well come in, on side, you even program as context. side, a the seen do members Medicare MLR, year, those right? still better in, than is contracting as new is data where the NCI, I at those meaningful would I to come where growth in to relatively direct members Yes. they

sort the really the really to them launch with them. reduce where So cost over and us comes better also this that assorted I of helps value then it time and and care create health play, manage total health love again, took in into people, for is, comes these

most meaningful So that in the part seen this the exos of function for the we've it's really year.

plus - say cohort be So their fair more is QX the XX% would MLR. contracting to in QX in not see in a where sort were these had that it that you a where new did MLR X those members just that members that remember in It they was April? started percentage increase of point were direct

throughout of us I these we as in the don't how earlier, look goes as joined we power look I the I that's year. said most these think years. of think and actually right? at at And XXXX who here. this think, actually sort show Yeah. look we And an of join members quotas, cohorts the between improvement our particularly year-over-year, to, know cohorts when who before, it's like us at And members of model helpful again which I that to

All right. you. Thank

is the line with Hill Deutsche question next Your George from of Bank.

open. line Your is

in the Good I of you. system what interested post me they with evening, opportunities what and partners conversations the close Iora your guys there? hear about Thank appreciate have taking you just the be health and see been like guys. very question. your to And provider talk transaction you I'd

opportunity. you, George. Thank is a Yeah. really Yeah, this exciting

can to way us the in look is very to I think consumer-driven, our for side, innovate. And things one ways are innovate and lines we their given health do multiple entire of side. certainly, be for it difficult enterprise with potentially we to forward. but great capitation the to at consumer a a that in partners risk do systems, quite our technology-powered system, this portion global on and it go commercial program, of senior partner the can health ER risk, in to similarly we health and great our tertiary may can we're here, their with way that And system in participate going that on and and edging a into how some And care take us they about service direct-to-employer attributable with we care, you with model for start they lives. them, as for risk coordinate think can

the have their are, providers. now those have network health we tighter can on integrated opportunities. where relationships think, delivery I us these Moreover, So really we side, care our for technology built models exciting clinically partners with with integrated

we So can shared care is coordinate or that even risk. tightly seniors, not whether there more for our

in a So partners. also for the model, great think this great members our is for differentiator we and our One Medical tremendous

and ahead with on we're exciting, partners. quite that's that So pushing front our

you. Thank

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

is Your line open.

the Congratulations of thanks. Bjorn, on curious was closing on transaction. number. I the the membership Yeah,

go the could that, and enterprise. you If commercial to back

originally XX,XXX that XX,XXX you included You on to said I it just that? And to think X over $XXX,XXX. of Was the September I details And you the go the that. in was then just Can clear all members. guidance? mentioned want be

for Thanks question. Yes. the

the NIMs September in So guidance. X certainly, included some those really of

months September. the of earlier on uptick As I across mentioned verification vaccination today, we saw and really an members August

everything XX,XXX. the September you I part members. if think is the of to think the was way business done. certainly that about really of And what way then by high guidance by to once the in the way XX,XXX an raising So these is another both beat August for didn't this September from about about And that XX,XXX I'm way or and are to many is of right? kind relative I obviously X,XXX, think The vaccine of underlying trends any The the kind is verification that include of set by guidance. thinking to it sort and ways, or normalize this this really the QX beat which we XX,XXX end we members, we in XX,XXX relative guidance, guidance of is about included

membership I year. of sort strength we so seeing the of goes that the this So far are that think to

And Okay. vaccine. the members? actually and they get up a are just trial period for they Or did sign

to you You I said have something bring how Or you the them in? that. opportunity rank about forgot

Yes.

members. many our of So phones. definitions membership, are ways, in their we They on these a now are need cell right? And

actually to app now an us. details. used They that's know with are their interacting We them. installed We with are

what levels familiar be will their that's going with to a and get where full-fledged members, all many of care We're with to use and be means needs. going to them open earlier think really in have in, we to last liabilities, So we're for really others ways, experience dose our as us longitudinal what model. verification offering are, to it opportunity member. services, we come which going one can year, expect membership with us the we now this on have showcase look, a now to what members, can which day-to-day we show vaccine similar others use them our an our the engage great to does COVID we really one I up have testing said, medical are the ability them they And And medical to difference. showcase access them opportunity did have health? for rise What to incremental our time their service over

membership convert those anything terms have rates of conversion or like how in guys along lines? of you Do in any terms full they

Yes.

So a it's those again, we seeing how so very are clear. say to So full are encouraged today. far. trends efforts to I They the members, by all certainly early very little of are And they going to we but bit are where want members they're that land, four right? be too engagement

you. Thank Okay.

with from Your the of Grosslight line next Citi. question Daniel is

open. is line Your

Street Hi. increasingly specialty a on competitive. space capitated We've getting with made big care Oak the investment taking VillageMD. seen become congrats acquisition. Thanks recent the and console Walgreens is question, for into the primary quarter. in the virtual

competitive. Medicare think be XXXX, As about will think you driven growth be Medicare to do you and that intend how by we Humana? landscape membership in head the stay members And we outside into of to competitive get XXXX, your as great it view would on

pediatrics, aging that for Thanks us across a differentiated things Yes, on and one Yeah. of serving medical very the are about at I question. adults seniors. number adults, and now medical think there's

first here been that's the delivering incredible - and is Scores. point Promoter experience at model XX Net an think scale. We've have known right? I we historically for performance a incredible

have digital model very person. that We a well is as as in

per One about So Medical, have At digital. XX touches member so in two person, we of per Health, at Iora remaining are year. similar. About the X are those or

member per of touches in-person. ratio XX year about per have to about digital a with X:X:X We

in touches at both high talked across very we about that's retention. Promoter very very as Net retention High-digital Medical. about different. We've S-X, XX-plus-percent past, models, about XX-plus-percent levels in levels, in high the Iora the Scores, One service XX we've So talked retention talked

can right? And age people life, the Medicare. we've opportunity this So about and been in in talked whole only have might these every are now range to we differentiated. we years serve quite for age across they And now not So into this we've serving stage of the past. people

can We should they One thousands contracting they at-risk voluntarily Medicare Medical, who now who choose look in to so, to whether bring legacy XX in plans. in or of whether are join Advantage relationships to seniors to choose aligning we do direct over have

every parents year, have in and grandparents. the reach and we into And have also aging then we'll markets. have the XX then those We

really populations. into highly and powered that level, technology showed about in service think a you has can they could XX high who very across markets nationally if So differentiated. has We very think people scale age is

giant huge direct contracting. of Of a there, Advantage, XX% million in in course, Medicare so Medicare let alone billion $XXX out seniors for now is people a TAM, XX market, us, or

will and So a we done preferred extremely people model our we of frankly, is people's believe be, choice. believe differentiated, will serve the wide that we've what model swath and is

outcomes a And If choose this medical demonstrated in-person and published you we're care, results. high you one choice, the very who this? had service? have you demonstrated Would ones approach, choose would digital

year. about into our very feel the positioning we new So great going

heading launched year? What's capitated revenue makes quarter that it. same around to management any and this care that of program? Medicare. the the available commercial vein differentiation, details you're program model a in the next revenue Got sense. And chronic for seeing new you And impact. and both from and maybe Any That is into adoption that that

Yes. Thank you.

our multiple And of model, our partner. our Medical of great is That impact we've mentioned We across both population in it's embedded, eligible, can we so And can model. our impact. base. our management So our now or hypertension mentioned and chronic model and outbound given part it our do, stress. a with all just conditions is by means our as is are stress can show out that's or that complex that management might available things. the the because of our chronic like really system is sometimes commercial available reaching chronic it's impact we're don't Everybody and or senior one consumer accounts. it's we need, a be technology those or program, Xx care It's a to and population, model, our means do one means care I membership guide And people that's or people. patients, these And requires part of impact built is PCP, past. this when health can things and extending navigation the this of anxiety diabetes to it model our ability sometimes might we it's diabetes network of embed titrating diabetes prediabetes membership, about risk-stratify It's and sometimes but a or for the HIV. can usually building anxiety or It our We health have in indeed we eligible embedded disease across And what One populations disease programs at-risk usually It that enterprise in chronic condition. powerful say, means our impact, powerful done these into a or should coach having to upon we primary to that And results including comorbidities, those in our management the is and and not part on medications. senior or manage that management. that the program outreach to hypertension. disease population. proactive combination a They care have programs. often,

Medical this and as So bringing is that getting together. exciting of leverage and we're One the by kind super Iora well

for Thanks color. the it. Got

of line the Wieland from with is Sean Piper question next Your Sandler.

open. is line Your

Thanks. Hi.

questions. quick like greater of These model all clarification just verification is Just two the of or to the be members, it to vaccine reasonable expect our rest level there in some numbers? churn them treat should that

Yes. Great question.

with are pointing into is this the XXXX think a as there heading churn out think about little I One is their and the of health, than others, certainly good our opportunity I great reasons members. day the now than said growth day we us out what days. am I partly it our to members. with lumpier is opportunity as earlier, in have all engage for them little doing we a of we for about is about right? really retention probably as and is to So Having of there rates, they this be more there to conversation said think are with sort other at a early And which that,

opportunity, So sure. there's of a certainly I think for but risk also it's of incremental great a bit little churn a

this a members? every And paying verification of pipeline going is vaccine quarter? Like a is become new there to

predict. land. at this the today obviously on It's point. in gave been fourth think we Nothing Yes. just earlier I quarter where to guidance we based the there vaccine specific that mean, hard has for verification will

forward. I bet would not that I'm on that much sure going too So

on Iora business? was should MLR the the the for Okay. target where second one And then an - we

Yes.

to know I that quite give again, guidance. XXXX don't ready we So are

know, you our guidance we year, As gave year full on XXXX in February. last call

I So to is going happily on tell. actually manage health. a them on again, I'm that think are their rack think as growth invested a we we is return a as early these we that's little where too from because to retain doing coming investments early to the great bit are those MLR. capital But be our get And members we we'd on

view us in MLR nature approach long-term, important for that's So to for our But here between yes, balance given it's many ways, near-term the the MLR. and more the outcomes the members of our of health these sort long-term growth and really in than the changing target.

Okay. Thank you very much.

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

line is open. Your

MLR for into if potentially or institutional is move if piece strategic where longer questions. in impacting pie around about referral have the their the Hey, would centers better same it I'll because one. In a area. it like you guy. it have costs huge the longer growth. cost Thanks that's term of into this which think and big able segment, care to locations can the either from relationships managing we you term. And number If have seems to just markets system if advantage big for taking you more seems Iora be a organization a partnerships one time, might rates, MLR that be business transitions model, is two, with stick And interest natural your health risk the the care, for physical get medical like downstream Iora you you the of of will, excellence or future and

regard? future you So can thoughts Iora a Thanks. of talk on in your that little about the bit

that. for Thanks Yeah.

I think a few things.

going blended as locations. likely one, have together I operations, think think, we will we forward, growing blended about

from One legacy city You in to Medical children moved and the suburb the we've adults seniors. As center have right? and

we'll and our figure have of capabilities, that all focused continuum blending you'll population. services the here opportunity a do we can they another. may But need. then or management So the and be the all we'll the person the a we'll have clinically to our for on And technology, population. and think are that programs and complexity one ones able migrate model pediatrics. have disease may of locations don't location see that be seniors chronic We'll is blending is we and this of on what need blending member where still of that then what continuum more of risk-stratify have one I have from to certain to capabilities, to of necessarily We able of out

whether we the risk, In is they closely want an with opportunities the and We care, care the cost and those because tighter absolutely, of have terms whether some or opportunity management handoffs to specialty already continuum, care on whether partner with of it's it's on our the take know technology clinical to that more them. coordinating partners, across this integration partners. post-discharge it's

Our systems speak each to other.

believe, tremendous this, for So and a us. is opportunity we differentiator

so much. Great. Thank you

with last is from question BTIG. David Your Larsen

line open. Your is

Congratulations on the quarter. Hi.

quick very MA and then like maybe turn get their pay expectations they pricing? your a one Medicare that. with for capitated in and from dollars coming we've What me. they about levels amounts the capitation, So talk your Can you like for XXXX, around XXXX? given around seen Iora, CMS are to the into Just one of respect the that around utilization piece plans, Iora expectations

Yes.

little is Medicare a this of But on health status an of members documenting year. your the is is the prior reimbursement in in there ways, rate obviously, that ways sort yes, bit many of that many So in mind the uptick. keep really, in based you're

of of certainly And couple a certainly continued per our them. think, sure what health members uplift over we'll that here average document the have for needs see in the see an the think making we I months here opportunity next time, yes, you focus over that on you'll we the is reimbursement yes, understand certainly I So rate member.

actually after recipient, a that having that This our take is our look for average a really the roster, something right? model you Medicare. they said Medicare average the works Now if pretty like is goes at back within sort of member So not though, members, well. this look as step a much that niche and recipients

keep something mind you that's over time. the about should PMPM So as you think goes where potential here in think that I

Okay.

So that's great.

result the XXXX. of in and you reimbursement delta XXXX no challenges. like in utilization might no there's lower So in might because There's lower foresee headwinds variant that COVID

not is I'm look that You're normal quite frankly. and things seeing and hearing that good, Is what that right?

these our decipher. say time it's covet, right? good feel about it's engagement we very members. Well, of to with with is hard our times in And interesting normally to what sort But about about times eco them to feel We over feel We over we year. that time. good documentation ability very the good see manage the and very conditions our our the care

to about are good where feel we year. So, the we relative

much. Okay, again. great. very Congrats, Thanks

for And Rubin Sir? call. closing the conference question-and-answer that Amir session remarks. for back to hand the I'll the concludes

Well, great. so Well, a forward great you next we your for seeing look everyone. to evening. Thank much, Have engagement. everybody. Thank Thanks, for thank and time. you support, you you

gentlemen, you this for today's joining. and Ladies concludes Thank conference great Have a call. night.