1life Healthcare (ONEM) 24 Feb 222021 Q4 Earnings call transcript

Good day, ladies and gentlemen, thank you for standing by. And welcome to One Medical Fourth Quarter 2021 Earnings Conference Call. At this time all participants are in a listen-only mode. After the speaker's presentation there will be a question-and-answer session. [Operator Instructions] I would now like to turn the conference over to your speaker host Ken Goff. ahead. go Please

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

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

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

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

Finally, incremental offer And These I'll in updates during the metrics we business. provide to provide turn that, we the Amir. not the call may one-time nature, insights may be with dynamics future. of may greater the to may into in and our call, details or over

for plan clinically by relationships. to offices care environment off facilitating stakeholders. operating exceptional digitally everyone, care systems One model. productivity key Thank model And and number position to to perform, for simultaneously improved technology, you, health and delighted children us. highly exciting more our outstanding ourselves from and fourth with built-for-purpose and Medical, and even which deliver at-risk health members to virtual levels integrating and coordinated be Ken. mission care innovate further employee health employers, And our better We continued health improved assisted future. risk-based to our we in with We senior for results care with for savings. to thank quarter The in-person environment transform more to as capped multiple growing support for and value-based we a the an in network joining even team partners We retention, to place of health our our and recruitment medical providers with grow on you, of more continued for and even extending seniors delivering care advancing year best and and even more hybrid hybrid innovate reach and our our extended work care all, the health adults

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positive review to differentiated technology-powered human-centered we simultaneously in continuing Now address and and let multiple me the stakeholders. are of key and more deliver how our impacts model to needs detail

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highly XX members. to our the satisfaction. and continued outcomes to year, member deliver. Net appreciate average for experience Scores continue that they Promoter care hear of We deliver we Turning we Last health to

to retention contract with including greater consumer or enterprise plus our continue XX% XX% retention. average XX% our XX% senior greater members, and value We with or annual annual retention, members at-risk plus member retention

averaged our levels, continued model members, support consumer high strong results. team, Our which XX enterprise per technology hybrid driving innovation, With along and engagement member we member approximately and interactions with dedicated member, for our senior than approximately year, we and times more digitally. population, Similarly, times our times averaged times per two in-person health interactions and last XX including approximately three in-person XX digitally. including nine our

in XXX,XXX calendar saw we In of year. the last the reaching terms year-over-year, members of increase at members end growth, XX% a

year; basis enterprise of consumer than growth of ago. and a and more year senior at-risk members, pro members, Our includes XX% XX,XXX XXX,XXX than on count compared over a growth XX% Iora member more to last forma

be suppression patients. showed first For continued base and past HIV once health ranked to York this viral Department members, we care. us This New load growing December, outstanding outcomes Health high-value delivering of for the City again among

XX% have recent services in a been in drive reduction Our one to markets. anxiety severe our from in mental of data health plan a shown health

the successfully at glucose what controlled senior align services, more commercial senior two into into better markets, and shown relationships patients been to legacy year. members health as published members of One enabling reductions health closing have levels senior Medical senior into at-risk at-risk study Since patients, aging last adults outcomes. at-risk expansion the in our publications, extending average and ability fall, health more able acquisition our experience With Medical diabetic we to diabetes One to have in peer-reviewed more twice For uncontrolled last programs. bring our further our showcasing health per moving from Iora we're a to we blood others achieved premier in

reduce to we've years. medical able expense Additionally, a been series members of and claims our we retain can then ratios over demonstrate that

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ratios XXX% when has claims our seen specifically, one show have XXXX due comparing XXXX from to to our XX% to prior has More decline. XXXX all of expense While see cohort to from declined first last cohort our impacts, XX-K. cohort to XXX% Medicare XX%, declined and ratio, has XXXX cohort newest prior declined which XXXX from cohort our medical prior our XX%, year claims our year COVID-related had you above expense ratio our initial XX%, Advantage to with claims population, continued medical to our medical and declined claims XX%, those overall one ratios expense year-over-year cohort for year expense year's cohort medical year XXXX from XX% can has in cohorts

address continue entertainment, approximately than consumer sectors of construction, In more many estate, employers education, real goods, we XXX employers, other members, we XXXX, Beyond in delighting services, X,XXX employers. the software, now insurance, as our and services financial biotech, to added needs professional We new reaching such employers. manufacturing, added sectors.

also more to of model the more attention hybrid employers. and larger gaining are our extended we've markets, and larger we As

For begin are of employees nationally of dependents example, the delighted nation's the we and out banks. rolling One largest one medical to to

more retention clients XX% over As maintained enterprise than now to year, previously value dependents. employer benefit of extend One last also noted contract of XX%. we Medical rate And an the

We care also employers vaccination to health, care, that health an specialty productivity continue care, outstanding behavioral with pediatrics, how employers retention in-person our model only that we to benefit and coordination support are family testing, value seeing Moreover, and services. whole hear money. they care can from verification are but services, and recruitment, combines employees, save digital not them of

Medical past We costs. published have Association, JAMA in Journal noted peer-reviewed on employer saved how health benefits American XX% of Open, an Network we the in their the a study

value-based XXXth avoidable the that XXth on quarter, measures care includes percentile plan, Additionally, we care at at proactive received percentile unnecessary visits this offering. health for primary imaging percentile medical ambulatory from in avoiding avoided such emergency avoiding hypertension pediatrics admissions for commercial performed past the achieved a admissions care. as at and such XXth their in for for XXth regional adults and in which data the We indicating top-tier accountable performance care-sensitive room back conditions, for things or diabetes at we by as providing pain the low percentile

providers transforming addition deliveries In for employers, health we're members care and also and our delighting to teams.

care, purpose-built elsewhere. delivering supports and model Our reducing longitudinal burdens primary premier providers experienced frustrations

tasks health estimate would we providers example, electronic experience major our fewer elsewhere XX% requires platform than For a technology system. that with record

of facilitates our members providers dedicated on and digital our modalities. health and model provider needs across salaried team focusing Our in-person care support the

as announce believe row. and in the and members With one can behalf in-person in care a digital coordinate we [ph]. of the prevalent or of are Hartford reach We presence employers care, providers. stake which partnership markets team serve have patients place Our deliver teams on we and that care, model share nation. Statista seniors to focus we us Accordingly, maximizing our model burnout. markets. across to of XXth across our partners, second continuing technology of best or value-based fee-for-service America's with settings, Accordingly, and engagement our lower-value Forbes believe payers less care Medical coordinating believe the and to soon new that One recognized our on delivering with our stands can whether pleased for care are Indeed, in in to health providers transactional they range volumes, longitudinal are to continue to incentives children, pleased HealthCare better adults in-person in greater entering the complexity primary retain approaches provider expand better are attract to the we just grow we virtually, and our Connecticut. we to with Today, whether best elsewhere, innovative and we and network and owning year health care they for allows market. health encourage contrast nation will a so the partnerships we and seek around our national which deliver And

also We be around We partners our of all believe are network working and these partnerships care. further will upon we members, population. a coordinate tremendously clinical and to for digital our care our grow senior health health alignment with number as differentiated building and impactful integration value-based

model, plan XXXX. of switch increase at-risk to payers retention continued be between health provider one also to growth their able of relationships may patients have our the might growing expanding XX health us to We partner markets us. health who maintain now plan and contract with relationship Adding with plans even from levels end senior as at in start which just in potential we partners longitudinal promote multiple positions their higher XXXX the eight our health plan different health by major

Looking with last acquisition. of from last these services brought continue volatilities increase due and to return normal volatility for Healthy back more service, COVID. believe One the driven served of kids enterprise and the we will more never X expense some markets has primary we factors, increase care lag ratios, to driven this in services, same from more senior Notwithstanding into better further clients. some behavioral to on the better of year, the things our in better and time, COVID-related Together members in members outages and us by with these in been XXXX, that than past Medical overhang year, verification at-risk assuming every Visits, still some uncertainties One years launched positioned in We health, from extended stage COVID-related our we life better we in the serve and the X,XXX Now At Remote staffing an our team by have Omicron, near-term care, lower X X,XXX by have care, an Mindset National vaccine and COVID for rates surge the further the approximately Medical including Iora virtual the like value environment. on beginning COVID to health services, better impacts revenue years, across testing growth expanded our the extended people XX%, in non-COVID-related over visit more a member medical

investments technology dedication like making are to and their to human-centered who care our team, and growth. for in never our continue positioning has We And strategic all. believe stronger. health smart technology-powered incredible our We'd team thank transforming our in our we been

hand me Thaler, Bjorn let through our over take Now it our CFO, numbers further. of to you some Bjorn? to

Thanks, hello everyone today's Amir. call. to on And us joining

significantly a business expanded strong better than As performing in year positive our initial better Amir we when a XXXX ago commercial goals, the than today discussed, than closed than our strong and EBITDA full or we fourth quarter guidance year, reached line more results. reported the we XXXX earlier and about One our the with with Medical closed into year in acquisition expected, meaningfully adjusted issued the pre-Iora our Throughout TAM initially entrance guidance of performed space, transaction. Iora, the year Medicare shared our continued

our Iora expense fourth first We to that acquisition our color On cash offering, quarter around and I'll you Xst. and on full for long-term the closed our XXXX. us remind full provide with year profitability that call, our we I sheet will metrics, this expanded and September position along balance create XXXX and and discuss well of are touch our the on drivers, guidance value. to care, walk the and position year approach confident model revenue will through quarter

now just the members, risk count XXXX to representing full XX% within impact total vaccination results. member members over At members our to our XX,XXX members first top third a quarter, Keep range. in at-risk direct their than financial And XXX,XXX, verification of to member we enterprise who So quarter guidance grew more grew of not contacting. to were slightly make the for XX,XXX the the our is from last coming have of members, to our enterprise that the used of and Medical, of status but who and we employers quarter, of discussed approximately is may One growth under enterprise Iora's members reflecting XXXX members. growth finished year-end through provided [ph] on vaccine third us previously QX end year-over-year legacy full last XXXX. than who members include quarter of a fourth in to added XX% the their year. count by Iora's commercial XX% asked care surely range more at-risk up verify We their call, XX,XXX, compared at primary which we believe as above and mind Consumer total XX% earnings XXX,XXX with in total

Medical not these into to currently expect these While we that will retain continuing to of showcase them hard our opportunity members. One convert continue to most capabilities an to convince we users, have we members to work and do

range, This verification vaccination estimated enterprise very sales, XX,XXX XX%, membership and the of high retention. mid-point was driven new total strong showing our growth members, by continued member year-over-year still as as Excluding up well consumer was strong growth. our

At time approximately enterprise vaccination in At our by proposition the contract value, enterprise particularly market, and For XXX by we customers, future. out foreseeable have the same XX%. for compound our growth of for increasing strong said we eligible employees than the in continued employers. XXXX, XX% end the with time, nine Iora with in membership our retain annual IPO, per low covering XX retained enterprise the growing more as total targeting larger were XX,XXX client the out average clients and new range XX% lives signaling growth example, consumer verification of a of value XX clients acquisition members. the number year-over-year, Since excluding signed enterprise rate we than members, of impact year XXXX grown we their nine and at and the of dependents. more we And of to than measured we of XX% more

revenues by business, to up comp Fourth contributing against million fourth on in net earnings XXXX, high revenue meaningful Medicare associated $XXX.X our $XX.X driven came elevated Total our guidance to was growth services This the call. with performance COVID-related with revenue. at-risk million revenue for range to difficult of end the the in our net $X total revenue QX compared primarily our in QX. increase last total year-over-year to commercial at and grew XX% above a issued $XXX.X million, year-over-year and Moving X% revenue the quarter revenues. and quarter guidance by we million

this revenue increase decline partially an by driven was was members, while year. it growth in offset So in COVID-related compared revenue prior quarter's to past commercial a the by

$XX.X annual with revenue net at fee-for-service in growth was commercial revenue revenue for the fourth with membership up was by patients in as driven compound from Medicare revenue. primarily and fourth members. to quarter, risk-based growth revenue fee-for-service more QX million, other XX%, rate million in the X% XX%. X million partnership care. grew aligned Medicare quarter fee-for-service strong essentially revenue a Medicare growth line Looking direct it in the Medicare was And growth our quarter we year-over-year. year Fourth in capitated $X.X and $XXX.X million, $XX.X contracting and was

at separately. Looking in at and revenue in $XXX revenue came million. One Medical million, Medical revenue Legacy for QX Iora One at $XXX.X legacy and Iora came

no longer we integrate revenue Medical discussing operations. mentioned be legacy the as One previously, our As we Iora forward, separately going will legacy and

close in million business. full revenue grew XX% the XXXX. $XXX.X growth. the million, acquisition strength in increased was and $XXX.X to XX% This the net revenue the inclusion to year the Iora million. XX% of Medicare third by Turning commercial revenue straight to XXXX, commercial $XXX Total of In continued year since of driven

approximately Looking of million acquisition September $XXX.X the I in be we operations. transaction. revenue, numbers XXXX high our impact guidance on initial the at year of separately that we out million million integrate going end revenues One of Since will QX excluding above Medical more contributed with had the Iora, the provided of $XX of we million, our close note Iora above connection guidance close not full $XXX.X the the Again, these provided on the the X, in than breaking of XXXX our end forward, $X call. high XXXX we as will

claims P&L. expense was to medical fourth claims a Medical for translating expense down quarter Moving million, to the $XX.X XX% ratio.

Our than third-party modestly deferred medical quarter, and into increase in the the expecting care in we surge claims were higher from for late by with were increased the during medical January. COVID hospitalizations pressured December Omicron usage

across basis, mentioned, the a [indiscernible] care, to of year-over-year through As due primarily claims all to clinics consolidated of expense our continued compared cohorts. basis to most in Cost to recording quarter we our ended a improvements to of medical meaningful million, care of XX% expectations Amir prior given see XXXX, on mechanism, year in regardless ratios the $XXX.X improvements Iora. most on full are the fourth cohort of in with ultimately our grew change year which we members the of addition

labor new range, investments of growth which offices. saw We our a Despite the in of to in $XX strong our revenue. was continued high guidance came million, and our end at equating care in also margin and providers, these investments, XX% COVID-related costs support

addition awareness incremental capabilities, continuing our as for been new combined And the the for for make provide would quarter revenue, marketing with Fourth full or first with the is Iora. team At is will and going of time, and Adjusted acquisition leverages SG&A Iora, preparation meaningful forward, this costs, $XXX.X leverage to our opportunities the in integration-related are quarters. market quarter despite additional fixed XX% this platform million. and which investments reminder, largely in member us compensation launches. legal help base. to have of recent at the million of $XX.X came line a same in cost stock-based SG&A since better increase each we the As brand in growing

team We further to to as our product grow tech continue we also and innovate as country as technology. well sales across the out build our to and our continue team expand

$XX.X dynamics in generated discussed, our in quarter and investments a of full these adjusted look year. million, care from XXXX, in last mid-point As the result have a of at other guidance million EBITDA came at negative the year. We we for at margin up range. $XXX.X the XX% perpetual the Taking

the full the shared. percentage $XX.X just partial And the a per margin for XXXX revenue came by of at a margin which year care higher was adjusted drove of inclusion year, XXXX of for member, care for negative but Our driven EBITDA million, year in X%, a Iora, dynamics negative at finally, impacted I by significantly margin. XX% full negative

we paid payment to expenses the acquisition in as Turning that increase the was the in primarily sheet. $XX.X a activities, operating used This accrued quarter. million million payments. the which decrease both million timing fourth third securities, primarily liabilities, marketable to $XX.X million included decrease with quarter, now to balance in $X.X cash receivable due of from well cash a and $X.X as $XXX.X quarter for a ended operating certain accounts We $XX.X million of million the driven by lease of and in the in Iora out a related

we to quarter We invest in technology. capital also course our of and the had $XX.X the over as expansion million expenditures in fourth geographic continued

discretionary our to spending, and our to with that will We marketable cash liquidity growth. believe our provide together to our continue sufficient balance, ability moderate with us security fuel

offices. start-up mentioned we have in $X.X will are at-risk who we previously initial to beginning. and spend capital to negative approximately care we counting not the Furthermore, In open XXXX, example, a office expenditures, expect have million Medical XX we margin One in that new between new to new average, members for costs. expect For XX continue that on

us Our approach care allows to unique longitudinal member to model deploy alternate and strategies. engagement

direct full members a in on this risk fee-for-service HX [ph] on basis For of contracting. before example, care taking members in taking these Y

also approach at-risk this reduce growth While can profitability. near it revenue, member needs and term cash and reduce boost can

year. earlier. has strategic strong start as coming our outlook the Medical to for Turning is what by reiterating been. Amir One positioning ever I'll said as it

our geographic grown service while excellent service provide to footprint We membership, have customers. and continuing our revenue, offerings, to

And business set of direct future I'll we course in out average the has part this COVID as volatility, IPO, has of that approximately growth long commercial on introduced about our the XX,XXX some we contracting remain executed for of recent the our approximately since as January have XXXX. as While some on end of also there the of membership with note target near-term We been XX% long-term and to revenue XX% had program. run. discussion members which of the year. increased XX,XXX year XXXX, direct of contracting growth

the that assumes today form. guidance for the Starting in continues guidance its full with XXXX. year current Our program

range and members and since from estimated to expected a to XXX,XXX, mid-point. expected rate did verification revenue. between between of year-over-year compound XXXX, these these our year-over-year XXXX. are QX vaccination annual growth the growth, predominantly XX% XX% implies at range members excluding XX,XXX of growth verification members XX% to XXXX. networks, in this Consumer are to XX,XXX in to excluding mid-point come these XX% of us XXX,XXX at total which XX,XXX at-risk the over XX% most joined members, XXXX And and XXX,XXX growth enterprise retain and in growth associated come don't members We yet vaccine or XXX,XXX, much we And members verification expect not of members. members expect at of vaccine with These point,

and net appropriate, and to expected XXXX year to believe billion. Commercial total be to the guidance in million, is range million COVID-related $X.XXX full billion revenue expect we between $XXX which volatility. $XXX come We given between be revenue $X.XXX a

we members, COVID. meaningful revenue lag year, non-COVID-related And patterns care. XXXX, And primary at in and a a we are are about similar estimate for XXXX. surge many provided outages percentage in Omicron COVID-related also services January, over also We this revenue decrease visit while balance to be routine to project revenue revenue in impact the in these last at year-over-year experienced tailwinds some projecting affected between temporary looking in normal employers more point COVID-related Speaking X decline some of to revenue. XX member points in on and an which services in return across significantly some tailwinds COVID to the we projecting costs. a dynamics per we due higher forgone increase these resulted team country, to and to staffing to attributable the

to our the mid-point and said XXXX prior revenue is despite XXXX. business. this to have believe range, at in expected an with the million negative growth XQ the expected for presence. is expected and We given appropriate $XXX $XXX at mid-point, XX rate At to for from of range prior growth to from coming growth rate. open Care continue right to we entered to of I expand Looking guidance we XXXX, line XXXX pandemic medical the $XXX to term compound we to million And million that quarter run the we $XXX million. the the the $XXX run utilization guidance Medicare compared surge in quarter the offices rate the the IPO expected range of volatility, will would XX% the time compared for X implies long-term $XXX be year we year. of midpoint the which Omicron the our the implies continue year to annualized over to to negative annualized we over range of improvement to since XX% in have as XXXX year the planning earlier, XX%, year invest is to annualized seen a as from million XX commercial as set senior this are between first EBITDA fourth near revenue hospitalizations the [ph], COVID million, mid-point XXXX's fourth with moderated. is at XXXX, and of expectations our million margin pandemic. the of Adjusted of is annual in to imply XXXX for full which the full quarter our and At national $XX including growth,

Now let for quarter turn XXXX. of to first me the guidance

total the member year-over-year to and to of excluding and growth implies members enterprise year-over-year growth, estimated XX% XXX,XXX which the and consumer expect range end We XX% is in XX% The of implied the mid-point. with members. XXX,XXX, at the count quarter verification growth be year-over-year to vaccination between XXX,XXX XXX,XXX, expected

of come which the of membership We XX,XXX between as of mid-point our last at-risk members, quarter Iora's expect the imply member XX% year-over-year in XX,XXX to would compared growth first to and year. at count

$XXX Commercial that $XXX between at outages and XXX% of We implied to included CARES range the mentioned and expect the the funding. million compared expected $XXX revenue mid-point year-over-year Act COVID-related Omicron-related $XXX revenue including QX earlier slightly due increase first range to the revenue million COVID-related million. growth quarter of $XXX and Medicare the total foregone revenues the range is is from and be to million to $XXX XXXX net down impact, XXXX staffing between Iora's at an between revenue midpoint from I revenue expected million, to in given QX and million, of range.

and of margin our last discussed dynamics down million, given I is to $XX between inclusion the year, expected our at-risk First be the business in from financial quarter results care earlier. $XX million COVID and

cohort previously our while medical our we senior see continued to at-risk expense ratios as year-over-year, at Looking have claims population, decline described.

business range primarily And $XX particularly expected footprint. starting results strong January, Despite seen down in of have membership the near COVID-related from million, as inclusion well of already XXXX, and between volatility, COVID up finally, to expanding operating growing and in and have our we'll proposition, conclusion, base, that, and an We EBITDA trajectory financial year, moderate. we questions. as And discussed. due hospitalizations in the health other to with last for and to increase in employer the performed our partnerships offerings a are Medical million In environment, posting all life adjusted term and strong challenging stages One negative early I geographic to due ever. very call causing outlook relationships, Operator? network some value open long-term our factors to negative though costs the Medicare $XX associated seen hospitalizations Omicron, is

[Operator coming the question Thank JPMorgan. Instructions] Gill Our of you. line from from first Lisa

open. Your now line is

for afternoon, just all couple Thanks your really expectations. and very Good start, to I just of Amir. with Bjorn Amir, detail. want the thanks And much. a

physician trends salaries can you're when talk can did cost But on for shortages? of have around have you you First, And talk are Omicron, about your any just seeing that issues were those labor to talk XXXX? because about some the for costs, in about then you you fact any what that of the and medical current you Omicron. out you did seeing physicians your that we about guidance, within you physicians? have And secondly, think expectation cost of what your increase labor

Lisa. Thank Yeah, the Yeah, things. a you question. couple for of

Year. to heading of we labor. of the into as that issues seeing think have even factored don't terms the broader there. increased any certainly factor first have And We outsized more were we're factors certainly I But think the not our we costs. immune have little into New we we're incrementally projections all, to any did or a bit I in economy in extraordinary

So those in those our factors consider. are needed were we to and numbers,

as certainly, of towards other end moderate little to are employees being that of see and saw, begin those expense in a beginning year did on some to accommodate we of the last did in year we of have in expect that the a bit as come prepared to impact, employers mentioned our little did But year. And ratios. those Omicron remarks, like of through moderate able claims the medical in. members. we we not seeing the our the able the bit And us end terms impact terms In of to and

Great. Thank you.

Singh next question line Suisse. from Credit our with of Jailendra coming And the

open. line Your is

for everyone. good about Maybe guys Thank for expectations MLR if you afternoon, your provide And maybe talk directional Iora can cadence. quarterly least color XXXX, around you. at some

particular improve Just trying to see to you in cohort, XXXX. MLR understand opportunity that

year. Just color or there some give next expectations

Yeah, happy to.

that and a look medical COVID-related costs ratio COVID. population XX% believe Certainly, yeah, be we QX certainly, higher year, playing XX% going as certainly saw we care. we Iora that well to to XXXX, of that term medical last as of expense in the claims this reminder, claims closed. if do a just the actually you Maybe among of at ratio bit part patients. contributed by continue had So near has since our medical to driven acquisition in fair year the in out And as is

the throughput numbers. XXXX, assumptions then So throughout as our do sort a we see normalization normalized of a through are moderation more projecting to I the walk some expect we did hospitalizations, you year. year certainly rest this Again, January, but of increase in

Okay. you. Thank

Ricky coming Goldwasser next the And from Morgan of with line our Stanley. question

is Your open. line

evening. Yeah, hi. Good

So two questions here.

remarks, lag see about all, assumption prepared XXXX underlying that to you're talked for a to routine care. going in of First return you in Amir, your primary the

longer second and think guidance? in So think around that fiscal you to And makes it's cash should us question then going the of about to we your what how year XXXX my just take seeing normalized is for rate, that expectation to get are flow you environment? burn sort marketplace

all normalization, Yeah. to activities. the offices in of to seen well. big the mentioned over to much. people pre-COVID, we as of And the of their of seen we've and normal Yeah, we've in you routine and to than maybe yet Great, return including that, just levels And if visits, nature. return visit and the visits pre-XXXX other past levels. the cover you But returned group other as over the include things overall levels, kind terms to normal testing return and haven't that, years, markets many start Bjorn when past, but hand I'll visits our and Ricky. higher underlying so the activities, haven't Thanks COVID-related I look across exclude utilization I'll couple that you you can it or COVID-related - of and country, will, that's setting those when activity, in that. including testing when

So that see that leads routine as in care to the return. us primary be projection when cautious to we

$XXX believe there. terms question, well positioned we we cash million mentioned, and more Bjorn cash the In than in and securities are have as marketable of

ability offices our open. at-risk of patients level kind have moderate to we of that that of the and take We we also growth and manage the the level

we're think positioned So there. we well

And maybe more a little color to just you give there.

biggest think million bridge XX back, a CapEx to heard the new [ph] expecting buckets you about our pieces are about mentioned. XX I there, technology open year-to-date. adjusted I we adjusted if cash the think think And office to guidance to offices. The as You spend you capitalized those the per really the to as are are million two obviously probably every from step bridge When is $X.X average about I as big to cash. Those about cash we've EBITDA million historically, flow $XX from about here. of deal. $XX take Even EBITDA

Thank you.

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

open. is line Your

comment Thanks then they're so the you're changes question. and sort comment business tracking And guys. was notable could and the targets Iora of how you trend in Hi, season on seeing your any I selling this could if commercial Thanks. expectations? wondering you for your much if year last on synergy that versus versus year? also and the how

Yeah. Elizabeth. Thanks,

one we banks, exciting, to call And starting see the pretty and exciting and us. things that today, In on segment, the employers. to which employer attract we I'd that's the we've terms larger attracted we're we're to is starting one larger the of mentioned mentioned also of the of is larger say

employers. today announced market, also us attractive again, that on more call will more into to larger our XXth the and making We entering be we and larger

to sometimes nothing companies, with to programs processes those would of larger take little those take attracting a we're the roll and and say Now for the talking and except as rolling times can employers out fact that the But and selling larger you longer. larger in longer might general, larger programs different, start I fundamentally out the lead employers.

about our coming on really our our teams, the the track We or together bringing nicely, our the favorable feel And to bringing side, synergy. is integration. good together synergies, about the we of integration on extremely as revenue believe feel terms together Iora we well. revenue In and midpoint technologies then the even we're of synergies

very positive feel So there.

Thanks. Perfect.

the Barclays. next with James And Sarah coming from our question line of

Your line is open.

just may by need hit that where And if we the to you you. Thank can about thoughts assigned update to - your should segment How on breakdown admin I that breakeven? segment think does of us the appreciate breakeven? be to cohort. hit load Thanks. MLR MLR when

Yeah. question. Good

to I really direct or maybe an for on will And I the it opportunity company, funding really from our think us cohorts before growth of our coming a for something think that to earlier a approach longitudinal impact member early right, it's impact is today, - provides of to actually medical fee-for-service contracting total [ph] heard think at-risk with a a we growth, members those Amir will perspective, where change model question care basis I here obviously take that in year MLR loss from it the EBITDA, As impact ratios, but will model. growth, on that to you the unique particularly care and given two revenue obviously, to negative. be tend also

certainly pretty overall. I our think the XXXX and think, of most, performing well I you have we cohort, sort unique opportunity is look cohort, at So prior, When call here. is a it, which mature

ratio given XX% had of in overall a You that will dynamics. year was really COVID the our see we for sort XX-K medical loss challenging, that in XXXX

combined continue ability So individual cohorts. really to those of our results we will mix financial here the good is about what very feel on of the a drive to company question cohorts. and And the see you for growth

your Any about Got think on load color admin it. you to how Medicare assigned segment? the

I to offices cost expect across most our really care we driven basis. by members combined care, of of something take the most we our that going that's a fact the that disclose mean obviously, together. Yeah. of is to of on are And

all talked that had notwithstanding of about And designing with You've or that's might definitely heard in of of some our be that our offices we and members. are we're we do them the offices, to something our earlier engagement going specialized. that most

me margin well in the really leverage think when to that that's take how lot at two medical business total from you guidance, between to fixed the cost to as look up care both the our of SG&A really where will third-party care cost coming invest our you really So sums companies. see the into our need of as a largely much on side, members. our I base And we think I then

you. Thank

question with Grosslight Daniel And our next the line coming from of Citi.

line Your open. is

a question. bit you. the A for of for Thanks bigger picture guys. question Hi, taking

where about As you year. offices new thinking Iora bit Medical this you both saving facilities, Iora facilities to and Do Medical open consolidated be on One in separate? One to you up I there's Medical little cost? combining Or the brand? keep think are how mentioned and geographies they intend new One XX and XX And offices, under you will a those

medical Yes, these Thanks, thinking of general, One have together. them Yeah. indeed set of in already started one bringing and as facilities are Daniel. we

we as One already already stated, example, legacy Medical taking risk offices, in For we're right.

senior at-risk those center So in the we different that situated were continue may situated city already the populations. that have near Certainly, we were offices to center and near attract members markets. certain have offices that

for And geriatrics. some city center or pediatrics aren't maybe offices great

about this offices. different in way. And a so general, we will potentially are But different services in common have thinking we in

we a can grow So those of those in lot markets as populations. suburban serve all areas, offices,

bringing Of our staff. team technology, corporate We're together virtual leveraging members. we're common course,

across leveraged organization. the So these things are

Thank you. it. Got

next line William Ryan the of coming our Blair. from question Daniels And with

line open. is Your

rates Thanks we've with increasing couple the the payers churn guys. are losing question. newer Spiekhout for entrants. kind members Ryan. MA seeing for a in competition taking of I been guess legacy my that the kind of market of Hey, increasing to Nick in at payer

respect affecting expectations? your to then that's at churn how XXXX Iora, wondering with how impacted [indiscernible] and particularly Just managed lives that's

Yeah. Well, with multiple payers went to think we than beginning payers markets noted, the our eight I to - XXXX in Thanks, more of payer XX of we one Ryan. in each markets. eight in now as from

wouldn't to to retain to the plans payer. if members ability in is particular in that that might able there And those some we health have see of multi-payer we changes us well supports past. retain did switched certainly been that any that have maybe So be

news, our So for our diversify and sources, to certainly, allows of that's positive us and kind will, payer you growth. that if opportunities

we contracting have direct opportunity the through also course, well. as Of

- and continuing indeed But our and be good our are ourselves really that, base. we really our revenue and are growing nicely member we why said members factors, that. about things certainly those So grew to multi-payer. Having felt are preparing that's to and

the for color. Thanks Great.

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

open. line is Your

Hi. the much questions. Thank for so taking you

verification members? the just So on members we of three us patient remind I have each vaccine focused you Can patient of impact think members. - maybe were the your just revenue those on of lines? And changed anything primary the to understand paying view with on respect to then kind help or Thank traditional us to if your just Medical members those potential One care convert you.

Yeah. I'll take that one.

meaningful reason model, revenue our in these and given recall, XXXX, for The typically. month not to So in that, employee from per of per employers the perspective, we the contribute do XXXX. basis revenue amount you actually us them certainly do members don't our a are membership if expect on paying

tend all So say. should of they of their they to are for I for employees, their all or pay employees paying

up did their members do, meaningful on revenue verification and signing benefits the members What not us obviously deepen however, teams. incremental really their employers, those to by we just is did in XXXX. we providing relationship generate with employer, So with these additional our services

let's [ph] service. that, So do main why we customer the integrate yes, reasons one let's that's of said,

our we retain keep think we of to them capabilities great to them. our showcasing terms a certainly XXXX, ability to In in have opportunity

not or to customers have sign But for those can that in is enterprise we'll benefits most a great with asked us, opportunity to verify so the necessarily They by take members. a now us. fairness, of why retain an at I'm who But us. I are, with you point, when assuming our were of value past to proposition. these think employer the about that them continue certainly step educate status. they That's back, interacted not in employees this their up they have and vaccination customers,

Thank you.

turn any all today. that's the Q&A to Mr. call to time Rubin And closing our Thank you. session for now over I for Amir would have back remarks. like the we

transform Have evening, all your joining our for and of like Thank great everybody our mission One for care health Medical thank I'd enthusiasm a Well, you session to and support everybody. much. for so and today to for all.

does that today. you gentlemen, our for Thank participation. conclude Ladies for your and conference

now may You disconnect.