1life Healthcare (ONEM) 5 May 222022 Q1 Earnings call transcript

Good day, and welcome to the One Medical's First Quarter 2022 Earnings Results Call. After the speaker's remarks there will be a question-and-answer session. Please be advised that today's call may be recorded. I would now like to turn the call over to Ken Goff.

You may begin.

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

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

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

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

may dynamics may During future. These or of the metrics details call, nature, the be in greater into we in updates one-time offer insights provide our the provide business. incremental we may and to may not

September meaning remind I'll we that, I'll made call on that Finally, last of XXXX. of acquisition not over to in the included turn Iora that first their year, you results to with of Xst are And comparisons closed the quarter the Amir. any

thank Medical perform, and quarter and innovative members to everyone, with to better with delight better you, environment. its care primary the Ken, grow you, XXXX, continued for better us. Thank In costs within first One team care, built lower of a joining model innovate purpose health, for

high range of million. more of $XXX.X performance, terms QX exceeded of In end than revenue our million guidance by the $X financial

quarter multiple across expense the health to both members, EBITDA, and and Non-GAAP providers claims XX above decreased from life And extremely medical range. ability the of to the ratio percentage care for our continue health about of respective key high transform all coming Care, guidance looking including stages stakeholders, we Risk at to Health end the scale be excited points, ahead, margin adjusted of networks. at employers, also Senior measures compared fourth care with For by outperformed profitability XXXX.

also the to XX% of included of the at-risk XXXX. continue and first QX over in the growth at-risk included in from above up In the end Advantage. With driven members. enterprise range. XX% members, This compared than terms XX% technology-powered total and members, our of in member count up consumer well of year count It membership member which as from high to Iora's quarter, up grew model, members, by human-centered our pre-acquisition and to of last top XX,XXX XXX,XXX XXX,XXX quarter was year Medicare more count began our compared range, program delight XXXX QX that to as end direct guidance our our contracting, a we guidance

response expense machine a For us percentage example, respond enabling ratios, more and XX significant with we continue member see even models our learning the full test health to XX% in continue inquiries to At-Risk senior reaching sequentially. improvements seamlessly down our quarter, Care, medical even faster developing claims to time. results With share we our in points

may our cohorts recall expense all quarter, a on showed improvements across continued you from claims of we ratios last basis. medical As patients year-over-year At-Risk in

continued avoidable outcomes We most analytics Iora's team in members nine provide leverage previous machine by care have chronic members efforts. One Medical upon us also conditions. connected through office could seniors virtual well identify and model, models has experience to innovating be on for who to and and We to better together Medical this Medical vulnerable allowed and care At-Home average, management complex served further intensive costs to patients. our our teams. At-Home providers while learning we and our At-Home, complications. deliver reducing who in-home vulnerable approach care member bring technology One our through program, building our One Through

costs matched risk historical For months, averaging than highest compared spend statistically with cohorts, spending non-enrollees similar in a reduction a XX% profile patients to risk. in the program over the six baseline significant example, with

to accounts, national addition value In clients. and our members, we employer from continue outstanding delivering multi-market delighting to existing including new

a geographic of increase from interest to our employers, in an positive footprint our multi-market larger validation As strategy. see national we continue growth,

seeing in-person and backlogs and to the recognize how and prevent our care avoidable of virtual deliver model addressing differentiated care also down hybrid further morbidity based can employers deferred value-based are primary road. We results, cost outcomes care clinical

the health conditions, program is of interactions lipoprotein many out XX% LDL disease stroke. exercise of experienced Chronic For cardiovascular and by participants pandemic. includes a with disease metabolic because care we greater during further high provider XX% risk to a guide. followed which a recently of Healthy low-density bad and and and saw The Healthy to example, heart people by than can in-person by reduction. reduction Heart with such attack In is Medical a exacerbated large programs which in address may focuses virtual XX% the employer, known LDL-cholesterol levels One series risk out as of be an add of with also and coach or with One rolling and bad participants cholesterol, a the a assessment employer, LDL deferring care Heart, risk rolled chronic

rolled and One that engagement, called our Mind visits mental employer, to focuses in One a after by are steps on Mind self-efficacy more Healthy and a Through can Medical physical XX% Medical care to this look increase employee an Healthy are employers recently one's combines which we primary promote in broadly, motivation out with testing, standardized solution at One Healthy health. Mind, important Mindset when coaching, mental saw program therapist. well-being participants needed, supported mindset measures average, seeing is health a employer and Through confidence health scores, capabilities an well-being. and how with score and confidence cognitive Mind on resilience. Another behavioral and set, Medical of expansion wellness Healthy improve and

Heart Accordingly, now dramatic are to improvement levels, as programs employers. are scaling just additional Mind programs and with demonstrating Healthy these we with we've our Healthy the Given demonstrated Impact we these outsized and deliver modernized of hybrid for impacts diabetes longitudinal can and value. our for solutions health model program that chronic conditions primary mindset better care other behavioral and are differentiated better

employers, and delivery we care addition for and lighting staff. are In the also Medical members providers One to health

We time advance focused working them providers, administrative reduce virtually on to spend in in country. more markets to faced our processes by across patient and care, continue our to or person technology team the more allowing burdens whether

raised of Best in care the than by we last reported mission-driven Midsized and other Furthermore, culture primary Employers us history quarter, more enabled ever Forbes of Medical One in to as Statista As hire in any strong Medical. providers One one American QX mentioned quarter our Imports. has recently

on continued partners, experiences. complexity partnerships coordinating and advancing to to health own network setting care payers further our further across value-based of and to care Turning of behalf deliver our of a integrated continuum we the members

on will partnership with into recently Hartford we which us quarter's call, a Healthcare bring in last Connecticut, entered market. As into our mentioned XXth in-person

and we further existing interest partner Additionally, partners on commercial potential from network new us to health senior opportunities. continue with to field and

continue payer relationships of to expand have health more with partnerships We nine place with for Advantage per market. different in also average than more plans at-risk health plans four Medicare We health care. plans senior an senior our now with

future. us member of more for more at-risk lives growth also retention direct in and the grown together potential have which contracting, for avenues gives We our all through

in operating just our have life outstanding execution start speaking in better better combined our of we against technology to more we a our people we capabilities, multiple of with integrating in-person week across virtual believe plans quality believe stars. summary, high-quality management better positioned X.X environment. teams In Medicare organization. expectations for one plan. out team plans, an our every models ourselves with a analytical with we impacts the We and never serve rating performer about to Additionally, models, reimbursement and more our uniquely outperformed highly Stars' stage care and for are life to better and we for top under health, quarter, Iora's every year, have notifying us delivering technology-powered we strategic and members five stakeholders key markets effective we we across in through better human-centered of serve of care, this ahead reflecting model. that care, strong results and of equivalent the expectations making our been the last are stage health And into care. been our providers, value, of are with Accordingly, a strong nation value-based positioning off are believe We health

to it turn me Bjorn CFO, One let Now, Thaler. Medical

Thank to call. you, joining hello Amir, today's on us everyone and

Medical profitability strong revenue strong business. today growth We outperformed XXXX show As our across metrics, continuing while non-GAAP first a quarter reported to results. Amir discussed, One and

customers, outcomes care lower in seeing care shareholders are And touch year, of commentary not for meaning included acquisition profitability will you we that revenue in of provide our value our outperformance I by positioned our that on employees, on of the providing and health offers. well of first integration partners of long-term and high-quality closed enterprise the health senior our position discuss businesses. quarter are call, on cash first and September this Xst our sheet total good through outlook, network health any Iora will quarter LIBORs, improves are I to walk to for we help our and the On We metrics, that last progress comparisons members, commercial results balance on year. remind improved rest our XXXX. and their non-GAAP the made create

of last fully first our our is growth XXX,XXX. performance, revenue representing members, XXX,XXX Enterprise These the XX% XX% last guidance. had we consistent call. coming midpoint and are first to grew year in with to the quarter quarter above XXXX on our of members and guidance, Turning the expectations Consumer of with year-over-year which over finished business we

members Excluding Application mostly this growth senior the approximately XX% from impact last represents year, of the approximately of XX,XXX in quarter XX,XXX, year-over-year. Medical to added

status these not reminder, in -- were and used XXXX. through previously employers their vaccination care to their nature a members have primary One but asked Medical, for [indiscernible] verify As by

our members on At-Risk growth contracting that the of compared the membership, of a of to includes we our above to with call. Turning members, earnings X,XXX fourth the discussed the and members we situational high-end This XXXX. rate our quarter XX,XXX XX% last direct quarter guide finished XX,XXX representing

decision basis year, and this these throughout that date the keep made a please until next contracting in fee-for-service direct on members we mind will take in add patients year care alignment Xst, the Looking not XXXX, on ahead, January instead we incremental to XXXX. the of throughout

quarter the total Moving we the revenue high-end XXX% of $X grew above on range, to the last on revenue, guidance million, call. our year-over-year for million net first earnings issued $XXX.X to

at-risk in contributing This QX. our primarily Medicare capitated increase $XXX.X revenue XX% was up and revenue included Medicare growth in for Medicare revenue. revenue, million by $XXX.X million members. the our $X.X in in to Medicare compared driven of consists to net other by of with QX business total in revenues XXXX, Also revenue service inclusion fee an sequentially, Our of driven primarily are million average

to enterprise above revenue X% million revenue in commercial up quarter a million, end year-over-year. our guidance came First our year-over-year. million, commercial of and growth revenue and at $X.X similar up X% members $XXX.X $XXX.X fee-for-service consumer the in of consists XX% revenue and partnership $XX.X growth This million, and of of and year-over-year of top membership net

higher-than-expected growth commercial to constraints was and it variant. sidelined conversion COVID-related due members in quarter's year our impacted due in providers to was by year-over-year strong by growth revenue rates, in this and also Omicron decline driven by a revenue While capacity the early being reimbursement the

commercial compound QX growth was annual strong XX%. two-year revenue Our a rate

Moving expansion documenting status, million care XX% drive this appropriately down of senior in or compared up ongoing in time. expense COVID of first to equating Medical Cost to above better down came ratio, to January missed other these to point our the new continued add the care due of our opening pandemic. the manage deferred of infections, us $XXX in $XXX.X work was a at is strong share more their enable XX% prevent our to was illnesses and ratio investment will expense service the the we offices This XXXX. our patient-facing will medical $XX.X for procedures of throughout translating fourth are We million, doing business, their to and percentage range, quarter. an guidance over claims believe hospitalizations variant, six the health the continued the and care margin from impact million quarter, over to use impact XX% improvement members P&L. end claims continue year-over-year, revenue. staff, or help avoidable Omicron quarter Despite in in $X.X quarter by addition a XX investments, high the to the primarily despite particularly the of million, that our

came down of in XX% Third quarter quarter of from or XXXX. SG&A at million first $XXX.X revenue, in XX% the

we in to Our the top goal quarter, EBITDA improvements scale investments in above business. is purposeful expenses investments business outperformance, in Adjusted opportunities. came operating million future make $X.X a our responsible the in in $XX.X at to and show growth million as by continue as of revenue revenue, negative we guidance while the percent driven our the end range, to of make

timing was Turning now certain million used XXXX. for million $XX.X decrease quarter securities, was when and to of primarily $XX.X and the the a of marketable the Net you activities. [indiscernible] million working cash in operating This balance primarily end driven from ended $XXX.X cash sheet. quarter, in million receive capital the driven of with We a payments. by $XX.X in seasonality by the

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

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

turn us let to Now guidance.

year consumer XXX,XXX full to of range maintaining are XXX,XXX. we guidance the for members For enterprise our XXXX, and

the the X,XXX-member At-Risk XX,XXX members, of range. previous For now are end between to we a our land XX,XXX, on and increase guide both expecting and from bottom top

end, range and between $X.XXX increasing and bottom and both net billion. on top are expect by We now $X.XXX million XXXX billion our $XX revenue total the guidance to

the end and environment our we of million. $XXX the by to our bottom the range million, both by $X Medicare tough And guidance $X $XXX commercial million. range $XXX raising million top revenue revenue of million to with and also million are $XXX are being new We facing

$XXX million between expectations an expectations top end to increased bottom raise on margin our of XXXX, also us share increase in for million range of now expected allowing the million, Our the $XXX for revenue and are to range. $X and both

line, some to the we into the but adjusted business. it some of also at of through to Looking expect outperformance flow investing the EBITDA, bottom back

of range negative to the expected negative and between the with million such, As million. new are $X $XXX end EBITDA by our range be adjusted million, raising $XXX bottom we

growing between million be quarter, to of $XX come million, for total million footprint. $XXX people as delayed range is For reflecting services. that quarter base, the that, are Enterprise to revenue expected care $XXX partnerships networks, from of margin and life, digitally, way continued across we tier in $XXX members between between and strong negative episodic guidance million $XXX our our a is expected between million members stages and and both million care implies margin questions. XXX,XXX revenue the to to and and XXX,XXX between and environment XXX,XXX is second to geographic in between expect second health relationships, our to be well ability in open are model and and is for $XXX Operator? XXXX, in to will million. all with expected members of employer net revenue expected at-risk Total range financial off they Commercial in and highlights expected to to $XX XX,XXX between XXX,XXX, EBITDA taking members to we at Adjusted a million, our is the Consumer We be XX,XXX. the members, up continuing range XX% members. by all Medicare the million. results and longitudinally to support revenue and negative growth call and $XX conclusion, whatever expected $XX expected believe In One midpoint. margin start our to And Medical And $XXX prefer. and our post is of both of million. and XQ which membership as come in

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

Your line is open.

and and of the a for evening guidance congrats the half quarter second good Good year. Hi. on the

more color environment, on and of the side, what commercial for the One wanted on legacy seeing you're utilization in to the on same Medical Just context terms more core get and in Iora? marketplace

May getting you, the celebrating, to here. fourth you. but Great. Thank our topic and you to be of Ricky, all with

care it, seeing experience seeing a in health I'll effort Medical in towards, COVID due it, consumer complex those certainly, At-Risk down seen to a -- on a towards, And reduction expense more some we've which the done I'll about care side, I the our utilization on top medical claims that blended primary is lot decline more our our in as and program that come progression spikes experience including call the of days really risk for to normalized we have One of movements very said, see spoke in experience, we're a XX saw we Omicron, primary but a in were commercial had senior that On a side. work certainly managing very normal home. team-based January pleased the more of as points call rising risk, the enterprise and this on percentage program, also, looks manages my real prepared remarks, ratio, side, IR I the At side, on Home we in through patients, seniors built the going them proactively stratifies into care, including population started and complex testing

We then and And kind Okay. lot one just get investors from of follow-up. of cash like around questions position. a burn cash

share So of sources capital sort if of kind like cash of think approach for with you in often of just your just And how you kind thought should terms us position. rate? of could sort about

Yes.

our our appropriately ended stores and marketable cash with also we we the at goal we that considering and business are $XXX.X overall, of million. So capitalized And feel time. [ph] quarter this here obviously securities

burn something is As us to we to we on do. do have cash the several available our if we call moderate that mentioned to levels that last already, decide

contracting to openings, of and that about addressed into those we've them can always but cash continue ratio another be XX create to call thoughtful on our that the For the things are by need in probably of really XXXX in the it And We the importantly, members the leverage level our involve just are just significant both executing our our relationship is that XXXX. and to is to points level example, and compared of a going to can quarter reduced on option that where claims call. help a side, we year, some side. also this we something do. operating Obviously, business. around feel make instead. we QX Those commercial us bringing strides We'll office not in like expense across core think during we on continue operations. percentage instead decided fourth January exercise will if most we We've medical to

our of XQ XXXX We of are EBITDA to in to negative margin, QX in negative adjusted continuing improve from XX% XXXX. up XX%

balance opportunities all also good maximize put same conditions where that our and trajectory. today, the that really have, going monitor forward the we'll structure and for the And strategic and time, at about you certainly have, the So, capital long-term shareholder we that we feel that growth. market cash dynamically together, levels and we we are sure operations we make the

you. Thank

Our next JPMorgan. question comes from Lisa Gill with

Your open. line is

into want just to Thank you. just a And membership. thoughts. Good afternoon. I dig to give little your

Medical First, let's of One with start enterprise things. the side

I Bjorn a of about the quarter bit talked you think a sales today talk verification. heard cycle. about last little We vaccine the verification,

And So about when have those do then over? the verification, first we we we commercial any successful the how would my the vaccine market? conversion members about converting in secondly, you think think pipeline about when think one, question been of be,

times members, it that nine as continues strong. Absolutely. maybe of Consumer times. Under to of a about I'll reminder, pipeline the nine first our plus. are value little sort to vaccine be have XX we they a proposition one, that Yeah. us verification we and out hand we out convinced which very seeing, the over then obviously the to of with members. to And members, Amir XX talk I'll are members, take renew again, of Enterprise bit

a as strong they employers to. their very resonates because we And us it you said, believe I basically These up continue reminder, proposition. results it today. need our see with well. So members, really really, that value in think you signed to And just

we yeah, to all and employees opportunity be guidance relative So, really those think today. most as we of stated earlier, about at necessarily One the time, to to I retain to them this to this provided Medical and offer we educate are upside now make frankly that bring. will benefits we don't But these, what the we we expect treating as that as

add. and I’ll just Yeah,

side In side, never our enterprise to positioning. terms of engage and larger of on kind We've Again, presence, longer, they're conversations differentiated and we here. multi-market great powerful. the the we think with them. in a take point being we It's that's may solution. And very about larger invited, our if those employers. been larger have conversations growing and more with commercial a not larger employers due that we approach such is But single to believe feel just

As we can talked overall care primary it's not showing about we on cost or managing talked well. managing and past, take behavioral today, of but in two as it's aligned down helping cholesterol just as the the to health, and resilience is health care, heart, the about we've

we the we're and pipeline having. great that So the there conversations commercial about and the opportunities feel

there or included some And secondly, we incremental healthy amount? the cost membership right? or for I first be, say, They're part Do that. the had things heart about, vaccine my mean, understand, we've and back others that office. somewhat an incremental people that on is like current just an different mind. on we've just focused to already would heard follow-up Obviously, things. to is employers the the want from other environment you verification. when cost though, of I focused like to talked getting the that, question. dollar any on The about PMPM feel are in healthy then you of some employer to still the Is

program. in I'll current the Lisa. That's included you, start latter. with our Thank Yeah.

program. extending we're of the and in kind just capabilities our reach So

We disorders, for have sweeps. other cardiometabolic diabetes, things

more and that seeing we can are as to were pandemic that right? whole are kind fact of the by And of years So that right? health person to we're add really as care, employers and and not employees integrate again, care. a sometimes do just couple due but care. We the We of exacerbated these times care. as of rated can crunch it's deferred not also deferred are points in largely much the These It's addressing model, need solutions, more proof to our sometimes of can longitudinal care, flavor point month. and we the the good

we're importers. been in great importers, So has growth. perspective said, area the with more additional And with like conversations regard, a that our in from larger larger I our of great enthusiasm organization seeing really never for conversation and and had

you for comment. the Thank Great.

next from question Our with Citi. comes Daniel Grosslight

is open. line Your

Hi, It nursing what seems the quite is seeing guys. on thanks than the well, XQ, question, been clinical like some your managing costs particularly with systems large and in the Congrats different their have of of quarter, you've staff. which been for some health

I'm any staff, managing you're pressures? wage How within the seeing particularly your nurses? if So those curious, you're pressure through

staffing. a not major component Good Yeah. major is Yeah. to of Thanks, in heavy even have Daniel. is you. terms an model and model a hear we the of though our – not we from our that Unlike the hospital fantastic staffing nurses, systems, in use do but nurses,

is that's major in in not economy not like, say again, group and what are not We're but different. looking nurses immune And really at in obviously particular. happening models. that again, use that to a I'd salary So staffing the our we seeing

clinical But teams, in or care any your it's providers even within are whether guess of broader, kind you folks? wage seeing I

provider as Yes, in more than hired QX. on mentioned, front, providers we I'd never the say we've

in keep So But factored we projections feel I'd all are have certainly on have them guidance. well-positioned. And to keeping our by market. the say, think then market, we're Obviously, outside. we into we count things certainly, at what positions, And but these competitive across be other of I to our nothing market with that. we're happens

Got it.

thoughts uplift we should the your on wanted think a the the calculate sequential then this around of for just And just PMPMs a XX% get year? the I to on this increase nice on you quarter. quarter? the side capitated in Okay. how side. saw of business, Medicare I reason that uplift rest of the PMPM And about cadence the capitated for in PMPMs

Yes.

last there a into this types right? demand care, in is year lot think new I the of And way of, saw So for rates going sort that a many year, couple of of on is of reimbursement sort a things, its this you to make are year. deferred here. the starting Obviously, ways,

starting that see think definitely have And starting mature. to to we you're that's cohorts something So I as see. that that to another level are that's The here we continue well.

lower As early they of do come sign-up the we I of continue we think a of do bit of throughout members Those expect them the little well-managed to at tend because not year. when us new average they be to to -- obviously, left reimbursement to a come have to tend in year, sort on.

the that the XX But XX in to of members. documentation our of labor making months And think, of as we'll to the of fruits care the So we in seeing, existing and the members see mature team I what rest done all on a for ways, see bit really as little and start take them months that you're year. you have better, our getting providers good in the headwind many of last they that sure is uplift.

Got it. color. Thanks for the

question Tassan next Our Sandler. comes from with Piper Jessica

is Your open. line

Hi. question. much Thank so taking for you

So towards guidance, consumer membership is implying year. three a last the it's quarters skewed the think I the just midpoint enterprise of at and the little of

strength? for call reasons to there the And So are specific what somewhat the out? half-weighted any Thanks. might deals sort back just if be interested of

cycles to we importers. with And multi-market larger that where the the add growth and beginning think and I certainly call get of particularly performance as of I of our feel out for importers, lives, as about the great year-over-year and Yes. including tend of certainly, But we're really half into mentioned in certain larger top benefit XX% we larger conversations having feel general. any positive the the year end the about we kind and importers, the with before, and but particular guidance range. we don't in employers towards to of times head

And So mentioned I'd I the say, overall, of some points that a positive. just again, that before.

I reducing on the in the average are with We Today, of differentiate think care. in And the we care. us impact can a greater shows confidence in that health that we've diabetes bad reducing anxiety about in their We've I cost XX% about but mentioned and to mindset help the about healthy that the program, on reducing stress as that approximately for benefit have and study ability increasing importers a retention, heart took data. could talked to moving we blood we past, cholesterol looking care of healthy a great the study with the past motivation. XX% their patients. that XX%. the benefit sugar the of today, take the of manage mentioned twice out recruitment cost than from to we great resilience of mind, and JAMA published path also on really And uncontrolled in controlled -- talked of talked impact basically patients and people's of their also

forward. well think positioning going I of our portends So all for that

really good about So it. we feel

And seasonally seasonality cost us remind be Thank you. you helpful. like quick expect the of ratio if kind Can that to That's dynamics insurance then stop Thanks. or the in look just dynamics Does What of the of a around year? watermark the tend quarter? just Medicare loss the do population? medical follow-up. within fourth low to XQ you each quarter kick you around

Yes.

of of ones higher expect QX fluctuations the terms generally slightly first here, expenses change obviously medical including over valuable in and could and the in sort of we cause But variants I of quarter there team that fourth speaking, year the QX. COVID think, would slightly near-term some are and lots here. lower

can something probably it's not is super to be going that margin, but it's a pronounced, expect. probably what it's However, you

Thank you.

Sarah question Barclays. from comes next Our from James

is Your line open.

Thank you.

at these future? the your some to a offering, in relationship payers it care expand with aspects. where the your starting in product with As respect to may of or go conversation cardio value-based you behavioral guys adding Is all are and change

that in Thanks a Sarah. and real I'd absolutely, positive sense. say, for Yes.

benefits conditions, patients. and with seeing acute. able the diabetes just them about are we for Talk employer. complex companies people to in the QX on most an in, now when patients we AIDS a XX-plus we're talked questions that intensively City, how past, costs last home your whether the We're managing is said here benefits And talk we that percent their at tool in for or also progressing from year New have, multiple, are with impact chronic seeing patients add These we're XX%. in example, been employers, multiple We've what about two At-Risk senior zero York can think I that a clinical our have complex about offer And one, also as nine One care, that and patients. managing for we HIV the And Medical HIV and we've roll our of for cohort past dependents. shared so number of ranked very retain. recruit here, about to XX% reduce perspective, out activation payers. great us we we've the MASH today in leveraging

step these things is are This you integrated are just a think And that of certainly, because right? primary not that problem, of fundamentally fee-for-service back, And salary point it longitudinal not we're definitely model, payers, I recognizing also I model, have can whole-person overstaffed throw but those the think of a model So kind are recognizing. where solutions. I kind is think payers employers solutions if we have care healthplan differences. definitely

Great. Thank you.

next with Draper Partners. comes Sandy from Our Guggenheim question

Your line open. is

Mitchell Hi. the taking Thanks question. on Sandy. This for is for

So commercial outlook. you outlook membership change million, but full your the year didn't raised by revenue $X

So out? against what Thanks. change just wondering the set initially you what's biggest

ways, in thinking of many commercial outperformed one year Yes. Great full question. sort to And we obviously revenue the for ways, well. guidance really on just face this as many our drivers about the In being QX. of I'm

year, the XX see think still had we going year, that's past. I And visits seen guidance the into that about the ago, in full we when reminder, directionally, a as we don't as quite we weeks for case. said gave the fast just as Just in-office return

more normal increase However, in March, contributed revenue outperformance to had a side. that return a in which, we many patterns office to see in utilization did the commercial we meaningful ways, the in meaningful on QX

through And sort year. call of the expecting to that

Great. you. Thank

question comes Hill next George Deutsche Bank. from with Our

Your open. line is

that good going taking -- the first the and I which I pick to sorry, answered, Good I'm I in I to the is, of in-person March imagine, thanks or willing side of the what the a you've taking Thanks seen utilization, If trend and you've kind ask, morning maybe end up. end to as ask like comment guess the for for could through flip guy talk the of starting was afternoon telehealth just just look from guys. you're from question. am going utilization is of the there kind you question on seen the about perspective? of you what January April? general health

the many is side. really flip ways, Yes. In it

that probably particularly, return to shift from certainly, continue big in a of frankly, the Yes, that's So are our quarter, definitely the that's so throughout more to person. And speak. that to have obviously member to a happening driver seen. much we and a back certainly dynamics of we digital number see fair the have pronounced we visits satisfaction, office, we've but seen the digitally,

now And guidance, a Would it a Omicron more you acquisition. the be love one, in as bulk [indiscernible]. I how or Number there's cycle? care share right COVID life partnership thinks the now market of just as about gave through about for to willing capability, And commentary still kind because you corporate one is through you it environment their tailwind think XXXX? a to kind companies we the have ones. of Okay. chatter is company was you two about headwind that of the conversations then, kind related about either last seeing uncertain the or guys the having, it the COVID, quick time guys of formal pretty where the you'd in delivery you Are looking Amir, tremendous any of had amount is as

for on related Yes. rest We the so to year, saw vaccines, I meaningful hand over Amir -- speak. direct a testing, COVID and We, I mean think don't COVID COVID drop here. QX. in your at before of this as I in question cetera, volumes, point factor necessarily COVID on the first it to et meaningfully this related return of off

year. depend We that revenue diminish believe more the of our see continue direct of could the going At-Risk very, into it is us? Are could hospitalizations? really testing throughout that it QX, tailwind which go to details, to be we And we a a now out. the That headwind contribution not that LLD right assume to the way to right? guidance rest play business. mode, back. other the be we not that's year. Are potential probably related going extent could So see does or going COVID come guidance more does, now of to And the the little any this going to on we'll to to a but very of one People in ways into on back for lockdown? lot back right COVID quickly go see our Obviously, different many going assume the does meaningful of rest are a that there

Yeah.

One the I I that's default and mean to growing. the States. making second think focused the what in the hopefully care path And think option on to and we're growing I for United of part Medical on doing question, your health into we're it

differentiated can digital whole needs. great and a you heard As address model in-person today, you've has the right, really that omni-channel will, hybrid, if person's

and about great work we're positioning the So feel our we doing.

comment. Thank you. I appreciate the

from comes David question next BTIG. Larsen with Our

is open. line Your

the XX% the for about Congratulations can in you little you Hi. on was ratio related? medical Medicare quarter. activity it tighten Just the you detail incremental up COVID talk a mean, bit give Was referral cost any Can business? that January. the high improvement good that? Like the COVID more on I patterns? largely Iora in did

additional would be is another we any And expect how that? effect? color next XX% very Just around improvement that sustainable Should helpful. quarter

Well, we're increasingly, a is the we great question. work doing. And about for Thanks this feel common organization. the Yeah.

program, you markets. will, that risk, also begun think, our ahead in As we've we've building really Home taking if now. and management And care our on expectations had I legacy mentioned on Medical integration, the and that is Medical are programs on from really, we've been built where Iora, One but the in past, One we expanding At of capabilities, is it's which technology really we our whether our like kernels

machine their past X:X learning to still conditions. So talked of as using to leveraged and reach never in great rising side. them to is ratio capturing appropriately digital probably workloads out we feel we models and senior into as so technology, at are And that's that we've they've it's in-person documentation, we health capabilities identify, that whether can into also, to digital the about proactively built our in-person our are which come built whether before, to patients really have model risk, coming the manage on that help

we opportunities us. believe those for great that So, are

certainly about. the overall spikes the to that continue think costs after I as we be performance. impact broad-based COVID-specific And talked able hospitalization, in improve quarter we believe reduction January, in pretty is will through the we to

manage Bjorn of you you have you as claims $X guidance medical course, expense the Of for if today, well. our million. care as care as then mentioned will, earlier, our add to margin increased we But and heard cohorts, as those margins ratios, as new you part by assumptions,

overall, very we about So, there. feel that think work I our good

be you in Great. are a MA medical And increased will say your to let's capture then or keep a we going from lot X% of see X%, rates that? to that cost X/X/XX, improvement they X% by the ratio? X% or Will or plan, able

planned up through. design on flowing what ends that lot Well, and remains I be of benefit to a still think seen

So, I say. to early think too it's

Okay. a and guess, Rishika [ph], well. as great Congrats done, I well quarter on

you. thank So,

Our next from question Brian Tanquilut with comes Jefferies.

Your is line open.

Brian. for Hey, for on A Slevin on the good Jack afternoon guys. ones of you. Congrats quick quarter. couple It's

I side your fee-for-service the patients Bjorn to there. comments on and make the want DCE I Medicare understood, just sure First, around

you patients those how the year, many number the you've if so, we that those, talking is us we're XXXX? be aligned go at patients a give fee-for-service going if in this are just So, look And that thought can on about? elected to those claims route to

Medical, certainly, calendar relationship, building we And do sort that, open might service XXXX, have providers comes enrollment that patients as I are going first going of experience us Some do as at them to building have say, the up mean, you that great might that then our voluntarily is you certainly, to provider. of my right? insights One we of there experience that are up And go align Medicare us? great a it expect to the provider. of be and join say, that we about still aligned. have hey, think we're is you, data pool but with and are to enrolling you be Others yes, I that pool on health the way is my Advantage our plans we with be flips then to experience into Yes. to that in what might them and others need are end to, have want I say, the yes,

go yes, that So, that's well a it different could be together. really in I many and to We work ways We couple can well vessel say, fit But of things. you the together. experience us.

Let's change model. -- for at-risk

and converting success over electing on what with, route? you maybe and that like had to got then, Okay, obviously, with aging look this those And Iora the helpful. as people we members and turn turning you broader the X/X/XX, Is P&L. around can couple thesis side. there with quarters That's thus of running early Thanks. commentary any into XX of on or it. sort But at looked you all less days right, some through Medicare, to a than of over the Iora here provide do any first to the far,

one sound Well, and maybe blended Yes. that's a to well. company blended I reiterate now teams, before. with few technology one said team, just comments what We're operations clinical really

to disentangle. will it side, medical on or side Iora the once increasingly, So be harder

legacy I One have taken clinical risk, capitated As risk, we in at-risk mentioned, Medical. global

that's but aging And have, side. we further those to clinical and of And opportunities have into So really XX. still believe if the in you've turn tremendous to we days under think well. manage we we're And early are patients the grow One I Medicare in who have seen in. or we age Medical they here in question, folks years the aged from presented we that are general, well, XX from the in on I think already this, and performing specific people through outcomes your

they for into and well very cared managed, us they're positions age at-risk So well relationships. well potentially as

it. Got Thanks.

with Ryan question Daniels William comes next from Our Blair.

Your line is open.

an taking on visits are you seeing increase up. time, question. kind utilization in Thanks I we for of kind more At guess, now guys of and Hey, the and same Ryan. in-office coming in-office guys. Nick Spiekhout have margin. for care more my

Just wondering there. little little if you color that bit? can Provide kind a describe dynamic of a

here. talk can I

being I volumes actually metrics. So we RVUs are of paying think like what sort the like of they sort basis, that and model is, we right? cost sort click other our into on are not benefit you're fees. fixed fixed employed the on being come fully or right? not salary building back offices, that work of volume they're seeing we a frankly, built, as paid are of providers It's It's paid

model see to rather making come extent, members you employing that's in, than colliders, do members, that as here by I we some time So by person, back of think type than really see, expansion that having by spending our model. built delicing, margin the as an by in into rather sort we them sure with more the them of Uber-doctor

I that's P&L. think the with the close revenues rest increase, P&L the in leverage the what of you see really see as you

healthcare believe have if but digitally We we We can enterprise them such can or the reach really model, issues, manage population, it's ongoing see model, an And earlier senior I we on-demand patients, if have right? the or a of high on can remotely, would whether quality they of engagement engagement, we questions And in-person. at-risk us the we power to just actually can out say we to need make see have whether can it's across them, longitudinally. to consumer population, these because back that relationships. metrics, we in commercial really manage come believe them why impact this but is this have transform robust we a have high around or have and they our why shows can can circling certainly, some

for Thanks Great. the color, guys.

This concludes back to over Amir the for question-and-answer any session. remarks. turn Rubin I'd the to you. call like Thank closing

be all. Thanks, Thanks, time. may with the you, great us we'll next fourth evening. today, everybody, you Well and a for joining see everyone. Have

This concludes today's program.

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