1Life Healthcare, Inc. (One Medical) (Nasdaq: ONEM) today announced
financial results for the second quarter ended June 30, 2020.
“Our human-centered and technology-powered model is delivering
longitudinal care across digital and in-person settings, delighting
members with better health and better care while reducing costs,”
said Amir Dan Rubin, Chair & CEO of One
Medical. “We continued to show the power of our model in Q2,
delivering record membership additions, supporting employers
through digital health combined with in-person care and testing,
expanding into new markets, and growing our partnerships with
leading health networks.”
Financial Highlights for the Second Quarter
2020
All comparisons, unless otherwise noted, are to the three months
ended June 30, 2019.
- Membership count as of quarter-end was 475,000 compared to
379,000, a 25% increase.
- Net Revenue was $78.0 million compared to $66.2 million, an 18%
increase.
- Care Margin was $24.6 million, or 31% of total net revenue;
Loss from Operations was $28.7 million, or 37% of total net
revenue.
- Adjusted EBITDA was a loss of $15.2 million, or 19% of total
net revenue; Net Loss was $30.3 million, or 39% of total net
revenue.
- Cash and Short-term Marketable Securities as of quarter-end
were $664.4 million.
Financial Outlook
One Medical provides forward-looking guidance on membership
count, total net revenue, care margin, and adjusted EBITDA. Care
margin and adjusted EBITDA are non-GAAP measures.
For the third quarter of 2020, we expect:
- Ending Membership count in the range of 486,000 to
496,000;
- Total Net Revenue in the range of $84.0 million to $89.0
million;
- Care Margin in the range of $26.0 million to $31.0 million;
and
- Adjusted EBITDA in the range of a loss of $12.0 million to a
loss of $7.0 million.
For the full year of 2020, we expect:
- Ending Membership count in the range of 505,000 to
515,000.
Management has not provided net revenue, care margin, or
adjusted EBITDA guidance for the full year of 2020 because of
uncertainties around the duration and extent of the continued
COVID-19 pandemic and related community self-isolation practices
and any impact that these two items may have on the company’s
financial performance for full year 2020.
Management has not reconciled forward-looking non-GAAP care
margin and adjusted EBITDA to their most directly comparable GAAP
measures of loss from operations and net loss, respectively. This
is because we cannot predict with reasonable certainty the ultimate
outcome of certain GAAP components of such reconciliations,
including market-related assumptions that are not within our
control, or others that may arise, without unreasonable effort. For
these reasons, we are unable to assess the probable significance of
the unavailable information, which could materially impact the
amount of the future directly comparable GAAP measures. See below
for additional important disclosures regarding our non-GAAP
financial measures.
Quarterly Conference Call Details
The company will host a conference call to review the results
today, Wednesday, August 12, 2020 at 2:00 p.m. (PT) / 5:00 p.m.
(ET) to discuss its financial results. A live audio webcast and a
supplemental presentation will be available online at
https://investor.onemedical.com. The conference call can also be
accessed by dialing 1-800-258-1651 for U.S. participants, or
1-612-979-9928 for international participants, and referencing
conference ID 3165554. A replay of the call will be available via
webcast for on-demand listening shortly after the completion of the
call, at the same web link, and will remain available for
approximately 90 days.
Key Metrics and Non-GAAP Financial Measures
Members: a member is a person who has paid for
membership themselves or an employee or dependent whose membership
has been paid for by an enterprise client for at least one year and
who has registered with us. Members help drive membership revenue,
partnership revenue and patient service revenue. We may offer trial
memberships to enterprise clients, particularly for new
services. We do not include these employees as members until
we have an annual enterprise contract. While the COVID-19 pandemic
and related governmental and community responses have negatively
impacted our ability to generate revenue from our members compared
to prior periods, we believe growth in the number of members
remains a key indicator of the performance of our business. This
depends, in part, on our ability to successfully market our
services directly to consumers and to employers that are not yet
enterprise clients and our activation rate within existing clients.
While growth in the number of members is an important indicator of
expected revenue growth, it also informs our management of the
areas of our business that will require further investment to
support expected future member growth. Member numbers as of the end
of each period are rounded to the thousands.
Reconciliations of non-GAAP financial measures to the most
directly comparable financial results as determined in accordance
with GAAP are included at the end of this press release following
the accompanying financial data. We believe that these non-GAAP
financial measures, when taken together with the corresponding GAAP
financial measures, provide meaningful supplemental information
regarding our performance by excluding certain items that may not
be indicative of our business, results of operations, or outlook.
However, non-GAAP financial information is presented for
supplemental informational purposes only, has limitations as an
analytical tool and should not be considered in isolation or as a
substitute for financial information presented in accordance with
GAAP. In addition, other companies, including companies in our
industry, may calculate similarly-titled non-GAAP measures
differently or may use other measures to evaluate their
performance, all of which could reduce the usefulness of our
non-GAAP financial measures as tools for comparison.
Care Margin: we define care margin as loss from
operations excluding depreciation and amortization, general and
administrative expense and sales and marketing expense. We consider
care margin to be an important measure to monitor our performance,
specific to the direct costs of delivering care. We believe this
margin is useful to measure whether we are controlling our direct
expenses included in the provision of care sufficiently and whether
we are effectively pricing our services. We have provided below a
reconciliation of historical care margin to loss from operations,
its most directly comparable GAAP financial measure.
Adjusted EBITDA: we define adjusted EBITDA as
net loss excluding interest income, interest expense, depreciation
and amortization, stock-based compensation, change in the fair
value of our redeemable convertible preferred stock warrant
liability and provision (benefit) for income taxes. We report
adjusted EBITDA because it is an important measure upon which our
management assesses and believes investors should assess our
operating performance. We consider adjusted EBITDA to be an
important measure because it helps illustrate underlying trends in
our business and our historical operating performance on a more
consistent basis. We have provided below a reconciliation of
historical adjusted EBITDA to net loss, its most directly
comparable GAAP financial measure.
Available Information
One Medical intends to use its Company website (including its
Investor Relations website) as well as its Facebook, Twitter and
LinkedIn accounts as a means of disclosing material non-public
information and for complying with its disclosure obligations under
Regulation FD.
Forward-Looking Statements
This press release contains forward-looking statements about us
and our industry that involve substantial risks and uncertainties
and are based on our beliefs and assumptions and on information
currently available to us. All statements other than statements of
historical facts contained in this press release, including
statements regarding our future results of operations, financial
condition, business strategy and plans and objectives of management
for future operations, are forward-looking statements. In some
cases, you can identify forward-looking statements because they
contain words such as “anticipate,” “believe,” “could,” “estimate,”
“expect,” “intend,” “may,” “plan,” “potential,” “predict,”
“project,” “should,” “will,” or “would,” or the negative of these
words or other similar terms or expressions.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause our actual results,
performance or achievements to be materially different from any
future results, performance or achievements expressed or implied by
the forward-looking statements. Forward-looking statements
represent our beliefs and assumptions only as of the date of this
press release. These statements, and related risks,
uncertainties, factors and assumptions, include, but are not
limited to: the strength of the One Medical brand; member
satisfaction with our services and support; the effects of the
COVID-19 pandemic and related self-isolation and quarantine
measures on our business, revenue, future growth and results of
operations; anticipated membership growth and revenue potential
from our members; our ability to retain members; our ability to
successfully introduce and drive adoption of new products; changes
in the pricing we offer our members; our relationships with our
health network partners and enterprise clients and any changes to,
accommodations in or terminations of our contracts with the health
network partners or enterprise clients; our ability to improve cost
of care and margins, including timing and expenses of new office
openings and entry into new geographic markets; changes in laws or
regulations; our involvement in litigation, including medical
malpractice claims and consumer class actions; any governmental
investigations or inquiries into or challenges to our relationships
with the One Medical PCs under the administrative services
agreements; our strategic plan; our financial outlook; our focus
areas for investment and our investments; and our overall business
trajectory. These risks are not exhaustive. Except as
required by law, we assume no obligation to update these
forward-looking statements, or to update the reasons actual results
could differ materially from those anticipated in the
forward-looking statements, even if new information becomes
available in the future. Further information on factors that could
cause actual results to differ materially from the results
anticipated by our forward-looking statements is included in the
reports we have filed or will file with the Securities and Exchange
Commission, including our Quarterly Report on Form 10-Q for the
quarter ended June 30, 2020. These filings, when available, are
available on the investor relations section of our website at
investor.onemedical.com and on the SEC’s website at
www.sec.gov.
About One Medical
One Medical is a membership-based and technology-powered primary
care platform with seamless digital health and inviting in-office
care, convenient to where people work, shop, live, and click. Our
vision is to delight millions of members with better health and
better care while reducing costs. Our mission is to transform
health care for all through our human-centered, technology-powered
model.
Headquartered in San Francisco, 1Life Healthcare, Inc. is the
administrative and managerial services company for the affiliated
One Medical physician owned professional corporations that deliver
medical services in-office and virtually. 1Life and the One Medical
entities do business under the “One Medical” brand.
Investor Contacts:Rose Salzwedel, One
MedicalDirector of Investor
Relationsinvestor@onemedical.com (206) 331-2211
WestwickeBob East or Asher Dewhurst(443)
223-0500onemedical@westwicke.com
Media Contact:Kristina Skinner, One
MedicalDirector of External
CommunicationsPress@onemedical.com 650-743-5187
|
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(Amounts in thousands, except share and
per share amounts)(Unaudited) |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue |
|
$ |
78,000 |
|
|
$ |
66,233 |
|
|
$ |
156,756 |
|
|
$ |
129,243 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of care, exclusive of depreciation and amortization shown
separately below |
|
|
53,450 |
|
|
|
39,386 |
|
|
|
104,999 |
|
|
|
77,166 |
|
Sales and marketing (1) |
|
|
9,777 |
|
|
|
8,091 |
|
|
|
20,933 |
|
|
|
16,366 |
|
General and administrative (1) |
|
|
38,311 |
|
|
|
26,970 |
|
|
|
78,177 |
|
|
|
49,389 |
|
Depreciation and amortization |
|
|
5,175 |
|
|
|
3,096 |
|
|
|
10,388 |
|
|
|
5,795 |
|
Total operating expenses |
|
|
106,713 |
|
|
|
77,543 |
|
|
|
214,497 |
|
|
|
148,716 |
|
Loss from operations |
|
|
(28,713 |
) |
|
|
(11,310 |
) |
|
|
(57,741 |
) |
|
|
(19,473 |
) |
Other income (expense), net: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
366 |
|
|
|
1,242 |
|
|
|
1,400 |
|
|
|
2,589 |
|
Interest expense |
|
|
(1,976 |
) |
|
|
(131 |
) |
|
|
(2,029 |
) |
|
|
(286 |
) |
Change in fair value of redeemable convertible preferred stock
warrant liability |
|
|
— |
|
|
|
(1,273 |
) |
|
|
(6,560 |
) |
|
|
(1,336 |
) |
Total other income (expense), net |
|
|
(1,610 |
) |
|
|
(162 |
) |
|
|
(7,189 |
) |
|
|
967 |
|
Loss before income taxes |
|
|
(30,323 |
) |
|
|
(11,472 |
) |
|
|
(64,930 |
) |
|
|
(18,506 |
) |
Provision (benefit) for income
taxes |
|
|
(22 |
) |
|
|
16 |
|
|
|
(72 |
) |
|
|
26 |
|
Net loss |
|
|
(30,301 |
) |
|
|
(11,488 |
) |
|
|
(64,858 |
) |
|
|
(18,532 |
) |
Less: Net loss attributable to noncontrolling interest |
|
|
— |
|
|
|
(287 |
) |
|
|
(704 |
) |
|
|
(661 |
) |
Net loss attributable to 1Life
Healthcare, Inc. stockholders |
|
$ |
(30,301 |
) |
|
$ |
(11,201 |
) |
|
$ |
(64,154 |
) |
|
$ |
(17,871 |
) |
Net loss per share attributable
to 1Life Healthcare, Inc. stockholders — basic and
diluted |
|
$ |
(0.24 |
) |
|
$ |
(0.61 |
) |
|
$ |
(0.61 |
) |
|
$ |
(0.98 |
) |
Weighted average common shares
outstanding — basic and diluted |
|
|
126,150,347 |
|
|
|
18,365,559 |
|
|
|
105,517,206 |
|
|
|
18,285,582 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes stock-based
compensation, as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
Sales and marketing |
|
$ |
668 |
|
|
$ |
151 |
|
|
$ |
1,268 |
|
|
$ |
462 |
|
General and administrative |
|
|
7,695 |
|
|
|
3,239 |
|
|
|
17,420 |
|
|
|
5,882 |
|
Total |
|
$ |
8,363 |
|
|
$ |
3,390 |
|
|
$ |
18,688 |
|
|
$ |
6,344 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components of Net
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
Net revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net patient service revenue |
|
$ |
23,927 |
|
|
$ |
34,882 |
|
|
$ |
58,013 |
|
|
$ |
68,428 |
|
Partnership revenue |
|
|
33,993 |
|
|
|
18,760 |
|
|
|
63,448 |
|
|
|
36,218 |
|
Total net patient service and partnership revenue |
|
|
57,920 |
|
|
|
53,642 |
|
|
|
121,461 |
|
|
|
104,646 |
|
Membership revenue |
|
|
17,680 |
|
|
|
12,591 |
|
|
|
32,895 |
|
|
|
24,597 |
|
Grant income |
|
|
2,400 |
|
|
|
- |
|
|
|
2,400 |
|
|
|
- |
|
Net revenue |
|
$ |
78,000 |
|
|
$ |
66,233 |
|
|
$ |
156,756 |
|
|
$ |
129,243 |
|
Statements of Operations Data as a Percentage of Net
Revenue: |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
Net revenue |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of care, exclusive of depreciation and amortization shown
separately below |
|
|
69 |
% |
|
|
59 |
% |
|
|
67 |
% |
|
|
60 |
% |
Sales and marketing (1) |
|
|
13 |
% |
|
|
12 |
% |
|
|
13 |
% |
|
|
13 |
% |
General and administrative (1) |
|
|
49 |
% |
|
|
41 |
% |
|
|
50 |
% |
|
|
38 |
% |
Depreciation and amortization |
|
|
7 |
% |
|
|
5 |
% |
|
|
7 |
% |
|
|
4 |
% |
Total operating expenses |
|
|
137 |
% |
|
|
117 |
% |
|
|
137 |
% |
|
|
115 |
% |
Loss from operations |
|
|
-37 |
% |
|
|
-17 |
% |
|
|
-37 |
% |
|
|
-15 |
% |
Other income (expense), net: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
0 |
% |
|
|
2 |
% |
|
|
1 |
% |
|
|
2 |
% |
Interest expense |
|
|
-3 |
% |
|
|
0 |
% |
|
|
-1 |
% |
|
|
0 |
% |
Change in fair value of redeemable convertible preferred stock
warrant liability |
|
|
0 |
% |
|
|
-2 |
% |
|
|
-4 |
% |
|
|
-1 |
% |
Total other income (expense), net |
|
|
-2 |
% |
|
|
0 |
% |
|
|
-5 |
% |
|
|
1 |
% |
Loss before income taxes |
|
|
-39 |
% |
|
|
-17 |
% |
|
|
-41 |
% |
|
|
-14 |
% |
Provision (benefit) for income
taxes |
|
|
0 |
% |
|
|
0 |
% |
|
|
0 |
% |
|
|
0 |
% |
Net loss |
|
|
-39 |
% |
|
|
-17 |
% |
|
|
-41 |
% |
|
|
-14 |
% |
Less: Net loss attributable to noncontrolling interests |
|
|
0 |
% |
|
|
0 |
% |
|
|
0 |
% |
|
|
0 |
% |
Net loss attributable to 1Life
Healthcare, Inc. stockholders |
|
|
-39 |
% |
|
|
-17 |
% |
|
|
-41 |
% |
|
|
-14 |
% |
(1) Includes stock-based compensation, as follows: |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
Sales and marketing |
|
|
1 |
% |
|
|
0 |
% |
|
|
1 |
% |
|
|
0 |
% |
General and administrative |
|
|
10 |
% |
|
|
5 |
% |
|
|
11 |
% |
|
|
5 |
% |
Total |
|
|
11 |
% |
|
|
5 |
% |
|
|
12 |
% |
|
|
5 |
% |
Components of Net Revenue: |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
Net revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net patient service revenue |
|
|
31 |
% |
|
|
53 |
% |
|
|
37 |
% |
|
|
53 |
% |
Partnership revenue |
|
|
44 |
% |
|
|
28 |
% |
|
|
40 |
% |
|
|
28 |
% |
Total net patient service and partnership revenue |
|
|
74 |
% |
|
|
81 |
% |
|
|
77 |
% |
|
|
81 |
% |
Membership revenue |
|
|
23 |
% |
|
|
19 |
% |
|
|
21 |
% |
|
|
19 |
% |
Grant income |
|
|
3 |
% |
|
|
0 |
% |
|
|
2 |
% |
|
|
0 |
% |
Net revenue |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
*Percentages may not sum due to rounding.
|
CONDENSED CONSOLIDATED BALANCE
SHEETS(Amounts in thousands, except share
amounts)(Unaudited) |
|
|
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
300,675 |
|
|
$ |
27,390 |
|
Short-term marketable securities |
|
|
363,736 |
|
|
|
119,146 |
|
Accounts receivable, net |
|
|
46,211 |
|
|
|
33,601 |
|
Inventories |
|
|
3,099 |
|
|
|
3,192 |
|
Prepaid expenses and other current assets |
|
|
20,895 |
|
|
|
16,708 |
|
Total current assets |
|
|
734,616 |
|
|
|
200,037 |
|
Restricted cash |
|
|
2,014 |
|
|
|
1,922 |
|
Property and equipment, net |
|
|
112,922 |
|
|
|
90,716 |
|
Right-of-use assets |
|
|
130,554 |
|
|
|
108,046 |
|
Intangible assets, net |
|
|
— |
|
|
|
23 |
|
Goodwill |
|
|
21,301 |
|
|
|
21,301 |
|
Other assets |
|
|
4,853 |
|
|
|
8,249 |
|
Total assets |
|
$ |
1,006,260 |
|
|
$ |
430,294 |
|
Liabilities, Redeemable
Convertible Preferred Stock and Equity (Deficit) |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
9,822 |
|
|
$ |
13,853 |
|
Accrued expenses |
|
|
33,511 |
|
|
|
24,863 |
|
Deferred revenue, current |
|
|
36,666 |
|
|
|
27,024 |
|
Operating lease liabilities, current |
|
|
15,090 |
|
|
|
12,575 |
|
Notes payable, current |
|
|
1,098 |
|
|
|
3,282 |
|
Other current liabilities |
|
|
1,719 |
|
|
|
1,884 |
|
Total current liabilities |
|
|
97,906 |
|
|
|
83,481 |
|
Operating lease liabilities,
non-current |
|
|
145,764 |
|
|
|
120,497 |
|
Convertible senior notes |
|
|
234,617 |
|
|
|
— |
|
Redeemable convertible preferred
stock warrant liability |
|
|
— |
|
|
|
7,220 |
|
Deferred revenue,
non-current |
|
|
6,409 |
|
|
|
— |
|
Other non-current
liabilities |
|
|
3,356 |
|
|
|
639 |
|
Total liabilities |
|
|
488,052 |
|
|
|
211,837 |
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
Redeemable convertible preferred
stock (Series A, B, C, D, E, F, G, H and I), $0.001 par value; 0
and 89,338,425 shares authorized as of June 30, 2020 and
December 31, 2019, respectively; 0 and 86,251,669 shares
issued and outstanding as of June 30, 2020 and December 31, 2019,
respectively; aggregate liquidation preference of $0 and
$405,585 as of June 30, 2020 and December 31,
2019, respectively |
|
|
— |
|
|
|
402,488 |
|
Equity (deficit): |
|
|
|
|
|
|
|
|
Common stock, $0.001 par value, 1,000,000,000 and 150,000,000
shares authorized as of June 30, 2020 and December 31, 2019,
respectively; 126,205,538 and 18,951,416 shares issued and
outstanding as of June 30, 2020 and December 31, 2019,
respectively |
|
|
126 |
|
|
|
19 |
|
Additional paid-in capital |
|
|
863,273 |
|
|
|
93,945 |
|
Accumulated deficit |
|
|
(345,222 |
) |
|
|
(281,068 |
) |
Accumulated other comprehensive income |
|
|
31 |
|
|
|
38 |
|
Total stockholders' equity (deficit) attributable to 1Life
Healthcare, Inc. Stockholders |
|
|
518,208 |
|
|
|
(187,066 |
) |
Noncontrolling interest |
|
|
— |
|
|
|
3,035 |
|
Total equity (deficit) |
|
|
518,208 |
|
|
|
(184,031 |
) |
Total liabilities, redeemable convertible preferred stock and
equity (deficit) |
|
$ |
1,006,260 |
|
|
$ |
430,294 |
|
|
|
|
|
|
|
|
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS(Amounts in
thousands)(Unaudited) |
|
|
|
|
|
|
Six Months Ended |
|
|
June 30, |
|
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
Cash flows from operating
activities: |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(64,858 |
) |
|
$ |
(18,532 |
) |
Adjustments to reconcile net loss
to net cash used in operating activities: |
|
|
|
|
|
|
|
|
Provision for bad debts |
|
|
213 |
|
|
|
- |
|
Depreciation and amortization |
|
|
10,388 |
|
|
|
5,795 |
|
Amortization of debt discount and issuance costs |
|
|
1,135 |
|
|
|
50 |
|
Accretion of discounts and amortization of premiums on short-term
marketable securities, net |
|
|
(520 |
) |
|
|
(2,030 |
) |
Change in fair value of redeemable convertible preferred stock
warrant liability |
|
|
6,560 |
|
|
|
1,336 |
|
Amortization of right-of-use assets |
|
|
6,575 |
|
|
|
4,927 |
|
Stock-based compensation |
|
|
18,688 |
|
|
|
6,344 |
|
Other non-cash items |
|
|
(10 |
) |
|
|
33 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable, net |
|
|
(13,591 |
) |
|
|
(14,954 |
) |
Inventories |
|
|
93 |
|
|
|
789 |
|
Prepaid expenses and other current assets |
|
|
1,118 |
|
|
|
(1,226 |
) |
Other assets |
|
|
(250 |
) |
|
|
(306 |
) |
Accounts payable |
|
|
(2,110 |
) |
|
|
(671 |
) |
Accrued expenses |
|
|
12,893 |
|
|
|
823 |
|
Deferred revenue |
|
|
16,051 |
|
|
|
3,965 |
|
Operating lease liabilities |
|
|
(5,132 |
) |
|
|
(3,395 |
) |
Other liabilities |
|
|
2,652 |
|
|
|
2,655 |
|
Net cash used in operating activities |
|
|
(10,105 |
) |
|
|
(14,397 |
) |
Cash flows from investing
activities: |
|
|
|
|
|
|
|
|
Purchases of property and
equipment, net |
|
|
(39,554 |
) |
|
|
(20,692 |
) |
Purchases of short-term
marketable securities |
|
|
(367,367 |
) |
|
|
(149,973 |
) |
Maturities of short-term
marketable securities |
|
|
123,314 |
|
|
|
208,100 |
|
VIE deconsolidation |
|
|
(810 |
) |
|
|
- |
|
Net cash (used in) provided by investing activities |
|
|
(284,417 |
) |
|
|
37,435 |
|
Cash flows from financing
activities: |
|
|
|
|
|
|
|
|
Proceeds from issuance of
convertible senior notes |
|
|
316,250 |
|
|
|
- |
|
Payment of convertible senior
notes issuance costs |
|
|
(8,756 |
) |
|
|
- |
|
Proceeds from initial public
offering |
|
|
281,750 |
|
|
|
- |
|
Payment of underwriting discount
and commissions and offering costs |
|
|
(21,322 |
) |
|
|
- |
|
Proceeds from the exercise of
stock options |
|
|
2,096 |
|
|
|
1,272 |
|
Proceeds from the exercise of
redeemable convertible preferred and common stock warrants |
|
|
110 |
|
|
|
- |
|
Repayment of notes payable |
|
|
(2,200 |
) |
|
|
(2,200 |
) |
Payment of principal portion of
finance lease liability |
|
|
(29 |
) |
|
|
- |
|
Net cash provided by (used in)
financing activities |
|
|
567,899 |
|
|
|
(928 |
) |
Net increase in cash,
cash equivalents and restricted cash |
|
|
273,377 |
|
|
|
22,110 |
|
Cash, cash equivalents and
restricted cash at beginning of period |
|
|
29,329 |
|
|
|
38,656 |
|
Cash, cash equivalents and
restricted cash at end of period |
|
$ |
302,706 |
|
|
$ |
60,766 |
|
Supplemental disclosure
of cash flow information: |
|
|
|
|
|
|
|
|
Cash paid for interest |
|
$ |
76 |
|
|
$ |
250 |
|
Supplemental disclosure
of non-cash investing and financing activities: |
|
|
|
|
|
|
|
|
Purchases of property and
equipment included in accounts payable and accrued expenses |
|
$ |
3,620 |
|
|
$ |
8,317 |
|
Issuance costs in connection to
convertible senior notes included in accounts payable and accrued
expenses |
|
$ |
625 |
|
|
$ |
- |
|
Reimbursement of secondary
offering costs in prepaid expenses and other current assets |
|
$ |
784 |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
Select Metrics (As of Period End) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
|
2020 |
|
2020 |
|
2019 |
|
2019 |
|
2019 |
|
2019 |
|
2018 |
|
2018 |
Members |
|
|
475,000 |
|
|
|
455,000 |
|
|
|
422,000 |
|
|
|
397,000 |
|
|
|
379,000 |
|
|
|
364,000 |
|
|
|
346,000 |
|
|
|
323,000 |
|
Offices |
|
|
96 |
|
|
|
92 |
|
|
|
83 |
|
|
|
77 |
|
|
|
71 |
|
|
|
71 |
|
|
|
71 |
|
|
|
70 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF LOSS FROM OPERATIONS TO CARE
MARGIN |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
(in thousands) |
Loss from operations |
|
$ |
(28,713 |
) |
|
$ |
(11,310 |
) |
|
$ |
(57,741 |
) |
|
$ |
(19,473 |
) |
Sales and marketing |
|
|
9,777 |
|
|
|
8,091 |
|
|
|
20,933 |
|
|
|
16,366 |
|
General and administrative |
|
|
38,311 |
|
|
|
26,970 |
|
|
|
78,177 |
|
|
|
49,389 |
|
Depreciation and amortization |
|
|
5,175 |
|
|
|
3,096 |
|
|
|
10,388 |
|
|
|
5,795 |
|
Care
margin |
|
$ |
24,550 |
|
|
$ |
26,847 |
|
|
$ |
51,757 |
|
|
$ |
52,077 |
|
Care margin as a percentage of
net revenue |
|
|
31 |
% |
|
|
41 |
% |
|
|
33 |
% |
|
|
40 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
(in thousands) |
Net loss |
|
$ |
(30,301 |
) |
|
$ |
(11,488 |
) |
|
$ |
(64,858 |
) |
|
$ |
(18,532 |
) |
Interest income |
|
|
(366 |
) |
|
|
(1,242 |
) |
|
|
(1,400 |
) |
|
|
(2,589 |
) |
Interest expense |
|
|
1,976 |
|
|
|
131 |
|
|
|
2,029 |
|
|
|
286 |
|
Depreciation and
amortization |
|
|
5,175 |
|
|
|
3,096 |
|
|
|
10,388 |
|
|
|
5,795 |
|
Stock-based compensation |
|
|
8,363 |
|
|
|
3,390 |
|
|
|
18,688 |
|
|
|
6,344 |
|
Change in fair value of
redeemable convertible preferred stock warrant liability |
|
|
- |
|
|
|
1,273 |
|
|
|
6,560 |
|
|
|
1,336 |
|
Provision (benefit) for income
taxes |
|
|
(22 |
) |
|
|
16 |
|
|
|
(72 |
) |
|
|
26 |
|
Adjusted
EBITDA |
|
$ |
(15,175 |
) |
|
$ |
(4,824 |
) |
|
$ |
(28,665 |
) |
|
$ |
(7,334 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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