According to a recent report, the global digital health market size is expected to grow from $103.1 billion at 25% CAGR to reach $385.8 billion by 2025. Digital health industry is the integration of emerging technology with wellness, education, living, and community to drive healthcare delivery quality and make medicine more personal and accurate. One Medical (NASDAQ: ONEM), also known as 1Life Healthcare, is among the leading primary care platforms in the country. One Medical went public earlier this year and has had a bumpy ride so far.
One Medical’s Financials
The current crisis has been a mixed bag for One Medical. With community shelter-in-place requirements in place, visits to primary care centers dropped while Covid-19 related medical check-ups grew. Despite these movements, One Medical’s Q1 revenues grew 25% to $78.8 million with patient and partnership revenues accounting for 81% of the revenues. Adjusted loss was $33.9 million or $0.40 per share, compared with a net loss of $6.7 million a year ago. The market was looking for a loss of $0.17 per share on revenues of $75 million.
Among key metrics, Membership count at the end of the quarter grew 25% over the year to 455,000.
For the second quarter, One Medical expects revenues of $56-$66 million with an EBITDA loss of $36-$26 million.
One Medical’s Covid Response
To address the current Covid-19 crisis, One Medical has stepped up its digital offerings. Its healthcare providers continue to see patients in offices where appropriate. As some places have begun to open up, it has started to schedule remote visits and the company is also working on site reentry screening programs across the provider network. To ensure health care while maintaining social distancing, it has conducted video chats and virtually followed up with patients on results and any care needs. It has advanced its platform to launch scheduled remote visits and expanded its virtual behavioral health solution.
As part of extending its digital solution, it has been providing synchronous video chats and asynchronous assessments and messaging. It embedded COVID-19 symptom assessments for members within its mobile app to provide for seamless screening. Its platform has been quickly assessing symptoms digitally, scheduling specimen collection where needed, and then helping set up follow ups on test results and care plans. At the end of the quarter, its digital platform was expanded to offer remote visits. Remote visits allow members to schedule billable video appointments with their primary care providers to support care and social distancing.
It also entered into partnerships with the mayors of New York City and San Francisco to support high-risk populations and other essential health workers. These partnerships allowed it to offer free screening and testing services while extending its community presence and brand awareness.
It advanced its clinical and digital integration with its new partner Mass General Brigham and has begun its launch efforts in Austin, Texas with Ascension Healthcare. In March this year, it launched in its newest market, Portland, Oregon, in partnership with Providence St.
To help organizations open up from their states of lockdowns, it launched the One Medical Healthy Together work site reentry program. The program supports employers as they transition employees back into shared environments by providing virtual screening capabilities, detailing clinical risk factors, and offering testing services and follow-up care as needed. It also expanded its services to take care of employee mental and emotional well-being during these times.
The market was not pleased with the increased losses during the quarter. Its stock fell 7% in the after-hours trading session. But it has recovered since and is trading at $38.87 with a market capitalization of $4.86 billion. The stock had listed earlier this year at $14. It had climbed to a high of $44.87 in June. Prior to listing, the company had raised $532.1 million in funding from investors including The Carlyle Group, Maverick Ventures, Redmile Group, Lifeforce Capital, GV, Oak Investment Partners, Benchmark, J.P. Morgan Asset Management, and Shares Post Investment Management. Its last round of funding was held in 2018 when it raised $350 million at a valuation of $1.5 billion.