1Life Healthcare Inc (ONEM) 10-Q Quarterly Report November 2020

SAN FRANCISCO – November 10, 2020 – 1Life Healthcare, Inc. (One Medical) (Nasdaq: ONEM) today announced financial results for the third quarter ended September 30, 2020.

“We are pleased to have reached new heights in performance this quarter--with our membership surpassing half of a million members and quarterly total net revenue exceeding $100 million for the first time,” said Amir Dan Rubin, Chair & CEO of One Medical. “We are further seeing how One Medical’s human-centered and technology-powered model is delivering impacts for multiple key stakeholders, advancing our efforts to transform healthcare at scale.”

Financial Highlights for the Third Quarter 2020

All comparisons, unless otherwise noted, are to the three months ended September 30, 2019.

•

Membership count as of quarter-end was 511,000 compared to 397,000, a 29% increase.

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Net Revenue was $101.7 million compared to $69.6 million, a 46% increase.

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Care Margin was $42.9 million, or 42% of total net revenue; Loss from Operations was $10.8 million, or 11% of total net revenue.

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Adjusted EBITDA was positive $3.5 million, or 3% of total net revenue; Net Loss was $16.4 million, or 16% of total net revenue.

•

Cash and Short-term Marketable Securities as of quarter-end were $682.3 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 fourth quarter of 2020, we expect:

•

Ending Membership count in the range of 530,000 to 540,000;

•

Total Net Revenue in the range of $104 million to $109 million;

•

Care Margin in the range of $37 million to $42 million; and

•

Adjusted EBITDA in the range of a loss of $4 million to positive $1 million.

For the full year of 2020, we expect:

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Total Net Revenue in the range of $362 million to $367 million;

•

Care Margin in the range of $132 million to $137 million; and

•

Adjusted EBITDA in the range of a loss of $29 million to a loss of $24 million.

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 following information was filed by 1Life Healthcare Inc (ONEM) on Tuesday, November 10, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside 1Life Healthcare Inc's 10-Q Quarterly Report:

Financial - Shares Highlight
In addition, adjusted EBITDA has limitations as an analytical tool, including: although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and adjusted EBITDA does not reflect cash used for capital expenditures for such replacements or for new capital expenditures; adjusted EBITDA does not include the dilution that results from stock-based compensation or any cash outflows included in stock-based compensation, including from our purchases of shares of outstanding common stock; and adjusted EBITDA does not reflect interest expense on our debt or the cash requirements necessary to service interest or principal payments.

Revenue - Product Highlight
As a result, as net revenue increases due to improved pricing, which can result from, for example, higher net revenue per member under agreements with enterprise clients and health network partners, or when we provide services to more members without increasing our infrastructure or related costs, cost of care, exclusive of depreciation and amortization, as a percentage of net revenue typically decreases.
Financial - Expense Highlight
We expect our general and administrative expenses to increase over time due to the additional legal, accounting, insurance, investor relations and other costs that we will incur as a public company, as well as other costs associated with continuing to grow our business.
Financial - Expense Highlight
nm - not meaningful Interest expense increased $5.5 million from $0.1 million for the three months ended September 30, 2019 to $5.6 million for the three months ended September 30, 2020, and increased $7.3 million from $0.4 million for the nine months ended September 30, 2019 to $7.7 million for the nine months ended September 30, 2020, primarily due to amortization of the debt discount and issuance costs on our 2025 Notes issued in the second quarter of 2020.
Financial - Expense Highlight
A large portion of these costs are fixed relative to member utilization of our services, such as occupancy costs and insurance costs.
Revenue - Product
Sales and marketing expenses consist...Read more
Financial - Expense
During the nine months ended...Read more
Revenue - Product
The increase in deferred revenue...Read more
Other - Other
We review a number of...Read more
Financial - Expense
This increase was primarily due...Read more
Financial - Expense
As we open new offices,...Read more
Revenue - Product
The increased percentage of revenue...Read more
Legal - Other
In addition, we also incurred...Read more
Financial - Expense
Depreciation and Amortization Depreciation and...Read more
Financial - Expense
Depreciation and amortization expenses increased...Read more
Financial - Expense
Cost of care, exclusive of...Read more
Revenue - Product
We expect to hire additional...Read more
Revenue - Product
Since our inception, we have...Read more
Revenue - Product
The remaining increase in our...Read more
Financial - Expense
Cost of care, exclusive of...Read more
Financial - Expense
This increase was primarily due...Read more
Financial - Expense
Cost of care, exclusive of...Read more
Financial - Expense
Cost of care, exclusive of...Read more
Other - Other
We include adjusted EBITDA in...Read more
Revenue - Product
Membership revenue is recognized ratably...Read more
Other - Other
nm - not meaningful The...Read more
Revenue - Product
Our future capital requirements will...Read more
Financial - Expense
During the nine months ended...Read more
Revenue - Product
Net patient service revenue increased...Read more
Other - Other
The increase in accounts receivable...Read more
Other - Other
The increase in accounts receivable,...Read more
Revenue - Product
Net revenue from patient service...Read more
Revenue - Product
Net revenue from patient service...Read more
Financial - Income
We remeasured the redeemable convertible...Read more
Revenue - Product
All partnership revenue is recognized...Read more
Other - Other
Adjusted EBITDA is presented for...Read more
Other - Other
Our definition of adjusted EBITDA...Read more
Financial - Shares
The healthcare system's share of...Read more
Revenue - Product
This decrease was due to...Read more
Revenue - Product
This increase in net revenue...Read more
Revenue - Product
This increase in net revenue...Read more
Revenue - Product
The increase in membership revenue...Read more
Financial - Expense
The net increase in accounts...Read more
Financial - Expense
General and administrative expenses increased...Read more
Financial - Expense
General and administrative expenses increased...Read more
Financial - Expense
Net cash used in changes...Read more
Other - Other
Effective April 1, 2020, we...Read more
Revenue - Product
Net revenue increased $59.6 million,...Read more
Revenue - Product
Membership revenue increased $3.9 million,...Read more
Revenue - Product
Membership revenue increased $12.2 million,...Read more
Revenue - Product
These measures and practices reduced...Read more
Financial - Earnings
The following table provides a...Read more
Revenue - Product
Sales and marketing expenses also...Read more
Revenue - Product
Partnership revenue increased $23.1 million,...Read more
Revenue - Product
Partnership revenue increased $50.3 million,...Read more
Financial - Debt
As of September 30, 2020,...Read more
Revenue - Product
The increase in deferred revenue...Read more
Revenue - Product
The COVID-19 pandemic has impacted...Read more
Revenue - Product
(1) Includes stock-based compensation, as...Read more
Revenue - Product
We generate partnership revenue from...Read more
Other - Other
See Note 2, Summary of...Read more
Financial - Earnings
Other companies that present care...Read more
Financial - Expense
Interest expense consists of interest...Read more
Other - Other
During the three months ended...Read more
Revenue - Product
Net cash provided by changes...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

1Life Healthcare Inc provided additional information to their SEC Filing as exhibits

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Exhibit 32.2: Section 1350 Certification

Ticker: ONEM
CIK: 1404123
Form Type: 10-Q Quarterly Report
Accession Number: 0001564590-20-053050
Submitted to the SEC: Tue Nov 10 2020 5:20:50 PM EST
Accepted by the SEC: Tue Nov 10 2020
Period: Wednesday, September 30, 2020
Industry: Offices And Clinics Of Doctors Of Medicine