One Medical Exceeds Q2 Estimates and Introduces New Option for Telemedicine

• One Medical said Wednesday that it beat Wall Street earnings and revenue expectations for the second quarter, thanks to a surprisingly strong recovery in healthcare volumes following the COVID-19 pandemic outbreak earlier this month. I’m staying home. The company achieved net sales of $ 78 million, an 18% increase over the prior year.

• The main supply chain, which went public in January, announced that members grew 25% year-over-year to reach the top end of its board line. Executives told investors in an earnings call that they expected a particularly strong third quarter as patients seek more treatment than they delayed earlier this year due to the pandemic, but they do not expect this favorable wind to affect the fourth quarter.

• One Medical also announced the introduction of a new virtual option for people who live in areas where the business is not physically established, at a reduced price. It also said it will enter two new markets: Raleigh-Durham, North Carolina, and parts of Wisconsin, which means it will be present in at least 15 markets by the middle of next year.

The new virtual product called One Medical Now was born out of employers’ interest in national employees who wanted to provide employee benefits in areas without One Medical’s physical presence, executives said Wednesday. What could make it clear is that the coronavirus problem continues to plague the country and patients have resorted to telemedicine to avoid exposure.

CEO Amir Dan Rubin said, “This has allowed us to expand our brand, reach out to existing employers, and develop our relationships with new employees and our national customers.”

Analysts at SVB Leerink wrote in a note Thursday morning that the new service, other ancillary services, and “and ultimately cheaper operations will be the key to making the numbers work” for long-term forecasts.

They added that One Medical is not alone in its emerging field. One competitor, Oak Street Health, nearly doubled its share price on the first trading day of last week.

“We do not believe that [One Medical] has an impenetrable divide,” wrote analysts at SVB Leerink.

When office visits decreased in March due to home orders, One Medical implemented COVID-19 assistance and billable remote visits. He has performed on-demand symptom assessments, tests, and follow-ups and also has an on-site reintegration program.

Rubin said the company plans to provide COVID-19 treatments and vaccines when they become available.

Executives said the company received $ 2.4 million from the Coronavirus Economic Relief, Relief, and Security Act, which helped increase the service margin to $ 24.6 million, or 31 percent of net sales.

Operating loss was $ 28.7 million, or 37% of total net sales.

One Medical has slightly increased its underwriting forecasts for the third quarter. There are no full-year predictions for a membership measure that is expected to be between 505,000 and 515,000. The number of members in the second quarter was 475,000.

Chief Financial Officer Björn Thaler told investors that while COVID-19 continues to represent a volatile and unpredictable future, the company hopes its new services will improve its model.