Oscar Health Inc Reports Financial Results for Q2 2024
Intellectia.AI Updated: 2024-08-08
Oscar Health, Inc. Reports Financial Results for Q2 2024
Oscar Health, Inc. ("Oscar" or the "Company") (NYSE:OSCR), a leading healthcare technology company, announced its financial results for the second quarter ended June 30, 2024.
Key Financial Metrics
| Metric | Current Quarter | Year-over-Year (YoY) | Consensus Estimates |
|---|---|---|---|
| Revenue | $2.2 billion | +46% | $2.15 billion |
| Diluted Earnings Per Share (EPS) | $0.20 | Not Provided | $0.16 |
| Net Income | $56.2 million | +$71.7 million | Not Provided |
| Adjusted EBITDA | $104.1 million | +$68.6 million | Not Provided |
Oscar exhibited robust financial performance in the second quarter of 2024, beating revenue and EPS consensus estimates. Revenue increased by 46% YoY to $2.2 billion, driven by higher membership and rate increases. Net income substantially improved, reflecting a $71.7 million YoY gain to $56.2 million. Adjusted EBITDA also saw significant gains, rising by $68.6 million YoY to $104.1 million.
Revenue Performance by Segment
| Segment | Revenue | Previous Guidance |
|---|---|---|
| Total Revenue | $2.2 billion | No Previous Guidance |
Oscar saw notable revenue performance, largely attributed to higher membership and rate increases. Though risk adjustments as a percentage of premiums tempered some gains, overall results exceeded expectations.
Operational Metrics
| Metric | Value | YoY Improvement |
|---|---|---|
| Medical Loss Ratio | 79.0% | +90 bps |
| SG&A Expense Ratio | 19.6% | +260 bps |
The significant improvements in the Medical Loss Ratio (MLR) and the SG&A Expense Ratio underscore the company's efficient operational management.
Comments from Company's Officers
Mark Bertolini, CEO of Oscar Health, noted, "Oscar reported strong second quarter results, closing out the best six months in the company's history. We continued to report robust revenue growth, improved operating margin, and strong bottom line performance. Based on our outperformance in the first half of the year, we updated our full-year 2024 guidance. We are well-positioned to deliver on our target for Adjusted EBITDA profitability this year."
Forward Guidance
Oscar has updated its full-year 2024 outlook due to better-than-expected first-half performance. The Company now projects: - Revenue: $9.0 billion to $9.1 billion (previously $8.3 billion to $8.4 billion). - Adjusted EBITDA: $160 million to $210 million (previously $125 million to $175 million). - SG&A Expense Ratio: 19.75% to 20.25%. - Medical Loss Ratio: 80.5% to 81.5%.
Stock Price Movement
Following the earnings release, Oscar's stock price increased by approximately 3.1%, reflecting positive market sentiment towards the company's strong financial performance and raised guidance.
Oscar's strong second quarter demonstrates its ability to leverage its technology platform for profitable growth, positioning it favorably for the remainder of the year.
