1Life Healthcare, Inc.

Ladies and gentlemen, thank you for standing by, and welcome to the One Medical First Quarter 2021 Earnings Conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask the question during this session, you will need to press star then one on your telephone. If you require any further assistance, please press star then zero. I would now like to hand the conference over to your speaker for today. Ro Salsweedle, Head of Investor Relations, you may begin.

Thank you, operator. Hello, everyone, and welcome to One Medical's fiscal 2021 first quarter earnings call. I am joined today by Amir Dan Rubin, Chair and CEO of One Medical, and Bjorn Thaler, Chief Financial Officer of One Medical. A complete disclosure of our results can be found in our press release issued earlier today, as well as in our related form 8K, all of which are available on our website at investor.onemedical.com. As a reminder, today's call is being recorded, and a replay will be available on our website. As part of our comments today, we will make forward-looking statements. These statements are based on management's current views, expectations, and assumptions. and are subject to multiple risks and uncertainties. Actual results may differ materially, and we disclaim any obligation to update any forward-looking statements or outlook. Please refer to the risk factors in our most recent annual report as updated from time to time by our other reports and filings with the SEC, including our quarterly report. We believe that the COVID-19 pandemic creates particular complexity when it comes to providing a forward-looking view of the business. and we are providing our guidance on a good, safe basis per recent SEC recommendations. We would like to specifically caution investors that our future performance will be harder to predict for the foreseeable future. Our forward-looking statements are based on assumptions that we believe to be reasonable as of today's date, May 12th, 2021. Information contained in today's statements should not be relied upon as representing our estimates as of any subsequent date. Of note, it is one medical policy to neither reiterate nor adjust the financial guidance provided on today's call unless it is also done through a public disclosure, such as a press release or through the filing of a Form 8K. Today, we will discuss certain non-GAAP metrics that we believe aid in the understanding of our financial results. A historical reconciliation to comparable GAAP metrics can be found in today's earnings release. Finally, during the call, we may offer incremental metrics to provide greater insight into the dynamic of our business. These details may be one-time in nature, and we may or may not provide updates in the future. And with that, I shall turn the call over to Amir and Bjorn for their prepared remarks and to take your questions.

Thank you, everyone, for joining us. Today, we are pleased to share results from our first quarter and update you on how we continue to perform, innovate, and grow. We continued our strong financial performance in Q1, as our human-centered and technology-powered model continues to deliver results for a growing number of employers and consumers. We saw a record number of net new membership additions in the quarter as our dedicated team continued to serve our members and communities with service-oriented and value-based high-quality care. Through our team's commitment to innovate, we share additional proof points this quarter on how we can reduce the total cost of care. We also continue to grow by attracting and aligning with a broad set of distinguished employers and health network partners who share our vision in transforming healthcare. All of these developments are reflected in our strong financial results and further build upon our extreme enthusiasm for the opportunities ahead for our organization. Starting with our performance, we ended Q1 with 598,000 members, growing our membership base 31% year over year, Q1 was our strongest quarter ever of net new membership addition, as we added 49,000 members during the quarter, and as we have added more than 140,000 members over the past 12 months. We delivered $121 million in Q1 net revenue, which was up 54% year over year. We delivered Q1 care margin of $51 million, or 42% of net revenue, while at the same time investing in our business, and we delivered Q1 adjusted EBITDA of positive $4.8 million, highlighting the leverage inherent in our model. These results showcase our momentum and value proposition in the market. In addition to delivering strong financial results, our dedicated team members have continued to perform by delivering outstanding service and care to our members, clients, and communities. This has included providing on-demand digital health, scheduled remote visits, and convenient in-person care and testing. We have also continued to serve our communities with COVID-19 vaccinations in many of our markets. Our Healthy Together program has supported employers as they evaluate return to workplace approaches. We've also been able to serve employers across the country with our nationwide One Medical Now digital health services. By serving as a longitudinal system of care for our members, we've continued to support members' ongoing health needs through both remote and in-person care for acute needs, chronic disease management, cancer screenings, LGBTQ plus care, women's health, reproductive health, sexual wellness, behavioral health, and other population health conditions. We have continued to extend into caring for the whole family by growing our One Medical for Kids pediatric services and into broader mental health needs through our One Medical mindset behavioral health solutions. And we have also continued to coordinate care across the continuum of primary care and specialty health network setting to own the complexity of navigating care for our members. In parallel, we've also continued to innovate by further demonstrating our model's impact on reducing healthcare costs. Our approach leverages our technology platform along with our own salaried clinical team of virtual and in-office providers to better reach out to patients with gaps in care, to better support chronic condition care, and to better coordinate specialty care when needed through clinical and digital interfaces with health network partners. For example, performance data from a large national health plan for one of our markets demonstrated that during the last two quarters, one medical outperformed reported trends in that market. The health plan's data showed that on average, we reduced the total cost of care for our members. through reductions in outpatient, professional, inpatient, and pharmacy costs. We believe the ability of our model to both delight members and show reductions in the total cost of care demonstrates One Medical's differentiated value proposition and how we are transforming healthcare. As we delivered new heights in performance and advanced our value-based innovation, we also continued our strong growth. Our demonstrated track record of delighting members and helping manage healthcare costs continues to open new doors for growth with an expanding set of diverse employers and premier partners. In Q1, we began new relationships with organizations and industries across financial services, healthcare, real estate, manufacturing, professional services, telecommunications, retail, and nonprofit sectors. We believe we are uniquely serving employers with a platform that combines 24-7 nationwide inbound and outbound telemedicine and population health, with our own salaried providers, along with convenient in-person care and testing, behavioral health integrated into primary care for whole person care, pediatric services for whole family care, and coordination of specialty care with our partners. We see that our multimodal care model, coupled with our breadth and depth of services and value-based care, is a strong differentiator in the market. In addition to growing alongside employers, we continue to see long runways for expansion as we continue growing our market presence and our health network partnerships. As shared previously, we plan on expanding into Columbus, Ohio, Houston, Texas, Milwaukee, Wisconsin, and Raleigh-Durham, North Carolina, alongside premier health network partners. Also, we were pleased to recently announce plans to enter South Florida in partnership with the University of Miami Health System. And today, we're pleased to announce that we will be entering into the Dallas-Fort Worth, Texas metropolitan area in partnership with Baylor Scott & White Health System. Our market expansions provide outstanding opportunities to grow our enterprise and consumer enrollment. Furthermore, our alignment with distinguished partners allows us to make impactful progress in transforming healthcare by building a more clinically and digitally connected healthcare ecosystem. that can deliver more highly coordinated care with greater levels of value. We also continue extending our health network partnership approaches, and just last week announced a new partnership with Pareto Health to bring innovative healthcare solutions to Pareto's customer base of over 1,400 employers nationwide. Together, we aim to improve employee well-being and support employers in managing healthcare costs through engagement in our modernized primary care model. We look forward to the opportunity to serve Pareto's employer clients, leveraging our experience with more than 8,000 employers today. As part of this partnership, we are excited to also expand our in-person presence in the Midwest and Southeast to serve some of Pareto's clients in Alabama and Kansas City. With the addition of these new markets, we are on track to go from nine in-person markets at the time of our IPO last year to 22 in-person markets. Beyond the reach of our 24-7 nationwide employer digital health solution, these 22 markets provide us an opportunity to deliver multimodal longitudinal care in markets representing nearly 40% of the U.S. commercially insured population. In closing, this quarter, we advanced how we perform, innovate, and grow. Our performance to start the year has been strong, and we remain on track to deliver a great FY21 in line with our initial guidance. Our team continues to deliver impactful care to 598,000 members as of Q1. We are innovating through our technology platform and clinical model, advancing better health outcomes and better care experiences while also reducing healthcare costs. And we are growing. Our model's unique ability to delight members and reduce healthcare costs is providing a growing number of opportunities as multiple key stakeholders see how we can transform healthcare at scale. We continue to grow our nationwide digital health services, and with aligned partners for value-based and coordinated care, we are on track to expand our multimodal model into 22 markets. We thank all of you for joining our call today and for your continued partnership in our mission. Now, over to Bjorn Thaler, our CFO. Bjorn?