Omada increases income, membership in the beginning of public profits

Diving brief:

• Omada Health beat Wall Street’s expectations in terms of gains and income in the public start of the digital chronic conditions management company on Thursday.
• The company declared a turnover of $ 61.4 million in the second quarter, increasing by 49% from one year to the next. Omada displayed a net loss of $ 5.3 million during the period, against $ 10.7 million in the second quarter in 2024.
• The main drivers of income and members’ growth in the growth of customers, including several chronic conditions programs as well as a strong adoption of GLP-1 offers and an improvement in marketing efficiency, said CFO Steve Cook during a call for results on Thursday.

Diving insight:

Omada struck public procurement in early June. The company, founded in 2011, offers digital management programs for conditions such as diabetes, obesity and hypertension. Care teams also work with patients to build treatment plans and equip users with connected devices such as blood pressure or digital scales.

The public debut of the company is one of the first two recent public offers in digital health, which, according to experts, serve as a positive signal for the sector market market, which has slowed down in recent years. Hinge Health, a digital musculoskeletal care company, completed its IPO in May and also published its first public gains last week.

Omada maintains that one of the business forces is its range of chronic conditions for conditions management – attracting tired customers to manage several points solutions.

“They see the value of having a single, reliable and qualified partner, because it simplifies contracts, account management, implementation, awareness of members and, above all, members’ experience,” said Wei-li Shao, president of the company, when calling profits. “It helped us gain new cases and extend relationships with existing customers.”

The company had 752,000 members in the second quarter, up 52% from one year to the next. And Omada has managed to increase the number of customers who offer several programs, said Shao.

At the end of 2024, around 31% of the company’s existing customers had several installed products, compared to 26% in 2024, he added.

A growth engine was Omada’s GLP-1 activity, which is already working with the main manager of Pharmacy CVS Caremark and the CIGNA ENCirclex GLP-1 program.

Drugs on demand and effective weight loss, called peptide 1 agonists of the glucagon type, can be a challenge for employers to be covered, taking into account their high prices.

Omada maintains that his companion program for GLP-1 helps ensure that patients continue to take medication and maintain weight loss. He provides the support of a care team to help registrants with side effects and nutritional advice as well as to manage concerns for patients who decide to stop taking medication.

However, a minority of the new members of Omada join the GLP-1 care track, as most of the growths come from the basic cardiometabolic offers of the company, the managers said.

But GLP-1 members could also be interested in other products from the company. In addition, some employers who cannot afford to include costly weight loss drugs as part of their benefits of benefits could guide workers to Omada, CEO Sean Duffy said.

“These HR leaders receive emails from their employees by saying:” How is GLP-1 are not on the design of our advantages? ” And it’s a good thing for them to be able to say: “Listen, at this stage, we cannot afford GLP-1, but we would like you to meet Omada,” he said. “In many ways, GLP-1 has become a rear wind for wider commercial writing.”

For this year, Omada plans to revenue $ 235 million to $ 241 million. The company expects the profits adjusted before interest, taxes, damping and damping is a loss between $ 9 and 5 million.