On November 7, 2024, Oscar Health Inc (OSCR, Financial) released its 8-K filing detailing its financial performance for the third quarter ended September 30, 2024. Oscar Health Inc, a health insurance company, offers various insurance plans and services, including virtual care and Medicare Advantage plans.
Performance Overview
Oscar Health Inc (OSCR, Financial) reported a total revenue of $2.4 billion for Q3 2024, marking a significant 68% increase year-over-year, surpassing the analyst estimate of $2,339.22 million. This growth was primarily driven by higher membership and rate increases. However, the company reported a net loss attributable to Oscar of $54.6 million, or $(0.22) per share, which fell short of the analyst estimate of $(0.19) per share. Despite the loss, this represents a $10.8 million improvement compared to the same period last year.
Financial Achievements and Challenges
The company's Medical Loss Ratio (MLR) increased by 80 basis points year-over-year to 84.6%, attributed to higher medical costs, including those related to COVID-19. The SG&A Expense Ratio improved significantly by 360 basis points to 19.0%, reflecting better cost management. These metrics are crucial as they indicate the company's efficiency in managing healthcare costs and administrative expenses, which are vital for profitability in the healthcare plans industry.
Key Financial Metrics
Oscar Health Inc (OSCR, Financial) reported an Adjusted EBITDA loss of $11.6 million, an improvement of $8.7 million year-over-year. The company also updated its full-year 2024 outlook, projecting revenue between $9.2 billion and $9.3 billion, up from the previous range of $9.0 billion to $9.1 billion. The company expects to achieve net income profitability this year, a significant milestone for its long-term financial health.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Revenue | $2,423,482 | $1,439,991 |
| Medical Loss Ratio | 84.6% | 83.8% |
| SG&A Expense Ratio | 19.0% | 22.6% |
| Adjusted EBITDA | $(11,563) | $(20,285) |
Analysis and Outlook
Oscar Health Inc (OSCR, Financial) continues to demonstrate strong revenue growth, driven by an increase in membership and strategic rate adjustments. The improvement in SG&A Expense Ratio indicates effective cost management, which is crucial for the company's path to profitability. However, the increase in the Medical Loss Ratio highlights ongoing challenges in managing medical costs, which could impact future profitability if not addressed.
Oscar reported positive third quarter results with strong revenue growth and improved financial performance," said Mark Bertolini, CEO of Oscar Health. "Our technology continues to enhance our growth and positions us to efficiently scale the business."
Oscar Health Inc (OSCR, Financial) remains focused on leveraging its technology platform to drive growth and efficiency. The company's updated financial outlook and commitment to achieving profitability underscore its strategic initiatives to strengthen its market position in the healthcare industry.
Explore the complete 8-K earnings release (here) from Oscar Health Inc for further details.
