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Sep 30, 2024
Oscar Health Q3 2024 Earnings Report
Oscar Health reported strong revenue growth and improved financial performance.
Key Takeaways
Oscar Health announced positive third quarter results, demonstrating strong revenue growth and improved financial performance. The company is updating its full year 2024 outlook to reflect year-to-date performance and expects to deliver positive adjusted EBITDA and net income profitability this year.
Total revenue increased by 68% year-over-year to $2.4 billion, driven by higher membership and rate increases.
Medical Loss Ratio increased 80 bps year-over-year to 84.6%, due to modestly higher medical costs.
SG&A Expense Ratio improved 360 bps year-over-year to 19.0%, driven by improved fixed cost leverage and variable cost efficiencies.
Net loss attributable to Oscar improved by $10.8 million year-over-year to $54.6 million.
Forward Guidance
Oscar is updating its full year 2024 outlook to reflect year-to-date performance. The Company projects Revenue to be in the $9.2 billion to $9.3 billion range, $200 million above the prior range of $9.0 billion to $9.1 billion, and a lower SG&A Expense Ratio in the range of 19.4% to 19.6%. Additionally, the Company now projects Medical Loss Ratio to be towards the high-end of the prior range of 80.5% to 81.5%, and Adjusted EBITDA to be towards the high-end of the prior range of $160 million to $210 million. The Company also expects to achieve net income profitability this year.
Positive Outlook
- Revenue to be in the $9.2 billion to $9.3 billion range, $200 million above the prior range.
- SG&A Expense Ratio in the range of 19.4% to 19.6%.
- Medical Loss Ratio to be towards the high-end of the prior range of 80.5% to 81.5%.
- Adjusted EBITDA to be towards the high-end of the prior range of $160 million to $210 million.
- Company expects to achieve net income profitability this year.
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