1Life Healthcare, Inc.

Total net revenue for Q1 2022 was $254.1 million, up 109% year over year and $4 million above the high end of guidance. Commercial revenue was $126.7 million, up 4% year over year, with membership revenue of $24.2 million up 20% year over year and net fee-for-service/partnership revenue of $102.4 million up 3% year over year. Medicare revenue was $127.4 million, including $124.6 million in capitated revenue, up 29% sequentially versus Q4 2021, and $2.8 million in fee-for-service and other Medicare revenue. Medical claims expense was $105 million, equal to an 84% ratio, down 10 percentage points sequentially; cost of care was $101.4 million, up 45% year over year; care margin was $47.8 million, or 19% of revenue; SG&A was $119.5 million, or 47% of revenue; and adjusted EBITDA was negative $28.9 million. The company ended the quarter with $428.5 million in cash and marketable securities, down $73.4 million from year-end 2021, including $55.1 million used in operating activities and $19.2 million of capital expenditures. For full-year 2022, guidance is now 790,000-810,000 consumer and enterprise members, 41,000-43,000 at-risk members, $1.055 billion-$1.095 billion in total net revenue, $535 million-$555 million in commercial revenue, $520 million-$540 million in Medicare revenue, $200 million-$220 million in care margin, and adjusted EBITDA of negative $130 million to negative $115 million. For Q2 2022, guidance is 779,000-790,000 total members, $255 million-$270 million in revenue, $125 million-$135 million in commercial revenue, $130 million-$135 million in Medicare revenue, $45 million-$55 million in care margin, and adjusted EBITDA of negative $40 million to negative $30 million.

Amir Dan Rubin emphasized that One Medical is seeing momentum across members, employers, providers, and health-network partners, framing the quarter as strong execution against its strategic plan. He highlighted normalization in commercial utilization, improving senior-health claims performance, and expansion of hybrid programs like Healthy Heart, Healthy Mind, and One Medical At-Home. His tone was upbeat and confident, with repeated comments that the company is better positioned to scale across more markets and more stages of life.

Bjorn Thaler focused on the financial outperformance and the higher full-year outlook. He pointed to 28% member growth, 109% revenue growth, the 84% medical claims expense ratio, 19% care margin, and adjusted EBITDA of negative $28.9 million, while also noting $428.5 million in cash and marketable securities. On capital allocation, he said management can moderate cash burn through office openings and by not adding incremental direct-contracting members during 2022, and he stressed improved operating leverage and margin trends.

Analysts pressed on whether commercial utilization is normalizing, what is happening with telehealth, and how much of the revenue upside is tied to vaccine-verification members. Management said commercial use has shifted back toward a more normal in-person primary care pattern, with digital visits still important but less dominant. On the enterprise side, they said vaccine-verification members are largely treated as upside rather than a base case for retention, and they framed the stronger pipeline as driven by larger multi-market employer conversations and the differentiated mix of primary care, behavioral health, and chronic-care programs.