Omada Health beats on revenue in first earnings report since IPO

Omada Health reported quarterly results for the first time since its initial public offering in June.

Here’s how the company did based on average analysts’ estimates compiled by LSEG:

• Loss per share: 24 cents
• Revenue: $61 million vs. $55.2 million expected

The virtual care company’s revenue increased 49% in its second quarter from $41.21 million a year earlier. The company reported a net loss of $5.31 million, or a loss of 24 cents per share, compared to a net loss of $10.69 million, or a loss of $1.40 per share, during the same period last year.

“It’s a strategically consistent quarter for Omada, happening at an accelerated pace, which is nice,” Omada CEO Sean Duffy said in an interview with CNBC. “At the highest levels, there’s just a huge spotlight on metabolic care right now.”

For its full year, Omada expects to report revenue between $235 million and $241 million, while analysts were expecting $222 million. The company said it expects to report an adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, loss of $9 million to $5 million for the full year, while analysts polled by FactSet expected a wider loss of $20.2 million.

Omada, founded in 2011, offers virtual care programs to support patients with chronic conditions such as prediabetes, diabetes and hypertension. The company describes its approach as a “between-visit care model” that is complementary to the broader health-care ecosystem.

The stock opened at $23 in its debut on the Nasdaq in June. At market close on Thursday, shares closed at $19.46.

Omada said it finished its second quarter with 752,000 total members, up 52% year over year.

“The start gun of our next chapter just clicked, and we’re running hard,” Duffy said. “It’s been pretty fun.”

CORRECTION: This article was updated to state that Omada Health was founded in 2011. A previous version incorrectly stated the year.