NYSE$OSCR

Oscar Health Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Announced results for the third quarter of 2022, demonstrating significant membership growth and improvements in key financial metrics.

Oscar Health reported an 81% year-over-year increase in membership, reaching 1,075,445 members as of September 30, 2022. The company's premiums earned increased by 116% year-over-year, and the Medical Loss Ratio (MLR) improved by 980 bps to 89.9%. Oscar Health is now targeting Total Company profitability in 2024, a year earlier than previously expected.

  • Membership increased by 81% year-over-year, reaching 1,075,445 members as of September 30, 2022.
  • Premiums earned increased by 116% year-over-year to $954 million.
  • Medical Loss Ratio (MLR) improved by 980 bps year-over-year to 89.9%.
  • The company is now targeting Total Company profitability in 2024, a year earlier than previously expected.

Headline financials

Total Revenue

$978M

Previous: $444M+120.4%
EPS (adj)

-$0.91

Previous: -$1.02+10.8%
Medical loss ratio

89.9%

Previous: 99.7%-9.8%
Free Cash Flow

-$193M

Previous: -$213M+9.3%
Net Income

-$193M

Previous: -$213M+9.3%
Operating Income

-$192M

Previous: -$213M+9.7%
Gross Profit

$132M

Previous: -$4.92M+2787.5%
Cash & Equivalents

$2.11B

Previous: $1.08B+96.2%
Total Assets

$4.31B

Previous: $3.17B+35.9%
Stock-Based Comp

$28.6M

Previous: $20.6M+38.4%

Revenue & EPS history

Oscar Health · Revenue · Quarterly

$978M

Q3 2022+120.4%vs Q3 2021
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Forward guidance

Oscar Health is updating its FY22 outlook to reflect the impact of higher membership. The Company now expects Direct and Assumed Policy Premiums will be $6.7 billion to $6.9 billion and Adjusted EBITDA loss will be modestly above the ($480 million) high-end of the prior range of ($380 million) to ($480 million).

Tailwinds

  • Direct and Assumed Policy premiums (in thousands) of $6,700,000 - $6,900,000
  • Medical Loss Ratio near the midpoint of the 84% - 86% range
  • InsuranceCo Administrative Expense Ratio at the high-end of the 19.5% - 20.5% range
  • InsuranceCo Combined Ratio towards the high-end of the 104% - 106% range
  • Adjusted Administrative Expense Ratio near the midpoint of the 24% - 26% range

Headwinds

  • Adjusted EBITDA(1) loss (in thousands) modestly above the ($480,000) high-end of the ($480,000) - ($380,000) range
  • The impact of COVID-19 on global markets, economic conditions, the healthcare industry and our results of operations, and the response by governments and other third parties
  • Our ability to retain and expand our member base
  • Our ability to execute our growth strategy and scale our operations
  • Our ability to meet increased capital requirements as a result of expanding membership

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

+3.7%

Avg return

Earnings day

+5.6%

Avg return

5 days after

+7.5%

Avg return

30 days after

64%

16 / 25 earnings

Positive

+30.0%

Q1 2025

Best reaction

-23.9%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.7%+22.6%+36.6%
Q4 2025+1.7%+6.0%+2.7%
Q3 2025-2.8%-12.8%-1.5%
Q1 2025+30.0%+28.7%+18.0%
Q4 2024+3.1%-3.7%+4.5%
Q3 2024-12.9%-12.8%+0.4%
Q2 2024+7.2%+4.4%-1.4%
Q1 2024+9.3%+14.1%+2.8%
Q4 2023+22.7%+27.5%+7.7%
Q3 2023+23.5%+24.5%+42.0%
Q2 2023+8.6%+1.9%-10.5%
Q1 2023-8.8%-6.6%+17.8%
Q4 2022+21.0%+36.2%-3.9%
Q3 2022-23.9%-4.5%-11.3%
Q2 2022+19.9%+21.1%-3.7%
Q1 2022-8.9%-2.0%-25.0%
Q4 2019+6.3%+2.5%+39.1%
Q4 2021+2.4%+15.6%+21.9%
Q3 2020-2.4%-6.3%-12.7%
Q3 2021-23.3%-25.2%-33.0%
Q2 2020-16.4%-11.8%+19.4%
Q2 2021-0.9%-12.0%+17.9%
Q4 2020+15.2%+14.5%+23.1%
Q1 2020+15.2%+14.5%+23.1%
Q1 2021+3.6%+4.2%+14.0%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro