Omada Health Q2 Results: 49% Revenue Growth, Narrowing Losses Despite Wider Adjusted EBITDA Forecast

In a post-IPO first, health tech company Omada Health unveiled its Q2 results, demonstrating impressive growth and financial performance.

Key highlights from the quarter include:

1. A 49% increase in revenue compared to Q2 2020, reaching $41.21 million.
2. A net loss of $5.31 million or 24 cents per share, significantly lower than the $10.69 million or $1.40 per share loss reported during the same period last year.

CEO Sean Duffy expressed optimism in a statement, attributing this performance to Omada’s ability to capitalize on favorable trends in cardiometabolic care, successful commercialization of its GLP-1 Care Track, and leveraging advancements in artificial intelligence for the benefit of members.

For the full year, Omada anticipates revenue between $235 million to $241 million, surpassing analyst expectations of $222 million. The company also forecasts an adjusted EBITDA loss ranging from $9 million to $5 million, contrasting with analyst predictions of a wider loss of $20.2 million.

Omada, founded in 2012 and listed on Nasdaq since June, offers virtual care programs for patients managing chronic conditions such as prediabetes, diabetes, and hypertension. The company’s approach is described as a “between-visit care model” that integrates seamlessly within the broader healthcare ecosystem.

The stock opened at $23 upon its debut on Nasdaq in June, closing at $19.46 at market close on Thursday. As of Q2 end, Omada reported a total membership base of 752,000—a 52% year-over-year increase.

Omada will delve deeper into these results during its scheduled investor call at 4:30 p.m. ET.