NEW YORK - Oscar Health, Inc. (NYSE:OSCR) reported better-than-expected second quarter earnings and raised its full-year guidance, sending shares up 4% in after-hours trading.
The healthcare technology company posted adjusted earnings per share of $0.20 for the quarter ended June 30, 2024, beating analyst estimates of $0.16. Revenue came in at $2.22 billion, slightly above the consensus forecast of $2.21 billion and up 46% YoY.
Oscar's Medical Loss Ratio improved 90 basis points YoY to 79.0%, while its SG&A Expense Ratio decreased 260 basis points to 19.6%. The company reported net income of $56.2 million, a $71.7 million improvement from the same quarter last year.
"Oscar reported strong second quarter results, closing out the best six months in the company's history," said CEO Mark Bertolini. "We continued to report robust revenue growth, improved operating margin, and strong bottom line performance."
Based on its first-half outperformance, Oscar raised its full-year 2024 outlook. The company now projects revenue between $9.0 billion and $9.1 billion, up from its previous forecast of $8.3 billion to $8.4 billion and above analyst expectations of $8.6 billion. Oscar also increased its adjusted EBITDA guidance to $160 million to $210 million, up from $125 million to $175 million previously.
The company expects its full-year SG&A Expense Ratio to be lower at 19.75% to 20.25%, while projecting a slightly higher Medical Loss Ratio of 80.5% to 81.5%.
Oscar's adjusted EBITDA for the quarter was $104.1 million, a $68.6 million improvement YoY. The company's strong performance and raised outlook suggest it is on track to achieve its target of adjusted EBITDA profitability for the full year.
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