Multinational digital health company Babylon said its third-quarter revenue rose to $288.9 million, a 3.9-fold increase from a year earlier, thanks to an increase in its value-based care business, primarily driven by growth in Medicare membership. .
Babylon reported a loss of $89.9 million for the period, compared to a loss of $66 million in Q3 2021. Adjusted eearnings before interest, taxes, depreciation and amortization (EBITDA) amounted to a loss of $54.3 million, compared to a loss of $47.5 million in the same period last year.
In October, Babylon announced plans to sell its independent physician association business, Meritage Medical Network, in California to focus on digital technology contracts. The company said the proceeds from the sale will be sufficient to fund the company through profitability.
The earnings report comes a day after the company announced it would proceed with a 1-for-25 reverse stock split of its Class A common stock effective December 15. Shares will trade on a split-adjusted basis when the New York Stock Exchange (NYSE) opens on December 16, with the par value of the shares changed to $0.0001 per share.
Reverse splitting has a purpose raised Babylon’s stock price to prevent it from being delisted. Following the split, the issued and outstanding Class A shares will be reduced from 620 million to approximately 24.8 million shares.
Based in Minneapolis Bright Health Group reported $1.6 billion in revenue for the third quarter of 2022, up 51.3% from the year-ago quarter, but with a GAAP net loss of $259.4 million.
The company’s medical expense ratio, a metric insurers use to measure medical expenses as a percentage of premium income, was 90.6%, an improvement from a year earlier of 103% in Q3 2021.
Bright Health recently announced that it will no longer offer individual and family health plans through its insurtech Bright HealthCare next year and that it is reducing Medicare Advantage products outside of California.
A therapy company based on video games Akili, maker of EndeavorRx, an FDA-cleared video game treatment for children with ADHD, reported third-quarter EndeavorRx revenue of $82,000, compared to $155,000 in Q3 2021.
The Boston and California-based company began trading on Nasdaq in August after completing its merger with special-purpose acquisition firm Social Capital Suvretta Holdings Corp. The deal brought in $164 million before paying transaction costs and advisory fees.
The lack of revenue from EndeavorRx was expected, as the company noted in August that the proceeds from its merger would support at least two years of operations without any revenue from EndeavorRx.
In its third quarter earnings, Akili reported holding $156.4 million in cash, short-term investments and cash equivalents, compared with $45.6 million at the end of the second quarter, which the company says will be enough to fund its operations through mid-2024 .
The ADHD-focused therapeutics company reported GAAP net income of $53.2 million, compared to a net loss of $22.5 million in the second quarter of 2022.
“We hit two major milestones this quarter on our journey to bring digital treatments to mainstream medicine – we started trading on the Nasdaq and raised funds to support our first product launch and refine our process, and moved from pre-launch to launch EndeavorRx,” Eddie Martucci, CEO of Akili, said in a statement. “With a solid foundation and an experienced team, Akili is well-positioned to advance our vision of EndeavorRx becoming part of routine medical care for children with ADHD.”
A New York-based technology-based health insurance company Oscar Health announced its third quarter financial results, reporting total revenue of $978.4 million with a net loss of $193.5 million.
Oscar Hello also announced plans to exit the Medicare Advantage market to focus on Affordable Care Act plans during its third-quarter earnings call. Company CEO and founder Mario Schlosser said the provider will eventually return to the MA market, but the way to do so is through partnerships.
Schlosser also noted that the company is looking at how to sell +Oscar, its technology stack platform, in a more efficient and effective way with third parties.
“Looking ahead to 2023, we believe we are well positioned to achieve our profitability target for InsureCo and are focused on driving continued margin expansion across the business,” said Mario Schlosser, CEO and co-founder of Oscar. in a statement. “With the positive leverage we see in our business, we are now aiming for total company profitability in 2024, a year earlier than previously expected.”