Omada Health FY Conference Summary Company Overview - **Company**: Omada Health (NasdaqGS:OMDA) - **Industry**: Digital Health and Chronic Disease Management - **Mission**: To bend the curve of disease and improve care for chronic disease patients, particularly those with obesity, diabetes, and other related conditions [3][4] Key Highlights Financial Performance - **Revenue**: $257 million for FY 2025, representing a **52% year-over-year growth** [6][26] - **Members Supported**: 886,000 active members [7][26] - **Adjusted Gross Margin**: Upper 60s% for LTM Q3 2025, improved from the 50s% in 2022 [26] - **Adjusted EBITDA Margin**: -2.4% for LTM Q3 2025, improved from nearly -70% in 2022, with the first positive adjusted EBITDA quarter of $2.4 million in Q3 2025 [27] Market Position and Strategy - **Target Market**: Over 20 million Americans covered by Omada's programs through 2,000+ customers, including self-insured employers and health plans [5][18] - **Expansion**: Initially focused on prediabetes and obesity, now expanded to diabetes, hypertension, and musculoskeletal (MSK) care [6][9] - **Growth Drivers**: - Multi-product offerings, including the new GLP-1 Care Track [21] - Customer-driven expansion based on demand for comprehensive care solutions [9][19] Product and Service Offerings - **Care Model**: Combines technology and personalized care to support patients between doctor visits [5][10] - **GLP-1 Care Track**: Launched to provide behavioral support alongside GLP-1 medications, addressing concerns about medication adherence and effectiveness [21][22] - **Engagement Metrics**: Over 55% of members remain engaged after 12 months, and 50% after two years [14][15] Clinical and Economic Outcomes - **Clinical Evidence**: 30 peer-reviewed publications demonstrating the effectiveness of Omada's programs [15][16] - **Economic Value**: Expected ROI of 3-6x in musculoskeletal care, with gross healthcare savings of $1,000-$1,500 per member [16][26] Future Outlook - **Investment Focus for 2026**: Emphasis on AI initiatives and enhancing prescribing capabilities to drive long-term growth and margin expansion [41][42] - **Market Trends**: Increased focus on chronic disease management from government and employers, with potential opportunities in Medicare Advantage [54][56] - **Customer Demand**: Growing interest in combining prescribing with behavioral management for chronic conditions [43][44] Additional Insights - **Customer Relationships**: Strong demand for multi-product solutions, with 75% of new clients opting for more than one condition [52] - **Regulatory Environment**: Positive dialogue with government regarding chronic disease management, indicating potential for future partnerships [54][56] - **Technological Integration**: Use of AI to enhance member experience and operational efficiency, with features like nutritional intelligence agents [38][39] This summary encapsulates the key points from Omada Health's FY conference, highlighting the company's growth, strategic direction, and the evolving landscape of chronic disease management.

Omada Health FY Conference Summary Company Overview - **Company**: Omada Health (NasdaqGS:OMDA) - **Industry**: Health Care Services and Technology - **Recent Event**: IPO over the summer of 2025, indicating strong market interest and performance [2][3][5] Core Business Model - Omada Health operates as a "between-visit care provider," focusing on chronic disease management [5][9] - The business model involves charging self-insured employers, fully insured plans, and integrated systems a monthly membership fee for comprehensive services [9][10] - The mission is to improve health outcomes and reduce costs through persistent longitudinal care [5][9] New Service Offerings - Introduction of the **GLP-1 Care Track** aimed at supporting weight loss for members on therapy, showing a 28% increase in weight loss outcomes [18][19] - The service is designed to help members optimize medication use and reduce waste, addressing employer concerns about medication costs and effectiveness [19][20] Financial Insights - The monthly fee structure will increase if clients opt for the prescribing capability, which is expected to be accretive to revenue and margins [24][25] - Long-term targets include achieving over 20% operating margins while maintaining growth [31] Market Dynamics - Anticipated that the GLP-1 prescribing care track will contribute to the P&L primarily in 2027, with some potential deployments in 2026 [37] - The selling season for 2026 is characterized by strong interest from employers, with a mix of those willing to cover medications and those unable to afford them [39][42] AI Integration - Omada is leveraging AI technologies to enhance member engagement and operational efficiency, with tools like Omada Spark and Meal Map [49][50] - AI is seen as a means to improve care team efficiency and increase revenue per user (ARPU) while maintaining quality of care [53][54] Strategic Partnerships - Collaboration with telehealth partners for medication prescriptions to streamline operations and enhance member experience [32][36] - Positive feedback from channel partners like CVS, indicating a gradual build-up of trust and client acquisition [47] Future Outlook - Omada aims to maximize the benefits of new medications and technologies through integrated care solutions, positioning itself as a leader in the health tech space [57] - The company is focused on product innovation and expanding its service offerings to meet diverse employer needs [57][58]

Financial Data and Key Metrics Changes - Total members increased by 53% year over year to 831,000, with revenue growing by 49% year over year to $68 million [4][22] - GAAP gross margin reached 66%, while non-GAAP gross margin was at 68%, both showing significant improvement from the previous year [4][23] - The net loss was reduced to $3 million compared to $9 million in Q3 2024, marking a notable improvement in financial performance [4][24] - For the first time, the company achieved a positive adjusted EBITDA of $2 million, compared to a loss of $5 million in Q3 2024 [4][24] Business Line Data and Key Metrics Changes - The GLP-1 CareTrack program has been a significant driver of growth, reflecting strong demand and multi-condition adoption [11][22] - The company reported that 75% of new customers opted for multiple Omada programs, indicating the appeal of its integrated multi-condition platform [12] Market Data and Key Metrics Changes - The company has seen healthy activity in the current selling season, with early sales traction through a large new channel partner, representing an estimated 180,000 individuals [11] - The demand for GLP-1 offerings has been a key factor in the company's growth, with significant interest from employers and health plans [6][22] Company Strategy and Development Direction - The company plans to invest in GLP-1 offerings and AI technologies, aiming to enhance its solutions and widen its competitive moat [9][25] - The strategic focus is on delivering integrated care that combines clinical services with behavioral support, addressing the complexities of medication management [6][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the potential for growth in 2026 and beyond, driven by innovations in GLP-1 therapies and AI integration [9][10] - The company aims to achieve sustained profitability while continuing to invest in key areas that can enhance its service offerings [25] Other Important Information - The company published its 30th peer-reviewed manuscript, demonstrating the effectiveness of its programs in reducing medical costs and improving health outcomes [18][19] - The company ended Q3 with cash and cash equivalents of $199 million, down from $223 million in Q2 2025, primarily due to debt repayment [25] Q&A Session Summary Question: Can you discuss the new GLP-1 prescribing initiative? - Management highlighted that the new prescribing capability will be integrated within the Omada Care program, allowing members to fulfill prescriptions at their chosen pharmacy [30][31] Question: What investments are needed to launch this new offering? - Management indicated that investments will be required across engineering, product, sales, and marketing to support the new prescribing functionality [39] Question: How is the selling season progressing? - Management noted that they are seeing strong multi-product penetration and healthy activity in the selling season, with double-digit volume deal growth year over year [40] Question: How does GLP-1 drive growth in the overall portfolio? - Management stated that while GLP-1 CareTrack contributes to growth, the majority of new members still come from non-GLP-1 offerings, reflecting a successful multi-product sales strategy [76]

Financial Data and Key Metrics Changes - Total members increased by 52% year over year to 752,000 [4][17] - Revenue rose by 49% year over year to $61 million [5][34] - GAAP gross margin improved to 66% from 60% year over year, while non-GAAP gross margin reached 68% [5][35] - GAAP net loss narrowed to $5 million compared to $11 million in Q2 2024 [5][39] - Adjusted EBITDA loss was $200,000, significantly improved from a $7 million loss in Q2 2024 [5][39] Business Line Data and Key Metrics Changes - Member growth was driven by strong sales of GLP-1 offerings and multi-condition adoption [17][34] - The GLP-1 CareTrack program showed significant growth, contributing to overall member increases [53][54] Market Data and Key Metrics Changes - The total addressable market is estimated to be over $135 billion, with only 14% penetration in self-insured lives and 1% in Medicare Advantage [13][22] - Existing health plan partners cover approximately 156 million lives, representing a significant growth opportunity [22][23] Company Strategy and Development Direction - The company focuses on a multi-condition platform rather than point solutions, which has become a key differentiator [20][31] - Innovation is a strategic pillar, with recent launches like Omada Spark, an AI agent for member support [24][28] - The company aims to leverage AI to enhance member engagement and operational efficiency [49][50] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing momentum and the potential for growth in the GLP-1 landscape [66][88] - The company is focused on balancing growth and profitability, with strategic investments planned for the second half of the year [66][67] Other Important Information - The company ended Q2 with cash and equivalents of $223 million, a significant increase from $59 million in Q1 2025 [40] - Total debt was $31 million, which was paid off after the quarter [41] Q&A Session Summary Question: How is technology being leveraged to scale the platform? - Management highlighted the integration of AI technologies to enhance member experience and care team efficiency, with positive early data on member engagement [44][48] Question: What is the current status of the GLP-1 CareTrack program? - The program is experiencing significant growth, although it still represents a minority of total membership [53][54] Question: What is driving member growth? - Growth is attributed to successful upselling, improved outreach productivity, and the effectiveness of multi-channel marketing [60][62] Question: How does the company balance growth and profitability? - The company plans to make targeted investments while maintaining a focus on profitability, especially in the GLP-1 and AI sectors [66][67] Question: What is the competitive landscape like? - The company sees strong engagement and clinical outcomes as key differentiators in a competitive market, with a focus on proactive care and clinical evidence [75][76]