Oscar Health saw major growth in enrollment and revenue in the first quarter, but reported a net loss topping $77 million and plans to exit the Arkansas and Colorado insurance markets after this year, according to the company's earnings report published May 10.
During its earnings call with investors, the New York City-based insurtech company said its biggest insurance priority this year is profitability in 2023.
"Oscar maintained strong momentum through the first quarter, reflecting our ongoing ability to leverage our technology to drive top line growth for the business and improve efficiencies as we scale," CEO and co-founder Mario Schlosser said. "As we continue to execute against our three strategic priorities for the year — position the company for near-term profitability, continue to grow in the U.S. insurance market and accelerate our +Oscar product offering — we are well-positioned to meet the needs of our members, clients and provider partners."
Four things to know:
- Total revenue in the first quarter was $972.8 million, rising from $369.4 million in 2021, or a 163 percent increase.
- Total operating expenses in 2022 were $1.04 billion, increasing from $433 million year over year.
- Net losses for the company were over $77 million in 2022, decreasing from nearly $89 million in the first quarter of 2021.
- Membership nearly doubled between the fourth quarter of 2021 and the first quarter of 2022, growing from 542,220 in 2021 to 1,073,595 million in 2022. Membership growth was driven largely by the expansion of the company's dual network strategy and small employer plans.