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Earnings Results: One Medical loses double the money that was expected, stock drops

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One Medical’s parent company reported losing more than double the money expected in the first quarter of the year, and shares dropped in late trading Wednesday.

1Life Healthcare Inc.’s
ONEM,
-1.19%

chain of medical clinics reported a first-quarter loss of $39.3 million, or 29 cents a share, worse than losses of $33.8 million a year ago. Revenue increased to $121.4 million from $78.8 million in the year-ago period. Analysts on average expected a loss of 14 cents a share on sales of $116.2 million, according to FactSet.

Shares fell 8.4% in after-hours trading following the release of the results. 1Life stock hit a peak in mid-February but has struggled since, falling 34.7% in the past three months, but is still up 40.6% in the past year. In comparison, the S&P 500 index
SPX,
-2.14%

has gained 5.5% in the past three months and 44.7% in the past year.

Not long after that mid-February stock peak, One Medical faced accusations of providing COVID-19 vaccines to ineligible patients across multiple states, which the chief executive called “gross mischaracterizations” in the last earnings call.

One Medical offers primary-care clinics and online medical services for flat annual fees, and targets largely urban areas and working-age professionals. It has signed up large corporate clients, including Alphabet Inc.’s
GOOG,
-3.02%

GOOGL,
-3.08%

Google, an investor in the business that has accounted for 10% of One Medical’s revenue in the past and has One Medical clinics at some of its offices.

CEO Amir Dan Rubin did not provide any potential reasons for the miss on the bottom line in Wednesday’s announcement.

“In Q1 we continued demonstrating significant impacts by delivering record membership additions, showcasing reductions in total cost of care, and developing new markets and health network partnerships,” he said in a statement. “Today, we are pleased to announce new plans to enter Dallas-Fort Worth, Texas with Baylor Scott & White as a health network partner.”

1Life maintained its forecast for the full year for sales of $465 million to $485 million, and guided for second-quarter sales of $111 million to $118 million. Analysts on average were projecting second-quarter sales of $117.5 million and annual sales of $482.4 million heading into the report, according to FactSet.

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