Oscar Health, Inc. (NYSE: OSCR), a leading healthcare technology company, reported its financial results for the third quarter of 2024 on November 7, 2024. The company's stock plummeted by 9.26% in premarket trading, despite delivering solid revenue growth, as investors reacted negatively to a wider-than-expected net loss for the quarter.

For the three months ended September 30, 2024, Oscar Health reported total revenue of $2.42 billion, surpassing analysts' consensus estimate of $2.34 billion. This represented a 68.3% increase compared to the same period last year, driven primarily by higher membership and rate increases.

However, the company reported a net loss attributable to common shareholders of $54.6 million, or $0.22 per diluted share, missing the consensus estimate of a $0.19 loss per share. Oscar Health attributed the larger-than-expected loss to higher medical costs, primarily driven by higher Special Enrollment Period membership resulting in higher risk adjustment transfers, as well as higher COVID-related costs.

Mark Bertolini, CEO of Oscar Health, commented on the results, stating, "Oscar reported positive third-quarter results with strong revenue growth and improved financial performance. Our technology continues to enhance our growth and positions us to efficiently scale the business. We expect to deliver positive Adjusted EBITDA and net income profitability this year, setting a solid foundation to achieve our long-term targets."

Oscar Health's Medical Loss Ratio (MLR) increased by 80 basis points year-over-year to 84.6%, due to modestly higher medical costs. However, the company's SG&A Expense Ratio improved by 360 basis points year-over-year to 19.0%, driven by improved fixed cost leverage and variable cost efficiencies.

The company is updating its full-year 2024 outlook, projecting revenue in the range of $9.2 billion to $9.3 billion, $200 million above the prior range, and a lower SG&A Expense Ratio in the range of 19.4% to 19.6%. Additionally, Oscar Health now expects its Medical Loss Ratio to be towards the high end of the prior range of 80.5% to 81.5%, and Adjusted EBITDA to be towards the high end of the prior range of $160 million to $210 million. The company also expects to achieve net income profitability for the full year.